State Bond Issuance : Everyone Can Partake!

As officials of the Ministry of Finance brace up to once again get to the money market, this time around to raise FCFA 450 billion for the financing of development projects included in the Finance Law of the Republic of Cameroon for the 2023 financial year, one surmountable challenge would be broadening the customer base so as to get as many people as possible subscribe to the State bonds and reap the benefits the money market offers. This, against a backdrop of reticence and or ignorance on the innovative approach of financing the economy. 
Those piloting the State bonds issuance procedure in the country have disclosed that most of those who are actually holding the public securities are limited in number. Available statistics show that out of a population of about 55 million people within CEMAC, barely 8,500 investors do subscribe to bonds issued by different countries. According to the Director General of Treasury, Financial and Monetary Cooperation at Cameroon’s Ministry of Finance, Sylvester Moh Tangongho, “This number is insignificant and we want to inform the public that they can participate in bond issuance of the State.” A novel approach indeed!
This explains why the Ministry of Finance angled the presentation ceremony of the State financing plan for the 2023 fiscal year in Douala on February 16, 2023 on “broadening the investor base and optimizing the secondary market for public securities.” To say the least, the need to open up the State securities market to all is imperative. The myth that it is only for finance institutions and people with hefty wallets should be cleared. Anyone can subscribe and the advantages it offers know no bounds. Stakeholders even qualify the procedure as one of the lucrative forms of investments which at the same time gives the investor a sense of belonging in the progress of his/her country through the projects developed with the money.
For instance, individuals can get involved by passing through their banks given that government doesn’t treat directly with the public. “When you go through your bankers and you indicate your willingness to subscribe, the bank will take all the dispositions for you to subscribe and benefit from it,” Mr. Moh Sylvester Tangongho underlined in Douala. He said the main advantage of getting domestic financing is the fact that it is done in FCFA. “So, we don’t have risks of fluctuating exchange rate whereas when you borrow from foreign partners and international organisations and you have them in dollars, once the foreign currencies fluctuate, your debt will also be fluctuating. We advise those in the informal sector to try and get to the formal so as to benefit from the advantages the money market offers. When you keep money at home, out of the normal circuit, your credibility cannot be measured,&...