Investment

Cameroon agrees loan from China for fibre optic expansion

Cameroon agrees loan from China for fibre optic expansion

Cameroon has approved a loan agreement of about US$195 million with the Export-Import Bank of China. The funding will support phase four of the country’s national fibre optic backbone expansion.

According to the Ecofin news agency, Cameroon’s national fibre deployment programme began over a decade ago with the aim of building a nationwide data transport network. The first two phases saw about 6,000 kilometres of fibre installed between 2011 and 2016. A third phase was completed in 2017 adding another 4,000 kilometres. An additional 1,000 kilometres of fibre was deployed along the Chad-Cameroon oil pipeline.

With the help of further extensions, cross-border interconnections and additional deployments by public and private operators, Cameroon now has more than 15,000 kilometres of fibre infrastructure. This fibre not only connects part of the country to each other but links Cameroon to neighbouring states, including Chad, the Central African Republic, Equatorial Guinea, Gabon and Nigeria.

However, the fibre has not apparently translated into heavy use or reliable connectivity. In fact modest internet penetration, as low as 45%, is still a problem, one that may be down to limited last-mile access.

It is hoped that phase four of the country’s national fibre optic backbone expansion will address these issues by expanding distribution networks to better connect government institutions, businesses, and rural areas where connectivity is poor.

However, as the Business in Cameroon website notes, Cameroon's public debt reached roughly 45.6% of GDP at the end of 2024, and this new borrowing comes as the International Monetary Fund (IMF) continues to rate Cameroon at high risk of debt distress. 

That said, the IMF is apparently keen for the country to prioritise concessional financing for infrastructure and to expand non-oil revenue mobilisation to contain debt vulnerabilities, so may see this loan in a favourable light.



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