Paul Biya: Directive Boosts Predictability of Cameroon Communal Funds

• President Paul Biya issued a directive in a budget circular to improve the predictability and effective transfer of funds to local collectivities.
• The directive is in accordance with the law of December 23, 2024, on local taxation, which outlines the responsibilities of local councils.
• Local councils in Cameroon are currently paralyzed by a lack of funding, as resources collected by the Ministry of Finance often do not reach them fully or on time.
• The Ministry of Finance appears to prioritize debt repayment for immature projects over disbursing funds to communes.
• Economist Dieudonné Essomba suggests the directive aims to satisfy international partners and expresses doubt about its feasibility.

Economist Dieudonné Essomba has weighed in on the situation, suggesting that this particular budget circulaire Biya, formulated based on the budget presented by the Minister of Finance, primarily aims to appease international partners.

President Paul Biya has issued a significant directive aimed at reforming the financial mechanisms supporting Cameroon's decentralized territorial collectivities. Contained within point 20 of a recently published budget circular, the presidential instruction specifically calls for enhanced predictability in the resources transferred to these local entities. This budget circulaire Biya underscores a commitment to ensuring that funds designated for local governance are both consistently available and transparently managed.

The directive further mandates the effective release of fiscal resources that have been collected and mobilized for the benefit of these local authorities. This move directly addresses a long-standing issue where Cameroon local government funding has been inconsistently disbursed. The President's intervention seeks to rectify the operational paralysis faced by many local councils, which often struggle due to insufficient or delayed financial allocations, despite their critical roles in community development.

This presidential Paul Biya directive communal funds Cameroon is explicitly rooted in the loi du 23 décembre 2024 portant fiscalité locale. This foundational law outlines the framework for local taxation and the financial autonomy of decentralized entities. Under this legal structure, local councils, or mairies, are designated as key actors in fostering local development and managing essential proximity services for their populations.

The scope of responsibilities for these collectivités territoriales décentralisées financement is extensive and vital. It encompasses fundamental services such as the construction and maintenance of primary and nursery schools, basic health provision, and social welfare initiatives. Furthermore, local authorities are tasked with critical urban planning functions, including territorial development, urbanism, housing permits, and land use plans. Their duties also extend to maintaining communal road networks, ensuring water supply, and managing public hygiene, sanitation, and waste disposal, all of which necessitate robust and reliable financial backing.

Despite the clear legal mandates and the President's recent directive, a persistent challenge remains in the actual transfer of funds. Mayors across Cameroon frequently report being severely hampered by a chronic lack of funding. Resources collected by Louis Paul Motazé, the Minister of Finance of Cameroon, that are earmarked for communes often fail to reach their intended recipients, or are disbursed only incrementally, never fully meeting the allocated amounts. This erratic flow of communal funds severely undermines the operational capacity of local governments.

Observations suggest that the Ministry of Finance has, in practice, prioritized the repayment of debts incurred for projects deemed immature and unprofitable. This apparent preference for external debt servicing over the timely release of local government funds creates a significant bottleneck for local development. Economist Dieudonné Essomba has weighed in on the situation, suggesting that this particular budget circulaire Biya, formulated based on the budget presented by Louis Paul Motazé, the Minister of Finance, primarily aims to appease international partners. Essomba further expresses strong skepticism regarding the directive's practical implementation, stating that "even the minister does not believe in its feasibility." This highlights a potential disconnect between policy pronouncements and the realities of financial execution within the Cameroonian administrative structure.

Lawyers advising local communes or entities involved in local development projects in Cameroon should monitor the enforcement of President Biya's directive regarding the transfer of funds from the Ministry of Finance, as it directly impacts the financial viability and operational capacity of these local authorities under the Loi du 23 décembre 2024 portant fiscalité locale. Non-compliance could lead to contractual disputes or necessitate legal action to secure allocated resources.

Source: Original reporting via Actu Cameroun