Cameroon WT/TPR/S/187 
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I. ECONOMIC ENVIRONMENT 
(1) MAIN FEATURES OF THE ECONOMY  
1. The Republic of Cameroon covers an area of 475,442 km2 and in 2005 its population was 
estimated to be 17.2 million (Table I.1), making it a medium-sized country in African terms.  
Nevertheless, its geographical positi on and its level of development give it much greater economic 
and political weight.  It has common borders with  Equatorial Guinea, Gabon, the Republic of the 
Congo, the Central African Republic, Chad and Nige ria.  Apart from Nigeria, all these countries, 
together with Cameroon, belong to the Cent ral African Economic and Monetary Community 
(CEMAC) and the Economic Community of Central African States (ECCAS) (Chapter II(3)(ii)). 
Table I.1  
Cameroon in figures, 1995-2006  
  1995 2000 2001 2002 2003 2004 2005 2006a 
Population (millions) 13.09 15.3 15.7 16.2 16.5 16.8 17.2 17.6 
Total GDP (CFAF billions, at current prices) 4, 529.3 6,612.4 7, 061.4 7,583.1 7, 917.0 7,334.0 8, 781.0 9,687.0 
Per capita GDP (US$) 693.2 607.4 612.4 673.3 825.8 824.4 968.4 1,052.6 
Share of GDP at current prices (percentage) 
Agriculture 22.0 20.5 20.4 20.4 20.1 19.0 19.0 .. 
Food crops 13.7 13.3 13.6 13.9 13.4 12.4 12.9 .. 
Cash crops 2.2 2.0 1.9 1.8 1.8 1.7 1.5 .. 
Livestock and hunting 2.4 2.4 2.5 2.4 2.5 2.2 2.2 .. 
Fishing and fish farming 1.2 1.1 1.2 1.2 1.2 1.1 1.3 .. 
Forestry and logging 2.5 1.7 1.2 1.1 1.2 1.6 1.1 .. 
Mining and quarrying 5.3 10.8 7.4 7.2 6.3 6.7 8.3 .. 
Extraction of hydrocarbons 5.2 10.6 7.3 7.1 6.1 6.5 8.1 .. 
Manufacturing 20.1 19.3 19.3 19.1 18.8 17.9 17.5 .. 
Agri-food industries 7.2 7.1 7.0 7.0 7.0 6.4 5.5 .. 
Other manufacturing 13.0 12.2 12.3 12.1 11.7 11.5 11.9 .. 
Services 45.6 42.1 45.0 45.7 47.4 49.4 47.7 .. 
Production and distribution of electricity , gas 0.9 0.8 0.6 0.6 0.6 0.9 0.9 .. 
Construction and public works 2.7 2.5 2.7 2.7 2.7 3.0 3.1 .. 
Restaurants and hotels 18.9 16.5 19.0 19.2 19.9 21.6 20.6 .. 
Transport, storage and communication 4.9 5.5 5.9 6.0 6.4 6.0 5.5 .. 
Banks and financial institutions 1.8 1.2 1.2 1.2 1.3 1.3 1.2 .. 
Other tradable services 9.5 7.5 8.5 8.3 8.6 8.7 8.9 .. 
Financial intermediation services measured 
indirectly -0.7 -0.7 -0.7 -0.7 -0.7 -0.7 -0.7 .. 
Non-tradable services 7.5 8.7 7.9 8.4 8.5 8.7 8.3 .. 
Taxes 7.0 7.5 7.8 7.6 7.4 7.1 7.5 .. 
Share of total labour force (percentage) 
Agriculture 61.1 63.1 62.6 62.7 63.0 62.9 61.0 .. 
Food crops 41.0 40.1 39.9 39.4 39.3 38.6 38.6 .. 
Cash crops 17.6 17.9 18.4 19.9 20.2 21.0 18.7 .. 
Livestock and hunting 1.2 1.1 1.0 0.9 0.9 0.9 0.9 .. 
Fishing and fish farming 0.5 3.0 2.3 1.5 1.4 1.2 1.8 .. 
Forestry and logging 0.8 1.0 1.0 1.0 1.2 1.2 1.0 .. 
Mining and quarrying 0.0 0.1 0.1 0.1 0.1 0.1 0.1 .. 
Extraction of hydrocarbons 0.0 0.0 0.0 0.0 0.0 0.0 0.0 .. 
Manufacturing 9.2 9.5 9.6 9.4 9.1 8.9 9.2 .. 
Agri-food industries 4.7 5.2 5.4 5.5 5.2 5.2 5.0 .. 
Other manufacturing 4.5 4.2 4.2 3.9 3.9 3.7 4.2 .. 
Services 29.8 27.3 27.7 27.9 27.8 28.5 29.4 .. 
Production and distribution of electricity , gas 0.2 0.1 0.1 0.1 0.1 0.1 0.1 .. 
Construction 2.1 2.8 2.8 2.2 2.2 1.9 2.6 .. 
Table I.1 (cont'd) WT/TPR/S/187 Trade Policy Review 
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  1995 2000 2001 2002 2003 2004 2005 2006a 
Restaurants and hotels 6.7 10.6 10.6 10.3 10.3 10.2 11.3 .. 
Transport, storage and communication 1.1 2.3 2.8 2.5 2.5 2.4 2.5 .. 
Other tradable services 0.9 1.0 0.9 0.8 0.8 0.8 0.9 .. 
Non-tradable services  18.8 10.5 10.6 11.9 11.9 13.1 12.0 .. 
.. Not available. 
a Forecast.  
Source : WTO Secretariat estimates, based on data pr ovided by the Cameroonian authorities and the 
IMF (2005).  Cameroon:  Statistical Appendix,  Country Report No. 05/165, May. 
2. Since the previous review of its trade policy in 2001, Cameroon has become a middle-income 
country with a per capita gross domestic product ( GDP) estimated at US$1,077 in 2006 (compared to 
US$621.5 in 2001).  According to the UNDP, Camer oon was ranked 144th (out of 177 countries) in 
the 2004 Human Development Index1, joining for the first time the group of countries in the medium 
human development index (HDI) category.  Life e xpectancy in 2004 was 45.7 years and 67.9 per cent 
of the adult population was literate. 
3. Cameroon's economy has a number of assets, in cluding favourable conditions for agriculture, 
forestry resources, and petroleum.  Agriculture (including subsistence crops, livestock, hunting, 
fishing and forestry) plays an important role;  it employs just over 60 per cent of the labour force and 
accounts for some 20 per cent of GDP.  About 48 per cent of GDP comes from services, particularly trade and tradable services, and about 18 per cen t from manufacturing.  The principal exports are 
crude oil, timber, cocoa, coffee, cotton and ba nanas (Chart I.1).  Mining's contribution to 
GDP formation is only around 8 per cent. 
4. There is still a large informal sector in Ca meroon;  according to estimates, its share of 
GDP was some 50 per cent in 2005.  Formal empl oyment is divided equally between the public and 
private sectors.
2  The average rate of unemployment is estimated at 9.3 per cent and the 
underemployment rate at 68.8 per cent.3 
5. Cameroon belongs to the Central African Mone tary Union (UMAC) (Chapter II(3)(ii)(c)).  
UMAC Members have common monetary and exchange  policies administered by the Bank of Central 
African States (BEAC).  The currency unit, the CFA franc (Franc of Financia l Cooperation in Central 
Africa), is pegged to the euro at a fixed exchange rate:  CFAF 1,000 = €1.524. 
                                                      
1 UNDP (2006). 
2 French Development Agency (AFD) (2006). 
3 Ministry of Planning, Development Programming and Regional Development (2006a). Cameroon WT/TPR/S/187 
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0%10%20%30%40%50%60%70%80%90%100%
1995 2000 2001 2002 2003 2004 2005
0%20%40%60%80%100%
1995 2000 2001 2002 2003 2004 2005Chart I.1
Structure of trade in goods, 1995-2005
(a) Exports (f.o.b.)
(b) Imports (c.i.f.)
Source : WTO Secretariat calculations based on data from the Comtrade database, UNSD (SITC, Rev.3).Cotton Crude petroleum oilsTimber, other than conifers Cocoa
Other mining industries Bananas Other agricultural products
Manufactures Aluminium, unprocessed Coffee
Others
Rice Other mining industries Non-electrical machinery
Chemicals Other agricultural products Transport equipment
Other semi-finished products Crude petroleum oils OthersIron and steel Other wheat and meslin Electrical machineryPetroleum products, refined
 WT/TPR/S/187 Trade Policy Review 
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6. Cameroon accepted Article VIII of the IMF' s Articles of Agreement on 1 June 1996.4  The 
main exchange restriction implemented at the CEMA C level concerns the outflow of capital to third 
countries, which is subject to administrative control by the Ministry of Finance and the BEAC.5  
Export-related transactions must be reported to the Ministry of Finance and those in excess of 
CFAF 5 million must be domiciled with a CEMA C-approved bank.  Export earnings must be 
repatriated within 30 days following completion of the transaction and surrendered to the BEAC.  
Special exchange regimes apply to petroleum opera tions and to the mining sector (Chapter IV(3)). 
(2) RECENT ECONOMIC DEVELOPMENTS  
7. From 2001 to 2006, Cameroon's economy experienced  sustained growth, with a real average 
annual growth rate of 3.6 per cent in GDP (Table I.2).  This was higher than the population growth 
rate (around 1.9 per cent), thus providing the means to  alleviate poverty.  The year of lowest growth 
was 2005 (2.2 per cent compared to 3.7 per cent in 2004) as a result of the decline in oil output and 
internal economic stagnation since domestic demand was stifled by  budgetary measures intended to 
bring Cameroon to the completion point of the Heav ily Indebted Poor Countries Initiative (HIPC) in 
2006.  The 3.9 per cent increase in real GDP in 2006 was partly the result of the large internal debt 
payments made by the Government and also the meas ures taken to combat inflation.  The increase in 
oil output when new wells came on stream and the sh arp rise in global oil prices, together with the 
expansion of manufacturing, telecommunications and construction, were further contributing factors. 
Table I.2  
Main economic and financial indicators. 1999/2001 and 2001-2006  
  1999/00 2000/01 2001 2002 2003 2004 2005a 2006b 
National accounts Annual variation as a percentage 
Real GDP 4.1 4.2 4.5 4.0 4.0 3.7 2.2 3.9 
         
Gross domestic demand 95.7 96.4 101.3 100.8 99.7 100.4  101.0 98.8 
   Consumption 80.8 79.7 81.0 81.0 82.2 81.5  81.7 77.9 
     Private 71.3 70.2 70.8 70.8 72.2 71.4  71.7 68.5 
     Public 9.5 9.5 10.2 10.2 10.0 10.2  9.9 9.3 
   Gross investment 14.7 16.0 20.3 19.8 18.1 18.3  17.6 20.9 
     Private 12.3 13.9 18.1 17.5 15.8 15.7  14.9 16.0 
     Public 2.4 2.1 2.2 2.3 2.3 2.6  2.7 4.9 
   Change in inventories 0.2 0.7 0.1 0.0  -0.6 0.7  1.7 0.0 
Export of goods and non-factor services, f.o.b 21.5 23.3 21.9 19.9 20.2 19.4  20.4 22.2 
Import of goods and non-factor services, f.o.b. 17.2 19.7 23.2 20.7 19.9 19.8  21.4 21.0 
Investment 14.9 16.7 203.0 19.8 17.5 18.9 19.4 20.9 
External savings 24.3 24.8 24.1 25.0 22.4 21.0 23.4 27.6 
Domestic savings 21.8 21.2 20.9 22.3 18.5 17.7 21.1 25.4 
Table I.2 (cont'd) 
                                                      
4 IMF (2006a). 
5 According to the provisions of Regulation No. 02/00/CEMAC/UMAC/CM, payments relating to 
international transactions can be made freely, as can those concerning capital movements, with a few exceptions that are subject to administ rative control (certain borrowing, certain loans, certain transactions in foreign 
securities exceeding CFAF 10 million).  The import and export of gold and precious stones are subject to special 
regulations:  such transactions are unrestricted within  the CEMAC, but outside the CEMAC they are subject to 
authorization by the competent authorities. Cameroon WT/TPR/S/187 
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  1999/00 2000/01 2001 2002 2003 2004 2005a 2006b 
Money and credit (end of period) Annual variation as a percentage 
Money supply (M2) 18.9 13.7 12.9 17.6 1.0 6.4 5.2 8.4 
Prices and interest rates Percentage 
Inflation (variation in consumer prices, annual 
average, December) 1.2 4.5 4.5 2.8 0.6 0.3 1.8 5.1 
Exchange rate         
CFAF franc/US dollar (annual average) 615.7 712.0 733.0 697.0 581.2 528.3 527.5 522.9 
Real effective exchange rate (%)a -3.8 3.1 3.1 3.4 2.5 0.2 -2.2 .. 
Public finances Percentage of GDP unless otherwise indicated 
Total revenue 17.3 18.8 17.7 17.7 17.1 15.8 18.1 19.2 
   Oil revenue 5.1 6.3 4.8 4.9 4.1 4.2 5.2 6.6 
   Non-oil revenue 12.2 12.5 12.9 12.8 13.0 11.6 13.0 12.6 
Total expenditure 13.9 16.0 16.7 14.4 13.7 13.7 13.3 16.3 
   Current expenditure 11.6 12.7 13.4 12.4 11.7 11.5 11.4 12.0 
   Capital expenditure 2.3 3.3 3.3 2.0 2.1 2.2 2.0 4.3 
Primary fiscal balance (deficit (-)) 6.2 7.4 5.3 6.2 6.3 4.7 6.6 5.2 
Basic fiscal balance (deficit (-)) 4.0 4.2 2.4 3.7 3.9 2.8 5.1 3.8 
Fiscal balance, commitments basis, excluding 
grants (deficit (-)) 3.4 2.8 1.0 3.3 3.4 2.1 4.8 2.8 
Fiscal balance, commitments basis, including 
grants (deficit (-)) 3.4 3.5 1.8 3.6 3.9 2.2 4.9 3.2 
External sector         
Current account balance (including official 
grants, deficit (-)) 3.2 -0.5 -6.6 -6.5 -7.0 -7.3 -4.0 -1.6 
Current account balance (excluding official 
grants, deficit (-)) 2.2 -1.8 -8.0 -7.7 -7.7 -7.6 -4.3 -2.0 
Outstanding debt/GDP 80.8 71.8 68.9 54.2 48.7 45.2 39.8 34.9 
Debt servicing/income ratio  22.1 36.7 39.0 34.0 36.0 33.0 24.2 20.3 
Debt servicing/export of  goods and non-factor 
services ratio 14.7 26.3 30.4 28.7 29.0 25.3 19.8 15.5 
External reserves (in months of imports  c.i.f.) 0.6 1.9 2.0 3.2 2.6 2.9 3.5 3.9 
         
Terms of trade (annual variation, percen tage) 79.3 33.2 0.0 5.6 -10.9 10.0 36.5 29.8 
.. Not available.  
a Estimate.  
b Forecast. 
Source : BEAC, information online.  Consulte d at:  http://www.beac.int/ index.html; and IMF, Country reports.  Consulted 
at:  http://www.imf.org. 
8. Since the previous review of Cameroon's trade policy, the trend in public finances has been 
generally positive.  Fiscal revenue gradually rose fro m 17.7 per cent of GDP in 2001 to 19.2 per cent 
in 2006 (forecast), except for the election year 2004 (15.8 per cent).  The year 2005 was devoted to 
overhauling public finances.  Fiscal revenue (excl uding grants) increased by 20.5 per cent, as a result 
of the rise in oil and non-oil revenue following th e upsurge in oil prices, the good performance of 
certain sectors (particularly services) and the steps ta ken by the Government to improve the collection 
of taxes.  Progress was also made in monitoring spending and the transparency of public finances following the introduction of an integrated budget management scheme in January 2005, as well as 
Cameroon's accession to the Extractive Industries Transp arency Initiative (EITI) and, for the first time 
in 2006, the draft budget was put before Par liament before the budget session opened.  The 2005 
finance law also expanded the tax base by ma king some new products subject to excise tax 
(Chapter III(2)(iii)(f). 
9. In 2000, Cameroon was declared eligible for th e Heavily Indebted Poor Countries Initiative, 
whose completion point was set at March 2003, but postponed until 2004.  Because of fiscal slippages WT/TPR/S/187 Trade Policy Review 
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in 2004, including a decline in non-oil revenue a nd expenditure overruns, as well as unpaid bills by 
the State to utilities and suppliers6, the completion point could not be reached.  In early 2005, in order 
to normalize its relations with donors, Came roon adopted an IMF-supported programme.  In 
October 2005, a new agreement was signed under the Poverty Reduction and Growth Facility (PRGF) 
framework for the period 2005-2008.  Its objectives include maintaining budgetary viability through 
fiscal policies and reforms, particularly by m obilizing non-oil revenue and increasing priority 
spending so as to achieve the priority economic a nd social targets of the Poverty Reduction Strategy 
Paper (PRSP).  The Government also undertook to  improve the business climate with a view to 
promoting the private sector's contri bution to investment and growth. 
10. Cameroon finally reached the completion point in April 2006 and this should allow it to 
reduce the net present value of its debt by 27 per cent.  According to the authorities, following the 
signature of the agreements to be concluded,  the completion point should give Cameroon roughly 
CFAF 2,544 billion, broken down as follows:  CFAF  1,924 billion from the Paris Club, including 
CFAF 510 billion under the HIPC Initiative and an  additional CFAF 1,414 billion under bilateral 
agreements;  CFAF 620 billion under the Mu ltilateral Debt Relief Initiative, including 
CFAF 117 billion from the IMF, CFAF 398 billion from the World Bank and CFAF 105 billion from 
the African Development Bank (ADB).  Other creditors  are also expected to write off slightly over 
CFAF 100 billion.7  According to the forecast for 2006, the stock of external debt should reach 
32.4 per cent of the GDP, a decrease compared to 2005 (36.7 per cent).  Servicing the external debt 
was estimated to absorb 6.7 per cent of total expor ts (of goods and services) in 2005, 3.6 per cent in 
2006 and 0.1 per cent in 2007 followi ng the application of debt relief. 
11. Cameroon's public finances still face a number of structural problems.  Income remains 
dependent on oil revenues (34.7 pe r cent of revenues excluding grants in 2006) (Table III.1), although 
the wells in operation are gradually being exhausted.  The tax base is still fairly narrow, particularly 
because of the size of the informal sector.  Current expenditure accounts for a large proportion of budget outlays (73.6 per cent in 2006), with staff costs alone absorbing over one quarter of total 
budgetary expenditure.  Budgetary  provision for capital expenditure only represents around one 
quarter of total spending (Table I.2) and is never fully utilized.  Likewise, in 2005, so-called 
"sovereign" spending amounted to 35 per cent of the total (25 per cent of it for defence), more than 
the budget for sectors such as education (29 per cent), health (5 per cent) and infrastructure (10 per 
cent).
8 
12. The monetary policy of the CEMAC member c ountries (including Cameroon) is formulated 
and implemented by the BEAC, whose statutes make monetary stability a priority;  this in practice 
means a low rate of inflation and an adequa te rate of external cover for the currency.9  For each of its 
members, the BEAC sets targets for net external ass ets, for growth in lending to the economy and for 
the money supply (M2).  Monetary planning is on an annual basis10, taking into account the overall 
financing needs of the economy in question and the appropriate means of meeting those needs, as 
determined by each National Credit Council and National Monetary and Finance Committee. 
                                                      
6 IMF (2006b). 
7 Republic of Cameroon, Prime Minister's Office, «Government's economic, financial, social and 
cultural programme for the fiscal year 2007, submitte d to the National Assembly on 20 November 2006».  
Consulted at:  http://www.spm.gov.cm.showDVS .php? module=readdisc&iddisc=150&lang=en. 
8 OECD (2006). 
9 BEAC (undated c).  The currency's  rate of external cover is defined by the rate of cover of demand 
liabilities by external assets;  its minimum threshold is set at 20 per cent. 
10 BEAC (undated d). Cameroon WT/TPR/S/187 
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13. The BEAC's monetary policy affects bank liquidity11, through refinancing and reserve 
requirements (currently, 10.25 per cent of demand deposits and 8.25 per cent of time deposits in 
Cameroon's case).12  Refinancing policy, through the money market, is the BEAC's principal method 
of intervention and occurs in two ways:  action on quantities (refinancing target set at CFAF 6 billion 
for Cameroon for the fourth quarter of 2006), and ac tion on interest rates.  The BEAC determines the 
bid interest rate (TIAO) (i.e. the official refina ncing rate for banks submitti ng bids) and this is the 
reference rate.13  The TIAO remained unchanged from  the end of 2002 until 2004 but between 
January 2005 and Marc h 2006 was progressively lowered fro m 6.0 per cent to 5.25 per cent.14  In 
addition, two bank rates are regulated by the BE AC – the minimum borrowing or deposit rate (for 
small savers, defined as those holding deposits of CFAF 5 million or less) and the maximum lending 
rate – 4.25 per cent and 15 per cent, respectively, si nce March 2006.  The issue of treasury bonds by 
BEAC member governments, originally envisaged for 2004, has been postponed. 
14. The BEAC's globally restrictive monetary policy has made it possible to control inflation.  
The resumption of growth in Cameroon in 2005 was, however, accompanied by a resurgence of 
inflationary pressures as a result of the return to  automatic adjustment of the price of petroleum 
products at the pump.  These inflationary pressures were exacerbated in 2006 and the final consumer 
price index for households reached its highest level during the period under review, with an inflation 
rate of 5.4 per cent (compared to 1.9 per cent in 2005) (Table I.2).15 
15. In order to ensure consistency between their national fiscal policies and the common 
monetary policy, the CEMAC member countries ha ve drawn up macroeconomic convergence criteria 
and indicators and have establis hed a multilateral monitoring system , under the responsibility of the 
CEMAC's Executive Secretariat.16  In 2006, Cameroon met all the CEMAC's first-tier economic 
convergence criteria, except for inflation.17 
(3) TRADE AND INVESTMENT PERFORMANCE  
(i) Trade in goods and services 
16. In Cameroon, the average annual ratio of exports  of goods to nominal GDP during the period 
2001-2006 was 17.2 per cent (19.3 per cent in 2006), and for imports it was 17.0 per cent (17.0 per 
cent in 2006).  In value terms, exports and impor ts of goods rose by around 100 and 70 per cent, 
respectively.  Over this period, with the excep tion of 2003, Cameroon benef ited from improved terms 
                                                      
11 BEAC (2003). 
12 BEAC, decision of the Governor No. 12/GR/2007, 13 March 2007. 
13 The BEAC also sets the interest rate for invest ment (TISP) by banks in connection with so-called 
"negative" tenders (i.e. withdrawal of liquidity from ci rculation);  the interest rate for repurchase operations 
(TIPP), equivalent to the TIAO plus 1.5 to 3 points;  and the bank penalty rate (TPB) for credit institutions 
(equivalent to twice the TIAO). 
14 BEAC (undated b). 
15 BEAC (undated a). 
16 Directive No. 01/00/UEAC/064-CM-04 on the establishment of multilateral monitoring of 
macroeconomic policies within CEMAC member States;  Decision No. 02/01-UEAC-090-CM-06 of 
3 August 2001 on participation by the Executive Secretariat in negotiations between member States and the Bretton Woods institutions;  Decision No. 01/00UEAC-064-CM-04 on setting the timetable for the introduction 
of multilateral monitoring of macroeconomic policies within CEMAC member States;  and 
Directive No. 01/01/UEAC-094-CM-06 of 3 August 2001 establishing criteria and macroeconomic indicators for multilateral monitoring. 
17 The following are the first-tier c onvergence criteria:  a basic fis cal balance/nominal GDP ratio of 
zero or more;  an annual inflation rate of less than 3 per cent;  a public debt ratio (internal and external) of 
70 per cent or less;  and non-accumulation by the State of internal or external arrear s in day-to-day operations. WT/TPR/S/187 Trade Policy Review 
Page 8 
 
 
of trade, resulting in particular from the sharp rise in global prices for petroleum, its main export.  
Nevertheless, with the exception of 2003, its ex ternal current account balance remained negative 
(Table I.3), despite a trade balance that generally  showed a surplus, becau se the balance in services 
continued to be negative, even though the deficit shrank somewhat in 2005. 
Table I.3 
Balance of payments, 2000-2005 
(US$ millions)  
 2000a 2001a 2002a 2003a 2004a 2005a 
A. Current account balance 118.5 - 505.7 -764.3 -958.5 -1. 147.5 -541.5 
Foreign trade balance 578.7 65.5 19.5 139.9 -66.8 213.7 
Exports, f.o.b., including: 2,028.0 1,929.4 1,877.5 2,293.4 2,552.6 3,104.3 
Crude oil  989.8 873.6 827.0 903.5 1 066.6 1 441.4 
Cocoa 125.8 145.0 236.3 243.6 250.4 287.0 
Coffee 95.9 73.7 53.2 69.5 72.3 91.0 
Cotton 81.9 101.8 95.6 109.4 139.3 134.2 
Bananas 46.9 46.2 46.1 71.1 70.8 78.1 
Natural rubber 18.8 19.9 23.0 32.3 39.2 46.3 
Timber 300.1 274.1 253.5 334.0 424.4 415.4 
Aluminium 98.2 97.4 80.5 95.3 138.4 162.5 
Imports, f.o.b. -1,449.3 -1,863.9 -1,858.0 -2,153.5 -2,619.4 -2,890.6 
Services balance -305.3 -426.4 -640.3 -785.3 -743.5 -557.2 
Freight and insurance -68.1 -102.2 -141.8 -326.7 -414.7 -430.4 
Travel and tourism -57.0 -50.3 -47.2 -25.1 -25.4 -24.1 
Other transport and other insurance -44.8 -51.2 -76.8 21.2 30.3 59.3 
Other private services -135.4 -222.8 -374.6 -454.6 -333.8 -162.1 
Income balance -279.2 -300.5 -298.0 -530.3 -519.8 -379.4 
Investment income, of which: -279.2 -300.5 -298.0 -530.3 -519.8 -379.4 
Interest on public external debt  -216.6 -253.1 -250.4 -296.5 -256.3 -210.6 
Interest on private external debt  -75.8 -61.5 -63.7 -300.4 -340.5 -249.9 
Current transfers balance 124.4 155.8 154.5 217.1 182.7 181.4 
Private 13.1 15.7 20.5 122.7 140.1 139.9 
Public 111.4 140.1 134.0 94.5 42.6 41.5 
B. Capital transfers, net 15.7 30.3 2.9 76.6 84.4 91.2 
Public 15.7 30.3 2.9 5.3 3.8 9.7 
Private 0.0 0.0 0.0 71.2 80.6 81.5 
C. Financial account, net -115.6 222.2 255.1 -14.1 569.2 141.2 
Direct investment, net 0.0 .. .. 383.0 319.3 224.7 
Petroleum sector  0.0 .. .. .. .. .. 
Portfolios, net 0.0 .. .. 0.5 0.8 0.8 
Other investment, net -115.6 222.2 255.1 -397.6 249.1 -84.2 
D. Errors and omissions -148.9 -51.8 320.7 273.6 120.6 151.5 
E. Overall balance  -130.2 -305.0 -185.7 -622.5 -373.3 -157.5 
F. Financing, including: 130.2 305.0 185.7 622.5 373.3 157.5 
Variations in official reserves -200.1 -114.3 -194.8 87.1 -164.9 -265.0 
Special financing 330.3 419.3 380.5 535.4 538.2 422.6 
Variations in external arrears (reduction - )  -0.7 0.0 -838.2 0.0 24.0 -24.1 
Debt relief and cancellation  331.0 419.3 1 218.7 535.4 514.1 446.7 
.. Not available. 
a Estimates. 
Source : BEAC, information online.  Consulte d at:  http://www.beac.int/index.html. Cameroon WT/TPR/S/187 
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17. Petroleum (crude and refined) is by far the mo st important export (49.6 per cent of exports in 
2005), followed by food products (17.1 per cent), par ticularly cocoa (8.6 per cent) (Chart I.1 and 
Table AI.1).  Imports, on the other hand, are much more diversified in prod uct terms (Chart I.1 and 
Table AI.1), even though fuel is also the leading import (26.3 per cent in 2005).  The main destination 
for Cameroon's exports is the European Union (par ticularly Spain, Italy and France), whereas the 
principal sources of imports are the European Unio n (mainly France), Nigeria and China (Chart I.2 
and Tables AI.4 and AI.5).  Trade with other CEMAC members remains marginal (around 3.4 per 
cent of trade).  These figures do not, however, take into account trade that is not recorded (for 
example, cross-border trade or smuggling) in the region. 
(ii) Direct investment 
18. Despite its legislative efforts (Chapter II(4)), Cameroon still finds it difficult to attract foreign 
direct investment (FDI).  For the period 20 02-2004, UNCTAD placed Cameroon in the category of 
under-performing countries, i.e. those with low FDI potential18, and poor FDI performance.19  I n  
general, the investment climate is  not favourable to the private sector.  Deterrents include a strong 
perception of corruption and continued infrastru cture problems.  Furthermore, the regulatory 
framework is inadequate because the regulations and how they are applied remain unpredictable, the 
judicial system is not fully effective, and taxation is  relatively high and poorly enforced.  In addition, 
there are difficulties relating to loan access and cost.20 
                                                      
18 The Inward FDI Potential Index captures several fact ors (apart from market size) expected to affect 
an economy's attractiveness to foreign investors.  It is  an average of the values (normalized to yield a score 
between zero, for the lowest scoring country, to one, for the highest) of 12 variables (no weights are attached in 
the absence of a priori reasons to select particular weights.  For the methodology, see UNCTAD (undated). 
19 The Inward FDI Performance Index ranks countri es by the FDI they recei ve relative to their 
economic size, calculating the ratio of a country's share in  global FDI inflows to its share in global GDP.  For 
the methodology, see UNCTAD (undat ed).  See also UNCTAD (2006b). 
20 World Bank Group (2006). WT/TPR/S/187 Trade Policy Review 
Page 10 
 
 
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%1995200020012002200320042005Chart I.2
Direction of trade in goods, 1995-2005
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%1995200020012002200320042005(a) Exports
(b) Imports
Source :WTO Secretariat calculations based on data from the Comtrade database, UNSD (SITC, Rev.3).Netherlands Italy Belgium ChinaFrance Spain United Kingdom United States Other
GermanyChina Brazil
United States ThailandNigeria Japan Others
France ItalyBelgiumPercentage
Togo
South Africa
 Cameroon WT/TPR/S/187 
 Page 11 
 
 
19. With regard to FDI performance, in 2005 Ca meroon was ranked 137th out of 141 countries 
examined (compared to 134th in 2000), and as far as the Inward FDI Potential Index is concerned, it 
was 109th in 2004 (compared to 115th in 2000).  In 2005, investment inflows were estimated at 
US$18 million, i.e. only 0.4 per cent of FDI in Central Africa21, a decrease in comparison with 2001 
(US$67 million) and 2002 (US$86 million).  FDI perfo rmance in 2002 was a special case and was the 
result of the petroleum project in Chad, which includ ed the building of a pipeline to transport oil from 
Chad to the Gulf of Guinea across Cameroonian territory.  In 2005, the stock of FDI was estimated to 
be US$1,072 million (compared to US$1,053 million in 2000).  Investment outflows in 2003 (the 
most recent year for which figures are available) were estimated at US$36 million.  In 2005, only one 
company was bought and another sold in cross-border mergers and acquisitions.22 
(4) OUTLOOK  
20. Cameroon's short-term economic outlook remain s favourable.  The injection of additional 
resources into the economy following external debt re lief delivery is intended to  boost manufacturing, 
building and public works, and services, subject to  the implementation of satisfactory measures to 
build up the State's absorption capacity and to strengthen good governance.23  Unemployment also 
needs to be reduced and domestic demand strengthene d by initiating labour-intensive projects such as 
hydroelectric dam construction, cobalt mining in the Eastern province, and the building of trunk 
roads.24 
21. Macroeconomic projections foresee a real grow th rate of 4.1 per cent for 2007, meaning an 
increase of 1.3 per cent in real per capita income.25  Inflation should be around 3 per cent, which 
would be in line with the CEMAC convergence crite rion.  Nevertheless, in order to consolidate 
economic growth in the longer term, economic ac tivities must be developed and diversified, 
especially bearing in mind the expected fall in oi l revenue as a result of the natural decline in 
production caused by the exhaustion of deposits (by 2017 according to some estimates).  This would 
require an improvement in the investment climate and the upgrading of infrastructure. 
                                                      
21 Central Africa in this case means Angola, Cameroon, the Central African Republic, Chad, Congo, 
the Democratic Republic of the Congo, Equatorial Guinea and Gabon. 
22 UNCTAD (2006b). 
23 BEAC (undated d). 
24 BEAC (undated a). 
25 BEAC, press release on the meeting of Camero on's monetary and financial committee held in 
Yaoundé on 6 March 2007.  Consulted at:  h ttp://www.beac.int/communiques/£cmfncam060307.htm.