Cameroon’s Rising Debt: The Borrowing Paradox

 Cameroon’s Rising Debt: The Borrowing Paradox

By Ernest Chefon Ndukong

Cameroon’s public debt has once again moved to the center of national debate following the authorization of more than CFAF 2.3 trillion in new loans between September 2025 and January 2026. This comes to add to the already huge debt stock, raising concerns among citizens about sustainability, transparency, and tangible development outcomes.

Yet, economists caution that the issue is not borrowing itself, but rather how borrowed funds are selected, executed, and managed.

Borrowing Is a Development Tool, Not a Failure

Like most developing economies, Cameroon relies on borrowing to finance infrastructure, social services, and budgetary gaps. Roads, ports, power plants, hospitals, and schools often require large upfront capital that domestic revenues alone cannot support. External financing also helps governments respond to shocks such as global pandemics, security challenges, and climate-related disruptions.

In this sense, public debt is a normal and often necessary policy instrument. Problems arise when the returns generated by loan-financed projects fall below the cost of the debt used to fund them.

When Debt Stops Delivering Growth

Several factors weaken the impact of public borrowing in Cameroon. These include weak project preparation, delays in execution, cost overruns, governance failures, and poor monitoring of outcomes. In some cases, loans are contracted for projects that do not significantly improve productivity or economic capacity.

The consequence is a dangerous imbalance: the country incurs repayment obligations without generating the growth needed to service them. Citizens then bear the burden through higher taxes, reduced public services, or constrained future investment.

The Problem of Undisbursed Loans

A recurring concern is the growing volume of loans that remain partially or entirely undisbursed. This situation often stems from procurement delays, lack of counterpart funding, administrative bottlenecks, or failure to meet lender conditions. Despite the absence of actual cash inflows, commitment fees and charges continue to accrue, increasing debt without corresponding benefits to the economy.

Why Printing Money Is Not an Option

Some citizens ask why the government cannot simply print money instead of borrowing. The answer lies in Cameroon’s monetary framework. As a member of the Central African Economic and Monetary Community (CEMAC), Cameroon does not control its currency independently. The CFA franc is issued by a regional central bank and pegged to the Euro.

Uncontrolled money creation under such a system would fuel inflation, weaken external reserves, and threaten monetary stability. Borrowing, therefore, becomes the primary financing option, though one that must be carefully managed.

Risks of Debt Distress and Default

Failure to meet debt obligations would have serious consequences. A default would restrict access to international credit markets, raise import costs, weaken the banking system, and likely trigger austerity measures under international financial assistance programs. Cameroon has experienced such adjustment periods in the past, with significant social and economic costs.

Limits of Domestic Borrowing

While the government does borrow from local banks, domestic financing has limits. Excessive reliance on local banks can crowd out private sector credit, raise interest rates, and expose the financial system to sovereign risk. Domestic borrowing alone cannot meet the scale of Cameroon’s development needs.

Lessons from Elsewhere

International experience shows divergent outcomes. Countries such as Kenya have faced rising fiscal pressure due to heavy borrowing combined with weak project returns, while others, like Rwanda, have demonstrated that disciplined borrowing aligned with strong execution and accountability can yield visible development gains.

A Question of Governance, Not Access to Funds

Ultimately, Cameroon’s debt challenge is less about the volume of borrowing and more about governance. Strengthening project appraisal, enforcing transparency, publishing execution reports, and subjecting loan-financed projects to independent audits would significantly improve outcomes.

Public borrowing can accelerate development, but without discipline and accountability, it becomes a silent burden on future generations. The central question is no longer how much Cameroon borrows, but what the country gains in return.

“He who borrows a drum must return it without a tear.”

Cameroon’s 43-Year Puzzle: When Loyalty Becomes the People’s Undoing

 

“Cameroon’s 43-Year Puzzle: When Loyalty Becomes the People’s Undoing”

By Ernest Chefon Ndukong

As Cameroonians await the official results of the October 12, 2025 presidential election, a familiar air of resignation hangs over the country. The incumbent, President Paul Biya, 92, has ruled for 43 years, a lifetime for many who have known no other leader. For over four decades, the promise of democracy has existed largely in theory, while poverty, unemployment, poor infrastructure, and decaying social services have remained the lived reality of millions.

Yet, despite these deep-rooted hardships, the ruling Cameroon People’s Democratic Movement (CPDM) continues to dominate the political landscape with near-absolute certainty. This year’s campaign season offered a telling illustration. President Biya made a personal appearance in only one town, Maroua, while delegating the rest of the campaign to senior party figures, most of whom are government ministers, high ranking public administrators and influential elites.

In almost every division and subdivision, these representatives held grand rallies, ensuring once again that the CPDM machinery reached the grassroots. They are, after all, the primary beneficiaries of the system, custodians of privilege whose influence depends on maintaining the status quo. The ruling party’s network of loyalty is therefore not just political; it is economic and deeply social. Government positions and benefits are deliberately spread across ethnic lines to create a semblance of inclusion, ensuring that no community feels entirely left out of “the national cake,” even if the slices are grossly unequal.

But beneath this facade lies a troubling truth: while the Head of State is often blamed for the country’s decline, the everyday agents of power - local officials, regional administrators, mayors, and MPs have equally failed their people. Roads remain impassable, schools under-equipped, hospitals ill-staffed, and electricity unreliable. Ironically, the same officials who preside over this decay return during election seasons in convoys of gleaming four-wheel drives to preach continuity to the same populations who suffer under their neglect.

The moral tragedy is that the masses, weary and impoverished, continue to welcome these figures with open arms, singing, dancing, and pledging votes. Fear, dependence, and long-cultivated habits of submission have blurred the line between leadership and servitude. The people have ceased to see themselves as shareholders in the Republic, and instead act as spectators in their own national destiny.

Cameroon’s greatest challenge, therefore, may no longer be a question of who governs from Yaoundé, but how citizens across the ten regions choose to hold their leaders, big and small accountable. True change will not come from a new face on a ballot, but from a new mindset among the governed.

It is time for Cameroonians to awaken to the power of collective accountability. Every vote must be earned through tangible service, not patronage or tribal loyalty. The luxury homes built by officials in villages where children still drink from streams should no longer be symbols of admiration but evidence of betrayal.

A country blessed with abundant natural resources, oil, timber, minerals, fertile lands, and a vibrant youth population has no reason to wallow in poverty except for its mismanagement and the complacency of its citizens. The day the ordinary Cameroonian begins to reject unworthy leaders, not with violence but with civic courage, will be the day the country begins to truly rise.

Cameroon does not lack vision; it lacks accountability. And until both the rulers and the ruled understand that progress is impossible without responsibility, elections will remain rituals of continuity rather than instruments of change.

“Africa will rise the day her people realize that leadership is not a gift to receive, but a duty to demand accountability.”

Elon Musk as the “DOGE”: Entrepreneurial Disruption and the Future of Public Leadership in Cameroon

 

Elon Musk as the “DOGE”: Entrepreneurial Disruption and the Future of Public Leadership in Cameroon

By Ernest Chefon Ndukong

Elon Musk, the globally recognized CEO of Tesla, SpaceX, and other ambitious ventures, represents more than just corporate success. He is a symbol of disruptive leadership — a figure who challenges institutional norms and reshapes entire industries. Musk’s influence extends into policy, culture, and even diplomacy.

His style — bold, fast, tech-centric — offers a provocative lens through which to examine leadership models, especially in places like Cameroon where traditional governance frameworks often stifle innovation. Could Musk’s brand of entrepreneurial disruption offer lessons for public service in Cameroon?

Cameroon at a Crossroads: Can Business-Led Thinking Transform Public Institutions?

Cameroon, like many African nations, faces deep structural challenges: underperforming public institutions, slow project delivery, and inefficient governance. Yet the private sector has demonstrated resilience, adaptability, and a growing appetite for innovation. The real question is whether entrepreneurial leadership — exemplified by figures like Musk — can successfully inform or even infiltrate public governance in Cameroon.

Vision as Currency: Why Big Ideas Matter in Public Leadership

Musk has reimagined electric mobility, commercial space travel, and AI — shifting global expectations about what’s possible. In Cameroon, similar visionary thinking is seen in the tech ecosystem, notably with Arthur Zang, creator of the CardioPad, a tablet that enables remote heart examinations.

Public policy in Cameroon, however, often lacks this ambition. Integrating private-sector visionaries into national development strategy — especially in sectors like health, education, and energy — could accelerate transformative change

Doing More with Less: Private-Sector Efficiency in a Resource-Strapped State

Efficiency is Musk’s signature: reusable rockets, automated factories, and lean R&D pipelines. Cameroon’s public sector, by contrast, suffers from project cost overruns, procurement delays, and minimal accountability.

Enter leaders like Célestin Tawamba, CEO of Cadyst Group and president of GICAM. If such figures were involved in designing or managing public programs, Cameroon could see improved cost-efficiency, better monitoring, and reduced waste — essential for development in a resource-constrained environment.

Speaking Directly to the People: Digital Tools and the Democratization of Leadership

Musk’s unfiltered use of X (formerly Twitter) bypasses traditional media and institutions, offering a new model of real-time public engagement. In Cameroon, where citizens often feel disconnected from policy decisions, digital platforms could become bridges.

Imagine a regional governor live-streaming town hall sessions or using mobile apps to gather community feedback — a powerful way to rebuild trust and transparency in governance.

Tackling Red Tape Like a Startup: Entrepreneurial Mindsets Against Bureaucracy

Private-sector leaders thrive on speed and adaptability. Cameroon’s public sector, on the other hand, is notorious for bureaucratic drag — from permit approvals to procurement contracts.

If entrepreneurial minds were embedded in reform commissions or ministerial units, they could push for digitized workflows, performance-based KPIs, and time-bound delivery metrics — breaking decades-old inertia.

When Systems Push Back: Corruption and Institutional Resistance

Musk has often clashed with regulators and traditional institutions — a reminder that disruption invites resistance. In Cameroon, where governance is deeply intertwined with political patronage and opaque networks, even the best-intentioned business leaders can be sidelined or blocked.

Fighting corruption and streamlining public processes requires not only boldness but also political acumen and coalition-building — skills not all entrepreneurs possess.

Speed vs. Stability: The Cultural Collision Between Boardrooms and Bureaucracies

Business success often relies on speed and risk-taking. Government, in contrast, operates through procedure, consensus, and institutional caution.

This cultural mismatch means a CEO transitioning into public office might find the system frustratingly slow — or be seen as destabilizing. Real change will require leaders who can balance entrepreneurial momentum with an understanding of public governance rhythms.

From Maverick to Minister: Navigating Public Backlash and Political Risk

Musk’s controversial tweets and erratic behaviour have drawn global scrutiny. In Cameroon, where ethnic, regional, and political sensitivities run deep, bold decisions — even when effective — can provoke backlash.

Reforms in land administration, tax policy, or fuel subsidies, for example, might make economic sense but face resistance from vested interests or vulnerable communities. Leadership in this space demands a careful mix of courage, diplomacy, and empathy.

Great Ideas, Weak Systems: Why Implementation is Cameroon’s Real Bottleneck

Cameroon doesn’t suffer from a lack of good ideas — it suffers from poor execution. Many digital reforms have stalled not because they were flawed but because of weak institutional coordination, lack of funding, or outdated infrastructure.

Even a visionary entrepreneur will fail if the implementation pipeline is broken. Public innovation requires system design, not just product thinking.

Mobile Money, Missed Opportunity: What MTN Taught Us About E-Governance

MTN’s introduction of mobile money revolutionized how Cameroonians transact — proving that scalable innovation is possible even under tough conditions. The public sector, however, has failed to replicate or leverage such innovations for things like tax collection, school fees, or hospital payments.

The lesson: innovation can start in the private sector, but without an enabling public ecosystem, it rarely reaches national scale.

Beyond the Hype: Real Reform Requires More Than Disruption

Elon Musk’s leadership — bold, disruptive, tech-oriented — offers Cameroon a provocative model of how to think and act differently. But real reform in public service goes beyond vision and charisma. It requires durable systems, inclusive processes, and political courage.

Cameroon doesn’t just need disruptors — it needs builders of lasting institutions.

A Musk for Cameroon? Blending Boldness with Bureaucratic Wisdom

Could Cameroon cultivate its own version of a Musk — a figure who blends entrepreneurial daring with deep governance insight?

Possibly. But such a leader must not only challenge the status quo, they must build bridges across it. The real path forward lies in fusing private-sector dynamism with the legitimacy, continuity, and responsibility of public service.

The future of Cameroonian governance may depend not just on who leads — but on how well they navigate the space between innovation and institution.

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Increase In Fuel Prices In Cameroon, An Economic Quackmire

 

Increase In Fuel Prices, An Economic Quackmire

By Ernest Chefon Ndukong

Cameroon’s Head of State, Paul Biya, hinted in his traditional end-of-year address to the nation on December 31,2023, a possible increase in fuel prices. This was aimed to cushion the state’s subsidy burden on petroleum products, signalling a contribution of about FCFA 640 billion in 2023, dropping from over FCFA 1,000 billion in 2022.

The recent government announcement resulted from an increase in fuel pump prices in February 2023 of circa 16 percent and 25 percent for Super and Diesel, respectively.

On Friday, February 1, 2024, the Minister of Trade, Luc Magloire Mbarga Atangana convocated a consultative meeting for February 2, 2024, with trade union organisations in the presence of the Ministers of Labour and Social Security, Transport, Water and Energy and representatives of Defence and Security forces.

The result of this consultation was a further 15 percent increase in fuel pump prices to FCFA 840 and FCFA 828 for Super and Diesel respectively. This translates to circa 33 percent and 44 percent increase prior to February 2023 for the respective fuel products.

Consultation Or Information?

Whether the above session was consultative or informative is unknown to the ordinary Cameroonian. In the last quarter of 2023, the Minister of Trade, Luc Magloire Mbarga Atangana, held several meetings with concerned stakeholders after which the price of bread was reduced from FCFA 150 to FCFA 135. These sessions with Union of bakers could be interpreted to represent a consultation.

The Place Of Planning

The new fuel prices were notified just few hours to the effective date, leaving no time for economic operators and fuel consumers to properly strategise on how to limit the negative consequences that such a major expense head could have on their activities. Businesses with approved budgets would immediately start experiencing overspends while individuals will be forced to cough out more from their generally limited resources. This action disregards the benefits of the place of planning, however this may have affected only the spender as the State might have considered it in its yearly subsidy savings for the 2024 budget.

Consumer Perception On Usage Of Subsidy Savings

As indicated by the Head of State, the increase in fuel prices is intended to reduce the State’s subsidy burden on petroleum products and possibly diverting the funds to other avenues to improve the living standards of Cameroonians. However, many a Cameroonian has minimum knowledge of exactly what project was realised with their extra contribution to state cash inflow via the increased fuel prices. A bike driver or taxi driver would feel fulfilled to learn that his extra FCFA 110 paid for Super was part of the funds used to build a hospital in Founangue in the Far North Region or a school in Noni, in the North West Region, or a bridge in Bamvele, in the East Region.

Multiplier Effect Of Increase In Fuel Prices

Rumours and the effective increase in the prices of fuel were received with anguish by many stakeholders as it immediately led to increased travel and transport cost, increased consumer spending and business cost and increased inflation.

Businesses rely on vehicles that use fuel for the transportation and logistics of their products. Therefore, when fuel expenses for businesses increase, product and service costs may also rise. These increases can be passed on to consumers as higher prices for final products and services.

Fuel prices determine the daily travel and transportation costs for vehicle owners, thus their increase directly leads to increased expenses and strained budgets. Considering transport cost is a significant portion in every budget, its increase will have a toll on general consumer spending restricting other expenditures, which could deteriorate the living standards of the population.

Considering fuel is important to most economic operators, an increase in its price will lead to a general price increase of other products leading to an inflationary situation, thus elevating the consumer price index and reducing purchasing power.

With business expenses on a high resulting from increased fuel or transport cost, businesses directly and hugely affected would source for ways to cut down on other costs and often resort to reducing staff and limiting wage increases, thereby increasing the unemployment rate and prolonged wage stagnation.

Incommensurate Accompanying Measures

The Secretary General of the Prime Minister’s office, in his correspondence of February 2, 2024, notifying the increase in fuel prices equally highlighted some measures to be put in place by the State to cushion the effects of the increase in fuel prices.

Among these measures includes an increase by 5 percent of the basic salaries of public servants, dialoguing with the private sector on the guaranteed inter-professional minimum wage and related issues, and the reduction of certain tax and customs charges in the road transport sector. While these measures lack more data for effective planning and forecasting, questions whether they will attain the intended objective remains a concern.

Possible Ways To Limit Effects Of Fuel Price Increase

Increased fuel and transport cost can push people towards alternative modes opting for more economical energy sources for power generation and use of public transportation, cycling, walking and ride sharing services. Our environment has its inherent limitations to some of these alternatives, some of which are uncoordinated, coupled with less luxurious public transport services, insecurity on the streets, absence or non-respect of walk paths.

While the increase in fuel prices will enable the State to save on subsidies on petroleum products, thereby boosting its treasury resources, the effect on the end user only turns an already bad economic situation to a worse one, with enormous hardship impending leaving the population to only but hope that C.S Lewis’ “Hardships often prepare ordinary people for an extraordinary destiny” quote sees the light of day.

Refining The Place Of Technology In The 21st Century Business : A New Paradigm For Business Sustainability

 

Refining The Place Of Technology In The 21st Century Business : A  New Paradigm For Business Sustainability

By Ernest Chefon Ndukong (the script of a presentation at the Catholic University Institute of Buea, School of Business Conference held on 09/01/2023)

 “When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar.” George Westerman.

Most businesses which had enormous potential for exponential growth and expansion are nothing but really fast caterpillars today because of failure to match up with technological evolution. The consequence of technological obsolescence is that the company is either overtaken on the market place or worst still they go out of business resulting from declining performance. The one person responsible for causing a business to experience declining performance or exit the market is “The Boss”.

Some worldwide examples of businesses that failed to adapt include;

Blockbuster, a former provider of movies and video game rental services employed over 84.000 people worldwide at its peak. They failed to change their business model with time and their demise came with Netflix and other on-demand streaming.

Blackberry at a point had over 80 million users worldwide with the likes of former U.S president, Barack Obama who got rid of his in 2016. They monopolized the market in the 2000s as the primary mode of personal and business communication was carried out on Blackberry messenger. They ignored upgrade until would be overtaken by the likes of Apple with the iPhone just with touch screen base technology.

Kodak used to be leader in photographic film throughout the 20^th century but stayed in their comfort zone. They introduced the first digital camera in 1975 but dropped it due to fear of it dismantling their photographic film steamroller. Digital eventually took over and Kodak’s failure to innovate forced them to file for bankruptcy in 2012, re-emerging in 2013, much smaller and focusing on serving commercial clients.

Locally, several cases of business decline or exit are recorded for one reason or the other. Some anonymous cases are illustrated with their history and experience;

There exists a money transfer company which led the market and had mammoth potentials to monopolize the money transfer market. They even had a powerful tool in complaining customers which they could leverage on to skyrocket in the market place. They failed to make use of Bill Gates quote; "Your most unhappy customers are your greatest source of learning”, and today they are just a fast moving caterpillar.

There exists a road transport company who were “kings of the night”. Internal squabble and failure to upgrade fist led to a split of the company before rendering them a fast moving caterpillar

There exists a mineral water company whose business and legal name actually meant “mineral water” in the consumer’s mind. Failure to leverage on this powerful recognition tool has forced them to be another fast moving caterpillar.

The prime consequence of technological obsolescence is decline in the bottom-line and eventually exit from the market place ad this happens when The Boss changes taste and according to Sam Walton, “There is only one boss. The customer. And he can fire everybody in the company from the chairman down, simply by spending his money somewhere else.”

With The Boss being the primary reason for business performance decline or market exit, every technological tool must respond to a want in The Boss’ voice. Some wants in The Boss’ voice include; Comfort, Celerity, Security, Self-service, Effective communication, Service personalization, One-stop-shop.

Steve Jobs puts it nicely; “You’ve got to start with the customer experience and work back toward the technology, not the other way around.”

Ndukong Ernest Chefon: INTERNATIONAL DAY OF THE FAMILY TOPIC: MANAGING YOUR EMOTIONS

Ndukong Ernest Chefon:  <!--[if !mso]>v\:* {behavior:url(#default#VML);}o...:   INTERNATIONAL DAY OF THE FAMILY TOPIC: MANAGING YOUR EMOTIONS BY ERNEST CHEFON NDUKONG, 15/05/2021 “I’D RATHER REGRET NOT SAYING OR...