President Paul Biya has ordered the sourcing of funding for some projects in the 2016 Finance Law.

The government of Cameroon is expected to mobilise FCFA 300 billion from the capital market in 2016. The decree signed on March 1, 2016, gives the Minister of Finance the leeway to go in for additional funds for financing some public investment projects earmarked for execution in the 2016 financial year.

Information from the Ministry of Finance reveals that the process will definitely be finalised by the end of the month. The treasury bills will be sourced from the Bank of Central African States, public stock market and the Douala Stock Exchange. The calendar for the first and second quarters of the year was already published by BEAC, but it will be finalised following the Presidential Decree which authorises for long-term (one year) treasury bonds), sources at the Ministry explained.

With the authorisation, the Ministry of Finance will proceed with comparable treasury bonds (that have a maturity period of two years), meant for budgeted development projects. Comparable treasury bills (short-term, with one year maximum as maturity period of 13, 26 and 52 weeks in the CEAMC sub-region) will continue.  The operation to be carried out within the framework of comparable treasury bonds (medium-term, with minimum yield period of two years, can go up to 30 years), though Cameroon has limited hers to two.

 « We know what is expected of us and we are working to achieve it, » an official of the Ministry told Cameroon Tribune. The source said the coming three weeks will be full of work with every aspect from the reception of investment projects from the Ministry of the Economy, Planning and Regional Development, to analysis and forward to the authority  for approval scrutiny. Officials of the Ministry explain that technical documents and the validation of the tentative calendar for the operation will be finalised in the days ahead.

This opens up negotiations between banks and the government through their intermediaries who were elected in November 2015 as liaison between government and bondholders in the 2014-2019 treasury bond issue. Government sourced FCFA 150 billion in 2014 in the financial market. Treasury bonds in 2010 and 2013 fetched FCFA 200 billion and FCFA 80 billion respectively for the execution of infrastructure projects like hydro power dams. The 2016 operation is expected to continue changing the face of the country in the road, water, energy, livestock, agriculture and transport infrastructure, amongst others.