Cameroon faces cancellation of 292 billion cfa francs in bad financing

During a joint portfolio review held in Yaoundé on July 14, 2026, the Cameroonian government and the African Development Bank (BAD) highlighted a pressing financial risk looming over the country. Seven financing operations, previously approved by the pan-African institution, now face potential cancellation. These initiatives, totaling 373.419 million Special Drawing Rights (SDR), or roughly 292 billion Central African CFA francs, remain stalled due to bureaucratic delays rather than resource constraints.

It is important to clarify that these funds have not yet been disbursed, so Cameroon is not at risk of repayment for undisbursed amounts. Instead, these envelopes consist of loans and grants validated by the BAD, but either the formal agreements were not signed within the required timeframe or no payments were initiated despite legal finalization. Six cases fall into the first category, while one pertains to the latter. The total value of financing stuck in administrative limbo reaches 339.419 million SDR, equivalent to nearly 265 billion CFA francs.

Ngoura-Yokadouma road project: a 207 billion cfa francs standoff

The most glaring example of this impasse is the Transboundary Economic Basin Connectivity and Unlocking Program, which includes the development of the Ngoura-Yokadouma road in the East region. This initiative alone accounts for 265.4 million SDR, or about 207 billion CFA francs—over 71% of the total amount at risk. Approved on February 18, 2026, the loan agreement for this project had not been signed by the time of the review.

Five additional projects share a similar fate. The second phase of the Pan-African University Support Project, funded by the African Development Fund (FAD) to the tune of 3.64 million SDR and approved on December 19, 2024, remains unsigned. Other stalled initiatives include the Minkouma hydroelectric development study on the Sanaga River (2.994 million SDR), the CUA-Y2 university city study (2.320 million SDR), and the Lake Chad risk prevention program PROSTABLT (5.095 million SDR).

A strategically significant regional project also hangs in the balance: the transport and trade facilitation initiative, which includes the construction of a bridge over the Ntem River at the border with Equatorial Guinea. Approved on November 29, 2023, this project combines a BAD loan of 39.97 million SDR and an FAD loan of 20 million SDR.

PARZIK2: fifteen months of stalled disbursements

The seventh project reveals a different but equally troubling issue. The second phase of the Kribi Industrial and Port Area Road Development Project, known as PARZIK2, has a signed agreement in place. Yet, despite this formalization, no disbursements have been made in the fifteen months since signing. The allocated envelope of 34 million SDR, or about 26.54 billion CFA francs, now sits at risk. Kribi, a cornerstone of Cameroon’s industrial and port strategy, underscores the urgency of resolving this bottleneck.

Execution cycle twice as slow as benchmarks

Data from the review paints a stark picture. The average time between approval and agreement signing stands at twelve months—four times longer than the BAD’s three-month standard. The average time from agreement signing to entry into force extends to sixteen months, compared to an expected five months. The first disbursement occurs, on average, twenty-one months after approval, whereas the target is twelve months. Nearly two full years can elapse before a single euro is deployed on the ground.

Alamine Ousmane Mey, Minister of Economy, Planning, and Territorial Development, acknowledged the severity of the situation. He pointed to inadequate project preparation, prolonged public procurement processes, weak project management units, and delays in mobilizing counterpart funds as key bottlenecks. These inefficiencies not only inflate costs but also erode the country’s credibility with international lenders.

Since its first operation in Cameroon in November 1972, the BAD has committed 130 loans and grants totaling an estimated 3,345 billion CFA francs. The 2023-2028 program outlines eleven new operations with approvals valued at 833.8 billion CFA francs. Yet, converting these commitments into tangible infrastructure remains the weakest link in the financial cooperation between Yaoundé and the pan-African institution.