Paul Biya: Circulaire Sets 2027 Cameroun Budget Guidelines

• President Paul Biya issued Circulaire N°001 on October 12, 2026, outlining the preparation of Cameroon's 2027 State budget.
• The circular mandates a drastic acceleration of import-substitution, prioritizing local goods and services in public procurement.
• Economic forecasts for 2027 include 3.6% growth, 3.2% inflation, and a 2.7% budget deficit.
• New investment projects are prohibited for administrations with stalled projects; priority is given to completing existing infrastructure.
• Cameroon plans to limit short-term borrowing and seek innovative financing, including ESG-linked loans, for its ambitions.

The directive strictly prohibits administrations with substantial outstanding liabilities and stalled projects from initiating any new ventures in 2027.

President Paul Biya of Cameroon has issued Circulaire N°001 on October 12, 2026, providing comprehensive guidelines for the preparation of the State budget for the 2027 fiscal year. This 24-page document, addressed to the Prime Minister and all government members, establishes the macroeconomic framework, outlines priority public actions, and defines the nation's overall budgetary policy. The central tenets of this directive are encapsulated in the presidential motto: "finish what is started and consume Cameroonian," signaling a shift towards economic rigor and national self-reliance.

For 2027, the Cameroonian executive anticipates a resilient national economy, projecting an overall growth rate of 3.6%, with the non-oil sector expected to contribute significantly at over 4%. A key challenge remains the management of price inflation, with a targeted rate of 3.2%, while the overall budget deficit is slated to be contained at 2.7% of the Gross Domestic Product. These figures underscore a cautious yet optimistic outlook for the nation's financial health.

A cornerstone of the 2027 politique budgétaire Cameroun 2027 is a drastic acceleration of the import-substitution policy. President Biya has mandated that public administrations grant absolute priority to local goods and services in all public procurement processes. This directive for import-substitution Cameroun commande publique serves a dual purpose: to vigorously stimulate national production and to alleviate the foreign currency burden, notably through initiatives like the Integrated Agro-pastoral and Fisheries Import-Substitution Plan (PIISAH).

The circular mandates that capital expenditures must constitute at least 30% of the general budget, aligning with the ambitions of the Stratégie Nationale de Développement (SND30). However, this investment drive is tempered by a pragmatic presidential formula: "spend less badly, and finish what is started." This approach directly addresses a significant decline in the execution of investment budgets observed in early 2026.

Consequently, the directive strictly prohibits administrations with substantial outstanding liabilities and stalled projects from initiating any new ventures in 2027. Instead, absolute priority is to be given to completing existing critical infrastructure, including road networks, energy projects such as the Nachtigal dam, and potable water supply systems. To fund these ambitions without overburdening the public treasury, Cameroon plans to limit short-term borrowing and explore innovative financing mechanisms on international markets, including ESG-linked loans (financement ESG Cameroun budget) and those backed by multilateral guarantees.

While the circular meticulously addresses critical sectors such as youth employment, education, and women's empowerment, political analysts have noted a conspicuous absence regarding the funding for legislative and municipal elections, which were initially anticipated for 2027. This omission has sparked debate, raising questions about whether it represents a technical oversight or a deliberate political signal.

The upcoming parliamentary session dedicated to the Finance Law is expected to provide initial clarifications on this and other aspects of the 2027 budget. These discussions will be crucial for understanding the full implications of President Biya's directives and how they will shape Cameroon's economic and political landscape in the coming year.

Lawyers advising clients on public procurement or investment in Cameroon must analyze this circular for its emphasis on local content and import-substitution, which will influence tender requirements. Furthermore, the directive to prioritize completion of existing projects and the exploration of ESG-linked financing will shape future public sector opportunities and financial structuring.

Source: Original reporting via Actu Cameroun