(Business in Cameroon) - Public investment in Cameroon was sluggish in the first quarter of 2019. According to the information note on the operation to mobilize XAF150 billion on the Beac market, which the government has just closed, investments made with public funding fell by 76.5% over the first three months of the year.

“Capital expenditure amounted to XAF78 billion at the end of March 2019, compared with XAF332.4 billion at the end of March 2018, down XAF254.4 billion (-76.5%). Compared to the initial forecasts of XAF337.4 billion, expenditures are down XAF259.3 billion, or an implementation rate of 23.1%,” indicated the document.

This drastic decrease is explained by the sharp decline in investments made both on equity and on external financing. “Investment expenditure on equity reached XAF41.2 billion at the end of March 2019, decreasing by XAF101.2 billion (-71.1%) year-on-year. Compared to the forecast of XAF204.4 billion, this expenditure is down XAF163.2 billion, representing an implementation rate of 20.2%.”

“Investment expenditure on external financing stood at XAF32 billion at the end of March 2019, down XAF151 billion. Compared to the XAF123 billion forecast for the first quarter of 2019, implementation rate is 26%. Restructuring expenses amounted to XAF4.8 billion, compared with XAF7 in Q1 2018, and down XAF5.2 billion compared to the XAF10 billion forecasted. This makes an implementation rate of 48%.”

Moreover, these investments are expected to improve as from the second half of 2019, thanks in particular to the increase in external financing disbursements. The budget decided on 29 May 2019 by the Head of State reveals a significant increase in the sum earmarked for investment expenditure on external financing (+XAF158 billion).

Brice R. Mbodiam