{ "title": "IMF Executive Board Concludes the Second Reviews of the Extended Credit Facility and Extended Fund Facility Arrangements for Cameroon", "publication": "IMF News, July 25, 2022", "sourceUrl": "https://www.imf.org/en/news/articles/2022/07/25/pr22273-cameroon-imf-executive-board-concludes-second-reviews-ecf-eff-arrangements", "canonical": "https://www.imf.org/en/news/articles/2022/07/25/pr22273-cameroon-imf-executive-board-concludes-second-reviews-ecf-eff-arrangements", "overlayPath": "/en/news/articles/2022/07/25/pr22273-cameroon-imf-executive-board-concludes-second-reviews-ecf-eff-arrangements/index.md", "summary": "IMF Executive Board Concludes the Second Reviews of the Extended Credit Facility and Extended Fund Facility Arrangements for Cameroon", "publishDate": "2022-07-25", "sections": [ { "heading": "Access and Program Status", "content": "- Completion of the Second Reviews provides Cameroon with access to the equivalent of US$ 72.9 million from the IMF.\n- The completion of the second reviews enables the disbursement of SDR 18.4 million (about US$ 24.3 million) under the ECF Arrangement, and purchases of SDR 36.8 million (about US$ 48.6 million) under the EFF Arrangement.\n- Total access under the arrangements is SDR 262.2 million (about US$ 346.1 million).\n- The Executive Board approved the authorities’ request for a waiver of applicability for the end-June 2022 performance criteria.\n- Cameroon’s three-year ECF-EFF arrangements were approved on July 29, 2021 and are built around five pillars:\n - mitigating the health, economic, and social consequences of the pandemic while ensuring fiscal and external sustainability;\n - reinforcing good governance and strengthening the transparency and the anti-corruption framework;\n - accelerating structural fiscal reforms to modernize the tax and customs administrations, mobilize revenue, improve public financial management, increase public investment efficiency, and reduce fiscal risks from state-owned enterprises;\n - strengthening debt management and ensuring debt levels remain sustainable;\n - implementing structural reforms to accelerate economic diversification, boost financial sector resilience and inclusion, and promote gender equality and a greener economy." }, { "heading": "Economic Performance and Outlook", "content": "- Cameroon experienced a record low real GDP growth rate of -2.2 percent year on year (yoy) in Q2-2020.\n- Real GDP growth rate gradually recovered to reach 3.6 percent in 2021.\n- The nascent recovery from mid-2021 is subject to greater uncertainties due to spillovers from the war in Ukraine, high inflationary pressures (especially food and fuel prices), and tightening global financial conditions.\n- Low vaccination rates leave the country vulnerable to further COVID-19 waves.\n- Real GDP growth is projected at 3.8 percent in 2022, down from 4.5 percent at the time of the program’s First Reviews.\n- Inflation is projected to rise to 4.6 percent in 2022, but to remain below 3 percent in the medium term." }, { "heading": "Risks and Shocks", "content": "- Downside risks highlighted:\n - rising and volatile food, fertilizers, and energy prices, and supply disruptions;\n - new outbreaks of lethal and highly contagious COVID-19 variants;\n - a sharp increase in global risk premia following ongoing monetary policy tightening in advanced economies;\n - inadequate progress on fuel price subsidies.\n- Upside factors noted:\n - potential benefits from new oil and gas opportunities;\n - completion of major hydroelectric plants.\n- Risk mitigants:\n - authorities’ strong implementation record of macro-economic programs;\n - close engagement with donors;\n - a comprehensive capacity development program;\n - contingency planning, including its COVID-19 response plan." }, { "heading": "Fiscal and External Position Developments", "content": "- As a crude oil exporter, Cameroon has experienced some positive effects on its external and fiscal positions.\n- Intensified higher global prices and supply disruptions have significantly increased the cost of fuel subsidies and are placing additional pressure on domestic prices, especially for food and fertilizers.\n- Authorities’ fiscal strategy highlighted:\n - maintain fiscal consolidation path;\n - reduce fuel subsidies gradually, starting in 2023, while protecting the vulnerable;\n - continue non-oil revenue mobilization and expenditure rationalization to rebuild fiscal space for strengthening social safety nets and boosting the recovery, while preserving debt sustainability.\n- IMF advice: manage debt cautiously and limit reliance on non-concessional borrowing." }, { "heading": "Structural Reforms and Financial Sector Policy Recommendations", "content": "- Structural reforms are advancing, albeit with delays in some key areas.\n- Recommended priorities:\n - effective and resolute implementation of structural reforms to further strengthen transparency, good governance, and the anti-corruption framework to promote growth and catalyze additional donor financing;\n - closely monitor rising non-performing loans and proceed with bank restructuring within the timetable set by COBAC to ensure financial sector resilience;\n - further efforts to tackle gender inequality and climate change related challenges." }, { "heading": "Selected Economic and Financial Indicators (highlights from Table 1)", "content": "- GDP at constant prices:\n - 2021: 3.5\n - 2022 (Est.): 3.6\n - 2023 (1st Rev. Proj.): 4.5\n - 2024 (Proj.): 3.8\n - 2025 (Proj.): 4.6\n - 2026 (Proj.): 4.7\n - 2027 (Proj.): 5.0\n - 2027 (alternate): 4.9\n- Oil GDP at constant prices:\n - 2021: 0.1\n - 2022: -3.2\n - 2023: 4.2\n - 2024: -3.0\n - 2025: 0.2\n - 2026: 0.3\n- GDP deflator:\n - 2021: 2.6\n - 2022: 3.3\n - 2023: 2.9\n - 2024: 2.4\n - 2025: 2.1\n - 2026: 2.0\n- Nominal GDP (at market prices, CFAF billions):\n - 2021: 24,951\n - 2022: 25,158\n - 2023: 26,828\n - 2024: 27,389\n - 2025: 29,325\n - 2026: 31,506\n - 2027: 33,766\n - additional projections: 36,152; 38,682\n- Oil revenue (CFAF billions):\n - 2021: 929\n - 2022: 801\n - 2023: 1,009\n - 2024: 1,187\n - 2025: 1,090\n - 2026: 992\n - 2027: 927\n - further: 883; 859\n- Non-Oil revenue (CFAF billions):\n - 2021: 24,021\n - 2022: 24,357\n - 2023: 25,819\n - 2024: 26,201\n - 2025: 28,235\n - 2026: 30,513\n - 2027: 32,839\n - further: 35,269; 37,823\n- Consumer prices (average):\n - 2021: 2.3\n - 2022: 2.8\n- Consumer prices (eop):\n - 2021: 4.1\n- Broad money (M2) (percent of GDP, unless otherwise indicated):\n - 2021: 13.8\n - 2022: 17.2\n - 2023: 10.7\n - 2024: 15.6\n - 2025: 10.1\n - 2026: 8.1\n - 2027: 6.7\n - additional: 6.1; 7.0\n- Net foreign assets (percent of broad money at the beginning of the period):\n - 2021: 1.9\n - 2022: 4.3\n - 2023: 6.5\n - 2024: 4.0\n - 2025: 1.7\n - 2026: 1.5\n- Domestic credit to the private sector (percent of GDP):\n - 2021: 5.4\n - 2022: 9.7\n - 2023: 5.6\n - 2024: 9.1\n - 2025: 12.4\n - 2026: 10.9\n - 2027: 7.4\n - further: 7.5; 3.1\n- Gross national savings:\n - 2021: 26.9\n - 2022: 14.0\n - 2023: 29.8\n - 2024: 16.3\n - 2025: 17.3\n - 2026: 18.8\n - 2027: 20.4\n - additional: 21.8; 23.2\n- Gross domestic investment:\n - 2021: 30.3\n - 2022: 17.9\n - 2023: 31.8\n - 2024: 18.4\n - 2025: 20.0\n - 2026: 22.0\n - 2027: 23.6\n - additional: 25.0; 26.0\n- Public investment (percent of GDP):\n - 2021: 5.5\n - 2022: 5.8\n - 2023: 6.0\n - 2024: 6.8\n- Private investment (percent of GDP):\n - 2021: 24.9\n - 2022: 13.4\n - 2023: 26.2\n - 2024: 13.2\n - 2025: 14.6\n - 2026: 16.2\n - 2027: 17.6\n - additional: 18.3; 19.2\n- Central government operations:\n - Total revenue (including grants) as percent of GDP:\n - 2021: 13.9\n - 2022: 14.1\n - 2023: 14.9\n - 2024: 15.4\n - 2025: 15.9\n - 2026: 15.7\n - 2027: 15.5\n - Non-oil revenue as percent of GDP:\n - 2021: 11.7\n - 2022: 12.0\n - 2023: 12.8\n - 2024: 13.1\n - 2025: 13.6\n - 2026: 13.7\n - Non-oil revenue (percent of non-oil GDP):\n - 2021: 12.1\n - 2022: 12.5\n - 2023: 13.3\n - Total expenditure as percent of GDP:\n - 2021: 17.0\n - 2022: 16.5\n - 2023: 16.7\n - 2024: 17.4\n - 2025: 16.1\n - 2026: 16.0\n - Overall fiscal balance (payment order basis) excluding grants:\n - 2021: -3.4\n - 2022: -2.6\n - 2023: -2.4\n - 2024: -2.5\n - 2025: -0.5\n - 2026: -0.6\n - 2027: -1.4\n - Including grants:\n - 2021: -3.1\n - 2022: -1.8\n - 2023: -1.9\n - 2024: -0.2\n - 2025: -0.3\n - 2026: -0.4\n - 2027: -1.3\n - Overall fiscal balance (cash basis):\n - 2021: -3.8\n - 2022: -2.7\n - 2023: -1.0\n - 2024: -0.9\n - 2025: -0.8\n - 2026: -3.5\n - 2027: -2.8\n - additional figures: -2.2; -0.7\n - Non-oil primary balance (payment basis, percent of non-oil GDP):\n - 2021: -4.0\n - 2022: -4.2\n - 2023: -2.3\n - 2024: -1.7\n- External sector:\n - Trade balance:\n - 2021: -1.1\n - 2022: -1.5\n - 2023: -2.0\n - 2024: -2.1\n - Non-oil exports (percent of GDP):\n - 2021: 8.0\n - 2022: 8.6\n - 2023: 9.4\n - 2024: 8.7\n - 2025: 7.9\n - 2026: 7.7\n - Imports (percent of GDP):\n - 2021: 14.5\n - 2022: 13.5\n - Current account balance excluding official grants:\n - 2021: -3.7\n - 2022: -4.4\n - 2023: -3.6\n - Current account balance including official grants:\n - 2021: -3.3\n - 2022: -2.9\n - Terms of trade:\n - 2021: 7.1\n - 2022: -7.1\n - 2023: -6.9\n - 2024: -4.6\n- Public debt:\n - Stock of public debt:\n - 2021: 47.2\n - 2022: 45.5\n - 2023: 45.0\n - 2024: 44.0\n - 2025: 40.8\n - 2026: 37.9\n - 2027: 35.3\n - additional projections: 33.9; 32.6\n - Of which: external debt:\n - 2021: 31.6\n - 2022: 32.8\n - 2023: 31.2\n - 2024: 29.2\n - 2025: 28.2\n - 2026: 27.6\n\nSources: Cameroonian authorities; and IMF staff estimates and projections using updated nominal GDP.\n\n---\n\n\n References\n\n- Kenji Okamura\n- Cameroon and the IMF\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- Extended Credit Facility\n- Extended Fund Facility\n- approved on July 29, 2021\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2022/07/25/pr22273-cameroon-imf-executive-board-concludes-second-reviews-ecf-eff-arrangements" } ], "bullets": [ "[Markdown version](/en/news/articles/2022/07/25/pr22273-cameroon-imf-executive-board-concludes-second-reviews-ecf-eff-arrangements/index.md)", "[Structured JSON version](/en/news/articles/2022/07/25/pr22273-cameroon-imf-executive-board-concludes-second-reviews-ecf-eff-arrangements/index.json)", "[Bundle manifest](/en/news/articles/2022/07/25/pr22273-cameroon-imf-executive-board-concludes-second-reviews-ecf-eff-arrangements/bundle-manifest.json)", "Published: July 25, 2022", "Completion of the Second Reviews provides Cameroon with access to the equivalent of US$ 72.9 million from the IMF.", "The completion of the second reviews enables the disbursement of SDR 18.4 million (about US$ 24.3 million) under the ECF Arrangement, and purchases of SDR 36.8 million (about US$ 48.6 million) under the EFF Arrangement.", "Total access under the arrangements is SDR 262.2 million (about US$ 346.1 million).", "The Executive Board approved the authorities’ request for a waiver of applicability for the end-June 2022 performance criteria.", "Cameroon’s three-year ECF-EFF arrangements were approved on July 29, 2021 and are built around five pillars:", "Cameroon experienced a record low real GDP growth rate of -2.2 percent year on year (yoy) in Q2-2020.", "Real GDP growth rate gradually recovered to reach 3.6 percent in 2021.", "The nascent recovery from mid-2021 is subject to greater uncertainties due to spillovers from the war in Ukraine, high inflationary pressures (especially food and fuel prices), and tightening global financial conditions.", "Low vaccination rates leave the country vulnerable to further COVID-19 waves.", "Real GDP growth is projected at 3.8 percent in 2022, down from 4.5 percent at the time of the program’s First Reviews.", "Inflation is projected to rise to 4.6 percent in 2022, but to remain below 3 percent in the medium term.", "Downside risks highlighted:", "Upside factors noted:", "Risk mitigants:", "As a crude oil exporter, Cameroon has experienced some positive effects on its external and fiscal positions.", "Intensified higher global prices and supply disruptions have significantly increased the cost of fuel subsidies and are placing additional pressure on domestic prices, especially for food and fertilizers.", "Authorities’ fiscal strategy highlighted:", "IMF advice: manage debt cautiously and limit reliance on non-concessional borrowing.", "Structural reforms are advancing, albeit with delays in some key areas.", "Recommended priorities:", "GDP at constant prices:", "Oil GDP at constant prices:", "GDP deflator:", "Nominal GDP (at market prices, CFAF billions):", "Oil revenue (CFAF billions):", "Non-Oil revenue (CFAF billions):", "Consumer prices (average):", "Consumer prices (eop):", "Broad money (M2) (percent of GDP, unless otherwise indicated):", "Net foreign assets (percent of broad money at the beginning of the period):", "Domestic credit to the private sector (percent of GDP):", "Gross national savings:", "Gross domestic investment:", "Public investment (percent of GDP):", "Private investment (percent of GDP):", "Central government operations:", "External sector:", "Public debt:", "[Kenji Okamura](https://www.imf.org/en/About/senior-officials/Bios/kenji-okamura)", "[Cameroon and the IMF](http://www.imf.org/external/country/CMR/index.htm)", "[Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[Extended Credit Facility](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/04/Extended-Credit-Facility)", "[Extended Fund Facility](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/20/56/Extended-Fund-Facility)", "[approved on July 29, 2021](https://www.imf.org/en/News/Articles/2021/07/29/pr21237-cameroon-imf-executive-board-approves-us-million-arrangements-under-ecf-eff)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2022/07/25/pr22273-cameroon-imf-executive-board-concludes-second-reviews-ecf-eff-arrangements/index.md", "json": "/en/news/articles/2022/07/25/pr22273-cameroon-imf-executive-board-concludes-second-reviews-ecf-eff-arrangements/index.json", "bundleManifest": "/en/news/articles/2022/07/25/pr22273-cameroon-imf-executive-board-concludes-second-reviews-ecf-eff-arrangements/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T01:26:09.405Z" }