Frequently Asked Questions on Cameroon
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The new program
- The IMF is providing policy advice and financing to support the government’s program to achieve a rapid post-pandemic recovery, strengthen macroeconomic stability, and implement structural reforms to achieve more inclusive and diversified growth.
- The new three-year arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) amount to SDR 483 million (about US$ 689.5 million, or 175 percent of Cameroon’s quota).
- The IMF Executive Board approved the program on July 29, 2021, which makes available the first disbursement of $177.2 million.
- Subsequent disbursements are subject to review, which are scheduled, at most, six months apart; these reviews assess the government’s progress in implementing its economic reforms.
Goals of Cameroon’s program
- Central aim: avoid a sudden contraction in the spending needed to fight the pandemic and, once the crisis abates, decisively implement measures to increase non-oil revenue and resume fiscal consolidation.
- Accelerate structural reforms to achieve economic diversification, gender equality, financial sector stability and inclusion, and a greener economy.
- The program is organized around five pillars to help achieve sustained, more inclusive and diversified growth, and to catalyze private investment and donor financial support.
- The program will seek to:
- mitigate the health, economic, and social consequences of the COVID-19 pandemic while ensuring macroeconomic stability;
- reinforce good governance, and strengthen transparency and anti-corruption efforts;
- accelerate structural fiscal reforms to modernize tax and customs administrations, mobilize revenue, improve public financial management, increase investment efficiency, and reduce fiscal risks from state-owned enterprises;
- strengthen debt management and reduce debt vulnerabilities;
- implement structural reforms to accelerate private sector-led economic diversification and boost financial sector resilience.
Governance and anti-corruption agenda
- Promoting good governance is an essential part of the IMF’s engagement with the Cameroonian authorities.
- Emergency financing provided under the Rapid Credit Facility (RCF) in 2020 helped Cameroon meet emergency financing needs arising from the COVID-19 pandemic; emergency financing is not subject to conditions like other IMF programs.
- To ensure emergency financing supports the pandemic response and to strengthen transparency, the IMF often requests audits of COVID-19-related spending.
- In Cameroon, the IMF requested:
- an audit by the Supreme Court’s Audit Bench and its submission to IMF staff, the Prime Minister, the Senate and the National Assembly;
- the publication of COVID-19 procurement information, including beneficial ownership;
- the publication of a report on COVID-19-related expenditures.
Transparency and institutional measures under the program
- The IMF required that the three conditions listed above were met before approval of the new ECF-EFF program.
- The program aims to help Cameroon further strengthen accountability and support anti-corruption efforts by enhancing the legal and institutional frameworks needed to produce publicly-disclosed audits.
- The IMF is working with the authorities on a new capacity development tool aimed at building the institutional capacity of Supreme Audit Institutions such as the country’s Audit Bench.
- Public availability of the Audit Bench report is intended to support effective follow-up by appropriate institutions in Cameroon, including addressing shortcomings in control and oversight and actions to further investigate and sanction administrative and criminal violations.
- Going forward, surveillance missions, program reviews, and technical assistance by the IMF will help strengthen governance, transparency, and accountability; IMF staff will continue to engage with the authorities and all stakeholders to promote good governance and anti-corruption.
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