Cameroon, AEPRP, fertilizer subsector reform program

(1) The GRC will eliminate government fertilizer subsidies through the mechanism of a temporary Fertilizer Subsidy Fund, financed by the GRC and administered by the commercial banking system. Over a four-year period, the current fertilizer subsidy of approximately 65% will be gradually reduced - through steps of 45%, 30%, and 10% to zero. (2) To encourage private sector fertilizer marketing, the GRC will remove restrictions on the importation of fertilizer materials and will establish a Fertilizer Credit Fund which will provide credit for commercial importation and distribution of fertilizer. Disbursement will be in tranches contingent upon successful GRC performance. TA for studies and monitoring of these reforms will be provided under Project 6310063. (Abstract is based in part upon PD-BBI-211, the Project Paper for 6310063.)