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AFRICAN DEVELOPMENT BANK

CAMEROON: JOINT 2015-2020 COUNTRY STRATEGY PAPER

AND COUNTRY PORTFOLIO PERFORMANCE REVIEW REPORT

CSP Preparation Team

Ms. Marlène KANGA

Regional Director

ORCE

Mr Racine KANE Resident Representative CMFO

Richard A. DOFFONSOU

Ali CISSE

Denis TANKOUA

Christiane BOLLO-TEMA

Moctar HASSANE

Cathy DJEUFO

Alain EKPO

Joseph N’GUESSAN KOUASSI

Samuel MBA

Ebouemé BOUNTSEBE

Jean-Baptiste NGUEMA-OLLO

Albert NYAGA

Judes BISSAKONOU

Sékou KEITA

Samatar OMAR ELMI

Amadou DIOP

Christine DOVONOU

Uloma U. NWAMARAH

Yogesh VYAS

José Didier YAOVI TONATO

Gérard BIZIMANA

Philippe NGWALA

Principal Country Economist (Team Leader)

Principal Country Programme Officer

Senior Macro-economist

Private Sector Specialist

Chief Procurement Officer

Procurement Officer

Principal Macro-economist

Chief Transport Engineer

Senior Transport Infrastructure Specialist

Senior Water and Sanitation Specialist

Principal Electrical Engineer

Senior Rural Development Specialist

Senior Social Development Specialist

Regional Financial Management Coordinator

Senior ICT Specialist

Principal Environmental Specialist

Operations Officer

Climate Change Specialist

Climate Change Specialist

Chief Urban Development Officer

Principal Economist

Senior Social Protection Officer

ORCE/CMFO

CMFO

CMFO

OPSM/CMFO

ORPF.1

ORPF/CMFO

OSGE

OITC

OITC/CMFO

OWAS/CMFO

ONEC

OSAN/CMFO

OSHD/CMFO

ORPF.2

OITC

OSAN

CBFF

ONEC.3

ONEC.3

OITC.0

ORFS.2

ORFS.1

Peer Reviewers

1. Toussaint HOUENINVO

2. Carpophore NTAGUNGIRA

3. Olivier Joseph BRETECHE

4. Abdoulaye TANDINA

5. Koudeidiatou ISSABRE-SOW

6. Hammadoun Amadou DIALL

Principal Country Economist

Principal Country Economist

Principal Country Programme Officer

Infrastructure Expert

Principal Governance Officer

Investment Officer

ORWA/SNFO

ORWA/TGFO

ORNA/MAFO

OITC/MLFO

OSGE

OPSM/MLFO

REGIONAL DEPARTMENT CENTER (ORCE)

CAMEROON FIELD OFFICE (CMFO)

June 2015

Translated Document

AFRICAN DEVELOPMENT BANK GROUP

CAMEROON

JOINT 2015-2020 COUNTRY STRATEGY PAPER AND COUNTRY PORTFOLIO PERFORMANCE REVIEW (CPPR) REPORT

ORCE/CMFO DEPARTMENT

June 2015

TABLE OF CONTENTS

INDICATIVE 2015-2020 CSP PREPARATION SCHEDULE........................................................ i

ACRONYMS AND ABBREVIATIONS ......................................................................................... iii

EXECUTIVE SUMMARY ................................................................................................................ v

I. INTRODUCTION ................................................................................................................. 1

II. COUNTRY CONTEXT AND PROSPECTS ......................................................................... 1

2.1 POLITICAL, SECURITY, ECONOMIC AND SOCIAL CONTEXT, AND FRAGILITY FACTORS ...................... 1

2.2 COUNTRY STRATEGIC OPTIONS. .................................................................................................................... 6

2.3 AID COORDINATION AND AFDB POSITIONING ...................................................................... 8

III. COUNTRY PORTFOLIO REVIEW AND KEY LESSONS LEARNED .............................. 9

3.1 OVERVIEW AND PERFORMANCE OF BANK PORTFOLIO IN CAMEROON ................................................ 9

3.2 KEY LESSONS LEARNED FROM PORTFOLIO REVIEW ................................................................................ 11

IV. KEY LESSONS LEARNED FROM 2010-2014 STRATEGY ................................................ 12

4.1 IMPLEMENTATION OF 2010-2014 CSP AND OUTCOMES ......................................................................... 12

4.2 KEY LESSONS FOR 2015-2020 CSP ............................................................................................................... 13

V. BANK’S 2015-2020 STRATEGY IN CAMEROON ............................................................... 13

5.2 OUTCOMES AND TARGETS ............................................................................................................................ 16

5.3 CSP IMPLEMENTATION INSTRUMENTS ....................................................................................................... 18

5.4 MONITORING AND EVALUATION ................................................................................................................ 18

5.5 DIALOGUE ISSUES ........................................................................................................................................... 18

5.6 RISKS AND MITIGATION MEASURES............................................................................................................. 19

VI. CONCLUSION AND RECOMMENDATION ................................................................... 19

6.1 CONCLUSION.................................................................................................................................................... 19

6.2 RECOMMENDATION ....................................................................................................................................... 19

The following conventions are used in this 2015-2020 Country Strategy Paper (CSP):

In the tables, a blank indicates that the corresponding heading is, in this case, “not applicable”, (…) indicates

that the data is not available, 0 or 0.0 indicates that the figure is equal to zero or negligible. Given that the

figures have sometimes been rounded, the totals may not exactly correspond to the sum of the components.

A hyphen “-“ between two years or months (for example 2013-2014 or March-September) indicates the

period covered, from the first to the last year or from the first to the last month inclusively; the sign “/”

between two years (for example 2012/2013) indicates a fiscal (or financial) year.

Amounts are expressed in CFAF (XAF), unless otherwise indicated. Where reference is made to the dollar, it

should be understood to mean the US dollar.

The expression “agro-pastoral growth sectors” refers to the priority sectors defined in Cameroon’s National

Agricultural Investment Plan (PNIA).

LIST OF ANNEXES

Annex 1: Key Macro-economic Indicators ................................................................................................... I Annex 2: Comparative Socio-economic Indicators ................................................................................... II Annex 3: Progress Towards Achieving the MDGs ................................................................................... III Annex 4: Bank Projects Portfolio in Cameroon as at 30 April 2015 ..................................................... IV Annex 5: 2014-2015 Portfolio Performance Improvement Plan ............................................................ VI Annex 6: Indicative Lending Programme over the Period 2015-2020 .............................................. VIII Annex 7: Bank’s Fiduciary Strategy in Cameroon ..................................................................................... X Annex 8: Environment-, Climate Change- and Green Growth-related Issues .................................. XV Annex 9: Development Partners’ Areas of Intervention in Cameroon in 2014 .............................. XVII Annex 10: 2015-2020 CSP Indicative Results-based Framework ...................................................... XVIII Annex 11: 2015-2020 CSP Participatory Preparation Process ........................................................... XXIV

LIST OF TABLES Table 1: Mo Ibrahim Governance Index .................................................................................................... 4 Graph 1: Political Context, 2012 .................................................................................................................... 1 Graph 2: Real GDP Growth Rate (%) .......................................................................................................... 2 Graph 3: Current Account Balance (% of GDP) ........................................................................................ 3 Graph 4: Infrastructure Index ........................................................................................................................ 7

Box 1: Cooperation Between the Bank and Cameroon ............................................................ 8 Box 2: IDEV Recommendations Taken into Account by CMFO .................................................. ..10

i

FISCAL YEAR

1 January – 31 December

CURRENCY EQUIVALENTS

(June 2015)

UA 1

EUR USD CFAF (XAF)

1.26755 1.3905 831.4583

2015-2020 CSP INDICATIVE PREPARATION SCHEDULE

Major 2015-2020 CSP Preparation Stages Date

Concept Note Review by CMFO 22 April 2014

Concept Note Review by Peer Reviewers 13 May 2014

Concept Note Review by the Cameroon Country Team 13 June 2014

CSP Preparation Mission to Cameroon 4 to18 July 2014

Review of Draft Report on the CSP by Peer Reviewers 3 October 2014

Review of Draft Report on the CSP by the Cameroon Country Team 14 November 2014

Consideration of the Outline of CSP Pillars by CODE 11 May 2015

Submission of Draft Report on the CSP to the Vice-President, ORVP 5 June 2015

Consideration of the CSP by OPSCOM 11 June 2015

Translation of the CSP into English 17 June 2015

Posting of Draft Report on the CSP on the Bank’s Intranet 19 June 2015

Forwarding of the CSP to the Board Secretariat 19 June 2015

Dialogue Mission to Cameroon 2 July 2015

Consideration by the Boards of Directors 10 July 2015

ii

Map of Cameroon

http://upload.wikimedia.org/wikipedia/commons/b/be/Cameroon_Map.jpg

iii

ACRONYMS AND ABBREVIATIONS

ADF African Development Fund

AfDB African Development Bank

AGTF Africa Growing Together Fund

VPA/FLEGT Voluntary Partnership Agreement Under the European Union FLEGT Initiative

AWF African Water Facility

BTP Building and Public Works

CAADP Comprehensive Africa Agriculture Development Programme

CAB Central African Backbone

CAMTEL Cameroon Telecommunications Corporation

CAR Central African Republic

CBFF Congo Basin Forest Fund

CDM Clean Development Mechanism

CEMAC Economic and Monetary Community of Central African States

CFAF Franc of the African Financial Community

CMFO Bank’s Field Office in Cameroon

CODE Committee on Operations and Development Effectiveness

CPDM Cameroon People’s Democratic Movement

CPIA Country Policy and Institutional Assessment

CPPR Country Portfolio Performance Review

DB Doing Business

DIR Regional Integration Department in MINEPAT

ECCAS Economic Community of Central African States

ECOWAS Economic Community of West African States

EIG Eastern Interconnected Grid

EITI Extractive Industries Transparency Initiative

EU European Union

FDI Foreign Direct Investment

GDP Gross Domestic Product

GESP Growth and Employment Strategy Paper 2010-2020

HIPC Heavily Indebted Poor Country

ICT Information and Communication Technology

IDEV Independent Development Evaluation

IGA Income-generating Activity

IMF International Monetary Fund

LRFE Law on the Financial Regime of the State

LSF Legal Support Facility

MDC Multi-donor Committee

MDG Millennium Development Goal

MINEPAT Ministry of Economy, Planning and Regional Development

MINEPDED Ministry of Environment, Nature Protection and Sustainable Development

MPC Multi-partner Committee

MTEF Medium-Term Expenditure Framework

LCB Local Competitive Bidding

NCCAP National Climate Change Adaptation Plan

NEMAP National Environment Management Plan

NIG Northern Interconnected Grid

iv

NTF Nigeria Trust Fund

ODA Official Development Assistance

OITC Bank’s Transport and Information and Communication Technology Department

ONACC National Climate Change Observatory

ONEC Bank’s Energy, Environment and Climate Change Department

OPSM Bank’s Private Sector Department

ORPF Bank’s Procurement and Fiduciary Services Department

OSAN Bank’s Agriculture and Agro-Industry Department

OSGE Bank’s Governance and Financial Management Department

OWAS Bank’s Water and Sanitation Department

PADY Yaoundé Sanitation Project

PAMOCCA Land Registration System Modernization Support Project

PARETFOP Technical Education and Vocational Training Reform Support Project

PARG Governance Reform Support Programme

PEXULAB Extreme Emergency Anti-poaching Plan

PFPF Public Finance Partnership Framework

PFSC Public Finance Sector Committee

PIB Public Investment Budget

PIU Project Implementation Unit

PMO Portfolio Management Officer

PNIA Cameroon National Agricultural Investment Plan

PPP Public-Private Partnership

PREREDT Electricity Grid Upgrading and Extension Project

R-DWSSP Rural Drinking Water Supply and Sanitation Project

REC Regional Economic Community

REDD+ Reducing Emissions from Deforestation and Forest Degradation

REG Republic of Equatorial Guinea

RGAE General Agriculture and Livestock Census

RISP Regional Integration Strategy Paper in Central Africa

RPP Readiness Preparation Proposal

RWSSI Rural Water Supply and Sanitation Initiative

SCAC Cooperation and Cultural Action Service of the French Embassy

SIG Southern Interconnected Grid

SME/SMI Small- and Medium-size Enterprise/Small- and Medium-size Industry

SU-DWSSP Semi-urban Drinking Water Supply and Sanitation Project

SYDONIA Computerized Customs System

TFP Technical and Financial Partner

UA Unit of Account

UAM Million Unit of Account

UNDP United Nations Development Programme

USD United States Dollar

v

EXECUTIVE SUMMARY

1. Introduction. This document proposes a new Bank Group strategy for Cameroon covering the period 2015-2020, together with the country portfolio performance review (CPPR). It was prepared using a broad-based participatory process and the new approach adopted for preparing CSPs, including prior consultation with CODE. The joint CSP 2010-141 completion and CPPR report, as well as the IDEV post-evaluation covering the period 2004-2013 provided very useful lessons and guided the preparation of the CSP 2015-2020, whose outline was examined by CODE on 11 May 2015 and

deemed appropriate. CODE members commended its selectiveness and the strategic options proposed, the interdependence of the pillars and the programmatic approach proposed for Bank operations. However, in preparing the new strategy, they requested the team to lay greater emphasis on green growth and gender issues, as well as the analysis of pockets of fragility and the business climate.

2. Country context: Cameroon continues to enjoy relative stability, despite a regional political, security and humanitarian crisis context. The country is not a fragile State, but border crises in the northern regions (North and Far North) and in the East have led to pockets of fragility which may, in the long run, pose risks to social cohesion. These risks are also likely to lead to the crowding out of priority spending by security and defence spending. In such a context, growth, which has progressed since 2008 despite a sluggish world economy, must be consolidated, made stronger, sustainable and, above all, inclusive. To that end, the process of diversifying economic growth sources must be strengthened by developing the value chains of the agro-sylvo-pastoral sectors.

3. Moreover, the recent context marked by the raising of Cameroon to "Blend Country" status (enabling it to benefit from the non-concessional and concessional windows of the Bank Group and the World Bank), the exploitation of mineral and oil resources on a larger scale and the 40% cut, in 2014, in fuel subsidies which had reached CFAF 450 billion (or 3.3% of GDP and 19.5% of current expenditure), offer the opportunity to: (i) significantly mitigate the impact of plunging crude oil prices since the second half of 2014; and (ii) continue financing the acceleration of economic growth that could be driven by infrastructure structuring investments and processed agricultural product export. To this end, the country has assets and opportunities, especially an agro-sylvo-pastoral and fisheries sector that could undergo significant development through local processing opportunities, as well as a hydro-electric and gas-fired thermal power generation potential.

4. The Bank’s portfolio in Cameroon at end-May 2015 comprised 19 operations (11 national operations, 4 regional operations and 4 private sector operations) totalling approximately UA 608.8 million, with a 46.07% overall disbursement rate, for an average age of 4 years and 5.8% of projects at risk. The overall Bank portfolio performance in Cameroon is deemed satisfactory with a 2.36 average rating on a scale of 3 (against 2.30 in 2013, 2.15 in 2012 and 2.06 in 2011). The portfolio has maintained its improvement trend thanks to stepped up portfolio monitoring by the Bank and the Government, and the implementation of joint actions contained in the Portfolio Performance Improvement Plan (PPIP 2013-14). However, the portfolio is facing difficulties for which the Bank plans to implement a Portfolio Performance Improvement Plan (PPIP 2014-15) that is expected to further enhance operations implementation and performance.

5. Country strategy over the period 2015-2020: to enable Cameroon to make use of its opportunities and meet its challenges while remaining selective, the Bank’s strategy will hinge on two pillars: (i) Strengthen Infrastructure for Inclusive and Sustainable Growth; and (ii) Build Sector Governance for Effective and Sustainable Investments.

1 Cameroon’s 2010-2014 Country Strategy Paper (CSP) was approved by the Boards of Directors in October 2009. The Bank’s strategy, which is aligned with the Government’s national priorities

outlined in the Growth and Employment Strategy Paper (GESP), comprised two pillars, namely: (i) Infrastructure Development; and (ii) Strengthening of Governance with a View to Building the Central Government’s Strategic Management and Capacity. At the end of the first two years of its implementation, which was deemed satisfactory overall, thanks to the complete implementation of the operations programme, the mid-term review conducted in September 2012 concluded that the strategy should be maintained for the remaining period.

vi

6. The first pillar seeks to develop rural and transport infrastructure in order to promote the value chains of the agro-pastoral and fisheries sectors. While enhancing the competitiveness of non-extractive tradable goods and regional integration (CEMAC/ECCAS and with Nigeria), this pillar seeks to reinforce and build on the impact of previous Bank interventions. The Bank’s experience in Cameroon shows that it can efficiently stay committed in these strategic infrastructure sectors, given its capacity to mobilize other partners through co-financing for major structuring projects.

7. The second pillar seeks to strengthen governance, notably in the transport and energy sectors where most of the Government’s structuring investments and the Bank’s interventions are concentrated. Through targeted reforms, it aims to support and make up for the weaknesses of the regulatory frameworks, with a view to enhancing the efficiency of sector public expenditure and ensure sustainable investments. In addition, this pillar will contribute to strengthening fiduciary and budgetary aspects of public expenditure (procurement, financial information system and maturation of programmes). The Bank will contribute to updating the national procurement system to ensure that national procedures apply to local competitive bidding (LCB) in Bank-financed operations.

8. The strategy proposed is consistent with the Government’s priorities defined in the Growth and Employment Strategy Paper (GESP 2010-2020). It will contribute to implementing the Bank Group’s 2013-2022 Ten-Year Strategy, especially its major thrusts on infrastructure development, regional economic integration, private sector development and promotion of good governance. The Bank’s strategy will back the Regional Integration Strategy Paper for Central Africa (RISP 2011-2015).

9. The strategy will also support cross-cutting issues, including gender, green growth promotion, youth employment and fragility-related concerns. The goal is to systematically integrate climate change, green economy, gender and youth employment promotion into Bank operations. The preparation of the Methodological Guide on reflection of the gender dimension and the basis for decent employment protection, the gender profile as well as the study on fragility in Cameroon should promote dialogue with the Government and TFPs on gender and the risks inherent in fragility (North, Far North and East). In this regard, the Bank will step up its cooperation with United Nations system institutions, especially UN Women, ILO, WHO, UNDP and UNIDO.

10. Regional integration in the CEMAC zone and with Nigeria is a priority of the strategy in light of Cameroon’s development vision . To this end, the 2015-2020 CSP will continue to focus on regional transport, ICT and energy operations to enable Cameroon to reduce its production factor costs and take advantage of its strategic geographic location as a transit country to landlocked nations (Chad and CAR). With planned investments in the energy sector, Cameroon could be a key player on the regional electric energy market.

11. The strategy will be mainly financed with AfDB window resources and partly with ADF window resources. Through leverage effect, these resources will play a catalysing role in mobilizing additional financing from some TFPs and/or the private sector. It will resort to all the co-financing instruments, PPPs, trust fund or facility resources and, especially , the financing instruments of the new credit policy, including partial risk guarantees.

Bank Group’s 2015-2020 Country Strategy Paper for Cameroon

1

I. INTRODUCTION

1.1 This document proposes a new Bank Group strategy for Cameroon covering the period 2015-2020 as well as thrusts for consolidating portfolio management. It was prepared using a broad-based participatory process and the new approach adopted for preparing CSPs, including prior consultation with CODE. This strategy is proposed within a special context marked by the raising of Cameroon to “Blend Country” status by the AfDB Group and the World Bank. This progress is expected to contribute to financing the country’s ambitious infrastructure programme at a lower cost. If the current development trend is consolidated and the per capita national income threshold is reached, the country could be reclassified from “Blend Country” to “ADB Country” status.

1.2 In November 2009, the Bank Group’s Board of Directors approved the Country Strategy Paper (CSP) for Cameroon (ADF/BD/WP/2009/147) covering the period 2010-2014. The CSP, which is aligned with the Growth and Employment Strategy Paper (GESP 2010-2020), comprised two pillars, namely: (ii) infrastructure development; and (ii) strengthening governance with a view to building the central government’s strategic management capacity. The 2010-2014 CSP mid-term review and the country portfolio performance review (CPPR) approved by CODE on 18 September 2012 recommended that the CSP’s two strategic pillars be maintained for the remaining 2012-2014 period. Moreover, the Executive Directors’ Consultation Mission to Cameroon conducted in March 2013 confirmed the Bank’s observation that growth had not produced any significant impact on social indicators (youth employment, household income generation and consideration of the gender dimension). Like the Bank, the mission had recommended that the next country strategy should be more inclusive.

1.3 In 2014, the Bank prepared the joint 2010-2014 CSP completion and country portfolio performance review (CPPR) report. The report as well as IDEV’s post-evaluation covering the period 2004-2013, considered by CODE in May and June 2014, revealed that the 2010-2014 CSP pillars were well aligned with the

strategic thrusts of GESP (2010-20202) and that portfolio performance had continued to improve since 2011.

1.4 The 2015-2020 CSP comprises six sections. After the introduction, Section II presents the country’s political, security, economic and social context, highlights cross-cutting issues and outlines the short-term prospects. Section III presents the major outcomes of the CPPR conducted in 2014 and brings out the key lessons learned. Section IV takes stock of the strategic implementation of the Bank’s previous strategy and draws the key lessons for CSP 2015-2020. Section V proposes guidelines for the Bank’s new strategy in Cameroon and Section VI presents the conclusion and recommendation to the Boards of Directors.

II. COUNTRY CONTEXT AND PROSPECTS

2.1 Political, Security, Economic and Social Context, and Fragility Aspects 2.1.1 Political and Security Context

2.1.1.1 Cameroon continues to enjoy relative stability, despite a regional context of political, security and humanitarian crisis. The political situation has remained stable compared to the average on the continent and better vis-à-vis Central Africa (see Graph 1) since the serious 2008 socio-political crisis referred to as "the hunger riots". The democratic process is continuing with a reconfigured political framework in May 2013 marked by the establishment of a bicameral Parliament

2This ten-year programme is designed to contribute to achieving Cameroon’s

ambition of becoming an emerging economy by 2035.

Source: AfDB Statistics Departement, using data from the WEF, 2013

-1,4 -1,2 -1,0 -0,8 -0,6 -0,4 -0,2 0,0

Political Stability

Rule of Law

Voice and Accountability

Graph 1: Political Context, 2012 Score -4.0 (Worst) to 2.5 (Best)

Africa Central Africa Cameroon


2

comprising an Upper House (the Senate) and a Lower House (the National Assembly). The holding of both legislative and municipal elections in August 2013 without major incidents, consolidated the country’s political stability. However, effort is still needed to strengthen the rule of law and accountability. Specifically, the legal and judiciary framework should be further consolidated.

2.1.2 Fragility Situation

2.1.2.1 Cameroon is not a fragile State, but border crises have created pockets of fragility. Crises in the North (North and Far North regions) bordering Nigeria resulting from incursions by the Boko Haram terrorist group, and in the East caused by the crisis in the Central African Republic (CAR) have created pockets of fragility. These pockets constitute risks that could provoke and/or heighten latent tensions (contained until now), resulting partly from low spatial inclusion. In response to these risks, the Government has stepped up its security mechanism in the North. In the East, a two-pronged humanitarian (with the support of the United Nations system agencies and the Bank) and security riposte is being implemented. Although the humanitarian as well as security and defence expenditure caused by these threats has so far been contained, it could lead to the crowding out of priority spending in the social sectors and/or result in increased budget deficit in the long run.

2.1.3 Economic Context

Growth and Growth Leverage

2.1.3.1 Cameroon’s economy – CEMAC’s engine in terms of agricultural/industrial production and services - continued to be resilient in 2014 despite an unfavourable regional environment, a stagnating world economic context attributable to weak recovery in OECD countries and slow growth in emerging economies. Growth remained sustained at 5.3% in 2014 against 5.5% in 2013, but still fell below the 6% target set in the 2010-2020 GESP (see Graph 2).

2.1.3.2 GDP growth is mainly driven by the secondary sector, whose dynamism was sustained by more abundant supply of energy and agricultural products in 2014 than in 2013, and by a moderately expansionist fiscal policy marked by the continuation of major infrastructure projects.

On the supply side, growth is also driven by the primary and tertiary sectors, both of which benefited from the policy to revive various branches of food crop agriculture and export agro-industry in a favourable climate context. However, this performance was affected by loss of market shares, especially in CAR, Chad and Nigeria, and by a decline in oil production in the second half of the year3. On the demand side, growth in Cameroon in 2014 (5.3%) was sustained by domestic demand, itself propelled by final consumption dynamism. In contrast, external demand weighed on growth with a marked increase in goods and service imports

(6.0%) compared with exports (2.7%).

2.1.3.3 Strong consumption continued in 2014. In 2014, private consumption recorded an estimated 4.4% growth, representing 74.4% of GDP. This trend resulted from the implementation of measures against high cost of living and improved household income triggered by renewed economic activity and recruitments in infrastructure construction sites. Public consumption accounted for 11.3% of GDP in 2014, while non-interest current expenditure (its main component) increased by 8.2%.

2.1.3.4 The investment drive observed since 2010 continued in 2014. Investment increased by 8.0%, contributing to GDP growth by 1.6 points. It represented 20.3% of GDP in 2014, or 0.9% more than in 2013. This trend resulted from increased private investment backed by improved energy supply, investment facilities granted by the State, the rise in lending to the economy (+4.9%) and the induced effects of

3 The 2015 budget was designed based on oil prices of USD 89 per barrel, for a

production of 31 million barrels. The decline in prices to USD 55 per barrel has not stimulated the investment required to reach the production target.

Source: AfDB Statistics Department, African Economic Outlook, March 2014

0

1

2

3

4

5

6

7

8

2005 2006 2007 2008 2009 2010 2011 2012 2013

Graph 2: Real GDP Growth Rate (%)

Cameroon Central Africa Africa


3

major public investments (capital expenditure by the State recorded a 9.6% rise). Investments continued in mining and oil exploration.

Macro-economic Management

2.1.3.5 Average annual inflation recorded a slight one-point drop and stood at 2.3% in 2014, falling below the CEMAC 3% convergence ceiling.

2.1.3.6 The budgetary policy has been moderately expansionist over the last three years, owing to major energy and transport structuring project investment expenditure, in response to the high demand for goods and services in a context of economic recovery and infrastructure gap accumulated for more than two decades. The rise in expenditure is mainly financed by external loans and oil revenue. This expansionist fiscal policy, which is, however, sustainable, resulted in a budget deficit (cash basis) of about 5.2% of GDP in 2014, against 4.1% and 2.4% in 2013 and 2012, respectively.

2.1.3.7 The financing need for the three-year period 2015-2017 stands at approximately CFAF 3 400 billion. This financing gap will be filled through bond issue on the national, regional (CEMAC Zone) and international markets, on the one hand, and external borrowing from bilateral (including China) and multilateral TFPs (of which the Bank), on the other. It is worth noting that the 2013, 2014 and 2015 financial years have been marked by a major reform, namely the implementation of a programme budget based on a three-year Medium-term Expenditure Framework (MTEF), in accordance with CEMAC Directive No. 01/11-UEAC-190-CM-224.

2.1.3.8 Although on the rise with emphasis on non-concessional debt, the debt ratio is below the community threshold and remains sustainable5. There has been a trend towards a rapid

4 This directive on appropriation acts, which is a major reform in all franc zone

countries (CEMAC, WAEMU and the Comoros island), establishes the transition from an annual resource-based budget to a programme budget founded on a three-year Medium-term Budgetary Framework (MTBF), itself hinged on a Medium-term Expenditure Framework (MTEF). In this budget execution reform, the budget now finances multi-year programmes which may comprise several projects to be implemented in the medium and long term. The logic of coherent and sustainable investment is prioritized and strengthened. In the long run, it is expected that sector ministries will have the powers to authorize their expenditures. In the resource-based budget approach, this role was reserved for the Ministry of Finance.

5 For 2014 and beyond (2014-2017 period), the debt sustainability analysis conducted in August 2014 within the consultation framework pursuant to Article IV of the IMF shows that the public debt stock to GDP ratio will remain below 17.6%. Even in the case of the most unfavourable shock, this ratio will not exceed 18.7%, which is well below the 70% community convergence threshold and the above-mentioned 35% cautionary threshold.

increase in non-concessional debt6 since 2012 owing to the financing of structuring infrastructure projects. However, it should be noted that since debt cancellation in 2006 under the HIPC Initiative, the risk of debt overhang has remained low.

2.1.3.9 Negative net external demand has worsened the current account deficit. The negative influence of net external demand continued in 2014 as a result of increased importation of capital goods for infrastructure works as well as agri-food and manufactured products. Current transaction deficit which varied from 3% to 4% between 2012 and 2014 (see Graph 3) is mainly financed by new external loans and FDIs.

6 These debts are owed non-traditional partners outside the Paris Club.

Source: AfDB Statistics Department, African Economic Outlook, March 2014

-10

-5

0

5

10

15

20

25

2005 2006 2007 2008 2009 2010 2011 2012 2013

Graph 3: Current Account Balance(% of GDP)

Cameroon Central Africa Africa


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Economic, Financial and Natural Resource Governance

2.1.3.10 Economic and financial governance: although progress has been made in budget management, significant weaknesses still limit the efficiency of public expenditure. The adoption in 2007 of the law on the State’s financial system (LRFE) was accompanied by major reforms, notably with respect to results-based management. However, loopholes inherent in: (i) low mobilization of domestic resources7; (ii) the inefficiency and ineffectiveness of the public investment programme with low PIB execution rates; (iii) the weaknesses of the planning-programming-budgeting-monitoring chain (PPBM); (iv) the insufficient maturation level of some projects; (v) the absence of an integrated public finance management information system; and (vi) the rise in non-concessional, albeit sustainable, debt are the major challenges facing public expenditure efficiency. These challenges have been highlighted by the Bank’s public expenditure review study.

2.1.3.11 Concerning procurement, LCB contract award procedures are deemed compliant overall, despite a few weaknesses related to community and Bank fiduciary requirements. In light of the conclusions of the assessment conducted by the Bank and Government’s efforts, there are plans to propose the use of national procedures for local competitive bidding (LCB) to the Government (see Annex 7). A letter of agreement to be signed with the Government will identify the weaknesses and measures to be implemented.

2.1.3.12 Business environment and private sector development: Cameroon’s private sector is one of the most diversified and dynamic in the CEMAC zone, but its development is hindered by two categories of constraints. The first, which is endogenous to enterprises, relates to the lack of organization. The second category of constraints, which is exogenous, concerns the cost, quality/availability of production factors, including energy, ICTs and human resources in some areas. These constraints also include traditional setbacks (legal and judicial, regulatory, financial, banking and land-related) and incentive policies. Dialogue between the Government and the private sector within the framework of the Cameroon Business Forum (CBF) has helped to identify and propose reforms to be implemented to improve the 7 With a level that ranges between 11% and 13% of GDP, Cameroon’s fiscal pressure rate is below its potential.

business climate. The issuing of related instruments and their implementation would help to improve the position of the country, which dropped ten places between 2013 and 2014 in the 2015 Doing Business ranking.

2.1.3.13 Natural resource management: in October 2013, Cameroon acquired the status of EITI-compliant country. To enable judicious exploitation of its natural resources in compliance with international transparency norms and standards, a more attractive new

mining code is being prepared with the support of TFPs, including the Bank, through the Legal Support Facility (LSF).

2.1.3.14 Quality of governance, policies and institutions: indicators on the quality of structural policies, economic and financial governance as well as transparency have not recorded any significant improvement (see Table 1 below). Over the period 2010-2014, the assessment of policies and institutions through the CPIA indicator revealed near stagnation – if not a downtrend - in the quality of public policies. Only economic management (+12.5%) and social inclusion policy (+7.5%) indicators improved significantly. The Mo Ibrahim Foundation governance indicator in Africa for 2014 confirmed the urgent need to implement targeted reforms. Cameroon, which moved up one place, was ranked 34th out of 52 countries, with a rating of 47.6 on 100, falling below the 51.5 African average. However, the country recorded a higher rating than the average of the seven CEMAC countries.

Cameroon 2011 2012 Status 2011 2012

Rank / 53 Improvement (▼) Score / 100

Overall 36 35 ▼ 44,9 47,0

Safety And Rule Of Law 35 36 ▲ 46,2 46,5

Rule Of Law 36 35 ▼ 35,0 37,1

Accountability 36 41 ▲ 36,0 34,4

National Security 41 39 ▼ 29,4 29,9

National Security 23 24 ▲ 84,6 84,7

Participation And Human Rights 43 39 ▼ 32,0 36,4

Participation 42 33 ▼ 21,3 32,7

Rights 44 44 ► 28,1 29,7

Gender 36 34 ▼ 46,7 46,9

Sustainable Economic Opportunity 29 26 ▼ 46,9 48,0

Public Management 19 26 ▲ 57,9 55,3

Infrastructure 24 21 ▼ 31,5 33,5

Environment 39 37 ▼ 39,2 43,2

The Rural Sector 20 18 ▼ 59,1 60,2

Human Development 27 26 ▼ 54,6 57,1

Health 36 35 ▼ 59,3 63,5

Education 36 21 ▼ 51,7 55,1

Welfare 21 20 ▼ 52,8 52,8


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2.1.3.15 Concerning governance, Cameroon obtained its best rating in the "rural sector" sub-category. It occupied the 20th position out of 52 countries, showing its agricultural comparative advantage which only needs to be better harnessed as part of the development of value chains to ensure a gradual and structural transformation of its economy as recommended by the Bank’s Ten-Year Strategy (2013-2022).

2.1.3.16 Financial sector and financial inclusion: although Cameroon’s financial sector is the most developed in the CEMAC region, it is facing serious institutional, regulatory and operational challenges. In particular, financial inclusion remains low and the sector’s abundant liquidity is not fully and adequately transformed. Cameroon’s financial sector accounts for about half of CEMAC’s financial assets. It comprises 13 commercial banks with 231 branches, a postal savings network (CAMPOST), 24 insurance companies, 1 pension fund and 407 microfinance institutions. In 2012, the sector’s weight in the economy in terms of assets was estimated at 39% of GDP, against 36% in 2010. Despite the diversity and performance of the vast majority of its sub-sectors, (bank, insurance, microfinance, financial market), the financial sector is characterized by a low rate of access to banking services (13.5%), insurance penetration (2%), the financial market and, consequently, private investment financing.

2.1.4 Social Context

2.1.3.1 Poverty reduction and achievement of the MDGs: although positive, macro-economic performance is below the country’s ambitions and the attainment of the MDGs in 2015 will have to be deferred. The poverty threshold, which was 40.2% in 2001, slightly improved to 39.9% in 2007. The new on-going survey will help to confirm or discard this trend. Although the economic growth rate has been on an uptrend since 2008, (see 2.1.3.1), it has not been strong enough to significantly impact poverty, in light of the 2.6% demographic increase and the 2.2% inflation rate. The per capita gross national income8 and most social indicators have stagnated9. According to the National Institute of Statistics (NIS), the expanded unemployment rate, which was 6.2% for the entire population in 2005, has reached

8 Estimated at USD 1 170 in 2012 compared to USD 1 215 for ADB countries in 2015. 9 Inequalities remain high: the country’s Gini coefficient is 0.39.

9% among youths10. Spatially, this expanded unemployment rate is 20.2% among urban youths and 4.1% among rural youths.

2.1.3.2 Renewed domestic resource-financed investments in the social sectors could result from fiscal gains made by the State from the more than 60% cut in fuel subsidies. In fact, ill-targeted subsidies to petroleum products and some State corporations instituted since the 2008 crisis had continued to increase and reached about CFAF 450 billion11 in 2013, leading to the crowding out of some expenditures, notably social, despite their priority nature.

2.1.5 Cross-cutting Issues

2.1.5.1 Gender disparities: despite the progress made on the institutional, legal, political and economic fronts, there are lingering problems and obstacles with respect to the promotion of the rights of women. The challenges to be met include low literacy rate among women, high rate of school drop-out among girls (30% at the primary level), early pregnancy (21% of girls), decline in the rate of women’s activities (78.8% of women are under-employed)12, socio-cultural hindrances13 and discriminatory practices that undermine the rights of women and girls. These obstacles limit the participation of women in decision-making, resulting in women’s low access to loans and, consequently, production resources14 due to the lack of guarantees.

2.1.5.2 Environment and climate change: ten per cent of the Congo Basin forest is found in Cameroon, covering 41.3% of the national territory. Economic activities heavily depend on natural resource exploitation. As a result, the Government is sensitive to environmental protection and forest conservation issues15. To that end, the country is signatory to most international environmental conventions16. The Government has adopted a national desertification control action plan which

10 Source: NIS, EESI 2005, Phase 1. 11 I n 2013, subsidies represented 3.3% of GDP and 19.5% of current expenditure. 12 The expanded unemployment rate is 18.8% among urban women and 2.9% among

rural women, compared to only 10.2% among urban men and 2.5% among rural men. 13 Forced and early marriages, practices that are harmful to women’s health (for

example excision, widowhood rites, etc.). 14 92% of women aged between 15-49 years do not own a house and 90% of them also

do not own undeveloped land. 15 Regarding biodiversity conservation, Cameroon has increased its protected surface

area from 7% in 1996 to close to 15% in 2013. 16 These include the Convention on Biodiversity, the 1997 UN Convention to Combat

Desertification in Those Countries Experiencing Serious Drought and/or Desertification, the Stockholm Convention on Persistent Organic Pollutants and the 2004 UN Convention on Climate Change.


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highlights the vulnerability of semi-arid (Sahel) and coastal zones to climate change. The country embarked on the REDD+ process in 2008. The implementation phase of the RPP was fully validated in February 2013. The national REDD+ strategy17 is being prepared, alongside a series of related studies. The country has concluded a VPA/FLEGT with the EU to improve forest governance and timber trade using a mechanism for verifying the legality of timber harvesting and processing activities. Faced with the increased poaching of big game, particularly elephants, Cameroon has, together with the other CEMAC States, undertaken to implement an Extreme Emergency Anti-poaching Plan (PEXULAB) to protect elephants, as a back-up for the National Forest and Wildlife Control Strategy and other specific and complementary actions.

2.1.5.3 Regional integration and trade: owing to its geographic location, the structure and size of its economy, Cameroon is the driver of trade in the CEMAC zone. Cameroon’s economy accounts for close to 40% of CEMAC’s GDP, 16.8% of its exports and 38.8% of its imports. Its population represents close to 60% of CEMAC’s. Despite the volume of Cameroon’s trade with CEMAC/ECCAS countries and Nigeria, there are many lingering obstacles to the efficient use of this trade potential. The Douala Port, which is the hub of the country’s external trade18 and the access point for operators from landlocked neighbouring countries (Chad and CAR), is suffering from several malfunctions, including notably the long delays in customs clearance operations and silting. In addition, the inter-State transit corridors with landlocked countries are not functional owing to the proliferation of tariff and non-tariff barriers. Moreover, the ratification of the interim EPA with the EU in 2014, which is expected to improve the price competitiveness of imported goods, could lead to a drop in customs duties in a context already marked by tax exemptions granted as a way to encourage investments.

17 The crossing of this critical stage should enable the country to have access to

financing from international mechanisms on climate change to implement the National REDD+ Strategy. Moreover, efforts are being made to enhance governance in the forestry sector since the signing in 2010 of the Voluntary Partnership Agreement under the European Union (EU) FLEGT Initiative.

18 It accounts for 95% of customs revenue and most of Cameroon’s trade.

2.1.6 Medium-term Prospects

2.1.6.1 Growth prospects for 2015 and 2016 are favourable. The extractive industries (oil and gas) will sustain the uptrend. In the non-oil sector, growth prospects in the primary sector are favourable. This sector should benefit from the start of production of new farms (cocoa, coffee, cotton, rubber, palm oil, maize and rice), the opening up of production basins to consumption areas, continued modernization of agricultural techniques and distribution of fertilizers, high-yield plants and seeds. In addition, the operationalization of gas plants and hydro-electric dams is expected to increase energy supply and quality. The availability of energy should promote agro-sylvo-pastoral and fisheries sector processing activities. As a result, real GDP growth is expected to remain strong, standing at 5.4% in 2014 and 5.5% in 2015 and 2016, despite sluggish world growth.

2.2 Country’s Strategic Options

2.2.1 Country’s Strategic Framework

2.2.1.1 Drawing lessons from the implementation of its poverty reduction strategy after reaching the HIPC Initiative completion point in 2006, the Government in 2010 mapped out a Development Vision up to 2035. This long-term vision seeks to transform Cameroon into an emerging and democratic country, united in its diversity. Specifically, Vision 2035 is the reference framework for: (i) substantially reducing the poverty threshold; (ii) attaining the level of middle-income country; (iii) becoming a newly industrialized country; and (iv) consolidating the democratic process and national unity.

2.2.1.2 These specific objectives inspired the guidelines of the Growth and Employment Strategy Paper (GESP) for the period 2010-202019, which covers the first ten years of Vision 2035. The major problem in implementing GESP concerns growth acceleration, formal job creation and poverty reduction. Consequently, there are plans to: (i) raise growth to an annual average of 5.5% over the period 2010-2020; (ii) reduce under-employment from 75.8% to less than 50% in 2020; and (iii) reduce the poverty rate from 39.9% in 2007 to 28.7% in 2020.

19 The Government is planning to conduct a GESP mid-term review in 2015.


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2.2.1.3 To achieve these objectives, the Government has opted to implement a coherent and integrated three-pronged strategy with the support of TFPs. This strategy comprises: (a) a growth strategy; (b) a State governance and strategic management improvement strategy; and (c) an employment strategy. In 2014, the Government adopted an emergency plan that is based on Vision 2035 and GESP objectives, and identifies the priority operations to be implemented in the country’s fragility zones.

2.2.1.4 Moreover, the annual monitoring report has confirmed the current thrusts of GESP. A preliminary retrospective review of GESP confirms the uptrend of the first two thrusts mentioned above. The annual average growth rate over the period 2010-2013 is rising steadily, albeit below forecasts, and stands at 4.4% compared to the 5.5% objective. Financial and extractive sector governance has improved. The transposition of the CEMAC directives on appropriation acts is on-going, and inflation and the debt ratio are under control, standing below the community threshold. Budget deficit is sustainable. EITI-compliance was obtained in 2013. These outcomes will be consolidated and efforts are required to improve the business environment. The outcomes of the third thrust dealing with social aspects are moderate.

2.2.1.5 The preceding 2005-2009 and 2010-2014 Bank strategies supported the Government’s strategy by financing transport and energy infrastructure to promote growth and open up production basins. Dialogue on improving the public finance management framework has been strengthened. Portfolio operations financed in support of preceding country strategies are shown in Table 1 of Annex 4.

2.2.1.6 To consolidate the outcomes of past interventions, the proposed strategy will directly support the first two GESP thrusts and indirectly support the third thrust so as to eliminate the weaknesses and obstacles hampering economic diversification, with a view to inclusive and sustainable growth.

2.2.2 Weaknesses and Challenges

2.2.2.1 The low budget allocation for structuring infrastructure is an impediment to the development of a modern, diversified and competitive economy, and the

strengthening of trade and regional integration. The country is suffering from a growth support structuring infrastructure gap as shown in Graph 4 below. This situation increases the cost of production factors and limits the attractiveness of the other non-extractive sectors to FDI. In turn, this reduces the possibilities of diversifying the economy and creating jobs.

2.2.2.2

2.2.2.2 In the area of energy, the hydroelectricity and gas-fired thermal electricity potential is under-tapped despite abundant water and natural gas resources. Owing to lack of judicious investment in production and, particularly, transport, the level of technical loss is high (13.4% in 2013), the electricity needs of households and industries are not met and the country experiences intermittent load shedding at peak consumption periods20. As underscored in the study conducted by the Bank in 201321, the analysis of transport infrastructure reveals that the investments made are insufficient and have not helped to reduce the degradation of the network or improve the country’s competitiveness through a substantial drop in the cost of factors of production. Recurrent silting at the Douala Port is an impediment to any substantial rise in goods traffic. The country’s geographic location in the Gulf of Guinea, which makes it a trans-shipment zone for the traffic of landlocked countries (Chad and CAR), requires that its infrastructure be upgraded with Bank support22. The Bank’s regional integration policy recommends the strengthening of operations started under the 2010-2014 strategy in the transport and energy23 sectors, and the

20 According to the 2011 MINEE Report on Cameroon’s energy status, the rate of

effective access to electricity in 2010 was 60% compared to 48% in 2007. 21 The transport sector public expenditure review. 22 The Bank devotes more than 85% of its portfolio to the infrastructure sector. It is

expected to strengthen its interventions within the framework of Cameroon’s progress to the AfDB window.

23 In this regard and as a prelude to these upcoming interventions, the Bank conducted two public expenditure reviews in the road transport and energy sectors in 2013, within the framework of its public expenditure efficiency study. The conclusions and recommendations of these reviews will guide the formulation of future operations.

Source: AfDB Statistics Departement, using data from the WEF, 2001

2520

25 24

114,0 111,0

70,0

123,0131 128

110

125

0

20

40

60

80

100

120

140

Overall infrastructure Road infrastructure Railroad

infrastructure

Port infrastructure

Graph 4: Infrastructure Index, 2008

Best Rank in Africa Cameroon Worst Rank in Africa


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Box 1: Cooperation Between the Bank and Cameroon

Cameroon’s accession to "Blend Country" status eligible for ADB and ADF windows has aroused great interest in government and among economic operators with respect to the use of the instruments of the new loan policy (partial risk guarantee). Under the 2015-2020 CSP, the Bank, together with the authorities, has identified an indicative lending programme (see Annex 6) of about UA 2.0 billion, with co-financing equivalent to UA 1.5 billion.

removal of ICT constraints that hamper the country’s competitiveness.

2.2.2.3 It is necessary to strengthen governance to improve expenditure efficiency and mitigate the risks to public finance sustainability: the public expenditure review conducted by the Bank in 2013 and consultation pursuant to Article IV of the IMF, the report of which was produced in August 2014, highlighted the lingering weaknesses in public finance management. These weaknesses mentioned in paragraph 2.1.3.9 are the major challenges that should be met. Improving the business environment is a priority in ensuring the country’s attractiveness and diversifying FDI within the framework of PPPs. In light of the country’s ranking in the 2015 Doing Business Report, a major challenge is the improvement of the business environment, which is a catalyst for private sector development that the country needs to achieve inclusive and job-creating growth. Instruments aimed at improving the business environment must be adopted promptly.

2.2.3 Strengths and Opportunities

2.2.3.1 With five agro-ecological zones, Cameroon’s under-exploited agri-food industry may be a source of economic diversification and transformation, and a springboard for inclusive and sustainable growth. The agricultural sector, which comprises agro-sylvo-pastoral and fisheries activities, accounts for 22.5% of GDP. This undeveloped sector has a progress margin given the high external demand, especially regional, and the possibilities of exporting to the major Nigerian market24. A proactive production, processing and marketing infrastructure development policy, the building of the capacity of rural communities and research centres, including IRAD, access to loan, especially by women and youths, reduction of the high costs of production factors, including electricity, as well as judicious policies offering incentives to private agricultural investments, may lay the foundation for agro-industry25.

2.2.3.2 Electricity as a tradable commodity could contribute to evening the trade balance. So far, only oil has played this role in

24 Cameroon is CEMAC’s bread basket for the supply of agricultural commodities to

Chad, Equatorial Guinea and Gabon. 25 In this regard, the country recently adopted a National Agricultural Investment Plan

(PNIA), which complies with the CAADP process.

the energy sector. Large-scale development of hydroelectric production and the upgrading of transport infrastructure will help to meet domestic needs and open prospects for export to neighbouring countries under regional interconnection projects. The development of the gas potential26 through gas-fired thermal plants to back hydroelectricity will help to meet the high energy demand from agri-food and mining. Moreover, plans could be made for industrial distribution and export of liquefied gas as well as production of fertilizers required for a modern and diversified agriculture. To that end, the Bank will support private sector development through the instruments of its new loan policy.

2.3 Aid Coordination and AfDB Positioning

2.3.1 Aid Coordination

2.3.1.1 Official assistance is coordinated by the Government. To ensure more effective ODA, the authorities will continue the efforts made in line with the Paris Declaration, the Accra Programme of Action and the Busan Commitments. As part of preparing and monitoring resource mobilization to finance GESP, a State/TFP committee has been established. This committee, which brings together all TFPs operating in Cameroon, is co-chaired by MINEPAT and UNDP. It should be noted that coordination between TFPs on strategic and operational issues is also done within the "G8+6"27group, in which the Bank is actively involved.

2.3.2 AfDB and Other TFP Positioning in Cameroon

2.3.2.1 Cooperation between Cameroon and the Bank is dynamic, and the Bank remains a leading strategic partner (see Box 1 below). The Bank’s increasingly selective intervention in

26 Estimated at 4 tera-cubic feet, i.e. 113.3 billion m3.

27 This group comprises 8 countries (United States, Canada, England, France, Germany, Japan, Italy, and Spain) and 6 multilateral partners: AfDB, IMF, the World Bank, the EU, UNDP and Belgium.


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the country will gradually focus on a limited number of sectors. In light of the portfolio of the previous strategy and the new indicative operations programme, cooperation will be intensified over the coming years in the strategic and structuring sectors of the economy, including agriculture, energy, transport and ICTs, governance in these sectors and the private sector.

2.3.2.2 Following the strengthening of CMFO’s capacity in 2011, the Bank’s portfolio has increased by more than 35%. Thanks to the Field Office’s involvement, the Bank’s resources generated a leverage effect of 1.5 through co-financing. The portfolio performance has improved steadily and the Bank has become the Government’s preferred partner. After having been Public Finance Sector Committee leader for close to 5 years, the Bank is Transport Sector Committee leader since 2014. Practically all sector project managers (95%) are based in CMFO and all strategic and operation documents are prepared by the Office’s staff.

2.3.2.3 Other multilateral and bilateral partners also fund operations in various areas. The EU mainly intervenes in the governance, infrastructure and rural development sectors. The World Bank focuses on human development (education and health sectors), economic and financial governance (including the business environment) as well as in the infrastructure, industrial, services and rural sectors. The IMF with which the country has not signed any programme since the attainment of the HIPCI completion point, intervenes in financial governance through its consultation missions under Article IV, with technical assistance from AFRITAC-Centre. United Nations system agencies are also very active, with concentration on sectors covered by their respective mandates. The two key bilateral partners are China and France. The intervention areas of Cameroon’s active partners are listed as Annex 9.

III. COUNTRY PORTFOLIO REVIEW AND KEY LESSONS LEARNED

3.1 Overview and Performance of Bank Portfolio in Cameroon

3.1.1 Portfolio Composition

3.1.1.1 As at 30 May 2015, the Bank’s active portfolio comprised 19 projects for a net total commitment of UA 608.8 million, with a strong regional content since nearly 25% of commitments are devoted to multinational operations. The portfolio is broken down as follows: UA 487.8 million for the public sector (15 operations, 11 of which are national and 4 regional) and UA 121.03 million for the private sector (4 operations). The size of private sector operations is considerable in terms of financing volume (19.88%) and number of operations (21.05%). The allocation of the public portfolio is broken down by sector as follows: Transport (61.93%), Water and Sanitation (16.02%), Energy (15.95%), Agriculture and Environment (3.50%), Governance (2.46%) and an emergency programme (0.14%).

3.1.1.2 The composition of the portfolio is mostly infrastructure-oriented. Such orientation clearly reflects the Government’s national and regional priorities, as well as the Bank’s strategic options over the period 2010-2014.

3.1.2 Analysis of National Public Portfolio Performance Indicators

3.1.2.1 The performance of the national public sector portfolio is deemed satisfactory and on an upward trend. The 2014 review gave a rating of 2.36 on a scale of 3. This rating has recorded a steady rise in the three preceding reviews (2.06 in 2011; 2.15 in 2012; 2.30 in 2013), thanks to action taken by the Bank and the Government. The portfolio’s major problems are: (i) late project start-up; (ii) low mobilization of counterpart funds; (iii) delays in contract award and execution; and (iv) delays in introducing financial management tools.

3.1.2.2 The 2014 rating for all performance indicators of projects retained in SAP-PS was higher than that of 2011, thus indicating progress. However, a few upward or downward variations were observed during the years in between.


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Box 2: IDEV Recommendations Taken into Account by CMFO

IDEV-1: Reinforce the mainstreaming of reform conditions and critical risks in the CSP and projects to ensure their efficient and coordinated implementation, and their ownership by the stakeholders concerned

IDEV-2: Reinforce private sector interventions through closer collaboration between OPSM and CMFO to increase PPP financing opportunities

IDEV-3: Implement an institutional support operation aimed at enhancing the sector governance of the investment sustainability framework (Road Maintenance Fund)

IDEV-4: Continue Bank support in the area of good governance and the building of the capacity of consulting, works sub-contracting and training firms.

Management’s response to IDEV’s evaluation presented and approved by CODE in June 2015 highlights the specific measures to be implemented within the framework of the 2015-2020 CSP.

3.1.2.3 Fulfilment of Loan Conditions. The rating for this indicator rose from 2.19 to 2.64 on a scale of 3. This progress is attributable to: (i) the reduction in the time required to sign loan agreements (from 5 months on average in 2011 to 4.1 months in 2014); (ii) measures taken by the Bank to reduce the number of conditions and simplify them; and (iii) high-level dialogue between the Bank and the Cameroonian authorities with a view to accelerating the fulfilment of conditions. However, there are lingering difficulties in infrastructure (transport and energy) project start-up owing to delays in the assessment and payment of compensation to persons affected by works. As a result of the low capacity of RECs, more time is required between the approval of public regional projects and first disbursement than for public national projects.

3.1.2.4 Procurement of Goods and Services. The rating for this indicator increased from 2.03 to 2.21. This progress is attributable to: (i) the building of the capacity of project implementation units (PIUs) through training sessions organized by the Bank; (ii) the considerable reduction in the dossier processing time at CMFO; and (iii) the close assistance provided to PIUs by CMFO during preparation of public procurement plans and procurement documents. However, delays have been recorded in the processing of files by tenders boards and in the validation and submission of contractors’ detailed accounts to the Bank.

3.1.2.5 Financial Performance. The rating for this indicator rose from 1.92 to 2.39. This progress is due to: (i) the building of the capacity of PIUs through training sessions organized by the Bank; (ii) the reduction in the payment request processing time at CMFO; and (iii) the close assistance provided by CMFO with a view to making PIUs comply with the Bank’s rules and procedures. Weaknesses highlighted relate to: (i) delays in putting management tools required by the Bank in place, namely the procedures manual and the computerized accounting system; and (ii) failure to submit audit reports and financial monitoring reports on time.

3.1.2.6 Activities and Outcomes. The rating for this indicator increased from 1.81 to 2.07. This progress is explained by: (i) regular project implementation monitoring by the Government, the organization of quarterly reviews comprising the Bank office (CMFO), project oversight ministries and project executing agencies; (ii) the

frequency of supervision missions organized by the Bank (2 missions yearly); and (iii) the preparation of a portfolio performance improvement plan after each review, and monitoring of the implementation of recommendations by the Bank and the Government. The weaknesses observed concern: (a) the late mobilization of counterpart funds; (b) compliance with the project implementation schedules set out in the agreements28; and (c) the low capacity of some contractors (national and international), especially with regard to road projects in the portfolio.

3.1.2.7 Development Impact. The rating for this indicator increased from 2.33 to 2.57. This progress shows that Bank operations contribute to improving the living conditions of the rural and urban dwellers in Cameroon, especially in terms of access to transport infrastructure, energy, water and sanitation. These operations also contribute to improving governance.

3.1.2.8 In light of the trends of the key performance indicators, the performance of Bank-financed operations in Cameroon was deemed satisfactory during the CSP implementation. This assessment is backed by the following observations: (i) the average age of the portfolio ranged from 3 to 4 years; (ii) since 2012, the active portfolio has had no project aged more than 8 years post-approval; (iii) the highest rate of at-risk projects was recorded in 2011. Subsequently, this rate dropped to 4.76 in 2014; and (iv) the disbursement rate exceeded

the 40% threshold in 2012 and 2014.

28 As a result of this, the Government has had to submit requests to the

Bank to extend the closing date of several projects.


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3.1.2.9 Detailed information on the performance of operations during the CSP implementation is presented in Table 2 of Annex 4. The ratings are those of the last review conducted in 2014 (status as at 30 September 2014) and past reviews conducted in 2011, 2012 and 2013.

3.1.2.10 The performance of regional29 and private sector projects is deemed average, while the performance of projects financed by the Congo Basin Forest Fund (CBFF) is deemed low. Three of the four private sector operations showed a 100% disbursement rate. The fourth operation faced serious difficulties, but its suspension has been lifted and disbursement will resume. There were delays in the implementation of the seven CBFF active projects. Measures taken to remedy the situation included: (i) streamlining procedures to adapt them to the modus operandi of NGOs; and (ii) building the procurement and financial management capacity of NGOs.

3.1.2.11 A new portfolio performance improvement plan (PPIP) covering the period 2014-2015 was prepared and validated with the participation of all stakeholders. According to the current approach, the review examined the partially implemented PPIP for the period 2013-2014. Based on the implementation of the 2013-2014 PPIP, a new PPIP covering the period 2014-2015 (see Annex 5) was prepared to enhance the portfolio performance over the coming years.

3.2 Key Lessons Learned from the Portfolio Review and the IDEV Report

3.2.1 The 2015-2020 CSP takes into account the IDEV recommendations over the period 2004-2013 as well as those of the PPIP, namely:

Consolidation of progress made in the area of co-financing: in light of the country’s infrastructure needs, the Bank should strengthen ongoing co-financing initiatives to increase the leverage effect of its resources.

Building the capacity of Regional Economic Communities (RECs): faced

29 The two regional projects the Bamenda-Enugu Corridor Transport Facilitation

Project, approved on 25 November 2008, and the Brazzaville-Yaoundé Corridor Transport Facilitation Project, approved in September 2009. The national components of these projects are progressing satisfactorily, while the regional components implemented by RECs are behind schedule.

with difficulties in executing the regional components of its projects, it would be necessary to implement a technical assistance programme targeted at RECs to increase their capacity to coordinate and implement regional projects.

Reinforce the mainstreaming of reform conditions and critical risks in the CSPs and projects (IDEV-1): in the past, the Bank made considerable effort to conduct economic and sector work aimed at improving its knowledge of the country so as to better prepare its country strategy in Cameroon. This effort should be maintained and strengthened in the Bank’s future focus areas. The Bank should better sensitize the Government on the timely adoption of decrees to compensate the population.

Reinforce private sector interventions (IDEV-2): as a result of the raising of Cameroon to "Blend Country" status, the Bank should strengthen its human resources in order to increase its interventions in the private sector, especially with a view to making the most of the substantial increase in the value chains of agro-sylvo-pastoral and fisheries sectors, in addition to the opportunities offered by other sectors of activity. This would enable growth to be more inclusive.

Ensure the sustainability of investments financed by the Bank (IDEV-3): strengthening infrastructure management, especially transport, through a second generation Road Maintenance Fund is necessary to ensure sustainable investments and public expenditure effectiveness. The aim is to contribute to improving sector governance by combining infrastructure financing with institutional support that would help to create conditions for optimal project implementation and the achievement of outcomes.

Build the capacity of local enterprises (IDEV-4): the performance of rural development and sanitation projects has been limited by the low capacity of local enterprises. As a result, it is necessary for the Bank, together with TFPs, the Chamber of Commerce, Industry and Mines and the employers’ association, to compile a


12

"Directory" to identify and rate enterprises involved in consulting work, works execution, sub-contracting and training, with a view to improving their procurement capacity.

Enhancing project implementation and monitoring performance: although overall portfolio performance is satisfactory, about 4.76% of projects are at risk. These projects require close monitoring to accelerate their implementation rate and improve overall portfolio performance.

IV. 2010-2014 STRATEGY AND KEY LESSONS LEARNED

4.1 Implementation of 2010-2014 CSP and Expected Outcomes

4.1.1 Expected outcomes: the 2010-2014 CSP comprised two pillars, namely: (i) Infrastructure Development; and (ii) the Strengthening Governance with a view to Improving Central Government’s Strategic Management.

4.1.2 The first pillar specifically sought to: (i) construct roads to densify the internal network, link Cameroon to the other countries of the sub-region in a bid to strengthen regional integration and open up agricultural regions to enable the population to have access to markets and basic social services; (ii) improve access to electricity in urban and rural areas in order to improve the living conditions of households and support the national production mechanism; (iii) improve connectivity to ICTs to enhance the competitiveness of businesses and the performance of public services; and (iv) support the Government’s drinking water supply and sanitation policy.

4.1.3 The second pillar of the 2010-2014 CSP sought to: (i) improve public finance management and the revenue mobilization system; (ii) improve the business climate; and (iii) modernize the land registration system.

4.1.4 Outcomes: as shown in the joint 2010-

2014 CSP completion and CPPR report (Ref. ADB/BD/WP/2015/56) presented to CODE on 11 May 2015, strategically, the two pillars of the

strategy were aligned with the country’s priorities and, operationally, the implementation of the CSP was satisfactory overall.

4.1.5

4.1.6 Under the first pillar, all transport infrastructure projects as well as rural agriculture support infrastructure projects were approved. The inter-state corridors to Chad, CAR, Congo and Nigeria are completed or in an advanced state. In addition, the intangible trade facilitation infrastructure was set up. Bank-financed operations helped to open up agricultural production basins, stimulate production and commercial activities in the project areas and with the above-mentioned countries, thus contributing to strengthening regional integration (CEMAC/Nigeria).

4.1.7 In the area of energy, all the public and private sector operations were approved. The two on-going public projects (the Lom Pangar Dam and the Electricity Transport and Distribution Grid Upgrading and Extension Project - PRERETD) should, in the long term, help to increase available energy and the rate of access to electricity by the population and businesses, especially in rural areas. These two projects are intended to electrify 423 and 150 localities, respectively. The two PPP projects, namely the Dibamba thermal plant and the Kribi gas plant, have been fully implemented, helping to substantially raise the installed electricity capacity from 1 266 MW in 2010 to 1 561 MW in 2014. In addition, the country’s electrification rate has increased by 6 points, from 22% to 28%. The rural electrification rate has increased by 1.5%, from 3.5% to 5%, while the electricity access rate has risen by 4%, from 18% to 22%.

4.1.8 In connection with water and sanitation, the projects implemented have contributed to substantially reducing the number of floods per year in the project areas (from 15 in 2006 to 3 in 2011) and improving the living conditions of the population living along the canal constructed in Yaoundé. On the health front, the water-borne disease prevalence rate in Yaoundé has declined considerably. The malaria prevalence rate fell from 16.4% in 2005 to 8% in March 2012. The diarrhoea prevalence rate dropped from 3.8% to 2.4%, and that of typhoid fever from 5.4% to 2.8% over the same period. Specifically, the implementation of the PADY 1 project provided the opportunity to create 642 direct jobs, 23 of them for women, and 1 542 indirect jobs.


13

4.1.9 Under the second pillar, the Bank as TFP lead of the Public Finance Sector Committee (PFSC), played a key role in the conduct of high-level dialogue with the Government, which led to the adoption of a public finance modernization plan currently being implemented. Dialogue also contributed to the adoption of a public finance support partnership framework signed between the authorities and TFPs in 2012, under the Bank’s leadership. Land registration system operations aroused the interest of other TFPs and CSOs with regard to the facilitation of access to landed property, which is one of the main business environment challenges.

4.2 Key Lessons for the 2015-2020 CSP

4.2.1 An analysis of the 2010-2014 CSP helped to draw the following relevant lessons that will be useful during the formulation and implementation of the new 2015-2020 CSP:

Choice of pillars: in light of the maintenance of the strategic objectives of the 2010-2020 GESP whose outcomes should be strengthened to achieve emergence in 2035, the infrastructure gap and the need to further improve governance, it is agreed that priority should be given to the consolidation of the outcomes of the two pillars of the 2010-2014 CSP in order to achieve critical levels in the areas selected. However, to enable more inclusive growth, it is necessary to also give priority to rural infrastructure likely to have a catalytic impact on the development of the value chains of the agro-sylvo-pastoral and fisheries sectors. Moreover, given Cameroon’s attainment of "Blend Country" status in 2014, attention should be focused on private sector development in the structural economic transformation process. The instruments of the Bank’s new loan policy (partial risk guarantees) are expected to contribute to this endeavour.

Consolidating and building on sector interventions with a view to strengthening the inclusive nature of operations: in light of the huge investments already made with Bank support to densify the domestic road network and the inter-State corridors which have helped to open

up the production basins, the Bank must step up its intervention in rural development infrastructure as a means towards increasing, diversifying and processing of agricultural production.

Alignment and consistency of interventions with the new national budget framework: to strengthen the overall consistency of its interventions, and owing to the adoption of a programme budget process in replacement of the resource-based budget, the Bank must also strengthen the programmatic approach for its future infrastructure and governance operations. The aim is to adopt an approach based on medium-term expenditure frameworks (MTEFs) for the preparation of future Bank operations. Only operations included in sector MTEFs, which are supposed to have gone through all the maturing stages of the budgetary planning and programming chain, will be eligible for Bank financing.

V. BANK’S 2015 – 2020 STRATEGY IN CAMEROON

5.1 Rationale for Bank Strategy and Pillars

5.1.1 Rationale for Bank’s Intervention

5.1.1.1 Inadequate structuring infrastructure and low capacity, leading notably to inefficient public expenditure, and the continuing unfavourable business environment are the major challenges to the development of a modern, diversified and competitive economy. These challenges identified in Section 2.2.2 also impede the strengthening of trade and regional integration. In view of these constraints, the country has strengths and opportunities (see Section 2.2.3) that the Government can tap to achieve its ambitions of transforming Cameroon into an emerging economy by 2035.

5.1.1.2 Taking into account the strategic and operational lessons learned from the preceding strategy and country dialogue with the Government and TFPs, the 2015-2020 CSP will be hinged on the following principles:


14

Alignment with the 2010-2020 GESP, ten-year scheduling of Vision 2035, the Bank’s 2013-2022 Ten-Year Strategy and the Regional Integration Strategy Paper in Central Africa (RISP 2011-2015);

Enhancement of the impacts of past interventions under the 2010-2014 CSP in infrastructure and governance;

Strengthening of the leverage effect of Bank resources as part of the transition to "Blend Country" status through co-financing and PPPs;

Selectiveness of the thrust areas, taking into account synergy and complementarity with the other TFPs; and

Promotion of inclusive and green growth through: (i) energy options geared towards hydroelectricity, gas-fired thermal electricity, renewable energy sources (solar); ending heavy oil-based carbon emitting thermal electricity generation; and (ii) developing agricultural value chains with high job-creating and ICT potential to promote the financial inclusion of youths, especially in rural areas, as well as sustainable urban development options (Cameroon is one of the pilot countries selected by the Bank to implement its strategy in this connection).

5.1.2 Bank’s Strategic Concentration Pillars.

5.1.2.1 The strategic thrust proposed aims to diversify the country’s sources of economic growth to render it more inclusive, sustainable and, consequently, resilient to the impact of fluctuating oil and gas prices. It aligns with the strategic objectives of the Bank’s Ten-Year Strategy (2013-2022) with regard to inclusive growth and transition to green growth, as well as the structural transformation vision.

5.1.2.2 To enable the country to meet its major challenges (Section 2.2.2) and achieve the objectives of the 2010-2020 GESP, the Bank’s strategy will hinge on two pillars, namely: (i) Strengthen Infrastructure for Inclusive and Sustainable Growth; and (ii) Build Sector Governance for Effective and Sustainable Structuring Investment. The strategy was prepared using the participatory approach described in Annex 11.

Pillar 1: Strengthen Infrastructure for Inclusive and Sustainable Growth

5.1.2.3 The set objectives involve developing national agricultural and transport/ICT infrastructure, as well as regional energy projects. The goal is to reach the infrastructure critical threshold that promotes increased agricultural production and its processing, with a view to generating the irreversible dynamics that will increase value chains in the agri-food industry. Overall, the set objective is to step up the impact of previous interventions, enhance the competitiveness of non-extractive tradable goods and capture more regional market shares in the CEMAC/ECCAS zones and in Nigeria.

Pillar 2: Building Sector Governance for Effective and Sustainable Structuring Investment

5.1.2.4 The key objective is to strengthen the governance of the transport and energy30 sectors, which account for most of Government’s structuring investments and are also the Bank’s focus areas. Firstly, through targeted reforms, the aim is to support and make up for the weaknesses of the legal frameworks (institutional and regulatory) that will enable the sector public expenditure to be more efficient and ensure sustainable investment. Secondly, the achievement of the primordial objective mentioned above requires that special attention should be paid to strengthening the fiduciary aspects (procurement, financial information system and maturation of programmes).

5.1.2.5 Faced with the challenge of improving the business environment, and to ensure complementarity and selectiveness, the Bank will continue its support through dialogue with the other TFPs involved, including the World Bank, IMF, UNDP, EU (see Annex 9). The two PAMOCCA I and II projects on improvement of the land registration system and facilitation of access to land and titles will help the Bank to maintain its commitment, alongside the other partners. In addition, the Bank will continue dialogue with the State and the private sector within the framework of periodic meetings of the Cameroon Business Forum (CBF). Emphasis will be laid on the adoption of instruments already prepared to enhance the country’s attractiveness.

30 This will help the Bank, as leader of the infrastructure sector, to implement reforms

recommended by the Public Expenditure Review that it conducted in 2013 and which dealt with public finance, road transport and energy.


15

5.1.2.6 CODE members deemed as relevant the two pillars selected. During the presentation of the outline of the CSP pillars to CODE in accordance with the directives on the preparation of CSPs, Committee members commended the selectiveness and the strategic options proposed, the interdependence of the pillars and the pragmatic approach adopted for Bank interventions. Nonetheless, they requested that emphasis be laid on green growth, gender issues, analysis of pockets of fragility and the business climate.

Cross-cutting Aspects

5.1.2.7 The Bank will systematically take cross-cutting aspects into consideration, in order to facilitate the implementation of the strategy and the preparation of operations. This will involve promoting better streamlining of aspects relating to fragility, climate change, green growth, gender and youth employment in all Bank operations. An indicative list of studies is presented as Annex 6.

5.1.2.8 The Bank’s intervention on fragility aspects will align with the objectives of Government’s Emergency Plan. To address pockets of fragility in the northern regions and the East of Cameroon, the Bank awarded the country an emergency humanitarian grant on 13 January. AfDB (through its Field Office) and the Government decided on measures aimed at speeding up the implementation of operations already financed by the Bank and covering the North, Far North and East regions. These operations, which will have an impact on poverty reduction, seek especially to increase electricity supply, improve access to drinking water and sanitation, extend the road network and increase and diversify agricultural production. In this regard, the Bank and the other TFPs have initiated dialogue with the authorities to consider security measures allowing for the successful implementation of our activities in these pockets of fragility.

5.1.2.9 To further strengthen the mainstreaming of the gender and youth employment dimensions in Bank interventions, activities to support women’s economic empowerment will be implemented as part of Bank-financed operations. This approach is also an integral part of efforts to achieve greater inclusiveness. With ILO and UN WOMEN

support, CMFO will prepare a methodological Guide to gender and decent employment protection floor mainstreaming. This concern is further captured in the drive to promote agricultural value chains. Therefore, in its approach, the Bank will include a programme aimed at giving women and youths the resources to increase their income and improve their food security through profitable businesses in promising agro-pastoral sectors that offer viable employment opportunities in the rural area.

5.1.2.10 Lastly, all Bank operations will reflect green growth concerns. Over time, the 2015-20 CSP will help to bring households into better organized development schemes, capable of receiving support from innovative financing mechanisms. Furthermore, Bank interventions in infrastructure will create factors conducive to the development of sustainable economic initiatives, including industrial ones, thus reducing the pressure on natural resources and rendering the production systems more resilient. Specifically, energy sector investments (hydroelectric and gas-fired thermal plants) already contribute to strengthening the green character of growth, while ICT products and interventions in the agro-pastoral sector value chains will consolidate the inclusiveness of growth.

5.1.2.11 The Bank will also build endogenous capacity/knowledge for sustainable31 and inclusive urban development. As part of the implementation of the 2015-20 CSP, the Bank will step up synergy with some specialized agencies of the United Nations system for better mainstreaming of gender and youth employment issues into its operations. On-going initiatives under road programmes with UN Women, ILO, WHO and HCR will be extended to agricultural and energy projects.

5.1.3 Resources Available for Strategy Implementation

5.1.3.1 Cameroon attained “Blend Country” status on 1 July 2014. This reclassification reduces the resource constraint that the country faced as ADF country, and enables it to implement its vast major structuring works

31

The CSP will support the implementation of the Bank’s Urban Development

Programme in Africa, for which Cameroon has been selected as pilot country. This will serve as a backup for strengthening the land registration system being implemented in many towns.


16

programme, using the programme-based approach (Annex 6). Hence, by drawing from its successful co-financing experience, ADB resources will play a solid catalytic role by generating a leverage effect for the mobilisation of additional financing from some TFPs (co-financing) and/or the private sector (PPP). This upgrade will consolidate the country’s capacity to mobilize additional resources on the financial markets through securities/bond issue at the national, regional and international level32. However, the country’s capacity for investment maturation and implementation poses a major challenge for using these resources. Although macro-economic prospects are favourable and debt sustainability is maintained, the country assumes that it would take a three-year transition period before it is raised to “ADB Country” status. In this regard, various Bank reforms will aim to boost growth with a view to attaining the required per capita income threshold.

5.2 Outcomes and Targets

5.2.1 The expected outcome of the 2015-2020 CSP is the strengthening of the economic diversification drive based on the development of agricultural value chains as well as the substantial improvement of economic, financial and sector governance. This outcome will be promoted by implementing major structuring projects and economic and sector reform programmes that will help to: (i) ensure the transition from a subsistence agriculture model to a modern, second-generation, high-productivity, value-added and job-creating agriculture, through a proactive state policy; (ii) open up agricultural production basins to markets, improve the country’s productivity by rehabilitating and/or developing the transport, ICT and energy infrastructure network, with a view to stepping up external trade and consolidating regional integration; (iii) reinforce macro-economic stability by aligning the public finance management legislative and regulatory framework with community standards; and (iv) develop the private sector and deepen the financial sector to support economic diversification. ICT infrastructure will contribute to reducing telecommunication factor costs, improving public administration efficiency, facilitating the growth of financial inclusion 32 The Bank is currently considering a request to grant a partial exchange risk guarantee on Government’s Eurobond issue in dollar, equivalent to CFAF 750 billion.

through the emergence of e-banking, thus enhancing access to banking services and formalization of VSEs/SMEs.

5.2.2 To attain the above-mentioned strategic objectives, the 2015-20 CSP seeks to achieve the following impacts/outcomes:

Outcome 1 (Pillar 1) Develop agricultural value chains (AVCs) and diversify sources of growth33: the quality and stock of rural infrastructure are crucial for attracting private promoters wishing to invest in the development of agricultural value chains. To support the National Agricultural Investment Programme (PNIA) adopted in April 2014 and consolidate Cameroon’s role as a regional agricultural power, the Bank will contribute to financing community and/or private facilities required for growing agricultural sector value chains, building the capacity of actors/producers, improving inter-sector structuring, and supporting technological innovation through targeted assistance to IRAD for implementation of a national seed programme (coffee/cocoa, rubber, oil palm, maize, yam, cassava, banana, plantain, potato, sorghum, fry, etc.). Bank interventions will primarily target the major production basins situated along the inter-state corridors. It should be recalled that the Bank devoted close to 25% of its portfolio in 2014 for the construction of these corridors.

Outcome 2 (Pillar 1) Enhance competitiveness and increase regional trade: infrastructure quality and stock (transport, energy and ICT) are crucial for improving price competitiveness and necessary for strengthening trade as part of regional integration within the CEMAC/ECCAS zone and WAEMU through Nigeria. Thus, given its experience in the country and its new role as transport sector leader, the Bank will contribute to developing transport infrastructure capable of increasing access to national and regional markets. It will reinforce infrastructure connecting economic zones, particularly high-potential production basins, to markets within Cameroon and in the CEMAC/ECCAS sub-regional economic space, as well as the Nigerian market. ICT-related infrastructure to be deployed will contribute to significantly reducing the costs notably of telecommunication factors, while

33 The value chain approach poses challenges in terms of qualification/training. The

programmes financed by the Bank in coordination with other TFPs will benefit from the positive externalities of ongoing ADF projects that finance the training of youths in rural trades within the framework of the Debt Relief and Development Contract (C2D).


17

promoting the dissemination of farming methods, information on available agricultural stock and prices (as is the case in Kenya). It will be recalled that provisions have already been made for the installation of optical fibre along all roads financed by the Bank.

Outcome 1 (Pillar 2) Improve sector governance and enhance public expenditure effectiveness: the Bank has comparative advantages in dialogue on fiscal and fiduciary reforms after having been leader of the Public Finance Sector Committee for the past five years. Its intervention will be based on the conclusions and recommendations of public expenditure reviews conducted by the Bank. They will seek to consolidate growth through the improvement of the fiduciary framework and better transport and energy infrastructure management. The Bank will selectively support the strengthening of: (i) the financial information system; (ii) the budget preparation framework (preparation of sector MTEFs/maturation of programmes and projects); and (iii) the public procurement framework34 in line with community and Bank provisions, with a view to using national procedures for local competitive bidding (LCB). The national procurement framework has already been assessed (see Annex 7).

Regarding sector governance, the Bank will undertake more targeted actions in the form of institutional and regulatory framework reforms in the transport and energy sectors where it focuses most of its financing in Cameroon. The proposed governance sector measures will stem from the three public expenditure reviews conducted in 2014 covering energy, transport and public finance/financial information system. These actions seek to improve the maturity of draft budgets.

Outcome 2 (Pillar 2) Strengthen the strategic management of urban development: as part of the implementation of the Bank’s urban development strategy adopted in 2011, Cameroon was selected to host a pilot programme. Hence, the Bank will support a sustainable urban development pilot programme covering the cities of Yaoundé and Douala, as well as the major regional towns. It will promote the establishment and consolidation of urban development

34 The detailed analysis of the country’s fiduciary framework and the risk mitigation

measures are presented in Annex 7.

management tools comprising notions of sustainability.

5.2.3 Regional operations: Cameroon is included in the Regional Integration Strategy Paper for Central Africa (2011-2015 RISP), whose mid-term review was conducted in May 2013. As part of RISP implementation, Cameroon benefited from several interventions in the areas of regional transport, energy infrastructure and the environment. In light of the country’s economic weight within CEMAC, its energy potential (hydroelectric and gas-fired thermal electric) and its position as transit country for landlocked nations (Chad and CAR), the 2015-20 CSP will continue to lay emphasis on regional operations in the areas of transport, ICT, environmental protection and energy. Regionally, the Bank will pursue its support to the Government for the development of the country’s energy potential (hydroelectricity, gas-based thermal electricity, and national and regional electric grid interconnections, notably with Chad and CAR). The Bank will build the regional project coordination capacity of regional economic communities (REC) to coordinate regional projects.

5.2.4 Private sector and financial operations: the Bank has four on-going operations financed through the private window, representing approximately 20% of its portfolio. In line with the first pillar of the Ten-Year Strategy, the Bank will continue its support for private and financial sector development through operations with proven profitability, especially in the infrastructure sector. Furthermore, the Bank will strengthen its intervention in structuring projects within the PPP framework, especially in energy, the relevance and success of which were underscored in post-evaluations conducted by IDEV on Bank interventions over the 2004-2013 period.

5.2.5 In addition, the Bank will support the deepening of the financial market and financial inclusion, with a view to contributing to developing infrastructure and agricultural sector value chains. This will be done, among others, by using medium- and long-term innovative financing through sovereign and/or non-sovereign instruments under the new loan policy.

5.2.6 Under the 2015-2020 CSP, the Bank will strengthen its interventions aimed, among other things, at developing agri-


18

business and deepening the financial market, with a view to sustaining growth and rendering it more inclusive. The various instruments of the new loan policy, for instance lines of credit, partial guarantee mechanisms, shared risk funds and exchange risk coverage operations, will be used. Such operations will help to free resources that will enable the Government to pursue its development objectives as described in GESP and the Growth Acceleration Emergency Plan.

5.2.7 To implement the CSP, the Bank will execute operations described in the indicative lending programme (Annex 6) and the climate risk adaptation and mitigation actions (Annex 8).

5.3 CSP Financing Instruments

5.3.1 Various financing instruments will be prioritized. Structuring infrastructure will be financed through project loans or in the form of PPPs. A multi-sector reform support programme will help to support sector governance-based reforms (transport and energy, budget planning and procurement). In addition to these products, the Bank will use guarantees, proceeds from risk management and trade financing.

5.4 Monitoring and Evaluation

5.4.1 The monitoring and evaluation of the 2015-20 CSP implementation will rely on a three-tier mechanism.

Firstly, at the level of the 2010-2020 GESP: since the objectives of projects and programmes supported by the Bank within the CSP implementation framework are aligned with GESP, reports prepared by the GESP35 monitoring mechanisms as well as MPC will provide basic information that the Bank will use to monitor the implementation of both GESP and the CSP. To that end, drawing on lessons from the 2010-2014 CSP and the IDEV evaluation, the Government plans to strengthen various existing partnership frameworks to monitor GESP, IMF consultation missions, the Busan Commitments as well as the State-TFP thematic groups. The GESP mid-term review in 2015 will help to strengthen the

35 Primarily, this is the institutional framework for implementing and monitoring the

Government’s Employment Strategy. This institutional framework provides for a participatory approach and helps the State and its branches to perform the duty of main contracting authority.

monitoring framework. The Bank will make use of its membership of G8+6 to conduct high-level dialogue on GESP.

Secondly, the CSP results-based framework matrix (presented as Annex 10), will enable the Bank to monitor and evaluate the implementation of this strategy. A mid-term review of the strategy will be conducted in 2018.

Lastly, the monthly and quarterly country portfolio reviews between the Government and the Bank will allow for the operational monitoring of CSP implementation. In this regard, each project will also comprise a logical framework whose targets will seek to achieve the objectives of the strategy. A CSP mid-term review will be conducted in 2017.

5.5 Dialogue Issues

5.5.1 Dialogue with the Government will continue and intensify around some themes, based on analytical work. The themes include the transport and energy36 infrastructure37 management and regulatory framework, the implementation of the public finance38 modernization plan, the preparation of a sustainable urban development strategy and climate risk adaptation and mitigation measures (see Annex 8).

5.5.2 The strategy will support an analytical work programme. A study on Cameroon’s fragility is being finalised by ORTS Department and will help to identify ways and means of mitigating the related risks. Moreover, in support for the desired economic diversification through agricultural value chains (AVCs), a study on growth-bearing agricultural sectors will be conducted in association with AFD and the World Bank to deepen knowledge and support dialogue on value chain-related issues. The study will help to better target sectors and intervention areas within the framework of the first pillar (Pillar 1, Outcome 1). Furthermore, a methodological guide mainstreaming the gender dimension and protection floor for decent jobs will be prepared in collaboration with a number of United Nations system agencies. In addition, the Bank will

36 In this regard, it was agreed with the TFPs that in 2014 the Bank will be leader of the

infrastructure group, previously led by the EU. 37 Dialogue will focus on the implementation of the recommendations of two public

expenditure reviews conducted by the Bank in 2013/2014 in the road transport and electric energy sub-sectors.

38 Dialogue will focus on the implementation of the recommendations of the public expenditure review conducted by the Bank in 2013/2014 in the areas of public finance and the financial information system.


19

support the preparation of Cameroon’s agricultural and rural statistics strategic plan. It will be recalled that the two public expenditure reviews conducted by the Bank in 2014 in the energy and transport sectors will contribute to better maturation of investment programmes.

5.6 Risks and Mitigation Measures

5.6.1 Four internal and external risks are linked to the Bank’s strategy. Internally, these could include: (i) collapse of national political consensus and/or worsened security situation in the North; and (ii) abandonment of governance reforms. Externally, the risks are: (a) the collateral effects of regional crises (political and security); and (b) external economic and/or climate shocks39.

5.6.2 Faced with internal and external risks, mitigation measures have been taken. Internally, the main democratic institutions that guarantee political stability and the continuity of the State, including the Senate, have been established. The main opposition political parties are represented in Parliament. Regarding border security risks (CAR, North and Far North as well as in the Gulf of Guinea), the Government has taken measures to strengthen the security mechanism with the support of bilateral TFPs40, in conjunction with some neighbouring countries, in particular Nigeria and Chad. Moreover, the on-going implementation of the public finance modernization plan and the declaration of EITI compliance are signs of the strengthening of public finance management and the natural resource management framework. Externally, the option adopted in GESP to further diversify the economy helps to cushion the adverse effects of any external shocks and further promote inclusiveness, the creation of jobs for youths and income-generating activities (IGAs) for women.

VI. CONCLUSION AND RECOMMENDATION

6.1 Conclusion

6.1.1 The socio-economic situation continues to be stable despite regional security threats. Economic growth is strong although it falls below its potential and the target set by GESP. Medium-term economic

39 These shocks could result in a drop in the prices of raw materials, the persistence

and even worsening of the crisis in the Euro zone and the disruption of the agricultural production cycle owing to climatic hazards. These risks may weaken social cohesion and delay economic progress

40 Principally France, the United States and Spain.

prospects are favourable in the absence of external and/or internal shocks. The major challenge is to accelerate the implementation of judicious public policies that will help make the most of the growth potential and render the economy more inclusive. Meeting this challenge especially entails adopting a policy for diversifying the sources of growth, based primarily on the value chains of the agro-sylvo-pastoral and fisheries sectors as well as the other sectors. In this regard, it is crucial to develop structuring infrastructure to open up production basins and promote agricultural processing, for better alignment with the world economy and the creation of decent jobs for youths.

6.1.2 To ensure sustainable growth (lasting and less vulnerable to shocks), progress must be made with respect to governance. The proposed strategy gives priority to a selective approach based on national and regional operations that have a leverage effect on financing from other partners.

6.2 Recommendation

6.2.1 It is requested that the Boards of Directors consider and approve the Bank’s country strategy for Cameroon for the period 2015-20 as proposed in this document.

I

cmr

Indicators Unit 2000 2009 2010 2011 2012 2013 2014 (e)

National Accounts

NY.GNP.MKTP.CDGNI at Current Prices Million US $ 9 557 23 321 24 130 25 388 26 474 28 708 ...N

YGNI per Capita US$ 600 1 160 1 170 1 200 1 220 1 290 ...

NY.GDP.MKTP.CDGDP at Current Prices Million US $ 9 290 23 381 23 623 26 587 26 472 29 568 31 899

NY.GDP.MKTP.KDGDP at 2000 Constant prices Million US $ 9 290 12 454 12 865 13 392 14 008 14 779 15 569

NY.GDP.MKTP.KD.ZGReal GDP Growth Rate % 4,2 1,9 3,3 4,1 4,6 5,5 5,3

NY.GDP.PCAP.KD.ZGReal per Capita GDP Growth Rate % 1,5 -0,6 0,7 1,5 2,0 2,9 2,8N

EGross Domestic Investment % GDP 16,7 18,5 19,0 20,6 19,4 19,5 19,9

N

E Public Investment % GDP 2,8 2,2 2,2 2,4 2,3 2,3 2,3

N

E Private Investment % GDP 13,9 16,3 16,8 18,2 17,0 17,2 17,5

N

YGross National Savings % GDP 13,0 17,6 17,5 17,5 17,1 17,2 16,7

Prices and MoneyF

PInflation (CPI) % 0,9 3,0 1,3 2,9 2,4 2,1 2,2

PA.NUS.FCRFExchange Rate (Annual Average) local currency/US$ 712,0 472,2 495,3 471,9 510,5 494,0 493,9F

MMonetary Growth (M2) % 68,4 7,1 13,0 9,5 2,0 10,5 5,6

F

MMoney and Quasi Money as % of GDP % 21,5 30,3 32,3 33,0 31,2 31,9 31,3

Government FinanceG

CTotal Revenue and Grants % GDP 18,5 17,4 16,6 18,2 18,0 18,0 17,7

G

CTotal Expenditure and Net Lending % GDP 14,4 17,5 17,7 21,7 20,4 22,0 22,8

G

COverall Deficit (-) / Surplus (+) % GDP 4,4 -0,1 -1,1 -3,6 -2,4 -4,1 -5,2

External Sector

TG.WEO.TXG_R.ZGExports Volume Growth (Goods) % -0,7 -4,8 -0,9 -1,9 8,3 8,7 7,8

TG.WEO.TMG_R.ZGImports Volume Growth (Goods) % 14,9 -5,2 12,4 1,4 3,3 5,3 7,7

TG.WEO.TTT.ZGTerms of Trade Growth % 40,9 -12,7 14,3 -1,6 0,3 -3,5 0,0

BG.CAB.CDCurrent Account Balance Million US $ -61 -1 119 -800 -748 -870 -1 128 -1 339

BG.WEO.ADB.CAB.GDP.ZSCurrent Account Balance % GDP -0,6 -4,8 -3,4 -2,8 -3,3 -3,8 -4,2

FI.RES.TOTL.MOExternal Reserves months of imports 1,0 7,0 6,7 4,7 5,0 ... ...

Debt and Financial Flows

DT.WEO.TDS.PAI.EXP.ZSDebt Service % exports 23,6 4,1 3,1 2,1 2,5 3,0 3,7

DT.WEO.ADB.DOD.GDP.ZSExternal Debt % GDP 60,6 5,3 6,2 7,0 9,0 12,3 14,8

DC.DAC.NTF.CDNet Total Financial Flows Million US $ 218 770 -116 684 567 ... ...

DC.DAC.ODA.CDNet Official Development Assistance Million US $ 377 648 541 612 596 737 ...

DC.UNC.PVF.FDI.CDNet Foreign Direct Investment Million US $ 159 740 538 652 526 572 ...

Source : AfDB Statistics Department; IMF: World Economic Outlook, October 2014 and International Financial Statistics, October 2014;

AfDB Statistics Department: Development Data Portal Database, March 2015. United Nations: OECD, Reporting System Division.

Notes: … Data Not Available ( e ) Estimations Last Update: March 2015

CameroonSelected Macroeconomic Indicators

0,0

1,0

2,0

3,0

4,0

5,0

6,0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

%

Real GDP Growth Rate, 2003-2014

0

1

2

3

4

5

6

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Inflation (CPI),

2003-2014

-7,0

-6,0

-5,0

-4,0

-3,0

-2,0

-1,0

0,0

1,0

2,0

2 003

2 004

2 005

2 006

2 007

2 008

2 009

2 010

2 011

2 012

2 013

2 014

Current Account Balance as % of GDP,

2003-2014

Annex 1

II

Annex 2

Year Cameroon Africa

Develo-

ping

Countries

Develo-

ped

Countries

Basic Indicators

Area ( '000 Km²) 2014 475 30 067 80 386 53 939Total Population (millions) 2014 22,8 1 136,9 6,0 1,3Urban Population (% of Total) 2014 53,8 39,9 47,6 78,7Population Density (per Km²) 2014 48,0 37,8 73,3 24,3GNI per Capita (US $) 2013 1 290 2 310 4 168 39 812Labor Force Participation - Total (%) 2014 70,4 66,1 67,7 72,3Labor Force Participation - Female (%) 2014 45,7 42,8 52,9 65,1Gender -Related Dev elopment Index Value 2007-2013 0,872 0,801 0,506 0,792Human Dev elop. Index (Rank among 187 countries) 2013 152 ... ... ...Popul. Liv ing Below $ 1.25 a Day (% of Population)2008-2013 27,6 39,6 17,0 ...

Demographic Indicators

Population Grow th Rate - Total (%) 2014 2,5 2,5 1,3 0,4Population Grow th Rate - Urban (%) 2014 3,6 3,4 2,5 0,7Population < 15 y ears (%) 2014 42,8 40,8 28,2 17,0Population >= 65 y ears (%) 2014 3,2 3,5 6,3 16,3Dependency Ratio (%) 2014 77,5 62,4 54,3 50,4Sex Ratio (per 100 female) 2014 100,0 100,4 107,7 105,4Female Population 15-49 y ears (% of total population) 2014 23,8 24,0 26,0 23,0Life Ex pectancy at Birth - Total (y ears) 2014 55,5 59,6 69,2 79,3Life Ex pectancy at Birth - Female (y ears) 2014 56,7 60,7 71,2 82,3Crude Birth Rate (per 1,000) 2014 36,8 34,4 20,9 11,4Crude Death Rate (per 1,000) 2014 11,5 10,2 7,7 9,2Infant Mortality Rate (per 1,000) 2013 60,8 56,7 36,8 5,1Child Mortality Rate (per 1,000) 2013 94,5 84,0 50,2 6,1Total Fertility Rate (per w oman) 2014 4,7 4,6 2,6 1,7Maternal Mortality Rate (per 100,000) 2013 590,0 411,5 230,0 17,0Women Using Contraception (%) 2014 28,3 34,9 62,0 ...

Health & Nutrition Indicators

Phy sicians (per 100,000 people) 2004-2012 7,7 46,9 118,1 308,0Nurses (per 100,000 people)* 2004-2012 43,8 133,4 202,9 857,4Births attended by Trained Health Personnel (%) 2009-2012 63,6 50,6 67,7 ...Access to Safe Water (% of Population) 2012 74,1 67,2 87,2 99,2Healthy life ex pectancy at birth (y ears) 2012 48,0 51,3 57 69Access to Sanitation (% of Population) 2012 45,2 38,8 56,9 96,2Percent. of Adults (aged 15-49) Liv ing w ith HIV/AIDS 2013 4,3 3,7 1,2 ...Incidence of Tuberculosis (per 100,000) 2013 235,0 246,0 149,0 22,0Child Immunization Against Tuberculosis (%) 2013 82,0 84,3 90,0 ...Child Immunization Against Measles (%) 2013 83,0 76,0 82,7 93,9Underw eight Children (% of children under 5 y ears) 2005-2013 15,1 20,9 17,0 0,9Daily Calorie Supply per Capita 2011 2 586 2 618 2 335 3 503Public Ex penditure on Health (as % of GDP) 2013 1,8 2,7 3,1 7,3

Education Indicators

Gross Enrolment Ratio (%)

Primary School - Total 2011-2014 110,6 106,3 109,4 101,3 Primary School - Female 2011-2014 103,2 102,6 107,6 101,1 Secondary School - Total 2011-2014 50,4 54,3 69,0 100,2 Secondary School - Female 2011-2014 46,4 51,4 67,7 99,9Primary School Female Teaching Staff (% of Total) 2012-2014 51,2 45,1 58,1 81,6Adult literacy Rate - Total (%) 2006-2012 71,3 61,9 80,4 99,2Adult literacy Rate - Male (%) 2006-2012 78,3 70,2 85,9 99,3Adult literacy Rate - Female (%) 2006-2012 64,8 53,5 75,2 99,0Percentage of GDP Spent on Education 2009-2012 3,0 5,3 4,3 5,5

Environmental Indicators

Land Use (Arable Land as % of Total Land Area) 2012 13,1 8,8 11,8 9,2Agricultural Land (as % of land area) 2012 0,2 43,4 43,4 28,9Forest (As % of Land Area) 2012 41,2 22,1 28,3 34,9Per Capita CO2 Emissions (metric tons) 2012 0,3 1,1 3,0 11,6

Sources : AfDB Statistics Department Databases; World Bank: World Development Indicators; last update :

UNAIDS; UNSD; WHO, UNICEF, UNDP; Country Reports.

Note : n.a. : Not Applicable ; … : Data Not Available.

CameroonCOMPARATIVE SOCIO-ECONOMIC INDICATORS

juin 2015

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Infant Mortality Rate( Per 1000 )

Came roon Africa

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GNI Per Capita US $

Came roon Africa

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Population Growth Rate (%)

Cameroon Africa

01020304050607080

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Life Expectancy at Birth (years)

Came roon

Africa

III

Annex 3

Goal 1: Eradicate extreme poverty and hunger 19901 20002 20143

Employment to population ratio, 15+, total (% ) 64,0 66,4 67,4

Malnutrition prevalence, weight for age (% of children under 5) 17,8 16,6 15,1

Poverty headcount ratio at $1,25 a day (PPP) (% of population) 47,4 27,6 ...

Prevalence of undernourishment (% of population) 34,0 15,1 10,5

Goal 2: Achieve universal primary education

Literacy rate, youth female (% of females ages 15-24) ... 77,5 76,4

Literacy rate, adult total (% of people ages 15 and above) ... 70,7 71,3

Primary completion rate, total (% of relevant age group) 47,8 67,7 72,8

Total enrollment, primary (% net) 70,1 83,5 91,5

Goal 3: Promote gender equality and empower women

Proportion of seats held by women in national parliaments (% ) 5,6 13,9 31,1

Ratio of female to male primary enrollment 82,3 86,5 87,6

Ratio of female to male secondary enrollment 83,8 83,4 85,6

Goal 4: Reduce child mortality

Immunization, measles (% of children ages 12-23 months) 46,0 74,0 83,0

Mortality rate, infant (per 1,000 live births) 94,2 68,7 60,8

Mortality rate, under-5 (per 1,000) 154,2 108,9 94,5

Goal 5: Improve maternal health

Births attended by skilled health staff (% of total) 58,2 63,0 63,6

Contraceptive prevalence (% of women ages 15-49) 19,2 25,5 28,3

Maternal mortality ratio (modeled estimate, per 100,000 live births) 760,0 690,0 590,0

Goal 6: Combat HIV/AIDS, malaria, and other diseases

Incidence of tuberculosis (per 100,000 people) 295,0 271,0 235,0

Prevalence of HIV, female (% ages 15-24) ... ... 2,9

Prevalence of HIV, male (% ages 15-24) ... ... 1,2

Prevalence of HIV, total (% of population ages 15-49) 4,9 4,8 4,3

Goal 7: Ensure environmental sustainability

CO2 emissions (kg per PPP $ of GDP) 0,8 0,7 0,6

Improved sanitation facilities (% of population with access) 42,0 44,4 45,2

Improved water source (% of population with access) 60,7 71,0 74,1

Goal 8: Develop a global partnership for development

Net total ODA/OA per capita (current US$) 28,0 32,2 33,1

Internet users (per 1000 people) 1,3 38,4 57,0

Mobile cellular subscriptions (per 1000 people) 0,4 398,1 604,1

Telephone lines (per 1000 people) 6,1 21,7 34,0

Sources : ADB Statistics Department Databases; World Bank: World Development Indicators; last update :

UNAIDS; UNSD; WHO, UNICEF, WRI, UNDP; Country Reports,

Note : n,a, : Not Applicable ; … : Data Not Available,1 Latest year available in the period 1990-1999; 2 Latest year available in the period 2000-2009; 3 Latest year available in the period 2010-2014

June , 2015

CameroonPROGRESS TOWARD ACHIEVING THE MILLENNIUM DEVELOPMENT GOALS

0

100

200

300

400

1990 2000 2013

Incidence of tuberculosis (per 100,000 people)

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40,0

60,0

80,0

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Employment to population ratio, 15+, total (%)

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40,0

60,0

80,0

1990 2000 2012-13

Primary completion rate, total

0,0

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40,0

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1990 2000 2012-14

Ratio of female to male primary enrollment

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1990 2000 2013

Mortality rate, infant (per 1000 live births)

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1990 2000 2013

Mobile cellular subscriptions (per 1000 people)

0

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60

80

1990 2000 2012

Improved water source(%)

IV

Annex 4 Table 1: Bank Projects Portfolio in Cameroon as at 30 April 2015 (Amount in UA)

SECTORS PROJECTS Approval

Date

Signature

Date Implementation

Fulfilment of

Conditions

Precedent to

First

Disbursement

Date of First

Disbursement Closing Date

Bank Financing (in UA Million)

AfDB

Loan

ADF/NTF

Loan

ADF

Grant

Disbursement

Rate

Governance Cadastral Survey Project (PAMOCCA 1) 15/11/2010 5/1/2011 17/5/2011 10/2/2012 21/3/2012 31/12/2015 7.00 16.40%

Cadastral Survey Project (PAMOCCA 2) 12/17/2013 6/8/2014 10/29/2014 10/29/2014 3/30/2018 5.00 0%

Transport Kumba-Mamfe Road Project 21/11/2012 9/2/2013 16/9/2013 11/7/2013 1/27/2014 31/12/2017 47.26 17.30%

Batchenga-Lena Road Programme Phase 1 26/11/2014 28/3/2015 92.72 12.45 N/A

Water and Sanitation

Yaoundé Sanitation Project (PADY 2) 19/6/2013 9/11/2013 17/3/2014 10/1/2014 13/11/204 31/12/2018 20.99 2.84 0.72%

Semi-Urban DWSS Project 28/1/2009 13/5/2009 2/11/2009 28/5/2010 14/10/2010 31/12/2014 40.00 27.68%

Rural DWSS Project 12/5/2010 29/6/2010 14/4/2011 2/5/2011 21/9/2011 29/2/2016 10.00 4.29 59.60%

Energy

Project to Extend the Electricity Transmission and Distribution Networks (PREREDT)

15/9/2010 15/10/2010 20/4/2011 22/1/2013 2/25/2013 31/12/2015 31.64 8.89%

Lom Pamgar Hydroelectric Project 10/11/2011 18/1/2012 14/6/2012 14/12/2012 7/25/2013 31/12/2017 44.93 2.26%

Agriculture Rural Infrastructure Support - Grassfield 2 23/10/2013 16/12/2013 10/4/2014 9/15/2014 10/7/2014 31/12/2019 13.61 3.19 1.44%

Emergency Humanitarian Assistance to Refugees 13/1/2015 Staff Staff 13/7/2015 0.70 0%

Total National Public Sector Operations 123.04 232.88 11.02 14.13%

Private Sector

Shipyard and Industrial Engineering (CNIC) 12/12/2002 2/6/2003 29/4/2005 29/4/2005 13/5/2005 31/12/2014 32.01 41.67%

AES-SONEL Investment Programme 10/5/2006 8/12/2006 13/2/2007 15/2/2007 20/2/2007 31/12/2020 48.18 100%

Dimbamba Thermal Power Plant 28/4/2010 11/5/2011 11/5/2011 15/7/2011 22/7/2011 1/6/2023 17.88 100%

Kribi Thermal Power Plant 15/7/2011 22/12/2011 22/12/2011 27/8/2012 13/9/2012 15/11/2025 22.95 100%

Total Private Operations 121.03 83.70%

Regional

Environment Central Africa Elephant Conservation 22/7/2013 16/12/2013 11/11/2014 16/1/2015

31/12/2017 0.25 0%

Regional Energy Study on the Chad-Cameroon Electrical Grid Interconnection Project

7/10/2013 1/29/2014 3/9/2014 23/10/2014 12/15/2014 31/12/2016 1.25 15.75%

Regional Transport

Enugu. Bamenda-Enugu Corridor Transport Facilitation Programme

25/11/2008 13/5/2009 4/11/2009 1/12/2009 24/12/2009 31/6/2017 90.39 45.18%

Brazzaville-Yaoundé Corridor Transport Facilitation (Ketta-Djoum Road) Project

25/9/2009 11/1/2010 29/3/2010 13/2/2012 24/4/2012 31/12/2015 59.27 61.21%

Total Multinational Operations 151.16 53.56%

All Portfolio Operations 213.75 384.04 11.02 42.63%

V

Annex 4

Table 2: Rating of Ongoing National Public Sector Projects During the 2011-2014 Reviews

Projects Compliance with

Conditions Procurement Performance

Financial Performance

Activities and Works

Implementation Status

Impact on Development

Overall Rating Risk Rating

Multisector

PAMOCCA 2.50 2.00 2.00 2.00 2.09 2.00 2.10 NON PP / NON PPP

Water and Sanitation Sector

DWSSP-MSU 2.00 1.50 2.40 2.00 2.00 2.00 1.98 NON PP / NON PPP

DWSSP-MRU 2.66 2.50 2.20 2.25 2.36 3.00 2.50 NON PP / NON PPP

Energy Sector

PRERETD 2.33 2.50 2.60 2.00 2.36 2.00 2.30 NON PP / NON PPP

LOM PANGAR 3.00 2.00 2.00 2.00 2.00 3.00 2.33 NON PP / NON PPP

Transport Sector

NUMBA-BACHUO 3.00 3.00 2.75 2.00 2.55 3.00 255 NON PP / NON PPP

BATCHENGA STUDY 3.00 2.00 2.75 2.00 2.55 3.00 2.55 NON PP / NON PPP

Agricultural Sector

GRASSFIELD II n/a n/a n/a n/a n/a n/a n/a

Average 2014 Review 2.64 2.21 2.39 2.07 2.29 2.57 2.36

COMPARISON WITH PREVIOUS REVIEWS

Average 2013 Review 2.49 1.92 2.50 2.00 2.25 2.35 2.30

Average 2012 Review 2.15 2.15 2.14 1.93 1.92 2.38 2.15

Average 2011 Review 2.19 2.03 1.92 1.81 1.79 2.33 2.06

KEY: PP = Problem Project PPP = Potentially Problematic Project; Non PP = Non-problem Project Non PPP = Non-Potentially Problematic Project

Excellent Performance (2.2 to 3.0)

Average Performance (1.6 to 2.1)

Poor performance (0 to 1.5)

Source: SAP-PS and 2012 Portfolio Review Report. This table does not include the IRAD Support Project financed by NTF whose performance is satisfactory.

VI

Annex 5 2014-2015 Portfolio Performance Improvement Plan

Actions Envisaged Monitoring Indicator Expected Outcomes Body in Charge Deadline

Problem 1: Delays in project start-up

1.1 Maintain high-level dialogue with national authorities to accelerate the fulfilment of conditions precedent to effectiveness and first disbursement.

(i) Number of meetings held/letters concerning the fulfilment of conditions precedent sent to national authorities;

(ii) Average time elapsed between approval and first disbursement.

The average time elapsed between approval and first disbursement for active portfolio projects is reduced from 19 months (as at 7/31/2014) to 17 months (end-2014) and to 14 months (end-2015).

CMFO/GOVT 31/12/2015

Problem 2: Low mobilization of counterpart contributions and disbursement of the Bank’s commitments

2.1 Reflect in the budgetary framework circular letter Government’s commitments to provide counterpart contributions for jointly-funded projects requiring such contribution.

(i) Mention made in the 2016 Circular Letter issued in 2015;

(ii) Reminder of sector ministries to prioritize ongoing projects when providing counterpart contributions.

Counterpart contributions are mobilized on time.

GOVT 31/12/2015

2.2 Establish a mechanism to periodically monitor the mobilization of counterpart contributions (compensation and contribution to the financing of activities).

(i) Number of periodic reports on the status of counterpart contributions (forecast vs. disbursements);

(ii) Rate of mobilization of counterpart contributions.

The rate of mobilization of counterpart contributions for active portfolio projects is increased from 13% (end-2013) to 25% (end-2014) and 50% (end-2015).

GOVT/PIU 31/12/2015

2.3 Transmit the WPAB and Initial Disbursement Plan no later than 31 January and the same documents revised no later than 31 July.

Number of WPAB and Disbursement Plans transmitted

PIU 31/7/2015

2.4 Closely monitor the implementation of annual project disbursement plans during supervision missions.

(i) Number of active projects with an annual disbursement plan approved by the Bank;

(ii) Annual active portfolio disbursement rate.

All active portfolio projects have an annual disbursement plan approved by the Bank.

The annual disbursement rate of the active portfolio increased from 9.24% (end-2013) to 15% (end-2014) and 20% (end-2015).

PIU/CMFO 31/7/2015

Problem 3: Delays in the award and execution of project contracts

3.1 Transmit the Procurement Plan (PP) no later than 31 January.

(i) Number of active projects with a PP approved by the Bank.

100% of active projects have a PP approved by the Bank before 31/3/2014.

PIU 31/1/2015)

3.2 Closely monitor the implementation of annual project procurement plans during supervision missions.

(i) Number of active projects with a PP approved by the Bank;

(ii) Average time elapsed between the launching of an international competitive bid invitation

100% of active projects have a procurement plan approved by the Bank.

The average time elapsed between the launching of international competitive bid invitations and the signing of contracts for new projects does

PIU/CMFO/ SPC/MINMAP

31/12/2015

VII

Actions Envisaged Monitoring Indicator Expected Outcomes Body in Charge Deadline

and the signing of a contract for new projects. not exceed 9 months.

3.3 Comply with the deadlines set by the Bank for processing requests for no objection opinion.

Duration between the submission of the request for no objection opinion and the notification of the Bank’s no objection opinion.

The maximum period for notification of the Bank’s no objection opinion is 14 days for procurement documents (PP, BDs and RFPs) and 21 days for procurement decisions (bid analysis reports and supplementary agreements).

CMFO 31/12/2015

3.4 Increase the knowledge of project executing agencies and special tender boards on Bank procurement rules and procedures.

(i) Number of training sessions on procurement rules and procedures organized by the Bank.

Two training sessions are organized for project executing agencies and tender boards by the Bank.

CMFO 31/12/2015

3.5 Improve the time taken to process procurement files in public services.

(i) Number of projects with a special tender board whose members and a focal point are appointed at MINMAP;

(ii) The time taken to process procurement files is compliant with the one specified in the PP.

The average time elapsed between the launching of the international competitive bid invitations and the signing of contracts for new projects does not exceed 9 months.

PIU/ SPC/ MINMAP

31/12/2015

3.6 Reduce the time taken to review and validate enterprises’ detailed accounts in national public services.

(i) Average time elapsed between the submission of a detailed account by an enterprise and its receipt at the Bank’s Field Office for active portfolio projects.

The average time elapsed between the submission of a detailed account by an enterprise and its receipt at the Bank’s Field Office does not exceed 45 days.

GOV’T/PIU

31/12/2015

Problem 4: Delays in the deployment of financial management tools

4.1 Prepare a standard procedures manual for Bank-funded projects in Cameroon and install financial management software at the start-up of new projects.

(i) Letter of transmittal of standard procedures manual to the Bank;

(ii) Installation and use of management software by the PIU.

All new projects have a procedures manual at start-up.

All new projects have financial management software at start-up.

GOV’T/PIU

31/12/2014.

4.2 Closely monitor financial management reports during supervision missions.

(i) Number of project audit and financial monitoring reports submitted to the Bank on time.

All active projects submit annual audit and financial monitoring reports on time.

PIU 30/6/2015.

4.3 Build the capacity of project executing agencies in project financial management.

(i) Number of training sessions on financial management rules and procedures organized by the Bank.

Two training sessions are organized for project executing agencies by the Bank.

CMFO 31/12/2015

Problem 5: Poor communication on projects

5.1 Produce media resources on Bank-funded projects in Cameroon.

Number of documentaries and brochures produced.

One documentary on the Bank’s achievements in Cameroon is produced each year.

One brochure on the Bank’s activities in Cameroon is produced every two years.

CMFO/PIU 31/12/2015

31/12/2015

VIII

Annex 6

Indicative Lending Programme Over the 2015-2020 Period

(Amount in UA Million)

These amounts are indicative and depend on the country’s commitment capacity

Year Sector/ Dept.

Project Title ADF AfDB AGTF Co-

financing Total Project

Cost

NATIONAL PROGRAMME LOAN OPERATIONS (in close coordination with the AFD, BDEAC, World Bank, JICA, China/AGTF, IDB, EU, GIZ, SCAC, UNDP, ILO, FAO, UN Women, etc.)


2015 OSAN 1. Agricultural Value Chains Development Programme

(AVC-DP) - Phase I

75.00 75.00

2015 OITC 2. Transport Sector Programme phase II: Yaoundé-Bafoussam-Bamenda Road Rehabilitation

120.00 70.00 190.00

2015 OITC 3. Central African Backbone 29.37 29.37

2015 OFSD/FTRY 4. Partial Risk Guarantee Project 400.00 400.00

2016 OITC/OPSM 5. Kribi Port Project - Phase II 160.00 150.00 310.00

2016 OSAN 6. Livestock-Fishery Value Chains Development

Programme (LFVC-DP) - Phase I 12.48 50.00 62.48

2016 OITC 7. Urban Development Programme - Phase I 5.32 120.00 125.32

2016 OFSD/FTRY 8. Partial Risk Guarantee Project/Electricity Generation

Project 50.00 50.00

2017 OITC 9. Transport Sector Programme - Phase III 5.52 150.00 57.63 197.26 410.41

2018 OITC/OPSM 10. Limbe Deepwater Port 100.00 200.00 300.00

2018 OITC/OPSM 11. Cameroon Shipyard and Industrial Engineering

Limited - Phase II 75.00 180.00 255.00

2019 OSAN 12. Agricultural Value Chains Development Programme

(AVC-DP) - Phase II 75.00 75.00

Pillar 2: Strengthen Sector Governance for Effectiveness and Sustainability of Structuring Investments

2015 OSGE 13. Public Expenditure Effectiveness Improvement Support Programme

15.00 15.00

2019 OSGE 14. Public Expenditure Effectiveness Improvement Support Programme

12.96 17.04 50.00 80.00

TOTAL NATIONAL 51.28 1 421.41 57.63 847.26 2 377.58

REGIONAL PROGRAMME LOAN OPERATIONS

(in close coordination with the AFD, BDEAC, World Bank, JICA, China/AGTF, IDB, EU, GIZ, SCAC, UNDP, ILO, FAO, UN Women, etc.)


2015 OITC 1. Chad-Cameroon Railway Feasibility Study 2.00 2.00 4.00

2015 OITC 2. Ketta-Djoum Road Project - Phase 2 (Cameroon-

Congo) 46.50 75.54 122.04

2017 ONEC 3. Chad-Cameroon Electrical Grid Interconnection

Project 19.10 120.00 150.00 289.10

2018 OITC 4. Cameroon-REG Regional Project: Bridge Over River

Ntem 3.40 32.00 109.00 144.4

2019 OITC/OPSM 5. Chad-Cameroon Railway Line Development Project

250.00 350.00 600.00

TOTAL REGIONAL 24.50 448.50 686.54 1 1159.54

TOTAL 2015 - 2019 NATIONAL AND REGIONAL OPERATIONS 75.78 1 869.91 57.63 1 533.80 3 537.12

NON-LENDING ACTIVITIES (in close coordination with FAO, ILO, UN Women, UNDP, UNIDO, etc.)

2015 ORTS 1. Study on Factors of Fragility in Cameroon

2016 EASTA 2. Design of Cameroon’s Agricultural and Rural Statistics Strategic Plan (PSSAR)

2016 OSHD 3. Preparation of the Methodological Guide on the Mainstreaming of the Gender Dimension and the Decent Job

Protection Floor

IX

Indicative Lending Programme Over the 2015-2020 Period

(Amount in UA Million)

These amounts are indicative and depend on the country’s commitment capacity

Year Sector/ Dept.

Project Title ADF AfDB AGTF Co-

financing Total Project

Cost

2017 OSAN 4. Study on Agricultural Growth Sectors

ADF = ADF Window AfDB = AfDB Window RB = Regional Budget

X

Annex 7

Bank’s Fiduciary Strategy in Cameroon

A- BANK’S PROCUREMENT STRATEGY

1 Legal and Regulatory Framework: the Cameroon Public Contracts Code in force was established in September 2004 (Decree No. 2004/2-75). It lays down rules for the award, execution and control of public contracts. The review of this Code by the Bank has led to the conclusion that Cameroon’s procedures for procurement through local competitive bidding are generally consistent with the Bank’s procurement rules and procedures, despite differences regarding the Bank’s fiduciary requirements. To strengthen this system and align the Public Contracts Code with the new institutional framework put in place in 2012, the Government of Cameroon embarked on the revision of the public procurement legal framework. The Bank is prepared to support the Government in the revision of the Public Contracts Code to help to overcome the weaknesses identified by the Bank and to align the country’s procurement procedures with internationally accepted standards and practices. Pending the revision of the Code, the Bank plans to use, through a letter of understanding, national procurement procedures as well as SBDs within the framework of local competitive bid invitations for Bank-funded projects. 2. Institutional Framework: the public procurement institutional framework is based on three presidential decrees, namely: (i) Decree No. 2012/74 of 8 March 2012 organising the Ministry of Public Contracts (MINMAP); (ii) Decree No. 2012/74 of 8 March 2012 establishing and laying down the organization and operation of public tenders boards; and (iii) Decree No. 2012/76 of 8 March 2012 amending and supplementing certain provisions of Decree No. 2001/48 of 23 February 2001 establishing and laying down the organization and operation of the Public Contracts Regulatory Agency. Through this new institutional framework, the Government of Cameroon seeks to enhance the efficiency of the procurement process and increase the budget execution level, while strengthening the transparency and integrity of the system. Within this organizational framework, MINMAP is the central element of the public procurement system in which several responsibilities -that are not always compatible - are centralized. These include notably: (a) the control of the contracts awarded by clients; (b) the award of contracts above the threshold of clients; (c) the signing of contracts as the contracting authority; (d) the control of contract execution; (e) the initiation of public procurement reforms and policies; and (f) the management of remedies. Although it is early to draw conclusions as this new institutional framework has just been established, the following challenges can be retained: (i) the centralization of functions which can affect the integrity of the public procurement system; (ii) entrusting less responsibility to clients regarding the signing of contracts; (iii) MINMAP is both judge and party in the system of remedies; and (iv) the lack of clarity in MINMAP’s role with respect to ARMP concerning the initiation of procurement policies. It is necessary for the Bank to carry on dialogue on the public procurement reform so as to support the Government in optimizing the existing institutional framework. 3 Management Capacity: to implement this new institutional framework, MINMAP recruited hundreds of civil servants to perform various procurement and contract execution control functions. Although this initiative is commendable as it will help to establish a corps of public procurement professionals, it is necessary to review it so as to promote qualitative capacity building. The concentration of capacity and powers within MINMAP may bring about efficiency in the short term, but the approach cannot be efficient and dynamic in the long run. It would rather be appropriate to build the capacity of clients to enable them to assume and fully play their role in the procurement process. To that end, the ongoing revision of the Public Contracts Code should be an opportunity to establish checks and balances in the functions of various public procurement actors (e.g. clients, MINMAP, ARMP, etc.) in order to enhance the integrity of the public procurement framework. The revision of the Code and the institutional framework will include the design of a development strategy and capacity building to revitalize Cameroon’s public procurement system. Lastly, it will be useful to establish a public procurement information system to obtain reliable data, with a view to helping assess the efficiency and performance of the procurement process.

4. System Integrity and Transparency: the quality of integrity of a procurement system is mainly based on checks and balances in the functions provided for in its institutional framework. There seems to be no optimum checks and balances in the functions carried out by MINMAP and ARMP. In addition, the ex-ante control of compliance or regularity of procedures concerning contracts within MINMAP’s threshold does

XI

not seem to be properly carried out. Furthermore, audits are not carried out within reasonable timeframes

(the last audit dates back to 2010). The optimization of this institutional framework should enable ARMP to better perform its regulatory functions so as to fully play its role in initiating public procurement policies, carrying out independent audits and building capacity. Lastly, due to its central role in the execution and control of public procurement, MINMAP does not seem to adequately guarantee the independent management of remedies. Disputes would be better managed by ARMP or another independent public procurement control body. Comprehensive Action Plan (CAP) for the Improvement of National Procurement Procedures

The following provisions, which differ from those contained in Bank Rules of Procedure for Procurement of Goods and Works (May 2008 edition, revised in July 2012) and national procurement legislation, would not be applied for procurement financed by the Bank when national competitive bidding is envisaged.

Proposed Comprehensive Action Plan (CAP)

Areas of differences identified in the Borrower’s legal and regulatory framework and SBDs

Changes to be reflected in SBDs to align them with Bank Rules of Procedure

I. Instructions to Bidders (ITB)

A. Principle of Eligibility

1. Exclusion of enterprises not governed by Cameroonian law from participating in local competitive bid invitations

Apply the provisions of Clause 3.4 of Bank Rules of Procedure to enable foreign bidders to participate in LCBs

2. SBDs do not encourage the participation of public enterprises in LCBs

Apply the provisions of Clause 1.8 (c) of Bank Rules of Procedure to enable public enterprises to participate in LCBs if they can ascertain that: (i) they enjoy legal and financial autonomy; (ii) they operate under rules of commercial law; and (iii) they do not depend on the Borrower or Sub-borrower

3. The requirement for foreign business groups to submit their bids together with local enterprises

Lift the requirement for foreign bidders to form groups with local enterprises (Clause 1.10 of Bank Rules of Procedure )

B. Principle of Equity

4. SBDs provide for the application of preferential margins based on nationality

Preferential margins are not applicable to LCBs (Clause 1.3 of Bank Rules of Procedure)

C. Principle of Transparency

5. Extension of the period of bid validity without exceptional justification

Provide for the extension of the period of bid validity if exceptional circumstances so justify (Clause 2.57 of Bank Rules of Procedure )

Areas of differences identified in the Borrower’s legal and regulatory framework and SBDs

Changes to be reflected in SBDs to align them with Bank Rules of Procedure

II. General Contract Conditions (GCC)

D. Principle of Transparency

6. Suspension of loan Provide for the suspension of the loan by the Bank (Clause 1.2 of Bank Rules of Procedure)

7. Inspection and Auditing Provide for inspection and auditing by the Bank (Clause 1.11 of Bank Rules of Procedure)

8. Fraud and Corruption

Provide for and insert the F&C Clause in the GCC of SBDs for works and supply of goods (Clause 1.14 of Bank Rules of Procedure).

E. Principle of Equity

9. Eligibility Include the clause on eligibility in the GCC of SBDs for works and supply of goods (Clause 1.6 of Bank Rules of Procedure )

F. Principle of Efficiency

10. Risks borne by the Client and Contractor Revise the SBDs for works and provide for provisions governing contract execution (Clause 2.38 of Bank Rules of Procedure )

13. Nature of labour The prohibition of forced or compulsory labour and that which is harmful to children, and organizations representing workers.

14. Force Majeure Include the clauses on force majeure in the GCC of SBDs of works and supply of goods (Clause 2.42 of Bank Rules of Procedure ).

III. Procurement Process

15. Submission of bids Restriction of means of submitting bids (only in hard copy)

Apply the provisions of Clause 2.44 of Bank Rules of Procedure allowing for the submission of bids by mail or in person.

16. Opening of bids Rejection of bids during bid opening save for those received after the deadline

No rejection of bids during bid opening save for those received after the deadline, in accordance with Clause 2.45 of Bank Rules of Procedure.

XII

17. Bid assessment (a) Weighted evaluation of bids for the

procurement of goods and works (b) (i) Confusion between assessment and

qualification criteria (ii) Absence of post-qualification

Provide for the binary evaluation of bids for the procurement of goods and works (Clause 2.48 of Bank Rules of Procedure).

Apply the provisions of Clauses 2.49, 2.50, 2.52 and 2.58 of Bank Rules of Procedure to clarify the application of eligibility, compliance, assessment and qualification criteria.

XIII

B- BANK’S FINANCIAL MANAGEMENT STRATEGY

Pillars Indicators Risk Factors Initial Risk Mitigation Measures Residual

Risk

1. Programming/Planning and Budgeting

Credibility PI 1-4

Completeness PI 5-7

Transparency PI 8-10

Policy-based budgeting PI 11-12

Efficiency (Predictability, control of execution) PI13-21

Illegibility of the programme budget due to absence of sector strategies that are aligned with GESP

Investment projects do not meet maturity and technical preparation criteria

Low level of implementation of the public investment budget

Low level of ex-ante and ex-post control

Unrealistic budget

Lack of budget execution manual

Unsystematic alignment of budget estimates with sector strategies

No control of the expenditure of regional and local authorities and semi-public enterprises

S

Ongoing or planned measures

Unify budgetary functions

Establish a single manual for the PPBM chain

Enhance the effectiveness and efficiency of the expenditure chain to reduce exceptional remedies

Finalize the National Plan for the Award of Public Contracts under the Investment Budget in a timely manner

Prepare and align the remaining sector strategies with GESP

Align budget expenditure with 0 to 3-year sector strategies in line with the programme budget

Strengthen PIB execution control

Establish an integrated computerized PFM system in line with CEMAC Directives

Operationalize the single taxpayer identification number

S

2. Cash Management and Flow of Funds

PI-16-18 Risk of uncertainty about the availability of financial resources allocated to projects/programmes and their use for the intended purposes, and the capacity of the Treasury to carry out complex financial transactions.

Delayed and poor mobilization of counterpart contributions for projects and programmes financed by TFPs

S Systematize the link between budget, treasury, taxation and customs applications

Operationalize a mechanism for monitoring and evaluating public establishments and regional and local authorities

Single treasury account for public establishments, regional and local authorities and some agencies

A

3. Accounting and Financial Reporting

PI 22-25 Existence of several non-integrated systems and applications

Long delays in preparing and ensuring the consistency of accounting and financial reports;

The accounting standards applied do not

H Finalize the preparation of General Public Accounting Regulations

Operationalize the new accounting system and ensure transition to accrual accounting

Consolidate accounts and strengthen accounting

S

XIV

Pillars Indicators Risk Factors Initial Risk Mitigation Measures Residual

Risk

comply with IPSAS which are adapted to the programme budget

The trial balance of the Treasury is produced directly using the computerized system

4. Internal Control and Internal Auditing

Efficiency (predictability and control of the execution) of the budget PI 13-21

Inadequate internal audit scope and use of an approach not based on risk

External financing is not subject to control by the existing audit bodies

Absence of a system for collecting information from primary service delivery units

Lack of monitoring capacity and budgetary control

H Establish a platform for coordination/consultation between the main control bodies to further clarify the activities of various control bodies; help to redefine certain missions and ensure their complementarity.

Build the institutional and technical capacity of audit bodies (IGF, Audit Bench, CONSUPE)

Involve control bodies in the supervision and internal audit of projects financed by TFPs.

S

5. External Auditing/ External Control/ Corruption

Review PI 26-28

Extent of corruption

Prevention and control

The audit reports of public entities are not prepared on time

Inadequate external audit scope and use of an approach not based on risk

Limited monitoring and control by Parliament

External financing is not subject to control by existing audit bodies

Absence of a system for monitoring the implementation of inspection and audit recommendations

Corruption Perceptions Index

Lack of a national anti-corruption and fraud or good governance strategy

Lack of transparency in project implementation

Poor knowledge of the Bank’s Anti-Corruption Strategy (IACD)

E Establish an autonomous financial jurisdiction (Audit Bench)

Pass the anti-corruption law in Parliament

Apply Section 66 of the Constitution on assets declaration

Build the institutional and technical capacity of NAFI, CONAC, CONSUPE and the Audit Bench

Raise awareness and use existing Bank mechanisms (audit review, penalty mechanisms, etc.)

Communicate audit reports to the public in accordance with the Bank’s Information Disclosure Policy

Ensure the auditing of programmes by the SAI

S

Overall assessment of residual fiduciary risk Substantial

XV

Annex 8

Environment-, Climate Change- and Green Growth-related Issues

I. Background: Climate Change Situation in Cameroon

Cameroon is also renowned for its biophysical and social diversity. Cameroon is considered to be a high forest cover country, and these forests provide an important source of livelihoods, ecosystem services. Amongst the Congo Basin countries, Cameroon holds the fourth largest amount of dense tropical forest, with around 42% of the total land area (equivalent to roughly 20 million ha) covered in forest. The estimated annual deforestation rate ranges between 0.06% - 0.2%, the latter placing Cameroon amongst the highest among Congo Basin countries. Although the country has historically low deforestation rates, it is increasingly hypothesized that Cameroon, and the Congo Basin in general, may soon experience higher rates. This is due to increasing international and national investments in agro-business, especially in oil palm plantations, mineral extraction, and road development in forested areas. Recent infrastructure developments in hydro-dams and deep-sea ports also places significant pressure on forests.

The vast majority of the population of Cameroon still use the fuelwood harvested without regard to its renewal, and burnt in unhygienic conditions. LPG (cylinders) is used very little in urban areas, while it represents the substitution product to the most appropriate charcoal. Peri-urban electrification is mostly poor, and rural electrification has needs to step up on a significant scale. Although Cameroon benefited from significant revenues from oil production in recent years, poverty and unemployment remain widespread, because little opportunities are generated for the non-oil sector and the failure of the energy supply for the facilitation of the creation of wealth. This growth is also hampered by structural obstacles, including insufficient and dilapidated infrastructure where they exist.

National Level Policies and Strategic Documents Cameroon submitted its First National Communication in 2005, under the direction of the Ministry of Environment and Forests. Today, the Government of Cameroon aims to establish a country-wide approach to adaptation that would particularly test adaptation measures in the different eco-zones, taking a poverty reduction focus and integrating gender-sensitive approaches. The government in 2009 decreed to establish a Climate Change Observatory but is not operational yet, which is mandated to: Create an inventory of national greenhouse gas emissions and adaptation measures; Put into place an online information system and database on climate change, Design sector projects addressing priority actions for climate change prevention, mitigation and adaptation; and Evaluate the impacts and policies associated with adaptation and mitigation. Climate change adaptation and mitigation considerations have also been integrated into the country’s National Plan for Environmental Management (Plan national de gestion de l’environnement, PNGE). Greenhouse gas emissions have been designated a source of air pollution under the PNGE, to be reduced accordingly, and coastal zone management has been identified as a central component of the Plan. With Cameroon’s high vulnerability to sea level rise, coastal adaptation strategies will be included under the plan.

II. Challenges and Opportunities

Adaptation Needs and Priorities Given the projected changes in climate, Cameroon has identified a number of key vulnerabilities for two of its regions and for the health of its people. Concerns within its coastal zones include the potential for sea level rise to adversely affect mangrove forests by causing flooding, coastal erosion, sedimentation, and increased salinity. Along with the change in temperatures, this process could change the mangrove ecosystem, and the flora and fauna contained within it and by extension affect the local shrimp fisheries. Sea level rise is also expected to cause saltwater to intrude the Dibamba and Wouri rivers, and into coastal aquifers, negatively impacting agriculture industries. Coastal infrastructure is also at risk. The Douala airport, due to its position at low altitude, could be threatened, particularly with the loss of mangrove forest protection. As well, there is the potential for increased sedimentation at Douala’s port. Overall, Cameroon estimated in its 2005 National Communication that its coastal industrial properties were at risk of experiencing up to 2.74 billion CFA in damages due to climate change by 2100. Agriculture and livestock production will be most affected by any future changes in temperature, with agriculture production projected to decrease by between 10 and 25 per cent depending on the warming scenario. Climate change could bring about potential increases in the incidence of malaria (due to more heavy rainfall events) and the threat of cholera (due to greater flood risk). More positively, there is the potential for a decrease in the incidence of meningitis due to the decline in the length of the dry season (with which meningitis is typically associated).

XVI

Current Adaptation Action In order to reduce the vulnerability of communities, property and ecosystems to climate risks, Cameroon has initiated the process of developing a National Adaptation Plan for Climate Change (NAPCC). This tool is to facilitate the integration of climate change adaptation policies in the short, medium and long term, within the national development planning system. Cameroon has several regional and global adaptation activities underway which focus on covering forests, water, coastal zones, agriculture, energy and natural resource management. They are designed in terms of research, capacity building, knowledge sharing, awareness raising, vulnerability assessment, policy formation and community based adaptation projects.

III. Institutional and Regulatory Reforms

The overall responsibility for environment and climate change lies with the Ministry of Environment, Nature Protection and Sustainable Development (MINEPDED) which is responsible for the implementation of the REDD+ Strategy. There is also a ministry on forest (MINOF) with some overlap between the two ministries. No regulatory reforms were noted other than the setting up of the National Climate Change Observatory (ONACC) which is not yet functional.

IV. Proposed Bank Interventions Below are some key areas for potential assistance from the Bank:

1. In light of plethora of climate change activities spread out among various institutions and funded by various donors, there is a dire need for the Country to develop its overarching Climate Change Strategy. This should be done in collaboration with other partners (UNDP, UNEP, JICA, EU, IUCN, WWF, etc.) and can be best achieved through the support of the existing donor coordination platform by strengthening the role of MINEPDED by making it a truly cross-cutting administration body with competences in climate change in particular and in environment in general.

2. Specific to REDD+, assist MINEPDED, which in the process of developing country’s REDD strategy to accomplish the following key activities primarily for purpose of efficiency:

Support preliminary studies to provide required information for national REDD strategy e.g. studies on socio economic potentials to reduce gas emissions, different REDD strategic options, opportunity, etc.

Development and implementation of pilot REDD projects in priority ecological zones (forests, mangroves, mountain, savannahs, etc.)

Assistance to ongoing MVR studies carried out in collaboration with FAO, CIFOR, etc.

XVII

Matrix of

Donors in

Cameroon

2014

EU ** ** ** ** ** ** ** ** ** ** ** ** ** ** 4

Germany ** ** ** ** ** ** ** ** 4

Belgium

Denmark

Spain

France-AFD

France-SCAC

Italy

Luxembourg

United Kingdom ** ** ** ** ** ** ** ** ** ** 7

Other Bilateral Partners

Canada

United States

Japan ** ** ** ** ** ** ** ** ** ** 6

Switzerland

Multilateral Partners

IAEA

AfDB ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** 5

World Bank ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** ** 7

BDEAC

ECA

FAO

UNCDF

IFAD ** ** ** 1

IMF ** ** ** ** ** 1

UNFPA

OCHA/CERF

WHO ** ** ** ** 1

UNAIDS

WFP

UNDP ** ** ** ** ** ** ** ** ** ** ** ** 5

UNESCO

UNICEF

UNIFEM

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Areas of Intervention by Cameroon's Development Partners in 2014

EDUCATION SECTOR HEALTH SECTOR GOVERNANCE SECTOR INFRASTRUCTURE SECTOR INDUSTRY AND SERVICES SECTOR RURAL SECTOR SOCIAL SECTOR

Source: Provisional Mapping Report/Labour Division** = Active TFP

Annex 9

XVIII

Annex 10

2015-20 CSP Indicative Results-based Framework

GESP 2010-2020 Strategic Objectives

Constraints on the Attainment of GESP 2010-2020 Objectives

Final Outcomes Final Outputs Mid-Term Outcomes Mid-term Outputs Indicative Programme of New and Ongoing Activities during the CSP

2015-2020 Period (Scheduled for the end of the strategy in 2020) (Scheduled for 2017)

CSP 2015-2020 Pillar 1 : Strengthen Infrastructure for Inclusive and Sustainable Growth

Thrusts 1 and 2: Growth and Job-creation Strategies

(i) Outcome 1 (Pillar 1): Develop agricultural value chains and diversify sources of growth

Agriculture

1. Isolation of basins, inaccessibility of markets and low incomes of the workforce in the agricultural sector

10 production basins are accessible

The income of rural populations, particularly women, increases from 20% to 30%

800 kilometres of roads are built and/or maintained

100% of the feeder roads and main roads retained under various projects are completed

4 production basins are accessible

The income of rural populations, particularly women, rises by 10%

300 kilometres of feeder roads are built and/or maintained

30% of feeder roads and main roads are completed

New projects

• Agricultural Value Chains Development Project Phase I (CVA-PD-1)

• Agricultural Value Chains Development Project Phase II (PD-CVA-2)

Ongoing projects

• Grassfield II

2. Low level of processing of agricultural raw materials

6 agricultural raw materials are processed locally

1 coffee roasting unit, 4 palm oil extraction units and 1 dairy are operational

The quantity of products processed is increased by [...]% compared to 2014

Agreements have been signed with operators for the setting up of coffee, palm oil, wood, plantain, cassava, cocoa and milk processing units

3 units are effectively set up and operationalized

The quantity of products processed is increased by at least [...]% compared with 2014

(ii) Outcome 2 (Pillar 1): Improve competitiveness and increase regional trade

TRANSPORT/ICT

1. Inadequate and poor state of the national road network

The national road network is strengthened and regional trade in the CEMAC zone is increased

429 kilometres of roads/urban roads are tarred; 431 kilometres of feeder roads are developed in the South-West and Adamawa Regions and in Mbam and Kim Division

2 bridges are built on the Cameroon-Nigeria and Cameroon-Equatorial Guinea borders

2 border posts are built on the Cameroon-Nigeria and the Cameroon-Chad borders

The length of tarred roads is increased by 5% from 4 200 kilometres to 4 300 kilometres and regional trade by 10%

At least 100 kilometres of roads/urban roads are tarred and 200 kilometres of feeder roads are developed in the South-West and Adamawa Regions and in Mbam and Kim Division

1 border post is built on the Cameroon-Chad border and Yaoundé is linked to Brazzaville and N’Djamena

New projects

• Rehabilitation of the Yaoundé-Bafoussam-Bamenda road

• National Urban Development Support Programme

• Transport Sector Support Programme – Phase II

• The final design study of the bridge on the Cameroon-Nigeria border

• Feasibility study of the Chad-Cameroon railway line

• Project to develop the Chad-Cameroon rail link

• Ketta-Djoum Road Project -

2. Poor state of cross-border backhaul links between countries of the sub-region and low level of traffic on inter-state road corridors

30% of the regional road network and cross-border backhaul links is improved and the Study of the Chad-Cameroon Railway is carried out

Road networks are developed, including: 62 kilometres of road between Mamfe and Ekok; 184 kilometres of road between Sangmelima and Mintomn-Congo border

15% of the regional road network and cross-border backhaul links is improved

62 kilometres of the road between Mamfe and Ekok; 184 kilometres of road between Sangmelima and Mintomn-Congo border are developed;

XIX





The feasibility study of the railway project is underway

Phase II (Cameroon-Congo)

• Kribi Port - Phase II

• Limbe Deepwater Port

• Shipyard and Industrial Engineering Project – Phase II

Ongoing projects

• Transport Facilitation Programme on CEMAC Corridors (Douala-Bangui and Douala-N’Djamena)

• Transport Facilitation Programme on the Bamenda-Mamfe-Ekok-Enugu Corridor

• Transport Facilitation Programme on the Brazzaville-Yaoundé Corridor

• Kumba-Mamfe Road Development Project

• Batchenga-Ntui-Yoko-Tibati-Lena Road Project

3. Weak security and aviation safety supervisory capacity

Reduce the rate of non-compliance of air safety indices by 40% and increase the number of certified airports

The level of security and aviation safety and number of certified airports have increased

Reduce the rate of non-compliance of air safety indices by 15% and increase the number of certified airports

The study on the design of a security safety project is available

4. Limitation of the extension of the National Optic Fibre Backbone

5. Insufficient quality and content of ICT services proposed

6. High cost of access to such ICT services

Install about 1 000 kilometres of optical fibre to complete the missing links within the country as well as outlets to neighbouring countries (Congo, Nigeria and CAR) and popularization of 3G in the country

Develop ICT applications by implementing the hybrid mail service in Cameroon Postal Services (CAMPOST) and establish a climate and agricultural and livestock markets information system

(About 1 000 kilometres of additional links, technopole, Cyber-attack warning and

Secure the country’s international connectivity by establishing terrestrial links with Congo and Nigeria

Provide access to information on climate and agricultural and livestock markets by farmers and livestock breeders through 3G

The Internet and mobile telephone penetration rates are 15% and 90% respectively in 2019 (against 6% and 70% respectively in 2013; source: ITU)

30% of works to install the optical fibre cable on the layout of the five links concerned by the project is completed.

Train the farmers/ livestock breeders identified in the regions concerned by the project, in partnership with MINADER

Train users of the hybrid mail system within CAMPOST

The climate and markets information systems platform is established

The hybrid mail service is implemented by CAMPOST

The Internet and mobile telephone penetration rates are 15% and 90% respectively in 2017 (against 12% and 80% respectively in 2013; source: ITU)

New projects

• Central African Backbone (CAB) Project - Phase I

• Central African Backbone (CAB) Project - Phase II

XX





response centre, public key infrastructure, etc.)

ENERGY

1. Insufficient electricity supply and generation units and absence of regional electrical grid interconnections

2. Inadequate and obsolete transmission and distribution equipment

3. Poor service quality, frequent power cuts compounding costs due to growing demand

4. Prohibitive costs, inadequate connection and pricing

5. Poor access to electricity services, particularly in rural and sub-urban areas

The construction of the Lom-Pangar hydroelectric dam is completed.

The rehabilitation and extension of transmission and distribution networks (PRERETD project) is completed.

The construction of the Cameroon-Chad electrical grid interconnection structures is completed.

Hydroelectricity generation and supply increased by [...] %

Technical losses reduced by [...] %

The country’s electrification rate rose by [...] % and the rural electrification rate by [...] %

[...]% of the construction of the Lom Pangar hydroelectric dam is completed.

[...]% of the rehabilitation and extension of transmission and distribution networks (PRERETD project) is completed.

[...]% of the Cameroon-Chad electrical grid interconnection is completed

Electrification of more than 1 500 additional localities

More than 500 000 additional households in project impact areas have access to electricity

Technical losses are reduced by [...] %

New projects

• Chad-Cameroon Electrical Grid Interconnection Project

Ongoing projects

• PRERETD

• Lom-Pangar Dam

CSP 2015-2020 Pillar 2: Strengthen Sector Governance to Enhance the Efficiency and Sustainability of Structuring Investments

Thrusts 3: State governance and strategic management improvement strategy

(i) Outcome 1 (Pillar 2): Improve sector governance and enhance public expenditure effectiveness

BUDGETARY AND FIDUCIARY FRAMEWORK

1. Budget credibility is relatively low considering the gap between budgeted expenditure and revenue and output

2. Weak internal and external control systems affect budget transparency

3. Mismatch between public development policies and the

Cameroon’s scores in the sections relating to budget credibility, comprehensiveness and control quality has improved

The capital expenditure execution rate is improved

Public policies, sector strategies and programme budgets are available

MINFI and MINPAT entities responsible for the preparation and monitoring of budget execution are strengthened

The internal control entities of ministries and external control entities (CONSUPE and the Audit Bench of the Supreme Court) are strengthened.

An information system that is

The specifications for the establishment of an integrated public finance management system are adopted

[X] out of [Y] ministries have sector strategies

The programme budgets of [X] out of [Y] ministries are prepared in line with sector

A programme to train the entities of MINFI and MINEPAT is adopted and training has begun

A training programme of CONSUPE and the Audit Bench is adopted and training has begun

MINEPAT’s computerized master

New projects

• Public Expenditure Effectiveness Improvement Support Programme

XXI





budget, jeopardizing the preparation of investment projects

Programme budget steering and monitoring tools are available and operational

adapted to the requirements of the modernization of public finance management is established.

The entities responsible for the maturation of development projects are strengthened

strategies and materialized by PAPs and MTEFs

plan is consistent with that of MINEFI

A framework for coordinating the implementation of the financial information system is adopted and operationalized

SECTOR GOVERNANCE: ENERGY AND TRANSPORT

1. Inadequate energy sector investment and project planning and preparation

2. Inadequate capacity of the energy sector institutional framework

3. Difficulty in ensuring the sustainability of road investments

The Energy Sector Governance Improvement and Capacity Building Plan ensuing from PER-Energy is adopted.

The Transport Sector Governance Improvement and Capacity Building Plan ensuing from PER-Transport is adopted.

Building the human and technical capacity of the energy sector.

Establishment of a second generation road maintenance fund

Start-up of implementation of the Energy Plan in the Ministry of Energy and Water Resources (MINEE), the Transmission Network Operator (TNO), the Electricity Sector Regulatory Agency (ARSEL) and the assets company (EDC)

The Second Generation Road Maintenance Fund is established.

Start-up of implementation of the Transportation Plan in the Ministry of Public Works (MINTP)

Approval of the Multi-sector Governance Programme

New projects

• Public Expenditure Effectiveness Improvement Support Programme

PRIVATE AND FINANCIAL SECTOR

1. Low transformation rate, despite excess bank liquidity

2. Poor access of enterprises, particularly VSMEs to credits (the share of all credit to the private sector as a % of GDP is 15%)

3. Fast-growing microfinance sector, but persistent high

Establishment of financing instruments to facilitate access to credit by enterprises and SMEs/SMIs, particularly those operating in the agricultural value chains area and those run by women

Diversification of the financial proceeds of

The share of credit to the private sector as a % of GDP is at least 25%

The number of VSMEs that had access to credit reaches X (against Y in 2014), at least 1/3 of them run by women and at least 1/3 of them based out of Yaoundé and Douala

The long-term transformation

At least one training session is organized for and MFE activity monitoring software is provided to inspection officers

At least a training session is organized for and a portion of material resources is given to the Association of MFEs

The share of credit to the private sector as a % of GDP reaches at least 20%

The number of VSMEs that obtained credit reaches 1/3 of X, 1/3 of them run by women and 1/3 of them based out of Yaoundé and Douala

The long-term

New projects

Shared-risk funds for the financing of agricultural value chains – AVC project component

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risks and a significant mismatch between the sector’s potential and its capacity to meet financing needs

enterprises and SMEs/SMIs (bank credit, leases, investment capital, financial markets, guarantees, lines of credit, refinancing, shared-risk funds, etc.)

Strengthening the supervision and control of microfinance establishments (MFEs)

The capacity of the Department of the Treasury in the inspection of MFEs is built

ratio of the entire sector increases from 47% to 60%

50% of MFEs comply with all prudential regulations

The share of MFE credit to VSMEs has reached X (against Y in 2014), of which at least 1/3 to VSMEs run by women and at least 1/3 to VSMEs based out of Yaoundé and Douala

New MFE products are identified and defined

At least three training sessions are organized for beneficiary populations

transformation ratio of the entire sector is at least 50%, that is the standard required by prudential regulations

25% of MFEs comply with all prudential regulations

The share of MFE credit to VSMEs has reached 1/3 of X, of which at least 1/3 to VSMEs run by women and at least 1/3 to VSMEs based out of Yaoundé and Douala

(ii) Outcome 2 (Pillar 2): Strengthening the strategic management of urban development

1. No strategic management of urban development

2. Weak institutional and technical capacity at the central level and difficulties in implementing policies and strategies, weak coordination of partners.

3. Absence of an adequate institutional and technical mechanism for urban planning and management and financial resource mobilization in large and medium-size municipal councils.

4. Low level of urban infrastructure investment and lack of an existing capital maintenance culture

5. Lack of efficient urban services (transport, waste, sanitation, business infrastructure)

6. Land insecurity due to the absence of modern and

The Yaoundé and Douala City Councils have been strengthened through the establishment of urban planning agencies.

The institutional and technical capacity of the Yaoundé and Douala City Councils and five regional urban centres and towns is built in the areas of governance and urban planning, financial resource mobilization and management, and basic service delivery.

Urban infrastructure has been rehabilitated and extended to seven urban centres and regional towns, including Yaoundé, Douala and the towns already considered by PAMOCCA: roads, sanitation, transport, energy, water, ICT, waste, social services, business infrastructure, etc.

Implementation of Phase 1

Preparation and implementation of the National Urban Development Programme

Establishment and operationalization of urban planning agencies in the Yaoundé and Douala City Councils.

Provision of support for the urban management of Yaoundé, Douala and five regional towns: technical capacity building – updating of urban planning and management documents – mobilization of own resources – urban infrastructure and equipment investment and maintenance programme.

Rehabilitation and extension of the urban infrastructure of seven urban centres and regional towns (roads, sanitation, energy, transport, ICT, waste, etc.).

The feasibility studies for the establishment of urban planning agencies in the Yaoundé and Douala City Councils have been finalized.

The programme to build the institutional and technical capacity of the Yaoundé and Douala City Councils and five regional urban centres and towns is launched.

The implementation of the Urban Infrastructure Rehabilitation and Extension Programme is in progress in seven urban centres and regional towns, including Yaoundé, Douala and the towns already considered by PAMOCCA

The National Urban Development Programme is prepared and approved

Feasibility studies for the establishment of urban planning agencies in the Yaoundé and Douala City Councils are carried out

Provision of support for urban management in Yaoundé, Douala and five regional towns

The rehabilitation and extension of the urban infrastructure of seven urban centres and regional towns (roads, sanitation, energy, transport, ICT, waste, etc.) – the final design and BDs are finalized.

New projects

• The National Urban Development Programme of Cameroon will be identified and prepared within the framework of the implementation of the Batchenga-Ntui-Yoko-Lena Road Project

Ongoing projects

• The Batchenga-Ntui-Yoko-Tibati-Lena Road Project (including an urban development support component)

• The Support Project for Modernization of the Land Registration System and Business Climate (PAMOCCA) - Phase I and II

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reliable cadastral records in urban areas (barrier to private investment and business and infrastructure development)

(4 towns) and design of Phase 2 of the Support Project for Modernization of the Land Registration System and Business Climate (PAMOCCA): land security.

CSP 2015-19 Cross-cutting aspects: Building indigenous knowledge and natural resource and environmental management capacity

(i) Outcome 1 : Building indigenous knowledge for better implementation of the Bank’s strategy

1. Inadequate knowledge Better consideration of risk factors for the proper targeting of Bank operations

Economic and sector study: completion of the study on factors of fragility in Cameroon

An action plan for the mitigation of factors of fragility is ready for submission to national stakeholders for validation

The interim study report prepared by consultants is available

• Study on factors of fragility in Cameroon

(ii) Outcome 2: Building capacity for green economy, climate change and gender

Lack of coordination of existing initiatives on the mitigation of the effects of climate change (CC adaptation, REDD+, etc.)

Preparation of methodological guides for monitoring sector (agriculture, transport, energy) climate change mitigation strategies

A holistic national climate change strategy is available

The general public is sensitized on the mitigation of the effects of climate change

The draft national strategy is available for national consultation

• National Climate Change Strategy

2. Absence of a national or regional green growth agenda

Adoption of an implementation plan and mobilization of resources

A national green growth strategy is available

A public consultation was organized

The draft national strategy is available

• National Green Growth Strategy

3. Non-systematic mainstreaming of the gender dimension in programmes and projects

Perfect mainstreaming of the gender dimension into all Bank programmes/ projects to be implemented during the 2015-2020 period

The methodological guide on the mainstreaming of the gender dimension and decent work protection floor are completed

At least 30% of the programmes/projects approved during the 2015-2017 period mainstream the gender dimension

Submission of the draft guide to national stakeholders for validation

• Methodological guide on the gender dimension and social protection floor

• Gender Profile

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Annex 11

2015-20 CSP Participatory Preparation Process

1.

First Consultation

(Ministries, public/ semi-public

companies, Private sector,

Civil society and TFPs)

From 30/6 to 7/7/2014

2.

Workshop on the Validation of

CSP 2010-2014 Diagnosis and Lessons

17/9/2014

3.

Streamlining of the recommendations of:

(i) the Independent Post- Evaluation of the Bank’s Strategy for 2004-2013 -

by IDEV in 2014

(ii) the Board of Directors’ Mission to Cameroon (2013)

4.

Validation of outputs and

outcomes of the CSP 2010-2014

5.

Outline of the pillars of the CSP 2015-2020

Signature

Aide-Memoire

Bank/Government

June 2015

6. Second National

Consultation for the validation of the CSP 2015-2020

June 2015

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