Cameroon: Moody’s fears further payment delays despite government efforts

Ratings agency Moody’s has expressed concern about Cameroon’s creditworthiness, despite the government’s efforts to clear its debts.

In a review published on February 21st 2025, the agency highlights the budgetary risks associated with fuel price shocks, unbudgeted security spending and the difficulties of public enterprises.

It also fears ‘poor debt and liquidity management’, as well as ‘political risks’ in the run-up to the presidential election.Although Cameroon has mobilised $550 million in 2024 to settle its arrears and is keeping its public debt below 40% of GDP, Moody’s fears further payment delays, which could lead to a downgrade. This perception of high risk, criticised by the African Peer Review Mechanism (APRM), increases the country’s borrowing costs.

This situation highlights the need for Cameroon to strengthen its cash management and maintain investor confidence.

Source: Financial Afrik