SDF Says 2025 Finance Law Foreshadows Economic Hardship

By Tata Mbunwe

The Social Democratic Front party, SDF, has predicted tough times for Cameroonians in 2025, marked by an increase in fuel price and high cost of living.

In a statement that spells out the party’s position on the 2025 finance law recently adopted by Parliament, the SDF’s Second Vice National Chairman, Louis Kakdeu, warns of a gloomy 2025 for Cameroonians.

He says the 2025 finance law offers no hope of a turnaround from a 14 percent inflation recorded in 2024. The National Institute of Statistics however gives a lesser figure for inflation in 2024.

According to the finance law, Cameroon’s income and expenditure for 2025 stands at FCFA 7,317.7 billion.

This is a 0.5 percent increase from the 2024 budget, which stood at FCFA 7,278.1 billion.

“Upon analysis, the bill offers nothing tangible. Instead, new provisions foreshadow difficult times for citizens. Such an inclusive law should have been filtered through social partners supposedly grouped within the Economic and Social Council,” Louis Marie Kakdeu wrote.

SDF Says No Clear Economic Vision

He said the 2025 finance bill does not clearly outline Cameroon’s economic vision.

At the moment, the country is pursuing the national development strategy 2020 to 2030. It is part of Cameroon’s economic emergence vision for 2035.

The national development strategy’s goal is to improve conditions for economic growth and the accumulation of national wealth.

It also aims to improve living conditions for citizens and ensure access to basic amenities; and strengthen climate adaptation measures.

The SDF says the 2025 finance law falls short of helping Cameroon in achieving these ambitious objectives. This is because the budget is too small.

“Inflation increased in 2024 to 14% for food products, directly affecting citizens. To maintain the same standard of living as in 2024, the budget should have increased proportionally to inflation, by approximately FCFA 1000 billion. The budget of the Republic of Cameroon should have exceeded FCFA 8000 billion to achieve this objective. An increase of FCFA 39 billion compared to 2024 is ridiculous and insignificant for Cameroon,” the SDF Vice Chair wrote.

Increase in Cost of Living

Cameroon has seen a steady inflation in the prices of foodstuffs, basic goods and building materials since 2022, when the Russia-Ukraine war started.

This has pushed the cost of living up, contributing to keeping more than 38.6 percent of Cameroonians in poverty.

With the scorching inflation witnessed in 2024, the SDF predicts a further increase in food prices and transportation fares next year, if the government scraps fuel subsidies as planned in the finance law.

“In Cameroon, what is the government’s fiscal policy? Where are we headed? Can we vote for our meager FCFA 1,800 billion investment budget while allowing production costs to rise? If we produce more expensively in Cameroon, we will also sell more expensively. Transportation will also be more expensive with the announced increase in fuel prices. Where are we headed?” the SDF rhetorically questioned.

However, the government preaches the contrary.

Apparently reacting to the SDF’s statement on the 2025 finance law, the Minister of Finance, Louis Paul Motaze, dismissed claims that fuel prices will increase next year.

He explained that fuel subsidies will drop next year because of a fall in petrol prices on the world market and this will not affect local pump prices.

The price of petrol per liter in Cameroon is FCFA 840. The government instituted a 15 percent price increase in February 2024, after removing fuel subsidies.

Despite the SDF’s prediction of economic hard times for Cameroon in 2025, the government is projecting a 4.1 percent economic growth.

This will rate against 3.8 percent reportedly witnessed in 2024.