The Cameroonian government recently launched subscription operations for its 7th bond. Initially planned for an amount of 200 billion FCFA, this envelope has increased to 150 billion FCFA and will be made in four tranches. And these 150 billion to be mobilized through this public call for savings, explains the government, falls within the framework of the financing of development projects included in the State budget for the year 2023. More specifically, the resources collected will be allocated in priority to several sectors.
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Also read: Bond loan: 85 billion FCFA for the financing of road works
In particular, water and energy (20.5 billion), public works (85.5 billion), urban development (15 billion), transport (14 billion) and reconstruction of regions in crisis, namely the North-West, the South-West and the Far North (15 billion). In detail, we know, for example, that with regard to the water and energy sector, the government intends to contribute 1.2 billion FCFA this year to the construction project for the hydroelectric development of Bini to Warak; and 5 billion in the drinking water supply project for the city of Yaoundé and its surroundings.
In the public works sector, the State intends to inject 10 billion FCFA to continue the asphalting works of the Soa-Esse and Awae-Esse roads in the Center region. At the same time, the construction project of the Lolabe-Campo expressway in the South region will benefit from financing of one billion FCFA. In the urban development sector, 5 billion will be granted to the program of 1,675 social housing units; the construction works of the Yaoundé-Nsimalen highway will consume 8 billion FCFA.
Read also: Financial market: challenges and contours of Cameroon’s 7th bond issue
As a reminder, since 2010, the State of Cameroon has embarked on a vast investment program in growth and employment-generating projects in the areas of port, road and energy infrastructure, among others. A commitment that is in line with the orientations of the National Development Strategy (SND 30), which aims to make Cameroon an emerging country by 2035. To pursue the various projects undertaken and finance the new projects included in the Budget 2023, the State has provided in the Finance Law, an overall debt of nearly 1,713 billion FCFA in order to fill the financing gap of the said financial year.
Source: Current Challenges n°779 of Monday June 26 to 28, 2023
