AfDB Transfers $509 Million of Cameroon Sovereign Risk

The African Development Bank (AfDB) has transferred part of the repayment risk on its sovereign exposure to Cameroon to two other multilateral lenders, with $509 million, or about CFA293 billion, covered under risk-sharing agreements as of June 30, 2026. Of that amount, the Inter-American Development Bank (IDB) covers $275 million, while the Asian Development Bank (ADB) covers $234 million, according to the AfDB’s interim financial statements filed with the U.S. Securities and Exchange Commission. The $509 million is neither a new loan to Cameroon nor additional financing made available to the government. It represents financial protection for the AfDB: if certain covered sovereign obligations are not repaid under the agreed terms, the IDB and ADB would absorb part of the AfDB’s losses. The AfDB remains the lender and continues to carry part of the risk. The arrangement also does not mean that the banks expect Cameroon to default. Such mechanisms allow multilateral development banks to redistribute exposure among themselves and limit excessive concentration of risk in individual countries. <p class="texte" ...