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Cameroon, IMF Reach Agreement On Economic Reforms

Cameroon and the International Monetary Fund (IMF) have reached a staff-level agreement on the seventh reviews under the Extended Credit…

Cameroon and the International Monetary Fund (IMF) have reached a staff-level agreement on the seventh reviews under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF), as well as the second review under the Resilience and Sustainability Facility (RSF).

 

The agreement, reached following a mission led by IMF Mission Chief, Cemile Sancak, highlights the government’s commitment to implementing a comprehensive reform program. However, the International Monetary Fund mission also noted delays in the implementation of structural reforms, particularly in the areas of governance in the extractive industries, business climate, state-owned enterprise reform, and public financial management.

The IMF has encouraged the Cameroonian authorities to accelerate progress on the restructuring of the national refinery company (SONARA), the country’s sole refinery, which was severely damaged by a fire in 2019. The mission also called for a review of the 2013 investment code to create a more attractive business environment.

To support the restructuring of SONARA, the government has been negotiating with various creditors, including major trading firms. In 2022 and 2023, the government signed several debt restructuring agreements with companies such as Vitol, PSTV DMCC, Trafigura, and most recently, Mercuria Energy Trading. These agreements have helped to alleviate the financial burden on SONARA and allow for the gradual repayment of its debts.

The IMF’s endorsement of Cameroon’s economic reform program is a significant boost for the country’s efforts to achieve sustainable growth and reduce poverty. However, the successful implementation of the program will require continued commitment and cooperation from the government and its partners.

 

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