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Cameroon: Excessive Transfer Of Public Funds Abroad, IMF Warns CEMAC Countries

IMF
IMF

The International Monetary Fund IMF has expressed worry over what it says is a growing tendency for governements and citizens of CEMAC to transfer funds to foreing banks rather than keeping them at home, and attract foreign change.

 

Working in collaboration with the steering Committe of CEMAC  Economic and Financial Reform Program, PREF-CEMAC, the Bretton woods institute as reported by the Guardian News paper urged member states and public enterprises of the community to repatrriate public funds held abroad.

This measure,they said, will contribute to the reconstitution and consolidation of foreign exchange reserves and support the financing of national economies.

According to the IMF ”There is also evidence of very large deposits by CEMAC residents in foreign countries, which are likely not in total compliance with CEMAC residents in foreign countries, which are likely not in total compliance with CEMAC foreign exhcange regulations. Such regulation requires that holdings by CEMAC residents in foreign banks bare kept only in limited amounts and for justifiable reasons, such as to finance anticipated imports or to cover short-term debt service

Given the weight of oil brevenues in the income of many CEMAC countries with five out of six of them being oil producers, part of such holdings may be related to unrecorded oil export earings proceed, the IMF affirmed.

Lines in the Guadian Post states that Cameroon government considers attracting  Foreign Direct Investment, FDI an important pillar of its development strategy.For which reason, many Cameroonian institutions have bodies that work to attract FDI,with mixed results.

In collaboration with public and private institutions, the Cameroon Investment Promotion Agency, CIPA implements governement policies to promote and facilitate all forms of direct investment in Cameroon.

To achieve thus end, CIPA receives and studies investment proposals, assist with visa applications for foreign investors and helps in the accreditation of companies.



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