## _cr06260 - EXECUTIVE SUMMARY ## Source details **Canonical URL:** [_cr06260 - EXECUTIVE SUMMARY](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06260.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06260.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06260.pdf.json) --- ### Overview and programme implementation - In 2005, implementation of the PRSP was marked by satisfactory performances under the staff-monitored programme (SMP) and approval and implementation of the three-year economic and financial programme under the Poverty Reduction and Growth Facility (PRGF) for the 2005-2008 period. ### PRSP monitoring and institutional/statistical arrangements - PRSP monitoring rests on a government steering and control mechanism comprising: - (i) the institutional mechanism; - (ii) the statistical mechanism, which led to partial establishment of administrative bodies of the National Institute of Statistics, conduct of the third population and health survey, survey on employment and the informal sector, third population and housing census; - (iii) the participatory monitoring mechanism with recruitment of an international consultancy group to prepare the related methodology. - Institutional arrangements: - Inter-ministerial Committee chaired by the secretary general of the Prime Minister’s office. - Technical committee for monitoring and evaluation under the minister of Planning, Development Programming and Regional Development. - Technical Secretariat: central coordination unit and five thematic groups (governance, infrastructure, social, production, indicators and macro-economic framework). - Provincial committees chaired by provincial governors producing quarterly reports. - Statistical mechanism outputs and actions: - Mechanism approved by the National Institute of Statistics in July 2005. - Concrete implementations: PHS III (including HIV/AIDS screening); use of CAVIE data for urban poverty profiling; national employment and informal sector survey results; GPHC III conducted 11 November to 11 December 2005. - Publication of final national accounts 1993-2003 and interim national accounts 2004-2005 (93 SCN). - Design of National Institute of Statistics Web site (www.statistics.cameroon.org). ### Macroeconomic and budgetary framework - Growth and sectoral performance: - Cameroon’s economy growth rate: 2.6 per cent in 2005, as against 3.7 per cent in 2004. - Primary sector growth: 3 per cent (agricultural products 3.9 per cent; forestry and logging -3.7 per cent). - Secondary sector growth: -1.3 percent (Agro-food industries -3.8 per cent; manufacturing industries 3.2 per cent). - Tertiary sector growth: 4.6 per cent (trade, restaurant and hotel business 5.1 per cent; transport, warehousing and communication 5.8 per cent; APU non commercial services 2.1 percent). - Domestic demand and consumption: - Final private consumption: 69.7 per cent of GDP in 2005, as against 71.4 per cent in 2004. - Prices and purchasing power: - Consumer price trend: roughly 2 percent in 2005, as against 0.3 percent in 2004. - Factors reducing purchasing power: increase in energy prices and excise taxes on tobacco, soft drinks, natural juice and beer. - Monetary developments (exact figures): - Money supply: up from CFAF 1434.8 to 1521.6 thousand million between 2004 and 2005 (6 percent rate). - Net foreign assets: increased from CFAF 312.9 thousand million to CFAF 478.6 thousand million (52.9 percent rate). - Operations account: up from CFAF 365.8 to 464.2 thousand million (28.9 per cent increase rate). - Domestic loans: down from CFAF 1237.5 thousand million to CFAF 1167.9 thousand million (growth rate -5.6 per cent). - Net claims on the public sector: down from CFAF 474.7 thousand million to CFAF 349.9 thousand million (decrease 26.3 per cent). - Net claims on the private sector: up from CFAF 751.1 thousand million to CFAF 811.6 thousand million (increase 8.1 per cent). - Long-term loans: have accounted for 3 per cent of domestic loans since 1998. - Observation: domestic loans consist mainly of short-term loans (short-term loans dominate at 97 percent). - External sector and trade (exact figures): - Total revenue collected: CFAF 1555 thousand million in 2005, as against CFAF 1279 thousand million in 2004 (21.6 percent growth rate noted elsewhere). - Oil revenue: up from CFAF 325 to 439.2 thousand million (increase 35.1 per cent). - Non-oil revenue: up from CFAF 942 to 1104 thousand million (increase 17.2 per cent). - Expenditures: CFAF 1278 thousand million in 2005, as against CFAF 1335 thousand million in 2004 (downward trend; referenced as 4.3 per cent decrease each year). - Budgetary surpluses used to settle the National Debt. - Overall trade balance: deficit of CFAF 48.2 thousand million in 2005 after CFAF 108.3 thousand million in 2004. - Trade balance excluding oil: deficit of CFAF 248.9 thousand million in 2005, as against CFAF 406 thousand million in 2004. - Export revenue: CFAF 1475.9 thousand million in 2005 (CFAF 814.8 thousand million non-oil exports), as against CFAF 1256.8 thousand million in 2004 (CFAF 764.4 thousand million non-oil exports). - Import expenditure: CFAF 1524.2 thousand million in 2005 (CFAF 1099.8 thousand million non-oil imports), as against CFAF 1365.1 thousand million in 2004 (CFAF 1170.5 thousand million non-oil imports). - Non-oil exports growth: -6.8 per cent; non-oil imports growth: -7.2 percent. - Crude oil exports growth: 10.7 percent. - ACP/EU partnership impact (Box): - Application as from 2008 might lead to a decrease of Cameroon’s economic growth (-3 percent) given profit loss to the State’s treasury estimated between CFAF 260 thousand million and CFAF 290 thousand million from cancellation of import duties. ### Public finance, poverty-reduction expenditure and HIPC - Poverty-reduction expenditure: - Total poverty-reduction expenditure (2005): more than CFAF 620 thousand million. - Distribution of poverty-reduction expenditure in 2005 (percent of credits): - Education, training and research: 42 percent. - Infrastructure: 20 percent. - Health: 12 percent. - General and financial administration: 14 percent. - Manufacturing and trade: 7 percent. - Others: 5 percent. - Execution level of credits committed: 80.9 per cent in 2005, as against 79.8 per cent in 2004. - Payment orders: 76.6 per cent of the allocation (as against 75.1 per cent in 2004). - Payment orders as percent of credits committed: 94.8 per cent in 2005 (as against 94.11 per cent in 2004). - HIPC funds and use: - 2005 commitments represented 86.4 per cent of the overall HIPC package; only 63 per cent were ordered. - Until 2004, the rate of commitments of HIPC credits barely reached 70 per cent. - Government actions: Head of State signed ordinance to increase initial CFAF 73 000 million HIPC package by CFAF 100 000 million; memorandum of understanding for financing civil society projects under HIPC funds; action plan to implement 2004 HIPC expenditure audit recommendations adopted in 2005. ### Sectoral strategies, MTEFs, and capacity building - MTEFs prepared or updated for: MINTP, MINSANTE, MINESEC, MINEDUB, MINADER, MINEPIA, MINFOF, MINEP; the central MTEF was also prepared. - Sector strategy design, updating, and adoption in: building and public works, rural sector, social sector, telecommunications and ICTs, tourism and education. - MINPLAPDAT guidance and constraints: - Recommendations: respect methodology, use participatory approach, include all partners on Steering Committees. - Constraints: insufficient steering committee presence, insufficient funds for strategy design, high personnel mobility, need for methodological guide appropriation. ### Rural sector, agriculture and community development (selected outputs and figures) - Technological transfer and capacity-building: - 16 partnership conventions and sub-contracts of extension activities signed with: 2 NGOs, 4 farmers’ professional associations, and 10 rural radios. - 13,317 farmer associations assisted; 13,877 basic farmer organisations had access to research results; 15,900 farmer groups assisted in agricultural consultancy. - Fisheries and fish-farming: - Post-catch losses decreased from 35 to 20 per cent. - Average pond surface area increased from 850 to 1323 m² per farmer organisation (55.6 per cent). - Average output increased from 0.66 kg/m² to 0.80 kg/m² (21.2 percent). - Interim fish-breeding station: 8 ponds with surface area of 1000m²; 14,800 young fishes produced and distributed under PDEP in the South-West province. - Fertilizer revolving fund: - Fund worth CFAF 3.8 thousand million created in 2004 and 2005. - Input distribution and seed projects: - 17 projects on production of maize seeds financed in Adamawa through PARFAR. - PNAFM trained 258 seed multipliers in 7 Southern provinces. - IRAD provided one million sets to South-West and Littoral provinces; 10 million sets to be distributed launched. - 539,000 plants distributed to small holders for small-scale palm plantations. - 4.164 million plantain suckers distributed to establish 3,150 ha plantation. - Crop yields improvements (selected figures): - North and Adamawa provinces: average maize yield increased from 2500-3000 kg/ha to 4550 kg/ha. - Centre province: average maize yield increased from 3000 kg/ha to 3600 kg/ha. - Food crop yields national example (Paddy rice in North province): - 2003: 12 800 tons - 2004: 17 100 tons - 2005: 25 100 tons ### Financial intermediation and microfinance - Control requirements for micro-finance activities within the CEMAC sub-region applicable since 14 April 2005. - 232 MFIs approved by COBAC, with total loans granted of CFAF 25 thousand million. - MFIs governed by a specific special tax system and benefit from support to strengthen banking coverage. - Actions underway: creation of an agricultural bank; decentralisation of financial systems through PADC, decentralised Rural Credit Project, support to National Micro Finance Programme, collection of FIMAC loans. ### Industrial development, private sector measures and Douala Stock Exchange (DSX) - Continued privatisation processes and restructuring: SNEC, CAMTEL, CDC, CAMAIR; restructuring of CAMPOST; establishment of ANAFOR. - Private sector measures: - Creation of an ad hoc committee against fraud, smuggling, counterfeiting and illegal factories (Decree No 2005/528/PM of 15 February 2005). - Decree No 2005/1363/PM of 6 May 2005: modalities for anti-dumping and subsidised products Committee. - Control of stocks of largely consumed goods to control inflation. - Capacity-building of SMEs / SMIs and removal of impediments to private sector growth. - Douala Stock Exchange: - Quotations undertaken; DSX operational but start timid. - Measures: business plan drafting, promotional activities for enterprise listings, transfer of State real estate rights to DSX, introduction of a supplementary loan worth CFAF one thousand million, withdrawal of banks’ exclusive right as investment service suppliers. - Planned listings and bond issues in first semester 2006: SEMC, SAFACAM, SOSUCAM, Standard Chartered Bank enterprises; bonds for SOCAPALM, HEVECAM, AES SONEL. ### Basic infrastructure, transport and road network (selected figures) - Road Master Plan and sector strategy designed; MTEF presented and to be updated. - Road maintenance and rehabilitation: - Priority road network maintenance distance: 22,285 km. - Rehabilitated roads linear in 2005: 2,114 km (138 km tarred roads; 1,976 km earth roads). - Comparison rehabilitated distances: 307 km in 2003; 885 km in 2004; 2,114 km in 2005. - Tarring works (2004 and 2005): 482 km tarred shelf space (versus projected 254 km). - Total shelf space of roads rehabilitated during same period: 3,000 km (for a 4,140 km projection) — 72 per cent execution rate. - Wouri bridge rehabilitation: - Amount: CFAF 15.407 thousand million. - Overall execution rate: 62 per cent. - Ministry of Public Works budgetary allocations (2005): - Total allocations: CFAF 74.987 thousand million (down from CFAF 92.4 thousand million; an 18.85 per cent drop). - Road maintenance contracts: CFAF 40.400 thousand million (53.86 per cent of ministry’s total 2005 budget; against 37.4 per cent in 2004 representing CFAF 29.46 thousand million). - Road maintenance programming total execution rate: 75 per cent. ### Telecommunications and ICTs - Strategy on the development of telecommunications and ICTs finalised and validated in 2005; MTEF preparation next. - Community telecentres: - Deliveries: 10 buildings out of 16 planned delivered (7 in 2004, 3 in 2005); remaining centres to be delivered before end Q1 2006. - Some sixty youths trained as managers and operators. - Licences and operators: - Licences issued: 30 in 2003; 19 in 2004. - As at December 2005, about sixty operators providing Internet access and added-value services. - Internet infrastructure: six-node access point (POP) and 75 VSAT access points. - Internet user rate as at 31 December 2004: 0.16 per cent of the population. - International connectivity: - Optical fibre installed along Doba-Kribi pipeline. - Opening in Douala of SAT-3 land point of 2.5 Gbit/s capacity. - Retrocession to CAMTEL on 24 November 2005 of twelve optical fibres in Chad-Cameroon pipeline cable. - Fixed and mobile telephony: - Fixed density rose from 0.6% in 2003 to 0.7% in 2005. - Mobile lines: about one million additional lines in 2005, total about 3,300,000 lines and density of 12.3 percent in 2005 (as against 6.6 in 2003). - Cumulative active mobile subscribers: above two million. - Turn-over of sub-sector: CFAF 225 thousand million in 2003 up to CFAF 253 thousand million in 2004. ### Human resources, health, education and social sectors (selected outputs and figures) - Health: - MTEF updated; malaria and STIs/AIDS priorities. - 59,215 treated mosquito nets distributed to children below age 5. - More than 300 000 mosquito nets distributed in 2005 to pregnant women. - 2,173 community workers trained in 2005 (2,073 in 2004). - 59,750 pregnant women received periodic preventive treatment during antenatal consultations. - 37 million condoms distributed (2005). - 19 prevention and voluntary screening centres operational; 905 assistant workers recruited and 53,538 people screened. - 167 TB screening and treatment centres created nationwide. - EPI: five rounds of poliomyelitis vaccination in 2005; DTC3 coverage rate at 75 per cent (up from 65.4 per cent in 2004); measles coverage 65 per cent. - Education: - Education sector budget (MINEDUB, MINESEC, MINEFOP, MINESUP): dropped from CFAF 300.2 thousand million in 2004 to CFAF 264.1 thousand million in 2005. - HIPC funds in education: CFAF 16.66 thousand million. - Constructed/rehabilitated 3,768 primary school classrooms since strategy adoption; 574 classrooms and 51 secondary schools constructed/rehabilitated in 2005. - 1,700 contract teachers recruited in 2005. - 987 new graduates of Advanced Teachers’ Training Colleges absorbed into State payroll. - Performance indicators: secondary and primary education exam results recorded an 18-point average increase; female/male parity index at primary rose from 0.85 in 2003 to 0.9 in 2005; access to primary education: 96.4 per cent in 2004. - Employment and informal sector (EISS 2005): - Activity rate (age ≥10): 71.1 per cent. - ILO unemployment rate: 4.4 per cent overall; 10.7 per cent in urban areas; 1.7 per cent in rural areas. - Broader unemployment rate: 6.2 per cent overall. - Visible under-employment: 12.7 per cent of gainfully employed. - Invisible under-employment: 69.3 per cent (remuneration below guaranteed minimum working week equivalent of CFAF 23 500 per month for 40 hours). - Informal sector employment share: 90.4 per cent of gainfully employed population. ### Urban poverty, housing and living conditions (selected figures) - Urban poverty concentrated in Yaounde and Douala; urban poverty affects close to 2 million people. - Access to utilities (selected figures, exact series): - Safe drinking water: 1996: 44.2; 2001: 50.5; 2005: 56.5. - Electricity lighting system: 1996: 37.0; 2001: 46.1; 2005: 54.4. - Mobile telephone line: 2001: 7.6; 2005: 32.1. - Land telephone line: 1996: 1.7; 2001: 1.5. - Cooking gas: 1996: 7.9; 2001: 13.4; 2005: 16.2. - Housing ownership (percent): - Households owning their houses: 2001 urban 37.7, rural 76.6, Total 63.0; 2005 urban 36.0, rural 71.9, Total 59.2. - Consumer durables (selected %): - Television: 1996 17.3, 2001 18.7, 2005 28.2. - Radio: 1996 57.9, 2001 54.7, 2005 63.5. - Refrigerator: 1996 12.5, 2001 9.5, 2005 9.3. - Unemployment and under-employment statistics (repeat): - ILO unemployment rate 2005: 4.4 per cent overall; 10.7 per cent urban; 1.7 per cent rural. - Broad unemployment (EESI 2005): Yaounde 17.9 per cent; Douala 16.0 per cent. ### Public management, governance and anti-corruption - Public finance management and transparency actions: - Continued adjustment of public expenditure chain; public expenditure tracking survey produced a priority action matrix. - Publication of public contracts code (September 2005) and implementation circular (June 2005); bidders’ guide produced; audits of contracts awarded in 2003 and 2004 undertaken. - SIGEFI interfaces advanced; pending DPI/DB interface review after 8 December 2004 reorganisation to link MTEF, PIP and the Budget. - Improved wage bill management and payroll cleaning; about 3 000 presumed ghost workers identified (2003–2005) and sanctions applied. - Cameroon subscribed to the Extractive Industries Transparency Initiative (EITI); Monitoring and Implementation Committee’s technical secretariat established. - Rule of law and judiciary: - Priority action plan for reform of the Judiciary under execution; enactment of the code of criminal procedures. - Audit Bench operational; Constitutional Council to be operational. - Training for judiciary staff, court clerks and registrars. - Anti-corruption measures: - Ratification of UN conventions against corruption and money laundering. - Creation of National Financial Investigation Board (ANIF). - Reinforcement of inspectorates general and administrative procedures manuals in preparation. - Box: Main activities to improve institutional framework and governance (listed exactly as in source): - Publication of the public contracts code; - Rendering the Audit Bench operational; - Enactment of the law on the code of criminal procedures; - Regular publication of the treasury accounts balance; - Publication of a memo on the execution of the state budget; - Regular publication of information on production, the market prices of oil and the revenue deposited in the Treasury; - Periodic publication of information on the management of public corporations; - Publication of penalties levied on unscrupulous government workers; and - Rendering the National Financial Investigation Board (ANIF) operational. ### Decentralisation and local governance - Decentralisation orientation law and laws instituting rules applicable to regions and councils prepared, with implementation plan (2005-2009). - Financial sector plan of councils adopted. - Capacity-building measures for mayors and municipal staff; National Colloquium of mayors in 2004 and ongoing training sessions. - Special Council Support Fund (FEICOM) audited; restructuring plan being implemented. - Urban Governance Programme (PUG) drawn up and implemented in pilot councils. ### Beneficiaries’ assessments, constraints and recommendations - Beneficiary perceptions and recommendations: - Projects underway considered "very important" by beneficiaries; preference for infrastructure, government high schools and electrification projects. - Complaints: poor execution attributed to lack of professionalism by contractors and unscrupulous contractor selection. - Beneficiaries’ recommendations include improving project quality, pursuing social dialogue, improving governance and living conditions, promoting access to production means, and accelerating empowerment of local and regional authorities. - Major implementation constraints and proposed solutions: - Organisational: insufficient means and poor interpretation of participatory approach. - Technical: need for appropriation of 2005 revised methodological guide. - Budgetary: inadequate budget and difficulty mobilising budgeted amounts. - Institutional: absence of a standard framework for adopting and implementing sector strategies. - Government measures: development and use of MTEFs where strategies are lacking; review of budgeting circular provisions for possible application in 2007 budgeting process. - Recommendation: strengthen link between PRSP framework and budgeting process; introduce mechanism to assess MTEF and construct interface between frameworks and the budget to support achievement of the MDG. ### Major structural reforms, privatisation and sectoral measures - Privatisation and restructuring progress (selected SOEs): - CDC: privatisation scheme for banana, rubber and palm oil sectors adopted in October 2005 pending round table validation. - SNEC: privatisation plan and calendar adopted; CAMWATER established to manage infrastructure with private partner responsible for service delivery. - CAMTEL: privatisation strategy adopted in 2005; interim action plan implementation ongoing. - CAMAIR: interim manager appointed in February 2005; privatisation strategy and action plan adopted. - CAMPOST: interim manager appointed; restructuring measures and social plan developed; recruitment of experts underway. - SAC III forestry reforms: - Current valid forest titles and allocations: - 43 definitive forest exploitation concessions - 33 provisional logging concessions - 37 sales of standing volume - 107 valid community forests under exploitation - 25 Forest Management Units (FMUs) allocated in the presence of an independent observer - Quarterly publication of valid titles continued; enforcement and follow-up summons underway for exploitation permits of companies: CFE, AVEICO and SN-COCAM. ### Regional integration and transport facilitation (CEMAC/CEEAC) - Compliance with almost all convergence criteria. - Budgetary policy achievements 2005: - Basic budgetary balance positive: CFAF 341.6 thousand million (i.e. 3.9 per cent of 2005 estimated GDP). - Inflation rate: 1.5 per cent (below community standard 3 per cent). - National debt stock-GDP ratio: 53 per cent (below community standard 70 per cent). - Treasury had no payment arrears for 2005; both domestic and foreign debt servicing hitch-free. - Trade facilitation and infrastructure: - Single processing window for foreign trade (GUCE) in final phase; memorandum of understanding on information exchange between Douala Port Authority (PAD) and GUCE. - Measures to reduce port transit times and police checkpoints along corridors; agreements to facilitate flow of goods for land-locked CEMAC countries to/from Douala port. - Road infrastructure and regional connectivity: inauguration of Ntem Bridge; completion of Ngaoundere-Touboro-Moundou road and Makabaye Bridge; works underway on Wouri bridge rehabilitation and studies for a new bridge. ### Main constraints observed and envisaged actions (summary) - Productive sector constraints: - Difficult access to factors of production (loans, appropriate farm tools, land). - Insufficiency and inappropriateness of microfinance institutions. - High energy and agricultural input costs. - Infrastructure constraints: - Delays in contract execution due to lack of contractor professionalism. - Cash-related problems faced by bidders. - Social and governance constraints: - Insufficient means in social sector and laxity in application of public contract regulations. - Conflicts between central and decentralized management of projects. - Poor mastery by local stakeholders of HIPC funds management manual. - Envisaged responses: - Strengthen MTEF drafting and integration into budget process. - Concentrate HIPC resources on nationwide projects where appropriate. - Maintain HIPC special account at BEAC and strengthen auditing and monitoring (auditing arrears during first half 2006; reinforce practical monitoring of project execution; implement 2004 audit recommendations). - Continue privatisation and restructuring of major public corporations, while managing social costs. *Source: _cr06260 - EXECUTIVE SUMMARY (Content unit: _cr06260) — translated from French* ### EXECUTIVE SUMMARY ### _cr06260 - EXECUTIVE SUMMARY ### Overview and programme implementation - In 2005, implementation of the PRSP was marked by satisfactory performances under the staff-monitored programme (SMP), approval and implementation of the three-year economic and financial programme under the Poverty Reduction and Growth Facility (PRGF) for the 2005-2008 period. ### PRSP monitoring and institutional/statistical arrangements - PRSP monitoring rests on a government steering and control mechanism comprising: - (i) the institutional mechanism; - (ii) the statistical mechanism, which led to the partial establishment of administrative bodies of the National Institute of Statistics, conduct of the third population and health survey, survey on employment and the informal sector, third population and housing census; - (iii) the participatory monitoring mechanism with recruitment of an international consultancy group to prepare the related methodology. ### Macroeconomic and budgetary framework - Growth and sectoral performance: - Cameroon’s economy growth rate in 2005 was estimated at 2.6 percent, as against 3.7 percent in 2004. - The secondary sector decreased by 1.3 percent in 2005. - Household consumption and prices: - Concomitant decrease in the final GDP consumption weight following price hikes that undermined the purchasing power of households. ### Monetary developments - Monetary supply increased by 6 percent in 2005, with an increase in net foreign assets. - Domestic credit trends: - Overall decrease in domestic credits conceals an increase in domestic credits to the private sector. - Short-term loans continue to dominate at 97 percent. ### Public finance - Revenue and expenditure: - Revenue stood at CFAF 1555 thousand million in 2005, as against CFAF 1279 thousand million in 2004, representing a 21.6 percent growth rate. - Expenditure was 1278 thousand million in 2005, as against 1335 thousand million in 2004 (downward trend). - Poverty-reduction expenditure: - More than CFAF 620 thousand million allocated to priority sectors such as education, health and basic infrastructure. - Drivers of revenue growth: - Increase in oil and non-oil revenue accounts for the revenue growth. ### External sector - The external sector experienced a deficit in the balance of trade due to: - Stagnation in exports, excluding oil; - Adverse trends in world prices of related products. ### Major structural and policy achievements - Macro-stability and debt relief: - Satisfactory implementation of the SMP and signing of a new three-year PRGF arrangement for July 2005 to June 2008. - Better use of debt-relief resources, increased pace of HIPC funds use, and signing of a memorandum of understanding for financing civil society projects under HIPC funds. - Public corporations and reforms: - Continued privatisation processes including SNEC, CAMTEL, CDC, CAMAIR; restructuring of CAMPOST; establishment of ANAFOR. - Interim reception of the electronic single processing window for foreign trade (GUCE) as part of port reforms. ### Sector strategies, MTEFs, and sectoral capacity building - Sector strategy design, updating, and adoption in: building and public works, rural sector, social sector, telecommunications and ICTs, tourism and education. - Preparation/adoption of: - A national Energy Action Plan for Poverty Reduction; work on the long-term energy development plan. - MTEFs prepared or updated for MINTP, MINSANTE, MINESEC, MINEDUB, MINADER, MINEPIA, MINFOF, MINEP. - The central MTEF was also prepared. ### Rural sector and agriculture - Technology transfer and research increased for rural areas. - Private sector capacity-building in agricultural systems: maize, cassava, palm oil, plantain, pineapple, cocoa and coffee. - New programmes/projects launched in rice, onion, garlic, root crops and tubers. - Environmentally friendly plant protection policy to protect produce quality. - Community development programmes: - Community-Driven Development Programme (PNDP) in 33 councils in four provinces. - Community Development Support Programme (PADC) in two provinces. - Ongoing preparation of the forestry and environment sector-based programme and the Rural Water Supply Master Plan. ### Financial intermediation and microfinance - Douala Stock Exchange quotations undertaken. - Micro-Finance Institutions (MFIs): - Control requirements for micro-finance activities within the CEMAC sub-region applicable since 14 April 2005. - National Micro Finance Committee (NMFC) proposed guidelines for relations with commercial banks. - 232 MFIs approved by the regional banking commission (COBAC), with a total of CFAF 25 thousand million loans granted. - MFIs governed by a specific special tax system and benefit from support to strengthen banking coverage. - Actions underway: - Creation of an agricultural bank; - Decentralisation of financial systems through PADC, decentralised Rural Credit Project, support to the National Micro Finance Programme, collection of FIMAC loans, budget allocations within the Development of Livestock and Fisheries (South-West), Poverty Reduction and Pro-Women Actions (Far-North). ### Industrial development - Government actions include: - Specific actions for growth-potential systems: agro-industry, energy, forestry/timber, textile/cotton, bauxite/alumina/aluminium, technological development. - Study on “the potential of sub-contracting for the establishment of a sub-contracting exchange and preparation for an industrial companion planting operation in Cameroon”. - Creation of a sub-regional centre for training in agricultural automation within CENEEMA. ### Private sector development measures - Actions included: - Creation of an ad hoc committee against fraud, smuggling, counterfeiting, and illegal factories targeting dumping and smuggling in textile, cement, flour and sugar sectors. - Control of stocks of largely consumed goods to control inflation. - Execution of major infrastructural projects to support industry. - Capacity-building of SMEs / SMIs and removal of impediments to private sector growth. - Directives to launch a programme for rehabilitation of companies to implement ACP-EU agreements. - Establishing the Regulation and Competitiveness Board under the Investment Charter. - Capacity-building of farmer associations, human resources development, governance improvement, and boosting investment in energy, infrastructure, tourism and ICTs. ### Basic infrastructure and transport - Buildings and Public Works sector strategy and MTEF designed. - Road Master Plan study validated to support medium- and long-term programming. - Road maintenance and rehabilitation: - Priority road network maintenance programmed over a linear of 22,285 km. - Rehabilitated roads linear in 2005: 2114 km (double the total for 2003 and 2004 combined). - Rehabilitation works on the Wouri Bridge continued. - Tarring of the priority road network: linear of 482 km for 2004 and 2005. ### Telecommunications and ICTs - Government focused on: - Designing the telecommunications and ICT development strategy. - Continuing construction of multi-purpose pilot community telecentres. - Rendering operational the Special Fund for Telecommunications. - Introducing administrative structures of the National Information and Communication Technologies Board (ANTIC). - Improving Cameroon’s international connection. - Implementing CAMTEL’s Minimum Investment Programme (MIP). - Establishing a cryptology and certification system. ### Human resources, energy, mining and environment - Human resource management and energy: - Improvement in electricity supply, continuation of the energy sector development plan, preparation of the Energy Action Plan for Poverty Reduction, validation of the sector study on water. - Mining: - Identification of priority mining handicraft sites, awarding of ten licences for mine research and one licence for mine exploitation. - Continuation of the fight against geological and industrial risks and disasters. - Environmental management: - Capacity-building, popularisation of the biosecurity act, implementation of the biological diversity plan of action. ### Foreign trade and export diversification - Actions include: - Drawing up a strategy to support diversification of export base by identifying and promoting high export potential products and new buoyant markets. - Promoting and boosting foreign trade through a stronger policy for foreign market opportunities. ### Regional integration (CEMAC) - Government measures and compliance: - Compliance with almost all the convergence criteria. - Application of the new rules governing monetary and financial affairs. - Facilitating trade exchange and establishing a priority road network linking borders. - Capacity-building of sub-regional training institutions. - Adopting a strategic framework and plan of action against AIDS. ### Health sector - Health strategy implementation and MTEF updated. - Disease control priorities: - Emphasis on malaria prevention as the major endemic disease and top cause of morbidity and mortality among vulnerable groups. - Intensified awareness campaigns for risk groups in the fight against STIs / AIDS. - Rehabilitation and construction of Tuberculosis control screening and treatment centres (CDT). - Expanded Programme on Immunization (EPI) aimed at sustainable immunisation system and epidemiology surveillance. - A national health programme for reproductive health drawn up. - National policy paper on nutrition validated. ### Education - Education strategy implementation: - Construction and rehabilitation of 3768 classrooms since adoption of the strategy. - Recruitment of 1700 probationary teachers. - Absorption into the public service of 987 graduates of the Advanced Teachers’ Training School (ENS). - Adjustment of the state payroll. ### Employment and informal sector - Employment policy and survey: - Designing a policy for promotion of employment and vocational training is ongoing. - Main report on the employment and informal sector survey (EISS) available. - National Employment Fund continues actions on socio-vocational integration of young people in paid jobs and self-employed activities. - Labour market diagnosis from 2005 EISS: - Major problem identified as under-employment, not unemployment. - The informal sector is the main job provider but jobs are precarious and do not generate sufficient income to improve living conditions. ### Urban poverty and housing - Urban poverty alleviation actions: - Preparing an interim urban development strategy paper. - Continuing drafting of the national housing policy. - Signing partnerships between the government, CTD and secondary urban centres. - Enacting the law on town planning in Cameroon. - Updating the Development and Town Planning Master Scheme (DTPMS) and Local Master Plans (LMP) for Yaounde, Ngaoundere and Limbe. - Rehabilitating basic infrastructure and sanitation of primary drainage networks. - Preparing an operational plan for alleviating poverty and conducting consultation meetings to prevent urban delinquency. - Housing and household conveniences: - Access to housing (rate of owners of the houses they live in) has decreased due to rapid urban growth. - Major building projects have increased but installation of household conveniences is decreasing due to recurrent charges to households. ### Public management, governance and anti-corruption - Public finance management and transparency: - Continued adjustment of the public expenditure chain, including a survey to track public expenditure and measure beneficiary satisfaction in education and health, archiving information on public finance management, reforming the public contract system and cleaning the payroll. - Cameroon subscribed to the Extractive Industries Transparency Initiative (EITI). - Numerous audit operations in administrative services and corporate bodies conducted. - Rule of law and security: - Priority action plan for reform of the Judiciary under execution. - Enactment of the code of criminal procedures. - Capacity-building for judiciary staff, court clerks and registrars. - Audit Bench set to work; Constitutional Council will soon be operational. - Passing of four bills to authorize the President to ratify international conventions in March 2004. - NPG phase II paper and the 2006 priority plan of action prepared and adopted. - Anti-corruption measures: - Ratification of the United Nations Conventions against corruption and money laundering. - Creation of the National Financial Investigation Board (ANIF). - Reinforcement of inspectorates general duties; creation of sub-departments for reception, mail and liaison. - Preparation of administrative procedures manuals and user’s guide, application of penalties and increased awareness campaigns. ### Decentralisation and local governance - Decentralisation process actions: - Decentralisation orientation law and laws instituting rules applicable to regions and councils prepared, with an implementation plan (2005-2009). - Financial sector plan of councils adopted. - Capacity-building measures for mayors and municipal staff; training session for municipal staff underway. - Audit conducted for the Special Council Support Fund (FEICOM); plan of action to restructure FEICOM being implemented. - Urban governance programme (PUG) drawn up. ### Poverty assessment and living conditions - Growth-poverty relationship: - Given dependence between the growth rate and poverty trends, economic growth did not have a significant impact on the reduction of income poverty over the past years. - Rural incomes: - In rural areas, income trends closely linked to agricultural commodity trends, food supply and product prices. - Stabilized or reduced income for cotton, cocoa and coffee farmers; increased income for palm oil and foodstuff producers. - Household living conditions and utilities: - Assessment based on the employment and informal sector survey (EISS) 2005 by NIS. - Access to safe water, electricity and gas has been increasing since 1996, but sustained efforts needed in new plants and maintenance to reach the government goal of a 71 percent access rate. - Access to land telephone lines at a standstill; access to mobile telephone increasing. - Household equipment improved for 1996-2005 except for gas cooker, refrigerator and deep-freezer. - Urban poverty specifics: - Urban poverty mainly in Yaounde and Douala where income poverty increased, basic needs not satisfied, and insecurity and delinquency are rampant, particularly among under aged children. - Poor urban households live in precarious houses in risky and unhealthy areas and engage in informal activities. - Unemployment and under-employment statistics: - Unemployment rate following ILO standards in 2005: 4.4 percent overall; 10.7 percent in urban areas; 1.7 percent in rural areas. - Broad unemployment rate estimated by the 2005 EISS: 17.9 percent in Yaounde and 16.0 percent in Douala. *Translated from French — EXECUTIVE SUMMARY (Content unit: _cr06260 - EXECUTIVE SUMMARY)* ### 33. Assessment by the beneficiaries: The various assessments by project beneficiaries ### 33. Assessment by the beneficiaries: The various assessments by project beneficiaries ### Beneficiaries' assessments and recommendations - Projects underway in localities are considered "very important" for local development by beneficiaries. - Preference given to infrastructure projects, construction of government high schools and electrification projects. - Poor execution of identified projects is attributed to: - lack of professionalism by contractors, and - unscrupulous selection of contractors in awarding, monitoring and accepting works. - Beneficiaries' recommendations: - improve the quality of projects; - pursue social dialogue; - improve governance and the living conditions of the population; - promote the population’s access to production means; - accelerate the empowerment process of local and regional authorities. ### Difficulties in PRSP implementation and proposed solutions - Major achievements since implementation in April 2003: - more coherence in government action; and - introduction in administrative management of strategic programming and planning tools to ensure more efficiency and effectiveness in the use of human, material and financial resources. - Constraints that hamper implementation and reduce impact include: - organisational level: insufficient means and poor interpretation of the participatory approach leading to failure to include all partners; - technical level: need for all actors to appropriate the 2005 revised methodological guide; - budgetary level: budget is inadequate and it is difficult to mobilise the budgeted amount; - institutional framework: absence of a standard framework for adopting and implementing sector strategies. - Government responses and measures: - development of MTEFs in sectors where sector-based strategies were not available (work begun in 2005 and to be extended as strategies are designed); - measures for official use of MTEF in the budgeting process, with new provisions of the circular relating to the budgeting process being reviewed for possible application in the 2007 budgeting process. - Strengthening the link between the PRSP framework and the budgeting process and introducing a mechanism to assess MTEF with construction of an interface between these frameworks and the budget is recommended to support achievement of the MDG. ### Use of debt-relief and public-sector reforms - HIPC funds: - could have a positive impact on growth if earmarked for nationwide projects; - Cameroon plans to strengthen the mechanism for distributing and using HIPC funds and executing projects. - Current mechanism to be maintained: debt-relief resources deposited in a HIPC special account at BEAC and used in conformity with fixed procedures. - Despite high social costs, the government is determined to continue restructuring and privatisation of public corporations. ### Production, infrastructure, transport and regional integration issues and measures - Production sector constraints and corrective measures: - develop communication infrastructure; - increase power supply with competitive prices; - improve the judicial system and streamline procedures; - accelerate takeoff of bodies established under the Investment Charter and prepare sector-based codes; - draw up a programme on rehabilitation of corporations and revitalize private investment. - Transport infrastructure sector priorities: - improve and extend the road network; - reinforce performance of the building industrial sector; - reform the Road Fund to extend it to rehabilitation works; - continue restructuring of MATGENIE. - Regional integration difficulties: - delays in implementing agreements and decisions by governing bodies of regional institutions; - recommendation: effective free movement of persons and goods with abolition of entry visas for all CEMAC nationals, with no restriction as to reciprocity, to help create a regional labour market. ### Institutional framework, governance and priorities for 2006 (budgetary allocations preserved exactly) - Governance measures will be outcome based as identified by the National Programme on Governance phase II (NPG phase II), notably continuing the anti-corruption drive and establishing the Constitutional Council. - 2006 planned budgetary increases: - increase by 13.5 per cent the budget allocated to MINJUSTICE to promote an environment conducive to business and good governance; - in productive infrastructure, the budget will be increased by 25.5 per cent, 12.5 per cent and 3.3 per cent for MINTP, MINPOSTEL and MINEE respectively; - social expenditure increases: health recording an 11 per cent increase, secondary education 6.2 per cent, and primary education 9.4 respectively; - to boost the private sector: promote development of SMEs with a 270 per cent increase in the budget allocated to MINPMEESA; - MINIMIDT’s budget will be increased by 88 per cent; - to promote development of natural resources in an environmentally sustainable manner, increase budgets allocated to MINEP and MINFOF by 251 per cent and 5.2 per cent respectively. - Reflection on revision of the PRSP is aimed at reinforcing the growth strategy and producing a second generation PRSP to launch harmonisation and public development aid alignment, ensuring greater mobilisation of foreign aid through intensive use of budgetary aid. ### Monitoring and evaluation mechanism for PRSP implementation - The monitoring and evaluation mechanism uses three main tools: - (i) the institutional steering framework, - (ii) the statistical mechanism, and - (iii) the participatory monitoring mechanism. - These tools are supplemented by capacity-building activities for administrative services and sector-based ministries. #### Institutional mechanism (coordination and technical support) - Structures established or reinforced: - inter-ministerial Committee for the supervision of PRSP implementation chaired by the secretary general of the Prime Minister’s office; - technical committee for monitoring and evaluation of PRSP activities under the minister of Planning, Development Programming and Regional Development, chaired by that ministry’s secretary general. Composition includes government officials, public institution representatives (NPG, NIS), consular chambers, private sector, local authorities, religious associations, NGOs, donors and funding bodies. - Outputs to date: - several quarterly reports on internal monitoring and two progress reports; - updates of some PRSP components, including sources of growth and the economic framework. - Technical Secretariat comprises a central coordination unit and five thematic groups: governance, infrastructure, social, production, indicators and macro-economic framework. - Provincial committees: - chaired by the provincial governor, moderated by provincial delegate of MINPLAPDAT, include provincial finance controller, representative of civil society (vice-chairman), representative of the NIS, the private sector, NGOs, religious organisations and associations; - produce quarterly reports used in national reports. #### Monitoring and evaluation statistical mechanism - Continuation of the Minimum Statistical Programme (MSP) in the PRSP with goal to build national statistical capacity and a structured information system to produce relevant indicators to: - (i) monitor mobilisation and use of resources; - (ii) assess level of physical execution of projects and programmes; and - (iii) measure results achieved and impact on living conditions and poverty reduction. - Key outputs and actions: - mechanism approved by the National Institute of Statistics in July 2005 and submitted to government for implementation with development partner support; - future actions include designing a national statistical development strategy (NSDS) and MTEFs. - Concrete implementations: - third population and health survey (PHS III) including HIV/AIDS screening component; - use of CAVIE survey data in Yaounde and Douala for urban poverty profiling and the Programme on Urban Governance (PUG); - national employment and informal sector survey (survey 1-2) results to update employment promotion strategy and improve national accounting; - continuation of third general population and housing census (GPHC III) which took place from 11 November to 11 December 2005. - Other statistical actions: - publication of final national accounts, 1993-2003 series and interim national accounts 2004-2005 series (93 SCN); - regular publication of household final consumer prices to evaluate inflation trends; - updating 2003 school and health mapping and 2005 vaccination coverage survey; - continuation of International Comparison Programme (ICP) for PPP availability; - intensifying dissemination of statistical information with design of the National Institute of Statistics Web site (www.statistics.cameroon.org). #### Public expenditure tracking, bookkeeping and audit capacity - A public expenditure tracking survey was conducted to measure beneficiary satisfaction in education and health; a priority action matrix was produced, adopted and submitted to government. - Implemented measures include accountability of vote holders required to report to beneficiary populations on planned investments and produce a budget execution report at least once the financial year ends. - Bookkeeping initiated on management of public funds to build a financial and accounting library for use by the Audit Bench. - Appointment of director general and deputy director general of NIS expected to give new impetus to National Statistical Information System activities. ### Participatory monitoring mechanism and reviews - Goals: develop appropriation of poverty reduction strategies, improve transparency and accountability, improve quality service delivery, and ensure supervision of PRSP monitoring and the future National Development Plan. - Participatory evaluation reviews were ordered in March 2004 and July 2005 and conducted nationwide to appraise quality of achievements by beneficiaries. - Review methodology: - based on preliminary reports from provincial committees and working sessions in four sector-based committees: production, infrastructure, social and governance; - aims to confirm execution levels, evaluate quality and relevance to poverty reduction, and propose corrective measures. - Methodology development: - Canadian SOFEG consultancy group recruited in December 2005 (work resumed 5 January 2006) to formulate a formal participatory monitoring methodology; interim report expected in March 2006, followed by an enlarged seminar and final report for government validation. - Reflection on institutional framework for collecting actors’ viewpoints considers bodies already involved (CTSE-DSRP, development committees, CCS/PPTE and PNDP). CTSE review missions suspended pending approval of the new methodology and likely to resume thereafter. *Translated from French; content as presented in the source document.* ### 1.3 IMPLEMENTATION CONTEXT ### _cr06260 - 1.3 IMPLEMENTATION CONTEXT ### Implementation context and programme execution - PRSP executed amid: - continuity in implementation of measures forming the basis for disbursement of the third structural adjustment facility (SAF III) granted by the International Development Agency; and - execution of the second 2000-2003 economic and financial programme backed by the IMF under the poverty reduction and growth facility programme, which was not satisfactory following slippages observed during the fourth review. - Government executed a staff-monitored programme from January to June 2005 to achieve the MDG; IMF executive board considered the performances satisfactory, leading to approval of the third year economic and financial programme (2005-2008). ### Macroeconomic and budgetary framework — Macroeconomic situation - Growth and sectoral performance: - overall growth: 2.6 per cent in 2005, as against 3.7 per cent in 2004. - primary sector growth: 3 per cent (agricultural products 3.9 per cent; forestry and logging -3.7 per cent). - secondary sector growth: -1.3 percent (Agro-food industries -3.8 per cent; manufacturing industries 3.2 per cent). - tertiary sector growth: 4.6 per cent (trade, restaurant and hotel business 5.1 per cent; transport, warehousing and communication 5.8 per cent; APU non commercial services 2.1 percent). - Domestic demand and consumption: - final private consumption: 69.7 per cent of GDP in 2005, as against 71.4 per cent in 2004. - Prices and purchasing power: - consumer price trend: roughly 2 percent in 2005, as against 0.3 percent in 2004. - factors reducing purchasing power: increase in energy prices and excise taxes on tobacco, soft drinks, natural juice and beer. - Money and banking: - money supply: up from CFAF 1434.8 to 1521.6 thousand million between 2004 and 2005 (6 percent rate). - net foreign assets: increased from CFAF 312.9 thousand million to CFAF 478.6 thousand million (52.9 percent rate). - operations account: up from CFAF 365.8 to 464.2 thousand million (28.9 per cent increase rate). - domestic loans: present a -5.6 per cent growth rate; down from CFAF 1237.5 thousand million to CFAF 1167.9 thousand million. - net claims on the public sector: decreased by 26.3 per cent, down from CFAF 474.7 thousand million to CFAF 349.9 thousand million. - net claims on the private sector: increased by 8.1 per cent, up from CFAF 751.1 thousand million to CFAF 811.6 thousand million. - long-term loans: have accounted for 3 per cent of domestic loans since 1998. - observation: banking sector does not finance sustainable growth; domestic loans consist mainly of short-term loans (such as overdrafts). - Public finance and trade: - total revenue collected: CFAF 1555 thousand million in 2005, as against CFAF 1279 thousand million in 2004. - oil revenue: increased by 35.1 per cent; up from CFAF 325 to 439.2 thousand million from 2004 to 2005. - non-oil revenue: increased by 17.2 per cent; up from CFAF 942 to 1104 thousand million. - expenditures: CFAF 1278 thousand million in 2005, as against CFAF 1335 thousand million in 2004 (representing a 4.3 per cent decrease each year). - budgetary surpluses used to settle the National Debt. - trade balance: - overall trade balance: deficit of CFAF 48.2 thousand million in 2005 after CFAF 108.3 thousand million in 2004. - trade balance excluding oil: deficit of CFAF 248.9 thousand million in 2005, as against 406 thousand million in 2004. - export and import levels: - export revenue: CFAF 1475.9 thousand million in 2005 (CFAF 814.8 thousand million non-oil exports), as against CFAF 1256.8 thousand million in 2004 (CFAF 764.4 thousand million non-oil exports). - import expenditure: CFAF 1524.2 thousand million in 2005 (CFAF 1099.8 thousand million non-oil imports), as against CFAF 1365.1 thousand million in 2004 (CFAF 1170.5 thousand million non-oil imports). - non-oil exports growth: -6.8 per cent; non-oil imports growth: -7.2 percent. - crude oil exports growth: 10.7 percent. - import composition concerns: negative trends in quality and value for transport equipment, industrial equipment, household and capital goods; food imports, drinks and tobacco, primary imports are exceptions. - ACP/EU partnership agreements (Box): - application as from 2008 will affect sector-level competitiveness; sectors most affected: cereal, textile, clothing, agricultural produce, basic metallic products and metal works. - macroeconomic impact: application as from 2008 might lead to a decrease of Cameroon’s economic growth (-3 percent) given the profit loss of the State’s treasury that might stand between CFAF 260 thousand million and CFAF 290 thousand million as a result of a cancellation of import duties. - conditionality for benefit: Cameroon can benefit only after implementation of a programme on the rehabilitation of corporations for more competitiveness. ### Execution of poverty-reduction expenditure - Total poverty-reduction expenditure (2005): more than CFAF 620 thousand million (directly or indirectly earmarked). - Distribution of poverty-reduction expenditure in 2005 (percent of credits): - Education, training and research: 42 percent. - Infrastructure: 20 percent. - Health: 12 percent. - General and financial administration: 14 percent. - Manufacturing and trade: 7 percent. - Others: 5 percent. - Execution and absorption: - execution level of credits committed: 80.9 per cent in 2005, as against 79.8 per cent in 2004. - payment orders: 76.6 per cent of the allocation (as against 75.1 per cent in 2004). - payment orders as percent of credits committed: 94.8 per cent in 2005 (as against 94.11 per cent in 2004). - assessment: execution level of poverty-reduction expenditure did not change significantly between 2004 and 2005; closeness between commitments and payment orders indicates flow in the expenditure channel. - HIPC expenditure (2005): - 2005 commitments represented 86.4 per cent of the overall HIPC package; only 63 per cent were ordered. - until 2004, the rate of commitments of HIPC credits barely reached 70 per cent. - observation: acceleration in the use of HIPC credits in 2005; improvement should help reach 100 percent in future. ### Major achievements in strategy implementation — macroeconomic stability and public finance management - Growth: economic growth slipped from 3.7 per cent in 2004 to 2.6 percent in 2005 due mainly to slowdown in non oil activities. - Public finance improvements: - stepped up revenue and mastering expenditure led to satisfactory implementation of the IMF staff-monitored programme and approval of the new three-year arrangement under PRGF (July 2005 to June 2008). - HIPC-related actions: - Head of State signed an ordinance to increase the initial CFAF 73 000 million HIPC package by CFAF 100 000 million. - action plan to implement 2004 HIPC expenditure audit recommendations was adopted in 2005 and is under execution. - control missions initiated; shortcomings in contract execution punished; Prime Minister prescribed intensification of control missions on practical and financial execution of projects. - memorandum of understanding signed between government and group of civil society actors on financing mechanism and procedure for civil society projects under HIPC funds. - Public financial management systems: - SIGEFI: various cross-cutting interfaces between departments of MINFIB completed; automatic drafting of operating reports; pending DPI (MINEPAT) / DB (MINFIB) interface, reviewed after 8 December 2004 government reorganisation to link MTEF, PIP and the Budget. - Public investment programming: World Bank trust-fund project helped MINPLAPDAT and MINEFI technical team introduce mechanism for preparation of the global medium-term expenditure framework; allocations by budget head rest on three factors: (i) adapting sector/ministry to domestic growth and poverty reduction strategy, (ii) clarifying ministry action plans (quality strategies, programmes and projects), (iii) ensuring ministry efficiency in achieving set goals. - assistance enabled preparation/updating of MTEFs for MINTP, MINADER, MINEDUB, MINSANTE, MINESEC, MINFOF, MINEP and MINEPIA. - Privatisation and restructuring progress (selected SOEs): - CDC: legal firm submitted banana sector contract analysis (March 2005); privatisation scheme for banana, rubber and palm oil sectors adopted in October 2005 pending round table validation; terms of reference and shortlists for recruitment of investment bank available; invitations issued for socio-environmental and feasibility study experts for rural rubber and palm oil programme. - SNEC: expert recruited to revive privatisation; government adopted privatisation plan and calendar; public/private partnership terms laid down during Paris round table (December 2005); CAMWATER established to manage infrastructure with private partner responsible for service delivery. - CAMTEL: expert recruited; technical report submitted; inter-ministerial committee adopted privatisation strategy in 2005; interim action plan implementation on course; staff issues pending prior to invitation to submit expressions of interest. - CAMAIR: interim manager appointed in February 2005 to implement privatisation strategy; measures include recruitment of government adviser, cost reduction plan, adoption of detailed privatisation strategy and action plan with calendar. - CAMPOST: interim manager appointed; savings accounts audited to evaluate liabilities; social plan developed to reduce costs; team of experts recruited to assist restructuring; first invitation to submit expression of interest unsuccessful; second invitation launched. - Port sector reforms and trade facilitation: - final phase of creation of the single processing window for foreign trade (GUCE). - contract amendments identified needs for: (i) establishing a telecommunications network, (ii) contracting process of the GUCE, (iii) establishing information systems. - manual on GUCE procedure being prepared; draft instrument on e-commerce submitted to Prime Minister’s Office. - memorandum of understanding on information exchange on foreign trade signed between Douala Port Authority (PAD) and GUCE. ### Economic diversification — rural sector development - Agricultural research and support: - intensified research themes in plant and animal production and specific areas (peasant association, semi-urban agriculture, pesticide-effect plants, agricultural/forestry/pastoral management). - partial results available for a few projects: kola, cocoyam, tomato, fish, peasant associations and semi-urban agriculture. - delays in production of results attributed to difficulties mobilising funds needed to finance activities. *Translated from French; content as provided in the source PDF.* ### 99. Technological innovations were transferred through extension of research results and ### _cr06260 - 99. Technological innovations were transferred through extension of research results and ### Technological transfer and capacity-building - Technological innovations were transferred through extension of research results and support in accessing these innovations. - Actions carried out included partnership conventions, sub-contracts, training, distribution of inputs, and technical assistance targeting farmers, farmer organisations, NGOs, and rural radio. ### Fisheries and fish-farming outcomes - Post-catch losses decreased from 35 to 20 per cent following introduction of improved fresh fish salting and smoking techniques, and control of dry fish parasites. - Average pond surface area increased from 850 to 1323 m² per farmer organisation. - Average output increased from 0.66 kg/m² to 0.80 kg/m². - Reported percent increases: - Surface area: 55.6 per cent. - Output: 21.2 percent. - An interim fish-breeding station comprising 8 ponds with a surface area of 1000m² was created. - 14,800 young fishes were produced and distributed as part of the Project on the Development of Husbandry and Fisheries (PDEP) in the South-West province. - The project on development of fisheries through modernisation of small-scale fishing techniques is expected to raise production and incomes along the Atlantic coast. ### Fertilizer sub-sector and revolving fund - Experiments with manufacturing and use of organic fertilizer are being conducted in the West province by semi-urban businesses. - Under the Programme on the Reform of the Fertilizer Sub-Sector (PRSSE), a revolving fund was created in 2004 and 2005. - The fund is worth CFAF 3.8 thousand million and is aimed at financing businesses under the Medium-Term Loan Facility (MTLF) and the Renewable Credit Fund (RCF). ### Plant protection and phytosanitary strategy - Government initiated an environmentally friendly policy on plant protection and quality agricultural produce. - The phytosanitary strategy emphasizes creation, training and equipment support of village brigades and promotion of integrated pest control to reduce losses in plantations and stocks. ### Sustainable resource management in fragile ecological areas - Actions focused on the North, Far-North and Adamawa regions. - Projects (WGT, PARFAR, PNVRA) contributed to development of 41,158 ha and construction of 1588 millstreams. ### Box — Extension of research results and capacity-building (selected results) - 16 partnership conventions and sub-contracts of extension activities signed with: 2 NGOs, 4 farmers’ professional associations, and 10 rural radios. - 44 rural communities empowered on monitoring and evaluation of extension activities by extension workers. - 20 Tele-food projects on fish-farming, pig and poultry husbandry, marketing of maize, seed production, supported by FAO. - 13,317 farmer associations assisted in implementation of micro-projects, sustainable management of natural resources, fish-farming and domestication of some plant and animal species. - 202 technical and economic fact files provided to extension workers and farmers. - 13,877 basic farmer organisations had access to research results. - 15,900 farmer groups were assisted in agricultural consultancy. ### Private sector capacity-building and input distribution - 17 projects on production of maize seeds financed in Adamawa through PARFAR. - PNAFM (National Maize Production Support Programme) financed under HIPC funds trained 258 seed multipliers in the 7 Southern provinces. - IRAD provided the South-West and Littoral provinces with one million sets, which helped launch production of ten million sets to be distributed. - 539,000 plants distributed to small holders to promote small-scale palm plantations. - 4.164 million plantain suckers distributed to small holders for establishment of a 3150 ha plantation; PREBAP programme underway. - Government assisted AGROCOM in import of 5000 improved pineapple stool shoots. - Government manages cocoa seeds and Robusta coffee sets through the Cocoa and coffee Seed Project. ### Improvements in crop yields and access to techniques - Since 2003, increased yields reported: - North and Adamawa provinces: average maize yield increased from 2500-3000 kg/ha to 4550 kg/ha. - Centre province: average maize yield increased from 3000 kg/ha to 3600 kg/ha. ### Community development programmes and infrastructure - PNDP: - As at 31 December 2005, PNDP covered 33 councils. - In 2006, programme will cover 41 new councils. - Main donor: World Bank; additional funding from Japan, German and French cooperation through French debt-relief programme (C2D), HIPC funds, and state budget. - As at 30 June 2005, contracts signed with local support bodies for supervision of 33 councils. - 75 local support bodies received training in community-driven planning. - PADC: - Activities cover Centre and Far North provinces. - Financed by FIDA. - As at 30 September 2005, 101 village development plans drawn up. - Constructed facilities: 10 health centres, 120 classrooms, 25 latrines, 38 community posts, 56 water points, 6 bridges, 85 km of earth roads, 5 warehouses, and 1 playing ground. - Other community projects under execution: GRASSFIELD, RUMPI and PADDL. ### Cooperative development and sectoral projects - National Cooperative Development Policy Paper produced, adopted and validated. - Projects promoting cooperative development: PARI, PNVRA, PADC, PNDP, PCRD/MIFED, FIMAC, PDEP/SO, PMEDP. - Five community projects approved under the Programme on Sustainable Livelihoods in Fishing (PMEDP). ### Sectoral development initiatives (agriculture, energy, forestry) - Rice revival in Logone valley under execution since 2003 funded by HIPC funds. - Onion and garlic project helped 500 onion producers receive fertilizers and motor pumps in 2004 in Far North; Canada assists with storage facilities. - Special programme on tuber and root crops launched since 2004, focused on cassava and Irish potato. - Energy sector: - In 2004, Limbe thermal power plant launched for an additional 85 MW energy. - Government planning construction of a 150 MW gas-fired power plant in Kribi to be executed by a subsidiary of AES-Sonel. - Studies conducted on Lom-Pangar dam of a 7 thousand million m3 power capacity. - Studies underway on construction of Memve’le 200MW hydro-electric power plant. - Letter of intent signed with ALCAN in October 2005 includes construction of a new 300 MW hydro-electric power plant over River Sanaga at Nachtigal. - Northern interconnected network: plan to construct a hydro-electric plant over River Bini at Warak in pre-emption of possible power cuts by 2011. - Forestry/timber sector: - Actions to implement the Forest-Environment Sector Programme (FESP) and continue reforms under SAC III. - Implementation tied to a 300 million dollar donation by development partners over next five years. - Government amended decrees organizing the ministry of Forestry and Wildlife and the ministry of Environment and the Protection of Nature to reduce overlaps. - Rehabilitation process of former CELLUCAM initiated, including sylviculture and forest regeneration programme. - Mission underway to assess forest concession status formerly attributed to CELLUCAM; unexploited surface areas to be transferred to State portfolio for future allocation. *Translated from French — _cr06260 (excerpt)* ### 129. As far as SAC III reforms are concerned, emphasis was laid on enhancing the ### _cr06260 - 129. As far as SAC III reforms are concerned, emphasis was laid on enhancing the ### SAC III reforms — forestry sector implementation and enforcement - Emphasis on: enhancing the consistency of data on logging, ameliorating the distribution system of forest titles, and increased accountability in the management of such titles. - Quarterly publication in the media of valid titles continued satisfactorily. - Current valid forest titles and allocations: - 43 definitive forest exploitation concessions - 33 provisional logging concessions - 37 sales of standing volume - 107 valid community forests under exploitation - 25 Forest Management Units (FMUs) allocated in the presence of an independent observer - Institutional coordination: - Permanent consultations among the ministries of Wildlife and Forestry, Economy and Finance, and Justice to ease comprehension and implementation of court decisions and enforcement of penalties recommended by the forest law. - Quarterly publication in the media of legal and judicial prosecutions, fines and penalties against illegal logging continued. - Enforcement actions under forest taxation: - Follow-up summons underway for exploitation permits of three logging companies: CFE, AVEICO and SN-COCAM to be withdrawn. ### Textile / cotton sector developments - Cotton fibre production by SODECOTON (about 350,000 farmers): about 100,000 tons per year. - Local industrial processing by CICAM: about 5,000 tonnes. - Clothing industry: described as almost non-existent. - Government actions to increase industrial processing, boost clothing industry, and guarantee rural revenue: - (i) Strategic auditing and restructuring of CICAM - (ii) Completion of the DYRICOTON project (new investor with CICAM) - (iii) Preparation of the textile sector Code and a study on cotton economic potentials in the northern region of Cameroon ### Bauxite / alumina / aluminium sector - Cameroon possesses huge bauxite reserves in the Adamawa and West provinces and experience in the aluminium industry. - Development hampered by the power supply crisis; major hindrance to the extension of ALUCAM. - Government and ALCAN group letter of intent objective: - Increase ALUCAM production capacity from the current 100,000 tons to over 260,000 tons per year by 2010-2011 - Total investment: US$900 million ### Technological development sector - Government actions to establish a reliable digital facility: - Strategic technical group set up - Comprehensive sector study underway - Partnership progress: - Engagement with two Cameroonian groups (PASTEL and PRIME TECHNOLOGIES Inc.) by the NIC (National Investment Corporation) - Memorandum between COTCO and the government: - Government allowed to exploit 12 of the 18 optic fibres installed along the Chad-Cameroon pipeline ### Tourism sector status (as at 30 May 2005) - 1,521 classified hotels with 24,598 beds - 223 potential tourist sites (some under development) - In 2005 authorisations by the Technical Committee on Tourism Establishments: - 31 new hotels authorised and 23 openings (including one four-star, one three-star, two two-star, and seventeen one-star hotels) - 43 restaurants authorised (including 33 non-classified) - 5 tourist agencies authorised - 2 recreational establishments authorised ### Standardisation, quality control, and subcontracting policy development - Standardisation and quality control actions: - 23 norms adopted (18 in 2004 and 5 in 2005) - 22 companies audited under control of compulsory norms - 116 conformity certifications issued (66 in 2004 and 50 in 2005) - Promotion of quality norms via national quality week, World Standardization Day, seminars and events - Draft instruments prepared to create a Standards and Quality Control Board - Subcontracting and industrial partnerships: - Study results on potential of industrial subcontracting and industrial guilds available - Creation of a Subcontracting and Industrial partnership Board planned with UNIDO assistance; consultations on legal status underway - Think tank to establish partnership platform with IPAD of Rouen, CRCIL of Lorraine, and la Maison d’entreprise of Auxerre - For ALUCAM extension, target to ensure absorption of at least 30per cent of the project’s total expenditure by local SMEs/SMIs ### Boosting the private sector — strategic actions and challenges - Evaluation approach: - Implementation level to be evaluated through PRSP implementation matrix and related measures in other PRSP core areas - 2005 government continued actions in: - Fighting dumping and smuggling - Developing heavy duty infrastructure to boost industry - Capacity-building for SMEs/SMIs - Removing impediments to private sector growth - Complementary reforms: public finance adjustment, economic diversification, infrastructure and human resource development, and governance improvements ### Anti-dumping, anti-smuggling, and industrial protection measures - Decrees establishing institutional framework: - Decree No 2005/528/PM of 15 February 2005: create ad hoc Committee for coordination of anti-fraud, anti-smuggling, and anti-counterfeiting operations - Decree No 2005/1363/PM of 6 May 2005: fix composition, institutional functioning, and seizure modalities of the anti-dumping and subsidised products Committee - Enforcement outcomes: - Awareness campaigns and a crusade led to dismantling of illegal factories (e.g., vinegar, battery liquid, electrical products) - Revival of activities of some three major companies previously threatened by smuggled products: CICAM, SOSUCAM, and PILCAM ### Price controls, staples, and inflation management - Tight control on stocks of staples helped control inflationary trends resulting from the tax break and maintained the inflation rate below worrying levels. - Partnership discussions with private businesses developed the “consulted price” concept, with main indicators implemented in building materials. ### Heavy-duty infrastructure projects to boost private sector (selected projects and execution details) - Wouri bridge rehabilitation: - Execution rate reached 62 per cent - New bridge over Wouri river (study for BOT PPP) ongoing - Border-linking road projects, e.g., Ngaoundere-Touboro-Moundou: - Total execution rate: 86 per cent - Distance executed: 228 km out of a total distance of 265.3 km - Amount spent: CFAF 45.130 thousand million - Ambam-Eking road: - Works completed entirely on 27 km, representing 84 per cent of the total amount - Bridges over river Ntem at Ngoazip and Eboro constructed, inaugurated and operational - Ambam-Kye Ossi (border with Equatorial Guinea): - Execution rate: 107 per cent - Works completed on entire distance of 34.2 km and delivered on 23 September 2003 - Extension works comply with study on bridge over river Kye amounting to CFAF 10.179 thousand million - Makabaye bridge (southern entrance to Maroua on the No1 Trunk A road): - Execution rate: 95 per cent - Works on the bridge completed and provisionally delivered on 13 March 2004 - Remaining works: weighing station at the project end point - Total amount: CFAF 4.445 thousand million - Rehabilitation of Douala urban roads (Douala Infrastructure Project): - Financial support from the World Bank - Work on lot No1 quite advanced and may be complete by late February 2006 - Construction of roads in Yaounde (e.g., Mvog-Betsi ring road, Obili road, Biyem-Assi Avenue) under way ### Removal of impediments to private sector growth and sectoral constraints - Consultation framework since July 2004 between the ministry of Public Works and the private road sector established. - Main difficulty identified: payment for services provided, increasing the internal debt burden. - Organised inter-ministerial committee meetings enlarged to include the private sector to tackle problems including: - (i) energy deficit - (ii) the quality of road and telecommunications infrastructure - (iii) taxation - (iv) governance ### Business incubators and investment promotion institutions - Action plan for business incubators approved; fundraising for three pilot business incubators in Littoral, Centre and Far-North provinces is underway. - National Investment Charter implementation: - Decree No 2004/266 of 22 September 2004 signed to outline modalities for the Regulation and Competitiveness Board (tripartite: public sector, private sector, civil society) - Establishment of the Board helped resume drafting of Charter-related instruments: - Investment Promotion Agency (decree fixing organisational and functioning modalities signed in 2005) - Export Promotion Agency - Trade and Industry Observatory - Sector-specific codes for selected industrial sectors ### Private sector capacity-building and competitiveness measures - Capacity-building of farmer organisations to improve access to high-yielding farming techniques (fertilizers, seeds, plants). - Support to development of high potential sectors: palm oil, plantain, rice farming. - Development of a standard raising programme to improve company competitiveness. - Human resource and social sector development (education and health strategies) expected to improve competitiveness through better-trained human capital. - Governance improvements targeting: - Fight against corruption - Acceleration of judicial procedures - Reform of public contracts awarding system - Reinforcement of security of persons and goods - Consolidated in 2005 to improve private sector situation ### Government investment focus and targeted growth sectors - Identification process launched for sectors with highest potential; main targeted sectors include: - energy - infrastructure - building trade - tourism - ICTs - Drafting or completion in 2005 of strategies for these sectors to identify programmes and projects for implementation ### Infrastructure development, natural resources, and environmental protection — basic infrastructure highlights - Building and public works sector activities focused on: - (i) drafting the sector’s strategy - (ii) routine and regular road network maintenance - (iii) investment operations (studies and road projects) - (iv) support to private sector in building and public works trade - Sector strategy completed in 2005 and validated by stakeholders on 15 June 2005. - MTEF for the sector designed in second half of 2005; presented to MINPLAPDAT and the World Bank on 16 November and 14 December 2005 respectively; to be updated based on achievements and actual budgets. ### Road maintenance and investment budgetary allocations (2005) - Ministry of Public Works total budgetary allocations: CFAF 74.987 thousand million in 2005 (down from CFAF 92.4 thousand million; an 18.85 per cent drop). - Budgetary allocation for road maintenance increased and represented: - Contracts totaling CFAF 40.400 thousand million, i.e. 53.86 per cent of the ministry’s total 2005 budget (against 37.4 per cent in 2004, representing CFAF 29.46 thousand million). - Road maintenance programming: - Priority road network maintenance distance: 22,285 km - Total execution rate: 75 per cent ### Investment operations and road rehabilitation accomplishments - Wouri bridge rehabilitation: - Amount: CFAF 15.407 thousand million - Overall execution rate: 62 per cent - Execution split: 72per cent on the solid portion (bridge over the river), 10 per cent on conditional portion 1 (dead arm of the river), 10 per cent on conditional portion 2 (sea wall and access roads) - Conditional portions started at end of second quarter of 2005, reducing global execution rate - Priority road network rehabilitation in 2005: - 2,114 km of roads rehabilitated (138 km tarred roads; 1,976 km earth roads in rural areas) - Comparison of rehabilitated road distances: 307 km in 2003, 885 km in 2004, and 2,114 km in 2005 — achievements in 2005 are twice the 2003 and 2004 achievements combined - Tarring works (2004 and 2005): - Tarred shelf space: 482 km (versus projected 254 km) — more than 190 per cent execution rate - Total shelf space of roads rehabilitated during same period: 3,000 km (for a 4,140 km projection) — 72 per cent execution rate ### Urban infrastructure development and labour-intensive techniques - Urban infrastructure achievements: - 87 per cent of urban roads maintained over the last two financial years in Cameroon’s 18 major towns - 70 km of roads maintained in some secondary towns (including 10 km tarred) - Rehabilitation of 75 km of urban roads planned for 2005, including 21 km in Yaounde, at completion stage - Formalisation of State–decentralised local authorities partnerships continued (e.g., Limbe town contract signed; eight more contracts under preparation or signing) - Actions for towns of less than 100,000 inhabitants: - Classification and selection of priority infrastructure projects - Promotion of labour intensive (HIMO) techniques: - Contribution to preparation of a Strategy Declaration for HIMO techniques (study underway) - Creation of 665 jobs between July 2003 and July 2004 via HIMO for maintenance of secondary city roads and urban sanitation - HIMO techniques used in maintenance of 50 km of roads in Yaounde - Cleaning of primary drainage networks: River Mfoundi cleared and widened on a distance of 2.5 km in Yaounde *Translated from French — _cr06260 (selected excerpts)* ### 157. The strategy on the development of telecommunications and ICTs was finalised ### 157. The strategy on the development of telecommunications and ICTs was finalised ### Telecommunications and ICT strategy and implementation - The strategy on the development of telecommunications and ICTs was finalised and validated in 2005. - Next step: preparation of the Medium-Term Expenditure Framework (MTEF) for the telecommunications and ICTs sector. ### Community telecommunications centres project - Project on construction of comprehensive pilot community telecommunications centres is on course. - Deliveries: 10 buildings out of the 16 planned were delivered, including 7 in 2004 and 3 in 2005. - Remaining centres are being finalised and will be delivered before the end of the first quarter of 2006. - Internal equipment and furniture are available. - Human resources: some sixty youths were trained (managers and operators). - Pilot tests were carried out in the Centre province at Makenene, and in the South province. ### Regulatory and institutional measures - Decree by the head of State to promulgate law No 2005/013 of 29 December 2005 (amending law No 98/014 of 14 July 1998) outlines who shall authorize expenditure of the Telecommunications Special Fund, making the Fund operational. - Decree signed by the head of State on 1 November 2005 fixes conditions for installation and payment by public administrations of telecommunications services; decisive for setting up an inter-ministerial communication network to avoid routing all state communications through private networks. - Instrument laying down modalities for organisation and functioning of the inter-ministerial committee in charge of controlling use of telecommunications services by state personnel is being finalised. - Creation of management bodies of the National Information and Communication Technologies Board (ANTIC) is expected to boost sector activities. ### Licences, operators, and usage statistics - Licences authorising provision of services and/or access to the Internet: thirty (30) issued in 2003; nineteen (19) in 2004. - As at December 2005, some sixty operators were providing Internet access and other added value services to the public. - Internet infrastructure: a six-node access point (POP) and 75 VSAT access points. - Internet user rate as at 31 December 2004 stands at 0.16 per cent of the population. - A national survey prepared and launched by MINPOSTEL, in conjunction with the National Institute of Statistics, will assess penetration and use of ICTs in Cameroon. ### International connectivity and backbone plans - Improvements in international connections: - Optical fibre installed along the Doba-Kribi pipeline. - Opening in Douala of a land point of the SAT-3 sub-marine cable of a 2.5 Gbit/s capacity. - Memorandum of understanding signed in October 2005 between COTCO and the State of Cameroon. - Retrocession to CAMTEL on 24 November 2005 of the twelve optical fibres contained in the cable installed along the Chad-Cameroon pipeline, enabling CAMTEL to activate exit points and extend the fibre to potential users. - Government plans to contribute to establishment and development of a Principal Network in Central Africa and to the realisation of a Trans-African Backbone stretching from the West to the East coast of the continent. - A technical and financial bid for a detailed feasibility study of this network has been submitted to the World Bank by consultant AXIOM. ### CAMTEL investments and fixed-line developments - During implementation of the Minimum Investment Programme (MIP), CAMTEL installed two digital exchanges in Yaounde and Douala, digitalised some exchange and transmission lines, created Internet access points, and executed the prepayment platform. - Fixed density of telecommunications rose from 0.6% in 2003 to 0.7% in 2005. - CAMTEL received a block of 20,000 lines from ART in October 2005, enabling the launch of the “CT phone”. - Extension and densification of wireless local ring in CDMA technology expected to greatly increase fixed density. ### Mobile sector performance and financials - About one million additional lines were put at the disposal of the two mobile phone operators in 2005, bringing the total number of lines to about 3,300,000 for a density of 12.3 percent in 2005, as against 6.6 in 2003. - The cumulative number of active subscribers of both mobile operators stands above two million. - Turn-over of the sub-sector rose from CFAF 225 thousand million in 2003 up to CFAF 253 thousand million in 2004. ### Cryptology, certification and e-transactions - Experimental platform of the cryptology and certification system has been installed in MINPOSTEL with assistance from experts of the International Union of Telecommunications. - Adoption of a legal and statutory framework is expected to facilitate electronic transactions, including electronic signature, security and encryption aspects. ### Natural resource management (high-level findings) - Water sector: drafting of the water sector strategy continued in 2005 with diagnosis validation phase; construction or rehabilitation of 60 water points in 2005 as part of PADC or FIMEX projects. - Energy sector: - Government adopted a master plan for development of means of production and transportation of electrical energy in 2005; implementation is underway. - Limbe heavy fuel thermal station became effective in 2004. - Construction plans and timelines: - Memve’le electrical dam: feasibility study updating financed by a loan worth CFA F 230 million from the Central Africa States Development Bank; construction due for 2009/2010. - Lom Pangar dam: environmental impact studies submitted on 21 October 2005; construction due completion in 2009. - Kribi power station: should become operational in 2008. - Colomines power station: outline agreement signed on 13 December 2005; construction to begin in 2007; effective take-off planned for 2008. - Nachtigal power plant: to become operational in 2010. - Bini Power station at Barak: objective to consolidate electricity supply in northern Cameroon network; to become operational in 2010. - PANERP (Energy plan of Action for Poverty Reduction) targets between 2006 and 2015: - electrification by ERD of 228,300 homes, - 150,000 new electrical connections by AES Sonel, - development of 10 mini-hydraulic power plants and biomass, - supply of electricity to 4,437 establishments including 1,308 in education, 923 in health, 1,843 and 205 safe water supply units in the agricultural sector. - Mining sector: - 28 small-scale priority sites identified in 6 provinces through CAPAM. - Organisation and restructuring of 20 common initiative groups. - Creation of a data bank on mining substances and identification of useful ones. - Exploration permits issued: CAMINCO for gold; HYDROMINE Inc. for bauxite in the Adamawa; STEEL CAM for iron at Kribi; CAM IRON for iron at Mbalam. - Total of 10 exploration permits and one exploitation permit were issued. - Geological and industrial risk management: - Designing of Mount Cameroon’s cartography is under execution. - Degassing of lakes Nyos and Monoun is carried out on a regular basis. - 700 inspections of industrial sites in 2005 representing total revenue of about CFA F 700 million. - Finalisation of draft decree on environmental impact studies; training in waste management and environmental assessment; surveys, inspections and environmental audits of waste stations conducted. ### Environmental management (high-level findings) - Government action focused on capacity-building, popularisation of the law on bio-security, and implementation of the plan of action on biological diversity. - Workshops organised on topics relating to genetically modified organisms (GMO): food and nutrition, risk management, information and communication. - Popularisation of the law: some 300 copies of the law were distributed; English version of the manual on GMO risk management and evaluation is now available. - Establishment of the National Bio-diversity Committee and designation of its members; finalisation of the manual on risk evaluation and management. - New protected areas were created and development plans of all protected areas validated. ### Trade and regional integration (selected outcomes) - Domestic trade: government actions aimed at (a) organisation of trading activity, and (b) consumer protection. - Measures to reorganise local markets, control distribution channels, prevent artificial shortages, and reduce transaction costs. - Priority actions included creation and construction of whole-sale markets in main production regions; development of border markets (Abang Minko, Kye Ossi, Mbaiboum, Limani); removal of impediments to free movement and trade. - Consumer protection measures: preparation, ratification and control of presentation, conservation and distribution standards on staples; enforcement and control of standards on building materials; public awareness on prices, weights and measures. - Foreign trade diversification: 6 products represent 80per cent of exports; strategy focuses on reducing dependence on these staples, increasing exports of manufacturing goods with high added value, and diversifying partnerships. - Trade promotion actions: participation in international trade fairs; trade negotiations; creation of economic information and documentation centre; commercial information gates at CCIMA. - With EU assistance, a business promotion programme on competitiveness is being developed in view of market liberalisation by 2008. - Planned actions to make foreign trade contribute to growth and poverty reduction include: (i) renewing AGOA; (ii) better participation in multilateral trade negotiations as part of economic partnership regional agreements; (iii) implementing Investment Charter provisions relating to promotion of exports; (iv) consolidating Cameroon’s diplomatic missions abroad; (v) organising specialised trade fairs and promotional events (example: Promote in December 2005 in Yaounde, with over 700 companies present). - Future actions: (i) consolidating trade cooperation in the sub-region, notably through signing trade agreements with Nigeria; (ii) organising canvassing and promotional missions in the CEMAC/CEEAC zone, and Nigeria; (iii) establishing a mechanism to finance foreign trade and promote e-trade. ### Regional integration and macro-fiscal performance - Regional integration in CEMAC and increasingly in CEEAC is a key implementation area of development policy with significant growth potential. - Budgetary policy achievements in the 2005 financial year: - Basic budgetary balance was positive (CFAF 341.6 thousand million, i.e. 3.9 per cent of 2005 estimated GDP). - Inflation rate stood at 1.5 per cent, below the community standard rate of 3 per cent. - National debt stock-GDP ratio stood at 53 per cent, below the community standard rate of 70 per cent. - Treasury had no payment arrears for 2005; both domestic and foreign debt servicing were hitch-free throughout the year. - Monetary policy: new regulations on exchange became effective; transfer of know-how from public administration to commercial banks in management of international transactions has occurred. *Source: _cr06260 - 157. The strategy on the development of telecommunications and ICTs was finalised* ### 188. In the area of finance policy, the reform of the payment system is about to be ### _cr06260 - 188. In the area of finance policy, the reform of the payment system is about to be ### Finance policy and regional financial integration - Reform of the payment system is about to be completed. - Regional legislation on micro-finance establishments is enforced. - The Douala Stock Exchange has become operational. - Financial situation of BDEAC improved through institutional reforms and member States honouring commitments (including capital reconstitution and appointment of officials). - BDEAC plans to allocate 40 per cent of its assistance budget to community infrastructure programmes. ### Commercial policy and trade facilitation - Government measures to facilitate foreign trade and reduce costs and port transit times: - Streamlining procedures within the single processing window for foreign trade. - Safety and reduction of police check-points along corridors. - Cameroon signed agreements and conventions to facilitate flow of goods for land-locked CEMAC countries to/from Douala port. - Businesses reported positive effects of these measures. ### Institutional cooperation and consular chambers - In August 2004 in Douala, consular chambers of CEMAC member States adopted internal rules and regulations of the Conference of CEMAC consular chambers member countries. - Implementation of its roadmap was launched in early 2005. ### Road infrastructure and regional connectivity - Execution of construction works on CEMAC integrating priority road network continued; many projects completed or underway; some studies ended or started. - Inauguration of the Ntem Bridge and roads linking Ambam (South of Cameroon) to Equatorial Guinea and Gabon. - Launching of studies for road linking OUESSO (North of Congo) to Sangmelima (South of Cameroon). - Construction works completed on Ngaoundere-Touboro-Moundou road (border with Chad) and Makabaye Bridge in Maroua (Douala-N’jamena corridor). - Planned/ongoing works: rehabilitation of Wouri bridge, studies for new bridge over river Wouri, launching of works for construction of the Moungo bridge. ### Sea and air transport - Port sector reform completed; concession process of commercial port activities is a reality. - Studies on development of a deep-sea port in Kribi are completed. - Feasibility studies on the Limbe Bridge were conducted with support from the US administration. - Sub-regional air company (Air CEMAC) development continued with selection of strategic partner (Royal air Maroc) and validation of development plan. - Sub-regional air coverage by private national companies (Air Service, Nacam, Toumaï Air Chad) helped meet high demand. ### Trade policy and capital markets - Measures to promote greater integration of goods and capital markets: - Reduction (by a maximum of 20per cent) of foreign common tariffs. - Reduction of number of classes of products from 5 to 4. - Enforcement of a common investment charter within the CEMAC zone. ### Energy and ICT - Project to inter-connect electrical networks in the CEEAC sub-region received support from the international financial community, including the ADB and EU. - Government pledged contribution to establishing and developing a Principal Network in Central Africa and realising a Trans-African Backbone from West to East coasts. - Technical and financial bid for a detailed feasibility study of this network was submitted to the World Bank by consultant AXIOM. - Network intended to enable Central Africa to integrate the global optic ring. ### Environment, forestry and agriculture policy harmonization - Within COMIFAC, government facilitated consultations among actors (WWF, WB, UNDP, civil society, FAO, private sector) and improved management of environmental information (collection, management, analysis and distribution). - Continued harmonisation of agricultural policies in CEMAC countries, including phytosanitary policy and locust control. - Sponsored two food security projects adopted within CEEAC. ### Training and capacity-building - Introduction of a training programme for statisticians and economists. - Inauguration of new buildings at the Advanced Institute of Statistics and Applied Economics (ISSEA) as part of capacity-building of sub-regional training institutions. ### Health strategy implementation and disease control (selected outputs) - Health sector MTEF updated; significant results recorded in 2005 in disease control programmes. - Malaria: - 59,215 treated mosquito nets distributed to children below the age of 5. - More than 300 000 mosquito nets distributed in 2005 to pregnant women. - 2,173 community workers received training in 2005, as against 2,073 in 2004. - 59,750 pregnant women received periodical preventive treatment during antenatal consultations. - 100,000 leaflets produced and distributed. - 10 provincial NGOs signed contracts with the ministry of Public Health for community information activities. - STIs/AIDS: - 37 million condoms distributed through PPSC, the Social Marketing Programme and other NGOs, against 30 million in 2003. - Conventions signed with religious denominations for a total of CFAF 1,997,000,000 for public awareness activities. - Government reduced cost of laboratory tests from CFAF 16,000 down to CFAF 3,000 per individual on a semi annual basis. - 19 prevention and voluntary screening centres operational. - 905 assistant workers recruited and 53,538 people screened. - 24 approved treatment centres and 63 follow-up units monitor patients receiving ARV drugs. - PMCT: - ARV costs maintained at CFAF 3,000 and 7,000 monthly. - Tuberculosis: - 167 screening and treatment centres created nationwide and regularly supplied with drugs. - Expanded Programme on Immunization (EPI): - Five rounds of vaccination against poliomyelitis in 2005. - DTC3 vaccination coverage rate at 75per cent, up from 65.4 per cent in 2004. - Measles coverage increased from 64.8 per cent to 65 per cent. - 51per cent of children aged between 12 to 23 months received BCG vaccine, 40 per cent were immunized against measles, and 39 per cent against yellow fever. - Reproductive health: - 102 personnel trained in basic emergency neonatal obstetrical care, as against 24 in 2004. - CENAME (created June 2005) ensures supply of essential drugs and medical devices through wholesalers. - Control of river blindness: geographical coverage rate reached 75 per cent. - Health infrastructure improvements: - SAMU activities reinforced in Yaounde and Douala. - 89 community-based health centres, 20 sub-divisional medical centres, 46 district hospitals, and 3 district health services rehabilitated. - Nutrition: - National policy paper on nutrition and the 2005 action plan validated; children’s growth monitored in every health establishment. - Overall: despite resource inadequacies, significant progress made in disease prevention and control, increased patient care, personnel training, and infrastructure improvement. ### Education sector developments and outputs - Education sector budget (MINEDUB, MINESEC, MINEFOP, MINESUP) dropped from CFAF 300.2 thousand million in 2004 to CFAF 264.1 thousand million in 2005. - HIPC funds amount to CFAF 16.66 thousand million. - Budget priorities (2001–2005 and partner support): - Construction and equipment of 3,768 primary school classrooms from 2001 and 2005, and 1,498 classrooms by development partners (Japan, ADB, and IDB). - Rehabilitation of 358 secondary school classrooms and construction of 216 new classrooms. - Human resources: - 1,700 contract teachers recruited in 2005. - 987 new graduates of Advanced Teachers’ Training Colleges and primary education teacher training schools included on State’s payroll. - Institutional management: - Rational and decentralised management of personnel; payroll screened per province and per category. - Administrative reorganisation initiated to improve decentralisation in teacher management. - Measures to increase teachers and improve conditions (planned/proposed): - Progressive absorption of contract teachers in primary and technical secondary education depending on available funds. - Suspending salaries of certain personnel to ensure efficient management of human resource careers. - Improving working conditions by limiting professional transhumance. - Ensuring multi-disciplinary training of student teachers. - Defining working positions per organisation charts. - Continuing implementation of special status of teachers by paying research and documentation allowances and instituting special allowances for staff transferred to Education Priority Areas (EPAs) with highest teacher deficits depending on funds available. - 2005 infrastructure and equipment outputs: - Constructed or rehabilitated 574 classrooms, 140 workshops for various special fields, and 51 secondary schools. - Provision of education to 206 physically handicapped persons ensured by private education sector. - Over 168 computers acquired and equipment consolidated in close to 300 schools. - Many teachers and pedagogic inspectors trained in the Competency-based Approach (CBA). - Strategy and planning: - Global education sector strategy designed in 2005 (covering 2005-2015); draft available since December 2005. - MINEDUB and MINESEC MTEFs designed with three strategic action areas: (i) access and quality with reduced regional disparities and emphasis on manuals/didactic materials, professional education, HIV/AIDS control; (ii) capacity-building (infrastructure and human resources) and integration of vocational training; (iii) institutional strengthening, good governance, and fighting corruption in schools. - Performance indicators: - Secondary education exam results recorded an 18-point average increase. - Same 18-point increase recorded in primary education. - Female/male parity index at primary level rose from 0.85 in 2003 to 0.9 in 2005. - Access to primary education: 96.4 per cent in 2004 (steady improvement since 2002; 0.6 progress compared with 2003). - Transition rate (primary to secondary) about 56 per cent. - School retention rate at end of primary cycle: 55.4 per cent in 2003, 56 per cent in 2004, and 57.4%per cent in 2005. - Class repetition: - Class repeating rate around 26 per cent in the French-speaking sub-system, against 17per cent in the English-speaking sub-system. - Ministerial order on reduction of class repeating in the three sub-cycles of primary education being amended to clarify objectives and ensure application. ### Employment and vocational training — survey results and policy steps - Government held first general conference on employment in November 2005 to diagnose the employment situation, finalize Government’s declaration and national employment policy, and mobilize on employment. - Employment and informal sector survey (employment component) produced the following results: - Activity rate of people aged not less than ten years stands at 71.1 per cent and shows broad disparity by region/area of residence, age and sex. - Rate of unemployment, according to ILO standards, stands at 4.4 per cent (mainly an urban phenomenon: 10.7%). - Broader unemployment rate (ILO job seekers + discouraged job seekers) is 6.2 per cent. - Visible under-employment (working less than 35 hours a week): 12.7 per cent of gainfully employed working population. - Invisible under-employment (remuneration below guaranteed minimum working week — equivalent of CFAF 23 500 per month for 40 hours of work per week): 69.3 per cent. - Employment structure by gender: men 50.9 per cent, women 49.1 per cent. - Average lifespan in a job: 9.1 years (rural areas: more than 10 years; urban areas: 6 years). - Informal sector employment share: 90.4 per cent gainfully employed working population; public sector 4.9 per cent; formal private sector 4.7 per cent. - Sectoral employment shares: primary sector 55.7 per cent, tertiary 31.9 per cent, secondary 14.1 per cent. *Translated from French; source document: _cr06260* ### 226. NEF activities have also been monitored with regard to social and occupational ### 226. NEF activities have also been monitored with regard to social and occupational integration of youth ### Social and occupational integration; Social development strategy - NEF activities monitored with regard to social and occupational integration of youth in salaried and independent job opportunities include: - (i) the partnership agreement signed by the government with GICAM; - (ii) the integration of job seekers; - (iii) conventions with vocational training centres and some enterprises for the validation of training modules. - The Social Development Strategy was completed in 2005. - Outstanding actions: - Ministerial strategies underlying the Social Development Strategy remain to be prepared. - Various draft instruments relating to violence against women to be examined and validated after adoption of the family code. - The family code will be adapted to the code of criminal procedure, to the OHADA uniform acts and to the child protection code. ### Urban poverty and urban development strategy - Progress toward finalizing the urban development strategy: - An urban diagnosis paper validated in November 2005. - An interim urban sector development strategy paper drafted for the Donors Round Table Conference scheduled for March 2006. - Consultation talks held by actors in the housing sector. - Formalized partnerships (by contract) between the State, decentralized public authorities and secondary urban centres: Limbe urban contract signed; preparation of Yaounde and Douala contracts under way. - Development and Town Planning Master Scheme (DTPMS) and Local Master Plans (LMP) in Yaounde updated; Ngaoundere and Limbe Town Planning Master Plans (TPMS) being updated. - Rehabilitation of basic infrastructure (selected figures and actions): - 87 kilometres of roads maintained in 2003 and 2004 in 16 major towns. - 70 kilometres maintained, of which 10 kilometres were tarred roads in secondary towns (period covered in same passage). - In the 2005 financial year, 75 kilometres of urban roads rehabilitated, of which 21 in Yaounde. - Funding assistance from IDA (the World Bank) worth CFAF 42000 million for rehabilitation of 23 kilometres of primary roads in Douala (work underway); the full loan was handed over to the Douala City Council. - Drainage and flood-related works: - Primary drainage networks cleaned up. - Mfoundi River gauged again over a distance of 2.5 kilometres. - Primary drains in Douala cleaned in neighbourhoods Banya, Bepanda, Ndogpassi, N’goua, Tongo Bassa, Bonaberi. - Urban Governance Programme with UNO-HABITAT built on three aspects: consultation of the towns, safer towns and training of local councillors. - Studies identified and carried out to design a practical poverty alleviation plan. ### Improvement of the institutional framework and governance — overview - Significant progress after three years of PRSP implementation in: - rigor and transparency in public finance management; - participation of stakeholders other than the government in public affairs management; - improvement of the institutional framework of businesses; - anti-corruption drive. ### Public affairs management: transparency, information, accountability - Main measures under implementation: - Continue adjusting public spending channels. - Improve social sector management. - Produce and disseminate statistical information. - Inform citizens on public affairs management. - Public expenditure tracking and related actions: - A survey on monitoring public spending and satisfying beneficiary needs in education and health (public expenditure tracking survey) produced an action plan. - Action plan requires compulsory information by vote holders to beneficiary populations about planned investments and production of at least a report at the end of every financial year. - Financial and accounting records: - Work on keeping records on management of public funds started to produce records for use by the Audit Bench. - Wage bill and personnel database management: - Improved mastery of the wage bill by adjusting the salary data base. - Irregularities in implementation of SIGIPES were redressed in four pilot ministries; stabilized version introduced in 11 (eleven) other ministries. - From 2003 to 2005, about 3 000 presumed ghost workers were on the State’s payroll. - Sanctions applied to guilty workers: placed on retirement, erased from the payroll, suspended from entitlement to a salary or referred to the public service Disciplinary Board; some requested to repay unduly collected monies. - Penalties levied against unscrupulous workers have regularly been published. - Invitation to tender launched for recruitment of an expert responsible for the change-over of the ANTILOPE software. - Public contracts reform: - Publication of a public contracts code in September 2005 and its implementation circular in June 2005. - Awareness campaign in each provincial headquarters to popularize the code. - A bidders’ guide produced. - Contracts awarded and/or executed in 2003 audited; audit work on those awarded in 2004 started in October 2005. - An overall review of the public contracts awarding system took place in 2005; recommendations under implementation. - Box: Main activities carried out to improve the institutional framework and governance (listed exactly as in source): - Publication of the public contracts code; - Rendering the Audit Bench operational; - Enactment of the law on the code of criminal procedures; - Regular publication of the treasury accounts balance; - Publication of a memo on the execution of the state budget; - Regular publication of information on production, the market prices of oil and the revenue deposited in the Treasury; - Periodic publication of information on the management of public corporations; - Publication of penalties levied on unscrupulous government workers; and - Rendering the National Financial Investigation Board (ANIF) operational. - Additional measures: - A survey on penalties and corruption in public contracts was conducted in 2005; the study identified weaknesses to be addressed in 2006. - Provisions in the 2006 finance law to limit or eradicate fragmentation of contracts. - Public finance outcome: - Measures taken helped the government to save money from the wage bill. - Extractive Industries Transparency Initiative (EITI) adherence: - Authorities abided by EITI principles in the mining sector. - Monitoring and Implementation Committee’s technical secretariat established; an action plan adopted using a participatory approach that includes presentation of data on oil production and regular publication of reports. - Auditing and sector-specific transparency: - Auditing of public and semi-public corporations, public administrative establishments, accounting offices and subsidized bodies undertaken. - Forestry sector: measures on issuance of timber exploiter’s licence, fight against illegal exploitation and forestry development on course; list of valid exploiter’s licences and companies facing legal charges published regularly in the press. - A study on citizens’ access to information on public affairs management conducted; interim report available. - Statistical capacity: - When the social organs of the National Institute of Statistics (NIS) are established, and following appointment of the director general and deputy director general, production and dissemination of statistical data will improve. ### Strengthening the rule of law and business safety and security - Judicial reform priority action plan under implementation with three aspects: - (i) consolidating judicial independence; - (ii) stepping up the anti-corruption drive in the justice system; - (iii) improving the application of laws, court decisions and penalties. - Implemented actions: - Enactment of the law on the criminal procedures code. - Training of judicial and para-judicial staff in the OHADA law. - Training of court registrars in use of computer equipment. - 2006 budget for the ministry in charge of Justice increased to speed up judicial reforms. - Constitutional and audit institutions: - The Audit Bench operational; accounts of the 2004 financial year are being examined and evaluated. - Laws on organization and functioning of the Constitutional Council and internal rules enacted in April 2004; decree to set up the Secretariat General signed in June 2005. - Safety and security legal framework: - Four laws passed in March 2004 authorizing ratification of: - the United Nations convention on organized trans-national crime; - the memorandum for the prevention, elimination and punishment of human trafficking (women and children); - the memorandum on illicit land, maritime and air migrants; - the law fixing the rate of legal interest in the execution of court rulings and conventional legal interest. - Rapid intervention activities by forces of law and order implemented as part of the fight against violent crime. ### Anti-corruption drive - Institutional framework and legal tools: - Anti-corruption drive advanced since April 2003 with establishment of bodies and mechanisms, including an inter-ministerial committee and ministerial units. - Ratification of United Nations conventions against corruption and money laundering. - Creation of the National Financial Investigation Board (ANIF), a financially autonomous public body responsible for receiving, processing and referring information needed to punish money laundering and/or funding of terrorism to competent judicial and legal authorities. - Administrative reorganization and preventive measures: - Reorganization of ministries: more powers to inspectorates general; establishment of Reception, Mail and Liaison sub-departments to reduce contact points between office workers and public service users. - Administrative procedures manuals being drafted; a user’s guide will inform citizens on conditions, documents, processing time limits, applicable instruments and terms and conditions. - Published penalties applied in judicial/legal sector (02 judicial and legal officers dismissed), police, education, finance, public works and public and semi-public bodies. - Nationwide second phase of public awareness campaigns launched. - These measures have improved the yearly corruption perception index in Cameroon calculated by Transparency International. ### Decentralization and local development - Legal and implementation advances: - Passing in July 2004 of the outline law on decentralization, the law governing regions, and the law applicable to councils. - An action implementation plan (2005-2009) drawn up. - Sector–based accounting plan for councils adopted. - Capacity-building measures for mayors and council staff: National Colloquium of mayors in 2004 on the fringe of Africity; ongoing training sessions for council staff. - Special Council Support Fund (FEICOM) audited; an action plan for restructuring under implementation. - Urban governance programme outcomes: - Capacity-building of national and local actors of 23 councils in formulation and implementation of council poverty reduction strategies. - Development of local skills in Yaounde and Douala in the fight against urban delinquency. - Enabled councillors and council staff in eight provinces to better assume responsibilities in decentralization and democratization. - As of reporting, 700 councillors and senior council staff trained of a planned 930. - PUG steering committee established. ### Assessing poverty — overview and income trends - Approach: - Poverty regularly evaluated through presentation and analysis of new data and trends; lack of a new poverty profile limits scope. - This third progress report targets main results of major actions likely to impact living conditions and trends of some living-condition elements. - Income trends — macroeconomic growth and per capita income: - 4.5 per cent growth rate in 2003 said to have corresponded to improvement in income per head revolving around 1.7 percent, as population pressure absorbed 2.8 per cent of the growth. - 3.7 per cent growth rate in 2004 resulted in an increase in revenue per head of 0.9 per cent. - 2.6 per cent growth rate in 2005 is reported to have corresponded at best to zero growth in income per head. - Conclusion: Economic growth did not contribute in any significant way to reduction of income poverty over the past few years. - Public service wages, pensions and fiscal reform impacts: - In 2003 the public service paid salaries, pensions and related allowances worth a total amount of CFAF 519.7 thousand million. - In 2004, these payments increased to CFAF 541.1 thousand million, corresponding to a 4.1 per cent increase attributed mostly to salaries and recruitments in Police, Education, and Health. - Implementation of the new personal income tax effective from 1 January 2004: - Increase in tax-free revenue from CFAF 25 000 to 52 000. - Marginal taxation rate down from 65 per cent to 35 per cent. - These changes translated into additional incomes for some taxpayers. - As of 31 December 2005, the same payments (salaries, other personnel expenses, pensions, salary arrears and salary adjustments) were estimated at CFAF 524.6 thousand million, down from 3.1 per cent (the 2005 drop compared to 2004 confirms a downward trend in domestic demand). - Rural incomes and cash crops: - Income trends in rural areas closely linked to cash crop yields and food crop supply increases. - Grain cotton yields improved but producer purchasing prices did not improve between 2003 and 2005 due to world price slump. - Cocoa: fall in world cocoa prices in 2004 versus 2003; 2005 witnessed a slight price increase compared to 2004, but cocoa farmers did not benefit from increased production. - Traditional palm oil producers have since 2003 seen increased yields and stable home prices allowing higher incomes. - Coffee (Arabica and Robusta) production has steadily declined; apart from the South West where output exceeds 400 Kg per hectare, coffee farmers find it difficult to live off their activity. *Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06260.pdf* ### 253. Food crop yields have been increasing since 2003 and the trend was confirmed in ### _cr06260 - 253. Food crop yields have been increasing since 2003 and the trend was confirmed in ### Food crop yields and agricultural income - Food crop yields have been increasing since 2003 and the trend was confirmed in 2005. - Increases observed in plantain, cassava, maize, paddy rice, groundnut, tomato, potato and millet/sorghum have stabilized local and sub-regional supply and provided revenue in both income and subsistence terms. - Paddy rice production in the North province: - 2003: 12 800 tons - 2004: 17 100 tons, with almost a double output per hectare - 2005: 25 100 tons - Result: steady increase in farmers’ income. ### Poverty and living conditions (overview) - Analysis hypothesis: access to a number of commodities sufficiently reflects the standard of living of households. - EESI survey findings: - Main labor market problem is underemployment rather than under-occupation. - Informal sector provides the highest number of precarious jobs that do not generate enough income to improve living conditions. ### Access to housing (ownership and material indicators) - Households owning their houses: - 2001: urban 37.7, rural 76.6, Total 63.0 - 2005: urban 36.0, rural 71.9, Total 59.2 - Flush toilets: - 2001: urban 18.1, rural 1.5, Total 7.3 - 2005: urban 16.4, rural 1.7, Total 6.9 - Permanent flooring material: - 2001: urban 88.4, rural 28.2, Total 49.2 - 2005: urban 87.7, rural 35.7, Total 54.2 - Permanent wall material: - 2001: urban 51.8, rural 9.6, Total 24.4 - 2005: urban 60.6, rural 19.9, Total 34.3 - Permanent roofing material: - 2001: urban 99.5, rural 66.3, Total 77.9 - 2005: urban 99.4, rural 68.8, Total 79.6 - Air conditioner: - 2001: urban 1.9, rural 0.2, Total 0.8 - 2005: urban 1.7, rural 0.1, Total 0.7 - Sources: ECAM II: EESI – NIS - Interpretation: building construction materials improved by 2005 while installation of flush toilets and air conditioners regressed; recurrent charges deter convenience installations. ### Access to water, electricity, gas and the telephone - Safe drinking water: - 1996: 44.2 - 2001: 50.5 - 2005: 56.5 - Average annual progression: 1.2 points between 1996 and 2001; more than 1.5 points between 2001 and 2005. - Government target: 71 per cent access by 2015; present rate requires an increase of 1.5 points per year to reach target if confirmed. - Electricity lighting system: - 1996: 37.0 - 2001: 46.1 - 2005: 54.4 - 2005: slightly more than 5 for every 10 households used electricity; urban 9 for every 10 households, rural 3.5 for every 10. - Land telephone line: - 1996: 1.7 - 2001: 1.5 - Mobile telephone line: - 2001: 7.6 - 2005: 32.1 - Note: number of subscribers per household in urban areas exceeds two despite household-level rates. - Cooking gas: - 1996: 7.9 - 2001: 13.4 - 2005: 16.2 - 2005 increase partly due to installation of a cooking gas bottling factory in the Far North province. - Sources: ECAM II; EDS-III; EESI – NIS - Interpretation: steady improvements in access to safe water, electricity and cooking gas; mobile telephony expanded rapidly while landlines stagnated. ### Household acquisition of consumer durables - General finding: households acquired more consumer durables between 1996 and 2005, with disparities between urban and rural areas. - Trends for selected durables (in %): - Bicycle: 1996 12.6, 2001 12.7, 2005 16.6 - Motorcycle: 1996 6.0, 2001 4.0, 2005 6.6 - Motor vehicle/lorry: 1996 4.8, 2001 3.6, 2005 4.9 - Television: 1996 17.3, 2001 18.7, 2005 28.2 - Radio: 1996 57.9, 2001 54.7, 2005 63.5 - Refrigerator: 1996 12.5, 2001 9.5, 2005 9.3 - Deep freezer: 1996 4.0, 2001 3.8 - Fan: 2001 16.8, 2005 20.9 - Musical set: 1996 7.2, 2001 7.8 - Gas plate: 2001 12.9, 2005 17.4 - Gas cooker: 1996 7.2, 2001 6.5 - Sources: ECAM I; ECAM II; EESI – NIS - Interpretation: - Bicycle, television, fan and gas plate possession improved. - Motorcycle, vehicle and radio declined 1996–2001 then improved 2001–2005. - Access to gas cooker, refrigerator and deep freezer generally decreasing; shift to gas plate as substitute for gas cooker. - Decline in refrigerators/deep freezers may reflect avoidance of recurrent electricity charges and smaller household sizes. ### Urban poverty and living environment - Urban poverty affects close to 2 million people, concentrated mostly in Yaounde and Douala. - Access deficits in Yaounde and Douala: - Close to half of households not directly connected to electricity. - Three quarters do not have individual access to safe water. - Food insecurity: - Affects 92 per cent of the poor in urban areas. - Rapid urbanization: - Past twenty years annual growth rate ranged between 6 and 7 per cent. - Consequences: pockets of precarious neighbourhoods, proliferation of informal activities. - Risky urban habitat: - More than 60 per cent of such urbanized areas are liable to flooding. - Three fifths of neighbourhoods in Yaounde are built with non-permanent material. - Diagnostic report on 23 towns suggests poverty driven by: - Very few job creation and income-generating opportunities. - Lack of urbanization master plans; more than 80 per cent of urban lands neither registered nor occupied in an orderly manner. - Very poor access to basic urban services: less than 40 per cent of households connected to a safe water supply system; more than 85 per cent of the urban population use individual water treatment methods. - Increased insecurity and precariousness of life (various social ills listed). - Unemployment (2005): - ILO unemployment rate: overall 4.4 per cent; urban 10.7 per cent; rural 1.7 per cent. - Broader unemployment rate (including discouraged jobseekers): overall 6.2 per cent; urban 14.1 per cent; rural 2.7 per cent. - EESI 2005 estimates: Yaounde 17.9 per cent; Douala 16 per cent. ### Appraisal by beneficiaries and recommendations - Beneficiary perceptions: - 46.4 per cent of those interviewed, and 31.8 per cent of beneficiaries represented by spokespersons, view projects under execution in their area as vital. - For more than 25 per cent of projects, interviewees did not comment on expected impact. - For a little more than 6 per cent of projects, beneficiary representatives feel little or no impact. - More than 60 per cent of people interviewed consider identified projects acceptable or vital. - Complaints: poor quality of some works and limited contribution to improving living conditions; poor execution attributed to lack of contractor professionalism and weak contract selection, granting, monitoring and acceptance. - Beneficiaries’ recommendations: - Improve quality of works by: - (i) associating local councillors in monitoring and implementation of development projects; - (ii) increasing control of public contract execution; - (iii) involving local councillors and members of parliament in contract awarding and acceptance boards in their respective areas. - Continue social dialogue and improve governance and living conditions by: - (i) improving dialogue with local partners through a participatory process; - (ii) improving communication on the PRSP for better understanding; - (iii) stepping up the anti-corruption drive; - (iv) providing the population with information on projects to be executed in their localities ahead of time; - (v) improving communication on projects under execution. - Increase access to means of production by: - (i) promoting agriculture and income-generating projects; - (ii) increasing actions aimed at income-generating activities; - (iii) introducing administrative services for the supervision of SMEs and micro enterprises. - Accelerate granting autonomy to local public authorities by: - (i) speeding up decentralization through effective transfer of responsibilities to council authorities; - (ii) introducing measures to effectively grant financial autonomy to local public authorities; - (iii) supporting local public authorities in drafting development sector plans. ### Main constraints observed (sectoral and implementation) - Productive sector constraints limiting achievements: - (i) difficult access to factors of production (loans, appropriate farm tools, land); - (ii) difficulties in popularizing agricultural research; - (iii) farmer-grazier conflicts; - (iv) degradation of grazing land; - (v) insufficiency and inappropriateness of micro finance institutions; - (vi) high energy and agricultural input costs. - Infrastructure constraints: - (i) negative effects of delays in contract execution due to lack of professionalism by contracting authorities; - (ii) cash-related problems faced by bidders. - Social and governance sector constraints: - (i) insufficient means in the social sector despite growing needs; - (i) laxity in application of public contract regulations; - (ii) conflicts between central and decentralized management of projects causing poor project programming across provinces; - (iii) poor mastery by public contracts boards of tender specifications; - (iv) poor mastery by local development stakeholders of the HIPC funds management manual. - Note: efforts made in 2005 regarding sector strategy programmes, projects and instrument application, notably in implementation of good governance. *Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06260.pdf* ### 279. PRSP implementation has since April 2003 recorded major achievements which ### PRSP implementation has since April 2003 recorded major achievements which ### Major achievements and persistent constraints - PRSP implementation since April 2003 has produced more coherence in government action and integration in administrative management of strategic programming and planning tools, expected to lead to a more judicious and efficient use of human, material and financial resources. - However, a number of constraints continue to hinder better strategy implementation and reduce its impact. ### Sector strategy drafting and progress (2003–2005) - Sector strategies respond to the government's shift to management by results and planning by objectives, following the 2002 methodology (updated in 2005), participatory steering committees, and PRSP/MDG guidelines. - Completed or advanced sector strategy work in 2005: - Rural Sector Development Strategy Paper (RSDSP) and Social Development Strategy Paper (SDSP) finalized in 2005. - Education Sector Strategy Paper (ESSP) bringing together MINEDUB, MINESEC and MINESUP at an advanced stage; aligns with education law, MDG and other government commitments. - Priority ministries in 2005 accelerated strategy design: tourism, public works and buildings, telecommunications, energy. - Public works and buildings sector strategy reached the level of MTEF. - Tourism and telecommunications identified programmes and projects. - Energy: validation of means of production and electric energy transportation development master plan and the national energy poverty reduction action plan (NEPRAP). - Strategies predating the 8 December 2004 government reorganization are being revised (industry, transport and urban development, public service and administrative reforms). ### MINPLAPDAT recommendations for sector strategy drafting - Respect the laid down methodology; - Do everything to use the participatory approach; - Avoid designing public power-oriented development strategies without due regard to all partners and the sector’s national and international environment. Specifically, strategies should: - Associate representatives of ministries carrying out similar activities or involving external matters on Steering Committees; - Include on the Steering Committee all other actors and partners of the sector namely, private sector stakeholders, the civil society and development partners; - Identify programmes and projects to be funded and executed by the private sector and civil society. ### Constraints encountered in the sector strategy process - Organizational: - Steering committees are not present everywhere; where they exist they face problems of representation and effective participation. - Some partners fail to participate due to insufficient means for allowances, poor interpretation of the participatory approach, or administrations asserting autonomous management of their sector. - Government reorganization and personnel changes impeded progress and understanding of new ministry missions. - Technical: - The 2002 methodological guide by MINPLAPDAT was not sufficiently explicit on all strategy design aspects; the 2005 revised version needs appropriation across MINPLAPDAT (high personnel mobility) and sector ministries. - Budgetary: - Funds allocated for designing sector strategies are insufficient. - Strategy design requires hiring consultants and specialized planning skills, but funds and national procedures for hiring consultants or organizing seminars are inadequate. - Institutional: - Adoption and implementation procedures need strengthening. MINPLAPDAT together with bodies like CCTS-DSRP is central to adoption. - After adoption, strategies require implementation, monitoring, evaluation and revision; an appropriate coordinating body (reaffirming the planning ministry’s coordinator role) is necessary. ### Diagnostic summary (general situation as of 2005) - A generally dissatisfactory level of advancement because only one third of the institutions have a draft strategy at the diagnosis level; - Relatively insufficient external support (consultant) envisaged, explaining delays and generally poor quality of strategies; - Difficulties in mobilizing earmarked funds, which are somewhat insufficient to carry through the activity; - Need to improve the methodological guide and capacity-building for MINPLAPDAT staff whose youthful age requires capacity-building in planning beyond the strategy drafting process. ### MTEF, budget integration and timeline - Government needs all sector strategies to complete the medium-term framework for prioritizing actions, revising and budgeting the PRSP. - Drafting/updating strategies and drawing up/updating MTEFs are priorities to improve PRSP implementation and accelerate growth. - Designing of sector strategies relating to infrastructure (transport, urban development, etc.) in 2006 is expected to accelerate and boost industry and trade (trade, SMEs/SMIs, Social Economy, Technological, etc.). - In 2005 the government developed MTEFs for sectors with available strategies; this exercise will be extended to other sectors as strategies are drafted. - New provisions of the circular on budget preparation are under review; the government will take a decision to ensure application of these provisions as from 2006 for the preparation of the 2007 budget. - Strategies finalized need updating to fully play their expected role; examples follow. ### Examples of strategy updates and gaps - Tourism: Improve the concept and identification of the most outstanding tourist product to channel investments toward an attractive product and avoid dredging in resource allocation. - ICT: An “information and communication technologies” equipment and infrastructure programme to bridge the digital divide and address employment implications is still to be defined within the ICT strategy. - Agriculture inputs: An agricultural input development programme focusing on local raw material processing in the medium and long term is needed. - Public works: Tailor the earth road maintenance and opening programme to the geography of farming areas to facilitate market access. - Urban development/housing: Introduce a social housing programme addressing access to land, equipment of parcels with infrastructure and funding. - The Government will need support from national and foreign partners for completion work and supplementary studies. ### Common constraints in PRSP implementation and planned responses - Common constraints across priority sectors: - Human resources: qualitative and quantitative insufficiency. - Financial resources: insufficient allocations compared to needs, inappropriate disbursement procedures for external funds, little devolution of management responsibilities. - PRSP not fully integrated into state budget preparation due to unavailability of MTEFs. - Government intends to continue drafting, implementing and updating MTEFs in all priority areas. ### HIPC resource allocation and strengthening measures - Expert opinion among sector administrations views the current HIPC resource distribution approach as inopportune because it lacks long-term visibility of sector needs; concentrating resources on a few major nationwide projects might have had a better impact on growth (trans-national roads, deep sea ports, increasing energy capacity, etc.). - The government will maintain the mechanism requiring debt-relief resources to be deposited in a HIPC special account at BEAC and used with fixed procedures, and will take measures to strengthen it: - (i) auditing all arrears under the HIPC account during the first half year 2006; - (ii) reinforcing practical monitoring of project execution; - (iii) ensuring implementation of recommendations of the 2004 audit. ### Structural reforms, public corporations and privatization - Difficulties in ensuring stability derive from: (i) the high social cost of some structural reform measures; and (ii) the international economic environment. - Government resolved to reduce losses of state corporations that have burdened public finances. - For some largest corporations (CAMAIR, CAMPOST, CAMTEL, SNEC, CDC) the government will continue withdrawal and, in the very near future, end its ongoing privatization/restructuring process. ### Rural sector constraints, institutional observations and proposed solutions - Coverage of rural community development remains inadequate geographically. - Poor coordination of contract calendars with crop years and input procurement. - Limited access for many farmers to investment loans. - Institutional issues: - Poor technical capacity of private support organizations and few capacity-building measures for farmers when projects are mounted; - Opposite intervention approaches implemented in the same areas for the same target populations destabilize emerging farmer organizations; - Poor mastery of PRSP and RSDS by many public and private actors. - Funding issues: - Wide intervals between loan agreement entry into force and first disbursement (about a year); - Insufficient budgetary allocations for counterpart funds; - Poor consumption of external resources due to cumbersome procedures and extremely long supply periods. - Envisaged solutions (implemented in RSDS finalization) include: - (i) clearly outlining the role of each party at the time of drafting procedures and execution manuals; - (ii) improving the public investment budget structure and allocations set aside for counterpart resources and major investments; - (iii) improving appropriation of the RSDS finalization process by the main stakeholders; - (iv) resuming negotiations to better adapt to the peculiarities of agricultural production resulting from utilization of resources generated by debt relief; - (v) attaching projects/programmes to the different technical departments for better monitoring of actions undertaken. ### Agricultural production objectives by 2015 (as reported) - Table summary (Production in thousands of tons; Annual growth in %). Source: RSDS, Summary of the Agriculture and Rural Development aspect, p; 16 (culled from FAOSTAT data) - Cereals - 2001: 1341 - 2005 estimates: 1686 - 2010 projection: 2345 - 2015 projection: 3294 - Annual growth: 2001/2005: 5.9; 2005/2010: 6.8; 2010-2015: 7.0 - Root crops and tubers - 2001: 3517 - 2005 estimates: 3836 - 2010 projection: 4916 - 2015 projection: 6319 - Annual growth: 2001/2005: 2.2; 2005/2010: 5.1; 2010-2015: 5.2 - Leguminous plants - 2001: 263 - 2005 estimates: 300 - 2010 projection: 402 - 2015 projection: 538 - Annual growth: 2001/2005: 3.4; 2005/2010: 6.0; 2010-2015: 6.0 - Oil seeds - 2001: 209 - 2005 estimates: 239 - 2010 projection: 321 - 2015 projection: 430 - Annual growth: 2001/2005: 3.4; 2005/2010: 6.1; 2010-2015: 6.0 - Vegetables - 2001: 1278 - 2005 estimates: 1405 - 2010 projection: 1837 - 2015 projection: 2400 - Annual growth: 2001/2005: 2.4; 2005/2010: 5.5; 2010-2015: 5.5 - Fruits - 2001: 2019 - 2005 estimates: 2282 - 2010 projection: 3067 - 2015 projection: 4076 - Annual growth: 2001/2005: 3.1; 2005/2010: 6.1; 2010-2015: 5.9 - Palm oil - 2001: 140 - 2005 estimates: 177 - 2010 projection: 248 - 2015 projection: 350 - Annual growth: 2001/2005: 6.1; 2005/2010: 7.0; 2010-2015: 7.1 - Cocoa - 2001: 123 - 2005 estimates: 140 - 2010 projection: 188 - 2015 projection: 280 - Annual growth: 2001/2005: 3.3; 2005/2010: 6.1; 2010-2015: 8.3 - Arabica coffee - 2001: 10 - 2005 estimates: 10 - 2010 projection: 13 - 2015 projection: 15 - Annual growth: 2001/2005: 0.0; 2005/2010: 5.4; 2010-2015: 2.9 - Robusta coffee - 2001: 50 - 2005 estimates: 50 - 2010 projection: 72 - 2015 projection: 93 - Annual growth: 2001/2005: 0.0; 2005/2010: 7.6; 2010-2015: 5.3 - Cotton - 2001: 220 - 2005 estimates: 270 - 2010 projection: 330 - 2015 projection: 400 - Annual growth: 2001/2005: 5.3; 2005/2010: 4.1; 2010-2015: 4.0 ### Constraints in the productive sector and envisaged actions - Main constraints to competitiveness: - (i) inadequate capacity to produce energy; - (ii) lack of incentives for private investments due to delay in implementing the investment charter; - (iii) inadequate communications and ICT infrastructure development; - (iv) lack of a funding and credit guarantee structure particularly for the funding of SMEs/SMIs; - (v) poor private sector organization. - Actions envisaged to lift these constraints: - (i) streamlining procedures by establishing enterprise formality centres; - (ii) developing communication infrastructure to facilitate mobility of business people and products and reduce integrated service costs; - (iii) increasing energy supply at affordable prices; - (iv) improving the judicial system to restore investor confidence; - (v) accelerating establishment of institutions set up by the investment charter and drafting sector codes. *Translated sections and content as presented in the source.* ### 303. Cameroon’s public authorities genuinely think that the implementation of the ### Cameroon’s public authorities genuinely think that the implementation of the ### Private sector development and Douala Stock Exchange (DSX) - Strategic focus to develop competitiveness of Cameroonian enterprises by: (i) re-launching private investment; (ii) regulating markets; (iii) improving the business environment (roads, energy, ICT, government). - DSX start has been timid; identified constraints include: - indifferent attitude of some banks to the Stock Exchange; - failure to respect government instructions on zero coupon Treasury bonds; - delays in transferring some government shares held by the National Investment Corporation. - Actions undertaken to address inadequacies: - drafting of a business plan for the enterprise and partner visits for sensitization; - promotional activities for enterprises whose shares have to be traded on the Stock Exchange: ALUBASSA, CNIC, SAFACAM, SEMC, SOCATRAL, SOSUCAM; - transfer to the DSX of the State’s real estate rights on part of the SOCAR building evaluated to cost CFAF 500 million and obtained from the NSIF, CAA, CSPH and SNI; - introduction of a supplementary loan worth CFAF one thousand million; - withdrawal of the exclusive right granted to banks to perform the duty of investment service supplier. - DSX plans for first semester of the 2006 financial year: - (i) transfer shares and introduce them to the share list of SEMC, SAFACAM, SOSUCAM, Standard Chartered Bank enterprises; - (ii) issue bonds for SOCAPALM, HEVECAM, and AES SONEL. ### Tourism sector - December 2005 tourism sector strategy paper sets overall goal: tourism sector to effectively contribute to improving economic growth and alleviating poverty by promoting and organizing internal tourism and attracting a target number of not less than 3 500 000 international tourists over the next three years. - Planned emphases to achieve objectives: - development of accommodation facilities; - improvement of air transport services; - development of internal tourism; - development of national parks; - finalization of studies on the establishment of a national tourism board. ### Public works, buildings, and roads - Main difficulties: - lack of reliable statistics on the ‘building’ sub sector; - financial constraints for road projects: budgetary allocations failed to reach PRSP-provided levels; unpaid arrears (notably payments for services provided in 2004 on the Public Investment Budget or HIPC funds) have accrued; - weakened enterprises reduced capacity to pre-finance projects, compromising on-going endeavours; - enterprises report lacking material, financial and human capacities; industrial situation at MATGENIE affected realization of road maintenance works in output and execution time frame. - Government response and plans: - sector strategy to focus on (i) improvement of condition and extension of road network and (ii) enhancing performance of the construction industrial sector; - reform of the Road Fund to secure and increase resources and broaden competence in road network rehabilitation and development; - budgetary allocation for the Road Fund increased from CFAF 35000 million in 2004 to 40000 million in 2005; - ongoing restructuring at MATGENIE expected to improve civil engineering equipment supply and reduce execution time for road maintenance projects. ### Regional integration - Major challenges: delays in implementing agreements included in treaties of regional institutions and decisions by governing bodies; free movement of people and goods remains a major requirement for creating a true regional job market. - Proposed actions: - Cameroon should implement a strategy to spur dynamics of sub regional integration through community reforms or initiatives to spur regional integration; - potential unilateral policy: abolish entry visas for all CEMAC nationals, without expecting same in return. ### Urban development - Difficulties in designing and implementing the urban development sector strategy mainly due to insufficient urban sector statistical data. - Urban sector diagnosis (validated last November) findings: - urban sector development in disharmony due to poor intervention capacity of institutional actors, insufficiency of human and financial resources, little participatory urban governance, scarce/costly/poorly ensured urban services, inadequate supply of decent housing, inappropriate management of the environment; - consequences: regression in urban production, stagnation in urban revenue, exposure of population to risks, and aggravated poverty. - Priority actions and future initiatives: - State’s renewed financial commitment in the sector; - updating urban development management papers and instruments; - entrusting councils with responsibility of managing local affairs; - specific initiatives: (i) continuing institutional and sector reforms; (ii) building programming capacities of councils; (iii) developing urban contracts; (iv) introducing council poverty alleviation programmes; (v) promoting co-operation between councils and the State on land reserve issues; (vi) building capacities of councillors and civil society. ### Institutional and governance reforms - Ongoing obstacles affecting institutional and governance improvements: - insufficient human resources given workload from reform implementation; - complexity and peculiarity of some reforms; - institutional coordination issues due to transversal and inter-ministerial nature of governance measures. - Authorities’ approach: - continue implementing governance measures with emphasis on outcomes; - adoption of phase II of the National Programme on Governance (NPG phase II) with priority to identify major value-adding actions in Cameroon’s economic and social development policy. - Administrative reforms: - strategy to streamline and rationalize services, emphasize coordination, and shift provision of goods and services to grassroots administrations; - SIGIPES deployment in remaining ministries subject to equipment availability, assignment of necessary human resources, extension and allocation of required financial resources; - inclusion of SISPER (staff salary management system) in SIGIPES being considered to master the wage bill. - Justice sector actions: - equip and build capacity of Ministry of Justice to manage and supervise public service of justice, execute court rulings, guarantee unity and coherence between civil and criminal laws; - build capacities of Yaounde and Douala courts via modernization and computerization of their registries. - Economic and financial management improvements: - ameliorate budget presentation framework to better programme investments; - improve expenditure accounting process; - activate external expenditure auditing bodies; - build capacity of revenue offices; - action plan (to be implemented in 2006) addressing weaknesses in public contracts awarding system, including levying penalties upon violations. - Decentralization and devolution short-term plans: - (i) pass a law outlining rules governing election of regional councillors; - (ii) establish supervisory institutions (National Council on Decentralization, local services inter-ministerial committees); - (iii) proceed with council tax reforms and capacity-building of local financial and taxation services; - (iv) implement training and information programmes for actors of decentralization. - Anti-corruption actions: - (i) organization of a national forum on corruption; - (ii) re-organization of the anti-corruption observatory to render it independent; - (iii) revision of the government’s anti-corruption plan. ### Macroeconomic prospects and fiscal priorities - Policy orientation: - prudent budgetary and monetary policies aim to contain inflation at 2 per cent and maintain a bearable balance of payments and foreign debt. - Projections and debt: - projected current foreign deficit will increase to close to [4] per cent of the GDP in the medium term, reflecting increased import needs and drop in oil exports. - Debt indicators are supposed to reduce to bearable levels in 2006 and continue to improve with debt relief at the completion point of the HIPC initiative. - Growth and sectoral outlook (2005/2008): - non-oil activity expected to produce an annual growth rate of 4.4 per cent on average; - petroleum sector: projected cumulative drop of 16 per cent over the 2005/2008 period in volume, but earnings from petroleum exploitation will continue to increase due to high oil prices. - private investment expected to increase progressively as public services improve and confidence is restored. - Revenue and budgetary measures: - government intends to sustain its budget through supplementary mobilization of non-oil revenue; - 2006: renewed budgetary equilibrium expected through improvement in non-oil earnings; - 2006 budget foresees an increase in non-oil revenue by [0.4] percentage point of the non-oil GDP (all things being equal) to mobilize internal resources for priority expenditures and strengthen the income base. - 2006 budget allocation priorities (percentage increases): - MINJUSTICE: increase by 13.5 per cent; - Infrastructure ministries: MINTP increase by 25.5 per cent, MINDUH by 11.3 per cent, MINPOSTEL by 12.5 per cent, MINEE by 3.3 per cent; - Social expenditure: health will record an 11 per cent increase, secondary education 6.2 per cent, primary education 9.4 per cent, labour and social security 30.8 per cent, employment and vocational training 51 per cent. - Private sector and natural resource management budgets: - budget allocated to ministry responsible for SMEs to increase by 270 per cent; - MINIMIDT’s budget to be increased by 88 per cent; - budgets to promote environmentally sustainable development of natural resources: MINEP increase by 251 per cent and MINFOF by 5.2 per cent. *Source: IMF staff report content (translated from French).* --- _Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/scr/2006/_cr06260.pdf_