IFC whose scope of action was based in particular on supporting the financial sector is favorable for strengthening and diversifying its activities in Cameroon, to assist this country to the path of economic emergence

IFC whose scope of action was based in particular on supporting the financial sector is favorable for strengthening and diversifying its activities in Cameroon, to assist this country to the path of economic emergence

The ambition of the Cameroonian authorities to make Cameroon an emerging country by 2035 passes inevitably by the realization of structuring investment projects. This is a goal which can't be achieved at this stage without the support of development partners, bilateral or multilateral, among which the donors like the international monetary institutions of Bretton Woods. In this regard, the World Bank is part of the international financial institutions who agreed to accompany Cameroon on the path of its economic emergence.

Currently, Cameroon accounts only 5% of the annual investment of IFC in Africa, meaning 150 million dollars. These figures are well below the economic potential of Cameroon as both sides declare.

From 5% to 10% of African investments
The International Finance Corporation (IFC), including a delegation led by Vice President for Sub-Saharan Africa, Latin America and the Caribbean and Western Europe, Thierry Tanoh, visited Cameroon during February, and reiterated the availability of this financial institution belonging to the World Bank group, whose responsibilities include operations with the private sector, to increase its participation in financing a number of development projects.
After discussions with the Cameroon government and the business community, namely the inter Employers Group of Cameroon (GICAM), the mission of the IFC has agreed to the need not only to strengthen its presence, which was simply a virtual support around the financial sector, but also to diversify it by putting a point on developmental projects which are vital for strong growth and sound economic development.
This is a goal which can only be achieved by relying on a dynamic and effective economic policy. Currently, Cameroon accounts for only 5% of the annual investment of IFC in Africa, meaning 150 million dollars (75 billion FCFA). These figures are well below the economic potential of Cameroon as it is said from both sides. Experts from the IFC consider that these investments should reach more than 10% of its current volume, accounting around 150 billion FCFA per year. The cumulative commitments of IFC, at 31st of December 2010 reached 237 billion FCFA only, while there are reliable indications that expect about 500 billion FCFA. Based on relevant aspects, IFC estimates that over the financial sector, which has always been its area of operation in Cameroon, it is necessary to strengthen and expand this partnership by providing considerable support in the growth sectors, like the oil, industry, energy and infrastructure. A diversification of fields of intervention that meets the new economic vision of the country ensures the Cameroonian government.

 Thierry Tanoh wants to increase the participation of IFC in financing development projects in Cameroon.

Doing Business Rankings
On the basis of certain indicators, IFC has defined its intervention on three main areas, among others, proactive direct investments, support to SME, and the involvement of the financial institution to improve the general business environment in Cameroon. "What will be the most important for the private sector in the future are both the development of the infrastructure and an expansion of the business environment that is more conducive to private sector development. We'll have to work with the banking sector so that are found specific instruments that, at a time, allow it to have long term resources and, therefore, to lend the economic sector and its operators in Cameroon, in order to play an engine role for the economy. I think there is also some work to do to help improve the judicial system, which gives much more comfort to the private sector and provides more capacity to the banking sector to lend to small and medium enterprises. It is important that there is a responsible private sector, which has a vision to support Cameroon's development efforts. And the same also with the good governance standards, which must affect the rest of the economy," says Thierry Tanoh.

The latest ranking of Doing Business, which ranks Cameroon as 168th country out of 183 countries, calls for improving the general business environment. The government has taken action through Cameroon business forum. It comes to conduct these reforms forward, to ensure the effectiveness of the work. In the short term, some projects will receive financial assistance from the IFC, such as those projects for modernizing and securing the Douala International Airport, construction of a gas plant at Kribi, the construction of hotel infrastructures and construction of communications and energy infrastructures.

Achille Mbog Pibasso, Douala