AfDB supports Cameroon’s economic reforms with €180 million loan

AfDB supports Cameroon’s economic reforms with €180 million loan

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THE African Development Bank (AfDB) has approved a loan of €180 million to the Cameroon to finance the first phase of the government’s Competitiveness and Economic Growth Support Programme (PACCE).

PACCE is the first of a three-year programmatic general budget support operations to be implemented from 2017 to 2019 in order to shore up public finances in the wake of dwindling oil prices exasperated by security and related humanitarian challenges within the country and across the CEMAC region.

‘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 (transport, energy and agriculture),’ said Ousmane Dore, Director General of the Bank’s Central Africa Hub.

The reform package of this operation is organised around two interdependent and complementary components: streamlining the public finance management framework, and strengthening the governance and competitiveness of productive sectors. Both components are expected to help streamline the public the finance management framework, reinforce macroeconomic stability, create fiscal space, as well as prioritize public investment projects and stimulate growth.

Furthermore, the programme’s focus on enhancement of governance and competitiveness of productive sectors is expected to reduce production costs, particularly in transport and electricity. This will help attract private investments and stimulate growth through the development of agro-industry and fiscal consolidation measures.

Leveraging funding for agriculture, electricity and transport sectors will significantly accomplish the Bank’s High 5 priorities including the improvement of the quality of life of the population. The programme is aligned with the two pillars of the 2015-2020 Country Strategy Paper with regards to strengthening infrastructure for inclusive and sustainable growth; and strengthening sector governance to ensure the efficiency and sustainability of transformative investment programs. It is aligned with the Bank’s 2013-2017 Private Sector Development Strategy, among others.

 

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