By Peter Apps and Bate Felix
Cameroon's Prime Minister sees his country's economic growth accelerating on new mining and infrastructure projects, he said on Thursday, July 3, 2008 raising the prospect of an international bond issue. Ephraim Inoni told Reuters in an interview he expected growth to reach 6-6.5 percent in 2009 against 4-5 percent in the current year. The International Monetary Fund says it expects 6.5 percent growth across Africa in 2008.
"We are expecting the growth from major sectors like mining and infrastructure projects like the port and are in the process of building a new stadium," he said on the sidelines of a Commonwealth Africa business event in London.
Western mining firms are stepping up cobalt and nickel mining in Cameroon, part of a broader boom in production across the continent driven by soaring demand from emerging Asian economies.
Ghana and Gabon both issued Eurobonds last year, and while no African country has yet come to market in 2008 further issues are expected from Kenya and Uganda. Inoni would not give a timescale or potential size for any issue, but said it was being considered.
"The Minister of Finance is working on that," he said.
Like many other countries across Africa and around the world, Cameroon has struggled in the face of spiralling food and fuel prices. In February, at least 24 people were killed in protests that were linked partly to ride in living costs. Human rights activists put the death toll at 100.
The government raised state salaries and suspending customs duties on basic foodstuffs. Inoni said they had also imposed price controls and subsidies to limit the impact of rises on the population.
SUSTAINABLE?
"The government has put in a system of controls so that market prices do not rise above certain levels," he said. "Oil prices are now above $140 (a barrel) but we have maintained prices to levels where they were when a barrel was at $80."
But there were limits to how much price support the government could provide, he said.
"I do not think that if prices go up to $200, we will be able to sustain," he said. "We are only praying that it stays at this level. But I do not think they will go that high."
Overall, he said the West African country's economy was in good health but complained international coverage of Africa concentrated too much on its handful of wars such as Somalia and eastern Democratic Republic of Congo, sometimes deterring investment.
He said he would not directly criticise Zimbabwean leader Robert Mugabe beyond repeating the sentiment of the recent African Union meeting in Egypt which called on him to negotiate with the opposition after a widely condemned election.
Leaders of the G8 industrialised nations will discuss the sharpening sanctions against Zimbabwe at a meeting in Japan next week, a German government official said on Thursday.
"Our policy in general is that we do not criticise people," Inoni said. "It is their government. I think the position taken by African countries... in Egypt is fairly reasonable although it may not be considered hard enough. We will see what the G8 will decide on Zimbabwe." // Reuters
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