ECONOMY
Cameroon is blessed with an abundance of natural resources, including in the agriculture, mining, forestry, and oil and gas sectors. Cameroon is the commercial and economic leader in the sub-region, though regional trade, especially with Nigeria, remains under-realized.
Cameroon's economy is highly dependent on commodity exports, and swings in world prices strongly affect its growth. Cameroon's economic development has been retarded by economic mismanagement, pervasive corruption, and a challenging business environment (for local and foreign investors). Cameroon remains one of the lowest-ranked economies on the World Bank's annual Doing Business and similar surveys and regularly ranks among the most corrupt countries in the world. Over the last three years, GDP growth has averaged 3%, which is far below the population's expectations and insufficient to meet the Millennium Challenge goals. Despite boasting a higher GDP per capita than either Senegal or Ghana, Cameroon lags behind these two countries in important socio-economic indicators, including in health and education. The government has professed a determination to foster urgent economic growth and job creation, and there is a decided up-tick in interest in the mining sector, but it is not yet clear how well these promises will translate into improved performance.
For a quarter-century following independence, Cameroon was one of the most prosperous countries in Africa. The drop in commodity prices for its principal exports--oil, cocoa, coffee, and cotton--in the mid-1980s, combined with an overvalued currency and economic mismanagement, led to a decade-long recession. Real per capita gross domestic product (GDP) fell by more than 60% from 1986 to 1994. The current account and fiscal deficits widened, and foreign debt grew.
The government embarked upon a series of economic reform programs supported by the World Bank and International Monetary Fund (IMF) beginning in the late 1980s. Many of these measures have been painful; the government slashed civil service salaries by 65% in 1993. The CFA franc--the common currency of Cameroon and 13 other African states--was devalued by 50% in January 1994. The government failed to meet the conditions of the first four IMF programs. A three-year Poverty Reduction and Growth Facility (PRGF) approved by the IMF in October 2005 will end by the end of 2008. It is not clear whether the Fund will continue with lending after this date.
Official statistics indicate that inflation is under control (projected by the World Bank at 2.9% in 2008), but anecdotal evidence suggests Cameroonians are frustrated and perceive their spending power is weakening. Public frustration over rising prices was partly to blame for an outbreak of social unrest and violence in many Cameroonian cities in February 2008. In March 2008, the government announced a reduction in food import tariffs and other measures designed to reduce the cost of basic commodities.
The government has made halting progress on its privatization program. The National Water Utility Corporation (SNEC) was split into two entities. CAMWATER--to handle infrastructure--remains in government hands, and a reformed SNEC is now owned by a consortium led by the Moroccan Water Utility. Plans to privatize national air company CAMAIR and national telecom CAMTEL, however, have repeatedly faltered because of political sensitivities and concerns about corruption. CAMAIR was declared officially defunct and ceased to operate in May 2008. CAMTEL remains under the control of the Ministry of Posts and Telecommunications.
The European Union remains Cameroon's main trading bloc, accounting for 36.6% of total imports and 66.1% of exports. France is Cameroon's main trading partner, but the United States is the leading investor in Cameroon (largely through the Chad-Cameroon pipeline and energy provider AES Sonel). According to press reports, China recently became the number one importer of Cameroonian exports, especially unprocessed timber.
For
further information on Cameroon's economic trends, trade, or investment
climate, contact the International Trade Administration, U.S.
Department of Commerce, Washington, DC 20230 and/or the Commerce
Department district office in any local federal building.
GDP (2007): $20.93 billion (at official exchange rate).
Annual real GDP growth rate (2007): 3.2%.
Natural resources: Oil, timber, hydroelectric power, natural gas, cobalt, nickel, iron ore, uranium.
Agriculture (2007): 44.3% of GDP. Products--timber, coffee, tea, bananas, cocoa, rubber, palm oil, pineapples, cotton. Arable land (2005 est.)--12.54%.
Industry (2007): 15.9% of GDP.
Services (2007): 39.8% of GDP.
Trade (2007): Exports--$3.7 billion: crude oil, timber and finished wood products, cotton, cocoa, aluminum and aluminum products, coffee, rubber, bananas. Major markets--European Union, CEMAC, China, U.S., Nigeria (informal). Imports--$3.6 billion: crude oil, vehicles, pharmaceuticals, aluminum oxide, rubber, foodstuffs and grains, agricultural inputs, lubricants, used clothing. Major suppliers--France, Nigeria, Italy, U.S., Germany, Belgium, Japan.
