Investors dump Cameroon bonds amid concerns over life after Paul Biya

Cameroon’s dollar-denominated bonds have plunged as investors grow increasingly concerned about political uncertainty surrounding President Paul Biya’s eventual succession and the country’s rising financing needs.

According to Bloomberg, the country’s 2033 eurobond yield climbed above 11 per cent following a credit rating downgrade, reflecting mounting investor anxiety over Cameroon’s political and economic outlook.

Fitch Ratings downgraded Cameroon’s sovereign credit rating from B to B- on October 16, citing succession uncertainty and increasing pressure on public finances.

Biya, 93, has led Cameroon since 1982, but the absence of a publicly designated successor has heightened concerns about a potentially difficult political transition.

The country’s gross financing needs are projected to rise to 7.3 per cent of gross domestic product in 2026, compared with five per cent in 2025.

Cameroon is also facing tighter access to regional financing and lacks a new International Monetary Fund lending programme, increasing its reliance on commercial borrowing.

Despite relatively moderate public debt, rising yields could make future borrowing more expensive and complicate government efforts to finance spending.