China holds 64.8% of Cameroon’s bilateral debt, amounting to around CFA1,923.4 billion, according to the Autonomous Sinking Fund (CAA) report released on October 31, 2024. This share represents 22.4% of Cameroon’s total external debt, which stands at CFA8,596 billion. France, the next-largest bilateral lender, holds CFA768.3 billion, or 25.9% of Cameroon’s bilateral debt and 8.9% of the external debt.

Cameroon’s borrowing from China surged in the early 2010s to fund major infrastructure projects, including hydroelectric dams, bridges, roads, and the deep-sea port in Kribi. These projects were mainly financed through China Eximbank, China’s state-owned export and import bank. China has also expanded into Cameroon’s mining sector, with Sinosteel becoming the first mining operator to secure a license to extract iron ore.

The partnership between Cameroon and China has grown since they established official diplomatic ties on March 26, 1971. Today, cooperation spans trade, infrastructure, industrial investment, agriculture, health, and digital technology. A range of agreements underpins this relationship, including loan, economic cooperation, and cultural exchange agreements. Trade between the two nations reached nearly CFA1,178.1 billion in 2023, up 24.1% from 2022, according to the National Institute of Statistics (INS).

In September, during the 4th Forum on China-Africa Cooperation (FOCAC) in China, President Paul Biya called for more Chinese investment in Cameroon’s road infrastructure to support the nation’s 2035 development vision. “Our goal is to build a stronger economy, relying on competitive local industries capable of transforming our mineral and agricultural resources to meet domestic needs and export in high volume,” he stated, positioning Cameroon as a strong prospect for Chinese investors.

Source: Business in Cameroon