Cameroon's economic "stability" without security!.

18/04/2023

It is common to hear articulate commentators say there cannot be development without security. Security analysts place Cameroon as one of the six spots of insecurity in Africa to watch this year.

Their research is based on the bloody conflict in the North West and South West Regions as well as Boko Haram insurgents in the Far North Region.

Thousands of people in the three Regions have been internally displaced and the Regions deserted, which makes any economic development there a hard nut to crack.

But the World Bank and International Monetary Fund, IMF, at their spring meetings in Washington last week praised the country's economic performance.

After discussions held between the Minister of the Economy, Planning and Regional Development, MINEPAT, Alamine Ousmane Mey, who led Cameroon's delegation, and the Interim Director of Operations at the World Bank, Elisabeth Huybens, both were satisfied with the country's development feat.

Minister Alamine Mey said: "…we want to believe that around1,000 billion FCFA of committed resources are going to help us continue with the process of implementing our projects around the national development programme put forth by the Head of State, H.E. Paul Biya, to turn Cameroon into an emergent nation by 2035…".

He further added that the meeting was also an opportunity to review the effectiveness of reforms and progress of ongoing projects sponsored by and implemented under the supervision of the World Bank and IMF. These projects, he noted, are in the domains of education, health, and other sectors such as electricity that are key to the development of Cameroon.

"We were able to identify where we have made a lot of progress, particularly with projects that have already been signed in terms of financing and accelerate those that are still left, such that our country should be able to fully benefit from the resources being provided by the World Bank,” he said.

“We also had the opportunity to review the performance in terms of reforms implementation and we were keen to talk about P4R, which is a programme that is going to take place in the energy sector, with the support of the World Bank,” Minister Alamine Mey disclosed.

He was particularly elated that the World Bank, following their discussions, has, in addition, agreed to support Cameroon's connectivity project in the Far North Region that is geared towards linking the communities of Mora, Waza, Dabanga and Kousseri by way of rehabilitating the road infrastructure along this northern corridor.

The minister disclosed that overall the World Bank, through its International Development Agency, IDA, has a total of 20 projects it is currently sponsoring in Cameroon.

The Cameroon delegation also discussed rising inflation and the impact of climate change, among others, and also pursued other objectives of signing accords to ameliorate economic growth.

On her part, the Interim Director of Operations at the World Bank, Elisabeth Huybens, noted that the discussions between Cameroon and the Bank were necessary for them to assess their progress and ensure that all these projects are moving on according to their agreed plans. 

"We have a very large package of projects in Cameroon. So, it is but normal to meet and make an appraisal of the projects and ensure that all are progressing as envisaged, " she said, adding that: "We had these discussions and they were very positive."

With some 20 projects and an investment of about 1,000 billion FCFA in Cameroon, the Bretton Woods institutions have a key role to play in the country's drive towards the 2035 emergence mission.

Though often defined cynically as two jaws of the same mouth, the IMF monitors economic activity, offers members policymaking tools and analysis. It also provides loans to member countries, while the World Bank accomplishes its goals through technical and financial support that enables countries to implement specific projects.

Both are present in Cameroon and while the man on the street continues to feel the excruciating pains of rising cost of living, bad roads, shortage of drinking water and electricity, not to talk of a sick health delivery system, both institutions see positivity in development.

Granted that the appalling situation is ameliorating, some of the reforms both institutions are imposing on Cameroon are not within its ambit. Take for instance, when the IMF Deputy Managing Director, Kenji Okamura, visited Cameroon in March, he said in a statement that "monetary policy needs to act proactively to keep inflation in check". But the FCFA policy is not crafted by the former French colonies still using it, but by France.

In outlining reforms that will revolutionise the economy and the standards of living, the director recommended “the need to promote inclusive and resilient growth through a diversified economy oriented towards non-oil exports. Growth needs to be inclusive to improve on the well-being of all Cameroonian people".

He added that: "A diversified economy would help make long-term growth more resilient by protecting it against commodity shocks. Structural reforms like improving the business climate and strengthening financial inclusion, governance, and anti-corruption can unlock Cameroon’s growth potential, especially for the private sector to be its primary motor".

There are ways in which the government can create additional fiscal space to finance priority expenditures like infrastructure, health, and education, through the government budget: Implementing reforms to boost budget revenues and exports like broadening the tax base to the informal sector and improving the efficiency of public expenditure, focusing on productive expenditures like key infrastructure projects, and relying on longer-term and more concessional loans.

Of course such reviews were not made at the Washington meeting to see if Cameroonians are having a feel-good effect of the mounting loans for projects, often delayed in execution, and expensive costs due to bad governance amid insecurity in three Regions.