IMF Executive Board Approves US$183.4 million under the Resilience and Sustainability Facility for Cameroon

IMF News, January 29, 2024

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IMF Executive Board Approves US$183.4 million under the Resilience and Sustainability Facility for Cameroon

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• Published: January 29, 2024

RSF arrangement: scope and objectives

• The Executive Board approved an 18-month Resilience and Sustainability Facility (RSF) arrangement for Cameroon equivalent to US$183.4 million (SDR 138 million, 50 percent of quota).
• Disbursements to start when the First Review of the arrangement is completed.
• The RSF aims to support Cameroon’s adaptation to and mitigation of climate change, replace more expensive financing, reinforce engagement of development partners, and catalyze additional climate finance.
• RSF-supported reforms will:
  • Strengthen the institutional framework for governance and policy coordination related to climate change.
  • Mainstream the climate agenda into public financial management.
  • Enhance national adaptation policies and step up mitigation efforts.
  • Strengthen the national disaster risk management framework.
  • Leverage fiscal management in forestry as a climate mitigation policy.

Context and rationale

• Cameroon is described as highly vulnerable to climate change and a fragile and conflict-affected state, facing substantial risks from recurrent droughts, floods, landslides, and coastal erosion.
• Climate risks pose an imminent threat to livelihoods and potentially significant output losses, with consequences for food insecurity, conflicts, poverty, inequality, and population displacements.
• Addressing climate change is an important priority in Cameroon’s national development strategy; the country is signatory of COP21 and other key international conventions on climate change.

Expected benefits and implementation considerations

• A resolute implementation of RSF reforms is expected to:
  • Improve Cameroon’s medium-term climate policy stance.
  • Replace more expensive financing and augment buffers against climate shocks and related prospective balance-of-payment needs.
  • Catalyze other climate financing.
• Capacity development efforts and close coordination among government entities and development partners involved in Cameroon’s climate agenda will be important.
• The RSF arrangement coincides with the remaining 18 months under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements approved in July 2021 and extended in December 2023.

Selected economic and financial indicators, 2021–28 (CFAF billion, unless otherwise indicated)

• Note: (Annual percentage change, unless otherwise indicated)
• National account and prices
  • GDP at constant prices: 2022 Est. 3.6; 2023 5th Rev. 4.0; 2024 Proj. 4.3; 2025 4.5; 2026 4.6.
  • Oil GDP at constant prices: 2022 2.1; 2023 0.5; 2024 2.7; 2025 1.3; 2026 0.2.
  • Non-Oil GDP at constant prices: 2022 4.1; 2023 4.7.
  • GDP deflator: 2022 6.3; 2023 3.1; 2024 3.5; 2025 2.6; 2026 1.7.
  • Nominal GDP (at market prices, CFAF billions): 2022 27,702; 2023 29,704; 2024 32,063; 2025 34,822; 2026 37,515; 2027 40,216; 2028 42,770.
  • Oil (nominal GDP component): 2022 1,155; 2023 957; 2024 976; 2025 939; 2026 900; 2027 866; 2028 837.
  • Non-Oil (nominal GDP component): 2022 26,548; 2023 28,747; 2024 31,088; 2025 33,884; 2026 36,615; 2027 39,349; 2028 41,933.
  • Consumer prices (average): 2022 7.2; 2023 5.9; 2024 5.5; 2025 4.9; 2026 3.4; 2027 2.5.
  • Consumer prices (eop): 2022 7.3; 2023 6.2; 2024 5.2; 2025 2.0.
• Money and credit
  • Broad money (M2): 2022 11.4; 2023 9.0; 2024 8.4; 2025 7.6; 2026 7.4; 2027 7.1.
  • Net foreign assets 1/: 2022 7.7; 2023 1.6; 2024 -0.8; 2025 3.2; 2026 6.0; 2027 2.2.
  • Net domestic assets 1/: 2022 9.8; 2023 5.3; 2024 2.4; 2025 4.4.
  • Domestic credit to the private sector: 2022 13.6; 2023 11.2; 2024 9.5.
• Savings and investments (Percent of GDP, unless otherwise indicated)
  • Gross national savings: 2022 15.3; 2023 15.6; 2024 16.2; 2025 17.0; 2026 17.3; 2027 18.3; 2028 19.1.
  • Gross domestic investment: 2022 18.7; 2023 18.6; 2024 19.0; 2025 19.4; 2026 20.1; 2027 20.9; 2028 21.8.
  • Public investment: 2022 6.6; 2023 7.5.
  • Private investment: 2022 14.1; 2023 13.9; 2024 13.7; 2025 13.5; 2026 13.8; 2027 14.4.
• Central government operations
  • Total revenue (including grants): 2022 15.9; 2023 16.0; 2024 15.5; 2025 15.7; 2026 15.8.
  • Oil revenue: 2022 2.9; 2023 1.9; 2024 1.8.
  • Non-oil revenue: 2022 12.1; 2023 12.7; 2024 13.1; 2025 13.3; 2026 14.0.
  • Non-oil revenue (percent of non-oil GDP): 2022 12.6; 2023 14.3.
  • Total expenditure: 2022 17.1; 2023 16.6; 2024 16.3; 2025 16.4; 2026 16.7.
  • Overall fiscal balance (payment order basis) Excluding grants: 2022 -1.5; 2023 -1.0; 2024 -0.7; 2025 -0.6; 2026 -0.9.
  • Overall fiscal balance (payment order basis) Including grants: 2022 -1.1; 2023 -0.4.
  • Overall fiscal balance (cash basis): 2022 -1.6; 2023 -2.3; 2024 -1.4; 2025 -2.0; 2026 -1.2; 2027 -1.9; 2028 -1.3; (note: an additional value shown as -1.7).
  • Non-oil primary balance (payment order basis): 2022 -3.9; 2023 -2.5.
  • Non-oil primary balance (payment order basis, percent of non-oil GDP): 2022 -4.0; 2023 -2.6.
• External sector
  • Trade balance: Oil exports: 2022 7.8; 2023 5.1; 2024 4.2; 2025 3.0.
  • Non-oil exports: 2022 8.5; 2023 8.3; 2024 8.2.
  • Imports: 2022 15.1; 2023 14.6; 2024 13.4; 2025 13.0.
  • Current account balance Excluding official grants: 2022 -3.7; 2023 -3.3; 2024 -2.9; 2025 -2.7; 2026 -2.8.
  • Current account balance Including official grants: 2022 -3.4; 2023 -3.0.
  • Terms of trade: 2022 -10.6; 2023 -2.2; 2024 -4.4; 2025 -5.5; 2026 -4.5.
• Public debt
  • Stock of public debt: 2022 45.3; 2023 41.8; 2024 39.0; 2025 36.1; 2026 34.1; 2027 32.5; 2028 31.3.
  • Of which: external debt: 2022 30.8; 2023 29.2; 2024 28.6; 2025 28.5; 2026 27.3; 2027 26.3; 2028 25.7.

Press Release No. 24/30; January 29, 2024; IMF Communications Department

References

• https://www.imf.org/-/media/images/imf/bios/imfboard.jpg
• The Executive Board
• PRESS CENTER
• Cameroon and the IMF
• IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet
• Press Releases
• IMF Resilience and Sustainability Facility
• approved in July 2021
• extended in December 2023
• https://www.imf.org/en/home