The International Monetary Fund (IMF) has approved the disbursement of $77.8 million, approximately FCFA 44 billion, to Cameroon. This decision follows the second review of Cameroon's economic and financial program, supported by the Extended Credit Facility (ECF). The IMF's Executive Board made the decision during a meeting in Washington, D.C.
While approving the disbursement, the IMF noted that Cameroon's performance under the ECF-supported program has been mixed. The organization pointed to a slowdown in economic activity and security concerns as factors influencing this performance. The IMF also noted end-of-year spending overruns, offsetting strong non-oil revenue collection, which led to a higher-than-expected budget deficit.
However, the IMF acknowledged positive aspects, including the generally satisfactory implementation of structural reforms and the faster-than-expected accumulation of net foreign assets, thanks to the reduction of the current account deficit. The IMF's directors welcomed the measures taken by the Cameroonian authorities to reorganize fiscal adjustment and strengthen expenditure controls, while maintaining non-oil revenue mobilization targets. They also appreciated the authorities' commitment to continue along this path, including preparing a revised budget for 2018 and tightening expenditure controls.
To ensure the success of the three-year program, the IMF recommends that Cameroon strictly limit new borrowing and prioritize concessional loans to maintain public debt sustainability. The organization also advises reducing the stock of contracted but undisbursed debt and implementing structural reforms in the financial sector to reduce vulnerabilities and improve competitiveness. Despite these challenges, Cameroon's macroeconomic outlook for 2026 remains positive, with growth projected at 3.3 percent, driven by large-scale mining activity and incremental gains in electricity supply.
The IMF expects growth to exceed 4% from 2028.
