Boko Haram has Sharply Lowered Cameroon’s Export Earnings—IMF

By Modupe Gbadeyanka

Deputy Managing Director of the International Monetary Fund (IMF), Mr Mitsuhiro Furusawa, has disclosed that Boko Haram insurgency in the Lake Chad basin, which also includes Nigeria, has added to the burden of Cameroon.

Mr Furusawa noted that this has sharply lowered export earnings and revenues for Cameroon as well as higher government expenditure, emphasising that poverty, inequality, and unemployment levels remain high.

The IMF executive, after a visit to Cameroon on Monday, commended the country’s authorities for their leadership in addressing the challenges facing Cameroon and the Economic and Monetary Community of Central African States (CEMAC).

Cameroon is CEMAC’s largest economy and it has played a central role in the coordinated efforts to maintain regional stability that led to the IMF Executive Board’s recent approval of financial support for economic reform programs in Gabon, Cameroon and Chad.

Mr Furusawa disclosed that during his meetings with the authorities, “We discussed how to maintain economic stability while making the transition towards more inclusive and sustainable higher growth.”

He stressed that Cameroon must continue to deal with the significant challenges presented by lower oil prices, reduced demand from emerging markets, and tighter global financial conditions.

Mr Furusawa said he discussed a range of policy options available for the authorities to complete ongoing infrastructure projects with the authorities as well as address bottlenecks in project preparation that have led to a large stock of contracted but undisbursed loans and refrain from new non-concessional borrowing.

“Strong ownership and steadfast implementation of the country’s economic reform program—supported by the IMF’s Extended Credit Facility—will be essential to its success, as well as to maintaining the stability of the CFA franc peg. I noted that accelerated implementation of structural reforms to improve governance and the business environment will be key to enhance the economy’s resilience to future shocks and unlock Cameroon’s growth potential.

“I would like to thank the government and people of Cameroon for their welcome and warm hospitality.

“The Fund looks forward to continuing its strong partnership with the government and supporting its ambitious reform program not only through financing, but also through policy advice and a comprehensive capacity development strategy,” he said in Yaoundé after the meeting.

Mr Furusawa described his visit to Cameroon as “very helpful,” thanking the authorities “for meeting with me to discuss their country’s economic prospects.”

He specifically thanked Prime Minister Philémon Yang, Finance Minister Alamine Ousmane Mey, Economy Minister Louis Paul Motazé and Governor Abbas Tolli of the Bank of Central African States for their fruitful talks.