Outstanding Treasury securities in the 6-nation CEMAC region rose to XOF 10.56 trillion at the end of July, up 3.34% from XOF 10.22 trillion in June, according to the Bank of Central African States. The increase lifted the market debt ratio to 13.3% of regional GDP from 12.9% a month earlier and 12% at the end of 2025.
Gabon became the region's largest issuer, with XOF 3.42 trillion of securities outstanding, followed by Congo at XOF 3.04 trillion and Cameroon at XOF 2.06 trillion. Gabon recorded the largest increase in nominal terms during July. Central African Republic and Chad also increased their outstanding debt, while Equatorial Guinea recorded a 1.55% decline.
Borrowing costs rose as governments sought more funding. The average rate on new securities increased to 8.53% in July from 8.29% in June. The average rate on Gabonese Treasury bonds climbed to 10.13% from 9%, while Cameroon's fell to 7.36%, showing a wider gap in the rates investors require from different governments.
Demand improved but remained below levels seen earlier in the market's development. The average subscription rate for new issues rose to 76.23% from 72.44% in June. Treasury securities specialists increased their participation rate to 22.05% from 20.13%. In 2018, average subscription rates exceeded 200%, showing how investor demand has changed as the market expanded.
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The investor base is also shifting. Primary dealers held XOF 6.80 trillion, or 64.4% of outstanding securities, down from 80.8% in 2018. Institutional investors held XOF 2.15 trillion, equal to 20.4%, while individuals held XOF 379.9 billion. The change gives governments access to more types of investors as issuance grows, but higher rates show that those buyers are demanding more compensation to lend.
Key Takeaways
CEMAC governments are borrowing more from the regional market, but July's numbers show that this funding is becoming more expensive and less automatic. Outstanding securities have risen to 13.3% of regional GDP from 12% at the end of 2025, continuing an increase that has been under way since 2021. At the same time, the average cost of new borrowing reached 8.53%, while Gabon paid more than 10% on Treasury bonds.
That matters because higher yields increase future interest costs and can leave less budget room for public services and investment. The 76.23% subscription rate also shows that investors are not taking every security offered, forcing governments to compete more for available savings.
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One change could help the market absorb more issuance: ownership is spreading beyond primary dealers. Institutional investors now hold 20.4% of outstanding debt, compared with almost no share 8 years ago, while dealers' share has fallen to 64.4%. A broader investor base can reduce dependence on banks and improve market depth. The main question is whether that growth can keep pace with government borrowing. If issuance continues to rise faster than demand, yields could stay high and refinancing pressure could increase across the region.
