Camair-Co’s Debt Crisis Deepens as It Remains Second Most Indebted State-Owned Enterprise in Cameroon

Camair-Co, the national airline of Cameroon, headquartered in Douala, continues to grapple with a staggering debt burden totaling XAF124 billion Central African francs (approximately USD203.7 million). This makes it the second most indebted state-owned enterprise in the nation, following the national oil refinery Société Nationale de Raffinage (Sonara), which holds debts of XAF652 billion (USD1 billion).

Details from the latest public debt review issued on April 25 by Cameroon’s public debt management committee (Comité National de la Dette Publique – CNDP) and national debt recovery fund (Caisse Autonome d’Amortissement – CAA) reveal that as of March 31, 2024, Camair-Co’s liabilities include XAF62.4 billion (USD102.5 million) in domestic debt and XAF61.6 billion (USD101.2 million) in foreign debt.

Since its establishment in 2006, Camair-Co has struggled to achieve profitability and is now considered technically bankrupt. In an effort to stabilize the struggling carrier, the government placed it under performance contracts in 2023, as part of a broader initiative supported by the International Monetary Fund (IMF) to enhance the efficiency of public enterprises. This is part of a USD689.5 million Economic and Financial Programme for 2021-2024 under the IMF’s Extended Credit Facility (ECF) and Extended Fund Facility (EFF).

The ongoing financial challenges have prompted discussions about the potential privatization of Camair-Co. A report last year from a technical committee exploring the rehabilitation of state-owned enterprises suggested listing Camair-Co for privatization. In 2020, President Paul Biya directed the creation of a restructuring plan that aimed to revive the airline and sell a 51% stake to a strategic private investor. The state-run enterprises rehabilitation commission (Commission Technique de Réhabilitation des Entreprises du Secteur Public – CTR) highlighted the necessity of improving Camair-Co’s financial health and clearing its balance sheet before any divestment could occur.

As part of its strategy to mitigate its dire financial situation and maintain operational capabilities, Camair-Co is planning to wet-lease three Embraer jets to reinitiate regional flights to Cotonou Cadjehoun in Benin, and Pointe Noire and Brazzaville in Congo later this month. This move is part of a broader restructuring and revitalization plan that has been supported by the presidency since September 2020.