
According to Cameroon’s economy minister, the country is attempting to increase export income in order to stave off a potential debt crisis and has reopened negotiations with the United States in order to rejoin Washington’s main trade effort with Africa.
African nations have been heavily impacted by the economic consequences of the COVID-19 pandemic and the ensuing global shocks brought on by the conflict in Ukraine, which has stunted economic growth and gotten their sovereign debt problems worse.
The Central African oil producer Cameroon is expected to see 4.3% economic growth this year after its growth declined to 0.5% in 2020, according to the International Monetary Fund (IMF). Although stating in its most recent appraisal of the country’s loan program that the debt might be sustainable with active fiscal reforms and management, the Fund has classed Cameroon as having a high risk of debt distress.
According to Alamine Ousmane Mey, the minister of economics, planning, and regional development of Cameroon, while he was giving a speech at a gathering put on by the Atlantic Council think tank in Washington during the IMF and World Bank’s Spring Meetings, “our debt service coverage from exports needs to be improved. That’s the reason why we are ranked in a high risk debt distress position”.
He continued saying, “we are working to be able to improve our exports through import substitution policies to reduce imports, produce more and export more. This will give us better room for debt service coverage”.
Moreover, Cameroon has reopened negotiations with the United States to resume participation in the Africa Growth and Opportunity Act (AGOA) program, which allows eligible African nations tariff-free access to the US market. In late 2019, Cameroon was removed from the program due to “persistent gross violations of internationally recognised human rights” by Cameroonian security forces, according to former President Donald Trump.
In the two English-speaking regions of the country with a majority Francophone population, secessionist militia factions have been engaged in combat with government forces since 2017. Thousands of people have died in the violence, and approximately 800,000 have been displaced.
Mey spoke of the discussions with U.S. authorities to rejoin AGOA and stated, “We’re working on all the issues that have been presented in a very transparent, open manner to be able to iron them out and solve the challenges”.