Financial economist Dr. Marc Onana Ombé, CEO of the Credit and Strategy Firm in Douala, shares his analysis of diaspora bonds, a new fundraising instrument for Cameroon to transform the savings of its diaspora into a development lever.
Interview conducted by Bernard BANGDA
What are the main advantages for Cameroon in creating a diaspora bond compared to conventional loans?
A diaspora bond has a major advantage in its low recovery cost compared to traditional international financial markets. Indeed, since its implementation by China in 1930, diaspora bonds have reduced debt costs related to low interest rates and the patriotic momentum that this mode of financing carries. It is a stable financing compared to international market financing. Its stability is linked to the fact that this type of financing is less subject to market volatility.
Another advantage is the economic sovereignty that this type of financing transmits compared to public development aid that makes countries dependent. In addition to these economic elements, there is also the strengthening of the bond between the State and the diaspora.
What financial potential could it mobilize given the current transfers from the Cameroonian diaspora?
The Cameroonian population abroad represents 15 to 18% of the total population of Cameroon, about 4 to 6 million people. The reasons for leaving the country are known: 43% for job search and 39% for studies. This means that 43% of this population abroad work or have an income. These statistics help understand the flow of funds from transfers, which amounted to 652 billion CFA francs in 2024. This figure shows that the residual consumption of the diaspora is immense and can be captured if transparency and investment security mechanisms reassure.
What governance and transparency mechanisms would be essential to secure the investment?
Communication is the cornerstone of investment security. Good communication during and after the fundraising reassures the diaspora. Communication should focus on fund allocations. Rigorous monitoring and the establishment of an independent project monitoring committee, including members of the diaspora, are crucial.
How could a diaspora bond influence the profile and sustainability of public debt?
A diaspora bond is an alternative financing to international markets. It replaces costly external financing. These obligations reduce the cost of public debt service.
Furthermore, the borrowing currency is usually the local currency. In other words, they are often denominated in the national currency, limiting exchange rate risk. The country is therefore less exposed to exchange rate variability.
Directing funding towards strategic projects is an advantage. Allocating funds to profitable projects (agriculture, housing, infrastructure) ensures value creation and repayment, strengthening the long-term sustainability of public debt.
What productive projects should be prioritized?
This financing method is used to fund development projects such as infrastructure, equipment, housing, and agriculture. Agriculture should be a top priority, especially through the launch of a project “Cameroon, leading rice producer.” The transformation of cocoa and the financing of the first large-scale technological university should be projects impacting our economic structure. The construction of social housing projects mentioned by the diaspora would be welcome.
