Cameroon's Fuel Subsidy Cuts: Economic Growth Amid Consumer Challenges

Cameroon is set to reduce fuel subsidies by over 90% in 2025, in alignment with IMF recommendations. While investors are pleased, consumers facing rising living costs express concerns. Measures like wage increases were introduced previously, but new mitigations remain uncertain. Economic growth is anticipated, though inflation poses a concern.

Fuel prices in Cameroon are slated to increase again next year as the government plans further subsidy cuts according to the International Monetary Fund's guidelines.

This will be the third reduction since Cameroon's initiative last year, slashing subsidies by over 90% to 15 billion CFA francs ($24 million) from 263 billion CFA francs ($424 million).

While investors applaud the move, it faces consumer opposition amid living cost hikes. Economic analyst Jean Cedric Kouam warns of short-term inflation but sees long-term benefits. Government measures to counter rising prices included wage increases, yet future measures remain unclear.

(With inputs from agencies.)