African Development Bank Urges Cameroon to Strengthen Capital Mobilisation for Sustainable Growth

By Bheki Dlamini

Yaoundé, Cameroon — The African Development Bank (AfDB) officially launched its 2025 Country Report on Cameroon on July 22, 2025, highlighting both promising signs of economic recovery and the urgent need for strengthened capital mobilisation to sustain inclusive growth.

The launch, held in Cameroon’s capital, brought together government officials, private sector representatives, and development partners to discuss the report’s candid assessment and recommendations for the country’s economic transformation.

The report notes that Cameroon’s economy grew by an estimated 3.6% in 2024, driven principally by continued investment in infrastructure and robust expansion in manufacturing industries, particularly in sectors refining local agricultural and textile products.

This growth momentum reflects Cameroon’s ongoing efforts to modernise its economy and diversify beyond traditional exports.

Key Challenges and Priorities

Despite positive trends, the AfDB report underscores several critical obstacles that could hinder Cameroon’s developmental aspirations unless addressed decisively:

Domestic Resource Mobilisation: Cameroon needs to enhance its capacity to raise and manage domestic finances efficiently. This includes reducing widespread tax exemptions that erode revenue potential and accelerating the digitalisation of tax and public financial management systems.
Public Corporation Reform: The report highlights the restructuring of strategic state-owned enterprises, particularly in the energy and refining sectors, as vital to boosting productivity and fiscal sustainability. Greater transparency, accountability, and the mandatory publication of financial statements for public corporations are also emphasised.
National Integrated Financing Strategy (SNFI): The adoption and implementation of the SNFI is critical to diversify funding sources, tapping into new avenues like carbon markets to complement traditional financing.
Governance and Rule of Law: Strengthening institutions to improve governance, the rule of law, and combat corruption remain a fundamental pillar for attracting investment and enabling efficient resource use.
Macroeconomic Stability: Gradually reducing fuel price subsidies to maintain fiscal balance is advised, but coupled with efforts to protect vulnerable populations by prioritising concessionary financing and targeted support.
Regional Infrastructure and Commodity Processing: Developing regional transport and energy infrastructure andpromoting local processing of commodities are identified as key drivers for value addition and regional integration.
Addressing Insecurity: Accelerating development in insecure and conflict-affected areas is critical to reducevulnerabilities and promote inclusive growth.

Expert Insights

AfDB economists Ameth Saloum Ndiaye and Godwill Kan Tange presented detailed analytical findings focusing on optimising Cameroon’s use of budgetary resources, as well as leveraging its natural, human, and financial capital to foster more inclusive and resilient growth pathways.

The launch, held in Cameroon’s capital, brought together government officials, private sector representatives, and development partners to discuss the report’s candid assessment and recommendations for the country’s economic transformation.

The report also analysed challenges in industrial development, vocational training, and sovereign debt management, including Cameroon’s standing in debt ratings compared to other African economies.

IV ZEAL VITAMIN

Government Response and Alignment

Representing the Cameroonian government, Jean Tchoffo, Secretary General of the Ministry of Economy, Planning and Regional Development, welcomed the report’s recommendations, emphasising their alignment with the country’s National Development Strategy 2020-2030 (SND30).

He remarked: “This report comes at a key moment during our mid-term review, and we are convinced its proposals will strengthen efforts to accelerate our structural transformation and return to sustainable and inclusive economic growth.”

Speaking on behalf of the Bank’s Director General for Central Africa, Mamadou Tangara, Head of Operations, recognised Cameroon’s commitment to reform, noting that the adoption of the SNFI should help diversify financing sources vital for the country’s development agenda.

The Bank reiterated its intention to support Cameroon with technical and financial resources aligned with the report’s priorities.

The 2025 Country Report on Cameroon sends a clear message: continued recovery is possible but hinges on the effective mobilisation of capital, financial, human, and natural resources and the strengthening of governance frameworks.

Key strategic actions such as reforming state enterprises, promoting digital finance solutions, improving tax policy, and investing in regional infrastructure could unleash substantial growth and reduce poverty.

As Cameroon navigates evolving global economic dynamics and local socio-political challenges, the synergy among government, private sector, civil society, and development partners will be critical to turn potential into tangible progress.