An International Monetary Fund (IMF) team, led by Ms. Cemile Sancak, visited Yaoundé from October 3-16 to discuss Cameroon's economic reforms and policy priorities. The discussions focused on the seventh reviews of the Extended Credit Facility (ECF) and Extended Fund Facility (EFF), as well as the second review of the Resilience and Sustainability Facility (RSF). The ECF/EFF arrangements were initially approved in July 2021 for SDR 483 million (US$ 689.5 million), with a 12-month extension granted in December 2023, increasing access by SDR 110.4 million (US$ 147.6 million). The RSF was approved in January 2024 for SDR 138 million (US$ 183.4 million).
Ms. Sancak stated, "The IMF and the Cameroonian authorities have reached staff-level agreement on the seventh reviews of the ECF/EFF arrangements, as well as the second review of the RSF arrangement." This agreement awaits approval by the IMF Executive Board and could lead to disbursements under both arrangements.
Cameroon's economy grew by 3.2 percent in 2023, with an expected increase to 3.9 percent in 2024. Inflation decreased to a twelve-month average of 4.6 percent in November 2024 from last year's 7.5 percent.
The fiscal outlook for Cameroon is positive, with a target non-oil primary deficit of two percent of GDP for 2024, improving from previous years' figures. Non-oil revenues rose by five percent during the first half of 2024 due to strong corporate and indirect tax performance.
"Prospects are broadly positive provided continued reform implementation and benign external conditions," said Ms. Sancak, noting that growth is forecasted at about four percent in 2024.
The Cameroonian Parliament adopted the budget for 2025 in December, aligning it with objectives set under its IMF-supported program while focusing on productive investment and anticorruption reforms.
Despite delays in structural reforms, Ms. Sancak emphasized completing measures related to governance in extractive industries, business climate improvements, state-owned enterprise reform, and public financial management.
Under the RSF, Cameroon is working on improving its climate policy framework with assistance from the IMF and other partners.
The IMF team met with key officials including Prime Minister Joseph Dion Ngute and Finance Minister Louis Paul Motaze, among others.