AfDB lends $18.1mn to boost public financial management in CameroonDevdiscourse News Desk | Yaoundé | Updated: 08-11-2019 19:06 IST | Created: 08-11-2019 19:06 IST
The African Development Bank's board of directors recently agreed for a loan of USD 18.1 million from the African Development Fund for public finances of Cameroon.
For the implementation of the Public Finance Management Strengthening Support Project (PARGEFIP), this financial assistance from the African Development Fund must contribute to improving performance, integrity and transparency in public financial management.
"It's about successfully mobilizing more internal budget revenue to ensure financing of the structural infrastructure development program and improve the quality of public spending, particularly that linked to public investment," the deputy director of the African Development Bank for Central Africa, Racine Kane explained. According to Kane, Cameroon's current public finance challenge is twofold.
"This project is important for the good execution of the vast program of reforms under way, for the macroeconomic and budgetary stability of Cameroon as for the entire CEMAC zone, assured Solomane Koné, Country Manager of the African Development Bank. The country is committed to the success of the program and we are confident that the dialogue and close coordination already existing between Cameroon, the Bank and other development partners will continue for the proper implementation of PARGEFIP. The first focus of PARGEFIP will be the strengthening of budgetary resource mobilization capacities. The objective is to expand Cameroon's non-oil tax base through strengthening tax administration and combating fraud, tax evasion and illicit financial flows. The second focus will be on strengthening the public finance management framework, including the public debt management framework," Kevin Lumbila, Project Manager, Chief Governance Expert opined.
In addition, through technical assistance activities, the reinforcement of logistical resources and training, the project will support the government's efforts to mobilize more budgetary resources to finance the structural infrastructure development program.
At the end of September 2019, the portfolio of the African Development Bank in Cameroon included 26 projects for a total commitment of USD 1.3 billion for the public sector (18 national projects and 8 regional projects) and USD 731.6 million for the private sector (7 projects). The main areas of intervention in the public sector are in transport and information technologies (43 percent) but also in governance (20 percent), agriculture and the environment (13 percent), energy (20 percent), water and sanitation (2 percent) and social (2 percent).