The International Development Association (IDA), a subsidiary of the World Bank which offers concessional loans and grants to the world’s poorest developing countries, has signed an agreement with the government of Cameroon, to provide a loan of $200 million (about 117, 744 billion FCFA) to the central African nation.
The agreement is part of the second development policy support operation for fiscal consolidation and inclusive growth in Cameroon.
Welcoming this agreement, Cameroon’s minister of finance, Alamine Ousmane Mey said the loan will allow the Cameroonian public treasury to benefit from significant financial resources to meet the commitments of the State.
The first transaction concluded in December 2017 was also worth $200 million. It was intended to reward the previous reforms that enabled the country to conclude its economic and financial program with the International Monetary Fund.
The signing of this second agreement is also the culmination of the satisfactory implementation of other reforms. These reforms were aimed at improving fiscal consolidation, increasing the diversification of the economy and strengthening the protection of vulnerable people.
Oil remains Cameroon’s main export commodity, and despite falling global oil prices, it still accounts for nearly 40% of exports. Real GDP is projected to grow by 4.4% in 2019 and 4.7% in 2020, following energy and transport production infrastructure start up, as well as rising world oil prices.