Economic & financial programme: IMF hails Cameroon’s implementation.

The positive remarks were made on the sidelines of the Spring Meetings of the Boards of Governors of the International Monetary Fund and the World Bank Group. 

The annual Spring Meetings between both financial institutions held from April 15-20 in Washington DC, in the United States of America, USA. 

It brought together central bankers, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organisations and academics, to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development and aid effectiveness. 

It also featured seminars, regional briefings, press conferences and many other events that focused on the global economy, international development and world's financial system. 

Cameroon’s delegation to the high-level international gathering was led by the Minister of Finance, Louis Paul Motaze. 

The Minister Motaze-led delegation held a meeting with the Director of the IMF's Africa Department, Abebe Aemro Selassie.

The IMF official used the meeting to hail the country’s efforts in implementing the three-year programme Cameroon signed with the IMF on July 29, 2021, which runs until mid-2024. 

The senior official of the Bretton Woods institution, had during the meeting, also stressed on the urgency of economic diversification in the Economic and Monetary Community of Central Africa, CEMAC, zone.

Avenues for more collaboration mapped 

According to the MINFI boss, his meeting with the IMF official unequivocally showed that Cameroon is on the right track in the implementation of the programme. 

Minister Motaze said the meetings with IMF and World Bank Group officials, during the Washington DC gathering, helped to map out avenues for improved collaboration.

"We attended a number of meetings. Firstly, with our partners in the IMF's Public Finance Department, because we have a number of points on which we are seeking their technical assistance, particularly with regard to taxes and customs. We then met with the IMF's Director for Africa, during a meeting with the Economic and Monetary Community of Central Africa", revealed the member of government.

Minister Motaze further explained that while IMF’s Africa Director appreciated the efforts made by CEMAC governments to improve their countries' economic situation, he nevertheless urged them to persevere the momentum.

This, the MINFI boss added, is for them to avoid finding themselves on the brink of devaluation of the FCFA, as was the case between 2014 and 2015. 

"Fortunately, the Heads of State of the CEMAC, at the invitation of President Paul Biya of Cameroon, took strong measures that were applied and enabled this threat to our States to recede," Motaze recalled.

According to the MINFI boss, to avoid the problems that almost plunged CEMAC economies into recession, it is essential to respect the guidelines laid down at the time. 

“We must not give up," Minister Motaze warned, explaining that "because when it comes to foreign exchange, regulations and the guidelines laid down to diversify economies, these measures must be applied so that we don't fall back into the problems we experienced 10 years ago”. 

CEMAC countries to increase shares in BDEAC’s 

Minister Motaze, it should be said, also attended a meeting with his CEMAC counterparts, on the request of the Development Bank of Central African States, better known by its French initials BDEAC. 

Speakers at the meeting, who included officials from the Arab Bank for Economic Development in Africa, BADEA, agreed to lend money to CEMAC countries, so they could increase their shares in BDEAC’s capital. 

"BDEAC has carried out a capital increase. States must subscribe to this increase, i.e. increase their own share of the capital. BADEA, which is also a member of BDEAC, has agreed to lend the money to the States, so that they can pay up their share of the capital. We have therefore discussed the practical details so that all this can be completed by the end of June 2024,", Minister Motaze concluded.

Major announcement from Africa

The World Bank Group used the Spring Meetings to announce it has joined forces with the African Development Bank Group, to provide electricity access to at least 300 million people in Africa by 2030.

The project, estimated to cost 30 billion dollars and will enable 300 million Africans to be connected to electricity. Lack of electricity access in Africa, it was revealed, is a significant barrier to healthcare, education, productivity, digital inclusivity and job creation.

"The World Bank institution, which provides grants and low-interest loans, is playing an essential role. At the same time, the acceleration in access to electricity could present investment opportunities for the private sector to the tune of $9 billion", stressed the Bretton Woods institution.

"Electricity access is the bedrock of all development. It is a critical ingredient for economic growth and essential for job creation at scale. Our aspiration will only be realised with partnership and ambition. We will need policy action from governments, financing from multilateral development banks, and private-sector investment to see this through," the World Bank Group officials said. 

About economic & financial reforms progoramme

On July 29, 2021, the Executive Board of the International Monetary Fund, IMF, approved the disbursement of 689.5 million US dollars (over 427 billion FCFA), to Cameroon. This was under the Extended Credit Facility, ECF, and the Extended Fund Facility, EFF.

The goal of the programme to end in mid-2024, is to ensure post-COVID-19 recovery, rejuvenate fiscal and external sustainability, promote inclusive and private sector growth, reduce corruption, enhance transparency, minimise financial risk, modernise the tax and customs administration.

The program also targets improving public finance management, reducing fiscal risks from state-owned enterprises, boost efficiency in public investment, strengthen debts management, diversify the economy, promote gender equality and green economy.