Economic trends
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 struck heavily on five sectors of Cameroon's economy: aluminum, wood, rubber, cotton and crude oil. During the fourth quarter of 2008, cotton, rubber and aluminum experienced a drop in their export value of 17.5%, 42.5% and 55% respectively. Orders in the wood sector were all frozen. The International Monetary Fund intervened in 2010 to give support to the country's economy by offering EUR 106 million in aid to affront the repercussions of the crisis. The country's budget for 2011 was also analyzed by the delegates from the International Monetary Fund in order to advise the Financial Ministry on the main primary options to put into effect from the economic point of view. It is essential to strengthen Cameroon's banking system and this will be part of the development issues for 2011.
Main branches of industry
The primary sector contributes almost to a quarter of the GDP and employs approximately 50% of the active population. Before the initiation of the oil trade, 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 almost a quarter 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 half of the GDP. It benefits from the economic activity created around the Doba/Kribi oil pipeline, which has been in operation since July 2004. The services sector is booming with 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). The share of foreign trade in Cameroon in relation to its GDP is around 50%.
Its three main export partners are Spain, Italy and France. The main export commodities are mineral fuels, oil, wood, coal, cocoa, cotton, and aluminum. Its three main import suppliers are Nigeria, France and China. 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 and Cameroon has to improve its level of openness starting 2011, in order to improve its performance in the foreign trade plan.
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Last updates: February 2012
