AfDB approves US$213.41mn for Cameroon’s economic reforms programme

imageedit 2 6902485467The AfDB has approved a loan of US$213.41mn to 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 by the government of Camerron. The programme will be implemented from 2017 to 2019 to shore up public finances aftermath of dwindling oil prices, which was exasperated by security and humanitarian challenges across the CEMAC region.

“The program 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,” according to Ousmane Dore, director general of the AfDB’s Central Africa Hub.

The reform package of this operation has been organised around two interdependent and complementary components, including streamlining the public finance management framework and strengthening the governance and competitiveness of productive sectors.

Both components are expected to streamline the public the finance management framework, reinforce macroeconomic stability, create fiscal space and prioritise public investment projects and stimulate growth.

In addition, the programme also focuses on enhancing the governance and competitiveness of productive sectors, which 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,” said AfDB.

Leveraging funding for agriculture, electricity and transport sectors is expected to accomplish AfDB’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 programmes.

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