Cameroon could lose nearly CFA292 billion in financing already approved by the African Development Bank (AfDB) Group if it fails to complete key administrative steps and begin using the funds within the Bank’s required deadlines.

Documents presented on July 14, 2026, during the joint portfolio review between the Cameroonian government and the AfDB in Yaoundé show that seven operations worth 373.419 million Units of Account (UA) are now at risk of cancellation. The Unit of Account is the AfDB’s accounting currency, and the amount concerned is equivalent to about CFA292 billion.

The funds have not yet been disbursed. They consist of loans and grants that have already been approved by the Bank but still require financing agreements to be signed, become legally effective, and generate disbursement requests before money can be released to pay for construction, studies, equipment, or other project activities.

According to the portfolio review, six of the seven operations are at risk because their financing agreements have not been signed within the deadlines required by the AfDB. A seventh project, although its financing agreement has been signed, has not recorded a single disbursement in more than 15 months.

Ngoura-Yokadouma road project accounts for most of the funding at risk

The largest project exposed to cancellation is the Cross-Border Economic Basin Connectivity Program, which includes construction of the Ngoura-Yokadouma road.

Approved on February 18, 2026, the project represents 265.4 million UA, or about CFA207 billion. It alone accounts for more than 71% of all financing currently at risk. At the time of the portfolio review, however, the financing agreement had yet to be signed.

Five other operations face the same issue. They include the second phase of the Pan-African University Support Project, the Minkouma hydropower feasibility study on the Sanaga River, the CUA-Y2 university campus planning project, the PROSTABLT stabilization project in the Lake Chad Basin, and a regional transport and trade facilitation project that includes construction of a bridge over the Ntem River.

Together, those six unsigned operations represent 339.419 million UA, equivalent to nearly CFA265 billion.

Signed project still has no disbursement

The seventh project is the second phase of the Kribi Industrial and Port Access Roads Project, known as PARZIK2.

Unlike the other six operations, its financing agreement has already been signed. However, no funds had been disbursed more than 15 months later. Valued at 34 million UA, or about CFA26.5 billion, the project is also considered eligible for cancellation.

A disbursement refers to the actual release of approved financing to pay for construction work, consulting services, equipment, or other eligible project expenses. Without disbursements, approved funding remains unused even after financing agreements have been signed.

The PARZIK2 case illustrates how long delays can separate financing approval from actual project implementation.

Cameroon continues to miss AfDB implementation targets

The portfolio review highlights significant delays throughout the project preparation and execution process.

On average, Cameroon takes 12 months to sign financing agreements after project approval, compared with the AfDB’s target of three months. The average period between approval and a financing agreement becoming legally effective reaches 16 months, well above the Bank’s five-month benchmark.

The gap is even wider when it comes to disbursements. Cameroon takes an average of 21 months between project approval and the first release of funds, compared with the AfDB’s target of 12 months. In practice, projects can therefore wait nearly two years before approved financing begins supporting investment.

Speaking during the review, Minister of Economy, Planning and Regional Development Alamine Ousmane Mey acknowledged several obstacles behind those delays. He cited inadequate project preparation, lengthy public procurement procedures, implementation challenges, limited capacity within some project management units, delays in mobilizing counterpart funding, and slow compliance with contractual requirements.

According to the government, these bottlenecks delay project execution, can increase implementation costs, and raise the risk that development partners will withdraw financing that has already been approved.

Since approving its first operation in Cameroon in November 1972, the AfDB Group has financed 130 loans and grants across multiple sectors, representing cumulative commitments of about CFA3.345 trillion, according to figures presented during the review.

For the 2023-2028 period, the Bank’s pipeline includes 11 planned operations with total financing commitments estimated at CFA833.8 billion.

The projects currently at risk do not involve funds that Cameroon has already received. Rather, they concern financing that has been approved but could ultimately be canceled if the required agreements are not signed or if projects fail to begin drawing down funds within the AfDB’s prescribed deadlines.

Source: Business in Cameroon