IMF Approves $148 Million Disbursement to Cameroon as Part of Ongoing Aid Programs

CameroonOnline.ORG | The International Monetary Fund (IMF) has announced a fresh disbursement of approximately $148 million to Cameroon, as part of its ongoing financial support programs. This installment, recently approved by the IMF’s Executive Board, brings the total funds allocated to Yaoundé to $956 million (approximately €814 million), out of a planned $1.02 billion (€868 million).

This latest round of aid includes financing under programs aimed at helping Cameroon adapt to climate change. The IMF commended the country’s authorities for maintaining macroeconomic stability despite significant internal and external shocks. However, the Fund also emphasized the need for continued fiscal consolidation to ensure long-term debt sustainability.

“Authorities have successfully maintained macroeconomic stability despite internal and external shocks,” stated Nigel Clarke, IMF Deputy Managing Director. “However, strengthening fiscal consolidation beyond the scope of the program is essential to ensure debt sustainability.”

Although the IMF acknowledged some progress in reducing the country’s debt burden, it warned that Cameroon remains close to a debt crisis. In light of this, the IMF recommends urgent reforms in several key sectors.

These include the ongoing restructuring of the petroleum refining sector, reforming the electricity industry, and improving the governance of state-owned enterprises to reduce contingent liabilities. The IMF also called for further efforts in financial sector regulation, anti-money laundering enforcement, and policies to stimulate private sector-led economic growth.

Inflation Eases, Economic Growth Forecast to Accelerate

After experiencing inflationary spikes similar to other regions in 2022 and 2023, Cameroon is expected to see a 3.4% increase in consumer prices in 2024. According to IMF projections, inflation is anticipated to decelerate gradually in the coming years, potentially reaching 2% year-over-year.

Economic growth is forecast to reach 3.6% in 2024, with expectations of a further acceleration to an average of 4.5% in the following years. This positive outlook reflects both domestic recovery efforts and international financial support, although the pace and sustainability of this growth will likely depend on the government’s ability to implement structural reforms and enhance fiscal discipline.

Political Context: Upcoming Presidential Elections

The country is also entering a politically sensitive period, with presidential elections scheduled for October 12, 2025. The outcome may influence both the direction of economic policy and the implementation of IMF-backed reforms.

In summary, while the IMF’s financial assistance provides vital support for Cameroon’s economic stability and development, it also underscores the urgency of deep and sustained reforms. With rising growth prospects but looming fiscal challenges, the path forward will require prudent management, transparent governance, and strategic investment in key sectors.