An International Monetary Fund (IMF) team, led by Ms. Corinne Deléchat,
visited Yaoundé from February 20–March 6, 2017, to hold discussions toward
a three-year economic and financial program for Cameroon.
At the conclusion of the visit, Ms. Deléchat issued the following
statement:
“The IMF team and the Cameroonian authorities started discussing an
economic program through 2019 that would lay out a path to sustained
economic recovery and higher and more inclusive growth. The team follows
the December 23 summit in Yaoundé, where CEMAC heads of state agreed that a
resolute and concerted effort to preserve macroeconomic stability in the
region was necessary, and to initiate discussions with the IMF and other
development partners as part of a path toward the resolution of the
region’s economic challenges.
“The sharp decline in commodity prices, along with security threats in the
Lake Chad basin and, until recently, civil unrest in the neighboring
Central African Republic, have negatively impacted Cameroon’s external and
fiscal balances. While the Cameroonian economy has weathered these shocks
thus far, with economic growth remaining relatively robust, public debt has
risen rapidly and external and fiscal buffers have declined significantly.
In light of this difficult context, which is deeply affecting all CEMAC
countries, decisive fiscal and debt management policies are needed to
preserve macroeconomic stability. At the same time, ambitious structural
measures are critical to boost private sector investment and support
inclusive growth.
“The medium-term economic outlook remains positive, as Cameroon enjoys a
relatively diversified economy, and key infrastructure projects such as the
Lom Pangar hydroelectric dam, the deep sea port of Kribi and the Kribi gas
plant, are coming on stream. That outlook is subject to continued
implementation of policies to increase non-oil domestic revenue,
rationalize spending while preserving pro-growth and pro-poor expenditures,
and adopt sound and prudent debt management policies. The IMF staff team
noted that the 2017 Finance Law already represents an important step in
this direction, and encouraged the authorities to continue to expand the
non-oil tax base and enhance spending efficiency, in particular by
prioritizing investment spending with the highest growth dividends. Staff
emphasized the need to protect and even increase social spending in favor
of the most vulnerable groups, and welcomed the authorities’ plans to scale
up their successful social safety nets program. Given the rapid increase in
public debt, a particular focus should be given to reducing the pace of new
borrowing, particularly on non-concessional terms.
“The team and the authorities have made good progress in discussing
measures to strengthen economic outcomes, enhance the business environment
to boost private sector investment and economic diversification, and
achieve a more inclusive growth. Discussions will continue in the coming
days to reach a common understanding on the full set of policies that could
form the basis for an economic program supported by the IMF.
“The team met with Minister Secretary General at the Presidency Ferdinand
Ngoh Ngoh, Minister Secretary General at the Prime Minister’s Office
Seraphin Fouda, Minister of Finance Alamine Ousmane Mey, Minister of
Economy, Planning, and Territorial Development Louis Paul Motaze, the
Governor of the Bank of Central African States (BEAC), Mahamat Abbas Tolli
and other senior officials and representatives of the diplomatic community,
development partners and private sector.
“The team wishes to thank the Cameroonian authorities for their warm
hospitality, their excellent cooperation, and the constructive and frank
dialogue.”
