The IMF has completed the seventh reviews of Cameroon’s ECF and EFF, leading to a disbursement of about US$ 73.5 million, alongside US$ 45.9 million under the RSF for climate initiatives. Despite economic recovery, lower growth rates present challenges, requiring focused efforts on revenue mobilization and governance reforms, with the outlook remaining cautiously optimistic.
The International Monetary Fund (IMF) Executive Board has finalized the seventh reviews of Cameroon’s Extended Credit Facility (ECF) and Extended Fund Facility (EFF), resulting in a disbursement of approximately US$ 73.5 million. Additionally, the second review of the Resilience and Sustainability Facility (RSF) was completed, which releases around US$ 45.9 million to support Cameroon’s climate initiatives. Despite a continued economic recovery, growth remains modest, necessitating robust measures to enhance non-oil revenue, reduce financial vulnerabilities, and tackle governance issues.
The recent approvals allow for immediate disbursements totaling SDR 55.2 million (about US$ 73.5 million) under the ECF-EFF arrangements. This brings total disbursements to SDR 538.2 million (US$ 718.1 million). Under the RSF, the completion of the second review makes SDR 34.5 million (US$ 45.9 million) available, accumulating to SDR 69.0 million (US$ 91.3 million) in disbursements.
Originally approved in July 2021, Cameroon’s three-year ECF-EFF arrangements were for a total of SDR 483 million (US$ 689.5 million). An extension of twelve months was granted in December 2023 to implement necessary reforms, augmented by SDR 110.4 million (US$ 145.4 million). The RSF was introduced in January 2024 for SDR 138 million (US$ 181.7 million).
Deputy Managing Director and Acting Chair Mr. Nigel Clarke remarked that although Cameroon’s economic recovery is ongoing, the growth outlook remains subdued and is at risk. He noted that program performance has been satisfactory and emphasized the importance of strengthening non-oil revenue mobilization and public financial management to maintain fiscal integrity. The authorities’ continuous efforts to responsibly manage spending while advancing public enterprise and energy sector reforms are critical for economic resilience.
Furthermore, initiatives aimed at enhancing financial sector stability and bank capitalization are recognized as vital. To improve governance and effectively combat money laundering and terrorism financing, governance reforms are paramount. Cameroon’s high risk of debt distress is acknowledged; however, the sustainability of its debt is affirmed. Moving forward, it is crucial to advance restructuring plans for the oil refinery and implement necessary reforms across state-owned enterprises.
Cameroon has made significant progress under the RSF. Maintaining the momentum of reforms is essential for fortifying the institutional framework related to climate policies, thus improving resilience to climate-related shocks and attracting investments from both donors and the private sector.
A detailed overview of economic indicators for Cameroon from 2023 to 2029 shows projected GDP growth rates fluctuating from 3.2% in 2023 to 4.6% by 2029, with essential variables such as consumer prices and public debt assessed, depicting a relatively stable economic trajectory amid necessary reforms.
The IMF’s recent reviews affirm the progress made in Cameroon’s financial and economic recovery. Although challenges persist in achieving substantial growth and enhancing fiscal management, the commitment to implementing vital reforms remains crucial. With ongoing support from the IMF and an emphasis on governance improvements, the outlook presents opportunities for sustainable development and resilience against economic vulnerabilities.
Original Source: www.miragenews.com
