The International Monetary Fund (IMF) recently published a country report focused on Cameroon. The report indicates that the country “is already feeling a severe impact from the Covid-19 pandemic, which will slow economic growth in 2020.”
“GDP growth is projected to fall sharply to -1.2 percent or about 5 ppt below the pre-pandemic projection,” the report read. “The pandemic has led to a substantial deterioration in the global economic environment, reflecting a combination of global supply and demand shocks. On top of the big expected spillovers from the external shock to Cameroon, the country is facing a rapid increase in the number of infected persons,” it continues.
The IMF states that the pandemic is expected to lead to further disruptions to factors of production (both capital and labour) in the country, as well as a withdrawal of credit and economic losses resulting from deaths and the effects of negative confidence.
Furthermore, the institution adds, while an agreement on the restructuring of the debt owed by the National Refining Company (Sonara) -the country’s only refinery ravaged by a fire outbreak on May 31, 2019- to domestic banks (ed.note: close to XAF1,000 billion) has become more likely with the introduction of a new pricing structure, further delays would threaten the capital and liquidity position of banks.