Cameroon’s dollar-denominated bonds extended losses for a fourth straight session after Fitch Ratings lowered the country’s long-term foreign-currency rating to B- from B. The move highlights growing concerns over political stability and budget funding in Central Africa’s largest economy.
The 2033 eurobonds posted some of the weakest returns among emerging-market peers on Monday, with yields climbing nearly 30 basis points to a fresh peak of 10.65 percent by mid-morning in London. Notes maturing in 2031 saw yields rise 20 basis points to 10 percent.
Cameroon has roughly $1.7 billion outstanding in the two dollar bonds. Investors have already absorbed losses of about 3 percent on the debt this month, the weakest performance across Africa while the broader Bloomberg Emerging Markets Dollar Bond Index advanced more than 1 percent.
The rating agency pointed to the absence of a clear successor for President Paul Biya, who at 93 is the world’s oldest head of state. Biya secured an eighth term in the October 2025 elections.
A constitutional change approved earlier in 2026 revived the vice-presidency, a post abolished in 1972, to handle a leadership transition. The position remains unfilled.
The position of vice-president, introduced through the constitutional reform of April 2026, remains vacant. A designated successor would also be likely to face challenges in establishing their authority.
Fitch noted that Cameroon lacks an active International Monetary Fund program, pushing greater reliance on external borrowing to cover the budget gap. The agency expects gross financing requirements to reach 7.3 percent of GDP in the current year, up from 5 percent in 2025.
Biya’s limited public schedule and repeated medical trips to Switzerland have already stoked questions about his health and the country’s leadership path forward.