Cameroon’s economy minister said on Monday that the nation has begun talks with the United States to rejoin Washington’s primary trade initiative with Africa in order to avoid a financial disaster.
The economic ramifications of the COVID-19 outbreak. As well as the subsequent global shocks caused by the crisis in Ukraine, have significantly harmed African countries. Limiting economic growth and increasing their sovereign debt positions.
According to the International Monetary Fund, Cameroon is a significant oil producer in Central Africa. It is predicted to recover to 0.5% GDP growth in 2021. (IMF).
Notwithstanding the Fund’s designation of Cameroon as having a high risk of financial distress. The Fund indicated in its most recent appraisal of the country’s loan program that the country’s debt may be sustainable with the support of vigorous fiscal reforms and management.
“Our export profits must increase in order to cover our debt obligations. That is why we are in a debt category with a high risk of default “Cameroonian government official Alamine Ousmane Mey commented on the situation.
He spoke at an Atlantic Council think tank event on the eve of the IMF and World Bank Spring Meetings in Washington.
“We seek to expand local production and exports by implementing import substitution policies. This will provide us greater breathing room to satisfy our financial obligations.” He had something to say.
Cameroon has begun talks with the US in an attempt to re-enter the Africa Growth and Opportunity Act (AGOA) program. It grants qualifying African countries tariff-free access to the US market.
Former President Donald Trump pulled Cameroon from the program in late 2019. For alleged “continued gross violations of internationally recognized human rights” by the country’s security services.
Separatist militias have been at odds with government forces in the two English-speaking parts of the mostly Francophone country since 2017. The fighting has killed hundreds of people and displaced around 800,000 others.
“All of the obstacles that have been raised. We’re working on in a very transparent open manner to be able to iron them out and address the challenges. Mey continued, referring to AGOA conversations with US officials.
