(Business in Cameroon) - In 2017, crude oil represented 70% of the overall exports within CEMAC. This was revealed by the Bank of Central African States BEAC in the latest report on price competitiveness within CEMAC in 2017.

According to the report, the product’s overall contribution to Real Effective Exchange Rate (REER) on real export earnings was around 80%. Due to this, CEMAC’s economies lost their competitiveness. Indeed, the Bank reveals that since 2015, the non-oil REER appreciated by 2.4% while the overall REER (oil included) depreciated by 8.1%.

The Bank notes that due to CEMAC members’ high dependence on oil exports, the price competitiveness’s evolution varies according to the country. Indeed, even though the non-oil REER appreciated by 2.4%, in Cameroon, it appreciated by 17.5% while in Congo, Gabon and Equatorial Guinea, it appreciated by 12.5%, 0.24%, and 0.36% respectively. In the remaining two countries, namely Central Africa and Chad, it depreciated by 1.5% and 0.21% respectively.

So, apart from Cameroon whose economy is relatively diversified, the other CEMAC countries which depend on oil exports' REER was either negative or weak.

Let’s remind that for years now, many international institutions such as IMF and World Bank invited the CEMAC countries to diversify their economies due to the free fall of oil prices (which highlighted the sub-region’s vulnerability).

S.A