Cameroon Greenlights $180 Million China Exim Bank Loan to Expand Fibre-Optic Network
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Cameroon has authorized a CFA108.39 billion (approximately $180 million) loan from the Export-Import Bank of China to fund Phase IV of the country's fibre-optic backbone expansion, according to a presidential decree dated March 6. The loan will finance projects aimed at strengthening national telecommunications capacity and digital connectivity.
The expansion forms part of Cameroon's broader infrastructure investment agenda, which targets enhanced economic activity, public administration services, and private sector development. Officials say the project is expected to bolster the country's telecommunications backbone, supporting both urban and rural connectivity.
Cameroon's public debt reached CFA14.24 trillion (around 45.6% of GDP) at the end of 2024, following a 7.8% increase in government borrowing. The country continues to face high debt distress risk, as flagged by the International Monetary Fund (IMF). In its 2026 Article IV consultation, the IMF projected Cameroon's fiscal deficit at 1.7% of GDP and economic growth at 3.3%, while noting that near-term financing pressures remain elevated, prompting external borrowing.
IMF projections indicate gross government debt could rise to 38.6% of GDP in 2026. The Fund has urged Yaoundé to prioritize concessional financing for infrastructure projects and expand non-oil revenue mobilization to mitigate debt vulnerabilities.
Data from the World Bank shows Cameroon's general government debt stood at 43.4% of GDP by end-2024, with external debt representing 29% of GDP and domestic debt 14.4%. Regional regulations under the Central African Economic and Monetary Community (CEMAC) cap public debt at 70% of GDP, leaving Cameroon with room to finance critical infrastructure within regional limits.
The China Exim Bank loan represents a continuation of Cameroon's strategy to leverage external commercial financing to advance strategic infrastructure, even amid ongoing fiscal constraints.
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