Cameroon

Capital: Yaounde

Local time:
It is %T:%M %A in Yaounde

GDP growth rate: 4.8% in 2013

FDI stock: 4 828 million USD in 2010

Economic trends

With a population of 20 million inhabitants and a strategic geographical position on the Gulf of Guinea, which makes it the natural gateway into the landlocked countries and regions of Central Africa (Chad, Central African Republic and northern Congo), Cameroon is undoubtedly an influential country within the economic and monetary community of Central Africa.

The drilling in the offshore oil deposits, since the early 1970s, has made of Cameroon one of the most prosperous nation in tropical Africa; however, economic mismanagement and the overvaluation of the currency have led the country into recession during the last few years. The current account balance has been impaired, fiscal deficits have increased and the foreign debt has grown. The government has committed itself into a series of economic reform programs, supported by the World Bank and the IMF. However, Cameroon's public resources are still characterized by a strong dependence on its oil income, regardless of the fact that the country's oil production is diminishing. Furthermore, Cameroon is not yet able to attract enough foreign investment, mainly because of insufficient infrastructures and for having one of the highest levels of corruption in the world.

The international financial crisis has hit the Cameroonian economy bady, with sharp declines in export values ​​of many productions. Growth has been over 3% in 2011 but the country remains at the bottom of the World Bank rankings on the business environment (161st out of 183) and it is experiencing an unemployment rate of 75% among young graduates. The International Monetary Fund intervened in both 2010 and 2011 to support the economy, providing a sum of EUR 106 million to help deal with the aftermath of the crisis. Strengthening the Cameroonian banking system is also necessary and will be among the development priorities for 2012.

Main branches of industry

The primary sector contributes nearly 30 % to the GDP and employs approximately 50% of the active population. Before the initiation of the oil trade (which alone today represents 7.4% of the GDP), agriculture was the country's economic pillar. Cameroon remains one of the world's leading producers of certain foodstuffs, namely cocoa, coffee, bananas, palm products, tobacco, rubber and cotton. Fishing and forestry are two of the country's additional important activities. Cameroon's mineral resources include bauxite ore and iron.

The secondary sector accounts for aroun 20 % of the GDP. The country's main industries are food processing, sawmill, the manufacture of light consumer goods and textiles.

The tertiary sector accounts for nearly half of the GDP and it benefits from the economic activity created around large-scale energetic projects. The services sector is booming, driven by the sectors of telecommunications, air traffic and transport.

International trade

Cameroon is open to international trade. It is a member of the Commonwealth, the Free Trade Zone  and the CEMAC (Central African Economic and Monetary Community), as well as the Economic Community of Central African States (ECCAS). The share of foreign trade in Cameroon in relation to its GDP is around 50%.

Its three main export partners are Spain, with more than 18% of exports going to this country, China (12%) and France (over 8%). The main export commodities are mineral fuels, oil, wood, coal, cocoa, cotton, and aluminum. Its three main import suppliers are France (around 17% of imports), China (9%) and Equatorial Guinea (9%). Cameroon mainly imports mineral fuels, oil, cereals, vehicles, machinery, electrical and electronic equipment.

The European Union is Cameroon's primary trade partner, accounting for more than 50% of its trade (apart from oil). On January 15, 2009, the two entities signed an economic partnership agreement. Consequently, Cameroon has committed itself to liberalize 80% of its imports from this area over a period of 15 years. For some years now, eastern Asian countries (especially China, Japan, India and Thailand) have been reinforcing their trade ties with Cameroon. Today, this zone represents almost 20% of the country's total trade.

Due to the massive import of food products, the country's trade balance remains in deficit. Like in 2011, Cameroon has to improve its level of openness in 2012, in order to improve its foreign trade performance.