growth says thank you to CAN 2019!

Cameroon has passed its regular passing review with the recently reviewed IMF, the program agreed by both sides and supported by financial assistance under the Extended Credit Facility (IMF). Following the mission to Yaoundé from 4 to 5 July, the Fund's Executive Board concluded its second review and on 6 July approved a disbursement of $ 77.8 million for from the country. As a reminder, the three-year agreement concludes on June 26, 2017 gives Cameroon access to financial support of nearly US $ 680.7 million, in return for the implementation of structural reforms

According to fund estimates, growth slowed in 2017 mainly due to a sharp decline in oil production and despite the gradual rebound in international prices seen in recent months. " The macroeconomic outlook for 2018 remains positive, with growth expected to rebound to 4%, driven by the start of gas production, construction activities for the 2019 African Cup of Nations (CAN) ] Has anticipated the Fund, which has also recalled the authorities' commitments to adopt economic reforms aimed at restoring fiscal and external sustainability as well as supporting the growth of the private sector. However, and despite some positive points raised by the Fund, much remains to be done to clean up the macroeconomic situation.

"Cameroon's performance under its ECF-supported program has been mixed in a context of slowing growth. economic activity and security concerns. Expenditure overruns at the end of the year offset the strong non-oil revenue collection, resulting in a higher than expected budget deficit. Nevertheless, the implementation of structural reforms has been generally satisfactory and net foreign assets have accumulated faster than expected due to a tightening of the current account deficit, "said Mitsuhiro Furusawa, deputy director general and chairman of the After the review

In order to rectify the situation, the authorities have promised to implement corrective measures to put the budget adjustment back on track this year, notably through a supplementary budget law. which will result in a tightening of expenditure controls. " The strict implementation of the revised 2018 budget targets will be essential to support the establishment of fiscal and external buffers for Cameroon and the region " again recommended the IMF, which also emphasized that " in view of the heavy pressure on the expenses associated with the 2018 elections, the deterioration of security conditions and the holding of CAN 2019, any additional oil revenue should be saved . "

Regional Context [19659008] The country of Paul Biya can therefore do better, especially since the fragilities persist on the growth of its economy. For the Africa Department director of the IMF, Abebe Aemro Selassie, who led the mission in Yaounde, " it is essential that Cameroon continue to play a leading role in pursuing fiscal consolidation to ensure the success of the regional strategy of CEMAC ". According to him, satisfactory progress has certainly been made in the face of the macroeconomic difficulties encountered in the CEMAC region following the oil shock to restore stability and achieve sustained and inclusive economic growth. "But this progress remains fragile and the national and regional authorities must continue to ensure that the objectives of the strategy are achieved ," added Abebe Aemro Selassie, who will ultimately continue to expand the non-oil revenue base, including reducing tax exemptions, and improving the quality of spending to create fiscal space for social spending and priority investment, while preserving debt sustainability.

Progress remains fragile, as evidenced by budget slippages observed in some CEMAC countries, and the effort can not be relaxed. With the support of regional institutions and development partners, the authorities of the CEMAC countries should therefore continue to implement in a determined way the economic policies and reforms needed to achieve the budgetary objectives that are established in the programs supported by the IMF "said the head of mission of the IMF.

The countries of the CEMAC are therefore warned and Cameroon knows what remains to be done in order to hope out of the situation and especially to receive support from the IMF. As such, regional institutions have been called by the institution to continue these efforts to restore domestic and external economic viability, particularly to continue to rebuild regional reserves, and pave the way for sustained and inclusive growth. In short, without common answers, it will be difficult for the CEMAC countries, most of which are supported by the Fund, to turn the page on the crisis that is taking place in a socio-political context that is tense at the sub-regional level and for different factors. 19659002] In the meantime, Cameroon can take advantage of the investments generated by the preparatory work for CAN 2019 and the rebound in oil prices, as well as the increase in gas production, in order to maintain its relative growth in terms of water flow. happening in neighboring countries