Cameroon: IMF Greenlights $183.4 Million Funding to Boost Cameroon’s Climate Resilience

The International Monetary Fund (IMF) has granted approval for an 18-month arrangement to provide Cameroon with financial assistance under the IMF Resilience and Sustainability Facility (RSF). The total amount extended is SDR 138 million, equivalent to approximately US$183.4 million, constituting 50% of Cameroon’s quota. Disbursements from this facility are scheduled to commence upon the completion of the First Review of the arrangement.

In an official statement, the IMF underscored Cameroon’s heightened vulnerability to climate change, citing recurring challenges such as droughts, floods, landslides, and coastal erosion. The RSF is designed to bolster Cameroon’s capacity to adapt to and mitigate the impact of climate change while facilitating the substitution of costlier financing.

The fund is poised to contribute significantly to addressing climate vulnerabilities by supporting the government’s initiatives to fortify institutional frameworks for governance and policy coordination related to climate change. It aims to integrate climate considerations into public financial management, enhance national adaptation policies, and intensify efforts in climate mitigation.

The RSF’s reform measures are anticipated to strengthen collaboration among development partners and stakeholders, fostering climate-resilient development, and mobilizing additional climate finance.

This financial arrangement aligns with the remaining 18 months under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements, initially sanctioned in July 2021 and extended in December 2023. These arrangements were established to support Cameroon’s economic and financial reform program.

Following the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director, and Acting Chair, remarked, “Cameroon, as a fragile and conflict-affected state, faces substantial risks from climate change. The country’s commitment to addressing climate change aligns with its national development strategy and international conventions.”

“The identified reforms under the RSF arrangement align with national strategies, focusing on creating an enabling environment for policy implementation, strengthening disaster risk management, and leveraging fiscal management for climate mitigation policies. Successful implementation will improve Cameroon’s medium-term climate policy stance, replace expensive financing, and enhance resilience against climate shocks.”

“The arrangement is expected to catalyze additional climate financing, with capacity development efforts and close coordination among government entities and development partners playing a crucial role in Cameroon’s climate agenda.”