The IMF Executive Board has completed major reviews of Cameroon’s financial programs, enabling disbursements totaling approximately US$119.4 million. While recovery is ongoing, growth remains subdued, necessitating bold actions to enhance non-oil revenues and governance. Key areas for improvement include public sector reforms and climate resilience.
The International Monetary Fund (IMF) Executive Board has recently completed its seventh reviews under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements for Cameroon. This decision enables an immediate disbursement of approximately US$73.5 million. Additionally, the second review under the Resilience and Sustainability Facility (RSF) arrangement has been finalized, allowing for US$45.9 million to support Cameroon’s climate change initiatives.
Despite ongoing economic recovery, Cameroon’s growth remains sluggish, necessitating targeted actions to enhance medium-term growth. Key efforts should focus on mobilizing non-oil revenues, mitigating vulnerabilities within the financial sector, and addressing governance and anti-corruption challenges. Immediate actions are required to strengthen these areas to ensure sustainable economic improvement.
The ECF and EFF arrangements, initially approved in July 2021, totaled SDR 483 million (about US$689.5 million). An extension of these arrangements was sanctioned in December 2023, providing additional time for policy and reform implementation, with a further augmentation of SDR 110.4 million. This extension is vital for strengthening macroeconomic stability amidst ongoing structural challenges.
Following the Board’s discussions, Mr. Nigel Clarke, Deputy Managing Director and Acting Chair, noted that while Cameroon’s economic recovery persists, growth remains inadequate. He highlighted the necessity of maintaining fiscal discipline, advancing reforms within public enterprises, and enhancing the energy sector’s sustainability to ensure macroeconomic resilience.
Progress has been acknowledged in strengthening the financial sector and addressing vulnerabilities. However, continuous governance reforms and enhancements to the anti-money laundering and counter-terrorism financing frameworks are crucial for fostering inclusive, private sector-led growth and addressing risks associated with the Financial Action Task Force’s listing.
Cameroon is currently at high risk of debt distress; however, its debt levels are considered sustainable. Advancing oil refinery restructurings and improving the quality of public services through state-owned enterprise reforms will mitigate contingent liabilities. Sustained reform efforts, particularly in climate-related governance, are critical to attracting new investments and building resilience against climate shocks.
In conclusion, the IMF’s recent reviews of Cameroon’s financial programs reflect a commitment to supporting the nation’s economic recovery while highlighting existing challenges. Key focus areas include fiscal discipline, governance reforms, and climate resilience initiatives. Continued collaboration between the Cameroonian authorities and the IMF is essential for sustaining economic progress and addressing vulnerabilities within various sectors.
Original Source: www.miragenews.com
