The World Bank to grant more than 54.2 billion CFA francs to Cameroon for budget support

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L' accord de crédit a été signé ce 16 juin 2021 à Yaoundé entre le Ministre de l’Economie, de la Planification et de l’Aménagement du Territoire, Alamine Ousmane Mey et la Directrice adjointe des Opérations de la Banque mondiale au Cameroun, KEIKO KUBOTA.

This was the third and final development policy support operation for budget strengthening and inclusive growth in Cameroon initiated by the World Bank since December 2017. Through this operation, CFA francs 54.182 billion will be directly invested in the Treasury, upon fulfilling the preconditions linked to certain reforms Cameroon has undertaken. As regards this third operation, the reforms underway involve tax and economic measures to mitigate the detrimental effects of the Covid-19 in Cameroon. For the World Bank Operations Manager, Keiko Kubota, the ambitious reform programme that Cameroon implemented in response to the Covid-19 pandemic, by strengthening the public administration, encouraging competitiveness, and protecting the poor and the most vulnerable is to be commended. The Bank has granted this third budget support to reinforce Cameroon's efforts to improve the well-being of the population.

Minister Alamine Ousmane Mey, for his part, while praising the excellent relations between the World Bank and Cameroon, indicated that since 2017, as part of its support to the implementation of reforms for budget consolidation and inclusive growth, the World Bank has provided Cameroon with general budget support amounting to US$400 million, including US$200 million for the first operation concluded in December 2017 and US$200 million for the second operation concluded in October 2019. With the agreement signed on 16 June, Cameroon has received a total of 500 million dollars, equivalent to 270.5 billion CFA francs instead of 400 million dollars as initially planned. As a reminder, with regard to the World Bank's development projects in Cameroon, the total outstanding commitments amount to about US$1,746 million, or about CFAF 986.49 billion for 15 active projects with an average maturity of 4 years. In addition, five projects and additional funding totalling USD 772 million have already been approved by the World Bank's Board of Directors and are pending signature.

It is worth noting that the commitments relating to active projects are mainly concessional loans. This concerns funding raised up to 68% from the IDA channel against only 31% from the IBRD channel.
The remainder (2%) is made up of grants. It is also important to point out that the World Bank has mobilised US$ 300 million in funding from its IBRD window as a partial risk guarantee for the Nachtigal hydroelectric project.