Cameroon is anticipating a significant increase in its budget deficit for 2026, forecasting it to soar to 631 billion CFA francs (approximately $1.11 billion), more than doubling from 309.9 billion CFA francs ($545 million) in the previous year. This elevated deficit is largely a response to rising government expenditures aimed at bolstering economic activity amid a backdrop of ongoing global uncertainties, as outlined in a draft finance bill recently submitted to Parliament.
The country remains vulnerable to external shocks, particularly due to its heavy dependency on imports for essential goods such as fuel, wheat, and automobiles. To address its financial needs, the government’s total financing requirements are projected to reach 3 104.2 billion CFA francs ($5.46 billion) in 2026, a significant increase from 2 326.5 billion CFA francs ($4.09 billion) this year.
The proposed state budget for 2026 totals 8,816.4 billion CFA francs ($15.50 billion), marking a 14% rise from 2025. This increase is attributed to heightened expenditures on personnel costs, goods and services, transfers, and debt servicing.
The ruling CPDM party, led by President Paul Biya, commands a majority in both legislative houses, suggesting that the draft bill is likely to pass without significant opposition. Economic indicators suggest a positive shift, with a projected growth rate of 4.3% in 2026, a slight increase from the estimated 3.9% in the previous year. Notably, growth is expected to be predominantly fueled by a robust performance in the non-oil sector, despite a slight anticipated contraction of 0.1% in the oil sector for the same period. Furthermore, inflation rates are expected to ease by 0.2%, decreasing from the current rate of 3.2%.
To manage its financing gap and meet its financial obligations, the government plans to secure 1,000 billion CFA francs ($1.76 billion) through external loans, along with additional funds sourced from project loans, bank financing, and government securities issuances, complemented by budget support and exceptional financing measures.
As the largest economy in Central Africa, with significant stakes in sectors such as oil and gas, cocoa, and timber, Cameroon has been actively increasing its borrowing to address budgetary constraints and stimulate infrastructure development. In recent years, liquidity challenges have prompted the government to implement structural reforms aimed at broadening its tax base, indicating a strategic approach to enhancing fiscal stability.