Cameroon to issue €381 million bond debt

Apr 25, 2012

Cameroon's finance minister announced last week that the state is planning to issue CFAF 250 billion (€381.1 million) worth of bonds.

Cameroon's finance minister announced last week that the state is planning to issue CFAF 250 billion (€381.1 million) worth of bonds.

It is hoped the bond debt will contribute to finance large investment programmes, such as port or energy infrastructure projects.

The objective is to diversify financing sources for the national economy through the financial markets. "We want to reach to consumers and private enterprises, away from institutional sources," Finance Minister Alamine Ousmane Mey told Xinhua news.

Several bond debts issued in Africa have been successful over the past months, which helped African states and development institutions leverage funds to pursue their activities, such as small to medium-sized enterprise (SME) financing or infrastructure.

Cameroon's entrepreneur union (Mecam) believes that an intelligent use of the government's bond debts is key to improving SME financing.

"The government launches a bond debt to finance SME activities. The subscription rate can stay at 5.6 percent, as with the previous one. Once the money has been leveraged, the government will make it available to SMEs, which in return will bring an added value of eight percent, for example", Mecam spokesperson Anselme Kemva told La Nouvelle Expression.
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