An extraordinary meeting of the board of Cameroon’s oil and gas corporation (SNH) is scheduled for next July 24 at the Presidential Palace, not at the company’s headquarters. The info is detailed in a letter from the board’s chairman, Ferdinand Ngoh Ngoh, who also serves as the Secretary General of the Presidency.

“Dear Board Member, I am pleased to inform you that the extraordinary board meeting of SNH, originally planned for Wednesday, July 17, 2024, has been rescheduled to Wednesday, July 24, 2024, at 2:00 PM, in Room 8324 of the Secretary General’s Office at the Presidential Palace, maintaining the same agenda,” reads the letter from Ngoh Ngoh to board member Jules Mana Nschwangele. This notice confirms various rumors circulating since July 17, 2024.

The rescheduling confirms that the board meeting initially set for July 17 did not take place. Reports from various digital platforms, later corroborated by board members, indicate that the meeting was blocked due to the closure of the company’s doors, a decision reportedly made by SNH’s current General Administrator, Adolphe Moudiki.

Handover of power

Internal sources suggest that on July 17, 2024, board members were turned away from SNH’s headquarters despite arriving to attend the meeting. The shift of the meeting to the presidential palace highlights the challenges in organizing such events at the company’s main office.

Furthermore, the board’s notification hints at a significant decision expected from this extraordinary session, which has only one item on the agenda, according to the Secretary General’s letter. Various sources indicate that the meeting will likely lead to the replacement of the General Administrator. After 31 years in charge, Adolphe Moudiki is expected to be succeeded by Joseph Dipepa, a prominent RDPC party member from the Littoral region.

It appears that Moudiki’s frustration is not solely with the prospect of being replaced but also with not being informed about his impending departure from the company. Additionally, there seems to be dissatisfaction about not being consulted on a replacement, as Dipepa’s appointment has reportedly stirred discontent among SNH’s old guard. Notably, on March 6, 2024, Moudiki signed a memo hinting at a power transition, though it still left him central to the management structure while delegating significant responsibilities to Igor Emmanuel Soya Bissaya, his second advisor.

Glencore Case

Beyond the anticipated leadership change at SNH, recent developments reflect ongoing tensions between the General Administrator and the Chairman. Disputes have arisen in connection with the Savannah Energy case. This British junior oil company had signed an agreement with SNH on April 19, 2023, to purchase 10% of assets claimed by Savannah in the Cameroon Oil Transportation Company (Cotco), which manages over 90% of the Chad-Cameroon pipeline in Cameroon. This agreement led to a diplomatic crisis between Cameroon and Chad, with Chad contesting Savannah’s claims in Cotco and in Chad Oil Transportation Company (Totco), as well as in Chadian oil fields.

In response, SNH Chairman Ferdinand Ngoh Ngoh was dispatched to N’Djamena by President Biya, following Chad’s recall of its ambassador from Cameroon. Ngoh Ngoh announced the resolution of the crisis after meeting with the Chadian President on April 26, 2023. He then chaired an SNH board meeting on June 13, 2023, where the transaction with Savannah Energy was “frozen.” Unusually, the official statement on this decision bore the Presidential Palace’s letterhead instead of SNH’s. Sources suggest this statement bypassed another version being prepared by SNH before being sent to the Chairman for approval.

Additionally, there is the Glencore case, involving the Anglo-Swiss trader sentenced in November 2022 for bribing public officials in Africa, including Cameroon. After SNH publicly denounced such practices, Moudiki reportedly sought a state investigation into SNH’s involvement in the Glencore scandal. This request, though approved by the President, is seen by some as a move to settle scores with close aides of the President.

Source: Business in Cameroon

In June 2024, consumer prices in Cameroon rose by 4.3% year-on-year, according to a report on household consumption prices published by the National Institute of Statistics (INS). This increase is attributed to a 5.2% rise in food prices and an 11.2% increase in transportation costs.

Despite a gradual decline from a peak of 8.5% in March 2023, the inflation rate remains above the 3% tolerance threshold set by the Central African Economic and Monetary Community (CEMAC).

“On a regional level, inflation rates vary between 5.1% and 7.4%. However, the rate is 3.6% in Bamenda (…) Depending on the origin of the products, inflation is mainly due to internal factors. Prices of local products rose by 6.1%, while those of imported products only increased by 4.5% over the same period”, states the INS report.

Source: Business in Cameroon

Anglophone businessmen and women have told the Cameroon Concord News Group that they have suffered huge losses since President Biya declared war against the English speaking people of Southern Cameroons and many have attacked the regime in Yaoundé for refusing to bail them out.

Now known as the Southern Cameroons Crisis, the leader of the English speaking peoples of West Cameroon Sisiku Ayuk Tabe declared the independence of Southern Cameroons from the majority French speaking East Cameroun.

The regime in Yaoundé responded with a genocidal war that has claimed the lives of thousands of Southern Cameroonians.

Reacting to the Southern Cameroons plight, Ambazonia fighters from both the South West and North West have staged hundreds of anti French Cameroun operations killing more than five thousand Cameroon government army soldiers.

Our chief correspondent Rita Akana approached several businessmen and women in Bamenda, Buea, Kumba and Mamfe who described how they had been piling up losses as a result of the war in Southern Cameroons and Biya regime’s rejection of their pleas for compensation.

Hotel owners said the Anglophone diaspora came home every December in their thousands and visited their hotels and entertainment halls and restaurants. But everything is now frozen and the loss so far is estimated in millions of US dollars.

“Not one person from Europe or the US will come to Limbe or Buea this December,” a businessman who spoke to our cream of reporters but sued for anonymity said.

“We are not asking Biya and his government for 100% compensation. Bring even 20%, that will be okay. But since the war started and kontry Sunday took over, we haven’t received a penny from Yaoundé,” a Bamenda based business lady added.

Five hotel managers in Bamenda echoed her remarks.

A businessman in Kumba the chief city in Meme Division noted how his business used to provide for 24 employees and attract hundreds on a daily basis.

Now, “we spend most of our time rolling over debts,” he stated.

Three hotel owners in Fako Division hinted that their hundreds of millions of FCFA investments have evaporated following the war and they are sure to end 2024 in debt for the loans and interest,” they said.

Reporting last month, our Bamenda City reporter Fon Lawrence revealed that many businesses had shut down throughout the North West region since the beginning of the war and the fire that destroyed the Bamenda Main Market.

By Soter Tarh Agbaw-Ebai

Africa’s vast tourism potential remains untapped due to a lack of air connectivity, with Africa currently accounting for just 1.9% of global passenger and cargo traffic. However, aviation experts believe national tourism boards have a unique opportunity to drive new airline routes and spur economic growth.

At a recent AviaDev Africa workshop, which was hosted in collaboration with the SADC Business Council Tourism Alliance, airline executives stressed tourism boards’ power lies in leveraging market data and industry relationships to convince sceptical carriers of new routes’ long-term viability.

“Tourism is more than just leisure; it’s a critical economic activity that requires strategic thinking and collaboration across sectors,” said Kojo Bentum-Williams, UN Tourism’s Senior Africa Communications Expert.

Sylvain Bosc, former Chief Commercial Officer of SAA and Fastjet, stressed the importance of demonstrating sustained profitability. “Destination marketing organisations (DMOs) must sell a long-term vision highlighting the destination’s growth prospects and economic impact,” he said. “Creative incentives like co-marketing, reducing airline costs, and quantifying passenger volumes can be more powerful than direct subsidies.”

Bosc noted DMOs need to “bring new light” to data airlines already have by offering insights into upcoming local economic developments like new mines or infrastructure projects that could drive corporate traffic. “Local insights can provide airlines with the confidence they need to invest in new routes,” he said.

Natalia Rosa, Project Lead of the SADC Business Council Tourism Alliance, underscored the critical role of aviation in regional development: “Aviation is not a luxury, it’s the lifeblood of a modern regional economy. Improved air connectivity unlocks a range of benefits: it streamlines travel, opens doors for new tourism markets, and strengthens regional economic ties.”

Gavin Eccles, Head of Vertical at BAE Ventures, emphasised tourism boards must be “at the table” with compelling cases backed by local market insights, travel trade ties and unique selling points that airlines often lack.

“Tourism boards should not only provide data but also offer a local perspective that airlines may not have,” Eccles said, citing India’s successful “Incredible India” branding undermined by poor connectivity.

Regional coordination like aligned visa policies, joint itinerary promotion and tapping conservation funds can also help finance route development. But Tim Harris of Helm Growth Advisors cautioned: “Retaining and expanding existing airline services should be the priority before attracting new routes.”

While direct subsidies face sustainability questions, Bentum-Williams said other incentives enable an “environment of trust” for profit-focused airlines.

“There’s a need to change the narrative from just paying airlines to fly routes to creating an environment of trust and confidence,” he said.

Jillian Blackbeard, CEO of Africa’s Eden Tourism Association, highlighted successful collaboration with Proflight through local stakeholder and trade backing, building airline confidence without major incentives.

“We worked closely with Proflight and local stakeholders to ensure that routes were supported by the trade and the private sector, which helped build confidence in the airline and led to successful route development without significant financial incentives,” Blackbeard shared.

Coordinated efforts leveraging DMOs’ destination expertise can unlock increased connectivity – a lifeline for Africa’s tourism economies long grounded by poor air links.

The AviaDev Africa workshop was designed as a platform for action to address the challenges of the aviation industry and collaborate on solutions. The intention from the outset was to examine how tourism stakeholders, including national tourism organisations and private sector tourism associations, can become involved in route development and assist airlines with route promotion. The success of the workshop and has now secured it a place at AviaDev 2025 in Zanzibar. Scheduled for the welcome reception day before the main conference, it will equip tourism delegates with essential route development building blocks and comprise two days of networking and collaboration focused on reshaping African aviation’s future.

The Executive Board of the International Monetary Fund (IMF) completed today the sixth reviews under Cameroon’s Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements. The completion of the ECF-EFF reviews allows for an immediate disbursement of SDR 55.2 million (about US$ 72.7 million), bringing total disbursements under the arrangements to SDR 483 million (US$ 644.6 million). The Executive Board also completed the first review under the Resilience and Sustainability Facility (RSF) arrangement. Completion of this review makes available SDR 34.5 million (US$ 45.4 million).

The Executive Board approved waivers of nonobservance of two performance criteria on the floor on the non-oil primary fiscal balance at end-December 2023 and the continuous zero ceiling on the accumulation of new external payment arrears on the ground that the nonobservance was minor and temporary. In addition, the Executive Board approved a waiver of applicability for four end-June 2024 performance criteria, for which data are not yet available and there is no evidence that they were not observed.

Cameroon’s three-year ECF-EFF arrangements were originally approved by the IMF Executive Board for a total amount of SDR 483 million (US$ 689.5 million, or 175 percent of quota) in July 2021. An extension of these arrangements of 12 months was approved in December 2023 to allow more time to implement the policies and reforms, and access was augmented by SDR 110.4 million (US$ 145.4 million, or 40 percent of quota). The 18-month RSF was approved by the Executive Board in January 2024 in the amount of SDR 138 million (US$ 181.7 million, or 50 percent of quota).

Cameroon’s ECF-EFF-supported program continues to provide a strong anchor for the authorities’ economic program, notably efforts to achieve post-COVID-19 recovery, restore the country’s fiscal and external sustainability and unlock inclusive and private sector-driven growth. The RSF supports Cameroon’s efforts to adapt to and mitigate the impact of climate change, reinforce the growing engagement of development partners and other stakeholders in climate-resilient development and catalyze additional climate financing.

Preliminary data indicate that Cameroon’s post-COVID-19 recovery continued last year, with overall economic growth estimated at 3.3 percent, slightly below expectations due to external and domestic factors, including supply chain and energy disruptions and a contraction of oil production. Growth is expected to pick up to 3.9 percent in 2024 and remain above 4 percent in the medium term as domestic demand strengthens and the external environment stabilizes. Inflation moderated to 5.9 percent at end-2023. A continued decline to 5.5 percent is expected by end-2024.

At the conclusion of the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, made the following statement:

“Cameroon’s economic growth continues despite the challenging domestic and external environment. Moreover, while the balance of risks remains tilted to the downside, the country’s medium-term outlook is favorable. Although performance under the Fund-supported program has been mixed, the ECF-EFF arrangements are supporting the authorities’ efforts to maintain macroeconomic stability and implement priority reforms to promote inclusive growth. Moreover, the authorities are committed to implementing corrective measures to improve program performance and accelerate reforms.

“To preserve macroeconomic stability, it is important to maintain a fiscal path in line with program objectives. This implies strengthening domestic non-oil revenue mobilization and public financial management. Limiting spending done through exceptional procedures is essential to achieve budget discipline and integrity.

“Cameroon’s financial soundness indicators have generally improved, but vulnerabilities remain. The commitment by the authorities to advance bank recapitalization in compliance with the COBAC regulations and Basel capital adequacy framework is welcome.

“To improve the business environment and support private sector-led inclusive growth, it is critical to implement governance reforms, address corruption vulnerabilities, and strengthen the AML/CFT regime.

“The authorities have made commendable progress under the RSF, which is helping Cameroon integrate climate considerations into its institutional and regulatory frameworks and enhance its capacity to adapt and mitigate the effects of climate change. It is essential to maintain the reform momentum to further strengthen the institutional framework for climate policies, build resilience to climate shocks, and catalyze new investments from donors and the private sector.”

Source: IMF

On June 19, the Court of Cassation in Paris ruled in favor of the Port of Douala (PAD) in its dispute with the French group Bolloré over container terminal concessions.

The court overturned a previous decision by the Paris Chamber of Commerce, which had ordered the port to pay €58.6 million to a Bolloré subsidiary that lost a bid for the concession.

This marks a major victory for the Port of Douala in a five-year legal battle against Douala International Terminal (DIT), formerly a Bolloré subsidiary now owned by MSC Group. DIT had sued the port after losing the contract renewal for the container terminal.

Bolloré and its partner, APMT, had managed the terminal for 15 years and claimed the bidding process was unfair.

In early 2019, DIT sought arbitration with the International Chamber of Commerce in Paris. In November 2020, the chamber ordered the port to pay €58.6 million to DIT for damages.

The French Court of Cassation recently overturned this decision due to irregularities in the arbitration tribunal, including collusion between a judge and a Bolloré lawyer. However, DIT believes the ruling is procedural and not yet final, indicating the case continues.

Source: Africa News

Many vendors at the Great Soppo Market, popularly known as “OIC Market”, have been displaced from their business locations by Buea municipality authorities.

An ongoing road construction project is underway at the Bakweri town stretch in Great Soppo, which has led to the closure of the main road which leads to the area.

Currently, vehicles now use the Great Soppo market as a transit road to Bakweri town.

To make the road more accessible and free of any hindrance, some vendors have been displaced and moved to the Bwitingi market, popularly known as the Buea Central Market, which many consider to be unsafe due to frequent attacks by Ambazonia fighters in the area.

One of the sellers expressed her concerns, pointing out that it would be difficult to build a new client base because some of the buyers would have a hard time locating them.

Another trader said that she would experience a massive decline in sales because the Bwitingi market only opens twice per week.

The Great Soppo Market (OIC Market), which is operational throughout the week irrespective of any imposed lockdowns by the separatists groups, is the most visited market in Buea since the start of the ongoing crisis.

While many people are angry that they are being moved to a new location, many do agree that the city needs to develop, adding that Buea is in dire need of such infrastructure projects.

“Our city needs good roads and this road will go a long way in reducing the growing traffic in Buea. We are growing as a city and we need modern infrastructure to make our lives easier,” one of the traders said.

“Our city officials are trying to make our lives better and we all know that our current market location is simply not the best as it creates lots of traffic and this hurts us all. We must accept our pain in the interest of our city and I am sure the road will be a blessing to all Buea residents and tourists,” he added.

By Cecilia M. Manjang

An International Monetary Fund (IMF) team, led by Ms. Cemile Sancak, Mission Chief for Cameroon, visited Yaoundé during April 25-May 8 and held virtual meetings during May 9-31 to discuss progress on reforms and the authorities’ policy priorities in the context of the sixth reviews of the four-year program supported by the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements, and the first review of the Resilience and Sustainability Facility (RSF). The ECF/EFF arrangements were approved by the IMF Executive Board for a total amount of SDR 483 million (US$ 689.5 million) in July 2021 (see press release 21/237). An extension of these arrangements of 12 months was approved in December 2023 to allow more time to implement the policies and reforms, and access was augmented by SDR 110.4 million (US$ 147.6 million, see press release 23/469). The 18-month RSF was approved by the Executive Board in January 2024 in the amount of SDR 138 million (US$ 183.4 million, see press release 24/30).

At the conclusion of the discussions, Ms. Sancak issued the following statement:

“The IMF and the Cameroonian authorities have reached staff-level agreement on the sixth reviews of the ECF/EFF arrangements, and the first review of the RSF arrangement. The agreement is subject to approval by the IMF Executive Board, with Board consideration expected in late June. Completion of the reviews would enable disbursement under the ECF/EFF arrangements of SDR 55.2 million (US$ 73.0 million), and disbursement under the RSF arrangement of SDR 34.5 million (US$ 45.6 million).

“Preliminary data indicate that Cameroon’s post-COVID-19 recovery continued last year, with overall growth of 3.3 percent. This is lower than the 3.6 percent realized in 2022 and the previous growth forecast of 4 percent in 2023 due to a combination of external and internal factors, including supply chain and energy disruptions and a contraction in domestic oil production. Inflation subsided from 7.3 percent at the end 2022 to 5.9 percent at end 2023.

“Headline fiscal developments were broadly in line with program objectives. The non-oil primary deficit improved to 2.6 percent of GDP in 2023 (from 3.9 percent in 2022). The consolidation effort was supported by a strong non-oil revenue and the government’s efforts to reduce costly fuel subsidies. However, effective public financial management remains a persistent challenge, with substantial extra-budgetary expenditure in 2023. This translated in overruns on current spending, and the non-oil primary deficit target under the program was missed by a small margin. The current spending overrun also constrained resources for priority, pro-growth investment, underlining the need to redouble efforts to strengthen budget integrity and execution. The authorities intend to introduce a revised 2024 budget to limit expenditures executed through treasury advances and adopt a plan to clear domestic arrears, among others. There was a minor breach of the ceiling on the accumulation of new external payment arrears. 

“Prospects remain favorable provided continued reform and a supportive external environment. Economic growth is now expected to increase to around 4 percent in 2024. The decline in inflation will be gradual given the impact of the second pump price increase early in 2024, and it will reach 5.5 percent by year end. The authorities are preparing a revised budget for 2024 and have expressed their continued commitment to maintaining macroeconomic stability and to further reducing the non-oil primary fiscal deficit to 2 percent of GDP in 2024.

“The authorities are making good progress on their structural reform agenda. Meeting the ambitious objectives of the national development strategy for 2020-30 (SND30) will require stepping up these efforts, especially those that would create fiscal space for infrastructure investment while maintaining debt sustainability. Reforms to support a deep structural transformation of the economy also need to be accelerated, including to improve the business climate for the private sector. The mission encouraged the authorities’ efforts to strengthen the performance and financial management of public enterprises, complete technical studies related to the restructuring of SONARA, and strengthen the anti-corruption framework.

“The authorities recognize the need to strengthen Cameroon’s resilience to climate change. Under the RSF, the government has intensified its efforts to improve the climate policy framework. Work is well advanced on the initial reform measures that entail adoption of an order establishing the institutional framework for the coordination of the climate agenda, and publication of a project selection procedure manual that integrates criteria relating to climate change. Work is ongoing on a series of important reform measures, including a national climate plan, a national strategy for disaster risk financing, climate-related public investment management, and in the governance and sustainability of the forestry sector.

“The IMF team met with the Prime Minister, Joseph Dion Ngute, the Minister and Secretary General of the Presidency, Ferdinand Ngoh Ngoh, the Minister of Finance, Louis Paul Motaze, the National Director of the BEAC, Emmanuel Nkoa Ayissi, and other senior officials. The mission also met with representatives of development partners, the diplomatic community, the private sector, and civil society. The team wishes to thank the Cameroonian authorities for their excellent cooperation.”

Reported by the IMF Communications Department

On May 27, 2024, the Central Bank of Central African States (BEAC) successfully withdrew CFA41 billion (out of the targeted CFA50 billion) from the CEMAC banking system. This liquidity withdrawal was achieved through the issuance of bonds with a maturity of 28 days, offering a 3.5% return.

This marks the first phase of a series of three operations, with the central bank aiming to withdraw a total of CFA150 billion. Two additional bond issuances, with a maturity of 14 days and a 2.5% return, are scheduled for June 3 and 10, 2024, as per the calendar released by the central bank.

Following the increase in benchmark interest rates, suspension of liquidity injection operations, and intensified weekly liquidity withdrawal operations, BEAC bonds represent the new tool in the central bank’s strategy to deplete bank reserves and restrict access to credit. This move is aimed at reducing the portion of inflation originating from monetary sources within the CEMAC region.

Source: Business in Cameroon