|Approval Date||22 Nov 2017|
|Signature Date||15 Dec 2017|
|Planned Completion Date||30 Jun 2018|
|Last Disbursement Planned Date||30 Dec 2019|
|Sovereign / Non-Sovereign||Sovereign|
|DAC Sector Code||15124|
The proposed orperation concerns a EUR 180 million AfDB loan to the Republic of Cameroon to finance the Competitiveness and Economic Growth Support Programme (PACCE). This is the first of three programme-based General Budget Support (GBS) operations covering the 2017-2019 period for an indicative total financing of EUR 540 million. It is a response to the request submitted to the Bank in November 2016 by the Government of Cameroon amid the deterioration of the country’s public finance due to the drastic and continuous fall in oil prices. The design of this programme-based operation took into account the need for the Bank to contribute to addressing the above-mentioned challenges and to supporting reforms aimed at promoting accelerated, sustainable and inclusive growth in Cameroon. PACCE aims to contribute to laying the foundations for accelerated, resilient and inclusive economic growth by improving the public finance management (PFM) framework and strengthening the governance and competitiveness of productive sectors (transport, energy and agriculture). The reform package in this programme hinges on two interdependent and complementary components. Component 1 which aims to streamline the public finance management framework will help to reinforce macroeconomic stability, create fiscal space, prioritize public investment projects, and stimulate growth. The measures proposed in Component 2, focusing on the enhancement of governance and competitiveness of productive sectors, will contribute to reducing factor, transport and electricity access costs, attracting private investments, stimulating growth through the development of agro-industry and strengthening fiscal consolidation measures by increasing tax revenue derived from a more vibrant private sector. PACCE is a balanced programme that combines PFM, public investment, sector governance and economic competitiveness reforms.
PACCE seeks to support the implementation of Growth and Employment Strategy Paper (GESP) which strives to accelerate growth and reduce unemployment and the incidence of poverty. To that end, the proposed programme is aimed at: (i) strengthening the fiscal position of the State by streamlining public expenditure in order to create the fiscal space needed to finance priority investments; and (ii) creating favourable conditions for sustainable and inclusive growth by strengthening the governance and competitiveness of productive sectors through improvement of the efficiency and quality of road and energy infrastructure as well as the legal, regulatory and institutional framework.
The programme beneficiaries are the State of Cameroon, through the ministries and government services in charge of the economy and finance, agriculture and rural development, livestock and fisheries, public works and energy. Ultimately, the beneficiaries of the dividens of the economic growth accruing from sustainable job creation, particularly in the agro-pastoral sector, will be the citizens of Cameroon. The private sector, particularly SMEs, and especially those managed by women and youth in rural areas, are indirect PACCE beneficiaries. The programme measures dealing with the energy, transport and rural development sectors will enable the population to benefit, in the medium term, from greater access to electricity, better maintained roads, equitable access to public procurement and an environment that is conducive to the development of their activities.
African Development Bank
Structural Reforms Implementation Monitoring Committee
|Last Update||22 Nov 2020|
|Name||LUMBILA Kevin Numbi|