For a total of SDR 138 million, or roughly US$183.4 million, or 50% of quota, the International Monetary Fund (IMF) has approved an 18-month arrangement for Cameroon under the IMF Resilience and Sustainability Facility (RSF). Disbursements will begin after the arrangement’s First Review is finished.
Cameroon is extremely sensitive to climate change, with hazards from frequent droughts, floods, landslides, and coastline erosion, according to an IMF statement. In place of more costly funding, the RSF will assist Cameroon in its efforts to adapt to and lessen the effects of climate change.
The International Monetary Fund (IMF) claims that the fund would assist national efforts to enhance institutional frameworks for climate change governance and policy coordination, mainstream the climate agenda into public financial management, enhance national adaptation policies, and step up mitigation efforts.
The reform measures under the RSF are also expected to reinforce the growing engagement of development partners and other stakeholders in climate-resilient development and catalyze additional climate finance.
The RSF arrangement coincides with the remaining 18 months under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements approved in July 2021 and extended in December 2023 to support the country’s economic and financial reform program.
After the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, said, “Cameroon is a fragile and conflict-affected state facing substantial risks from climate change, including an imminent threat to livelihoods and potentially significant output losses, which could worsen food insecurity and conflicts and exacerbate poverty, inequality, and population displacements.
“The country’s regional diversity exposes it to a variety of climate-related events, including droughts, floods, and coastal erosion. If not appropriately addressed, climate change could delay human capital accumulation and jeopardize development and inclusive growth.
“Addressing the impact of climate change is an important priority in the country’s national development strategy. Cameroon is a signatory of the COP21 and other key international conventions on climate change and is committed to the sustainable management of natural resources and adaptation and mitigation policies.
“The identified reforms under the Resilience and Sustainability Facility (RSF) arrangement build on the authorities’ national strategies and plans and the diagnostics on climate change. Selloffs Provoke Spike in Nigerian Treasury Bills Yield
“The RSF reform package will help address key climate-related policy challenges, including creating an enabling environment for policy implementation, with appropriate institutional and public financial management frameworks; strengthening the national disaster risk management framework to step up adaptation efforts; and leveraging fiscal management in forestry as a climate mitigation policy.
“A resolute implementation of reforms under the RSF arrangement will help improve Cameroon’s medium-term climate policy stance, replace more expensive financing, and augment buffers against climate shocks and related prospective balance-of-payment needs.
“The arrangement should also help catalyze other climate financing. Capacity development efforts and close coordination among government entities and development partners involved in Cameroon’s climate agenda will be important.”
