IMF Executive Board Greenlights US$183.4 Million under Resilience and Sustainability Facility for Cameroon

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The Executive Board of the International Monetary Fund (IMF) sanctioned an 18-month arrangement for Cameroon under the IMF Resilience and Sustainability Facility (RSF), totaling SDR 138 million (approximately US$183.4 million, equivalent to 50 percent of the quota). Disbursements will commence upon the completion of the First Review of the arrangement.

Cameroon faces significant vulnerabilities to climate change, including recurrent droughts, floods, landslides, and coastal erosion. The RSF aims to aid Cameroon in adapting to and mitigating the impact of climate change while replacing costlier financing options. It will bolster the country’s institutional framework for climate governance and policy coordination, integrate climate considerations into public financial management, enhance national adaptation policies, and intensify mitigation efforts. The reforms outlined in the RSF are expected to bolster collaboration among development partners and stakeholders in promoting climate-resilient development and mobilizing additional climate finance.

This RSF arrangement coincides with the remaining 18 months of the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) agreements endorsed in July 2021 and extended in December 2023 to support Cameroon’s economic and financial reform agenda.

Following the Executive Board’s deliberation, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, issued the following statement:

“Cameroon, as a fragile and conflict-affected state, confronts significant risks from climate change, including threats to livelihoods and potential output declines that may exacerbate food insecurity, conflicts, poverty, inequality, and population displacement. The country’s diverse regional landscape exposes it to various climate-related events, such as droughts, floods, and coastal erosion. Unaddressed, climate change could impede human capital development and jeopardize inclusive growth and development.

“Mitigating the impact of climate change is a paramount objective in Cameroon’s national development strategy. The country is a signatory to COP21 and other key international climate change conventions, demonstrating its commitment to sustainable natural resource management, adaptation, and mitigation policies.

“The identified reforms under the Resilience and Sustainability Facility (RSF) arrangement align with national strategies, climate diagnostics, and international climate agreements. The RSF reform package aims to tackle critical climate-related policy challenges, including enhancing the policy implementation environment through robust institutional and financial management frameworks, strengthening national disaster risk management for enhanced adaptation efforts, and utilizing fiscal management in forestry as a climate mitigation strategy.

“Vigorous implementation of reforms under the RSF arrangement will bolster Cameroon’s medium-term climate policy stance, replace costly financing, and enhance resilience against climate shocks and future balance-of-payment needs. Moreover, the arrangement is expected to mobilize additional climate financing. Capacity-building efforts and close coordination among government entities and development partners engaged in Cameroon’s climate agenda will be vital.”