Cameroon hopes to attract more Chinese investment when it takes part in the upcoming third China-Africa Economic and Trade Expo, said a Cameroonian trade official on Tuesday.

Joseph Mutomby Ndumbe, director of foreign trade at Cameroon’s Ministry of Trade, made the remarks during a promotional conference organized in the capital Yaounde to invite the Central African nation to participate in the expo to be held in China.

Cameroon hopes to export more to the Chinese market and attract more Chinese investors, Ndumbe told Xinhua at the close of the conference.

“We are going there (trade expo) to seek to have the possibility of having fruitful partnerships with Chinese companies that are ready to come to Cameroon,” he said, adding that the country will exhibit made-in-Cameroon products including Penja pepper, Oku White Honey, cocoa and coffee.

The expo, under the theme “Common development for a shared future,” will run from June 29 to July 2 in central China’s Hunan Province.

Yang Zhihua, deputy mayor of Yiyang, a city in Hunan, said at the conference that the province and Cameroon have vast space for cooperation in modern agricultural development and the construction of transport, energy and communication infrastructure.

“We wholeheartedly hope for the participation of the Cameroonian government, think tanks, enterprises, trade associations and financial institutions, with China-Africa Economic and Trade Expo as a platform,” Yang said.

Source: Xinhuanet

Marguerite Fonkwen Atanga became the new managing director of CCA Bank, a former microfinance institution that obtained its banking license in 2018.  Her appointment to replace Alexis Megudjou was announced at the end of the board meeting held last April 24 in Yaoundé.

Before she became the new CCA Bank’s head, Marguerite Fonkwen Atanga was the deputy executive director of the local subsidiary of the Nigerian banking group UBA. She was promoted to this position in 2018 when she was UBA Cameroon’s Director of Retail & Transaction Banking. The newly appointed director thus becomes the second woman to hold this position within CCA. The first was Charlotte Chekep Kouecheu, who was replaced in April 2020 by Alexis Megudjou.

Marguerite Fonkwen Atanga will be assisted in her new position by Ibrahim Oumarou Sanda, the deputy executive. The latter was also part of the UBA team.

Source: Business in Cameroon

Chad’s nationalization of the 1000-km oil pipeline between Chad and Cameroon has led to a full-blown legal and diplomatic crisis between the two neighboring African countries, coming on the heels of ExxonMobil’s decision to divest from its hydrocarbon operations in December of last year.

In the latest escalation of the dispute over the sale of ExxonMobil’s assets in these countries to London listed Savannah Energy, Chad has recalled its ambassador to Cameroon.  In an official statement, Chad said its move was prompted by “entrenched disagreements” with its neighbor to the southwest of the continent.

According to Reuters, Exxon closed the sale of its operations in Chad and Cameroon to Africa-focused oil and gas producer Savannah in a $407 million deal in December. But the Chadian government has challenged the agreement saying the final terms of the deal were different from what had been presented to it.

Exxon’s assets included a 40 percent stake in Chad’s Doba oil project, which comprises seven producing oilfields with a combined output of 28,000 barrels per day (bpd).

It also included Exxon’s interest in the Chad-Cameroon pipeline from the landlocked nation to the Atlantic Gulf of Guinea coast through which its crude is exported.

Chad said in the statement on Thursday that it had reached out to Cameroon to raise concerns about “unfriendly actions” by some Cameroon officials that were contrary to the interests of Chad in the board of the pipeline company but did not get any response.

“Chad finds itself once again in the obligation to defend its interests and its respectability and denounces the repeated actions of Cameroon and its representatives which undermine, relations between the two countries,” the statement said.

“Consequently, Chad has decided recall its ambassador to Cameroon for consultation,” it added.

Source: Reuters

The outstanding amount of credit granted by Afriland First Bank to the Cameroonian economy was estimated at CFA1, 037 billion as of January 31, 2023, official banking market data revealed. Compared to the same period the previous year, this bank controlled by Cameroonian billionaire Paul Kammogne Fokam achieved an increase of 12%, thus confirming its position as the largest credit contributor to the economy.

Better still, the financial institution, which claims more than fifty branches across the country, was the first and only one to have exceeded CFA1,000 billion in credit outstanding over the period. It now controls 21.7% of Cameroon’s credit market. The others that make up the top 5 largest credit contributors are Société Générale (CFA721 billion), SCB (CFA476.7 billion), Bicec (CFA460 billion), and CBC (CFA381 billion). Together with Afriland, they control more than 64.5% of the market share.

A look into Afriland’s portfolio over the period under review shows that the bank was more into short- and medium-term loans, which accounted for a big 80.6% of its outstanding amount. This means that it mainly granted consumer loans, equipment loans, and cash flow loans for businesses. Long-term credits, which are used for large investments, only accounted for CFA12.138 billion of its portfolio, although they were up 41% YoY. In this segment, Afriland came far behind CBC (CFA47.8 billion) and Standard Chartered Bank (CFA31.693 billion). Moreover, more than three-quarters of its loan portfolio over the period went to private companies and individuals. Loans to these two categories of clients grew by 13% YoY to CFA632.2 billion and 34.3% YoY to CFA254.5 billion respectively.

However, the dark side of granting so much credit to the economy is the exposure to the risk of not getting the money back. The number of bad debts in Afriland’s portfolio was estimated at CFA133.8 billion over the period, compared with CFA121.9 billion 12 months earlier. To cover these receivables, the institution had to use its equity to make provisions of CFA99.8 billion.

Source: Business in Cameroon

Growth across Sub-Saharan Africa remains sluggish, dragged down by uncertainty in the global economy, the underperformance of the continent’s largest economies, high inflation, and a sharp deceleration of investment growth, a World Bank report said Wednesday.  

 In the face of dampened growth prospects and rising debt levels, African governments must sharpen their focus on macroeconomic stability, domestic revenue mobilization, debt reduction, and productive investments to reduce extreme poverty and boost shared prosperity in the medium to long term.

 Economic growth in Sub-Saharan Africa is set to slow from 3.6% in 2022 to 3.1% in 2023, according to the latest Africa’s Pulse, the World Bank’s April 2023 economic update for Sub-Saharan Africa. Economic activity in South Africa is set to weaken further in 2023 (0.5% annual growth) as the energy crisis deepens, while the growth recovery in Nigeria for 2023 (2.8%) is still fragile as oil production remains subdued. The real gross domestic product (GDP) growth of the Western and Central Africa subregion is estimated to decline to 3.4% in 2023 from 3.7% in 2022, while that of Eastern and Southern Africa declines to 3.0% in 2023 from 3.5% in 2022.

 “Weak growth combined with debt vulnerabilities and dismal investment growth risks a lost decade in poverty reduction,” said Andrew Dabalen, World Bank Chief Economist for Africa. “Policy makers need to redouble efforts to curb inflation, boost domestic resource mobilization, and enact pro-growth reforms—while continuing to help the poorest households cope with the rising costs of living.” 

 Debt distress risks remain high with 22 countries in the region at high risk of external debt distress or in debt distress as of December 2022. Unfavorable global financial conditions have increased borrowing costs and debt service costs in Africa, diverting money from badly needed development investments and threatening macro-fiscal stability. 

 Stubbornly high inflation and low investment growth continue to constrain African economies. While headline inflation appears to have peaked in the past year, inflation is set to remain high at 7.5% for 2023, and above central bank target bands for most countries. Investment growth in Sub-Saharan Africa fell from 6.8% in 2010-13 to 1.6% in 2021, with a sharper slowdown in Eastern and Southern Africa than in Western and Central Africa.

 Despite these challenges, many countries in the region are showing resilience amidst multiple crises. These include Kenya, Cote d’Ivoire, and the Democratic Republic of Congo (DRC) who grew at 5.2%, 6.7%, and 8.6% respectively in 2022. In the DRC, the mining sector was the main driver of growth due to an expansion in capacity and recovery in global demand. Harnessing natural resource wealth provides an opportunity to improve fiscal and debt sustainability of African countries, but the report cautions that this can only happen if countries get policies right and learn the lessons from the past boom and bust cycles. 

 “Rapid global decarbonization will bring significant economic opportunities to Africa,” noted James Cust, World Bank Senior Economist. “Metals and minerals will be needed in larger quantities for low carbon technologies like batteries—and with the right policies—could boost fiscal revenues, increase opportunities for regional value chains that create jobs, and accelerate economic transformation.”

 In a time of energy transition and rising demand for metals and minerals, resource-rich governments have an opportunity to better leverage natural resources to finance their public programs, diversify their economy, and expand energy access. The report finds that countries could potentially more than double the average revenues that they currently collect from natural resources. Tapping these fiscal resources in the form of royalties and taxes while continuing to attract private sector investment requires the right kinds of policies, reforms, and good governance. Maximizing government revenues derived from natural resources would offer a double dividend for people and planet by increasing fiscal space and removing implicit production subsidies. 

Economic growth in the Cemac region is projected at 2.7% this year, the central bank Beac reported on March 27 following its first 2023 monetary policy committee meeting. This shows a slight decline compared to the 2.9% recorded last year.

“Growth in 2023 will mainly be driven by a strong dynamic in the non-oil sector,” the bank said, stressing that the oil and gas sector, which traditionally supports growth, will experience a setback.

Moreover, the central bank expects an improvement in the region’s foreign exchange reserves. According to the CPM’s projections, they should guarantee 4.9 months of imports over the year, compared with only 3.9 months in 2022.

Source: Business in Cameroon

Gunmen stormed a Chinese-operated gold mining site that had recently been launched in Central African Republic, killing nine Chinese nationals and wounding two others Sunday, authorities said.

However, the rebel coalition initially blamed by some for the attack put out a statement later in the day. Without providing evidence, it accused Russian mercenaries from the Wagner Group of being behind the violence.

The attack early Sunday came just days after gunmen kidnapped three Chinese nationals in the country’s west near the border with Cameroon, prompting President Faustin Archange Touadera to plan a trip to China in a bid to reassure investors.

The assault on the Chimbolo gold mine began around 5 a.m. when the gunmen overpowered the site’s guards and opened fire, said Abel Matipata, mayor of the nearby town of Bambari, located 25 kilometers (16 miles) away. The mining site’s launch had taken place just days earlier, he added.

The bodies of the victims were brought to the capital, Bangui, later Sunday. Local authorities said they were pursuing the assailants, but declined further comment. Residents said that the violence was the latest incident undermining confidence in security forces.

“The government is having difficulty proving its ability to protect Central Africans and foreigners living in the country,” said Ange Morel Gbatangue, a resident of Bambari.

There was no immediate claim of responsibility, but suspicion fell on the Coalition of Patriots for Change, or CPC, which is active in the area and regularly launches attacks on the country’s armed forces. The alliance of rebel groups is aligned with former President Francois Bozize.

Anselme Bangue, who supports the current president’s administration, called the attack on Chinese businessmen an act of “indescribable cowardice.”

“The CPC has not only slowed down the country’s economic momentum, but is now attacking the foundation of development. This is unacceptable,” Bangue said.

However, CPC military spokesman Mamadou Koura said those allegations were false. He claimed without evidence that Russian mercenaries had planned the attack “with the goal of scaring Chinese who have been present long before the Russians settled in this part of the country.”

The shadowy Russian mercenary group was hired by Touadera to provide security and military training, but has been accused by U.N. observers of committing human rights abuses including massacres.

Central African Republic remains one of the poorest countries in the world despite its vast mineral wealth of gold and diamonds among others. A myriad of rebel groups have operated with impunity across the embattled country over the past decade, thwarting mining exploration by foreign companies.

Many of those now operating in the country are Chinese-run and have faced security challenges. In 2020, two Chinese nationals died when local residents led an uprising against a Chinese-operated mine in Sosso Nakombo. And in 2018, three Chinese citizens were killed by angry community members after a local leader died in a boating accident while accompanying Chinese miners to a site.

Source: ABC News

Heads of state from the Economic and Monetary Community of Central Africa (CEMAC) met in Yaoundé, for a one-day summit to discuss the region’s economy and impact of the war in Ukraine.

The heads of state welcomed the “exceptional” economic measures undertaken by the group’s members to mitigate the impact of the conflict.

“We are fully satisfied because the objectives sought have been achieved by our heads of state and I believe that the best is yet to come in terms of sub-regional integration”, said Cameroon’s Ambassador to Equatorial Guinea, Désiré Menguele.

The meeting, which began at ministerial level on Wednesday, also saw 90-year-old Paul Biya pass on the mandate as head of the conference to Central African Republic President Faustin-Archange Touadera for one year.

The six-nation group comprises the Central African Republic, Chad, Gabon, Equatorial Guinea and the Republic of Congo in addition to Cameroon, in a union around a common currency, the CFA franc.

Source: Von.gov.Ng                                                                                          

According to data from banana association Assobacam, Cameroonian banana exporters sold a total of 16,185 tons of fruits in February 2023. Compared to the 16,525 tons sold over the same period last year, this is a decline of 340 tons (-2%). This slight decrease is mainly due to poor performance by market leader Plantations de Haut Penja SA (PHP). The company only shipped 12,919 tons of bananas in February 2023, against 14,209 tons in February 2022 (down 1,290 tons).

Minor market player Boh Plantations also saw a slight decline of 75 tons, from 1,172 tons in February 2022 to 1,097 tons in February 2023. However, CDC achieved a good performance over the period, shipping a total of 2,169 tons; up 47% compared to 1,144 tons in February 2022.

CDC has thus maintained steady progress since January 2023, when its exports increased by 83% YoY. However, there is concern that the recent attack on the company’s employees could end this momentum.

Source: Business in cameroon.com