世界银行-喀麦隆经济更新2024年6月：可持续林业的财政工具（英）

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Cameroon

ThirdEdition

forestry

forsustainable

Fiscalinstruments

June

2024

EconomicUpdate

Acknowledgments

ThiseditionoftheCameroonEconomicUpdatewaspreparedbyaWorldBankteamco-ledbyFrancisGhislainNgombaBodi(Economist,EAWM2)andAminaCoulibaly(SeniorEconomist,EAWM2),andcomposedofRyanMilanRafaty(GovernanceSpecialist,EGVPI)andChrisBelmertMilindiKatindi(ETConsultant,EAWM2),underthesupervisionofRobertUtz(LeadEconomist,EAWM2).ThereportbenefitedfrominsightsandcommentsprovidedbySamiraElkhamlichi(SeniorEnvironmentalSpecialist,SAWE4).

TheteambenefitedfromguidancefromCheickFantamadyKante(CountryDirector,AWCC1),SandeepMahajan(PracticeManager,EAWM2),GuillemetteJaffrin(OperationsManager,AWCC1),CleliaRontoyanni(ProgramLeader,EAWDR).PinarBaydar(OperationsAnalyst,EAWM2),IreneSitienei(ProgramAssistant,EAWM2)andHilaryFuhCham(TeamAssistant,AWCC1)supportedtheteamduringthepreparationofthereport.

Thefindings,interpretations,andconclusionsexpressedinthispublicationdonotnecessarilyreflecttheviewsoftheWorldBank’sExecutiveDirectorsorthecountriestheyrepresent.ThereportisbasedoninformationcurrentasofMay15,2024.TheWorldBankteamwelcomesstakeholderfeedbackonthecontentoftheCameroonEconomicUpdate.PleasedirectallcorrespondencetoFrancisNgombaBodi

(fngombabodi@

)andAminaCoulibaly(

acoulibaly4@

).

1CameroonEconomicUpdate|June2024–Fiscalinstrumentsforsustainableforestry

TableofContents

EXECUTIVESUMMARY3

CHAPTER1–THESTATEOFTHEECONOMY

11

1.1–RECENTECONOMICDEVELOPMENTS

12

1.1.1GLOBALANDREGIONALECONOMICCONDITIONSANDOUTLOOK:STEADYWORLDGDPGROWTHANDDECLININGINFLATION

12

1.1.2DOMESTICGDPGROWTHSLOWEDIN2023,WHILEAVERAGEINFLATIONROSE

14

1.1.3EXTERNALSECTOR:CURRENTACCOUNTDEFICITWIDENEDIN2023

21

1.1.4FISCALCONSOLIDATIONISCONTINUING,ALLOWINGPUBLICDEBTASAPERCENTAGEOFGDPTODECLINE

24

1.1.5MONETARYPOLICYANDBANKINGSECTOR:TIGHTERMONETARYCONDITIONSANDCAMEROON’SBANKINGSYSTEMREMAINSRESILIENTDESPITESOMEFRAGILITIES

32

1.2–MEDIUMTERMECONOMICOUTLOOK

35

1.2.1WORLDANDREGIONALECONOMICOUTLOOK:MODERATEECONOMICGROWTHWITHMANYUNCERTAINTIES

35

1.2.2GDPGROWTHISEXPECTEDTOACCELERATEIN2025-26ANDSTABILIZETHEREAFTER,WHILEINFLATIONWILLPROGRESSIVELY,CONVERGETOTHE3PERCENTTARGET

36

1.2.3CURRENTACCOUNTDEFICITWILLREMAINSTABLEOVERTHEMEDIUM-TERM

37

1.2.4FISCALDEFICITWILLREMAINAROUND1PERCENTOFGDPINTHEMEDIUM-TERM,ALLOWINGTHEDEBTTOGDPRATIOTODECREASE

37

1.2.5THEOUTLOOKINTHISECONOMICUPDATEISLESSOPTIMISTICTHANAYEARAGO

39

1.2.6THEOUTLOOKISSUBJECTTODOWNSIDERISKS

40

1.2.7STRUCTURALISSUESANDCHALLENGESINCAMEROON

40

CHAPTER2–DESIGNINGFISCALINSTRUMENTSFORSUSTAINABLEFORESTS

44

2.1–INTRODUCTION:CONTEXTANDOBJECTIVES

45

2.2–STATEANDTRENDSOFFORESTSINCAMEROON

45

2.2.1THEPLACEOFFORESTRYINTHECAMEROON’SECONOMY

51

2.2.2RISINGDEFORESTATION

54

2.2.3FORESTCARBONEMISSIONSANDNDCCOMMITMENTS

55

2.2.4FORESTPOLICYREFORMS,GOVERNANCE,ANDINCLUSIVEPARTICIPATION

58

2.3–REGIONALANDINTERNATIONALCONTEXT

61

2.3.1FINANCINGFORSUSTAINABLEFORESTMANAGEMENT

61

2.3.2IMPLEMENTATIONOFTHECEMACLOGEXPORTBAN

63

2.3.3THEEUREGULATIONONDEFORESTATION-FREEPRODUCTS

66

2.4–THEROLEOFENVIRONMENTALFISCALPOLICY:TRADE-OFFSINTHEFORESTRYSECTOR

70

2.5–SURVEYOFFOREST-FISCALPOLICYINSTRUMENTSINCAMEROON

75

2.5.1RECURRENTANNUALCHARGES

75

2.5.2LOGGINGLICENSINGANDTHEAUCTIONINGOFFORESTCONCESSIONS

76

2.5.3OUTPUTTAXES:ROYALTIESFROMHARVESTEDTIMBERANDSTUMPAGEYIELDTAXES

77

2.5.4BUSINESSINCOMETAXES

80

2.5.5TAXEXPENDITURESFORAGRICULTUREANDVATEXEMPTIONSFORFARMINPUTS

81

2.6–OPPORTUNITIESFORCLIMATE-SMARTFORESTFISCALPOLICYREFORMINCAMEROON

83

2.6.1VARYINGFORESTRYTAXESBYTHESUSTAINABILITYOFPRODUCTIONMETHODS

83

2.6.2ABONUS-MALUSSYSTEMINFORESTRY

84

2.7–LOOKINGAHEAD:LESSONSLEARNED

86

2.7.1COMBININGFISCALINSTRUMENTSWITHBETTERFORESTGOVERNANCE

86

2.7.2STRENGTHENINGREGIONALCOOPERATION

90

2.7.3THECONGOBASINCOUNTRIES’EFFORTSTOPRESERVETHEIRFORESTS

92

REFERENCES

93

Summary

Executive

3CameroonEconomicUpdate|June2024–Fiscalinstrumentsforsustainableforestry

This3rdeditionoftheCameroonEconomicUpdatesis

partofaprogramofannualreportsanalyzingCameron’s

developmenttrendsandconstraints.Thereportprovides

acomprehensiveanalysisofthecountry’srecenteconomic

developments,medium-termeconomicoutlook,andthe

roleoffiscalinstrumentsinsustainableforestry.Itexamines

Cameroon’seconomicperformancewithinthecontextof

globalandregionaleconomicconditions,highlightingthe

interplaybetweenfiscalpoliciesandforestrysectorchallenges.

SlowerEconomicGrowthAmidHighInflationandfiscalchallengesin2023

In2023,globaleconomicactivityslowedto2.6percent,downfrom3.0percentin2022,largelyduetotightermonetarypoliciesandreducedfiscalsupportinadvancedeconomies.Advancedeconomiessawgrowthdecreaseto1.5percent,primarilyduetohigherborrowingcostsandreducedfiscalsupport.TheUnitedStateswasanexception,experiencinghighergrowthduetofiscalstimulus.Emerginganddevelopingcountriesexperiencedaslightaccelerationingrowthto4.0percent,drivenbysubduedproductivitygrowth,particularlyinChina.Commoditypricesfellby24.2percent,drivenbydecliningfuelandfoodprices,despitegeopoliticaltensions.However,cocoapricesshowedasustainedupwardtrendduetosupplyconstraintscausedbyadverseweatherconditionsinmajorproducingcountries.Sub-SaharanAfricaexperiencedaslowdownineconomicgrowthto2.9percentfrom3.7percentin2022,withmajoreconomieslikeNigeriaandSouthAfricafacingsignificantchallenges.

Cameroon’seconomicgrowthslowedin2023,withrealGDPgrowthdeceleratingto3.3percent,downfrom3.6percentin2022.Thisdeclinespannedacrossalleconomicsectors—primary,secondary,andtertiary—amidstchallengessuchasfiscalconsolidation,risingdomesticinflation,andongoinginternalconflicts.Servicesector,whichhasbeenaleadingcontributortogrowth

4CameroonEconomicUpdate|June2024–Fiscalinstrumentsforsustainableforestry

forthepastthreedecades,alsoexperiencedaslowdownin2023,particularlyduetoadeclineintransportationactivities.ThisdeclinewaslargelyattributedtoanincreaseinfuelpricesinFebruary2023.Inthesecondarysector,challengeswerepronouncedwithasustaineddeclineinhydrocarbonproduction,whichfellby4.3percentin2023,continuingatrendfrompreviousyears.Additionally,foodprocessingindustriesfaceddifficultiesduetohighercostsofagriculturalinputsandissueswithsmuggling,despiteimprovementsintheenergysupplyfromnewhydroelectricpowercapabilitiesandexpandedelectricpowerdistribution.Conversely,theconstructionsectordemonstratedresilience,maintaininggrowthdrivenlargelybystrongprivateinvestment,evenaspublicinvestmentreceded.

Meanwhile,thelatestemploymentsurveyindicatedthatlaborforceparticipationratehasbeendecliningsignificantlyoverthepastdecade,amidhighunemploymentandunderemploymentrates,particularlyamongtheyouth.Despiteanincreasingworking-agepopulation,laborforceparticipationhasdecreasednotably,droppingfrom70.2percentin2010to57.1percentin2021,withthemostsubstantialdeclineobservedamongyoungpeople.Concurrently,theunemploymentratehasrisenfrom3.8percentin2010to5.9percentin2021.

Averageinflationroseto7.4percentin2023from6.3percentin2022.Highfoodpricesandtransportationcosts,impactedbyincreasedfuelprices,keptinflationelevated.DespitetheregionalCentralBank’s(BanquedesÉtatsdel’Afriquecentrale,BEAC)restrictivemonetarypolicy,domesticfactorsmaintainedhighheadlineinflation.Thegovernmentincreasedpublicservantsalariesandtheminimumwagetomitigateinflationimpacts,thoughthesemeasuresdidnotaffectinformalsectorworkers.

Thecurrentaccountdeficitwidenedto4.0percentofGDPin2023from3.5percentin2022duetoalargertradedeficitfromdeclininghydrocarbonproductionandexports.Nevertheless,cocoapricesurgespositivelyimpactedexportrevenues.

Fiscalconsolidationeffortscontinued,resultinginareducedfiscaldeficitof0.8percentofGDPin2023from1.1percentin2022.Enhancedtaxrevenuecollectionandreducedexpenditures,includingfuelsubsidies,contributedtothisimprovement.Non-oiltaxrevenueincreasedfrom10.6percentofGDPin2022to11.4percentin2023,reflectingnewrevenuemeasures,suchasremovaloftaxexemptionsandincreasedexcisetaxes.Thepublicdebt-to-GDPratioslightlydecreasedto44.3percentin2023from44.9percentin2022,althoughinterestchargesroseduetotighterfinancialconditions.Thecurrentaccountdeficitwidenedto4.0percentofGDPin2023from3.5percentin2022,primarilyduetoalargertradedeficitcausedbydeclininghydrocarbonproductionandexports.

sCameroonEconomicUpdate|June2024–Fiscalinstrumentsforsustainableforestry

ModerateGrowthintheMedium-termAmidFiscalChallengesandRisks

Theglobaleconomicoutlookfor2024indicatesmoderategrowthofGDPgrowthof2.4percentisprojectedfor2024,downfrom2.6percentin2023.SlowerdemandintheUSandEuropeandchallengesinChina’srealestatesectorwillconstraingrowth.Commoditypricesareexpectedtoremainmoderate,withsignificantrisksfromgeopoliticaldevelopments.Sub-SaharanAfricaisexpectedtogrowby3.8percent,despitefiscalchallenges.InCentralAfrica,tightfinancialconditionsareanticipatedin2024,easingby2025-2026.

Lookingahead,Cameroon’smedium-termrealGDPgrowthisprojectedtoreach

4.0percentin2024and4.5percentonaveragefrom2025to2027,drivenbyimprovedenergysupplyandstrongpublicinvestments.ThecompletionoftheNachtigalhydroelectricdamandoftheMemve’elepowerplanttransmissionlineswillprovideadditionalenergysupply,boostingmanufacturingactivities.Inflationisexpectedtograduallydecrease,reaching3.0percentby2027,supportedbymoderatingimportpriceinflationandtheBEAC’stightmonetarypolicy.Thefiscaldeficitisanticipatedtoremainaround1.0percentofGDPinthemediumterm,withpublicdebtprojectedtodeclineto36.3percentofGDPby2027.Keyrisksincludecommoditypricevolatility,regionalsecuritycrises,andpotentialsocialtensions.Strategicrecommendationsemphasizetheimportanceofrobustfiscalandmonetarypolicies,infrastructureinvestments,governancereforms,andprivatesectorsupporttoensuresustainableeconomicdevelopmentandstability.

Fiscalpoliciesforforestrycouldbereformedtocontributetomore

publicrevenuesandjobcreation

whilepromotingsustainableforestrymanagement.

Cameroonpossessesvastforestedareas,richinbiodiversity,essentialtoclimateregulation,andthelivelihoodsofindigenouspeoplesandlocalcommunitieswhorelyonforestresources.Forestscoverabout35percentofCameroon’sareaandplayavitalroleinregulatingcarbondioxide,essentialfornationalandregionalclimateregulation.Italsoactsasasanctuaryforindigenouspopulationswhoheavilydependonforestresourcestofeedthemselvesandbuildtheirlivingenvironment.About19percentoftheforestislocatedinprotectedareas,

6CameroonEconomicUpdate|June2024–Fiscalinstrumentsforsustainableforestry

includingthecountry’s10nationalparks.About70percentoftheforestisdedicatedtosustainableandcontrolledproductionofforestproductsmanagedbyprivatecompanies.TheannualdeforestationrateinCameroonisonanupwardtrend,risingfrom0.1percentto0.6percentbetween2008and2020.Thishasresultedinadeclineinbiodiversityandcarbonsequestration,andhighlightschallengesinforestmanagement.Thedriversofdeforestationincludesmall-scaleagriculture,illegallogging,uncontrolledminingactivities,andunsustainablelandusepracticessuchasslash-and-burnagricultureandunregulatedagro-industrialexpansion.

Theforestrysector’scontributiontotheCamerooneconomyhasalwaysbeensignificant,althoughitislowrelativetoitspotential.WhileitscontributiontothenationalGDPhasslightlydecreasedoverthepasttwodecades,theforestryindustrycontinuestoplayacrucialroleintheeconomy.Intheearly2000s,theforestryindustryaccountedfor20percentofexportsand4percentofGDP.By2021,itrepresentedover12.2percentofexportsandcontributed3.8percentofGDP.TheforestryvaluechainisthethirdhighestproviderofexportrevenuesinCameroonafterthecocoaandhydrocarbonsectors.Thetimbersectorcurrentlyprovidesapproximately45,000jobs,including22,000intheinformalsector.WhileCameroonisthelargestproducerandexporteroflogsintheCEMACregion,thetransformationoflogsintofinishedproductsisstilllowinthewoodindustry.Asaresultofproblemslinkedtoalackofsuitableinfrastructure,illegallogging,governanceissues,insufficientskillscapacitydevelopmentandcorruption,Cameroon’sforestryindustryislimitedtoprimarywood-processedproductslikeindustrialroundwoodandsawnwood.

CEMACcountrieshavemovedtowardsimplementingabanontheexportofroundlogsaspartofanefforttopromotelocaltimberprocessingwithinthesecountriesandaligningthemselveswithaglobalmovementtowardssustainableforestmanagement.Thissignificantpolicyshift,initiallyslatedforcommencementin2022,hasbeenpostponedto2028,allowingcountriesinvolvedampletimetoadapttothistransformativeagenda.Cameroon,followingtheedictsofits1994forestrylaw,begantoprohibitlogexportsin1999,allowingagenerousintervalforadaptation.Yetthepersistenceoflogexports,facilitatedbyaconvolutedsystemofquotasandexceptions,borewitnesstothecomplexityoftheissueathand.

RecentyearshaveseenanuptickininternationalfundingforsustainableforestmanagementintheCongoBasinregion,butinternationalcommitmentsarestillinsufficient.Globalcommitmentsstilltendtolackquantifiableandtransparenttargets,leavingagapbetweenpledgesandresults.Thesituationisfurthercomplicatedwhenconsideringthedistributionofthesefunds.Fundingallocatedtolocalcommunities,communalforests,andindigenouspopulationsremainpalpablyinadequate.Thisshortfallextendstoothervulnerablegroups,suchasruralwomenandsmallholderfarmers.

7CameroonEconomicUpdate|June2024–Fiscalinstrumentsforsustainableforestry

PhotobyAtabongArmstrong,availableat

Wikimedia

,licensedunder

CCBY-SA4.0

Partofthesolutioncouldthuscomefromfiscalreformsandincreasevalueadditioninthewoodindustrytooptimizeforestresources,asameanstosecurehigherpublicrevenuesandenvironmentalgoals.Despitetheabundanceofforestresources,Cameroonhasstruggledtomaximizerevenuefromitsforestrysector.Revenuefromforesttaxesaccountedforonly0.2percentofGDPin2022.Halfofthisrevenuecomesfromlogsexporttaxes,whiletheotherhalforiginatesfromlandareafeesandtreeharvestingtax.Goingforward,fiscalreformscouldbedesignedtofurtherintegrateclimate-smartfiscalpolicyinstruments,whichcanbecost-efficientandleadtosignificantresults.Forest-relatedfiscalpolicyinstrumentscancomplementforestconservationandmanagementstrategies,enablingpolicymakerstofulfillenvironmentalandclimategoalsmoreaffordably,whilegeneratingmorerevenuesforthestate.

Fiscalpoliciessuchassubsidiesforsustainablepractices,environmentaltaxes,taxrebateforforestrycertificationandagroforestry,reinvestmentofnaturalresourcerevenues,fiscaltransfers,andgrantscanplayacrucialroleinprotectingCameroonforestland.Buttaxationonforestsneedstobeappliedwithcarefulconsiderationofeconomic,social,andenvironmentalfactors.Ensuringthattaxesareequitable,transparent,andeffectivelyusedtopromotesustainableforestmanagementandconservationiscrucial.Balancingtheneedtodiscourageharmfulpracticeswiththeneedtosupportandincentivizesustainablelivelihoodswillhelpachievelong-termforestconservationgoals.Forinsistence,areafeesrevealthecomplex,oftenunpredictable,effectsofforesttaxesonloggingbehavior.Theresponseofloggerstothesefiscalpressuresrevealsthatincreasedfeessometimesbeckontowardsmoreintensivelogging.

8CameroonEconomicUpdate|June2024–Fiscalinstrumentsforsustainableforestry

Theintegrationofsustainabilitycertificationintoforest-relatedtaxratesrepresentsaforward-thinkingapproachtoenvironmentalfiscalpolicy,onethatcombinesfiscalandeconomicgoalswithpreservingnaturalassetsforthebenefitoffuturegenerations.Suchastrategyacknowledgesthecomplexitiesofsustainableproductionandseekstoleveragefiscalinstrumentsinserviceofacombinationoffiscal,economic,social,andenvironmentalgoals.FiscalpoliciesthatpromotesustainableforestrycanalsobeusedbycountriessuchasCamerountoavoidapathwhereunsustainableexploitationcompromisesforestecosystems,takinginsteadanapproachtoforestsandotherresourcesthatwillenablefuturegenerationsofCamerountocontinuebenefitingfromthecountry’srichnaturalendowments.Astheauthoritiespursuetheirplanstorevisetheforestrycode,differentfiscalpolicyoptionscouldbeconsideredinastrategytoincreasefiscalrevenueswhilefosteringincomegeneration,jobs,sustainableexploitationofwoodresources.Fiscalpoliciesthatcouldbeenvisagedinclude:

•Adjustingforesttaxratesbasedontheecologicalimpactoftimberproductionmethods,utilizingassessmentsfromforestcertificationagencies.

•Encouragingforestcertificationandconsidera“bonus-malus”system,taxingnon-certifiedconcessionsmorethancertifiedones.

•Rationalizingtaxexpendituresforagriculturetoalignwithenvironmentalgoalsandimplementamonitoringsystemforeffectivefundusage.

•Promotinguser-friendlydigitalservicesforforestry,includingpermitapplicationsandreal-timetracking,andprovidetrainingforforestryofficialsandconcessionaires.

•EngaginglocalcommunitiesinREDD+projectstoensuredirectbenefitsandsecureperformance-basedfundingfrominternationaldonors.

•Implementingcomprehensivelegalreformsoftheforestrylawtoensuresustainablemanagement,strongenforcement,andcommunityinvolvement.

•Fosteringinternationalpartnershipstosecurefundingforforestconservationandclimateresilienceprojects.

•Promotingagroforestryandsustainablelandmanagementpracticestoreducedeforestationandforestdegradation.

•Enhancingcommunityengagementandparticipatoryforestmanagementtoensuresustainableconservationefforts.

•Developingarobustlocalwoodprocessingindustrywithincentivesliketaxbreaksandgrantsandinvestinvocationaltrainingprograms.

9CameroonEconomicUpdate|June2024–Fiscalinstrumentsforsustainableforestry

Fiscalstrategies,however,arenotstandalonesolutionsbutcomponentsofacomprehensivepolicymixthataddressesthemultifacetedchallengesofforestconservation.Fromregulatorymeasurestoeconomicinstrumentsandinformationalcampaigns,thesuccessofforestconservationandsustainabledevelopmentstrategiesandeffortshingesontheabilitytoimplementacoherent,integratedstrategythatleveragesthestrengthsofeachapproach.Theroleofgovernance,inthiscontext,cannotbeoverstated.Arobustgovernanceframeworkisessentialnotonlyfortheeffectiveimplementationoftaxpoliciesbutalsoforfosteringthecollaborationandtransparencynecessaryforsustainableforestmanagement.

Belowarethemainpolicyrecommendations.

PolicyArea

Action

ResponsibleEntities

Time

Frame

TaxRevenueCollection

Improveefficiencyintaxadministrationtoensurehighercomplianceandreducetaxevasionthroughtheuseofdigitalmeans.

MinistryofFinance

ShorttoMediumTerm

Broadenthetaxbasebyreducingtax

exemptionsandpreferentialrates,particularlyinVATandincometax.

MinistryofFinance,Parliament

ShorttoMediumTerm

Expenditurecontrol

Prioritizespendingoninfrastructureprojectsthatstimulateeconomicgrowthandcreateemploymentopportunities

MinistryofFinance,MinistryofEconomy

ShorttoMediumTerm

Graduallyphaseoutfuelsubsidieswhile

implementingtargetedassistanceprogramstomitigatetheimpactonvulnerablepopulations.Redirectsavingsfromsubsidyreductiontowards

productiveinvestmentsorsocialwelfareprograms.

MinistryofFinance,MinistryofEconomy

ShorttoMediumTerm

SustainableForestry

Practices

Implementnaturalresourcerenttaxestocaptureresourcerentseffectively.

MinistryofForestry,MinistryofFinance

ShorttoMediumTerm

Establishpaymentsforecosystemservicesto

incentivizeforestconservationandsustainableuse.

MinistryofForestry,

MinistryofEnvironment

MediumTerm

Introduceenvironmentaltaxesandtradablepermitstoregulateandreduceunsustainablepractices.

MinistryofEnvironment,MinistryofFinance

MediumTerm

ValueAddition

andEmployment

Providesubsidiesandincentivesforbasedindustriesthataddvalueandemployment.

forest-

generate

MinistryofIndustry,MinistryofFinance,MinistryofForestry

MediumTerm

Encouragelocaltimberprocessingthroughfinancialandtechnicalsupport.

MinistryofIndustry,MinistryofTrade,MinistryofFinance

MediumtoLongTerm

10CameroonEconomicUpdate|June2024–Fiscalinstrumentsforsustainableforestry

Belowarethemainpolicyrecommendations.

PolicyArea

Action

ResponsibleEntities

Time

Frame

Forest

GovernanceandLawEnforcement

Enhancetransparencyinforestmanagementandensurestrictenforcementofforestlaws.

MinistryofForestry,Anti-CorruptionAgencies

ShorttoMediumTerm

Reviseforestlegislationtoalignwith

internationalcommitmentsandbestpractices.

MinistryofForestry,

MinistryofEnvironment,MinistryofJustice

ShorttoMediumTerm

InternationalandPrivateFinancing

Developmechanismstoattractclimatefinancefrominternationaldonorsandprivateinvestors.

MinistryofFinance,

MinistryofEnvironmentInternationalCooperationAgencies

MediumTerm

Issuehighintegritycarboncreditstofacilitateresourcetransferstolocalcommunities.

MinistryofEnvironment,MinistryofFinance

MediumTerm

Reforestation

andSustainableLand

Management

Strengthenprotectedareasandsustainableforestmanagement

promotepractices.

MinistryofEnvironment,MinistryofForestry

MediumtoLongTerm

MitigationofDeforestation

Addressdriversofdeforestation,suchassmall-scaleagricultureandillegallogging,throughtargetedinterventions.

MinistryofForestry,

MinistryofAgriculture

ShorttoMediumTerm

Implementthe"bonus-malus"systemtofundsustainablepracticesbytaxingnon-sustainableproduction.

MinistryofFinance,

MinistryofEnvironmentMinistryofForestry

MediumTerm

FiscalPolicyforForest

Conservation

Integratefiscaltoolswithperformancebondsandcertificationschemestoensuresustainableforestmanagement.

MinistryofFinance,MinistryofForestry

MediumtoLongTerm

Taxdiscountsorwaiversforsustainablycertifiedproducts

MinistryofFinance,MinistryofForestry

MediumtoLongTerm

Applyrecurrentannualchargesandauctionforestconcessionsbasedonsustainabilitycriteria.

MinistryofFinance,MinistryofForestry

MediumTerm

RegionalandInternationalCooperation

CollaboratewithregionalinitiativesliketheCentralAfricanForestInitiative(CAFI)andadheretocommitmentsmadeatCOP26.

MinistryofEnvironment,InternationalCooperationAgencies

ShorttoMediumTerm

Ensurecompliancewithinternational

regulations,suchastheEURegulationonDeforestation-FreeProducts.

MinistryofTrade,MinistryofEnvironment

ShorttoMediumTerm

HumanCapitalandSocial

Protection

Increasepublicspendingoneducation,health,andsocialprotectiontosupportcommunitiesdependentonforests.

MinistryofFinance,

MinistriesinchargeofEducation,MinistryofHealth

MediumtoLongTerm

Developprogramstoimprovetheskillsandlivelihoodsofforest-dependentpopulations.

MinistryofSocialAffairs,MinistryofLabor

MediumtoLongTerm

Chapter1

TheStateoftheEconomy

12CameroonEconomicUpdate|June2024–Fiscalinstrumentsforsustainableforestry

1.1

RecentEconomicDevelopments

1.1.1Globalandregionaleconomicconditionsandoutlook:SteadyworldGDPgrowthanddeclininginflation

Worldeconomicactivityslowedin2023,risingbyonly2.6percent-against3.0in2022.Thisoveralldeceleration,depictedinFigure1,wasnotuniformacrosstheworld.Inadvancedeconomies,growthslowedto1.5percent,downfrom2.5percentin2022.Thisdeclinewaslargelyattributedtoelevatedborrowingcosts,spurredbytightermonetarypolicies,andareductioninfiscalsupport.However,theUnitedStatesstoodasanexception,wherefiscalstimulusmeasuresledtoahigherrealGDPgrowthratein2023.Conversely,emerginganddevelopingcountriesexperiencedaslightaccelerationingrowth,from3.7percentto4.0percent.Thiswasprim