The Entrepreneur - Cameroon's Premier Economic & Business Journal

World Bank sees Cameroon's 2012 growth at 5.5 percent

By Tansa Musa and Bate Felix

Cameroon's economy is expected to grow by 5.5 percent in 2012 despite the Arab spring and a sovereign debt crisis that has hurt the European zone, the central African nation's most important export partner, a World Bank official said on Monday. Non-oil economic activities particularly growth in the primary and tertiary sectors, which helped Cameroon's economy grow in 2011 to 4.1 percent, will be the main drivers, World Bank's region lead economist Raju Jan Singh, told a news conference. Singh said the economic momentum observed in Cameroon, the Central African region's largest economy and gateway port, was expected to carry over into 2012 due to various infrastructure projects. "Furthermore, the trend in declining oil production is expected to reverse. As a result, Cameroon economic growth could amount to 5.5 percent in 2012," Singh said.

IMF Executive Board Consultation with Cameroon

....The economy continues to recover from the impact of the global crisis, and inflation remains low. Real GDP growth in 2010 is estimated at 3.2 percent, up from 2 percent in 2009, despite a drop of about 12 percent in oil output. Average annual inflation was contained at 1.3 percent, compared with 3 percent in 2009. Food price inflation was 1.2 percent in 2010, and the recent sharp increase in international commodity prices has so far had a limited impact. The external accounts have benefited from the global economic recovery. The current account deficit (including grants) declined to 2.8 percent of GDP, from 3.8 percent in 2009.

...The country remains dependent on commodities for export earnings and fiscal revenues and is thus vulnerable to external shocks, as seen during the recent global financial crisis...

...The fiscal accounts show a limited overall budget deficit in 2010. Total revenue was close to the supplementary budget target, because the oil revenue windfall generated by the recent oil price surge compensated for a shortfall in nonoil revenue. Nonetheless nonoil government revenue, as a ratio to nonoil GDP, remains among the lowest of sub-Saharan African oil exporters. Some efforts were made in 2010 in terms of arrears clearance to deal with the legacy of PFM problems incurred in 2009...More

Cameroon eyes 50 percent hike in oil output in 2012

By Tansa Musa

Cameroon could produce some 36.5 million barrels of oil next year, the equivalent of 100,000 barrels a day and over 50 percent up on the "conservative" estimate of the central African state's 2012 budget, a state oil company official told Reuters. The senior National Hydrocarbons Corporation (SNH) official said two new wells were expected to go into production during the first quarter of 2012. "What you are seeing in the finance bill is just a very conservative estimate," said the official who requested anonymity as he was not authorised to talk to reporters. "Two oil wells were supposed to have gone into production this year but were delayed for technical reasons. But I can assure (you) that all measures have been taken to make sure the two go operational in the first quarter of next year."

Cameroon: Africa's Unbridled Beauty and Continental Tourism Destination

By Stephen Njumbe Sako

Tourism might not be a money-spinning sector in Cameroon, yet the country's potentials clearly point to tourism as an important industry. Cameroon, known variously as"Africa in miniature, "Melting pot of Africa" and "Africa in microcosm" is endowed with rich attractive touristic potentials as it occupies an unenviable position of 148 out of 181 in world classifications, in terms of the relative contribution of tourism to national economy. Despite this low ranking, Cameroon is endowed with huge potentials from the peaks of Mount Cameroon an active volcano in the Southwest, to the underbelly of Lake Nyos in the Northwest, and from the beach shores of Kribi to the Kapsiki peaks in the northern parts of the country. Cameroon's eastern forest fringe being part of the Congo Basin Forest brings with it, unique natural ecological asset unrivaled in many parts of the world.

Cameroon Economic Outlook

Cameroon, a relatively small and mature oil producer, where oil production is declining with depleting reserves, seems to be relying on alternative sources of revenue to marshal its economic grwoth. Following recent measures taken by the authorities to stimulate domestic production, real GDP growth in 2010 is estimated to have reached 3.2 percent, compared to 2 percent in 2009. Most of this recovery was driven by the tertiary sector, which accounted for more than half of the estimated growth. The sector benefitted from a pick-up in timber-related transport and continued strong activities in mobile telephony stemming from a greater use of fiber optic and the roll-out of new products...More

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Cameroon oil production rises 1.9%

By Tansa Musa

Cameroon's oil production rose by 1.9 percent in the second-quarter of the year to 5.36 million barrels compared with the previous quarter, Cameroon's National Hydrocarbons Corporation (SNH) said on Monday, August 22, 2011. SNH exploration manager Simon Tamfu said the increase was attributed to improved production at independent Anglo-French oil and gas explorer Perenco's 525,000 barrels in the quarter. Total EP PA> remains the Central African nation's leading producer with 3.40 million barrels in the quarter, followed by Pecten Cameroon, a U.S. equity company in which Shell and SNH own shares, with 1.43 million barrels. Cameroon became a modest crude oil exporter in 1977, with production peaking at 185,000 barrels a day in 1986. Oil production in 2010 averaged at around 64,000 barrels per day.

The Collapse of the Old Oil Order. How the Petroleum Age Will End

Current oil demand is incredibly high, which makes the Middle East of utmost importance as it has the largest remaining reserves of oil left in the world. However, the unrest that is currently spreading throughout the region will inhibit its ability, and willingness, to continue producing at such high levels. Michael Klare, author of Blood and Oil, argues that the Pretroleum Age will end as the unrest topples the Western backed authoritarian regimes that have kept oil flowing to the West...More

What lack of transparency can do to oil-producing states: Lessons for Ghana

By Stephen Yeboah

Transparency works both ways and it is for the company as well as thecountries — their people need to know and the more they know what is beingdone for their benefit, the more they will be supportive.” – NgoziOkonjo-Iweala, World Bank’s Managing Director

Ensuring transparency in the extractive sector has never been a realpriority of the state authorities of Ghana and commercial entities. As aresult, the operation of the sector remains insufficiently transparent. Ithas always been the truth that the failures of oil-producing economies arelegion and continuous. Ghana, considering recent developments, is becoming oblivious of the factthat success of oil is measured by poverty reduction rather than barrelsof oil produced or millions of dollars received from oil exports.

Cameroon energy projects

By Tansa Musa

Cameroon hopes to triple electricity output to 3,000 MW by 2020 through a series of hydro and thermal generation projects. Below is a list of energy projects in the country:

POWER

- Cameroon plans to spend some 6 trillion CFA francs ($11.7 billion) to increase electricity output from 1,000 MW to 3,000 MW by 2020. More than half of the planned increase in capacity depends on the construction of the proposed Lom Pangar dam to control the flow of the Sanaga River.

-Lom Pangar dam: Most studies completed as of 2009 and financing secured. Construction scheduled for November 2010. The project would increase output from downstream hyrdroelectric plants and allow construction of new ones.

Cameroon mining projects

By Tansa Musa

Below is a list of major mining projects in Cameroon, which is seeking to diversify its traditionally oil-driven economy, the largest in central Africa.

ALUMINIUM, BAUXITE

- Rio Tinto Alcan has partnered Cameroon's government in Alucam for an operation scheduled to include a 1 million tonne aluminium smelter at Kribi. Rio has said the project, including a 1,000 megawatt hydroelectric dam to power the smelter, will cost 140 billion CFA francs ($273.3 million). Construction timeline is 2015-18.

- Cameroon Alumina Limited (CAL), a bauxite mining joint venture formed by U.S. firm Hydromines, the United Arab Emirates's Dubai Aluminium, and India's Hindalco Industries, announced in November it found 550 million tonnes of bauxite and is targeting another 200 million tonnes.