Karachi, The International Monetary Fund (IMF) Executive Board completed the Fifth Reviews under Cameroon’s Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements, leading to significant financial disbursements and an extension of the program.
According to International Monetary Fund, the completion of the Fifth Reviews allows for an immediate disbursement of approximately US$ 73.8 million to Cameroon. This development is part of the three-year blended arrangements under the ECF and EFF, initiated on July 29, 2021, to support Cameroon’s economic and financial reform program. To date, these arrangements have led to total disbursements of around US$ 571.9 million.
The IMF Board also concluded the 2023 Article IV consultation, acknowledging Cameroon’s resilient economic recovery despite external challenges. The country’s Real GDP growth reached 3.6 percent in 2022 and is expected to accelerate to around 4 percent in 2023, with inflation projected to decelerate. The overall fiscal deficit is anticipated to improve, reflecting efforts in non-oil revenue mobilization and ongoing recovery. The positive medium-term outlook hinges on continued reform progress and a more supportive external environment.
During the discussions, focus was placed on policies to enhance growth potential, achieve structural transformation, and address macro-critical climate challenges. Emphasis was on investing in human capital and infrastructure, strengthening institutions, and enhancing market flexibility. Mainstreaming the climate agenda in national frameworks and advancing climate change mitigation and adaptation measures were identified as key to achieving more inclusive growth and resilience.
Mr. Kenji Okamura, Deputy Managing Director and Acting Chair of the Executive Board, commented on Cameroon’s resilience amidst external and domestic challenges. He highlighted the mixed performance under the program, noting progress in governance, public financial management, and revenue administration. Okamura emphasized the necessity of continued reform implementation, fiscal consolidation, and structural reforms to unlock Cameroon’s growth potential. He also underscored the importance of strengthening governance, transparency, and the anti-corruption framework.
The IMF’s approval of a 12-month extension of the ECF and EFF arrangements, along with an augmentation of access, is expected to provide Cameroon with additional time and resources to implement policies and reforms in light of the external shocks since the start of the program in 2021.