French brewery cartel known as Les Brasseries du Cameroun reportedly pressured President Biya to undermine Cameroon’s Health Ministry lockdown provisions against COVID-19 exposing the government’s total ineptitude in dealing with the crisis, Cameroon Concord News Group has gathered from concordant sources in Yaoundé.

The pandemic is now sweeping across Cameroon, overwhelming hospitals, and leading to the surging death toll but the Head of State has ordered all pubs, bars and breweries to operate as usual. While in mother France, pubs are only permitted to either deliver drinks or allow customers to pick them up.

The French brewers threatened Etoudi with severe consequences if the regime failed to put an end to the lockdown. Officials at the Ministry of Public Health have blatantly refused to criticize the government for downplaying the risk of coronavirus spreading in beer parlours.

The Biya decision was put into practice without any proper consultation with Cameroonian trade bodies and civil society organizations. A cream of Cameroonian clergies have raised fingers against the move on social media with a prominent Man of God stating that “The reopening of bar is DANGEROUS. When the FLOOD subsided after 40 days, Noah did not RUSH OUT. He sent a bird out and it was after the 3rd bird did not return that he knew it was TIME to STEP OUT.  Please do not join the multitudes that are rushing out because they are tired of staying at home. A lot of people have already been infected and unknowingly will keep infecting others. Let us be wise like Noah to OBSERVE for many more days inside our own ARK, OUR HOMES before taking any action.  May we and our loved ones be preserved and protected from this pandemic in Jesus mighty name. Amen.”

By Chi Prudence Asong

Cameroon is one of the 77 developing countries benefiting from the 12-month moratorium on foreign debt servicing decided on April 15 by the G20 during a video conference. The information was revealed the following day by the French ambassador to Cameroon Christophe Guilhou, at the end of an audience with President Paul Biya.

According to the media service of the French embassy, the moratorium (which succeeded in part thanks to French President Emmanuel Macron’s efforts) postpones the payment of bilateral debts by 12 months.

In its 2020 budget, Cameroon had set a little over XAF720 billion for the payment of its debts. Out of that amount, XAF232.2 billion was set aside for the payment of its bilateral debts for this fiscal year.

Lobbying

With this moratorium, the G20 countries aim to let beneficiaries concentrate on the health crisis at hand and worry about debt repayment later. However, since the debt is not canceled, it will just add to debt servicing in 2021. African countries must, therefore, continue to lobby for the cancelation of their debts.

“We also call for the cancelation of the debt of African countries…The IMF must be ready to respond to our countries’ increased demand for resources. The World Bank must also systematically support all countries since a specific scheme is applied for IBRD and IDA borrowers whose loans are classified as non-performing,” said Alamine Ousmane Mey at the Spring Meetings of the Bretton Woods Institutions. He was speaking as the chairman of the African Consultative Groups (ACG) of the International Monetary Fund (IMF) and World Bank Group (WBG).

According to Cameroon’s Ministry of Finance, On December 31, 2019, Cameroon’s outstanding public and publicly guaranteed debt were estimated at XAF8,424 billion, or about 37.3% of GDP. At XAF6,650 billion, the country’s external debt accounted for 77.1% of the total debt.

Culled from Business in Cameroon

An economic onslaught is staring at the face of traders in the Central African country of Cameroon, which is one of the most affected countries by the coronavirus or COVID-19 pandemic in the continent.

The country, known for its varied terrain and wildlife has so far reported 1,017 positive cases, with 22 deaths, according to data compiled by the U.S.-based John Hopkins Coronavirus Resource Centre.

“The virus has slowed down my work. I have to go out and sell few things, even though I do not earn much,” said Adams Patrice, who deals with secondhand goods. He used to have a roaring business on weekends when people on the outings throng to markets selling cheap goods.

“Everything has changed. The customers are afraid. They pass by wearing their protective masks and do not talk to us. They barely stop to look at the merchandise. There is a drought in the market,” he said.

Like Patrice, an electronic retailer Fabrice Fondjeu, has also lost most of his clientele.

“I receive less than five customers a day compared to more than 40 before the pandemic. It has dipped my savings,” he said. He is counting that the government may announce some sops to stabilize the situation.

Although governments worldwide are encouraging digital connectivity as an alternative to physical connectivity, Tamo Christian, a cyber cafe manager, has few customers. He is still relying on the government’s push for digital education, expecting that students who do not have computers and internet connection at home will use his services. He has also cut his daily expenses considerably.

The restrictions on travel have also led to a steep decline in the online sale of tickets, said Geraldine Nbebi, sales administrator of an online ticketing startup. He, however, appreciates the fact that because of social distancing, people are increasingly getting used to digital technology.

Food chain affected

Speaking to Anadolu Agency, Ebouki Lea, a food vendor, said she has been going through difficult times since restrictions on movements. She used to bring goods from villages and then sell them in cities. Regular customers have even abandoned her. Even farmers have limited production in the villages.

The secondhand goods dealer Patrice had thought of going digital, opening an online store, where he would share pictures of goods and receive orders through social networking sites. But he laments that he is on the other side of the digital divide and also does not have funds to open an e-shop.

Even as the Cameroonian government has taken measures for businesses, the fear that economic slowdown will stay for a long time to come is palpable. President Paul Biya had asked the trade ministry to ensure stability in prices and availability of consumer goods. He had also asked officials to come out with plans to regulate the flow of people in markets.

Acknowledging that it was a difficult time for traders, Minister of Trade Luc-Magloire Mbarga Atangana told a local radio station that there was no possibility of a shortage of goods. “The country should be able to rely on its national production and food reserves and count on sea shipments. The country is prepared for any eventuality,“ he said.

Source: Anadolu Agency

Cameroonian telecoms industry regulator ART has called on mobile operators to lower prices because of the Covid-19 crisis, Business in Cameroon reported. ART said it has initiated negotiations with operators so that they can lower the prices of various services offered. 

Source: Telecompaper

The OPEC Fund is contributing €30 million to support the Republic of Cameroon’s production and trade of cotton fiber.

 The financing facility, which is led by the International Islamic Trade Financing Corporation (ITFC), will enable Cameroon to finance the purchase of agricultural inputs which will be processed into cotton fiber and sold into the export markets.

 Cotton is an important product in Cameroon. The sector employs around 200,000 farmers, while over 2 million people benefit along the value chain.

Source: opecfund.org

In 2019, food prices have been among the main driving forces behind the rise of the inflation in Cameroon. That year indeed, inflation surged to 2.5%, the highest since 2015.

Among the food products that contributed to the rise was beef, the National Institute of Statistics (NIS) reported. According to NIS,after a drop of 2.1% in 2018 the price of beef in Cameroon increased by 3.5% in 2019. This sharp rise is mainly due to the resumption of beef trades with neighbouring countries (Nigeria in particular), the INS explained.

Indeed, because of the exactions started by Nigerian Islamist sect Boko Haram in 2013, Cameroon closed its northern borders with Nigeria in 2015. The northern region is the main beef production area in Cameroon.

In 2019, following the relative peace that ensured after fights led by the Cameroonian army against Boko Haram, Cameroon decided to open some of its borders with Nigeria. This is the case of the Amchidé border, officially reopened since May 15, 2019. This town is the hub of trade between Nigeria and Cameroon in the Far North region.

At the same time, several livestock markets, closed for years due to the insecurity created by Boko Haram, were also relaunched. Consequently, exports of Cameroonian beef to Nigeria have been boosted, leading to higher prices on the local market.

 Business in Cameroon

Banana exports from Cameroon are on the slide. This is a direct fallout of the armed struggle by the Ambazonia people of South West Cameroon who want to secede from Cameroon Republic.

In February 2020, the two banana exporters still active in Cameroon exported 14,965 tons of the products. According to the banana exporters’ association Assobacam, these exports were down by 6,532 tons compared with the 21,497 tons exported during the same period in 2019.

This drop is mainly due to a decrease in the year-over-year exports of Plantations du Haut Penja (PHP), the local subsidiary of French group Compagnie fruitière de Marseille. During the period under review, PHP (leader of the Cameroonian banana market) only exported 13,847 tons against 19,737 tons in February 2019.

State-owned agribusiness unit CDC is still absent from the Cameroonian banana exporters’ registry. The main economic victim of the pro-independent crisis in the Anglophone regions [since 2016] stopped operations since September 2018, because of the insecurity created by separatists on its plantations and factories.

Source: Business in Cameroon

South African Airways (SAA) said on Friday that it would immediately suspend all intercontinental flights until the end of May in response to a government travel ban aimed at stopping the spread of the coronavirus.

State-owned SAA, which is under a form of bankruptcy protection, flies to the United States, Britain, Germany, Australia and Brazil on its intercontinental routes.

Earlier this week it said that it had already cancelled 162 intercontinental and regional flights until the end of this month.

President Cyril Ramaphosa on Sunday announced bans on travel to countries considered “high-risk” for the coronavirus, including the United States, Britain and Germany.

Separately, the specialists appointed in December to try to save SAA on Friday asked creditors for a two-month extension for their business rescue plan for the cash-strapped airline until May 29.

SAA hasn’t made a profit since 2011 and has received more than 20 billion rand ($1.2 billion) in bailouts over the last three years.

Another struggling state-owned airline, SA Express, suspended operations until further notice from Wednesday.

Source: Africa news

A five-member delegation of African Development Bank Executive Directors has concluded a week-long fact-finding mission to Cameroon during which they met with the country’s Prime Minister and other senior officials.

During the mission which began on 2 March 2020 in the capital, Yaoundé, the Executive Directors also held consultations with stakeholders, including private sector operators and development partners. They also toured Bank-financed projects.

“We are glad to host you here to understand the reality on the ground,” said Prime Minister Joseph Dion Ngute, welcoming the delegation. “The government shall endeavor to address the concerns you may raise.”

The meetings with the government Ministers reviewed Cameroon’s economic and political situation and prospects, as well as cooperation with the African Development Bank, which the Premier Ngute described as productive, noting that the Bank was “one of the most prominent players” in the country’s economy.

The Bank’s investments are channeled through infrastructure, health, energy, education, sanitation and water sectors. “The projects have contributed tremendously to transforming the country and improving the living conditions of Cameroonians, both in rural and urban areas,” Ngute said.

The Executive Directors welcomed the government’s efforts to reduce debt and called for steadfast reforms to shore up economic growth. They emphasized the need for swift government action to accelerate the implementation of projects and programs approved by the Bank. They also discussed progress in the opening of the Bank’s Regional Office in Yaoundé, a key step in the implementation of its new business development model.

“This consultation mission is part of the Board’s efforts to enhance its members’ understanding of in-country developments,” said Mbuyamu Ilankir Matungulu, Executive Director for Cameroon, Central African Republic, Burundi, Congo, Chad and the Democratic Republic of Congo and spokesman for the delegation.

To conclude their mission in Yaoundé, the Executive Directors held discussions with the State Minister and Secretary-General of the Presidency of the Republic, Ferdinand Ngoh Ngoh.

They took note of security concerns in the northern-west and southern-west regions which have caused delays in the implementation of Bank-funded projects. The delegation encouraged the authorities to stay the course with reforms to ease political tensions and facilitate the return of peace and security, and ensure the resumption of orderly development work in the affected areas.

Bank-funded projects visited by the team included the Yaoundé sanitation project (PADY), which has helped to reduce the incidence of flooding in the capital; electricity transmission and distribution networks (PREREDT), which has provided power to nearly 12,000 households in southern Cameroon with plans to power additional 16,000 households; and the 200 MW Kribi Power Development Corporation (KPDC) power plant which is supporting social initiatives for local communities in the areas of education, health, and environment.

In Kribi, the delegation also visited Cameroon’s new deep-sea port and shared perspectives with its management.

Other members of the Bank delegation include Mmakgoshi Lekhethe, Executive Director for South Africa, Lesotho and Eswatini; Cornelius Karlens Dekop for Botswana, Malawi, Mauritius, and Zambia; Takuji Yano, representing Japan, Saudi Arabia, Argentina, Austria, and Brazil; Christopher Chalmers for the United Kingdom, Italy, and Netherlands. They were accompanied by senior advisers and acting Director-General for Central Africa, Solomane Koné.

The Bank’s portfolio in Cameroon, estimated at $3 billion, is the most prominent in Central Africa in terms of commitments.

Source: The Devdiscourse

Cameroonian authorities say smuggling from Nigeria is increasing, five months after Abuja banned land border trade to crack down on the illegal business. 

At the Limbe market in southwestern Cameroon, both local and Nigerian traders say their businesses are suffering with Abuja’s ban. Traders say they regularly run short of supplies from both countries, leading to price increases of up to 15 percent.

Nigerian Miracle Ademola, 35, sells dresses to Cameroon and buys rice to sell back home. But she said she can’t afford to pay the high shipping costs to take the goods back and forth by boat.

“It has drastically affected the economy of Nigeria and the economy of Cameroon,” she said. “Smuggling things as it is now is actually not beneficial and we find it risky. We just look forward and hope for the borders to be opened any moment from now so businesses can go on as they used to.”

Cameroon depends on goods from Nigeria for 70 percent of its basic commodities.    

Cameroon’s National Institute of Statistics says about 15,000 Cameroonians trade across the 2,000-kilometer-long border with Nigeria. Nigerians also buy agricultural produce including cattle, rice, onions and cotton from Cameroon for its booming market of some 190 million people.    

But in October 2019, Nigeria closed its land borders to all trade to end rampant smuggling.

In Cameroon, the move seems to be having the opposite effect.    

Cameroonian police and customs in the southwestern town of Buea burned a huge pile of smuggled medicines from Nigeria on Sunday. Police seized the unregulated pills and tonics, which included anti-malarial and anti-inflammatories, as they were being delivered to pharmacies.

Cameroonian health official Victor Mbome said authorities are seizing more of such smuggled shipments of drugs since Nigeria closed its border.

“Each time the security forces apprehend somebody who has contraband medication, the security forces seize them. In about six months, we have destroyed contraband medication to the tune of about 50 million [CFA],” Mbome said, which is about $85,000 worth of smuggled medicine in a town of about 300,000 people.  

Cameroonian customs officials say it’s not just medicine coming from Nigeria. Smuggling of most basic goods, electronic appliances, and engine parts have all increased in the past few months.

A senior customs official for the southwest, Pierre Engamba, said customs revenue dropped 2 percent a month from October to December because of the smuggling.    

“We have more than 100 entrances in the sea. More than one hundred. We can [control] about 50, but the other 50 is a problem,” he said. “We take major strategies like night patrols with police and gendarme teams. Even [the navy]. Another strategy is to sensitize the traditional rulers, to sensitize the population. To tell them that those activities are killing our economy.”

Critics argue Nigeria’s closed border pours doubt on Africa’s continent-wide free trade agreement signed in July 2018. But Nigeria says the country is still open to trade through its ports and that the land border closure means it’s simply better regulated.    

Officials at Nigeria’s embassy in Yaounde were not available for comment.

Source: VOA