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

The revenues from Cameroon’s aluminum exports, managed by the Cameroon Aluminum Company (Alucam), reached CFA54.2 billion in 2023, marking an 11% increase from CFA48.9 billion in 2022, according to the National Institute of Statistics (INS).

Despite the revenue increase, the volume of aluminum exports remained nearly stagnant. Cameroon exported 43,916 tons of raw aluminum in 2023, a slight rise of just CFA36.7 tons compared to 43,879 tons in 2022.

This boost in revenue is a positive development for Alucam, which has faced financial difficulties since 2014 after the withdrawal of Canadian firm Rio Tinto, which held a 46.7% stake. Since becoming fully state-owned in 2015, Alucam has struggled with cash flow issues and remains the largest debtor to Cameroon’s electricity provider.

Source: Business in Cameroon

The Directorate General of Customs (DGD) within the Ministry of Finance (Minfi) aims to collect over CFA92 billion in revenue for the Treasury in May 2024. The largest contributions are anticipated from the customs sectors of Littoral I and South II, covering the ports of Douala and Kribi, respectively.

Specifically, the customs services in the Littoral I sector have been tasked with collecting CFA58.9 billion, representing over 50% of the total expected revenue. Meanwhile, the South II sector has a collection target of CFA23.3 billion, less than half of what is expected from Littoral I, amounting to a 73.3% collection goal.

Following these major contributors, the third highest revenue, amounting to CFA4.7 billion, is anticipated from the Southwest region. The smallest contribution (CFA18.7 million) is assigned to the Northwest region, which, like the Southwest, has been grappling with a socio-political crisis since late 2016.

Despite the increasing tariff dismantlement in line with the implementation of Economic Partnership Agreements (EPAs) with the European Union (EU), Cameroon’s customs revenues surpassed 1 trillion CFA francs for the first time in 2023, reaching CFA1,019.8 billion by the end of the fiscal year.

In 2024, Cameroon aims for revenues of CFA1,079.9 billion, marking a 10% increase from the previous year’s projections.

Source: Business in Cameroon

The Central Bank of Central African States (Beac) kicked off its 4th round of bond issuance on April 29, aiming to tighten bank liquidity. Through three bond issuances scheduled between April 29 and May 13, the central bank aims to withdraw a total of CFA150 billion from commercial banks’ coffers.

The first three rounds of bond issuance saw rather mixed success. Out of seven operations, at least two were declared unsuccessful due to lack of subscriptions, while almost all others barely exceeded a 30% demand coverage rate. Since the launch of these operations in February 2024, only the one on April 22, totaling CFA50 billion, saw remarkable success. This offer saw a coverage rate of 156% as reported by the central bank.

Following the increase in key interest rates, suspension of liquidity injection operations, and intensified weekly liquidity withdrawal operations, Beac bonds have become the central bank’s new tool to reduce bank liquidity and restrict access to credit. This is aimed at reducing the share of inflation of monetary origin (20%) in the Cemac zone.

Source: Business in Cameroon

The election of Célestin Tawamba as the head of the Cameroon Employers’ Association (Gecam) is hailed as a resounding success, according to a statement released after the organization’s first general assembly. Gecam was born from the merger of the Inter-Patronal Group of Cameroon (Gicam) and Cameroon Enterprises (Ecam).

Tawamba’s slate, the only one in contention, secured 550 out of 560 votes, amounting to 98.18% of the valid votes, as stated in the document signed on April 9 by the managing director, Aline Véronique Mbono.

However, the document remains silent on the number of voters. Yet, upon scrutiny of Gecam’s texts, it’s evident that the number of votes no longer matches the number of voters. The new vote distribution is as follows: large enterprises, with revenues exceeding CFA50 billion, have five votes; medium-sized enterprises, with revenues ranging from one to CFA15 billion, possess two votes; small enterprises, with revenues between CFA50 million and CFA1 billion, have one vote; and very small enterprises, with less than CFA50 million in revenue, are allocated 0.2 votes.

Some business owners turn their backs on Gecam

It is important to note that only 295 members participated in Gecam’s inaugural general assembly. This indicates that out of a potential 1,400 members, 295 have formally joined Gecam, comprising 1,000 from Gicam and 400 from Ecam. This reality tempers the claimed landslide victory and raises questions about the consensus around the merger project. Acknowledging this, sources within Gecam admit that the desired unity of the employers’ association has not been achieved. Since Gicam’s extraordinary general meeting on July 11, 2023, when 329 members voted in favor of the merger treaty, no employers’ association gathering has attracted more than 300 people.

Following the merger, a significant number of patrons have not paid their dues and are not actively involved in the activities of the new employers’ organization. Notable absentees include Abakal Mahamat, the CEO of BGFIBank Cameroon, and Reine Essobmadje, the CEO of Evolving Consulting, who was previously one of the vice presidents in Gicam’s last board of directors under Célestin Tawamba’s presidency.

“Many of us were left unsatisfied with the underlying project behind such a merger,” stated Jacques Jonathan Nyemb, a member of the Gicam board of directors, back in December. Nyemb, who served as the spokesperson for Célestin Tawamba until July 11, 2023, further believes that the merger process was marred by irregularities both in substance and in form. This led Emmanuel Wafo, then president of the Gicam’s economic and business development commission, to file several complaints that are still pending before the courts in Douala. For opponents of the merger, the sole aim of this project was to dissolve the country’s largest employers’ organization, thus allowing Célestin Tawamba to prolong his tenure at the helm of Cameroonian business leadership by assuming control of the newly created employers’ federation. It’s worth noting that Gicam’s regulations prevented him from running for office again at the end of his second term in December 2023.”

Tawamba gained ground

At the treaty signing on April 5, 2023, the project’s initiators, Célestin Tawamba and Protais Ayangma, then presidents of Gicam and Ecam respectively, outlined their goal of building a new, stronger, more modern, influential, and representative employers’ organization. Despite some patrons’ reluctance, Tawamba has garnered support, securing official endorsement from the country’s authorities. The inaugural board of Gecam, which he heads, was received by Prime Minister Dion Ngute on April 24, 2024, and the following day by the Secretary-General of the Presidency, Ferdinand Ngoh Ngoh.

During these meetings, the board presented its program and action plan for the next four years. This program focuses on positioning Gecam at the forefront of discussions for implementing policies affecting the business environment, restructuring its organizational framework to provide tailored services to members based on their size and sectors, and supporting SMEs and micro-enterprises to become engines of growth and employment within Cameroon and the region, particularly within the framework of the AfCFTA.

According to reports from these meetings, “Ferdinand Ngoh Ngoh expressed readiness to further support the employers’ association in finding sustainable solutions to improve the business environment through a more inclusive approach.” Prime Minister Dion Ngute emphasized the need for a new paradigm of public-private dialog where the government and employers are equal partners with the same objective.

Source: Business in Cameroon

The Cameroon government has postponed its planned 2024 bond sale, originally slated for April, due to market saturation caused by Gabon and the Central African Development Bank (BDEAC). A source within the Ministry of Finance Treasury Department revealed ongoing negotiations for the delay.

With regional capital markets facing adversity, marked by difficulty in accessing funds, Cameroon opts for caution, refraining from pursuing significant borrowing. Gabon and BDEAC, preceding Cameroon with bond issuances totaling CFA200 billion earlier in 2024, faced challenges in attracting subscriptions, leading to extending their bond closure dates.

Despite offering various interest rates and maturity terms, both Gabon and BDEAC had to prolong their bond subscription deadlines due to underwhelming responses from investors. This move aims to grant them more time and a better opportunity to attract hesitant investors.

In light of this cautious market environment, Cameroon, accustomed to controlled interest rates, refrains from significant borrowing. The country’s preference for controlled rates contrasts with the current trend of rising interest rates, a consequence of the Central African Central Bank’s austerity monetary policy to combat inflation by tightening liquidity. Amid uncertain market conditions, Cameroon prepares to preserve its treasury amidst difficulty in accessing fresh funds. The government plans to repurchase certain bonds issued on the regional market, scheduled for early May, totaling between CFA150 billion and CFA200 billion. This strategy aims to extend repayment dates for bonds nearing maturity, ensuring liquidity for essential priorities.

Source: Business in Cameroon