The Central African Republic’s Finance Minister Hervé Ndoba recently met, in Douala, with investors active on the Bank of Central African States (BEAC). This meeting aims to catch the of interest Cameroonian investors in the fundraising operations his country is planning for the said market.
“The Central African government plans to cover a portion of its financing needs through the issuance of public securities in the market. To this end, the 2023 finance law forecasted XAF80 billion worth of public securities will be issued to meet the financing needs. The securities include T-bills and T-bonds with desirable long-term maturities, as well as acceptable coupon rates and prices. In the first half of 2023, the Central African Treasury raised XAF42.65 billion, including XAF34.98 billion through T-bonds and XAF7.67 billion through T-bills. The amount raised corresponds to 53.3% of the target meaning that in the second half, XAF37.34 billion need to be raised,” Central African authorities said in an official document.
To achieve its 2023 target, in August, the Central African Republic will launch four fundraising operations. Overall, it intends to raise XAF25 billion, including XAF15 billion with 4 and 5-year T-bonds and XAF10 billion with 26 and 52-week T-bills. For the success of those operations, the country is betting on investors based in Cameroon since official data show they regularly contribute up to 70% of the funds raised on the BEAC public securities market.
Source: Business in Cameroon