27 June 2008
Following if the press release issued at the end of the cabinet meeting of Thursday 26 June 2008.
The Prime Minister, Head of Government, Chief Ephraim INONI, today Thursday, 26 June 2008, as from 1:30 p.m. in the Prime Minister's Office, chaired an important Cabinet Meeting which was attended by Vice-Prime Minister in charge of Justice, Keeper of the Seals, the Minister of State in charge of Territorial Administration and Decentralization, Ministers, Ministers-Delegate as well as his closest aides.
On the agenda featured two statements and one report, namely:
1- the statement of the Minister for Finance on "the role of micro-finance institutions in the Cameroonian economy";
2- the statement of the Minister for the Economy, Planning and Regional Development on "the state of progress in the review of the PRSP";
3- the report by the Minister for State Property and Land Tenure on his recent visit to the Benoue Valley.
After the introductory remarks of the Head of Government, the Minister for Finance presented an overview of the steadily growing micro-finance sector in Cameroon. The sector has about 520,000 customers with deposits of over CFAF 95 billion and has given out loans worth CFAF 61 billion.
He indicated that significant progress was achieved in 2002 at the level of regulations, with micro-finance institutions (MFIs) being placed under the supervision and control of the Central African Banking Commission (COBAC) as a means of better protecting depositors' savings.
Broaching the specificities of micro-credit, the Minister for Finance explained that it is an instrument which suits our socio-cultural context and fosters the integration into the formal financial sector of people marginalized by the extreme prudence of traditional banks.
Concluding his statement, the Minister for Finance said a number of factors however blight the potential of the micro-finance sector, namely: its uncompleted structuring, the lack of professionalism of some developers and cases of disregard for the code of financial ethics.
At the end of this statement, the Prime Minister instructed the Minister for Finance to conduct a study on a specific taxation for micro-finance institutions and the setting up of a first level of supervision and control of MFIs by the monetary authority compatible with CEMAC regulations. He further asked that training programmes for micro-finance operators be intensified.
Next, the Minister for the Economy, Planning and Regional Development presented the state of progress of the review of the Poverty Reduction Strategy Paper (PRSP).
His presentation revealed that the review process of the PRSP - begun since February 2007 with the adoption of terms of reference - was nearing completion. The process required the elaboration of the 2006 and 2007 interim reports of the ongoing PRSP, the conduct of participatory consultations in March 2008 in 58 administrative divisions involving over 6,000 persons nationwide, the concerted formulation of a vision of Cameroon's long-term development as well as the completion of the third Cameroonian Households Survey (ECAM III).
The Minister in charge of planning indicated that two complementary activities would be carried out between now and August 2008, namely: the review of sector-based strategies and the macro-economic and budgetary alignment, at the end of which the drafting proper of the PRSP would commence.
After expressing satisfaction with the actions undertaken to date in the PRSP review process, the Prime Minister asked the Minister for the Economy, Planning and Regional Development to expedite the process, ensure the quality of the ensuing paper and closely involve the Ministry of Finance in the elaboration of the macro-economic and budgetary alignment and the central Medium-Term Expenditure Framework (MTEF).
He further instructed all Ministers concerned to quickly conclude the review of sector-based strategies on which the review of the PRSP largely depends.
Lastly, the Cabinet Meeting listened to the mission report of the Minister for State Property and Land Tenure to the Benoue Valley which revealed that modalities for the harmonious co-existence of the local populations and agro-industrial enterprises have been defined and would be implemented as quickly as possible. The meeting was adjourned at 3:30 p.m.
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