January 29, 2024
PRESS OFFICER: Nicolas MOmbrial
Phone: +1 202 623-7100Email: MEDIA@IMF.org
Washington, DC: The Executive Board of the International Monetary Fund (IMF) approved today an 18-month arrangement for Cameroon under the IMF Resilience and Sustainability Facility (RSF) for a total amount of SDR 138 million (about US$183.4 million, 50 percent of quota), with disbursements to start when the First Review of the arrangement is completed.
Cameroon is highly vulnerable to climate change, with risks from recurrent droughts, floods, landslides, and coastal erosion. The RSF will support Cameroon’s efforts to adapt to and mitigate the impact of climate change and replace more expensive financing. It will help address climate vulnerabilities by supporting the authorities’ efforts to strengthen the country’s 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. The reform measures under the RSF are also expected to reinforce the growing engagement of development partners and other stakeholders in climate-resilient development and catalyze additional climate finance.
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 to support the country’s economic and financial reform program.
At the conclusion of the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, made the following statement:
“Cameroonis a fragile and conflict-affected state facing substantial risks from climate change, including an imminent threat to livelihoods and potentially significant output losses, which could worsen food insecurity and conflicts and exacerbate poverty, inequality, and population displacements. The country’s regional diversity exposes it to a variety of climate-related events, including droughts, floods, and coastal erosion. If not appropriately addressed, climate change could delay human capital accumulation and jeopardize development and inclusive growth.
“Addressing the impact of climate change is an important priority in the country’s national development strategy. Cameroon is signatory of the COP21 and other key international conventions on climate change and is committed to a sustainable management of natural resources and adaptation and mitigation policies.
“The identified reforms under the Resilience and Sustainability Facility (RSF) arrangement build on the authorities’ national strategies and plans and on the diagnostics on climate change. The RSF reform package will help address key climate-related policy challenges, including creating an enabling environment for policy implementation, with appropriate institutional and public financial management frameworks; strengthening the national disaster risk management framework to step up adaptation efforts; and leveraging fiscal management in forestry as a climate mitigation policy.
“A resolute implementation of reforms under the RSF arrangement will help 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. The arrangement should also help 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.”
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Table 1. Cameroon: Selected Economic and Financial Indicators, 2021-28 |
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(CFAF billion, unless otherwise indicated) |
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2022 |
2023 |
2024 |
2025 |
2026 |
2027 |
2028 |
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Est. |
5th Rev. |
Proj. |
5th Rev. |
Proj. |
Proj. |
Proj. |
Proj. |
Proj. |
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(Annual percentage change, unless otherwise indicated) |
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National account and prices |
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GDP at constant prices |
3.6 |
4.0 |
4.0 |
4.3 |
4.3 |
4.5 |
4.5 |
4.5 |
4.6 |
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Oil GDP at constant prices |
2.1 |
0.5 |
0.5 |
2.7 |
2.7 |
1.3 |
0.2 |
0.2 |
0.2 |
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Non-Oil GDP at constant prices |
3.6 |
4.1 |
4.1 |
4.3 |
4.3 |
4.5 |
4.6 |
4.6 |
4.7 |
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GDP deflator |
6.3 |
3.1 |
3.1 |
3.5 |
3.5 |
4.0 |
3.1 |
2.6 |
1.7 |
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Nominal GDP (at market prices, CFAF billions) |
27,702 |
29,704 |
29,704 |
32,063 |
32,063 |
34,822 |
37,515 |
40,216 |
42,770 |
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Oil |
1,155 |
957 |
957 |
976 |
976 |
939 |
900 |
866 |
837 |
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Non-Oil |
26,548 |
28,747 |
28,747 |
31,088 |
31,088 |
33,884 |
36,615 |
39,349 |
41,933 |
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Consumer prices (average) |
6.3 |
7.2 |
7.2 |
5.9 |
5.9 |
5.5 |
4.9 |
3.4 |
2.5 |
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Consumer prices (eop) |
7.3 |
6.2 |
6.2 |
5.5 |
5.5 |
5.2 |
3.6 |
2.0 |
2.0 |
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Money and credit |
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Broad money (M2) |
11.4 |
9.0 |
9.0 |
8.4 |
8.4 |
7.6 |
7.4 |
7.2 |
7.1 |
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Net foreign assets 1/ |
7.7 |
1.6 |
-0.8 |
3.2 |
6.0 |
3.2 |
2.2 |
2.5 |
3.5 |
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Net domestic assets 1/ |
3.6 |
7.4 |
9.8 |
5.3 |
2.4 |
4.4 |
5.2 |
4.7 |
3.6 |
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Domestic credit to the private sector |
13.6 |
11.2 |
11.2 |
9.5 |
9.5 |
7.7 |
7.4 |
7.2 |
7.2 |
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(Percent of GDP, unless otherwise indicated) |
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Savings and investments |
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Gross national savings |
15.3 |
15.6 |
15.6 |
16.2 |
16.2 |
17.0 |
17.3 |
18.3 |
19.1 |
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Gross domestic investment |
18.7 |
18.6 |
18.6 |
19.0 |
19.0 |
19.4 |
20.1 |
20.9 |
21.8 |
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Public investment |
4.6 |
4.6 |
4.6 |
5.3 |
5.3 |
5.9 |
6.6 |
7.2 |
7.5 |
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Private investment |
14.1 |
13.9 |
13.9 |
13.7 |
13.7 |
13.6 |
13.5 |
13.8 |
14.4 |
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Central government operations |
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Total revenue (including grants) |
15.9 |
16.0 |
16.0 |
15.9 |
15.9 |
15.5 |
15.6 |
15.7 |
15.8 |
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Oil revenue |
3.5 |
2.9 |
2.9 |
2.5 |
2.5 |
2.0 |
1.9 |
1.8 |
1.7 |
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Non-oil revenue |
12.1 |
12.7 |
12.7 |
13.1 |
13.1 |
13.3 |
13.6 |
13.8 |
14.0 |
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Non-oil revenue (percent of non-oil GDP) |
12.6 |
13.1 |
13.1 |
13.5 |
13.5 |
13.7 |
13.9 |
14.1 |
14.3 |
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Total expenditure |
17.1 |
16.6 |
16.6 |
16.3 |
16.3 |
15.9 |
16.4 |
16.6 |
16.7 |
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Overall fiscal balance (payment order basis) |
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Excluding grants |
-1.5 |
-1.0 |
-1.0 |
-0.7 |
-0.7 |
-0.6 |
-0.9 |
-1.0 |
-0.9 |
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Including grants |
-1.1 |
-0.7 |
-0.7 |
-0.4 |
-0.4 |
-0.4 |
-0.8 |
-0.9 |
-0.9 |
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Overall fiscal balance (cash basis) |
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Excluding grants |
-1.6 |
-2.3 |
-1.6 |
-1.4 |
-2.0 |
-1.1 |
-1.4 |
-1.0 |
-0.9 |
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Including grants |
-1.2 |
-1.9 |
-1.3 |
-1.1 |
-1.7 |
-0.9 |
-1.2 |
-0.9 |
-0.9 |
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Non-oil primary balance (payment order basis) |
-3.9 |
-2.5 |
-2.5 |
-1.9 |
-1.9 |
-1.3 |
-1.6 |
-1.6 |
-1.6 |
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Non-oil primary balance (payment order basis, percent of non-oil GDP) |
-4.0 |
-2.6 |
-2.6 |
-2.0 |
-2.0 |
-1.4 |
-1.7 |
-1.7 |
-1.6 |
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External sector |
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Trade balance |
-0.7 |
-1.7 |
-1.7 |
-1.5 |
-1.5 |
-1.3 |
-1.6 |
-1.7 |
-1.7 |
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Oil exports |
7.8 |
5.5 |
5.5 |
5.1 |
5.1 |
4.9 |
4.2 |
3.5 |
3.0 |
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Non-oil exports |
7.8 |
8.4 |
8.4 |
8.5 |
8.5 |
8.3 |
8.2 |
8.2 |
8.3 |
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Imports |
16.3 |
15.6 |
15.6 |
15.1 |
15.1 |
14.6 |
14.0 |
13.4 |
13.0 |
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Current account balance |
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Excluding official grants |
-3.7 |
-3.3 |
-3.3 |
-2.9 |
-2.9 |
-2.7 |
-2.8 |
-2.7 |
-2.8 |
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Including official grants |
-3.4 |
-3.0 |
-3.0 |
-2.8 |
-2.8 |
-2.5 |
-2.8 |
-2.7 |
-2.7 |
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Terms of trade |
-10.6 |
-2.2 |
-2.2 |
1.6 |
1.6 |
0.5 |
-4.4 |
-5.5 |
-4.5 |
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Public debt |
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Stock of public debt |
45.3 |
41.8 |
41.8 |
39.0 |
39.0 |
36.1 |
34.1 |
32.5 |
31.3 |
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Of which: external debt |
30.8 |
29.2 |
28.6 |
28.5 |
28.6 |
27.3 |
26.3 |
25.7 |
25.7 |
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Sources: Country authorities; and IMF staff estimates and projections. |
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1/ Percent of broad money at the beginning of the period. |
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