- The IMF and the Cameroonian authorities have reached a staff-level agreement on the eighth reviews of the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF), and the third review of the Resilience and Sustainability Facility (RSF).
- Cameroon's economy picked up slightly with real growth estimated at 3.5 percent in 2024, up from 3.2 percent in 2023. Inflation is trending down but remains elevated with an average inflation of 4.5 percent in 2024.
- Program performance was mixed. Higher-than-expected current spending led to a slippage on the fiscal deficit target at end 2024, requiring corrective measures. The authorities have made progress on a broad structural agenda. They are encouraged to sustain efforts to restructure SONARA, complete key infrastructure projects, and strengthen the financial sector.
Washington, DC: An International Monetary Fund (IMF) team, led by
Ms. Cemile Sancak, Mission Chief for Cameroon, visited Yaoundé from April 30 to May 8 and held subsequent meetings to discuss progress on reforms and the authorities' policy priorities in the context of the eighth review of their four-year economic program supported by the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements, and the third review of the Resilience and Sustainability Facility (RSF). The ECF/EFF arrangements were approved by the IMF Executive Board for a total amount of SDR 483 million (US$689.5 million) in July 2021 (see press release 21/237 ). An extension of these arrangements of 12 months was approved in December 2023 to allow more time to implement the policies and reforms, and access was augmented by SDR 110.4 million (US$147.6 million) (see press release 23/469 ). The 18-month RSF was approved by the Executive Board in January 2024 in the amount of SDR 138 million (US$183.4 million) (see press release 24/30 ).
At the conclusion of the discussions, Ms. Sancak issued the following statement:
"The IMF and the Cameroonian authorities have reached a staff-level agreement on the eighth reviews of the ECF/EFF arrangements, and the third review of the RSF arrangement. The agreement is subject to approval by the IMF Executive Board. Completion of the review would enable disbursement under the ECF-EFF arrangements of SDR 55.2 million (US$75.9 million) and disbursement under the RSF arrangement of SDR 51.7 million (US$71.1 million).
"Cameroon's economy expanded by 3.5 percent in 2024, up from 3.2 percent growth in 2024. Inflation remains in decline with a twelve-month average inflation of 4.5 percent in 2024, down from 7.5 percent in 2023.
"The 2024 fiscal outturn was weaker than expected with a non-oil primary deficit of 2.4 percent of GDP, exceeding the target of 2 percent of GDP. An overrun on current expenditures led to an accumulation of new payment arrears and reduced space for pro-growth investment expenditure. The authorities will revise the 2025 budget to take into consideration the 2024 outturn and announce supporting measures to address the source of the fiscal slippage and assure a net reduction of payment arrears over 2025.
"The economic outlook remains favorable assuming fiscal discipline over the coming electoral period and continued reform implementation. Nevertheless, downside risks have increased, notably with heightened global economic uncertainty. The growth forecast for 2025 has been marked down slightly to 3.8 percent amidst weakening global demand and tighter financing conditions. With the implementation of corrective measures, the authorities expect to resume fiscal consolidation and target a non-oil primary deficit of 1.4 percent in 2025. Over the medium-term, economic growth is forecast to reach 4.5 percent and inflation to slow gradually toward the regional convergence criterion of 3 percent.
"The authorities have made progress on a broad structural reform agenda. Over the course of their Fund-supported program, some 40 structural benchmarks will have been implemented, aligning with the objectives set out under the national development strategy (SND30). Going forward, it will be important to advance the restructuring of SONARA, sustain efforts to complete key infrastructure projects, and strengthen the financial sector by addressing persistent weaknesses and fully implementing the national financial inclusion strategy and the financial sector development strategy.
"Under the RSF, Cameroon has made substantial progress on its climate policy framework and enhanced readiness for climate adaptation and mitigation. The authorities have implemented most of the remaining four reform measures: the establishment of climate guidelines for evaluating investment projects, adoption of a national climate plan, and elaboration of a national strategy for disaster risk financing.
"The IMF team met with the Prime Minister, Joseph Dion Ngute, the Minister of State, Secretary General of the Presidency, Ferdinand Ngoh Ngoh, the Minister of Finance, Louis Paul Motaze, and other senior officials. The mission also met with representatives of development partners, the private sector, and civil society. The team wishes to thank the Cameroonian authorities for their excellent cooperation and for the open and constructive dialogue."
