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