Statement by IMF Deputy Managing Director Kenji Okamura at the Conclusion of Meetings with the Cameroon and with the CEMAC Authorities
IMF News, March 17, 2023
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Bibliographic details
- Published: March 17, 2023
Meetings and context
- Location and dates: Yaoundé, Cameroon; meetings on March 15-16, 2023.
- Press Release No.: 23/77.
- Purpose: Conclusion of meetings with the Cameroon and with the Central African Economic and Monetary Community (CEMAC) authorities and assessment of economic program and regional challenges.
Cameroon — assessment and program status
- IMF Executive Board action: Successful conclusion of the third review of the authorities’ economic program supported by the IMF’s Executive Board on March 8.
- Cameroonian authorities’ approach: Continued implementation of the program "to maintain stability and promote growth" despite a challenging macroeconomic environment.
- Senior officials met:
- Ferdinand Ngoh Ngoh, Minister of State and Secretary General of the Presidency
- Joseph Dion Ngute, Prime Minister
- Paul Louis Motaze, Finance Minister
- Alamine Ousmane Mey, Minister of Economy, Planning and Regional Development
- Key focus areas discussed:
- Government’s development agenda and broader economic challenges.
- Two priorities: (i) promoting inclusive and resilient growth via diversification toward non-oil exports; (ii) creating additional fiscal space to finance priority expenditures.
Priority 1 — Inclusive, resilient and diversified growth
- Objectives:
- Promote inclusive growth "to improve the well-being of all Cameroonian people."
- Diversify the economy to "make long-term growth more resilient" against commodity shocks.
- Structural reforms highlighted:
- Improving the business climate.
- Strengthening financial inclusion.
- Improving governance and anti-corruption measures.
- Role of the private sector: Emphasized as "the primary motor" of growth, with reforms to unlock potential.
Priority 2 — Creating additional fiscal space
- Three ways to create fiscal space to finance priority expenditures (infrastructure, health, education):
- (i) Implement reforms to boost budget revenues and exports, such as broadening the tax base to the informal sector and improving the efficiency of public expenditure.
- (ii) Focus on productive expenditures, such as key infrastructure projects.
- (iii) Rely on longer-term and more concessional loans.
CEMAC regional discussions and considerations
- Meetings and events:
- Meeting with Mr. Abbas Mahamat Tolli, Governor of the Bank of Central African States (BEAC).
- Participation in a panel at the Regional Institute of Statistics and Applied Economics (ISSEA), chaired by Dr. Francial Libengue, with interventions from Mr. Paul Tasong, Mr. Abbas Mahamat Tolli, and Mr. Jean Claude Ngeumeni.
- Regional macroeconomic context:
- The CEMAC region is "heavily reliant on oil exports."
- The region benefited from the surge in global oil prices but faces a sharp increase in domestic inflation "originating from external sources."
- Key regional challenge: Keep inflation in check and preserve fiscal and external stability, without undercutting the nascent recovery.
- Policy guidance for the region:
- Use high oil prices to save part of the oil revenue windfall and build up foreign exchange reserves.
- Monetary policy needs to act proactively to keep inflation in check.
- Maintain a strategy that preserves macroeconomic stability while protecting the most vulnerable and strengthening food security.
- Structural and development priorities:
- Continue CEMAC reform program priorities that support inclusive and diversified growth.
- Governments should improve the business environment, undertake structural reforms, and construct key public infrastructure.
- Continue building human capital through education and meaningful employment to sustain diversification.
- Expand intra-CEMAC trade by reducing trade barriers.
- Accelerate inclusive financial sector development to broaden financial intermediation and support business activity.
Conclusions and outlook
- Tone of engagements: Discussions with Cameroonian and CEMAC authorities were described as "substantive and constructive" and "frank, constructive, and informative."
- Forward-looking intent: The IMF looks forward to further strengthening its relationship with Cameroon and the CEMAC region and its institutions.
- Personal note: Mr. Okamura will "leave Yaoundé with fond memories of the country and the region and its welcoming people."
Source: Statement by IMF Deputy Managing Director Kenji Okamura at the Conclusion of Meetings with the Cameroon and with the CEMAC Authorities, March 17, 2023.