Cameroun’s floating debt reaches $1.8 billion in Q1 2026

By the end of the first quarter of 2026, Cameroon’s floating debt had ballooned to nearly $1.8 billion, highlighting a persistent structural imbalance between the government’s commitments and actual payments made. This growing stock of arrears encompasses all invoices settled or pending beyond regulatory deadlines, primarily owed to domestic suppliers, service providers, and creditors. In Yaoundé, this figure has reignited discussions about the effectiveness of budget execution and the government’s true financial maneuverability amid tightening external financing conditions.

Floating debt as a budgetary adjustment tool

The concept of floating debt in Cameroon is not new, but its current scale underscores a worsening trend. At $1.8 billion, this figure represents a substantial portion of annual public expenditures, excluding debt servicing and salaries. In practice, the State delays settling some obligations to maintain cash flow balances, effectively shifting the cash-flow burden onto the national private sector. While this approach is not uncommon in the CEMAC region, it functions as a form of forced financing from local suppliers.

Small and medium-sized enterprises (SMEs), which often act as creditors, bear the brunt of these delays. Payment delays cascade down the supply chain, creating difficulties for subcontractors in meeting their own financial obligations and generating banking tensions. Cameroonian banks, exposed through loans to State suppliers, see a corresponding rise in non-performing loans within their portfolios. The Bank of Central African States (BEAC) and the Banking Commission of Central Africa are closely monitoring this growing interconnection between public finances and bank balance sheets.

A warning sign for financial partners

The release of this staggering figure coincides with Cameroon’s ongoing negotiations to extend its program with the International Monetary Fund (IMF) and its regular issuance of public securities on the BEAC market. Floating debt is a key indicator scrutinized by multilateral lenders, alongside official public debt. Its accumulation signals weaknesses in the expenditure chain—from commitment to payment—and fuels criticism regarding budgetary governance.

Previous years have seen debt clearance plans implemented, but results have been inconsistent. Rather than shrinking, the residual stock tends to rebuild each quarter. The World Bank and IMF have long advocated for structural reforms to address this issue, including systematic audits of arrears, stricter controls on off-budget commitments, and modernization of the integrated public finance management system.

Impact on the real economy and public procurement

Beyond macroeconomic implications, floating debt disrupts public procurement. Businesses, wary of payment delays, factor in a risk premium when submitting bids, driving up the cost of public contracts. Some firms opt out of bidding altogether, reducing competition and the quality of services delivered. Instead of stimulating the national productive sector, the situation has the opposite effect.

The construction sector, a major creditor to the State for infrastructure projects, exemplifies this challenge. Delays on road projects, slowdowns in equipment delivery, and a surge in administrative disputes have compounded the indirect costs of outstanding payments. Sectors such as healthcare and education, also affected by unpaid invoices, face disruptions in procurement and service delivery.

The path forward remains uncertain. The Cameroonian government has pledged to bring the level of arrears within thresholds aligned with regional and international commitments. However, the 2026 economic climate—marked by modest growth and under pressure fiscal revenues—complicates this goal. Without deep-rooted reforms to the expenditure chain, floating debt may continue to be a chronic indicator of fiscal fragility for Central Africa’s largest economy within the CEMAC framework.