CAMEROON – The Government of Cameroon has secured a US$18.1 million loan from the African Development Bank for the implementation of the Public Finance Management Strengthening Support Project (PARGEFIP).
According to AfDB, implementation of the PARGEFIP project should help improve performance, integrity and transparency in Cameroon’s public financial management.
According to Racine Kane, deputy director of the African Development Bank for Central Africa: Cameroon is currently facing a twofold public finance challenge.
The first challenge is on successfully mobilizing more internal budget revenue to ensure financing of the structural infrastructure development program.
The second challenge according to Kane is on the need to improve the quality of public spending, particularly the one that is linked to public investment.
“This project is important for the good execution of the vast program of reforms that are currently underway, for the macroeconomic and budgetary stability of Cameroon,” said Solomane Koné, Country Manager of the African Development Bank.
She further assured that the country is committed to the success of the program, adding that, she was confident that the dialogue and close coordination already existing between Cameroon and the Bank will continue for the proper implementation of PARGEFIP.”
The first focus of PARGEFIP will be the strengthening of budgetary resource mobilization capacities.
This will be done through expanding Cameroon’s non-oil tax base by strengthening tax administration and combating fraud during tax collection, revealed Kevin Lumbile Project Manager, Chief Governance Expert.
The second focus according to Mr Lumbile, will be on strengthening the public finance management framework, including the public debt management framework.
In addition, the project will also support the government’s efforts to mobilize more budgetary resources to finance structural infrastructure development through training, provision of technical assistance activities, and reinforcement of logistical resources.
The African Development Bank in Cameroon has so far supported 26 public sector projects in Cameroon for a total commitment of $ 1.3 billion.
The bank has also supported 7 projects in the private sector for a total commitment of US$ 731.6 million.
AfDB’s main areas of intervention in the public sector include; transport and information technologies (43%), governance (20%), agriculture and the environment (13%), energy (20%), water and sanitation (2%) and social projects (2%).
