If the financial sector hasn’t been negatively impacted, the export sectors (wood, aluminum, rubber, cotton) have suffered the repercussions of a slowing global economy with aggravating factors such as lower commodity prices, a declining foreign investment and a credit crunch. Consequences for the economy: a reduction in growth in 2009, even stronger than in 2008 when the effects of the crisis were beginning to be felt.
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.
Yet the country has some serious advantages, the off-shore exploitation of oil reserves which is bringing the means of economic dynamism somewhat challenged.
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.
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 energy sector, marked by a decrease in oil production, should receive investment of around 5.853 trillion FCFA during the next decade to meet the needs of the country and some neighboring countries.
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 Edeatech 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.