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Cameroon Auditor Urges Halt to Camair-Co's \$128 Million Loan for New Aircraft Purchase Cameroon Auditor Urges Halt to Camair-Co's \$128 Million Loan for New Aircraft Purchase

Cameroon's national airline is once again at the centre of a heated debate about its future, as the country's Chamber of Accounts (Chambre des comptes) has recommended suspending a proposed bank loan of 128 million US dollars intended to expand the fleet of Camair-Co. The recommendation comes at a moment when two banks have already tabled financing proposals, but growing concerns about the airline's fragile financial condition have prompted auditors to hit the brakes. For African travel professionals monitoring the evolution of the continent's national carriers, the development highlights the difficult balance many governments face between ambition and financial reality.

According to the Chamber's findings, Camair-Co remains in a position of negative equity, meaning its liabilities currently exceed its assets. This precarious situation raises serious red flags about the airline's ability to service a large new loan without placing further strain on public finances. Auditors have therefore urged caution, warning that taking on additional debt in the current environment could deepen the airline's financial troubles rather than solve them.

The concerns are far from theoretical. Camair-Co has been navigating turbulent skies for several years, weighed down by mounting debt and a recurring dependence on state support. Reports have shown that the carrier's total debt burden has climbed to around 124 billion Central African francs, roughly 203.7 million US dollars, making it one of the most indebted state-owned enterprises in Cameroon. Such a heavy financial load naturally raises questions about the wisdom of adding fresh borrowing to an already stretched balance sheet.

Adding to the picture of financial strain, an earlier presidential intervention of 15 billion FCFA released in 2020 did not deliver the intended turnaround. Nearly 14 billion FCFA was consumed simply to bring three aircraft back into service, and the remaining funds proved insufficient to complete repairs on two other planes. This history of costly restoration efforts underscores just how expensive it is to sustain Camair-Co's operations, even before considering new fleet expansion.

Operational challenges have also continued to mount. Recent reports indicate that two Camair-Co aircraft have been grounded in Ethiopia, generating ongoing costs for the Cameroonian state despite not being in service. Situations like these highlight the complex realities of running an airline in Africa, where maintenance, repairs and fleet management can quickly become a heavy financial burden if not carefully managed.

The airline's difficulties have reached such a point that the company's statutory auditor has previously sounded the alarm about the possibility of a total halt to operations, or even dissolution, if urgent measures are not taken This warning was serious enough to prompt the Board Chairman, who also serves as Cameroon's Minister of Transport, to formally request the Director General to outline concrete steps to prevent such an outcome.

Against this backdrop, Cameroon's leadership has already signalled a shift in direction. President Paul Biya has instructed the government to prepare a restructuring, relaunch and development plan that would open 51 per cent of Camair-Co's capital to a strategic private partner, in line with the airline's founding decree. This move towards privatisation reflects a growing recognition that fresh capital, private-sector expertise and stronger governance may be essential to placing the carrier on a sustainable footing.

For African aviation observers, the Camair-Co story offers important lessons. National airlines remain powerful symbols of sovereignty and connectivity, but they also require sound financial management, disciplined fleet planning and clear commercial strategy to succeed. As other African carriers navigate their own growth journeys, the debate around Camair-Co's proposed loan serves as a reminder that responsible expansion must be built on solid financial foundations, not just ambitious dreams. Travel trade professionals across the continent will be watching closely to see how Cameroon steers its flag carrier through this critical crossroads in the months ahead.