The government of Cameroon has been advised against excessive burrowing.
The warning was made by the International Monetary Fund Deputy Managing Director, Mitsuhiro Furusawa, at the end of his working visit to Cameroon recently.
During his visit, Mitsuhiro Furusawa met with Cameroonian authorities where he discussed the importance to maintain economic stability while making the transition towards more inclusive and sustainable higher growth.
He stated that for the country to strive over significant challenges presented by lower oil prices, reduced demand from emerging markets, tighter global financial conditions, and security challenges from neighboring countries, it must address bottlenecks in project preparation that have led to a large stock contracted.
The IMF official also advised the Cameroonian authorities to refrain from new non-concessional borrowing and be steadfast in implementing the country’s economic reform program—supported by the IMF’s Extended Credit Facility while maintaining the stability of the CFA franc peg.
Furusawa noted that the accelerated implementation of structural reforms to improve governance and the business environment will be key to enhance the economy’s resilience to future shocks and unlock Cameroon’s growth potential.
In the end, the Deputy Managing Director, said the fund is ready t support the country’s ambitious reform program not only through financing, but also through policy advice and a comprehensive capacity development strategy.