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Finance Minister (MINFI), Alamine Ousmane Mey, says the choice of government to go to the money market in the sale of bonds in search of FCFA 150 was motivated by the need to boost infrastructure development in the country.

Speaking in a press conference in Yaounde on Tuesday December 16, 2014, the Minister said the fundraising launched in Douala on November 24 to round off on December 23 for 2014-2019 period at 5.5 per cent interest rate seeks to finance roads, ports and energy infrastructure, among others.

The Projects

Projects to be financed with the FCFA 150 billion to be raised from the government bonds include Lom-Pangar hydroelectricity dam (FCFA 15 billion), Memve’ele hydroelectricity dam (FCFA 15 billion) as well as that of Mekin (FCFa 10.8 billion). There is also the tarring of structuring road network wherein FCFA 27 billion will be made available from the funds raised, the pavement of non-structuring road network (FCFA 9 billion) and the Yaounde-Nsimalen double-carriage highway to benefit from FCFA 3.7 billion.

The construction of the Kribi Deep Seaport will also benefit from FCFA 25 billion of the money alongside other projects meant to improve on the socio-economic life of the nation and its citizens.

Minister Alamine Ousmane Mey told the press that government is faithful to its engagements and that no effort will be spared to execute life-changing projects susceptible to improving the living conditions of the population.

That government raised FCFA 200 billion in 2010 and FCFA 80 billion in 2013 from the same source, the Minister said, is telling of the confidence of the banking sector on government. He disclosed that at the end of the ongoing fiscal year, FCFA 150 billion of the FCFA 200 billion 2010 bonds would have been reimbursed.

On whether the operation will not sink government into serious indebtedness, the Minister said as at now government’s debts only represent about 20 per cent of its Gross Domestic Product far below the CEMAC regulation which stipulates 70 per cent.

He said the fact that SCB Cameroun stood as the lead bank (arranger) in 2013 and is still doing so in 2014 speaks of growing confidence in government, an opportunity which must be fully maximized to execute growth-induced projects.

Responding to questions on why the agriculture sector is sidelined in the operation; notably the construction of farm-to-market roads and enhancing the processing of agricultural products, Minister Alamine Ousmane Mey said bonds represent just one of the sources of government’s revenue.

He said the 2015 Public Investment Budget has taken good care of those aspects especially as it has moved from FCFA 1,000 billion in 2014 to FCFA 1,150 billion in 2015.