(Business in Cameroon) – The Cameroonian government has proposed a 2025 Finance Bill with over CFA14 billion in subsidies for businesses and other entities. This marks a CFA1 billion increase compared to the 2024 budget. However, the government plans to prioritize private companies in this new allocation.
If the bill is passed, CFA7.6 billion will be allocated to private businesses. That is 68.8% higher than the CFA4.5 billion given to them in the 2024 budget.
On the other hand, subsidies for state-owned enterprises (SOEs) are set to drop sharply. The proposed allocation for SOEs in 2025 is only CFA1.5 billion, a 153% decrease from the CFA3.8 billion allocated in 2024.
Subsidies for other entities, which do not fall under private businesses or SOEs, are also set to rise slightly. The government proposes CFA4.9 billion for these entities in 2025, up from CFA4.5 billion in 2024.
This shift in subsidy allocation comes as Cameroon faces pressure from the International Monetary Fund (IMF) to improve the profitability of its state-owned enterprises. Many SOEs in Cameroon are underperforming and heavily reliant on state funding without clear accountability or results. The IMF has criticized these entities as money pits, receiving large subsidies and cash injections from the state without delivering expected outcomes.
The institution has recommended that the government sign performance contracts with selected SOEs. These contracts would outline public service obligations, set clear cost benchmarks for subsidies, and include measurable indicators for production volume and service quality.
