Economy of Cameroon

Economy of Cameroon
Douala, the economic capital of Cameroon
CurrencyCFA franc (XAF)
Calendar year
Trade organisations
AU, AfCFTA (signed), ECCAS, WTO
Country group
Statistics
PopulationIncrease 25,216,237 (2018)
GDP
  • Decrease $38.632 billion (nominal, 2019 est.)
  • Increase $100.884 billion (PPP, 2019 est.)
GDP rank
GDP growth
  • 3.5% (2017) 4.1% (2018)
  • 4.0% (2019e) 4.2% (2020f)
GDP per capita
  • Decrease $1,515 (nominal, 2019 est.)
  • Increase $3,955 (PPP, 2019 est.)
GDP per capita rank
GDP by sector
2.2% (2020 est.)
Population below poverty line
  • 37.5% (2014, World Bank)
  • 44.7% on less than $3.20/day (2014)
46.6 high (2014, World Bank)
  • Increase 0.563 medium (2018) (150th)
  • 0.371 low IHDI (2018)
Labour force
  • Increase 11,354,044 (2019)
  • 69.6% employment rate (2014)
Labour force by occupation
Unemployment4.3% (2014 est.)
Main industries
petroleum production and refining, aluminium production, food processing, light consumer goods, textiles, lumber, ship repair
Decrease 167th (below average, 2020)
External
ExportsIncrease $4.732 billion (2017 est.)
Export goods
crude oil and petroleum products, lumber, cocoa beans, aluminium, coffee, cotton
Main export partners
ImportsDecrease $4.812 billion (2017 est.)
Import goods
machinery, electrical equipment, transport equipment, fuel, food
Main import partners
Increase −$932 million (2017 est.)
Negative increase $9.375 billion (31 December 2017 est.)
Public finances
Negative increase 36.9% of GDP (2017 est.)
−3.4% (of GDP) (2017 est.)
Revenues5.363 billion (2017 est.)
Expenses6.556 billion (2017 est.)
Economic aidThe Paris Club agreed to reduce Cameroon's debt of $1.3 billion by $900 million, debt relief now totals $1.26 billion (2001)
Increase $3.235 billion (31 December 2017 est.)
Main data source: CIA World Fact Book
All values, unless otherwise stated, are in US dollars.
Cocoa Farm

The economy of Cameroon was one of the most prosperous in Africa for a quarter of a century after independence. The drop in commodity prices for its principal exportspetroleum, cocoa, coffee, and cotton – in the mid-1980s, combined with an overvalued currency and economic mismanagement, led to a decade-long recession. Real per capita GDP fell by more than 60% from 1986 to 1994. The current account and fiscal deficits widened, and foreign debt grew. Yet because of its oil reserves and favorable agricultural conditions, Cameroon still has one of the best-endowed primary commodity economies in sub-Saharan Africa.

Agriculture

In 2018, Cameroon produced:

  • 5million tons of cassava (13th largest producer in the world);
  • 3.9million tonnes of plantain (3rd largest producer in the world, only behind Congo and Ghana);
  • 2.6million tons of palm oil (7th largest producer in the world);
  • 2.3million tons of maize;
  • 1.9million tons of taro (3rd largest producer in the world, second only to Nigeria and China);
  • 1.4million tons of sorghum;
  • 1.2million tons of banana;
  • 1.2million tons of sugarcane;
  • 1million tons of tomato (19th largest producer in the world);
  • 674,000 tonnes of yam (7th largest producer in the world);
  • 594,000 tons of peanut;
  • 410,000 tons of sweet potato;
  • 402,000 tons of beans;
  • 332,000 tons of rice;
  • 310,000 tons of pineapple;
  • 307,000 tons of cocoa (5th largest producer in the world, after Ivory Coast, Ghana, Indonesia and Nigeria);
  • 302,000 tons of potato;
  • 301,000 tons of onion;
  • 249,000 tons of cotton.

In addition to smaller productions of other agricultural products, such as coffee (33,000 tons) and natural rubber (55,000 tons).

Finance and banking

Cameroon's financial system is the largest in the CEMAC region. Access to financial services is limited, particularly for SMEs. Aside from a traditional tendency for banks to prefer dealing with large, established companies, determining factors are also found in interest rates for loans to SMEs being capped at 15 percent and being heavily taxed. As of 2006, bank loans to SMEs hardly reached 15 percent of total outstanding loans (Molua, 2002).

Less than 5 percent of Cameroonians have access to a bank account. While the microfinance sector is consequently becoming increasingly important, its development is hampered by a loose regulatory and supervisory framework for microfinance institutions (MFIs). The banking sector is highly concentrated and dominated by foreign commercial banks. 6 out of the 11 largest commercial banks are foreign-owned, and the three largest banks hold more than 50 percent of total financial system assets. While foreign banks generally display good solvency ratios, small domestic banks are in a much weaker position. Their capitalization is well below the average of banks in the CEMAC region and their profits are close to 2 percent, compared to 20 percent for foreign banks in the country. This is partially explained by the high levels of non-performing loans, which reached 12 percent in 2007, leading to most banks holding large amounts of excess reserves as a percentage of deposits and large levels of unutilized liquidity.

In 2018, Cameroon's financial system is being requested by the International Monetary Fund (IMF) to increase its tax base to cover the losses from the North-West and South-West Cameroon's regions instabilities, the loss of oil revenue, the failure to deliver on port facilities, and the decline in oil production from mature oil fields.

Macro-economic trend

Cameroon became an oil-producing country in 1977. Claiming to want to make reserves for difficult times, the authorities manage "off-budget" oil revenues in total opacity (the funds are placed in Paris, Switzerland and New York accounts). Several billion dollars are thus diverted to the benefit of oil companies and regime officials. The influence of France and its 9,000 nationals in Cameroon remains considerable. African Affairs magazine noted in the early 1980s that they "continue to dominate almost all key sectors of the economy, much as they did before independence. French nationals control 55% of the modern sector of the Cameroonian economy and their control over the banking system is total.

Recent signs, however, are encouraging. As of March 1998, Cameroon's fifth IMF program – a 3-year enhanced structural adjustment program approved in August 1997 – is on track. Cameroon has rescheduled its Paris Club debt at favorable terms. GDP has grown by about 5% a year beginning in 1995. There is cautious optimism that Cameroon is emerging from its long period of economic hardship.

Cameroonian exports in 2006

The Enhanced Structural Adjustment Facility (ESAF) signed recently by the IMF and Government of Cameroon calls for greater macroeconomic planning and financial accountability; privatization of most of Cameroon's nearly 100 remaining non-financial parastatal enterprises; elimination of state marketing board monopolies on the export of cocoa, certain coffees, and cotton; privatization and price competition in the banking sector; implementation of the 1992 labor code; a vastly improved judicial system; and political liberalization to boost investment.

France is Cameroon's main trading partner and source of private investment and foreign aid. Cameroon has an investment guaranty agreement and a bilateral accord with the United States. USA investment in Cameroon is about $1 million, most of it in the oil sector. Inflation has been brought back under control. Cameroon aims at becoming emerging by 2035.

The government embarked upon a series of economic reform programs supported by the World Bank and International Monetary Fund (IMF) beginning in the late 1980s. Many of these measures have been painful; the government slashed civil service salaries by 65% in 1993. The CFA franc – the common currency of Cameroon and 13 other African states – was devalued by 50% in January 1994. The government failed to meet the conditions of the first four IMF programs.

This is a chart of trend of gross domestic product of Cameroon at market prices estimated by the International Monetary Fund with figures in millions of Central African CFA Francs.

Year Gross Domestic Product US Dollar Exchange
1980 1,600,186 209.20 Francs
1985 4,355,977 471.12 Francs
1990 3,804,428 300.65 Francs
1995 4,686,286 518.62 Francs
2000 6,612,385 658.21 Francs
2005 8,959,279 527.29 Francs

The following table shows the main economic indicators in 1980–2022. Inflation below 5% is in green.

Year GDP

(in Bil. US$PPP)

GDP per capita

(in US$ PPP)

GDP growth

(real)

Inflation rate

(in Percent)

Government debt

(in % of GDP)

1980 11.1 1,263 Increase9.9% Negative increase7.7% n/a
1981 Increase14.3 Increase1,572 Increase17.1% Negative increase7.5% n/a
1982 Increase16.3 Increase1,747 Increase7.6% Negative increase15.3% n/a
1983 Increase18.1 Increase1,887 Increase6.8% Negative increase20.5% n/a
1984 Increase20.1 Increase2,047 Increase7.5% Negative increase12.1% n/a
1985 Increase22.4 Increase2,223 Increase8.1% Increase4.2% n/a
1986 Increase24.4 Increase2,357 Increase6.8% Increase4.3% n/a
1987 Increase24.5 Decrease2,298 Decrease-2.2% Increase2.8% n/a
1988 Decrease23.4 Decrease2,129 Decrease-7.9% Increase1.7% n/a
1989 Decrease23.9 Decrease2,110 Decrease-1.8% Increase1.6% n/a
1990 Decrease23.2 Decrease1,992 Decrease-6.2% Increase1.5% n/a
1991 Decrease23.1 Decrease1,922 Decrease-3.8% Positive decrease-0.6% n/a
1992 Decrease22.9 Decrease1,850 Decrease-3.1% Increase1.9% n/a
1993 Decrease22.7 Decrease1,780 Decrease-3.2% Positive decrease-3.7% n/a
1994 Decrease22.6 Decrease1,722 Decrease-2.5% Negative increase12.7% n/a
1995 Increase23.9 Increase1,766 Increase3.3% Negative increase25.8% n/a
1996 Increase25.5 Increase1,836 Increase4.9% Increase3.9% n/a
1997 Increase27.3 Increase1,913 Increase5.3% Increase4.8% n/a
1998 Increase29.0 Increase1,974 Increase4.9% Increase3.2% 68%
1999 Increase30.6 Increase2,026 Increase4.1% Increase1.8% Steady68%
2000 Increase32.3 Increase2,084 Increase3.4% Increase1.2% Negative increase76%
2001 Increase34.2 Increase2,145 Increase3.4% Increase4.5% Positive decrease62%
2002 Increase36.4 Increase2,224 Increase4.8% Increase2.8% Positive decrease57%
2003 Increase38.9 Increase2,318 Increase5.0% Increase0.6% Positive decrease52%
2004 Increase42.6 Increase2,469 Increase6.6% Increase0.3% Steady52%
2005 Increase44.5 Increase2,509 Increase1.2% Increase2.0% Positive decrease44%
2006 Increase47.5 Increase2,605 Increase3.5% Increase4.9% Positive decrease18%
2007 Increase50.8 Increase2,710 Increase4.1% Increase1.1% Positive decrease14%
2008 Increase53.2 Increase2,764 Increase2.9% Negative increase5.3% Positive decrease11%
2009 Increase55.0 Increase2,777 Increase2.6% Increase3.0% Steady11%
2010 Increase57.2 Increase2,814 Increase2.9% Increase1.3% Negative increase14%
2011 Increase60.5 Increase2,892 Increase3.5% Increase3.0% Negative increase15%
2012 Increase63.6 Increase2,959 Increase4.5% Increase2.4% Negative increase15%
2013 Increase69.1 Increase3,130 Increase5.0% Increase2.1% Negative increase17%
2014 Increase75.1 Increase3,313 Increase5.8% Increase1.9% Negative increase21%
2015 Increase79.1 Increase3,396 Increase5.6% Increase2.7% Negative increase32%
2016 Increase84.4 Increase3,527 Increase4.5% Increase0.9% Steady32%
2017 Increase90.0 Increase3,665 Increase3.5% Increase0.6% Negative increase37%
2018 Increase95.9 Increase3,803 Increase4.0% Increase1.1% Negative increase38%
2019 Increase101.0 Increase3,901 Increase3.4% Increase2.5% Negative increase42%
2020 Increase102.7 Decrease3,870 Increase0.5% Increase2.5% Negative increase45%
2021 Increase110.9 Increase4,073 Increase3.6% Increase2.3% Negative increase46%
2022 Increase123.3 Increase4,419 Increase3.8% Increase4.6% Negative increase47%

Gallery

See also


This page was last updated at 2023-11-01 14:22 UTC. Update now. View original page.

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