Cameroon’s 2026 Economic Outlook: Growth, Debt Strategy, and Policy Priorities

During the first half of 2026, Cameroon’s economy was marked by two public policy signals that structured the national situation. The Autonomous Sinking Fund (CAA), which mentions them in its monthly public debt outlook at the end of June 2026, recalls “the Budgetary Orientation Debate (DOB), which set the budgetary course for the 2027-2029 three-year period, and the holding of the Monetary Policy Committee of the Bank of Central African States (BEAC).”

In this regard, the DOB has outlined a roadmap structured around four priorities. These are “the conclusion of a new program with the International Monetary Fund (IMF), maintaining public debt on a sustainable trajectory, increased use of public-private partnerships, and continued investment in key infrastructure and productive sectors.”

The macroeconomic framework projects growth of 3.5% in 2026, then 3.7% in 2027, driven primarily by the non-oil sector, which is expected to grow by 4.3% in 2027. On the price front, average twelve-month inflation stood at 2.6% in June 2026, compared to 4.1% a year earlier, thus falling below the EU convergence threshold of 3%. Projections for Cameroon’s economy indicate 3.2% in 2027, before a gradual slowdown to 2.8% in 2029, assuming contained global inflation and successful implementation of import substitution policies.

The financing need in Cameroon remains substantial, however. The 2026 Finance Law maintains an overall requirement of 3,197 billion CFA francs (nearly USD 5.5 billion), representing approximately 8.8% of Gross Domestic Product (GDP), 67% of which is covered by external resources. The rise in international yields now calls for a cautious sequencing of the external component of the borrowing program, while the monetary easing decided by the BEAC strengthens the relative attractiveness of regional debt denominated in CFA francs.

Cameroon is nevertheless continuing its 2026-2028 debt strategy on international markets

Having already raised 474 billion FCFA (approximately USD 815 million) externally, the Cameroonian government plans to secure a 400 billion FCFA (approximately USD 690 million) loan with environmental, social, and governance (ESG) components, with the support of several international financial partners. This operation aims to diversify funding sources, reduce the cost of debt, and broaden access to sustainable financing through guarantee and risk-sharing mechanisms.

In terms of foreign trade, Cameroon could benefit from increased access to the Chinese market, as Beijing has decided to grant duty-free access to several export sectors, particularly agriculture and fisheries. This measure should improve the competitiveness of Cameroonian products, support the diversification of non-oil exports, and increase foreign exchange earnings.

The CAA also indicates that the monetary sphere should experience continued expansion. Indeed, the money supply is expected to grow by an average of 9.8% over 2027-2029, driven by an 8.1% increase in foreign assets and a 12.9% increase in credit to the economy, a sign of dynamism in bank financing that remains to be confirmed in the statistics of the coming quarters.

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(Featured image by Ariel Nathan ADA MBITA via Unsplash)

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First published in Financial Afrik. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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