(Business in Cameroon) - A World Bank mission arrived in Cameroon just when the International Monetary Fund issued its last report noting a progressive improvement of the country's economic situation.
A joint World Bank (WB) and African Development Bank (ADB) mission is currently in Cameroon to review the country's economic performance. The mission involves the identification of concrete actions with a view to improving Cameroon's economic performance. Taking stock of this cooperation, the World Bank delegation made a few objections about issues which hinder the Cameroonian economy's efficiency, because to date, despite the efforts made to ensure that projects are properly implemented, the performance of the World Bank portfolio is not satisfactory at all. Five World Bank-funded projects which have not made any headway are henceforth ranked among the « problem projects ». For this reason, « all parties should undertake an in-depth analysis of the causes as well as the constraints that impede the projects' implementation ».

Priority sectors
The Head of the World Bank delegation, Gregor Hans Binkert, pointed out that a proper coordination of actions between the two parties would be beneficial for Cameroon, since in its efforts to become an emerging economy in the next twenty-five years. Such an objective calls for the implementation of a realistic and efficient economic policy based on the execution of developmental projects which cannot be achieved without donor involvement because they are megaprojects requiring huge investments. In this context, the World Bank laid emphasis on the sound preparation of programmes to be implemented, the conditions of disbursing funds, the implementation and evaluation of projects. The World Bank's support to Cameroun, amounting to 425 million dollars, rose substantially over the past four years, and is currently estimated at 968 million dollars covering about fifteen national projects. The priority sectors include the transportation sector which absorbs 32% of the volume of investments, urban development representing 25%, agriculture and rural development which take up 10%, and finally the education sector with 4% of investments.

In addition to the implementation of national projects, the World Bank and ADB insisted on financing regional projects. This concerns four projects focused on the development of infrastructure, sanitation, road construction to link production areas to consumption areas. Besides, the funding of the Lom Pangar hydroelectric dam, with ADB support of up to 27 billion CFAF will not only help strengthen national energy supply, currently estimated at 1000 megawatts (MW), but will supply neighbouring countries, like the Central African Republic, Gabon or Congo. In this regard, the strategic development plan 2010-2014 will lay special emphasis on two sectors, strengthening infrastructure and improving governance. To achieve this objective, the primary concern of the ADB is the densification of the road network to improve the connection between Cameroon and neighbouring countries, according to the joint mission. This gave rise to the road rehabilitation programme to facilitate transportation between Cameroon and Central African Republic, Congo, Nigeria and Chad.

Increasing growth
While the joint World Bank-ADB mission was examining Cameroon's economic policy, an IMF report showed that the country's economic situation has improved. The report revealed that the country's economic recovery is improving progressively, with a growth rate expected to stabilize at 3.8% in 2011, against 3.2% in 2010. With a 4.4% increase (excluding oil) in 2011, exports rose by 1.6%, compared to 0.4% for imports. Despite the decline in oil production, this sector registered a 1.3% growth in 2011 compared to last year.
However, the IMF observed that « growth improved slightly because of low investments in sensitive infrastructure and the business climate which needs to be improved ». In other words, the improvement of the general environment should boost production: an improved business climate laying emphasis on the fight against corruption to encourage investors, as well as the consolidation of public finances. The two sectors have not yet reached the expected level of improvement to enable the Cameroonian economy to perform better.

Achille Mbog Pibasso, Douala