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AfDB to help Streamline Public Finances and Improve Competitiveness with a Grant approximately $53 Billion

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C’est l’objectif de l’accord de prêt signé jeudi 19 décembre 2019 à Yaoundé par le Ministre de l’Economie, de la Planification et de l’Aménagement du Territoire, Alamine OISMANE MEY et le Représentant-Pays de la Banque Africaine de Développement au Cameroun, Solomane KONE.

The economic cooperation between Cameroon and the African Development Bank Group has just been strengthened by the signing of a new agreement worth 80.4 million euros (about CFAF 53 billion) to finance the third and final phase of the Competitiveness and Economic Growth Support Programme in Cameroon (PACCE-III). This operation brings to nearly CFAF 270 billion, the total amount of budgetary support from this development partner, in support of the implementation of Cameroon's Economic and Financial Programme concluded with the IMF in June 2017. It illustrates efforts the Cameroonian government made during the first two phases of the PACCE, which enabled the stabilisation of the macroeconomic framework and contributed to the gradual reduction of the budget deficit, the sustainability of public debt and the control of inflation.

PACCE-III is a programmatic support anchored on the growth and employment strategy adopted by the Government. It aims, on the one hand, at consolidating the State's budgetary position by rationalising public expenditure in order to create the budgetary margins needed to finance priority investments, and, on the other hand, at creating conditions for sustainable and inclusive economic growth through the strengthening of governance and the competitiveness of productive sectors by improving the efficiency and quality of road and energy infrastructure. The Programme is therefore structured around two major components, namely, rationalisation of public finance management and strengthening of the productive sectors competitiveness.

With regard to public finance management, the Government announces that sustained emphasis will be placed on strengthening macroeconomic stability, creating additional budgetary room for manoeuvre, selecting public investment projects with a high socio-economic impact and accelerating economic growth in order to bring about a far-reaching transformation of the structures of the national economy. In addition, the public authorities intend to increase their efforts aimed at improving the quality of public expenditure and the impact of public investment on the economy. This will be done through further rationalisation of strategic choices and better preparation of investment projects in strict compliance with the provisions in force relating to the maturation process of investment projects.

Moreover, with a the view to making the private sector the main growth driver, strengthening the competitiveness of the productive sectors is envisaged within PACCE-III, with the support of measures for a profound and structural improvement of the business environment. In this regard, "improving the supply and quality of transport and energy services remains the government's priority," said MINEPAT, for whom this new financing agreement reflects the confidence placed by the AfDB in Cameroon. To date, the cooperation portfolio between the two parties amounts to CFAF 1.727 billion and covers 35 operations with a concentration in the infrastructure sector. The latest operation being "the approval on December 18, 2019 by the institution's Board of Directors, the financing of the second tranche of the Ring Road for 161.6 million euros or CFAF 106 billion," the AfDB Country Representative in Cameroon revealed.