Cameroon WT/TPR/S/87
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I. ECONOMIC ENVIRONMENT
(1) INTRODUCTION
1. Since its previous Trade Policy Review in  1995, Cameroon's economy has slowly but steadily
recovered from the prolonged depression during 1985/86-93/94.1  Relatively high economic growth
rates have been achieved over the last five fi scal years (1995/96-99/00) with an average annual
growth rate of 4.7%.  Over the same period, inflation has been low (annual average of 3.6%) and largeprimary surpluses (annual average of 5.8% of GDP) have been recorded.  The outlook for 2000/01 is
good, including a growth rate of over 5%.  Favourable external events are important factors in the
improved performance.  Implementation of structural  reforms has also contributed to the relatively
good growth outcome.  Acknowledging Cameroon's good progress with its reform programme, the
IMF and the World Bank agreed in the latter part of 2000 to support a comprehensive external debtreduction package for Cameroon.
2. Nevertheless, the country still suffers from widespread poverty, inadequate attention to basic
health and education services, and weaknesses in governance.  In 1999/00, GDP per capita had not yet
reached its pre-depression level.  Cameroon's health system seems to have deteriorated (Table I.1).
2
In the area of education, the World Bank and the IMF note that "quality and enrolment rates have
significantly deteriorated over the last decade, to the point where such a decline is unique for a
country that has not experienced civil war or conflict".3  Poverty affects slightly more than half of the
population4, while HIV/AIDS has become a serious risk to the development of the economy.5
Moreover, corruption continues to be a major obstacle to private investment and efficiency of publicexpenditure.
6  Thus, significant progress has been achieved in some areas while there has been no
progress (or even deterioration) in others.
(2) RECENT ECONOMIC DEVELOPMENTS
Summary
3. At the time of the previous Review, the Ca meroonian economy started to show signs of an
economic recovery from its deep eight-year depression.  A large decline in its terms of trade, an
overvaluation of the CFA franc, and unproductive fiscal policy financed by foreign debt
accumulation, had taken the economy into a depression.  During this period, per capita income halved,and poverty became widespread.
7  Investments in the social sectors and infrastructure suffered.
Arrears mounted on Cameroon's large external debt.  In 1994, a devaluation of the CFA franc, as well
as trade and fiscal reforms implemented region-wide in the Central African Economic and Monetary
Union (CEMAC), improved the external economic environment.  Cameroon's efforts to turn the
economy around were supported by the Bretton Woods institutions as well as bilateral donors.Reform efforts focused on macroeconomic stability, public finance, restructuring of the banking
sector, privatization, economic liberalization, transportation, and forestry.
                                                     
1 Cameroon's fiscal year is from 1 July to 31 June.  Real GDP had fallen in each but one year, reducing
GDP per capita in 1994 to its lowest level in over 25 years (GATT, 1995).
2 However, according to the World Bank and the IMF, available social-sector data are neither
comprehensive nor reliable (IDA and IMF (2000)).
3 IDA and IMF (2000).
4 Government of Cameroon (2000a).
5 The HIV infection rate is estimated at 7.7% (end 1999) among adults and 11% (September 2000)
among sexually active people (UNAIDS and WHO (2000), and World Bank (2001)).
6 See for example IDA and IMF (2000), and World Bank (2000a).
7 IDA and IMF (2000).WT/TPR/S/87 Trade Policy Review
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Table I.1
Cameroon at a glance, 1991-2000
1991 1998
Total fertility rate 5.8 5.2
Per cent of births attended by trained personnel 64 58
Per cent of children aged 12-23 months completely vaccinated 41 36
Infant mortality rate (per 1,000 live births) 65 77
Under-fives childhood mortality rate (per 1,000 live births) 126 151
1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00
GDP per capita (U.S. dollars) 946 616 602 665 646 600 617 645
Share of GDP (per cent):
   Primary sectora28.0 30.2 31.6 32.0 31.7 32.1 32.7 30.7
   Secondary sector 26.6 27.5 27.1 26.0 26.9 25.9 24.5 27.6
      -  mining 8.0 9.2 8.8 7.0 8.2 6.7 4.6 7.7
      -  manufacturing 13.4 12.8 12.9 13.5 13.4 13.7 14.0 13.6
      -  electricity, gas and water 1.8 1.7 1.6 1.6 1.6 1.6 1.7 1.6
      -  housing and public works 3.4 3.8 3.8 3.9 3.7 3.9 4.3 4.9
   Tertiary sector 43.1 40.0 39.0 39.3 38.5 40.0 39.8 38.9
   Indirect taxes net of subsidies 2.3 2.3 2.4 2.8 2.9 3.0 3.0 2.8
Memo :  share of non-oil sector 92.0 90.8 91.2 93.0 91.8 93.3 95.5 92.6
a Including food and cash crops, livestock, hunting, fishing and forestry.
Note: Fiscal year begins on 1 July.
Source : WTO Secretariat, based on information provided by the Cameroonian authorities;  and IDA and IMF (2000),
Cameroon – Preliminary Document on the Enhanced Initiative for Heavily Indebted Poor Countries , Table 2
(health indicators data).
4. Relatively high growth rates (annual average of close to 5%) have been recorded since
1995/96 (Table I.2).  Over the same period, inflat ion has been brought down, to an estimated 2% in
1999/00.  On the fiscal front, progress has been made  towards fiscal sustainability.  Although falling
somewhat in 1999/00, gross domestic investment as  a share of GDP has followed an upward trend,
with a large part of the increase financed by increases in national savings.  On the external front,exports have recovered since the devaluation, and an annual average current account deficit (including
grants) of 3.3% of GDP has been maintained during 1995/96-99/00, albeit with some fluctuations.
External sector and debt management
5. The external current account position has fluctuated along with the terms of trade changes
during the period under review (Table AI.1).  In 1996/97, the current account deficit (includinggrants) improved by 1.3 percentage points to 2.8% of GDP in parallel with a terms of trade
improvement of 5% (Table I.2).  Two years later, the external current account deficit widened from
2.7% of GDP in 1997/98 to 4.3% in 1998/99.  During the same period, the terms of trade deteriorated
by 15% reflecting a large drop in international prices of nearly all of Cameroon's main export
products.  In addition, the financial crisis in Asia negatively affected Cameroon's exports of logs toAsia.  The external current account deficit is estimated to have narrowed in 1999/00, benefiting from
improved export perfomance related to higher oil prices.  During the period under review, Cameroon's
external current account deficits have been fully or substantially financed by foreign investment (see
below).Cameroon WT/TPR/S/87
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Table I.2
Selected economic indicators, 1993-2000a
1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/2000b
Real economy (Per cent)
Change in real GDP -2.5 3.3 5.0 5.1 5.0 4.4 4.2
Gross national savings/GDP 11.2 13.7 11.2 13.4 15.7 15.2 15.2
Gross domestic investments/GDP 15.3 14.5 15.4 16.2 18.4 19.5 18.0
Change in consumer prices (end of period) 20.0 13.4 4.6 7.0 2.2 2.2 2.0
Public finances (Per cent of GDP)
Central government budget (excluding grants)c-9.2 -3.2 -1.8 -1.0 -1.7 -3.4 -0.3
     Revenues 10.1 12.9 14.3 15.1 16.2 15.5 19.0
          Non-oil revenues 7.9 10.3 11.2 11.0 12.3 13.0 13.5
Primary budget balanced0.8 3.8 5.4 5.8 5.9 4.6 7.1
Money and interest rates (Per cent)
Change in broad money .. 6.1 -5.1 13.8 7.8 9.7 10.5
Interest ratee.. 8.8 8.0 7.5 7.5 7.5 ..
External economy (US$ million, unless otherwise indicated)
Merchandise trade balance/GDP (%) 5.3 7.3 4.4 5.1 4.0 2.1 3.0
     Merchandise exports, f.o.b. 1,433 1,664 1,605 1,816 1,800 1,689 2,137
     Merchandise exports (volume growth rate) (%) -11.0 1.6 7.4 13.8 11.1 8.2 0.8
     Merchandise imports, f.o.b. 1,017 1,074 1,201 1,347 1,452 1,498 1,608
     Merchandise imports (volume growth rate) (%) 3.0 -5.7 13.2 19.5 14.5 0.8 12.8
Current account balance (including grants) -327 -62 -375 -257 -235 -393 -243
Current account balance/GDP (including grants) (%) -4.9 -0.8 -4.1 -2.8 -2.7 -4.3 -2.7
Capital account balance -644 -513 -352 -358 -103 -141 -27
     Direct investment, net .. 101 120 126 140 142 109
     Portfolio investment, net .. 125 146 148 113 72 71
Total external public debt/GDP (per cent) 122.7 97.4 87.4 83.5 87.8 87.9 81.0
Actual external public debt servicef.. 48.3 24.9 19.6 16.1 17.8 16.5
Gross official reserves, incl. gold 13.6 12.7 14.0 11.2 10.8 9.7 ..
Change in terms of trade (per cent) .. .. -8.6 5.1 -4.5 -15.3 32.4
Exchange rates
Nominal exchange rate (CFA francs per U.S. dollar) 435.0 518.6 501.8 541.1 602.1 588.5 658.2
Change in real effective exchange rate (per cent)g-24.8 -11.9 6.4 -1.8 -0.6 8.5 -10.8
Memo: Gross domestic product (CFA francs billion) 3,416     4,130        4,571       4,932     5,240     5,406 5,701
.. Not available.
a Fiscal year begins on 1 July.
bP r o j e c t e d .c Commitment basis.
d Excluding foreign-financed investment, privatization proceeds, and restructuring expenditure.
e Bank of Central African States (BEAC) discount rate (end of period).f In per cent of exports of goods and non-factor services.
g (-) = depreciation.
Source : Information provided by the Cameroonian authorities; IMF (1999a), Public Information Notice (PIN) No. 99/35;
and IMF (2000a),  Public Information Notice (PIN) No. 00/42.
6. Cameroon's debt situation remained heavy during the period under review but its prospects
have improved.  Its large external debt started to  accumulate during the commodity boom in the first
half of the 1980s.  During the depression period ending in 1993/94, Cameroon's debt service became
unserviceable and arrears accumulated.  A secondary market for Cameroon's sovereign debt
(characterized by large discounts) was established.  In 1997, the authorities reached a rescheduling
agreement with the Paris Club.  The agreement was followed by similar arrangements with other
bilateral and commercial creditors.  In October 2000, the IDA of the World Bank Group and the IMFWT/TPR/S/87 Trade Policy Review
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agreed to support a comprehensive debt reduction package for Cameroon under the enhanced Heavily
Indebted Poor Countries (HIPC) Initiative.8 Under the Initiative, countries with a satisfactory track
record of macroeconomic and structural policy implementation and a net present value of external
debt exceeding 150% of exports are eligible to receive debt relief (Box I.1).9  Total debt relief from all
of Cameroon's creditors would be worth some US$2 billion (in nominal terms).  Linked to the HIPC
Initiative is the new three year-arrangement approved under the IMF Poverty Reduction and GrowthFacility (PRGF) amounting to some US$144 million.  The arrangement was approved in December
2000.
10
Box I.1:    HIPC  Initiative
The Heavily Indebted Poor Countries (HIPC) Initiative was designed by the IMF and the World Bank in
1996 to provide exceptional assistance to eligible countries following sound economic policies to help themreduce their external debt burden to sustainable levels.  In October 1999, the international community agreedto increase the number of eligible countries, raise the amount of debt relief each eligible country will receive,
and speed up the process.  At the same time, the links between debt relief, poverty reduction and social
policies were strengthened.
The criteria for eligibility are:
- eligibility for concessional assistance from the IMF and the World Bank;
- an unsustainable debt burden, beyond available debt-relief mechanisms such as Paris Club debt
rescheduling on Naples terms (where low-income countries can receive a reduction of eligibleexternal debt of 67% in net present value (NPV) terms); and
- a track record of reform and sound policies through IMF- and World Bank-supported
programmes.
The process is as follows:
-I n  t h e  first phase , the country must adopt adjustment and reform programmes supported by the
World Bank and the IMF and implement those programmes during three years.
- Decision point.   At the end of the first phase, a debt sustainability analysis is carried out.  The
country qualifies for assistance if the external debt ratio on top of the traditional debt reliefmechanisms is  above 150% for the NPV of debt to exports.  In the case of very open economies(with export-to-GDP ratios above 30%) with a high debt burden in relation to fiscal revenues,
despite strong revenue collection (equivalent to more than 15% of GDP), a NPV debt-to-export
target may be set below 150%.
-I n  t h e  second phase , the country implements a poverty reduction strategy, which has been
prepared with broad participation of civil soci ety, and an agreed set of measures aimed at
enhancing economic growth.  During this stage, the IMF and the World Bank grant interim relief,provided that the country stays on track with its programme.  Also, bilateral and commercial
creditors are expected to  grant debt relief on highly concessional terms.
- Completion point.  At the end of the second phase, the IMF and the World Bank provide the
remainder of the committed debt relief, while Paris Club creditors enter into a highly concessionalstock-of-debt operation with the country involved.  Other multilateral and bilateral creditors need
to contribute to the debt relief on comparable terms.
By the end of December 2000, 22 countries had been identified as eligible under the enhanced HIPC
Initiative; the great majority (18) were African countries.  The package amounted to some US$ 34 billion in
debt service relief over time.
Source : IMF (2000d), Debt Initiative for Heavily Indebted Poor Countries (HIPCs);  IMF (2000b), Press Release
No. 00/56 ;  and the HIPC website of the World Bank (http://www.worlbank.org/hipc/) [26 January 2001].
                                                     
8 IMF (2000b).
9 Net present value of debt is defined as the sum of all future debt-service obligations (i.e. interest and
principal) on existing debt, discounted, under the enhanced HIPC Initiative, at the market interest rate.
10 IMF (2000c).Cameroon WT/TPR/S/87
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The fiscal stance
7. Overall, progress has been achieved towards fiscal adjustment during the period under review
(Chart I.1).  A deviation from the trend was re corded in 1997/98-98/99, when the central government
deficit (excluding grants) deteriorated from 1.7% of GDP to 3.4% of GDP in parallel with a
slowdown in the economy.  However, in the follow ing year the central government budget (excluding
grants) was estimated to have been close to zero while the primary surplus (net of interest obligationsas well as foreign-financed investment, restructuring expenditure and privatization proceeds) to have
improved to 7.1% of GDP. The fiscal situation improved in 1999/00 as a result of a jump in oil
revenue as well as privatization proceeds.
-12-10-8-6-4-202468Privatization 
proceeds
93/94 95/96 97/98 99/00 94/95 96/97 98/990102030405060708090100
93/94 95/96 97/98 99/00 94/95 96/97 98/99Chart I.1
Fiscal adjustment, 1993/94 - 1999/2000
Per cent of GDP Per cent of Central Government revenue and grants
a
b
Source:Excluding foreign-financed investment, privatization proceeds and restructuring expenditure.
Commitment basis.
Cameroonian authorities; and IMF (2000e ), IMF Staff Country Report  No. 00/81.Primary budget balance a
Central Government 
balance , excl. grants b 
Oil sector revenue
Non-oil sector revenueTrade taxes
8. The focus of fiscal policy in recent years has been to raise the relatively low ratio of non-oil
revenue to GDP by widening the tax base and reducing exemptions.  Measures have also been taken
to improve customs and tax administration efficiency.11  The result has been encouraging with a
strong performance in non-oil revenue.  Non-oil revenue to GDP increased by 0.7 percentage points to
13% between 1997/98 and 1998/99, and was estimated to have increased by a further 0.5 percentage
points in 1999/00 (Table I.2).  Other important fisc al-related reforms include the reduction in the
implicit anti-trade bias in the tax system through a successive phasing out of the non-forestry export
tax from 13.5% in July 1997 to 0% two years later, and an increase in the weight of domestic taxes.
In addition, the reliance on trade taxes as a revenue source decreased, from 17% of total revenue in
1996/97 to 16.5% in 1998/99.  Also part of the fiscal reform programme was the replacement of the
                                                     
11 Government of Cameroon (2000b).WT/TPR/S/87 Trade Policy Review
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turnover tax by a value-added tax (VAT) in January 1999, accompanied by the elimination of
differential taxes under the old sales-tax system.12
9. Financing of the fiscal deficits has, to a large extent, been through borrowing from abroad and
the local market.  As a result of its membership in the African Financial Community (CFA) zone,
deficit financing through seigniorage is limited for Cameroon. Borrowing in the foreign markets
includes project financing through official creditors and international private capital markets, as wellas support from official creditors and multilateral institutions.  Domestic borrowing includes bank
financing and the change in payments arrears.
Monetary policies and exchange rate arrangements
10. Cameroon's monetary policy continues to be administered by the regional central bank,
Banque des Etats de l'Afrique Centrale (BEA C).  During 1997/98-98/99, monetary developments
were dominated by a rapid recovery in private sector credit, reflecting strong economic growth and
investments.  As deposit growth has not kept pace with credit growth, some banks have had to finance
expanded lending activity by drawing on BE AC and reducing their net foreign assets.
13  Another
factor influencing the growth of credit was the reduction in interest rates.  BEAC eased monetary
policy by lowering its discount rate in several phases, a policy it continued to follow in 1999/00.14
11. As noted above, Cameroon is a member of the CFA franc zone, a monetary union with a fixed
exchange rate system.  The zone consists of two groups of West and Central African countries, which
have, since 1948, maintained a common currency pegged to the French franc (the euro since January
1999).  An important feature of the CFA franc zone is the guarantee of convertibility by France,
through the establishment by each regional central bank of an operations account with the French
Treasury. 15  It provides for free capital mobility betwee n the two regions and France.  Also, there is a
pooling of foreign exchange reserves of each regional monetary area.  After more than 40 years ofstability, the CFA franc was devalued in January 1994, by 50%.
16
12. The Central African states of the CFA franc monetary union have undertaken steps to become
a common market.  To this end, Cameroon signed the Treaty of the Central African Economic and
Monetary Union (CEMAC), in March 1994, comprising two conventions on the Central African
Economic Union (UEAC) and the Central African Mone tary Union (UMAC).  In this context, efforts
are under way to prepare the ground for free movement of goods, services, capital, and persons.
Steps to coordinate macroeconomic policies have also been taken.  In September 2000, the CEMAC
adopted a regional policy package to promote macroeconomic policy convergence, fiscal discipline,and economic cooperation.
17
                                                     
12 IMF (1999a).
13 IMF (1999a).
14 EIU (2000a).
15 All signatories are obliged to hold a minimum of 65% of their foreign reserves in an account that is
supervised and managed by the French Treasury.  This is the principal means by which France guarantees theconvertibility.  France was authorized by the Europ ean Community to continue beyond December 1998 to
guarantee the convertibility of the CFA franc (Council Decision 1998/683/EC).
16 In parallel with the French currency reform of 1968, the CFA franc rate remained unchanged relative
to the old franc, but rose to CFAF 50 against the new French franc (Hadjimichael and Galy, 1997).
17 See WTO (2001) for details.Cameroon WT/TPR/S/87
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(3) TRADE AND FOREIGN INVESTMENT PERFORMANCE
(i) Trade patterns
Geographic pattern of merchandise trade
13.  The geographic pattern of Cameroon's trade has remained more or less the same during the
period under review (Tables I.3 and I.4).  The Eu ropean Union (EU) continues to be the dominant
market for Cameroon's exports (66% of merchandise exports in 1999/00) and principal source ofimports (50%).  France is Cameroon's single largest source of imports, accounting for about one-
quarter of total merchandise imports.  On the export side, France has been surpassed by Italy as
Cameroon's largest single export destination during the period under review.  The long-standing trade
preferences extended by the EU to Cameroon's exports have contributed to the heavy concentration on
the EU as a trading partner.  Non-reciprocal trad e preferences are extended by the EU to Cameroonian
products under the Partnership Agreement (successor to the Fourth Lomé Convention) as well as the
Generalized System of Preferences (GSP) (Chapter II(3)).
Table I.3
Exports by destination, 1994 -2000(CFAF billion and per cent)
1994/95 1995/96 1996/97 1997/98 1998/99 1999/2000
Total exports (CFAF billion)
  - Balance-of-payments data 858 806 983 1,084 994 ..
  - Direction-of-trade statistics and national accounts  data 805 804 982 1,084 940 1,092
(Per cent of total)
Advanced economies 82.3 83.9 84.1 81.5 76.8 ..
European Union 73.3 79.2 76.7 75.6 71.5 65.8
   Italy 14.1 17.6 25.4 24.8 22.4 25.1
   France 25.5 24.8 16.1 16.0 16.9 15.8
   Spain 14.5 18.1 20.4 15.3 12.6 9.1
   Netherlands 11.5 10.7 7.1 9.2 9.4 7.5
   Portugal 1.7 1.7 1.3 3.0 3.3 1.8
   United Kingdom 1.4 1.7 1.5 2.2 2.1 1.8
   Germany 2.2 2.2 2.1 1.8 1.9 1.8
United States 2.3 0.7 2.2 0.9 1.2 3.1
Korea, Rep. of 3.5 0.6 2.1 0.6 1.3 1.6
Developing countries 10.3 13.9 14.4 16.5 14.0 ..
Chad 0.5 0.5 0.3 1.1 2.1 3.9
China 0.9 2.1 2.7 2.8 2.0 1.0
Gabon 1.2 2.0 1.6 2.9 1.8 ..
Other 1.3 2.0 1.0 2.0 2.7 ..
Unclassifieda6.2 0.2 0.4 0.0 6.5 ..
.. Not available.
a Difference between the data reported in the balance-of-payments and the direction-of-trade statistics.
Note: Fiscal year begins on 1 July.
Source : WTO Secretariat, based on information provided by the Cameroonian authorities;  and IMF (2000e), IMF Staff
Country Report No. 00/81 .
14. Developing countries as a group accounted for only 14% of Cameroon's total exports in
1998/99, with Chad being the largest single developing country.  On the import side, the share ofdeveloping countries is somewhat higher (23% in 1989/99).  Nigeria is the largest single developing
country source for Cameroon's imports; it supplies mainly petroleum and petroleum products.WT/TPR/S/87 Trade Policy Review
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Table I.4
Imports by origin, 1994-2000
(CFAF billion and per cent)
1994/95 1995/96 1996/97 1997/98 1998/99 1999/2000
Total imports (CFAF billion)
  -  Balance-of-payments data 557 602 729 875 882 ..
  - Direction-of-trade statistics and national accounts data 450 557 704 875 816 906
(Per cent of total)
Advanced economies 50.4 51.5 48.3 50.2 49.8 50.5
European Union 50.4 51.5 48.3 50.2 49.8 50.5
   France 28.7 27.1 24.3 25.8 25.6 25.7
   Belgium-Luxembourg 4.1 4.8 4.7 4.5 4.8 5.2
   Germany 5.9 7.0 6.4 6.6 6.5 4.7
   Italy 2.9 3.7 3.7 3.9 4.3 3.6
   Netherlands 3.1 2.7 2.7 2.6 2.6 2.9
   United Kingdom 2.7 2.7 2.9 2.7 2.6 2.4
   Spain 1.3 1.7 1.8 1.8 1.6 1.2
Japan 4.1 5.3 4.7 5.7 5.0 5.5
United States 6.6 6.8 8.2 9.0 5.7 4.4
Canada 1.4 1.3 0.5 1.0 1.7 1.6
Developing countries 14.0 23.3 28.5 26.6 22.7 ..
Nigeria 0.2 6.8 8.2 7.8 7.4 15.6
Guinea 2.7 2.7 2.7 3.0 2.2 2.5
China 0.7 1.2 1.4 1.8 2.0 3.1
Other 3.9 2.3 4.4 6.1 5.9 ..
Unclassifieda19.0 7.5 3.4 0.0 7.5 ..
.. Not available.
a Difference between the data reported in the balance-of-payments and the direction-of-trade statistics.
Note: Fiscal year begins in July.
Source : WTO Secretariat based on information provided by the Cameroonian authorities;  and IMF (2000e), IMF Staff
Country Report No. 00/81 .
Commodity pattern of merchandise trade
15. Petroleum and petroleum products accounte d for some 44% of Cameroon's merchandise
exports in 1990/00 (Table I.5).  Other important export items include cocoa (notably beans), coffee,
and aluminium.
Table I.5
Principal exports by group of products, 1993-2000
(CFAF billion and per cent)
1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/2000
Total exports (CFAF billion) 623 858 804 982 1,084 940 1,092
(Per cent of total)
Petroleum and petroleum products 42 35 36 42 36 29 44
Cocoa beans and products 12 10 10 9 11 12 8
    -  c o c o a  b e a n s 1 0897996
C o f f e e  ( a r a b i c a  a n d  r o b u s t a ) 1 3 1 097667
A l u m i n i u m 7775556
Lumber 14 16 9 11 16 13 5
R a w  c o t t o n 6657554
Othera61 52 41 91 82 12 6
a Includes estimates for  unrecorded exports.
Note: Fiscal year begins on 1 July.
Source : WTO Secretariat, based on information provided by the Cameroonian authorities;  and IMF (2000e), IMF Staff
Country Report No. 00/81 .Cameroon WT/TPR/S/87
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16. Data on Cameroon's imports do not provide a comprehensive picture.  According to the IMF,
imports by private and public enterprises accounted for some 17% of total merchandise imports in
1999/00 (Table I.6).18  However, this category is not available by group of products.  "Non-enterprise"
imports are dominated by equipment (industrial and transportation).  Imports of equipment increased
steadily along with the economic recovery, from 13% of total merchandise imports in 1993/94 to 27%
in 1997/98.  Thereafter they again dropped somewh at along with a slowdown in economic activity.
Table I.6
Imports by group of products, 1993-2000(CFAF billion and per cent)
1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 1999/2000
Total imports (CFAF billion)
- Balance-of-payments data 442 557 602 729 875 882 ..
- Customs Department data 312 438 565 708 875 832 906
(Per cent of total)
Enterprise consumptiona17 18 21 18 17 17 17
Industrial and transportation equipment 13 18 20 24 27 23 22
   -  transportation equipment 6 8 8 11 13 10 10
Semi-finished goods 12 15 17 16 16 16 16
Mineral and other raw materials 6 1 10 15 12 11 17
Food, drink, and tobacco 11 11 9 9 11 11 12
Household consumptionb91 01 11 01 01 01 0
Animal and vegetable raw materials 2 4 3 3 4 5 5
Energy and lubricants 1 1 1 2 1 1 2
Unrecorded trade 29 21 6 3 0 6 ..
.. Not available.
a Public and private enterprise consumption covers final goods for consumption or goods used in the production process.
b Household consumption covers final goods.
Note: Fiscal year begins on 1 July.
Source : WTO Secretariat, based on information provided by the Cameroonian authorities;  and IMF (2000e), IMF Staff
Country Report No. 00/81, Washington D.C., July.
17. Data from UNSD, Comtrade, which is available up to 1996, show that manufactured products
dominate Cameroon's imports (Table AI.2).19  However, these imports, which accounted for about
three quarters of total merchandise imports during the past two decades, dropped in 1996 to some
67% of the total.  The decrease reflected lower imports in value terms of a wide range of items.  In
addition, the sharp increase in value terms of fuels (mainly crude petroleum) recorded in 1996, also
brought down the relative size of manufacturing imports.  In 1996, fuels amounted to 16% of imports,
up from a mere 2% in the previous year.  In 1996, agricultural products accounted for 16% ofmerchandise imports.
(ii) Investment performance
18. Foreign investment plays an important role in the Cameroonian economy.  It has assisted
Cameroon in financing pressing investment needs, and, at the same time, has introduced modern
technology and management techniques.  Foreign investment (net) reached its peak in 1996/97, buthas since tapered off somewhat.  Nevertheless, in 1999/00, foreign investment (direct and portfolio)
amounted to US$180 million or 2.2% of GDP (Table I.7).  During the period under review, foreign
                                                     
18 IMF (2000e).
19 UNSD, Comtrade database provides import data on a calendar year.WT/TPR/S/87 Trade Policy Review
Page 10
investment has fully financed or financed a substantial part of Cameroon's external current account
deficits.
Table I.7
Foreign investment, 1994-2000
(US$ million and per cent)
1994/95 1995/96 1996/97 1997/98 1998/99 1999/2000
Total foreign investment, net (US$ million) 226 246 274 253 214 180
    - foreign direct investment, net 101 120 126 140 142 109
    - portfolio investment, net 125 146 148 113 72 71
Foreign investment, net/GDP (per cent) 2.8 2.7 3.0 2.9 2.3 2.2
Foreign investment, net/current account deficita (per cent) 364 66 107 108 54 74
a Including grants.
Note: Fiscal year begins on 1 July.
Source : WTO Secretariat, based on information provided by the Cameroonian authorities;  and IMF (2000a),  Public
Information Notice (PIN) No. 00/42 .
19. Disaggregated data on foreign investment are not available by country of origin or by activity.
However, it has been reported that French companies are the major investors in Cameroon.20   Other
major investors include companies from Belgium, Italy, and South-East Asia.
(4) STRUCTURAL REFORMS – PAST AND FUTURE
20. Several important structural issues have been tackled by the authorities during the period
under review.  In the financial sector, reforms include the restructuring of the banking sub sector in
1996-99 and the elimination, in 1997, of the legal requirement that at least one third of commercial
bank capital be held by nationals.  The privatization process is also well under way for the main
utilities - telecommunications, electricity and water - as well as for banking (including theprivatization of a restructured bank in January 2000).  In the transport sector, maritime transport was
liberalized in 1998 through the elimination of cargo sharing rules and national preferences; and
measures have been taken to improve the competitiveness of ports such as the Single Window Facility
at Douala.  Concessions for the national railway ac tivities were granted to the private sector in 1999,
and a number of reforms have been undertaken since 1998 to improve the management of the nationalroad network.  The national oil refinery's monopoly on the supply of refined petroleum products was
eliminated in 1998 through the liberalization of competing imports.  Other reforms pertinent to the
energy sector include the liberalization of distribution margins in the price formula for refined
petroleum products in 1999.  In forestry, the criteria for the adjudication of concessions and cutting
rights was revised in 1999, and a reform of the incentives and tax system has begun (1997-98).  Asnoted above, important public-finance-related reforms have also been implemented.
21. Notwithstanding these achievements, some crucial challenges remain, including attacking
poverty, reforms of education and health sectors, and addressing governance issues (Box I.2).  In
addition, the development of the infrastructure needs to be tackled.
                                                     
20 Strategis (1998).Cameroon WT/TPR/S/87
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Box I.2:    Poverty in Cameroon
The most recent household-consumption survey in Cameroon, which was conducted in 1996, showed that:
- some 51% of the population were unable to meet a minimum consumption basket (poverty line),
and 23% were unable to meet even the food component of this basket (extreme poverty line).  Thedefinition of poverty used by the authorities was CFAF 148,000 (about US$290), withadjustments for regional price differences;
- poverty was predominately a rural phenomenon with 86% of the poor living in rural areas and
61% of rural residents being poor;
- different measures for living standards showed a marked disadvantage for women;
- the gross school enrolment ratio for children aged 6-14 years was 73.2% in 1996 and 80.7% in
1998, with rates averaging some 7 percentage points lower among girls than among boys.Enrolment rates differed among regions with rates above 90% in urban areas;
- the population per hospital bed varied, ranging from 287 in the west to 1,465 in the north;
- on average, some 44% of households had access to safe drinking water.  In the main cities, seven
households in ten had access to potable water, compared with only two in the rural areas; and
- the growth in labour demand had not kept pace with the rapid growth in labour supply.
Source : IDA and IMF (2000), Cameroon – Preliminary Document on the Enhanced Initiative for Heavily Indebted
Poor Countries.
Pillars of the poverty reduction and growth strategy
22. To respond to these challenges, the authorities have prepared an interim Poverty Reduction
Strategy Paper (PRSP), which is to be implemented within the framework of the HIPC Initiative
(Box I.1).21  The strategy has been prepared on the basis of lessons learned from the participatory
consultations conducted throughout Cameroon.  The PRSP consists of a programme of reformmeasures designed to: (i) promote sustainable and vigorous growth, (ii) introduce sectoral and
targeted poverty reduction policies, and (iii) strengthen good governance in order to maximize the
potential impact of growth on poverty.  During the initial phase of participatory consultations, the
following areas were singled out as the most effective areas of action in the fight against poverty:
(a) strengthen the delivery of essential social services in the areas of education and health, (b) improveaccess to potable water, and (c) rehabilitate road infrastructure.
23. It has also been recognized that the success of the poverty reduction programme will depend
on the efforts to promote good governance and combat corruption. Towards this end, the authoritiesare developing a comprehensive strategy to improve governance and reduce corruption.  The
cornerstone of this strategy is the National Governance Programme, which was developed by the
authorities with assistance from the UNDP.  In the context of the programme, the authorities will
focus on strengthening transparency and accountability and on improving the supply of basic social
services (Chapter II(1)(iv)).
(5) O
UTLOOK
24. The Cameroonian authorities have formulated a comprehensive and ambitious reform agenda.
Several steps have already been taken in this direction.  Its implementation will require strong and
concerted efforts, in particular in the areas of governance and corruption, involving some hard
political decisions.  Over the medium-term, the ex ternal environment will continue to be another
important factor influencing Cameroon's economic growth prospects: an unfavourable external
environment, such as falling prices of its key e xport products, would inhibit the prospects for growth
and poverty alleviation.
                                                     
21 Details of the programme can be found in Government of Cameroon (2000c).