- The IMF Executive Board concluded today the seventh reviews under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements, allowing for a disbursement equivalent to about US$ 73.5 million.
- The IMF Executive Board also concluded the second review under the Resilience and Sustainability Facility (RSF) arrangement, making available about US$ 45.9 million in support of Cameroon's climate change agenda.
- Cameroon's economic recovery has continued, but growth remains subdued. To enhance medium-term growth, bolder action is needed to mobilize non-oil revenues, mitigate financial sector vulnerabilities, and address governance and anti-corruption weaknesses.
Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded today the seventh reviews under Cameroon's Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements. The completion of the ECF-EFF reviews allows for an immediate disbursement of SDR 55.2 million (about US$ 73.5 million), bringing total disbursements under the arrangements to SDR 538.2 million (US$ 718.1 million). The Executive Board also completed the second review under the Resilience and Sustainability Facility (RSF) arrangement. Completion of this review makes available SDR 34.5 million (US$ 45.9 million), with disbursements to date totaling SDR 69.0 million (US$91.3 million).
Cameroon's three-year ECF-EFF arrangements were originally approved by the IMF Executive Board for a total amount of SDR 483 million (US$ 689.5 million, or 175 percent of quota) in July 2021. An extension of these arrangements of 12 months was approved in December 2023 to allow more time to implement the policies and reforms, and access was augmented by SDR 110.4 million (US$ 145.4 million, or 40 percent of quota). The 18-month RSF was approved by the Executive Board in January 2024 in the amount of SDR 138 million (US$ 181.7 million, or 50 percent of quota).
Following the Executive Board's discussion on Cameroon, Mr. Nigel Clarke, Deputy Managing Director and Acting Chair, made the following statement:
"Cameroon's economic recovery has continued, but growth remains subdued. The medium-term outlook remains broadly positive while the balance of risks is tilted to the downside. Program performance was broadly satisfactory, and the ECF-EFF and RSF arrangements continue to support the authorities' efforts to maintain macroeconomic stability, implement priority reforms, and advance the climate agenda to promote sustainable growth.
"The authorities have made a commendable effort in maintaining a fiscal path in line with program objectives. Strengthening domestic non-oil revenue mobilization and public financial management remains key to preserving progress achieved under the program. Continued efforts to limit spending through exceptional procedures are essential to maintaining budget discipline and integrity. Advancing reforms of the public enterprises and the energy sector will be critical for Cameroon's fiscal sustainability and macroeconomic resilience.
"The authorities' efforts to strengthen the financial sector soundness and advance bank recapitalization are welcome. Reducing structural vulnerabilities requires deepening the domestic financial market and working closely with regional financial institutions.
"Stepping up governance reforms and strengthening the anti-money laundering and combatting the financing of terrorism (AML/CFT) regime will be needed to promote inclusive and private sector-led growth, exit from the Financial Action Task Force's (FATF) 'grey' list, and lift the suspension from the Extractive Industries Transparency Initiative (EITI).
"Cameroon remains at high risk of debt distress, but its debt is sustainable. It is important to advance the restructuring of the oil refinery and implement reforms in the electricity sector and in other state-owned enterprises to limit contingent liabilities and improve the quality of public services.
"Cameroon has made good progress under the RSF. It is essential to maintain the reform momentum and strengthen the institutional framework for climate policies to build resilience to climate shocks and catalyze new investments from donors and the private sector."
Table 1. Cameroon: Selected Economic and Financial Indicators, 2023-29
(CFAF billion, unless otherwise indicated)
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
2029 |
|||||||
Est. |
6th Rev. |
Proj. |
6th Rev. |
Proj. |
Proj. |
Proj. |
Proj. |
Proj. |
|||||
(Annual percentage change, unless otherwise indicated) |
|||||||||||||
National account and prices |
|||||||||||||
GDP at constant prices |
3.2 |
3.9 |
3.9 |
4.2 |
4.0 |
4.1 |
4.4 |
4.6 |
4.6 |
||||
Oil GDP at constant prices |
-2.1 |
-7.8 |
-2.7 |
-3.4 |
-7.7 |
-1.4 |
5.5 |
8.2 |
5.6 |
||||
Non-Oil GDP at constant prices |
3.4 |
4.1 |
4.0 |
4.4 |
4.2 |
4.2 |
4.4 |
4.6 |
4.6 |
||||
GDP deflator |
4.7 |
3.8 |
3.4 |
3.5 |
3.2 |
2.6 |
2.2 |
2.2 |
2.2 |
||||
Consumer prices (average) |
7.4 |
5.9 |
4.5 |
5.5 |
3.5 |
3.0 |
2.8 |
2.6 |
2.5 |
||||
Consumer prices (eop) |
5.9 |
5.5 |
5.0 |
5.2 |
3.4 |
2.9 |
2.6 |
2.4 |
2.0 |
||||
Money and credit |
|||||||||||||
Broad money (M2) |
2.9 |
9.3 |
8.8 |
7.6 |
7.0 |
6.5 |
6.2 |
6.4 |
6.9 |
||||
Net foreign assets 1/ |
-6.9 |
10.7 |
4.6 |
4.2 |
7.8 |
-1.1 |
-1.0 |
-0.7 |
-0.4 |
||||
Net domestic assets 1/ |
9.8 |
-1.3 |
4.2 |
3.4 |
-0.8 |
7.6 |
7.2 |
7.0 |
7.3 |
||||
Domestic credit to the private sector |
19.0 |
9.5 |
9.5 |
7.7 |
7.7 |
7.4 |
7.2 |
7.2 |
7.3 |
||||
(Percent of GDP, unless otherwise indicated) |
|||||||||||||
Savings and investments |
|||||||||||||
Gross national savings |
15.4 |
17.5 |
17.2 |
17.6 |
18.3 |
18.4 |
19.3 |
19.8 |
20.3 |
||||
Gross domestic investment |
19.5 |
19.8 |
20.6 |
20.2 |
21.1 |
22.3 |
22.9 |
23.2 |
23.5 |
||||
Public investment |
3.9 |
5.4 |
5.4 |
6.0 |
6.0 |
6.9 |
7.4 |
7.7 |
8.2 |
||||
Private investment |
15.6 |
14.4 |
15.2 |
14.1 |
15.0 |
15.4 |
15.5 |
15.6 |
15.3 |
||||
Central government operations |
|||||||||||||
Total revenue (including grants) |
16.5 |
16.5 |
15.9 |
15.6 |
15.9 |
15.4 |
15.5 |
15.6 |
15.8 |
||||
Oil revenue |
2.9 |
2.6 |
2.4 |
1.6 |
2.1 |
1.6 |
1.6 |
1.5 |
1.6 |
||||
Non-oil revenue |
13.1 |
13.6 |
13.2 |
13.8 |
13.5 |
13.7 |
13.8 |
14.0 |
14.2 |
||||
Non-oil revenue (percent of non-oil GDP) |
13.6 |
14.1 |
13.7 |
14.2 |
13.8 |
14.0 |
14.1 |
14.3 |
14.5 |
||||
Total expenditure |
17.1 |
16.9 |
16.5 |
16.3 |
16.1 |
16.5 |
16.6 |
16.7 |
17.0 |
||||
Overall fiscal balance (payment order basis) |
|||||||||||||
Excluding grants |
-1.1 |
-0.7 |
-0.9 |
-0.8 |
-0.6 |
-1.3 |
-1.2 |
-1.2 |
-1.2 |
||||
Including grants |
-0.6 |
-0.4 |
-0.6 |
-0.6 |
-0.3 |
-1.1 |
-1.1 |
-1.1 |
-1.1 |
||||
Overall fiscal balance (cash basis) |
|||||||||||||
Excluding grants |
-0.9 |
-2.5 |
-2.6 |
-1.4 |
-1.2 |
-1.7 |
-1.5 |
-1.2 |
-1.2 |
||||
Including grants |
-0.5 |
-2.1 |
-2.3 |
-1.1 |
-0.9 |
-1.6 |
-1.4 |
-1.1 |
-1.1 |
||||
Non-oil primary balance (payment order basis) |
-2.5 |
-2.0 |
-2.0 |
-1.3 |
-1.3 |
-1.6 |
-1.6 |
-1.6 |
-1.7 |
||||
Non-oil primary balance (payment order basis, percent of non-oil GDP) |
-2.6 |
-2.0 |
-2.0 |
-1.3 |
-1.4 |
-1.6 |
-1.6 |
-1.6 |
-1.7 |
||||
External sector |
|||||||||||||
Trade balance |
-2.8 |
-1.7 |
-2.2 |
-1.9 |
-1.6 |
-2.6 |
-2.5 |
-2.4 |
-2.2 |
||||
Oil exports |
5.4 |
4.6 |
4.6 |
4.2 |
4.3 |
3.4 |
3.1 |
3.1 |
3.1 |
||||
Non-oil exports |
7.5 |
8.9 |
8.5 |
8.4 |
8.7 |
8.3 |
8.4 |
8.3 |
8.3 |
||||
Imports |
15.7 |
15.2 |
15.3 |
14.4 |
14.6 |
14.4 |
14.0 |
13.8 |
13.6 |
||||
Current account balance |
|||||||||||||
Excluding official grants |
-4.4 |
-2.6 |
-3.6 |
-2.8 |
-3.0 |
-4.0 |
-3.8 |
-3.6 |
-3.3 |
||||
Including official grants |
-4.1 |
-2.3 |
-3.4 |
-2.5 |
-2.8 |
-3.8 |
-3.6 |
-3.4 |
-3.2 |
||||
Terms of trade |
8.8 |
12.2 |
11.7 |
-4.9 |
2.7 |
-16.7 |
-4.9 |
1.5 |
1.0 |
||||
Public debt |
|||||||||||||
Stock of public debt |
43.2 |
42.0 |
42.0 |
39.5 |
39.4 |
37.9 |
36.5 |
35.0 |
33.7 |
||||
Of which: external debt |
28.2 |
29.9 |
28.7 |
29.0 |
29.9 |
28.7 |
27.5 |
26.3 |
25.2 |
||||
Memorandum items: |
|||||||||||||
Nominal GDP (at market prices, CFAF billions) |
29,891 |
31,267 |
32,099 |
33,746 |
34,452 |
36,791 |
39,264 |
42,004 |
44,922 |
||||
Oil |
1,184 |
1,082 |
1,130 |
982 |
919 |
882 |
917 |
986 |
1,039 |
||||
Non-Oil |
28,708 |
30,184 |
30,969 |
32,764 |
33,533 |
35,909 |
38,347 |
41,018 |
43,882 |
||||
Sources: Country authorities; and IMF staff estimates and projections. |
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1/ Percent of broad money at the beginning of the period. |
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