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The second edition of the Regional Economic Outlook of the International Monetary Fund, IMF, has been published, with projections revealing that growth in Cameroon will remain at plus 5 per cent in 2015. The report says though the environment in Sub-Saharan Africa is deteriorating with figures revealing that growth will remain at below 4 per cent, Cameroon has succeeded to stand shocks by diversifying its economy. The IMF report states that the oil price drop is now significant. The situation is compounded by the difficulty to source cheap funding in the international capital market. Security risks with many countries of the sub-region facing the challenge of terrorists threats, have again come to the fore.

Notwithstanding, Cameroon since the Spring 2015 report, published in April this year, has been able to face headwings. Experts at the Yaounde ceremony yesterday December 7, 2015 to present the IMF report attribute the resilience to Cameroon’s ability to diversify its economy, thus it does not rely on oil exports. The Resident Representative, African Department of the IMF, Kadima Kalonji, states that; “However, public finances have been hurt and external position also has deteriorated and because of that, we are recommending various measures to allow the country to continue on its path towards emerging market studies, taking into account the negative wings.” He explained that the economic environment in April was gathering negative wings, which now have worsened.

He stressed that the “environment has deteriorated, with countries of the region expected to embrace adjustments that can possibly face risks in the best possible way.” “Whatever we collect in terms of resources, we make sure that they are used efficiently and invested to the satisfaction of all the stakeholders,” stressed Finance Minister, Alamine Ousmane Mey. The chair of the day was responding to worries on whether Cameroon should continue to raise its debt ceiling. The IMF recommendation of optimising borowing faced debates, with the Minister of Economy, Planning and Regional Development, Louis Paul Motaze stating that Cameroon was focusing on sustainable borowing. “Yes, we will borrow, but we will focus on life-changing projects,” Alamine Ousmane Mey said. Cameroon’s balance of payment reveals that agriculture is a major source of revenue and investing in infrastructure through developing in agricultural activities will enable the State to continue to use its borowing wisely, produce, generate revenue and pay back debts. “External borrowing needs to be done in a way that will ensure the sustainability of debts. It should also be done in a way that is benefitting growth the most. Projects that will be financed need to be those that have high growth dividends which will allow the repayment of the debt over time,” stressed IMF’s Kadima Kalonji.

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Ngwa Bertrand

09.Dec.2015

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A delegation of 24 British businessmen on a mission in Cameroon, were on Tuesday met by Prime Minister Philemon Yang, APA noted .

Addressing the press at the end of their meeting, the British High Commissioner to Cameroon, John Brian Olley, said that the investors were particularly interested in agriculture, education, energy, infrastructure, mining, health “and especially the banking sector.”

The same investors had already visited Cameroon from 28 to 30 April, 2015 in the wake of a conference on investment that was  held a month earlier.

Relations between Cameroon and Great Britain date back to the 19th century, when British traders were dominant in the commercial activity along the West African coast.

Diplomatic relations between the UK and Cameroon are generally presented as “good” by both parties as the British presence in the country is felt particularly through companies like Shell (petroleum), Guinness (beer industry) or the Standard Chartered Bank but also through human rights, pro-democracy and environmental NGOs.

In recent years, the UK, through the European Development Fund (EDF) contributed annually between CFA 6 billion and 7 billion CFA francs to fund development projects in Cameroon

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Ngwa Bertrand

09.Dec.2015

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The Agropoles project from the ministry of Economy, whose aim is to create income-generating activities in rural areas, and increase agricultural and livestock production in order to limit foodstuffs imports, has just launched the Mpagne plantain Agropole, in the town of the same name located in the Eastern region of Cameroon.

Sponsored by the Société d’Actions Prioritaires Intégrées de Développement Agricole au Cameroun (Sapidacam - Company of Integrated Priority Actions for Agricultural Development of Cameroon), this agropole represents an investment of FCfa 1.8 billion, we learnt from official sources. The goal is, through this project, to develop the production of plantain in Mpagne and the surrounding area, thanks to farms which will cover 2700 hectares in total. There are plans to also build 20 km of roads, to facilitate the removal of products and access to the farms.

According to the developers of the Mpagne plantain agropole and officials at the ministry of Economy, this project will enable the creation of approximately 500 direct jobs and over 3,000 temporary jobs during peak season.

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Ngwa Bertrand

09.Dec.2015

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China is investing heavily in building up infrastructure and human capital in Africa. Germany should follow its good example. The continent will play a steadily increasing role in Europe's future.

In South Africa on Friday, China's president announced $60 billion (55 billion euros) in new investments into Africa over a three-year period within the framework of FOCAC, the Forum on China-Africa Cooperation, a framework first launched in 2000.

The key word here is "investment." The bulk of the money will be supplied in various types of concessional loans to support infrastructure development. A minority of the money is in the form of aid, including a billion renminbi ($156 million) in emergency food aid.

There are at least two things about China's approach to Africa that Germany and Europe could learn from. The first is that it is focused on doing business - on making investments in commercially viable economic projects, rather than merely giving "development aid" in the form of grants. That makes China's engagement in Africa, and the jobs and industries it creates, financially self-sustaining and capable of generating more growth.

The second is that China doesn't have any qualms about using the powers of the Chinese state to direct large-scale investment flows. Beijing combines foreign policy, economic development assistance and Chinese business interests in coherent packages in its partnership approach to Africa.

Pragmatism over ideology

China's state-capitalist approach may contravene the doctrines of folks who hew to a narrow market-fundamentalist ideology that insists the State must simply set up economic laws and then allow private market participants to invest - or not - without "interference" by governments.

Yet China has managed to pull itself up by its bootstraps on a heroic scale during the past 35 years - not so long ago, its level of development wasn't much different from Africa's. That doesn't mean China can be a direct one-for-one model for Africa's future; Africa is incomparably more ethnically fragmented than China has ever been, and it has different traditions. Yet China can still bring aspects of its recent experience to bear productively in its partnerships in Africa.

Pragmatists recognize that where infrastructure is poor and the rule of law is uncertain, as in many regions of Africa, it's enormously helpful to develop major projects under the long-term patronage of a powerful state. When a heavyweight player like China commits to financing and co-development of major projects, its influence with local partners can compensate for weak local state systems in the short run, and help strengthen them in the long run.

Special economic zones

One of the bright spots in a fraught global geopolitical landscape is China's solid relationship with Europe and Africa - and with Germany in particular. The broad relationship between German and Chinese people is marked by mutual respect, with both recognizing the other as industrious, determined and capable.

The trade relationship between China and Germany is also strong - as is that between China and Africa. But the trade relationships between Germany and Africa are not as strong as they should be. There is much work that could be done, but it will require Germany increasing its efforts to promote investment in Africa, rather than focusing on development aid. One way this could be done is to promote "special economic zones" co-managed by German agencies and local partners.

Special economic zones were used to great effect within China itself starting in the early 1980s, as a key tool in the great renewal of the country's economic structure under the leadership of Deng Hsiao Ping. It's an approach China has begun to implement in Africa too - setting a goal of 50 special economic zones, mostly managed by private Chinese companies.

Special economic zones are managed under multi-decadal contracts by Chinese companies under contract to agencies of the Chinese government in partnership with local African governments. This gives Chinese companies looking to do business in Africa a familiar and stable governance framework and business culture, making investments much easier. Germany could and should adopt a similar approach - and perhaps even scale it up.

ould China and Germany cooperate on African development?

It could be an interesting experiment for Germany, with its famous love of order and rules and its extensive technical capacities, to take a look at approaching the establishment of a few "special economic zones" in joint ventures with China in Africa.

China is set to be a long-term presence in Africa, and Africa, in turn, is set to become a big long-term presence in Europe - demographically as well as economically, given that by 2050 its population will be five times that of today's European Union, compared to just twice today. China and Germany already get along well. There are good reasons why German economic and foreign policy-makers might want to sit down with their Chinese counterparts as well as African partners and compare notes about how best to help Africa develop successfully over coming years and decades.

There's no shortage of conferences or workshops in Berlin about the future of Africa, or encouraging noises about the importance of investing in the continent. With growing flows of north-bound African refugees, German politicians have also taken up the mantra that "something must be done" to tackle the causes of refugee migration at their source, by improving conditions in the countries of origin.

But so far, there remains too much talk of "development aid" as distinct from "infrastructure investment," and the volume of German investments or state commitments remains rather small beer when compared to China's big-handed approach.

Author Nils Zimmermann for DW

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Ngwa Bertrand

08.Dec.2015

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A delegation headed by the Minister Delegate at the Ministry of External Relations in charge of relations with the Islamic World, Adoum Gargoum is in Dakar, Senegal for the 24th edition of the International Fair of Dakar .The 56 Cameroonian exhibitors are taking part in the trade fair which will run till 20th December 2015.

This Monday 7th December, 2015, Cameroon mounts the rostrum as the country’s representatives will be exhibiting Cameroon’s economic know how.

The exhibitions will be heightened by an exchange session on some themes including, “Cameroon: Africa in miniature” and a cultural evening.

The theme of this year’s edition of FIDAK is, “Facilitating Exchanges and Regional Development: Challenges and Opportunities.”

Close to 500 exhibitors from 35 countries are taking part in the trade fair.

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Ngwa Bertrand

08.Dec.2015

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If it was all up to the Cameroonian minister of Trade, Luc Magloire Mbarga Atangana , everybody would be involve in the production of cocoa in the country. “Cocoa is sold at FCfa 1,500 per kilogram at the farm gate. We have never had such an opportunity to fight against poverty. We want to see our fellow citizens get into the production of cocoa in order for us to reach our target of 600,000 tons in 2020”, he declared on 1^st December during a press conference announcing the opening of the Festicacao 2015 on 3^rd December.

According to the government member, the opportunities available in the cocoa sector through its different components these days, are such that “cocoa is the sure asset of the Cameroonian economy”. An even surer asset since, he added, “it changes village economies”, a segment gathering the overwhelming majority of socio-economically disadvantaged populations.

BRM

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Ngwa Bertrand

04.Dec.2015

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