Lagarde came, saw and went

The three-day visit to Cameroon of Christine Lagarde, Managing Director of the International Monetary Fund (IMF) remains a ground breaking event both for the country and the Central African Economic and Monetary Community (CEMAC).

The convergence of ideas between the guest and politico-economic authorities gave the visit the significance one could expect. Two major issues threaded through all the discussions organised both in Yaounde and the commercial capital of Douala: the economic slump that has affected countries of the CEMAC sub region as a result of drop in the prices of oil on the World market and rise in insecurity; and secondly, the mechanism to adopt in order to come out of the situation.

Lagarde’s presence in Cameroon opened up floodgates of frank talk which appeared to be the best approach to get out of the present economic mess staring CEMAC. It was really a busy time for the IMF boss which enabled her to have discussions with the Prime Minister, Head of Government, Ministers of Finance of the CEMAC sub region,  Governor of the Bank of Central African States (BEAC), CEMAC President and above all with the President of the Republic, Paul Biya. All these happened in Yaounde; but the visit continued to Douala where she met with representatives of the private sector as well as those of the civil society and women leaders.

 As stated by Christine Lagarde herself during the press conference that marked the end of the first phase of her visit,the meeting with the Head of State and Cameroonian authorities which focused on national priorities was “very constructive and enriching.” It was occasion for her to congratulate Cameroonian authorities of the resilience of the Cameroonian economy in the face of the delicate economic situation. “With a real growth rate of nearly 6 percent in 2014 and 2015 and weak inflation, the country is taking necessary  measures to ensure macroeconomic stability and promote strong and inclusive growth”, she said.

 Shocks and Pathways

In spite of all the efforts deployed, the impact of the double shocks from the persistent drop in oil prices and insecurity in the Far North Region continue to weigh heavily on the country’s perspectives. The solution to this state of affairs as seen by the IMF boss all through her discourse is through reinforced regional integration, infrastructure development and good business climate. While appreciating the advanced state of the Kribi Deep Seaport and the Lom Pangar Hydroelectric reservoir, she advised that Cameroon chooses projects that have added value and execute them right to the end rather than embrace several projects that end up not seeing the light of day.

As far as the business climate is concerned, she advised that there should be what she describes as shift of attitude and approach towards those that are friendly to investment. The visit was equally occasion for President Paul Biya to express his satisfaction and appreciation of the IMF that has always stood by his country in times of difficulties.

One of the worries of the guest of honour is the overdependence on oil as a resource which may further stifle growth within CEMAC countries. For now, the best way out is to diversify revenue sources by concentrating on non oil sector, she told CEMAC Ministers of Finance, stating inter alia that in order to improve on the domestic resources mobilization; CEMAC countries should reduce widespread use of discretionary tax and customs exemptions and improve intergovernmental cooperation and coordination of tax policies.

The last phase of her visit gave her the occasion to listen to problems affecting the private sector in Cameroon. In one of the meetings with representatives of the private sector in Douala, business climate occupied central stage among the issues discussed. She equally had discussions with women leaders and politicians. In all, it was a successful visit, but its real success can only be felt if all that was discussed is put into concrete implementation.