IMF Concludes Reviews of Cameroon’s Financial Programs, Provides Significant Funding

The IMF has completed reviews of Cameroon’s ECF and EFF programs, securing a US$ 73.5 million disbursement. Additionally, US$ 45.9 million will support climate initiatives under the RSF. While economic recovery persists, growth is limited, necessitating enhanced non-oil revenue strategies and governance reforms. The outlook remains cautiously optimistic as reforms are critical for maintaining fiscal stability.

The International Monetary Fund (IMF) Executive Board has completed the seventh reviews of Cameroon’s Extended Credit Facility (ECF) and Extended Fund Facility (EFF), which will lead to a disbursement of approximately US$ 73.5 million. Additionally, the board has finalized the second review under the Resilience and Sustainability Facility (RSF), making available about US$ 45.9 million for climate change initiatives in Cameroon.

Following the ECF-EFF reviews, the total disbursement has reached SDR 538.2 million (around US$ 718.1 million) since the original approval in July 2021 for a total of SDR 483 million (US$ 689.5 million). The RSF, approved in January 2024, amounts to SDR 138 million (US$ 181.7 million), ensuring continued support for Cameroon’s sustainable development efforts.

Despite ongoing economic recovery, Cameroon’s growth remains tepid, necessitating more robust strategies to enhance non-oil revenue collection, mitigate financial vulnerabilities, and strengthen governance frameworks. Acknowledging program performance as satisfactory, the IMF highlights the importance of advancing fiscal discipline through judicious spending and improving public financial management to maintain macroeconomic stability.

Mr. Nigel Clarke, Deputy Managing Director and Acting Chair, emphasized the need for ongoing governance reforms and discussed measures to exit the Financial Action Task Force’s ‘grey’ list. He also pointed out that while Cameroon’s debt remains manageable, continuous capacity-building in fiscal sustainability and macroeconomic resilience is critical to improving the quality of public services.

The IMF’s outlook for Cameroon remains generally positive, underscoring the importance of reform momentum in climate policies and the necessity of engaging domestic and international investors. Lastly, detailed projections of Cameroon’s economic indicators reflect a path toward gradual improvement across sectors, particularly in managing public debt and fostering growth in both oil and non-oil GDP sectors.

The IMF’s recent review of Cameroon’s financial programs indicates a commitment to supporting the country’s economic recovery and climate resilience. Continued efforts to enhance governance, fiscal management, and economic diversification are crucial for sustainable growth and macroeconomic stability. The funding disbursements, alongside necessary reforms, are expected to bolster Cameroon’s recovery while simultaneously addressing climate challenges.

Original Source: www.miragenews.com