(Business in Cameroon) - In January 2021, except for aluminium, all of the raw materials exported by Cameroon recorded sharp price increase in international markets. This was revealed by the General Directorate for the Economy and Public Investment Programming in its January 2021 monthly price index.
"Global demand increased sharply during January 2021 compared to December 2020, leading to a significant increase in the prices of the main raw materials exported by Cameroon during this period, except for aluminum, which recorded a slight 0.7% decline. The increase is 10.0% for oil, 14.7% for wood, 15.7% for cocoa, 26.0% for cotton, 10.4% for rubber, 18.2% for Arabica coffee and 12.7% for Robusta coffee," the document indicates. It adds that during the said period, the Euro/Dollar exchange rate was almost stable (+0.01%).
According to the directorate, such shard price increase was due to exporters’ confidence in economic revival after the creation of several vaccines and the organization of many vaccination campaigns by many countries, despite some reconfinement cases observed worldwide.
This is good news for the state coffers. In January 2021, the price of black gold reached $55.2 per barrel, whereas the 2021 budget was drawn up on the basis of a barrel being $40.3. If this trend continues, Cameroon could earn more revenue from the oil sector than the CFAF 418 billion projected in the 2021 budget law.
This is a good omen for the public treasury because, in January 2021, the prices of crude oil rose to $55.2 per barrel while the 2021 budget elaborated the fiscal year's revenue generation capabilities taking an average of $40.3 per barrel. Should such price increase continue throughout the current fiscal year, the country will generate more than the XAF418 billion oil revenue forecasted in the 2021 finance law.
Joseph Roland Djotié