CI-NEWS

Public procurement: Government rewards most productive banks.

2020-03-03

No: 475

Public procurement: Government rewards most productive banks.

The five most productive banks were recognized in Douala during a working dinner hosted by the Minister of Finance, Louis Paul Motaze, on behalf of the government.

During the recognition dinner, the Minister highlighted that the banks played a key role in mobilizing the FCFA 643 billion the state raised in its public procurement efforts in 2019. A performance, the government representative insisted, was made possible thanks to a win-win partnership established between the state of Cameroon and Public Procurement Establishments and investors like the banks. It was thanks to this performance that the February 20, 2020 working dinner celebrated the Ecobank Cameroon, Society Général Cameroon, BICEC- Cameroon, Afriland First Bank and Standard Chartered Bank. These five banks stood out from among the 20 approved to render services to the state.

Key aspects used to evaluate the finance institutions include input made to consultative frameworks between the state and the establishments doing business with the state, commitment to auction sessions, amount effectively mobilized and the efforts put in to develop the secondary market. Public procurements plans for the 2020 fiscal year were also unveiled during the event.

Minister Lous Paul Motaze, while prospecting among the bankers, emphasized that those doing business with the state need not to fear as its market space is quite stable. “In 10 years, we have built a rich, solid and fruitful partnership which has made it possible to mobilize nearly FCFA 2, 000 billion, to cope with the state treasury problems and to finance certain investment projects. For all these operations, the Treasury did not fail to pay its dues nor did it record any late reimbursements”, stressed the Finance boss.

I n addition to steady repayment, another attractive element he raised is the juicy interest rates and the positive steps recorded by the various projects that the State has been investing in. Most of government structural projects that fall in line with vision 2035, he said, are already in the second phase. At this stage “more hands need to come on board for smooth funding”.

In its new debt strategy, therefore, the government plans to gradually increase the share of domestic financing to reach 30 per cent in the medium term. This is still possible as the overall debt of the State stands at FCFA 8, 500 billion, accounting for about 38% of the Gross Domestic Product (GDP).

This is just above half the ceiling set by CEMAC. It fixes the maximum of the public debt of the States at 70% of the GDP.

Culled from Cameroon Insider

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Public procurement: Government rewards most productive banks.