(Ecofin Agency) – Since 2011, the year of the launch of the Beac Public Security Market, Cameroon has never been in default of payments, thus remaining the most attractive jurisdiction for investors.
With an average interest rate of 6% in March 2022, equivalent Treasury bonds (public security maturity not exceeding 52 weeks, editor’s note) issued by the six CEMAC countries (Cameroon, Congo, Gabon, Chad, CAR, Equatorial Guinea) the government security market of the United States Central Bank (Beac) reached its highest level in a nine-month period.
But according to data compiled by the Securities Settlement and Conservation Unit (CRCT) of the Beac, Cameroon is falling slightly. Indeed, we learn, in March 2022, Cameroon’s Treasury charged once again interest rates on its Assimilable Treasury Bonds (BTA) which is half the cost of what investors pay by other countries to CEMAC active in market that.
In detail, while the average interest rate paid by Cameroon on its short-term security was peaking at 2.53%, this means slightly more than half of the overall average market rate (6%), a country as Chad shows a rate of 6.78% during the. same period. This represents 2.6 times the average rate practiced by Cameroon. The Republic of Congo is roughly in the same proportion, with an average rate of 6.44% on BTA, compared to 5.97% for Gabon. Equatorial Guinea and CAR were absent from the market during the analysis period.
Moreover, despite this policy of relatively low interest rates, Cameroon, in late March 2022, regained its position as the main driver of the Beac public security market, which was snatched from it a few months ago by Gabon. Clearly, despite less attractive interest rates than those used by other CEMAC countries, the security of the Cameroonian government continues to attract investors to the money market.
The origin of this attraction of investors for security, although less wages, is certainly the solvency of the country. Indeed, according to data from the Ministry of Finance, since November 2011, the date of launch of the public security market in the Beac, Cameroon has made repayments of more than 3,000 billion FCFA, without a single default payment. This makes it a credible partner for investors in this market.
Brice R. Mbodiam
18-04-2022 – Cameroon overtakes Gabon and becomes once again the main driver of the Beac security market in late March 2022.