businessincameroon.com

The Cameroonian economy in 2009 suffered the fallout of the global economic crisis. A very favorable public investment program for the private sector should help revive the machine.
By Nadia Hachelaf, Alger

A more economic orientation rather than a social one, the investments has given priority to the private sector. Public investment is concentrated on sectors that have the vocation to stimulate investment.

The problems of economic governance and corruption continue, the state itself initiated a cleaning operation that led to the arrest of many officials responsible. An IMF report, dated November 2009 and published online recently said that in a context of steady decline in oil production, economic growth, driven by the non-oil sector, "has been revised and brought back for 2009 - 10 to 2 ½% (approximately 3.2% growth for the non-oil sector)."

It could gradually reach 4.2% by 2012 assuming, said the IMF report, "an increase in capital expenditures and intensified structural reforms on the business climate, the introduction of goods and public infrastructure and more efficient management of public finances." In this spirit it has been developed the Strategy document on employment and growth (DSCE) which should come into effect in 2010.

Boosting investments

In his New Year message, the President of Cameroon, while emphasizing the impact of the crisis on economic growth has listed some of these "great works" that will be launched during the year: the hydroelectric dam at Lom-Pangar, deepwater port of Kribi, a dam at Memve'ele, natural gas plant in Kribi, mini-power plant in Mekin on Dja river, rehabilitation and extension of water pipes from Yaoundé, Douala...

In addition, we will launch the cobalt, nickel and manganese mines in Nkamouna, the diamond mining activities from Mobilong and the rehabilitation of the site of the former CELLUCAM for starting the activities of the Edéatech technopole. The exploitation of bauxite deposits in the coming years should be a major turning point and boost growth. The exploitation of deposits and Ngaoundal Minim-Martap requires investments estimated at 4.58 billion euros and is expected to generate over 10 000 jobs, including 4000 direct ones.

"We will accelerate the process leading to the exploitation of bauxite at Minim-Martap Ngaoundal and iron exploitation from Mballam. As for the gold from Betar-Oya, its industrial exploitation started in 2009. To stimulate the development of rural areas, an agro-pastoral Comice will be held in 2010 in Ebolowa," said President Paul Biya.

30% of the SMEs' market

The Finance Law for 2010 provides a pre-financing from the State of nearly 89.2 billion francs of six major projects (the Lom Pangar reservoir, Memve'ele hydroelectric dam, deep water port of Kribi, second bridge over the Wouri, gas plant in Kribi and installation of the national backbone). A commitment from the State intended to help partners mobilize necessary funding. The strategy for employment and growth raises some reservations on the part of some Cameroonian experts.
The authorities do understand that the restructuring of major structural projects is a veritable deposit of wealth, or such heavy investment is not really effective for growth and jobs if it is supported and managed by local SMEs. Based solely on imports and external financing, these investments might have a small impact and contribute to aggravate the country's debt. The Government therefore expects the development of SMEs to who consider guaranteeing a quota of 30% of the market in large projects. The case for extending the plant Alucam from Edéa, where nearly 400 billion FCFA will be allocated to SMEs, is an example.