## IMF Staff Initiates Discussion with Cameroon on an Economic Program Supported by the Fund

_IMF News, March 7, 2017_

## Source details

**Canonical URL:** [IMF Staff Initiates Discussion with Cameroon on an Economic Program Supported by the Fund](https://www.imf.org/en/news/articles/2017/03/07/pr1776-cameroon-imf-staff-initiates-discussion-on-an-economic-program-supported-by-the-fund)

## Other formats

- [Markdown version](/en/news/articles/2017/03/07/pr1776-cameroon-imf-staff-initiates-discussion-on-an-economic-program-supported-by-the-fund/index.md)
- [Structured JSON version](/en/news/articles/2017/03/07/pr1776-cameroon-imf-staff-initiates-discussion-on-an-economic-program-supported-by-the-fund/index.json)
- [Bundle manifest](/en/news/articles/2017/03/07/pr1776-cameroon-imf-staff-initiates-discussion-on-an-economic-program-supported-by-the-fund/bundle-manifest.json)

## Bibliographic details
- Published: March 7, 2017

---

### Mission overview
- Press Release No. 17/76
- Mission dates: An IMF team, led by Ms. Corinne Deléchat, visited Yaoundé from February 20–March 6, 2017.
- Purpose: To hold discussions toward a three-year economic and financial program for Cameroon (through 2019).
- Statement status: End-of-Mission press release conveying preliminary findings of IMF staff; views are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board.

### Major findings on economic conditions and outlook
- The medium-term economic outlook remains positive, as Cameroon enjoys a relatively diversified economy.
- Key infrastructure projects coming on stream: Lom Pangar hydroelectric dam, the deep sea port of Kribi, and the Kribi gas plant.
- Negative shocks affecting Cameroon:
  - Sharp decline in commodity prices.
  - Security threats in the Lake Chad basin.
  - Civil unrest in the neighboring Central African Republic (until recently).
- Consequences of shocks:
  - External and fiscal balances negatively impacted.
  - Public debt has risen rapidly.
  - External and fiscal buffers have declined significantly.
- Contextual note: The team follows the December 23 summit in Yaoundé, where CEMAC heads of state agreed on the need for a resolute and concerted effort to preserve macroeconomic stability in the region, and to initiate discussions with the IMF and other development partners.

### Policy discussion themes and staff recommendations
- Fiscal and debt management:
  - Decisive fiscal and debt management policies are needed to preserve macroeconomic stability.
  - Given the rapid increase in public debt, focus on reducing the pace of new borrowing, particularly on non-concessional terms.
- Revenue and spending:
  - Continue implementation of policies to increase non-oil domestic revenue.
  - Rationalize spending while preserving pro-growth and pro-poor expenditures.
  - Prioritize investment spending with the highest growth dividends.
  - The 2017 Finance Law is noted as an important step in this direction.
- Social protection:
  - Protect and even increase social spending in favor of the most vulnerable groups.
  - Staff welcomed the authorities’ plans to scale up their successful social safety nets program.
- Structural reforms:
  - Ambitious structural measures are critical to boost private sector investment and support inclusive growth.
  - Enhance the business environment to boost private sector investment and economic diversification.
- Spending efficiency:
  - Enhance spending efficiency, in particular by prioritizing investment spending with the highest growth dividends.

### Program prospects and next steps
- The IMF team and Cameroonian authorities discussed an economic program through 2019 that would lay out a path to sustained economic recovery and higher and more inclusive growth.
- Discussions will continue to reach an understanding on the full set of policies that could form the basis for an IMF-supported economic program.
- The team and the authorities have made good progress in discussing measures to strengthen economic outcomes, enhance the business environment, and achieve more inclusive growth.

### Stakeholders met
- 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
- Governor of the Bank of Central African States (BEAC), Mahamat Abbas Tolli
- Other senior officials and representatives of the diplomatic community, development partners and private sector

*IMF Press Release No. 17/76 — March 7, 2017*

---


## References

- [Republic of Congo and the IMF](http://www.imf.org/external/country/COG/index.htm)
- [Republic of Equatorial Guinea and the IMF](http://www.imf.org/external/country/GNQ/index.htm)
- [Cameroon and the IMF](http://www.imf.org/external/country/CMR/index.htm)
- [Central African Republic and the IMF](http://www.imf.org/external/country/CAF/index.htm)
- [Chad and the IMF](http://www.imf.org/external/country/TCD/index.htm)
- [Gabon and the IMF](http://www.imf.org/external/country/GAB/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2017/03/07/pr1776-cameroon-imf-staff-initiates-discussion-on-an-economic-program-supported-by-the-fund_