IMF Executive Board Completes Fourth Reviews of Extended Credit Facility and Extended Fund Facility Arrangements for Cameroon and Approves US$73.6 Million Disbursement

June 29, 2023

  • The IMF Executive Board completed the Fourth Reviews under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements. This allows for an immediate disbursement of about US$73.6 million.
  • Cameroon’s economic recovery has continued in an uncertain domestic and global environment, with growth estimated at 3.8 percent in 2022 and expected to reach 4 percent in 2023, supported mainly by non-oil production.
  • Sustained reforms will be needed to create additional fiscal space for productive investment and social spending, while maintaining debt sustainability and boosting Cameroon’s growth and resilience.

Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed today the Fourth Reviews of Cameroon’s Fund-supported program. The three-year blended arrangements under the Extended Credit Facility(ECF) and the Extended Fund Facility (EFF) approved on July, 29, 2021 seek to support the country’s economic and financial reform program (see press release ). The completion of the reviews allows for the immediate disbursement of SDR 55.2 million (about US$73.6 million) bringing total disbursements under the arrangements to SDR 372.6 million (around US$493.6 million).

Cameroon is showing resilience in an uncertain domestic and global environment. Growth is estimated at 3.8 percent in 2022, supported by non-oil production. Headline inflation is estimated at 7.3 percent at end-2022 year-on-year. The overall fiscal deficit improved from 3 percent of GDP in 2021 to around 1.1 percent of GDP in 2022 reflecting higher oil and non-oil revenues. The non-oil primary deficit remained unchanged at around 3.9 percent of GDP in 2022 owing to an increase in expenditure on fuel subsidies.

The medium-term outlook remains positive, provided reforms continue and the external environment becomes more supportive. Real GDP growth is expected to reach 4 percent in 2023 and to average 4.4 percent in the medium term. This improvement is driven by the agroindustry, forestry, and services sectors, as well as LNG production, which is projected to partially offset declining oil output. Inflation is expected to return to below 3 percent in the medium term.

In completing the reviews, the Executive Board approved the waiver of nonobservance of the performance criterion on the non-accumulation of new external payments arrears on grounds that the breach was temporary and minor.

At the conclusion of the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, made the following statement:

“Cameroon’s recovery has continued in a challenging domestic and external environment.The ECF and EFF arrangements have supported the authorities’ efforts to sustain macroeconomic stability, promote growth, and progress on longstanding reforms. The country’s medium-term outlook remains favorable, despite increasing challenges. Resolute reform implementation will help manage current shocks, while boosting growth and resilience.

“Cameroon’s performance under the program is mixed. The quantitative performance criterion on the accumulation of external arrears experienced further minor and temporary breaches in early 2023, and three of five indicative targets under the program have been repeatedly missed . While structural reforms continue to be slow, the authorities have made welcome progress in some key areas, including governance and revenue administration. Continued implementation of corrective measures to address missed targets and accelerate reforms will be crucial.

“The authorities are committed to maintaining a fiscal consolidation path consistent with program objectives. Additional room for productive investment and social spending can be created through efforts to increase domestic non-oil revenue mobilization, enhance investment efficiency, improve public financial management, and gradually phase out fuel subsidies, while mitigating the impact on the vulnerable. The authorities are also committed to limiting non-concessional financing and preventing accumulation of external and domestic arrears. Improving cash management and limiting spending through exceptional procedures will be important in this regard.

“To unlock Cameroon’s abundant growth potential, structural reforms need to be accelerated. Steps to boost private sector-led growth, including the launch of the financial inclusion strategy, as well as recent steps to strengthen governance, especially the launch of a broad diagnostic of economic governance and plans to strengthen the Supreme Court’s Audit Bench, are welcome.

“However, further measures are needed to improve the business climate, including by strengthening financial sector stability and inclusion. These should be accompanied by actions to strengthen governance and transparency, as well as the anti-corruption framework, including addressing the AML/CFT framework deficiencies identified by the Financial Action Task Force (FATF). “

Table 1. Cameroon: Selected Economic and Financial Indicators, 2021-28

(CFAF billion, unless otherwise indicated)

2021

2022

2023

2024

2025

2026

2027

2028

Est.

3rd Rev.

Est.

3rd Rev.

Proj.

Proj.

Proj.

Proj.

Proj.

Proj.

(Annual percentage change, unless otherwise indicated)

National account and prices

GDP at constant prices

3.6

3.4

3.8

4.3

4.0

4.2

4.4

4.5

4.5

4.6

Oil GDP at constant prices

-3.2

-5.1

1.9

0.7

-1.8

-1.3

-1.4

-1.0

-0.6

-0.4

Non-Oil GDP at constant prices

3.8

3.6

3.8

4.4

4.1

4.3

4.6

4.6

4.6

4.7

GDP deflator

3.3

4.6

5.7

4.8

2.7

2.7

2.3

1.3

1.3

1.4

Nominal GDP (at market prices, CFAF billions)

25,158

27,210

27,591

29,749

29,457

31,521

33,691

35,661

37,760

40,066

Oil

801

1,073

1,152

907

872

797

761

735

716

702

Non-Oil

24,357

26,137

26,439

28,841

28,585

30,724

32,930

34,926

37,044

39,364

Consumer prices (average)

2.3

5.3

6.3

5.9

6.2

4.8

3.0

2.3

2.0

2.0

Consumer prices (eop)

3.5

6.0

7.3

5.7

5.9

3.7

2.3

2.1

2.0

2.0

Money and credit

Broad money (M2)

17.2

11.4

11.4

8.1

9.0

8.0

7.2

7.0

7.0

7.0

Net foreign assets 1/

4.3

7.7

7.7

1.0

2.9

0.7

1.7

2.0

1.4

1.9

Net domestic assets 1/

12.9

3.6

3.6

7.0

6.1

7.3

5.5

5.0

5.7

5.1

Domestic credit to the private sector

9.7

13.6

13.6

8.8

10.4

9.2

7.6

7.0

7.0

7.0

(Percent of GDP, unless otherwise indicated)

Savings and investments

Gross national savings

14.0

15.9

16.3

15.9

15.6

16.1

17.1

17.5

18.4

19.2

Gross domestic investment

17.9

17.4

18.1

18.8

18.5

19.2

19.8

20.4

21.3

22.2

Public investment

4.5

5.2

4.6

5.0

5.0

5.4

5.8

6.4

6.8

7.0

Private investment

13.4

12.2

13.5

13.8

13.5

13.7

14.0

14.1

14.5

15.2

Central government operations

Total revenue (including grants)

14.0

16.1

16.0

15.5

15.9

15.5

15.3

15.3

15.3

15.4

Oil revenue

1.9

3.6

3.5

2.8

2.9

2.1

1.8

1.7

1.6

1.5

Non-oil revenue

11.8

12.0

12.1

12.4

12.7

13.1

13.3

13.5

13.7

13.9

Total expenditure

16.9

18.0

17.1

16.2

16.7

16.1

15.7

16.0

16.3

16.4

Overall fiscal balance (payment order basis)

Excluding grants

-3.2

-2.4

-1.5

-1.1

-1.1

-1.0

-0.6

-0.9

-1.1

-1.0

Including grants

-3.0

-1.8

-1.1

-0.8

-0.8

-0.6

-0.3

-0.7

-1.0

-1.0

Overall fiscal balance (cash basis)

Excluding grants

-2.7

-2.8

-1.6

-1.6

-2.4

-1.8

-1.2

-1.3

-1.1

-1.0

Including grants

-2.4

-2.3

-1.2

-1.3

-2.0

-1.5

-0.9

-1.2

-1.0

-1.0

Non-oil primary balance (payment order basis)

-3.9

-4.5

-3.9

-2.4

-2.5

-1.7

-1.1

-1.4

-1.5

-1.5

External sector

Trade balance

-1.1

0.4

0.1

-1.3

-1.4

-1.6

-1.4

-1.6

-1.7

-1.8

Oil exports

4.9

7.1

7.8

5.4

5.2

4.5

4.2

3.7

3.3

2.9

Non-oil exports

8.3

8.9

8.0

8.0

8.2

8.0

8.1

8.2

8.3

8.5

Imports

14.4

15.7

15.6

14.7

14.8

14.1

13.8

13.5

13.2

13.2

Current account balance

Excluding official grants

-4.2

-2.2

-2.2

-3.2

-3.3

-3.1

-2.9

-2.9

-3.0

-3.0

Including official grants

-4.0

-1.6

-1.8

-2.8

-2.9

-3.0

-2.7

-2.9

-2.9

-3.0

Terms of trade

9.4

3.6

-6.8

-8.4

-7.6

-1.6

0.2

-4.0

-4.1

-4.1

Public debt

Stock of public debt

46.8

46.4

45.5

42.8

43.2

41.1

38.8

37.3

36.2

35.2

Of which: external debt

31.7

32.7

30.9

30.5

30.7

29.7

28.7

28.2

27.8

27.8

Sources: Country authorities; and IMF staff estimates and projections.

1/ Percent of broad money at the beginning of the period.

IMF Communications Department
MEDIA RELATIONS

PRESS OFFICER: Nico Mombrial

Phone: +1 202 623-7100Email: MEDIA@IMF.org

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