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

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