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IMF Approves 72 Billion FCFA for Cameroon after 6th Economic Review

The International Monetary Fund IMF Has approved, on the one hand, the 6th review of Cameroon ‘s Economic and Financial Program 2021-2024 supported by the Extended Credit Facility (ECF) and the Extended Credit Mechanism (EFF) of the fund and, on the other hand, the first review of the agreement supported by the Resilience and Sustainability Facility (RSF) of the same institution.

According to Louis Paul Motaze, Minister of Finance, the achievement of this “major” milestone demonstrates “the efforts made by the government to strengthen the country’s macroeconomic stability, promote sustainable and inclusive economic growth, while taking into account the constraints related to climate change.” The IMF Executive Board also approved disbursements to Cameroon of SDR 89.7 million, or approximately FCFA 72 billion, bringing to nearly FCFA 421 billion the total budgetary support received from Cameroon by the IMF since 2021, the year of approval of the Economic and Financial Program.

“The government reaffirms its commitment to continue structural reforms, under the coordination of the Prime Minister in order to address the challenges facing the country, in an international context marked by geopolitical tensions and the tightening of financial conditions. The objective is to continue working towards consolidating macroeconomic achievements, improving the business climate, promoting economic diversification and combating poverty,” emphasizes Louis Paul Motaze.

Speaking precisely about improving the business climate, the IMF made a point of making some proposals. “With a view to improving the business climate and stimulating inclusive growth driven by the private sector, it is essential to implement governance reforms, address corruption risks and strengthen the system for combating money laundering and the financing of terrorism,” suggests Kenji Okamura, Deputy Managing Director of the IMF and Acting Chairman of the Executive Board.

At the end of its Executive Board meeting, the IMF said that Cameroon’s overall economic growth is estimated at 3.3%, slightly lower than expected due to external and internal factors, including disruptions to supply chains and energy supplies and a decline in oil production . According to the IMF, growth is expected to recover to 3.9% in 2024 and remain above 4% in the medium term. “The Cameroonian economy is growing despite a difficult domestic and external environment. Although downside risks continue to predominate, the country’s medium-term outlook is favorable,” added Kenji Okamura. As for inflation, it moderated to 5.9% at the end of 2023. It is expected to continue to decline to reach 5.5% by the end of 2024.