A credible and sustainable mobilization
The country intends to increase its external fundraising capacity to 45% of GDP by 2023.
The current indebtedness level, informs the 2021/2023 budgetary programming document which will show 38.6% of GDP in 2020, will be under control at around 45% on average over the 2021-2023 period, i.e. a little more than 11,700 billion CFAF. In detail, this gross financing from the State budget, for the 2021 fiscal year, stands at 1,493.7 billion, down by 15% to 262.8 billion compared to 2020. A decline based on the non-renewal in 2021 of exceptional financial support from technical and financial partners from which the State of Cameroon has benefited as part of the fight against Covid-19, including external debt relief.
In the medium term, the financing resources that the State could expect are estimated at 1,284.1 billion, showing a decrease of 209.5 billion compared to 2021 due to the lack of clarity to date of possible budgetary support from which Cameroon could benefit during this period within the framework of the implementation of a new Economic and Financial Programme being negotiated with the IMF or other sources of financing to be sought.
For the committee, Cameroon’s indebtedness level remains sustainable. For this reason, the indebtedness ratio remains well below the Community threshold which recommends borrowing up to 70% of GDP. The issuance of government securities will be maintained at an annual rate of 450 billion CFA francs between 2021 and 2023 in order to support public action in all areas.
As for debt service, the government plans to inject 3.7 billion CFA francs into the settlement of its debt. In detail, we should pay 1121.4 in 2021; 1226 in 2022 and 1351.7 in 2023. External creditors will be the best served with nearly 2,180 billion CFA francs, the remainder, 1,519.5 billion CFA francs, dedicated to internal creditors.
As a reminder, the National Public Debt Committee ensured the sustainability and viability of the country’s public indebtedness during fiscal year 2019. Thus, as of 31 December 2019, the outstanding public debt and Cameroon’s public guarantee is updated to CFAF 8,650 billion, representing 38.3% of GDP. This portfolio is made up of CFAF 6,671 billion foreign debt and CFAF 1,979 billion of domestic debt.