AfDB agrees €180m loan for Cameroon to strengthen public finances

27 Nov 17

The African Development Bank has agreed to a €180m loan to support Cameroon’s reforms to shore up public finances. 

Following the decrease in oil prices and humanitarian challenges within the country and region, the loan would finance the first phase of the government’s programme to support economic growth and competitiveness.

“The programme aims at preserving macroeconomic and budgetary stability and contributing to laying the foundations for robust, resilient and inclusive economic growth by improving the public finance management framework and strengthening the governance and competitiveness of productive sectors,” Ousmane Dore, director general of the bank’s central Africa hub said.

Both aspects of the reforms, public finance management and governance, are expected to streamline the public finance management framework, reinforce macroeconomic stability, prioritise public investment projects and stimulate growth in the country. 

The focus of the government’s Competitiveness and Economic Growth Support Programme could reduce production costs, particularly in transport and electricity, the bank said in a statement.

It would also attract more private investments and stimulate growth through fiscal consolidation measures and the development of agro-industry.

The president of the African Development Bank said Cameroon could become an emerging economy by 2035 and endorsed the government’s intensions to achieve economic growth. 

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