(Business in Cameroon) - At a meeting with journalists in Yaoundé, the capital of Cameroon, July 23, 2014, Mahktar Diop, Vice-President of the World Bank for Africa, explained that, on June 30, the government decided to reduce oil fuel subsidies based on coherent macro-economic indicators and that the World Bank had in no way pressured the government to do so.

“It isn’t our place to tell the governments we work with what they must do. However, we are prepared to support Cameroon in the implementation of mechanisms to limit the effects fuel prices at the pump,” stated Mr Diop.

The senior World Bank official also revealed that he had discussed with President Paul Biya certain projects being implemented by the Cameroonian government with his institution’s support.

He also revisited the project involving the free distribution of school textbooks for some students, the health service improvement project using results-based financing and, lastly, the project to implement social safety nets for the protection of the most vulnerable.

However, he went on to state that the World Bank would remain at the disposal of the Cameroonian government to help improve trade facilitation, a programme for which the organisation has reserved 30 million USD (approximately 15 billion FCFA) to assist under-developed countries.

A visit to Lom Pangar

Faced with these many projects, Mahktar Diop was questioned about the viability of Cameroon’s indebtedness. In response to this he noted that even though indicators suggest some growth in that area, “there is no reason for panic as the debt to overall export ratio is still quite comfortable. We’re far from the levels we see in the most indebted countries,” he indicated.

Mr Diop completes his trip in Cameroon after starting the working visit on July 22. During his stay, the World Bank Vice-President spoke with members of the government, heads of the Central African States Bank and President Biya. He will also be visiting the dam construction project in Lom Pangar (centre of photo, World Bank Cpyright), in East Cameroon.

On wrinkle in an otherwise smooth trip is the postponement of the signing of some financing agreements to a later date. There has been no official explanation provided for the postponement, but according to sources, the decree authorising the relevant government officials to act had not yet been signed by the President.