BEAC Projects 5.9 Per cent Growth In 2014

By Godlove BAINKONG, Cameroon Tribune, 30-07-2014 

The Financial and Monetary Policy Committee met on July 11, 2014, under the Minister of Finance.

Cameroon’s Financial and Monetary Policy Committee of the Bank of Central African States (BEAC) says looking at economic performance within and without the country, Cameroon could reach a 5.9 per cent growth rate by the end of 2014.

This would be an increase from the earlier 5.4 per cent projection at the beginning of the year.

According to a news release that sanctioned a July 11, 2014 session of the National Financial and Monetary Policy Committee of BEAC that held in Yaounde under the chairmanship of Finance Minister, Alamine Ousmane Mey, the envisaged brighter skies stem from improved performance of projects contained in this year’s public investment budget as well as progress in the export of crude oil. Inflation, the release notes, will remain under control at below 3 per cent thanks to limited hike in the prices of basic goods, the recent hike in fuel prices notwithstanding.

The Cameroon’s projected growth rate, if attained, would however be below that of the Central African sub region estimated at 6.1 per cent for 2014. According to the release, the CEMAC sub region has witnessed an increased production of petroleum products and non-petroleum sectors are also bouncing back, all contributory factors to a favourable economic performance. But consolidating regional integration, improving the business climate as well as reinforcing the regulatory instruments and control of the banking sector, likewise access to financial services, remain indispensable factors for a sustainable growth rate in the sub region.

The committee observed that Cameroon’s economy has favourable growth prospects although potentials remain largely untapped owing to inertia and administrative bottlenecks. Members recommended an intensified fight against corruption with the use of new tools, notably electronic. The least of the actions to be undertaken would not be eradicating economic destroyers like counterfeiting and contraband which remain permanent threats to the existence of certain sectors of the economy.

The committee observed that there is an absolute need to beef up investments in energy generation for the country to attain a 9.5 per cent growth rate from 2018. This would mean pumping in money to move the country’s energy production capacity to three million kilowatts. Members, the release further notes, decided on the creation of a multi-dimensional committee within the National Financial and Monetary Policy Committee to analyse the impact of recent measures to readjust prices of fuel at filling stations and the review of salaries of State functionaries up by 5 per cent.