As Cameroon approaches 2025, the nation’s Finance Law takes center stage in the third and final parliamentary session. This pivotal policy document is shaped by pressing economic challenges, an election year, and ongoing security concerns. The new law is expected to deliver bold strategies to promote economic resilience, enhance public welfare, and bolster democratic processes.
Economic Policy Adjustments: Balancing Growth with Stability
Key measures are anticipated to include tax incentives to stimulate investment, particularly in agriculture, technology, and manufacturing. These sectors are critical for diversifying the economy and mitigating inflation and exchange rate volatility. Policies to enforce fiscal discipline and prudent debt management will aim to sustain investor confidence, crucial for Cameroon in a volatile global economic climate.
Over 10% of the national budget currently supports defense and security initiatives. Increased provisions are needed, as approximately 38% of the population resides in conflict-affected regions.
Security and Healthcare: Cornerstones of Public Confidence
The Finance Law is likely to prioritize increased funding for national security, targeting areas affected by instability. Simultaneously, health infrastructure demands urgent attention, with current healthcare spending of just 3% of Budget —well below the WHO-recommended 5%. Targeting rural healthcare access and emergency response capabilities could improve public trust and outcomes.
A modest 2% increase in healthcare spending could address these gaps effectively, ensuring better outcomes for underserved communities.
Youth Employment: Empowering the Future
With youth unemployment at 13% and underemployment reaching up to 75%, the Finance Law is expected to double investments in youth-focused initiatives. Expanding vocational training and digital skills development will prepare young Cameroonians for the growing digital economy.
Cameroon’s youth, representing over 60% of the population, are pivotal for long-term economic growth. Strategic investment in their employability will enhance productivity and economic dynamism.
Infrastructure and SME Growth: Catalysts for Economic Diversification
Allocations for infrastructure, including transportation, energy, and digital connectivity, are projected to account for 25% of the budget. Small and Medium enterprises (SMEs), which represent more than 98 % of our economical fabric, are also poised for tax reforms to reduce burdensome obligations and simplify compliance.A 5 to 10% tax cut for SMEs could fuel entrepreneurship and unlock growth in key non-oil sectors like technology and agriculture.
Social Protection and Election Transparency
Social protection programs, currently underfunded at less than 2% of our Budget, need an increase to address Cameroon’s 37.5% poverty rate (National Institute of Statistics, 2023). Transparent financing for the upcoming elections will further enhance public confidence in democratic institutions. Allocating 1% of GDP to electoral processes can ensure fairness and logistical efficiency, reflecting a commitment to democratic governance.
The 2025 Finance Law is more than a fiscal document; it represents a roadmap for addressing security concerns, improving public welfare, and fostering sustainable economic growth. By aligning with international benchmarks and addressing pressing socio-economic needs, Cameroon has the opportunity to secure a prosperous future, bolstering stability in the lead-up to its elections.
Boutchouang Nghomsi