Individuals
Businesses
Company
Intelligence
News
African Capital Markets
EnglishEnglish
share on twittershare on linkedinshare on facebookshare to whatsapp
share on mail
share on instagram

Fitch renews Cameroon's “B” rating on diversified economy, GDP growth

Daba Finance/Fitch renews Cameroon's “B” rating on diversified economy, GDP growth
BREAKING NEWSMay 23, 2024 at 5:32 PM UTC

TLDR

  • Fitch Ratings reaffirms Cameroon's "B" credit rating with a negative outlook, highlighting resilient GDP growth and low budget deficit.
  • Analysts anticipate Cameroon's debt-to-GDP ratio to decrease below 40% by 2025, supported by improved debt management and robust GDP expansion.
  • Despite projected decline in oil production, economic growth in Cameroon is expected to be driven by non-oil sectors like agriculture, forestry, transport, and energy infrastructure.

Fitch Ratings has reaffirmed Cameroon's "B" credit rating with a negative outlook, citing resilient GDP growth, a low budget deficit, and a slowdown in the debt level of the largest CEMAC economy.

The American rating agency anticipates Cameroon's debt-to-GDP ratio to decline below 40% by 2025, reflecting improved debt management and robust GDP expansion. Fitch's analysts forecast Cameroon's economy to grow by 3.9% in 2024 and 4.1% in 2025, compared to an estimated 3.8% in 2023.

Despite a projected decline in oil production in 2024 and 2025, growth is expected to be propelled by non-oil sectors such as agriculture, forestry, transport, and energy infrastructure.

Key Takeaways

Credit ratings by agencies like Fitch are crucial as they assess a country's creditworthiness and ability to repay debt. They influence borrowing costs, investment decisions, and overall economic confidence, making favorable ratings desirable for attracting investments and ensuring financial stability. Fitch's credit rating is more optimistic compared to ratings from Moody's and Standard & Poor's. While Cameroon has cleared its external arrears and remains current with debt service obligations, the country faces challenges in cash management. These issues include inflexible security spending, incomplete fuel subsidy elimination, and the accumulation of domestic arrears, which reached 1.6% of GDP by March 2024.

Fitch Ratings
Economy
Sovereign Debt
Sovereign Credit
Cameroon
Finance
Credit Rating

Think someone else should see this?

share on twittershare on linkedinshare on facebookshare to whatsapp
share on mail
share on instagram
Stay informed with our newsletters read by 25,000+ professionals worldwide
Newsletter companiesNewsletter companiesNewsletter companiesNewsletter companiesNewsletter companiesNewsletter companies

Next Frontier

Stay up to date on major news and events in African markets. Delivered weekly.

Pulse54

UDeep-dives into what’s old and new in Africa’s investment landscape. Delivered twice monthly.

Events

Sign up to stay informed about our regular webinars, product launches, and exhibitions.

+25k investors have already subscribed

To invest in this opportunity and other opportunities across Africa

Download the daba finance app on your mobile through
appstore iconappstore icon
Phone Image

Take action.

Download app

Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.

Partner with us

Unlock exciting business opportunities and growth potential.

Join Daba

Become a part of our vibrant community and enjoy exclusive benefits.

Contact us

Reach out to us for inquiries, support, or collaboration.
For Investor
StrategiesPortfolio ManagementAfrican Capital MarketsNews
Daba Pro Intelligence
For Capital Seekers
For StartupsFor Fund ManagersFor Private CompaniesFor Lenders
For Partners
Commercial BanksBroker DealersAsset ManagersInvestment BanksInvestment Advisors and ConsultantsLenders and Microfinance
Company
About UsMarket UpdatesEventsBlog and PodcastNewsletterCase StudiesAffiliate ProgramInvesting GlossaryOfficial ContactsTrust, Compliance and SecurityFrequently Asked Questions

Terms & ConditionsPrivacy Policy
EnglishEnglish

Owned by Daba Markets Inc. By using this site, you accept our Terms and Conditions and Privacy Policy. © 2024 All rights reserved. 2025 All rights reserved