(Business in Cameroon) - Cameroon forecasts its 2021 oil revenues at XAF303.3 billion, according to the budget orientation document being used to guide the elaboration of the 2021 finance bill. Compared with the XAF286.7 billion forecast contained in the amended 2020 finance law, this represents an increase of XAF16.6 billion (+5.8%).
The document informs that this forecasted rise in revenues is based on the assumption of a slight increase in the average price of oil barrels in international markets (from $35.6 in 2020 to $37.9 in 2021, and a dollar exchange rate at XAF550). As far as oil production is concerned, it is expected to drop slightly from 21.3 million barrels in 2020 to 21.2 million in 2021.
Let’s note that according to the document, the revenues will drop by XAF33.8 billion (-11.1%) to XAF269.5 billion between 2022 and 2023. The reason, the document explains, is that the rise in average prices in international markets would not be enough to compensate for the decrease in oil production.