Cameroon

The former French Cameroon and part of British Cameroon merged in 1961 to form the present country. Cameroon has generally enjoyed stability, which has permitted the development of agriculture, roads, and railways, as well as a petroleum industry. Despite a slow movement toward democratic reform, political power remains firmly in the hands of an ethnic oligarchy headed by President Paul BIYA.

Main Airports

Douala (DLA), Yaoundé Nsimalen International (NSI)

U.S. Embassy

New Embassy Compound adjacent to the golf course at the base of the Mont Fébé
Tel: (237) 220 15 00

Statistics

GDP: purchasing power parity:

$40.83 billion (2005 est.)

GDP - real growth rate:

2.8% (2005 est.)

GDP - per capita: purchasing power parity:

2,400 (2005 est.)

Inflation rate (consumer prices):

2% (2005 est.)

Labor force:

6.86 million (2005 est.)

Exports:

$3.236 billion f.o.b. (2005 est.)

Exports - partners:

Spain 17.2%, Italy 13.7%, France 9.4%, South Korea 8.1%, UK 8%, Netherlands 7.1%, Belgium 4.8%, US 4.3% (2005)

Imports:

$2.514 billion f.o.b. (2005 est.)

Imports - partners:

France 25%, Nigeria 12.5%, Belgium 6.6%, China 5.8%, US 5.3%, Thailand 4.7%, Germany 4.4% (2005)

Population:

17,340,702

Population growth rate:

2.04% (2006 est.)

Population Below Poverty Line:

48% (2000 est.)

Major Industries:

petroleum production and refining, aluminum production, food processing, light consumer goods, textiles, lumber, ship repair

Employing Workers: 135*

Registering Property: 131*

Enforcing Contracts: 170*

Closing a Business: 96*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Cameroon	Region
Procedures (number)	12	11.1
Time (days)	37	61.8

Cameroon Risk Assessment

Country Rating

Rating: B

Political and economic uncertainties and an occasionally difficult business environment can affect corporate payment behaviour. Corporate default probability is appreciable.

Risk Assessment

Economic growth accelerated in 2007, driven by the increased volume of oil exports, spurred by the upward price trend, and by a dynamic non-oil sector. Growth should speed up again in 2008 amid increasing foreign direct investment in major industrial projects (aluminium, hydroelectric power stations) and the recovery of public sector investments (urban, road, and port infrastructure) buoyed by the increase in oil revenues and new fiscal room for manoeuvre.

The process of consolidating public finances has continued thanks to better realisation of non-oil revenues. The steadiness of the public sector balance is also the result, albeit worryingly, of a failure to carry out all spending budgeted to combat poverty. The current account, meanwhile, continues to show a slight deficit with oil exports still not sufficing to offset the deficit in the services balance and in revenues undermined by oil company profit repatriation. In this context, the debt ratios — significantly lower since the debt relief granted under the HIPC and MDRI programmes — have remained sustainable.

The July 2007 legislative elections, marked by low voter turnout, gave a large majority to President Paul Biya, in office since 1986. And the new Assembly should approve a constitutional amendment allowing the incumbent president to run for a third term in 2011. That could result in a heightening of tensions.

At the regional level, the agreement signed with Nigeria in June 2006 guarantees Cameroon's sovereignty over the Bakassi Peninsula and its extensive oil resources.

STRENGTHS

• Endowed with vast resources ranging from agriculture, wood, mining, and tourist potential to oil, gas, and hydroelectric energy Cameroon boasts one of Central Africa's most diversified economies.
• Implementation of far-reaching structural reforms allowed Cameroon to obtain in 2006 a 50 per cent reduction of its foreign debt under the HIPC and MDRI programmes
• The structural reforms have attracted investors and accelerated the process of diversifying the productive fabric.

• With government finances still too dependent on oil production (30 per cent of tax revenues and 50 per cent of exports), the projected decline of oil resources has made rapid development of alternative revenue sources a necessity.
• A poor business environment has hampered development of a formal private sector contending with intense competition from the informal economy.
• The growth still does not suffice to meet the Millennium Objectives notably intended to cut poverty in half by 2015
• The political succession crisis looming in the run-up to elections in 2011 could jeopardise the country's political stability.

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