8, August 2024
World Bank urges Biya regime to enhance tax collection 0
Cameroon, Central Africa’s second-largest economy, needs to strengthen its tax collection and improve public spending efficiency to boost economic growth, according to the World Bank.
Despite reducing its fiscal deficit by approximately 5 percentage points over six years to just 1.1% of GDP in 2022, largely through cuts in public investment, the World Bank emphasizes that targeted spending is crucial for sustainable growth.
“Cameroon’s fiscal consolidation was expenditure-driven, leading to low levels of public spending that hinder the provision of adequate services and infrastructure investment,” the World Bank noted in a recent report.
To enhance its economic performance, Cameroon needs a medium-term revenue strategy focused on more effective tax collection and improved allocation of resources. Social sectors like health and education have been particularly impacted by under-investment and inefficiencies.
The report also highlights the need to diversify revenue sources, as direct taxation remains low and stagnant. Cameroon’s reliance on value-added tax is compounded by underperforming international trade taxes and levies on property and forests, which cover a third of the country’s territory.
Amid rising global interest rates, borrowing costs in dollars have increased, forcing many governments to seek domestic solutions. However, Cameroon recently secured $550 million through a dollar bond sale with a yield of 10.75%, indicating an urgent need for financing despite challenging conditions.
Cameroon has faced numerous crises, including the impacts of the Covid-19 pandemic and Russia’s invasion of Ukraine. Additionally, internal conflicts have exacerbated poverty in various regions, and a decline in crude oil production has strained government revenue.
Nonetheless, the International Monetary Fund anticipates growth to accelerate from 3.3% in 2023 to 3.9% in 2024, despite a tense political atmosphere. The 91-year-old President Paul Biya, who has ruled for nearly 42 years, is expected to seek re-election in the upcoming February presidential polls, amidst increasing political repression.
Source: Bloomberg
8, August 2024
Catalan separatist leader Puigdemont sought by police upon return to Spain 0
The former head of Catalonia, Charles Puigdemont, was back in Spain on Thursday after seven years on the run, despite facing arrest. Puigdemont, who fled the country over his role in a failed bid for Catalonian independence, addressed supporters at a park near the regional parliament, which is set to elect a new leader later in the day.
Carles Puigdemont, the former leader of Catalonia who fled Spain over his role in a failed 2017 independence bid for the wealthy region, returned to Spain on Thursday after seven years on the run despite a pending arrest warrant.
Puigdemont shouted “Long live a free Catalonia!” as he climbed onto a stage in Barcelona to address thousands gathered near the Catalan regional parliament which is set to elect a new leader later in the day.
“I have come here to remind you that we are still here,” he said as many in the crowd waved red, yellow and blue Catalan independence flags.
After his brief address, Puigdemont appeared to head towards the nearby Catalan parliament but the assembly began an investiture vote to pick a new leader for the region without him being present.
It was not immediately clear where he was.
Nuria Pujol, a woman in her fifties who came to Barcelona from the Alt Penedes region to see Puigdemont, called him “a very noble person”.
“The only one who believes in independence and has not stopped believing,” she added.
A small group of protesters gathered nearby waving Spanish flags and holding signs that read “Catalonia is Spain” in a demonstration organised by far-right party Vox.
Source: AFP