Cameroon – A country of contrasts
Half of Cameroonians make their living from agriculture. At the same time, the country’s government is trying to use massive infrastructure investments to turn it into an emerging market. It is using oil revenues to do this. But the poverty level is high.
Travelling to Africa is very popular among diplomats these days. Egypt, Ethiopia, the Congo are moving into their spotlight, but also smaller countries like Cameroon. The focus is on increased economic cooperation, but also on various raw materials – such as uranium, manganese, oil and gas. Russian Foreign Minister Sergei Lavrov has been there, French President Emmanuel Macron has been there, and so has US Secretary of State Anthony Blinken. The African countries that Blinken visited were carefully selected: South Africa, the Democratic Republic of the Congo, and the neighbouring country Rwanda were on his itinerary this summer. In addition, US President Joe Biden has invited African leaders to attend a summit in Washington in December.
These diplomatic offensives show what an important economic as well as political role Africa will play in the near future. One important goal of the Americans is to forge stronger ties between the US and its old allies in these times of geopolitical tension. Or at least that’s how Daniel Silke, a political analyst in South Africa, sees it: “The three big superpowers are all vying for Africa’s attention, both from a political-diplomatic point of view and in terms of raw material exports.” Christoph Kannengiesser, CEO of the German-African Business Association, is also certain about the logic here, saying: “It’s about resources and sales markets.”
A small country like Cameroon could soon play a much more important role, as it has the strongest economy among the members of the Economic and Monetary Community of Central Africa (CEMAC). Despite the pandemic, civil war and sharply increased food prices, real economic growth is expected to rise from 3.4 per cent in 2021 to 3.6 per cent in 2022 and then 4.4 per cent in 2023, writes Fitch Solutions Country Risk & Industry Research in a recently published report. Fitch Solutions also predicts that progress on major transport and energy infrastructure projects will boost investment.
This also includes the Kribi deep-sea port, which the Chinese built in Cameroon. With a lot of Chinese money, it is to be further expanded to become the largest hub port in Central and West Africa – which means it will also handle raw materials from the Congo. Kribi has also been a regular port of call for Hapag-Lloyd since its acquired the Dutch container shipping company and Africa specialist NileDutch in July 2021. “The continent remains an important strategic market for us,” said Hapag-Lloyd CEO Rolf Habben Jansen after antitrust authorities granted their final approval for the acquisition.
At present, the country’s most important export products are crude oil, timber and agricultural products, such as cocoa. Much of this is shipped to China, but the former colonial power France is also a major importer. German exports to Cameroon are primarily used motor vehicles, packaging equipment, construction machinery, foodstuffs and chemicals.
“On the economic level, infrastructure development – especially in the areas of energy, telecommunications and transport (highways, roads, airports, ports) – as well as the ratification of the AfCFTA agreement should strengthen local production, accelerate trade and boost the country’s economic growth,” says Gilbertine Wafeu, Hapag-Lloyd AG’s country manager for Cameroon. “And the direct access to the Atlantic provided by Kribi’s deep-sea port should lead to an increase in exports of products, such as raw rubber and minerals.”
The port is about 285 kilometres from Yaoundé, the capital city, as well as strategically located in the centre of the Gulf of Guinea and surrounded by the 262-square-kilometre Kribi Industrial Port Complex. Several international corporations, including some German ones, have set up operations here. The government led by 89-year-old President Paul Biya is investing heavily in the development of its infrastructure in order to improve the overall environment for private companies and to make better use of the country’s natural resources.
“The combination of the quality of the infrastructure and the expertise of the port operators ensures that ships and goods in transit through this smart port will enjoy a service of the highest international standard,” Wafeu explains. “As a result, Hapag-Lloyd will be able to handle cargoes in the port of Kribi safely and with a lot fewer delays than in the past. On top of that, the Port of Kribi offers easy access to Chad and the Central African Republic thanks to its location in the heart of the Gulf of Guinea. Lastly, it is also a natural hub for all maritime transport to other ports in the Gulf of Guinea.”
Cameroon was long considered an anchor of stability in the region. But this status has been eroded by rampant corruption and rising tensions between the English-speaking separatists and the government. Nevertheless, Cameroon’s government aims to achieve the status of a newly industrialising country by 2035. According to the World Bank, however, almost one in four Cameroonians still lives below the poverty line and has less than USD 1.9 a day at their disposal.
Cameroon has one of the larger domestic markets in Africa as well as a young population, like the other countries on the continent. Almost 62 per cent of the almost 25 million inhabitants are younger than 25. And what they want most are an education and jobs. According to the International Labour Organization (ILO), a total of 8.7 per cent of 15- to 24-year-olds were without a job in 2017. About half of the labour force is engaged in agriculture, which accounts for 23 per cent of GDP, whereas industry accounts for 28 per cent and services for 49 per cent. Above all, the sharp rise in the price of crude oil in recent months should now enable the government to pursue its ambitious economic growth and investment plans with more vigour – and thereby also create more jobs.
© Hapag-Lloyd AG