(Business in Cameroon) - In January 2022, Cameroon will begin to experiment with a new accounting reform called accruals-based accounting and budgeting in the framework of Phase 2 of the Financial Governance Support Project (PAGFI2) backed by the French Development Agency (AFD). 

According to the General Budget Directorate (DGB), which provided this information, the said accounting and budgeting system aims to improve the predictive management of expenditure as well as the state budget and accounting information. 

 "Its objective is, among other things, to support the elaboration of actions that will help boost the liquidity of the single treasury account [housed at the Central Bank] by improving its operation. The reform is also aimed at elaborating an accounting system based on accruals accounting while taking into account the financial situation," the DGB explains.

According to the same source, this "major" reform, introduced by the 2007 State financial regime was reinforced by the 2018 regime. It will improve the public management information provided to citizens by enhancing transparency requirements in the management of public accounts and the accountability of managers of those accounts.

It will lead to “more accurate information on the state’s solvency, its assets and the costs of public services. That way, public decision-makers will base their decisions on reliable and detailed information, therefore, guaranteeing effective control over their choices.” 

The PAGFI implementation agreement was signed on May 29, 2019, in Yaoundé, by Minister of Economy Alamine Ousmane Mey and former French ambassador to Cameroon  Gilles Thibaut. Estimated at XAF2.6 billion, the PAGFI was signed by public authorities to gain control and master budget execution, which is sometimes inconsistent under the current accounting system. Their ultimate goal through the project is to optimize and streamline budget regulation and cash management to prevent the accumulation of payment arrears. 

S.A.