Cameroon - Competitiveness and Economic Growth Support Programme (PACCE)

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.