Yaoundé: The International Monetary Fund (IMF) and Cameroonian authorities have finalized a staff-level agreement concerning the third review of the Resilience and Sustainability Facility and the eighth reviews of both the Extended Credit Facility and the Extended Fund Facility.
According to African Press Organization, Cameroon’s economy experienced a slight improvement, with an estimated real growth rate of 3.5 percent in 2024, up from 3.2 percent in 2023. Despite a downward trend, inflation remains elevated, with an average rate of 4.5 percent anticipated in 2024. The program performance demonstrated mixed results, as higher-than-expected current spending caused a deviation from the fiscal deficit target at the end of 2024, necessitating corrective measures. The authorities are progressing on a broad structural agenda and are encouraged to maintain momentum in restructuring SONARA, completing crucial infrastructure projects, and strengthening the financial sector.
The fiscal outcome for 2024 did not meet expectations, with a non-oil primary deficit of 2.4 percent of GDP, surpassing the target of 2 percent of GDP. The overrun on current expenditures led to new payment arrears and limited resources for investment expenditures aimed at growth. The authorities plan to revise the 2025 budget to address the 2024 outcomes and introduce measures to correct the fiscal slippage and ensure a net reduction of payment arrears over the year.
The economic outlook for Cameroon remains positive, contingent on fiscal discipline during the upcoming electoral period and ongoing reform efforts. However, global economic uncertainty has increased downside risks. The growth forecast for 2025 has been slightly reduced to 3.8 percent due to weakening global demand and tighter financing conditions. With the implementation of corrective measures, authorities aim to resume fiscal consolidation, targeting a non-oil primary deficit of 1.4 percent in 2025. Medium-term growth is expected to reach 4.5 percent, with inflation gradually decreasing towards the regional convergence criterion of 3 percent.
Progress on the structural reform agenda continues, with approximately 40 structural benchmarks implemented under the national development strategy (SND30). Key areas of focus include advancing the restructuring of SONARA, completing infrastructure projects, and strengthening the financial sector by addressing persistent weaknesses and fully implementing financial inclusion and development strategies.
Under the Resilience and Sustainability Facility, Cameroon has made significant advancements in its climate policy framework and readiness for climate adaptation and mitigation. The authorities have largely implemented the remaining reform measures, which include establishing climate guidelines for investment project evaluation, adopting a national climate plan, and developing a national strategy for disaster risk financing.
The IMF team conducted meetings with Prime Minister Joseph Dion Ngute, Minister of State and Secretary General of the Presidency Ferdinand Ngoh Ngoh, Minister of Finance Louis Paul Motaze, and other senior officials. Discussions were also held with representatives from development partners, the private sector, and civil society. The IMF team expressed gratitude to the Cameroonian authorities for their cooperation and open dialogue.