IMF Staff Country Reports

This paper discusses Cameroon’s Eighth Reviews under the Extended Fund Facility and Extended Credit Facility, as well as the Third Review under the Resilience and Sustainability Facility Arrangement. Despite modest economic growth, Cameroon has maintained macroeconomic stability in the face of domestic and external shocks. A prudent fiscal stance is crucial to preserve debt sustainability, and medium-term growth requires decisive actions to increase non-oil revenues, mitigate financial sector vulnerabilities, and address public financial management, governance, and anti-corruption issues. The authorities have successfully advanced fiscal consolidation, focusing on boosting non-oil revenues, improving public investment management, and controlling domestic arrears. Financial sector resilience has been enhanced through the recapitalization of two banks, but further efforts are needed to clear arrears, deepen the domestic financial market, and implement strategies for financial sector development and inclusion, in collaboration with regional financial institutions. Additionally, Cameroon has made significant progress in strengthening its framework for managing climate change risks. Implementing this framework will enhance resilience to climate shocks, reduce their balance of payments impact, and attract favorable funding for green investments.