Floating Debt Reaches a New High
According to FinancialAfrik, Cameroon’s floating debt – the stock of unpaid domestic invoices and overdue payments – reached a staggering US$1.8 billion by the end of the first quarter of 2026. This figure represents a significant portion of the country’s annual public spending, excluding debt service and salaries, and underscores a persistent structural imbalance between commitments and actual cash outflows.
Underlying Causes: Cash‑Flow Management and Extrabudgetary Expenditures
Investir au Cameroun explains that the rise is largely driven by the government’s reliance on cash advances to cover extrabudgetary expenses. These advances, often paid to suppliers and contractors, accumulate as “restes à payer” and inflate the debt stock. At the end of March 2026, the total outstanding was reported at 1 026.3 billion FCFA, with 44 % (452.5 billion FCFA) of these invoices older than three months. The Ministry of Finance attributes this to a “multiplication of extrabudgetary expenditures paid too frequently and poorly documented.”
Impact on the Private Sector and the Banking System
As Africtelegraph notes, the delay in payments forces the private sector to absorb the cash‑flow shock. Small and medium enterprises, often the primary creditors of the state, face liquidity constraints that ripple through the supply chain. Banks, exposed to these supplier credits, see an uptick in non‑performing loans, tightening credit conditions for other borrowers. The situation also erodes confidence in the public sector’s fiscal discipline, potentially raising borrowing costs on the capital markets.
Government’s Response and Future Outlook
In response, the government has announced a review of its cash‑management practices and a commitment to reduce reliance on advances. The 2027‑2029 Economic and Budgetary Programming Document outlines plans to streamline extrabudgetary spending and improve payment timeliness. However, analysts warn that without structural reforms to the public procurement and budgeting processes, the floating debt may continue to grow, threatening fiscal sustainability and investor confidence.
Sources
Crédit image : financialafrik
