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Cameroon: Fifth Review Under the Three–Year Arrangement Under the Poverty Reduction and Growth Facility, Financing Assurances Review, and Requests for Waiver of Performance Criterion, Modification of Performance Criteria and Extension of Arrangement—Informational Annex

International Monetary Fund
Published Date:
August 2008
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Information about Sub-Saharan Africa África subsahariana
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I. Cameroon: Relations with the Fund

(As of April 30, 2008)

I. Membership Status: Joined 07/10/1963; Article VIII

II. General Resources Account:

SDR million%Quota
Fund holdings of currency184.9099.57
Reserve position in Fund0.800.43

III. SDR Department:

SDR million%Allocation
Net cumulative allocation24.46100.00

IV. Outstanding Purchases and Loans:

SDR million%Quota
PRGF arrangements13.257.14

V. Latest Financial Arrangements:

TypeDate of


Amount approved

(SDR million)
Amount drawn

(SDR million)

VI. Projected Payments to Fund (SDR million; based on existing use of resources and present holdings of SDRs)


VII. Implementation of HIPC Initiative:


I. Commitment of HIPC assistance
Decision point dateOct 2000
Assistance committed1
By all creditors (US$ million)1,267.00
Of which: Fund assistance (US$ million)37.04
(SDR equivalent in millions)28.62
Completion point dateApr 2006
II. Delivery of Fund assistance (SDR million)
Amount disbursed28.62
Interim assistance11.25
Completion point17.37
Additional disbursement of interest income25.05
Total disbursements33.67

VIII. Implementation of MDRI Assistance:

I. MDRI-eligible debt (SDR million)1173.26
Financed by: MDRI Trust149.17
Remaining HIPC Resources24.09
II. Debt Relief by Facility (SDR million)
Eligible Debt
April 2006N/A73.26173.26

IX. Safeguards Assessments:

The Bank of the Central African States (BEAC) is the regional bank of Central African States of which Cameroon is a member. The most recent safeguards assessment of the BEAC was completed on August 30, 2004. The assessment found that the Bank has implemented a number of measures to strengthen its safeguards framework since the 2001 safeguards assessment in the areas of external and internal audits, and financial reporting. A summary of the recommendations of the safeguards assessment was reported in Country Report No. 7/129.

The latest monitoring results, obtained in 2007, indicate the existence of certain vulnerabilities in key areas, especially in terms of implementation of an internationally accepted accounting framework and establishment of strong internal control systems. Documentation for a new update safeguards assessment of BEAC has been requested on April 18, 2008.

X. Exchange Arrangements:

Cameroon participates in a currency union with five other members of the CEMAC and has no separate legal tender. Cameroon’s currency, the CFA franc, is pegged to the euro at the fixed rate of CFAF 655.957 per euro. Local currency equivalent: CFAF 706.7 = SDR 1, as of November 30, 2007. Effective January 1, 2007, the exchange arrangement of the CEMAC countries has been reclassified to the category of conventional pegged arrangement from the category of exchange arrangement with no separate legal tender. The new classification is based on the behavior of the common currency, whereas the previous classification was based on the lack of a separate legal tender. The new classification thus reflects only a definitional change, and is not based on a judgment that there has been a substantive change in the exchange regime or other policies of the currency union or its members.

Cameroon maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions, except for restrictions maintained for security reasons that have been notified to the Fund pursuant to Executive Board decision 144-152/51.

XI. Article IV Consultation:

The last Article IV consultation with Cameroon was concluded by the Executive Board on June 18, 2007.

XII. FSAP Participation and ROSCs:

The Financial System Stability Assessment (FSSA) report of May 24, 2000 is based on the findings of the joint IMF-World Bank mission that visited Cameroon during February 29 March 14, 2000. The findings of the Financial Sector Assessment Program (FSAP) mission were presented to the authorities on March 13-14, 2000 in the context of the 2000 Article IV consultation. An updated assessment was carried out by a joint IMF-World Bank FSAP mission in June 2007.

The Report on the Observance of Standards and Codes (ROSC) on fiscal transparency and transparency of monetary and financial policies was issued on June 16, 2000.

The data module of the ROSC was issued on August 24, 2001 (CR/01/150).

XIII. Technical Assistance:

April 2008: FAD mission on the implementation of the new organic law.

April 2008: FAD mission on tax administration modernization.

September 2005-April 2008: presence of an FAD resident expert for fiscal administration (shared with other countries in the region).

October 2006: FAD mission on poverty and social impact assessment of the current petroleum price mechanism.

October 2006: FAD mission (jointly with World Bank) to assess preparation of the new organic budget law, and review expenditure classification system.

March 2006: STA mission on balance of payments statistics compilation.

July 2005: FAD mission on tax policy.

May 2005: FAD mission on tax and customs administration.

December 2004: STA mission on the compilation of national accounts and follow-up by FAD expert on public expenditure management.

October 2003: STA mission on the compilation of national accounts.

September 2003: FAD mission on non-oil revenue mobilization and follow-up by FAD expert on public expenditure management.

June 2003: FAD mission on public expenditure management.

March 2003: FAD mission on public expenditure management. November 2002: FAD mission on public expenditure management.

May 2002: FAD mission on public expenditure management.

April 2002: FAD mission follow-up on the personal income tax system.

March 2002: FAD mission on the implementation of the action plan for government revenue and expenditure.

October-November 2001: FAD mission on tax and customs administration.

September 2001: FAD missions on the audit of the treasury and poverty tracking.

June 2000: FAD mission on the modernization of customs.

April 2000: STA mission on General Data Dissemination System (GDDS/ROSC).

November 1999: FAD mission on modernization of the tax department.

June-July 1999: FAD technical assistance mission on customs.

May-June 1999: FAD follow-up mission on value-added tax (VAT) and tax administration.

January-March 1999: Placement of an FAD advisor for the introduction of the VAT.

November 1998: Placement of an FAD resident advisor on public expenditure management

October-November 1998: STA mission on metadata project.

September 1998: Placement of FAD advisor for the VAT.

July 1998: FAD mission on preparation of a VAT.

February 1998: FAD technical assistance mission on review of public expenditure management.

November 1997: FAD technical assistance mission on preparation for the introduction of the VAT.

January-February 1997: AFR/PDR mission, in collaboration with experts from the World Bank and the French government, on external debt statistics.

May 1996: AFR mission, in collaboration with a team from the French Treasury and the Banque de France, on the system of fiscal reporting and monitoring.

February 1996: FAD mission on direct taxation and agricultural sector taxation.

MayJune 1995: STA mission on balance of payments statistics.

XIV. Resident Representatives:

The post of IMF Resident Representative has been maintained in Yaoundé continuously since 1989. The current Resident Representative, Ms. Kabedi-Mbuyi, has been in her post since July 2005.

II. Cameroon: Relations with the World Bank

(As of May 15, 2008)

Government’s Strategy Supported by the World Bank

1. The government’s strategy for economic growth and poverty reduction, as described in the poverty reduction strategy paper (PRSP) communicated to the World Bank and the IMF in April 2003, is articulated along seven pillars, as detailed in IDA/SecM2003—0434. The Government has begun revising the PRSP, with an expected completion date of early 2008.

World Bank Lending and Strategy

2. A joint IDA-IFC Interim Strategy Note (ISN) was presented to the Board on December 7, 2006. The strategy, which covers fiscal year (FY) 0708, maintains the broad objectives of the previous Country Assistance Strategy but with enhanced emphasis on governance including combating corruption, managing for results, and strengthening partnerships, and alignment and harmonization of external assistance in line with the Paris Declaration for aid effectiveness. World Bank’s support to the Government’s strategy is integrated around six proposed outcomes:

3. Strengthening PRSP implementation: Planned activities include policy dialogue and technical assistance to support revision of the PRSP, with a focus on sharpened priorities and an explicit results framework, including monitoring and evaluation mechanisms.

4. Strengthening governance, including anticorruption and public finance management: Activities include planned financing of an operation to increase transparency and accountability as well as planned programmatic support to strengthen public financial management as part of a multi-donor platform; ongoing policy dialogue and technical assistance to support implementation of the Extractives Industries Transparency Initiative (EITI); and support to anticorruption efforts. Corruption assessments will be conducted in key sectors as part of a coordinated support effort by international partners initiated by the Bank and linked to OECD-DAC efforts to develop a common anticorruption policy. An assessment of corruption in the health sector was completed in July 2007.

5. Fostering private sector development: Activities include enhanced IFC support to small enterprises; stepped-up IFC/Bank policy dialogue and technical assistance to strengthen Cameroon’s weak business climate, including through a jointly appointed senior IFC/Bank staff based in Cameroon; and support to tighter regional integration, through an ongoing regional payment systems operation and a planned operation to strengthen regional financial institutions.

6. Supporting infrastructure and urban development: Activities include ongoing financing of the Douala infrastructure, the railway concession, the regional air transport safety and security operations, an urban and water development project, and a regional transport and trade facilitation operation; as well as a planned energy sector operation and an ongoing policy dialogue on energy issues.

7. Supporting the forestry and environment sectors and strengthening rural and agricultural development: Activities include ongoing financing of the multi-partner-supported forestry and environment program, the community development program, and an operation to strengthen petroleum environment management capacity; an ongoing ESW on forestry reform; and a planned rural investment climate assessment/value chain analysis as key input to the preparation of a Sector-wide approach (SWAp) in the agriculture sector.

8. Promoting human development: Activities include financing of an ongoing operation to increase capacity in the education sector, a planned follow-up multi-sectoral HIV/AIDS operation, and planned support of a SWAp in the health sector (FY08). Within the health SWAp, the Bank expects to provide financial support for capacity building, systems development, and delivery of basic health services: (i) strengthen the normative functions of the Ministry of Health; (ii) reinforce the capacity of provinces to manage, allocate, and plan resources, and to supervise, and monitor districts; and (iii) fund a basic package of services included in a consolidated health district plan which reflects sector priorities based on the updated Health Sector Strategy. The Bank has also completed a fiscal space study in the health sector.

9. As of January 31, 2008, the IDA portfolio (including GEF co-financing) comprises ten active projects with a total commitment of US$433.8 million, of which US$311.7 million are not disbursed yet. These projects cover a broad range of sectors, including infrastructure, education, transport, environment, forestry, local development, urban and water supply, and public-private partnerships for growth and poverty reduction. IDA also manages five grants with a total commitment of US$2.5 million in the areas of governance (EITI), PRSP and health sector project preparation.

Table 1:World Bank Portfolio in Cameroon(commitments at January 31, 2008, in US$ million)
IDA Total433.8
Douala Infrastructure56.4
Community development program (IDA + GEF)26.0
Public-private partnership for growth20.9
BEAC Payment Systems14.5
Forest and environment development (IDA+GEF)35.0
Urban and water sector development80.0
Railway Concession21.4
Air Transport Safety and Security14.5
CEMAC transport and transit facilitation program146.9

10. In addition to its lending activities, the World Bank has been supporting the government with analysis and a policy dialogue in such areas as:

  • Monitoring and assisting on the PRSP implementation (i) by providing assistance and formulating sector strategies, sector and global medium-term expenditure frameworks to align the national budget to the PRSP development objectives; (ii) carrying out an Investment Climate Assessment (ICA) in FY06 to sharpen PRSP policies for economic growth and diversification, and poverty reduction.
  • Strengthening the dialogue and action on the governance agenda with an active role in (i) the Multidonor Platform on Public Finance that is working with the Government on improving public financial management, and (ii) working closely with other partners to support the government’s efforts to combat corruption. To support these activities a Public Expenditure Management and Financial Accountability Review (PEMFAR) and a Country Procurement Assessment Review have been undertaken.

IMF–World Bank Collaboration in Specific Areas

11. The IMF and World Bank staffs collaborate on (i) the HIPC Initiative and the PRSP process and specifically worked jointly on the documents for the HIPC completion point and the JSAN of the PRSP progress report, which were presented to the Boards in April 2006; (ii) analyses and reforms in public financial management; and (iii) other governance reforms, including the customs systems. Table 2 briefly describes each area and the specific policy advice support provided by the two institutions.

Table 2:Cameroon: Bank/Fund Collaboration
AreaDescriptionSpecialized Advice/ Reforms Supported by FundSpecialized Advice/ Reforms Supported by Bank
Public financial managementBank and Fund missions analyzing aspects of fiscal managementTax analysis and policies, strengthening of control agencies; expenditure management, including expenditure classification treasury management; transparency and reporting in budget operations; budget execution, monitoring and evaluationExpenditure policy and budget allocation; budget planning and programming, including preparation of global and sector MTEFs; budget execution evaluation

Public procurement reform

Budget tracking in key sectors
Other governance reformsCoordination of Bank/Fund staff work with UNDP on developing implementation plansCustoms and tax reformAnticorruption agenda; Decentralization EITI
Structural reformsContinuation of the structural reforms required to sustain growthTrade policies; financial sector reformReforms in education, health, transport, energy, rural infrastructure, and urban development Restructuring and privatization of public enterprises, including CAMAIR, CAMTEL, SNEC, and CAMPOST Institutional and human capacity building, including civil service reform (pay issues) Private sector development and trade and transit policies Financial sector strategy
HIPC completion point and PRSP related activitiesJoint tracking of HIPC–related spending and the preparation of the HIPC completion point documents and JSAN of PRSP progress reports

12. The Fund takes the lead on policy advice and reforms related to (i) macroeconomic policy and short-and medium-term financial programming; (ii) tax policy and administration; (iii) information and financial management systems for government revenue; (iv) budget accounting; (v) treasury procedures; and (vi) expenditure classification and tracking. Bank staffs participate in the meetings of Fund missions with the authorities in these areas.

13. The World Bank takes the lead on (i) institutional and human capacity building for public sector management; (ii) anticorruption; (iii) budget planning and programming including formulation of sectoral strategies and medium-term expenditure frameworks; (iv) EITI implementation; (v) analysis of poverty and sources of growth to support the PRSP process, (vi) advice on sector development particularly the social sectors, infrastructure, agriculture, and forestry; (vii) the design, implementation and monitoring of the structural reform program including the privatization of public enterprises; and (viii) decentralization agenda.

14. Both the Bank and Fund have responsibility for policy advice on (i) budgetary procedures, government expenditure management systems, and expenditure execution, including tracking of poverty–reducing expenditures; (ii) the functioning of internal and external budget control institutions; (iii) customs reform; (iv) financial system reform; and (v) governance. The two institutions also jointly support and monitor the HIPC Initiative and PRSP process. Finally, the Bank and the Fund have jointly conducted a FSAP for the CEMAC region, and a joint FSAP for Cameroon.

Questions may be addressed to Abdoulaye Seck (Tel. 237-2220-3815) or Katrina Sharkey (Tel. 473-6288).

III. Cameroon: Table of Common Indicators Required for Surveillance

(as of May 15, 2008)

Date of latest








Exchange RatesApr. 2008May 2008MMM
International Reserve Assets and Reserve Liabilities of the Monetary Authorities1Dec. 2007Mar. 2008MMM
Reserve/Base MoneyJan. 2008Apr. 2008MMM
Broad MoneyJan. 2008Apr. 2008MMM
Central Bank Balance SheetJan. 2008Apr. 2008MMM
Consolidated Balance Sheet of the Banking SystemJan. 2008Apr. 2008MMM
Interest Rates2Jan. 2008Apr. 2008MMM
Consumer Price IndexMar. 2008May 2008MQQ
Revenue, Expenditure, Balance and Composition of Financing3 General Government4NANANANANA
Revenue, Expenditure, Balance and Composition of Financing3 Central GovernmentDec. 2007Feb. 2008MMPartial data published monthly.
Stocks of Central Government and Central Government–Guaranteed Debt5Dec. 2007Jan. 2008MMM
External Current Account Balance2004Oct. 2007AANA
Exports and Imports of Goods and Services6Dec. 2007Mar. 2008MMNA
GDP/GNPDec. 2006Sept. 2007AANA
Gross External DebtN/AN/AN/AN/AN/A

Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market–based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Goods only, data on trade in services are not available.

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).

Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market–based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Goods only, data on trade in services are not available.

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).


Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts can not be added.


Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.


The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

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