Ambassador Michael Stephen Hoza

40 Pages·2015·5.04 MB·English

A Publication of the Political and Economic Section,
US Embassy Yaounde, Cameroon
SYNDICATED RSS FEED
February 2015 Vol. 1 - Issue 1 ……. 1st Quarter, February 2015
Special points of interest:
U.S. Cameroon Relations…...

Page 2-4
Cameroon Budget 2015
Page 6-7
Cameroon must roar (Oped)
Page 12-
Oil and Gas
Page 119-21
Mining …..
Page 12-23
Agriculture
Page 25-25
Tourism…
Page 22-31
Zoom of Cameroon Infrastruc-
ture Projects…
Page 34-40
Companies in This Issue
Market Woman Inc (USA) P. 13
Ex-Im Bank (USA) P. 17
General Electric (USA) P. 18 “With one of the largest economies in sub-Saharan Africa and a landscape
rich in natural resources and biodiversity, Cameroon has the potential to
ECC (USA) P. 18
become an economic stalwart and serious regional player.”
Ex-Im Bank China (China) P. 18
Ambassador Michael Stephen Hoza
SHN (Cameroon) P. 20

Senate Foreign Relations Committee
September 24, 2013
Contact: Embassy of the United States, Political and Economic Section, Section Chief: Bianca Menendez │ Deputy: Dr. Derrin Smith
Address: 6050 Avenue Rosa Parks, P.o.Box 817 Yaoundé, Cameroon Editor: Mamouda Mbemap
http://yaounde.usembassy.gov/political_and_economic_section.html Tel: [phone] (ext 4491) Fax: Fax: [phone]

Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015
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Highlights
t Cameroon Economic Review—C.E.R. Page 2
h Cameroon-U.S. Relations - Brighter Economic Prospects

https://www.cameroon-tribune.cm/index.php?option=com_content&view=article&id=83432:cameroon-us-relations-brighter-economic-prospects-&catid=2:economie&Itemid=3
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m YAOUNDE (Reuters) and aviation. For instance, an American firm, Geovic, is currently in-
vesting over 400 billion dollars in mineral development in the East Re-
Cameroon 05 Août 2014 By Godlove BAINKONG gion of Cameroon. This is said to be the highest investment by an Amer-
E F ican firm in Sub-Saharan Africa. Other American companies like AES
or over 60 years now, the two countries have moved places in Sonel, Coca Cola, and SG Sustainable Oils Cameroon have made and
trade and investment, but they could do better. Economic co- continue to leave their mark in Cameroon. Efforts have been underway
operation between Cameroon and the USA dates as far back to make the investments reciprocal. For instance, in 2013, International
e as 60 years with much to show in terms of mutually-beneficial Multiracial Shared Cultural Organization's CEO, Fanck Weston led a
trade, investment and the improvement of the business climate. Although delegation to Cameroon to present America's investment opportunities to
d statistics show that trade between the two countries over the years has potential investors here.
been negative for Cameroon, as it imports more than it exports to USA,
the exchanges have however been stable. 60 years of economic cooperation, even though the ratio of gain is not
n one: one, is time ripe enough to draw a balance sheet, celebrate where
Cameroon, reports say, does not figure yet on the list of first ten African need be and strengthen cooperation for more gains. And the first-ever
countries that have tapped maximum benefits from the 2000 American U.S.-Africa Summit currently going on in Washington DC is a forum par
u
legislation, the Africa Growth and Opportunity Act (AGOA), owing to excellence to chart the way forward. Fortunately, it is holding on the
its inability to produce quantity and quality products highly needed in theme, "Investing for the next generation." And for the future genera-
o the American markets. Experts say the absence of a regular consultative tions to reap more benefits from the cooperation therefore, there is need
framework between the two countries led to the reticence of America to surmount challenges like local processing of products before exports,
which would have otherwise facilitated the clearance of certain hinder- improvement of the business climate which has been a persistent con-
a ances to the smooth flow of goods and services. cern of the Americans and the easing of administrative procedures for
investment. In return, the American government could seize the oppor-
Y Reports in 2011, show, an improvement in trade between the two coun- tunity of the rich natural resources and the country's socio-political sta-
tries as their volume of trade grew by 26 per cent. Today, there is notice- bility to start business for win-win cooperation.
able interest of American companies in Cameroon notably in sectors like
mining, agriculture, telecommunications, hotel management, agriculture

Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015
Highlights
Cameroon Economic Review—C.E.R. Page 3
Cameroon U.S. Relations: Untapped Opportunities
(Source: Original New African, http://www.ipsos.co.ke/NEWBASE_EXPORTS/Tullow%20Kenya%
President Paul Biya, Ambassador Hoza, Gregory Thome (Deputy Chief of Mission), John P. Scudi (Defense Attaché). Dr. Charles Morrill (Management
W
ith a strong increase in the volume of bilateral trade over the which remains its main trading partner and it is France's second largest
past three years, US exports to Cameroon have now more customer in the Franc Zone, after Cote d’Ivoire, France is Cameroon's
than doubled, the number of Cameroonian exporters entering number one supplier, with a market share of 30%.
the U.S. market has risen exponentially, and trade relations
However, U.S. private investors in Cameroon are showing increasing
between Cameroon and the U.S. are strengthening. Yet there are many
interest in the country because it serves as a vital gateway to accessing
more untapped opportunities, Cameroon is the largest economy in the
not only the regional market of the CEMAC, but also, as a crossroads
six-nation Central African Economic and Monetary Community (CEMAC),
leading to West, East and Southern Africa, to the entire continent. There
with a population of over 19 million.
are new opportunities emerging for Cameroon, which is already party to
According to U.S. International Trade Commission estimates, the volume strong partnerships with Europe and Asia.
of bilateral trade between Cameroon and the U.S. in 2011 increased by
VOLUME OF BILATERAL TRADE UP BY 26%
26% compared to 2010. Two-way trade between the two countries was
almost $700 million in 2013. 'That is good news, but it could be a lot bet-
Trade relations between Cameroon and the U.S. continue to go from
ter still.
strength to strength and the U.S. and Cameroon governments are work-
ing closely towards improving and increasing trade between the two
This is precisely the view of the Cameroonian and US governments. To
countries.
date, Cameroon's strongest trade rela- tions have been with France,

Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015
Highlights
Cameroon Economic Review—C.E.R. Page 4
……...Gregory Thome, the deputy chief of mission in the U.S. Embas- emerging economy by 2035.
sy in Yaounde said, "There are many other huge untapped opportuni-
ties and the Embassy remains on hand to help the Cameroonian peo- BUSINESS OPPORTUNITIES
ple to find opportunities through the African Growth and Opportunity
Act (AGOA), as well as other available tools." The next AGOA summit Either on the U.S. Chamber of Trade's (AmCham's) initiative, or by
is in 2015 [The Summit will be held in Gabon]. Implemented in 2002 national governments' invitation, delegations of U.S. Investors visit
during the Clinton Administration, and last renewed in 2004 (although Cameroon under the framework of an exploratory mission that culmi-
revised subsequently), this trade agreement allows some African nates in the signing of partnership agreements with the local busi-
Source: Agoa.info
products in the artisan, textile and agri-food industries to enter U.S. ness community. Gregory Campbell, who led one of these delegations,
territories without customs tariffs. Around 40 countries have been summarized that the interest in Cameroon held by U.S. investors is
recognized as eligible for AGOA, including Cameroon. Even though explained by the mix of "business opportunities, the dynamism of the
Cameroon has not yet seized all the opportunities in this law, the US Cameroonian economy and the institutional and political stability that
and the Cameroonians are working on it together. Cameroon enjoys".
The first technical workshop on support for businesses trying to pen- New Cameroonian laws provide Incentives to further encourage in-
etrate the U.S. market was held in April 2014 in Yaounde. The goal was vestors, and improve the business climate. "We want to facilitate
to help local businesses meet U.S. standards in order to get the most investment between the U.S. and Cameroon and ensure that they
out of the business opportunities AGOA presents, which is likely to be understand one another," says Eddie Ford Brown, President of the
given new impetus in 2015, according to President Obama's wishes. Cameroonian branch of AmCham. Total trade between the U.S. and
Furthermore, the AGOA summit next year is to be held in Yaounde. Cameroon has steadily increased, and Cameroon can expect a regu-
Cameroon organized a U.S.-Cameroon economic forum in July 2013 in lar increase in U.S. investors in the near future, the AmCham pro-
New York. It was a broad marketing campaign aimed at promoting jects. Among the most attractive sectors are infrastructure, agricul-
Cameroon's image in the U.S., its strengths and opportunities ture, construction, energy and, above all, mining.
(notably in agri-industry, tourism and infrastructure); seeking oppor-
tunities for national companies and producers through setting up For example, the bauxite reserves of Minim-Martap are the target for
business contacts; and finally, boosting U.S. investments in Came- US investors to invest CFA3,000 bn ($6.2m) according to Janet E.
roon. As part of the "Major Achievements" program to which Came- Garvey, former US Ambassador to Cameroon. The agriculture, public
roon was committed by its President, Paul Biya, under the framework works, processing, medicine, energy, education and environmental
of the Emerging Cameroon 2035 roadmap, the “Cameroon Economic sectors are also of great interest. More than ever, Cameroon is mak-
Days” in the US serve to assist in the creation of new economic part- ing itself the investment destination of choice for international Inves-
nerships between the business communities of the U.S. and Came- tors. The U.S., overtaken by China and France, is more than ever de-
roon. This is aimed at speeding up economic growth and continuing termined to catch up with its competitors.
the implementation of the President's efforts to make Cameroon an

Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015
Macro Economic Indicators
Cameroon Economic Review—C.E.R. Page 5
2015 State Budget: Consolidating Investments in Priority Sectors (Sources::www.cameroon-tribune.cm/
Priority Areas
P
M Philemon Yang on November 25, 2014 presented the strat- With an increase in the Public Investment Budget (PIB) from FCFA
egies in government's economic, financial, social, and cul- 1,000 billion in 2014 to FCFA 1,150 billion in 2015, PM Yang noted that
tural programme for the next fiscal year. 2015 will mark the growth-induced sectors will be targeted to give the Head of State's
end of the first period of the triennial results-based pro- emergence programme a significant boost. Infrastructure develop-
gramme budget begun in 2013. The government of Cameroon is put- ment, the Prime Minister said, will receive special attention notably
ting performance strategies in place to use the FCFA 3,746.6 billion with goal to qualitatively and quantitatively improve the national road
proposed State budget for next year to consolidate investments in network so that they comply with relevant technical specifications as
priority sectors of the economy. Presenting the 2015 government's well as completion of studies on others.
economic, financial, social and cultural programme for the next fiscal
year at the National Assembly yesterday November 25, Prime Minis- The construction of the first section of the Douala-Yaounde motor-
ter, Philemon Yang, said nothing will be left to chance to attain objec- way; the actual start of works on the Kribi-Edea motorway, the first
tives set during the start of the three-year programme budget. phase of which is the Lolabé-Kribi town section and the continuation
of construction works on the second bridge over the Wouri, the PM
The 2015 Budget said, will be upheld. Construction works will be pursued on giant en-
The FCFA 3,746.6 billion 2015 State budget represents an increase of ergy projects like Lom-Pangar, Mekin and Memve'ele. Meanwhile, in
FCFA 434.6 billion in absolute terms and 13.12 % in relative terms the basic education sector, government intends to recruit some
from that of 2014 which is FCFA 3,312 billion. The increase, Mr. Yang 3,060 new general education teachers to reduce the number of PTA
said, is based on government's anticipated 6.3 per cent Gross Do- teachers in government primary schools and equip 50 literacy cen-
mestic Product (economic growth rate) in 2015 up from 5.8 per cent tres as well as build 40 new staff residential houses. The Head of
in 2014. This is coupled with expected net increase in budgetary re- Government while praying all stakeholders to put hands on deck for
sources with the coming into force of the Law of 18 April 2013 laying an optimal execution of the budget for the good of all noted that "the
down private investment incentives in Cameroon. development of a nation is not rigid; it requires common effort, effec-
tiveness, efficiency, but mostly a radical change in behavior and
Sources of Income mentality."
As usual, 2015 will fetch its funds from internal and external sources.
Internal resources stand at FCFA 3,342 billion 48 million, against What Balance Sheet For 2014?
FCFA 2,983 billion in 2014. The Head of Government said the money
will come from oil royalties expected to mobilize FCFA 774.9 billion as In 2014, government, the PM said, created 89,993 temporary or sea-
against FCFA 733 billion in 2014, non-oil revenue to bring in FCFA sonal jobs and supervised 42,675 apprentices in vocational training
2,247.58 billion as against FCFA 1,970 billion in 2014. The State is also centres. Research allowance, he disclosed, were paid to University
expected to issue bonds in 2015 amounting to FCFA 320 billion up lecturers amounting to FCFA 9.6 billion as well as excellence premi-
from FCFA 280 billion in 2014. Meanwhile, external resources evaluat- um granted by the Head of State to the best students in Cameroon
ed at FCFA 404 billion 117 million as against FCFA 329 billion in 2014, universities amounting to FCFA 4.5 billion. Other achievements includ-
will be furnished by loans (FCFA 345 billion 917 million against FCFA ed the electrification of 143 villages and connection of 25,000 house-
274 billion in 2014) and grants (FCFA 58 billion 200 million up from holds through the extension of the North and South interconnected
FCFA 55 billion in 2014). networks, electrification of 87 new localities across the ten regions
as well as the completion of 2,000 connections to households in 33
villages in the North, North West, Centre and South West regions.

Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015
Macro Economic Indicators
Cameroon Economic Review—C.E.R. Page 6
Cameroon’s Budget 2015: Snapshot

2015 2014
s
Total Budget $7.4 billion $6.6 billion
Increase from 2014 in absolute value 13,12% -
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GDP Growth assumption 6,3%, 6% (actually realized 5.1%)
o Inflation assumption 3% 2.9%
Investment Budget $2.3 billion $2.0 billion
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Consumption budget $4.3 billion $ 4.0 billion

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c Cameroon 2015 Budget: Allocation by Ministries
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Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015
Macro Economic Indicators
Cameroon Economic Review—C.E.R. Page 7
WATCH LIST
Market capitalization in CFA

Cameroon’s Top Economic Sectors to Watch Cameroon Top Companies to Watch

1) Agro-industry 1 SONARA Oil & Gas

2 SABC Beverages
2) Energy (Oil and Gas)
3 TOTAL Cameroon Oil & Gas

4 Eneo Cameroon Electricity
3) Mining
5 Group CFAO Services
4) Public Sector (Infrastructure, utilities) 6 MTN Cameroon Telecom

7 SODECOTON Agroindustry
5) Transport
8 CAMTEL Telecoms

9 Afriland First Bank Financial Services
6) Services
10 Orange Cameroon Telecoms

11 ALUCAM Manufacturing
7) Manufacturing
12 Oil Libya Oil & Gas
8) Telecommunication 13 Group PHP Agroindustry

14 CDC Agroindustry
9) Financial Services
15 CIMENCAM Manufacturing

16 Dangote Cement Manufacturing
10) Tourism

Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015
Macro Economic Indicators
Cameroon Economic Review—C.E.R. Page 8
Rectifying the ordeal caused by the underutilization of the Public Investment Budget

Sources: http://www.africanliberty.org/content/rectifying-ordeal-caused-underutilisation-public-investment-budget-cameroon-chofor-che#sthash.qxVCcLdJ.dpuf
of a befitting transportation, educational and telecommunications
By Chofor Che Christian-Aimé
network. Many development experts home and abroad are indeed
University of Cape Town, South Africa
5 December, 2014 baffled. There is an argument especially among reporters of local
C papers that state agents are afraid to use these credits allocated to
ameroon has been faced with a serious underutilization them for public investment because of the ongoing ‘operation
of the Public Investment Budget (PIB) for several sparrow hawk’, an operation put in place by the state to track
years now. Funds apportioned for public investment in down and arrests corrupt state agents.
Cameroon have been puzzlingly underutilised while
the state struggles under the burden of serious developmental and In addition to the above reason, there is no gainsaying that the
infrastructural problems. In 2013, the rate of execution was lower administrative bottlenecks in the execution of public contracts in
due to the putting into place of the Budget Programme whose Cameroon have become very cumbersome. Since the creation of
modus operandi has not been fully understood by many state the Ministry of Public Contracts, the execution of public con-
agents. The Budget Programme warrants that the state programs tracts in the state has become a nightmare. According to a Douala
and budgets investment projects for five years rather than for a based Barrister at Law, contractors have to go through cumber-
financial year as previously. The underutilisation of the PIB is some procedures including the payment of heavy bribes. By the
indeed an aberration for a state considered as poor and heavily time bribes have been paid to officials at the central and regional
indebted. government levels, contrac-
Is it that there is a problem tors are unable to execute
with the development plan- Source: IMF the contracts because of
ners in the country? Do the lack of adequate funds.
Members of Parliament and Such acts have led to the
Senators vote bills into law abandonment of various
without reflecting on the development projects all
outcome? Are the state over the national territory.
agents called upon to exe- It is thus no secret that the
cute the PIB inefficient or problem with the poor exe-
is it that the cumbersome cution of the PIB in Came-
government architecture roon is multifaceted. De-
slows down utilisation of spite the fact that some
the PIB? state agents are afraid of
getting arrested for corrup-
In 2013, the Cameroonian tion, it is also clear that
Minister of Public Con- lack of professionalism
tracts, Abba Sadou, stated remains a serious problem
that 6,658 public contracts in executing the PIB. The
were signed in 2013, which State would have adequately schooled major budgetary operators
represented 90% of planned procurement for that budgetary peri- with the newly introduced Budget Programme before making it
od. According to a 2013 report by the website of a group focus- operational. Members of the National Assembly need to reflect
ing on economic affairs in Cameroon called Business in Came- more on certain bills before voting them into law. In as much as
roon, Abba Sadou was interviewed over Cameroon Radio and state agents remain ignorant about this system, the PIB will re-
Television (CRTV), with respect to the reason behind the limited main underutilized.
use of the PIB for the previous year 2012, which stood below a
50 % execution rate. The Minister opined that the poor execution A free society warrants that limited government should strive for
of the PIB fell on the shoulders of multiple state actors and not prosperity and development. This also means that the size of gov-
only on the shoulders of the Ministry of Public Contracts. ernment should be small and effective. What we observe in Afri-
ca today and Cameroon in particular is large government. Many
In 2014, 1,000 billion Fcfa was allotted for the PIB, in accord- have wondered why the Ministry of Public Contracts was created
ance with the 2014 Finance Act. Business in Cameroon reports in in the first place, especially as Cameroon still retains the Regula-
an op-ed dated the 28 of October 2014 that, according to a report tory Agency for Public Contracts. If there is a reduction in the
from the Ministry of the Economy, the rate of execution for the number of ministries including the dissolution of Ministry of
year 2014 stands at 36 %. In the North regions of the country, the Public Contracts, the state would have fewer administrative bot-
rate of execution stands at 50. 2 %. In the West region, the rate of tle necks and a faster rate of the execution of the PIB.
execution is 62.2 %. In the Central region which houses the polit-
ical capital Yaoundé, the rate of execution stands at about 19 %. Chofor Che is an analyst at LibreAfrique.org, an associate with AfricanLiberty.org and an
With these poor executions of the PIB, the country cannot boast integral part of the Voice of Liberty initiative. He is also a Doctoral Law candidate at the

Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015
Macro Economic Indicators
Cameroon Economic Review—C.E.R. Page 9
Cameroon Launches Three-Year Economic Emergency Plan

Sources: http://www.cameroonhighcommission.co.uk/docs/Le_Temps_Des_Realisations_no22.pdf
T
he three-year development plan earmarked for execu-
tion by the government concerns all ten regions and 4- Roads
will cost FCFA 925 Billion. Seen as an innovative pro- Since farm-to-market roads have been a major headache for long,
gramme, the plan which has seven sectors also contains there will be two major roads to ensure accessibility to produc-
the names of banks that will finance the projects, as well as the tion localities within the next three-years.
conditions for success and follow-up so as to guarantee the re-
quired results. President Paul Biya has equally in the emergency 5- Energy
plan envisaged special projects that will be specific to parts of the
country affected by specific problems like the Far North which This initiative targets, principally the reinforcement and stabilisa-
has of late suffered from tion of electricity
cross-border insecurity Banking Support for the transport lines so
and other ills like as to
three year emergency plan
floods. Thus, the key ameliorate light-
areas that have been Banking Institution Amount ing in major ag-
cited in the plan are: glomerations. As
such, the Edea-
1- Urban development. Yaounde lines
and the Edea-
1 Deutsche Bank $17 million
Two major concerns Logbessou-
which are the rehabilita- Bekoko passing
2 BGFI Cameroon $200 million
tion of the lighting sys- through Douala
tems in the towns of will be the sec-
3 Ecobank $70 million
Douala and Yaounde. It tions that will
intends to provide resi- attract attention
4 Standard Chartered Bank Cameroon $600 million CFA
dential neighbourhoods, within the pro-
zones with social infra- gramme.
structure, and others 5 Bank Atlantic Cameroon $380 million
with electricity in the 6- Water
near future. In addition, all ten regional headquarters are going to
witness the construction of 100 low-cost houses to ease the prob- In concrete terms, 30 second secondary towns will be provided
lem of accommodation which has of late been a nightmare espe- with potable water facilities while some 100 boreholes will be
cially in conglomerates in the country. constructed in each of the ten regions of the country.

2- Health 7- Security

Regional headquarters in the Cameroon that have until now not Additional police and gendarmerie stations will be constructed in
benefited from the services of referral hospitals will have the Yaounde and Douala. The growing nature of the population in
opportunity to see such structures put in place within the next both towns has led to an increase in insecurity, thereby necessi-
three years. However, the nature of the buildings to house the tating the reinforcement of protection measures for people and
hospitals will vary, but the other information in the document is property in the two towns as well.
that the technical levels of the General hospitals in Douala and
Yaounde as well as the University Teaching Hospital at the Uni- Evaluated at FCFA 925 billion the “Emergency Plan for the Ac-
versity of Yaounde I will be upgraded. celeration of Growth” has been endorsed by five banks namely:
BGFI Bank Cameroon, Atlantic Bank Cameroon, Standard
3- Agriculture and Livestock Chartered Bank Cameroon, ECOBANK, and the Deutsche Bank
Madrid. Such facts alone are an indication that reflections on the
A special programme for the distribution of seedlings, fertilizers emergency plan have been profound enough to ensure that they
and farm tools, as well as pastoral and are realised within the stated time. That must have explained why
fishing support depending on the agricultural zones being consid- the Head of State called for seriousness and responsibility in the
ered, will be offered to farmers. Given the need for marketing the award of contracts and the execution of the projects.
produce, the construction of markets in the ten regional head-
quarters and the provision of slaughter houses and storage facili-
ties have been envisaged to help the farmers.

Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015
Macro Economic Indicators
Cameroon Economic Review—C.E.R. Page 10
Cameroon current account vs peers
: IMF 2014

Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015