Cameroon’s Government Proposes 7,317.7 Billion FCFA Budget for 2025

Cameroon has unveiled its proposed state budget for the 2025 fiscal year, amounting to 7,317.7 billion FCFA (approximately 11.2 billion euros), reflecting a modest increase of 39.6 billion FCFA (0.5%) compared to the 2024 fiscal year.

The proposal, submitted to Parliament for approval, aims to balance resources and expenditures while emphasizing investment and economic growth.

Budget Breakdown

The 2025 budget includes two primary components:

• General Budget: Projected at 7,250.8 billion FCFA, an increase of 38.3 billion FCFA (0.5%) from 2024.
• Special Appropriation Accounts (CAS): Estimated at 66.9 billion FCFA, slightly up by 1.3 billion FCFA (1.5%) compared to 2024.

This slight overall growth reflects the government’s aim to stabilize public finances while fostering targeted investments.

Economic Growth Projections

The budget assumes that Cameroon’s economic growth will improve from 3.8% in 2024 to 4.1% in 2025, driven primarily by the non-oil sector, which is expected to grow by 4.3%. This growth builds on previous gains of 4.1% in 2024 and 3.6% in 2023.

However, the oil sector remains in decline, with a projected contraction of -1.0% in 2025, following an estimated -2.6% in 2024. This downturn is attributed to declining oil production, falling global oil prices, and the weakening parity between the US dollar and the CFA franc.

Revenue and Investments

The government anticipates 5,548.1 billion FCFA in domestic revenue and grants, an increase of 313.1 billion FCFA (6%) from 2024. However, oil revenues are expected to drop by 66.8 billion FCFA (8.3%), with estimated earnings of 734.8 billion FCFA in 2025.

To compensate, Cameroon plans to focus on public investments, with the investment budget rising to 1,863.1 billion FCFA, up by 259 billion FCFA (16.1%) from 2024. This represents 33.48% of total budget expenditures in 2025, demonstrating the government’s commitment to infrastructure development and economic diversification.

Challenges and Opportunities

Despite the modest increase in the overall budget, the government faces challenges:

• Declining Oil Revenue: With oil prices and production expected to fall, Cameroon’s reliance on the non-oil sector for growth becomes increasingly critical.
• Debt Management: Cameroon aims to maintain fiscal stability while continuing its debt repayments, as evidenced by its efforts in 2024, where 65% of its debt repayment target was met by September.

However, the 2025 budget also highlights opportunities:

• Increased Public Investments: The significant rise in the investment budget signals a focus on infrastructure, job creation, and economic resilience.
• Non-Oil Sector Growth: With steady growth in agriculture, manufacturing, and services, the non-oil sector is poised to drive economic development.

Government Priorities

The government’s 2025 financial strategy focuses on:

1. Sustaining Public Investments: Boosting infrastructure and economic projects to stimulate growth.
2. Stabilizing Public Finances: Ensuring prudent fiscal management to avoid excessive deficits.
3. Mitigating Oil Dependency: Diversifying revenue streams to reduce reliance on oil earnings.

Looking Ahead

Cameroon’s proposed budget for 2025 reflects a cautious yet optimistic approach to economic management. While challenges such as declining oil revenues persist, the government’s emphasis on non-oil sector growth and increased public investment could provide the foundation for long-term economic stability and development.

As Parliament reviews the proposal, the success of this budget will depend on effective implementation, fiscal discipline, and the ability to navigate the complex dynamics of both domestic and global economic conditions.