The IMF completed reviews of Cameroon’s ECF, EFF, and RSF, approving about USD 73.5 million and USD 45.9 million respectively. Despite ongoing economic recovery, growth is sluggish, necessitating actions to raise non-oil revenues and tackle governance issues. The IMF highlighted the importance of fiscal discipline and strategic reforms for sustainable growth.
The International Monetary Fund (IMF) Executive Board has officially concluded the seventh reviews of Cameroon’s Extended Credit Facility (ECF) and Extended Fund Facility (EFF) programs. This approval facilitates a disbursement of approximately USD 73.5 million, thereby increasing the total disbursements under these arrangements to USD 718.1 million. Additionally, the Board finished the second review of the Resilience and Sustainability Facility (RSF), which allocates around USD 45.9 million to support climate change initiatives in Cameroon.
Although Cameroon’s economic recovery is ongoing, growth rates remain modest. To promote robust medium-term growth, there is an urgent need for enhanced actions focused on mobilizing non-oil revenues, addressing vulnerabilities within the financial sector, and improving governance along with anti-corruption efforts. The ECF and EFF arrangements, originally established in July 2021 for a total of SDR 483 million, have been extended for an additional 12 months, permitting ongoing policy implementation and access to augmented resources of SDR 110.4 million.
During the Executive Board’s discussions, Mr. Nigel Clarke, Deputy Managing Director and Acting Chair, emphasized the importance of continued efforts to support macroeconomic stability, advance necessary reforms, and fulfill the climate agenda. Specifically, he noted, “The authorities have made a commendable effort in maintaining a fiscal path in line with program objectives,” and urged for the strengthening of non-oil revenue mobilization and public financial management. He further acknowledged the positive actions taken to solidify the financial sector and enhance bank recapitalization.
To foster inclusive growth, it is vital for Cameroon to strengthen governance reforms and enhance the anti-money laundering framework to eliminate its current standing on the Financial Action Task Force’s grey list. Moreover, the country requires strategic advances in oil refinery restructuring and electricity sector reforms to minimize liabilities and improve public services. Mr. Clarke additionally affirmed that maintaining reform momentum, particularly in climate policies, is crucial to building resilience against climate shocks and attracting further investments.
The article additionally presents economic forecasts for Cameroon from 2023 to 2029. Projections indicate that GDP growth will gradually increase from 3.2% in 2023 to 4.6% by 2029, while non-oil GDP reflects a steady upward trend. However, the fiscal outlook remains cautious with high debt distress risks; yet, there is confidence in the sustainability of the debt under current management. The Indonesian framework for achieving fiscal sustainability and growth is outlined within these figures, necessitating commitment and strategic efforts from the authorities to ensure positive economic outcomes going forward.
In conclusion, the IMF’s recent reviews signify a critical period for Cameroon as it navigates its economic recovery amidst subdued growth. The country is urged to enhance non-oil revenue mobilization, address governance and anti-corruption challenges, and advance its climate agenda. The path ahead requires sustained fiscal discipline, financial sector strengthening, and strategic reforms to secure macroeconomic stability and foster inclusive growth. Continuous commitment to these objectives will be essential for realizing the medium-term growth potential of Cameroon.
Original Source: www.miragenews.com
