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.
