The Bank of Central African States (BEAC) has successfully withdrawn a total of CFA63 billion from the banking system in two operations. This move is part of the central bank’s efforts to combat monetary inflation, which accounts for 20% of the inflation in the region.

The first withdrawal operation took place on March 28, when the central bank targeted CFA50 billion through the issuance of 14-day BEAC bonds at a 2.5% interest rate. However, it only managed to attract an offer of CFA15 billion, resulting in a relatively low demand coverage rate of just over 30%.

On April 2, BEAC launched another operation for CFA230 billion but only one bank participated, allowing the central bank to withdraw CFA48 billion at an interest rate of 1.25%. In total, the central bank managed to collect CFA63 billion from commercial banks in a week.

Let’s note that the escalation of liquidity withdrawals, including increasing the amounts sought by the BEAC and issuing BEAC bonds, are among the strategies employed by the CEMAC central bank to fight soaring inflation within the region. In addition to these measures, the BEAC has recently increased its key interest rates multiple times to slow down the refinancing pace of commercial banks and has suspended its liquidity injection operations into the banking system.

The central bank’s goal is to drain the banks and thus restrict economic agents’ access to credit. According to the BEAC, injecting significant financing into economic circuits contributes to inflation, especially in countries like those in the CEMAC region, where most goods and services are imported.

Source: Business in Cameroon

The government of Cameroon has announced a 10% reduction in the taxable value of newly imported tires. This move, reported by the Minister of Finance -Louis Paul Motazé, aims to lower the cost of new tire imports into the territory. It is set to last for six months, with the possibility of an extension if required.

Minister Louis Paul Motazé stressed that the decision was taken following “the very high instructions of the Head of State… prescribing additional support measures after pump fuel prices were adjusted,” starting from February 3, 2024. These presidential directives were communicated to him in a letter from Ferdinand Ngoh Ngoh, the Secretary-General of the Presidency of the Republic, dated February 23, 2024.

Beyond the official reasons provided by the Finance Minister, the reduction in the cost of importing new tires in Cameroon also aims to encourage the use of quality tires in the land transport sector. This sector often experiences road accidents caused by the use of poor-quality tires. However, although the decision by Minister Motazé appears to be a temporary measure, it emerges amidst the implementation of an import-substitution policy, which is designed to reduce imports while introducing incentives to foster the development of local production.

In this context, several projects for tire production facilities are in the pipeline. An example is the Cameroon Tyre Factory (CTF), a subsidiary of Neptune Holding owned by Cameroonian business operator Antoine Ndzengué. Currently marketing “Double Star” tires from the German company Double Star Industry, CTF plans to establish a production unit in Bomono, a suburb of Douala, for an investment of CFA400 billion. With an annual production capacity of 4.6 million units, the factory is expected to create about 2,500 jobs.

Such a project could potentially reduce consumer prices for new tires and narrow the country’s trade deficit caused by the massive importation of both new and used tires. According to a report on Cameroon’s external trade by the National Institute of Statistics (INS), the country spent CFA32.6 billion to import 23,164 tons of new tires in 2022. This expenditure represents a decline of approximately CFA1.2 billion from the previous year, as revealed by the INS report.

Furthermore, the INS document disclosed that Cameroon imported 6,596 tons of retreaded or used tires in 2022, costing just over CFA2 billion. The previous year saw imports of 6,913 tons of such tires, amounting to CFA1.8 billion. Contrary to popular belief, the INS data indicates that new tires, despite being more expensive, are more marketed and used in Cameroon than so-called second-hand tires.

Source: Business in Cameroon

MTN Cameroon reported a robust revenue of CFA325.7 billion for 2023. According to data released on the Johannesburg Stock Exchange in South Africa, this figure marks a 10.9% increase from 2022, showcasing a notable acceleration in growth and performance.

Analysis by Business in Cameroon reveals that revenues rose by 8.7% in 2022, 2.2% less than last year. MTN Cameroon’s revenue substantially outpaced the CFA312.9 billion reported by its main competitor, Orange Cameroon, highlighting the company’s dominant market position. A significant driver behind this growth has been internet connection services, which accounted for nearly 38.4% of total revenues. For the first time, these services have overtaken direct call services as the leading contributor to MTN’s revenue in Cameroon.

The company also saw significant strides in its fintech services, including credit lending, which surged by nearly 44.5% to reach CFA57.5 billion, based on the conversion rate at the end of the financial year. This is a sharp increase from the 10.2% growth in 2022.

Data and fintech services combined have formed 52.13% of MTN Cameroon’s total income, up from 51.4% in 2022, 47% in 2021, and 40.6% in 2020. By the end of December 2023, MTN boasted a record 5.8 million active internet subscribers and 5.6 million active Mobile Money users in Cameroon, marking the highest levels in five years. The average revenue per user in Cameroon reached a new high of CFA2542.02 in 2023.

Amidst this positive trajectory, MTN declared a pre-tax and depreciation profit of CFA123 billion in Cameroon, constituting 37.8% of its revenue, the best margin recorded since 2019. However, despite these favorable outcomes, challenges persist. The internet market faces ongoing consumer grievances regarding service quality across all providers. Furthermore, the South African company is currently embroiled in legal proceedings where its bank accounts were frozen due to a dispute involving Baba Danpullo’s holding company, Bestinver, and its South African banker, First National Bank (FNB), a subsidiary of FirstRand Bank (FRB), one of MTN’s shareholders.

Source: Business in Cameroon

During a collective cocoa sale on March 5, 2024, in Abong-Mbang, a key cocoa-producing area in Eastern Cameroon, producer prices per kilogram soared to a new record of CFA4,225, marking the highest rate both nationally and globally. Following this milestone, on March 6, 2024, Cameroon’s Minister of Trade, Luc Magloire Mbarga Atangana, issued an official statement celebrating the remarkable achievement of the Cameroonian cocoa market, attributing its global prominence to favorable international market dynamics and the consistent improvement in the quality of the nation’s cocoa beans.

Indeed, the continued improvement in beans quality, coupled with the current favorable conditions of Cameroon’s cocoa sector, which has seen producer prices rising for months, is a result of the international market’s situation. This includes projected production declines in Côte d’Ivoire and Ghana, the world’s leading producers, mainly due to climate-related issues and aging plantations. According to forecasts by the International Cocoa Organization (ICCO), global production for 2023-2024 is expected to fall by 11% to 4.45 million tons. This is anticipated to lead to a market deficit of 374,000 tons by September 2024, a significant increase from the 74,000 tons recorded during the 2022/2023 cocoa season.

International price surge

The adverse conditions in the international market have led to a surge in cocoa prices, translating into better remuneration for producers in countries like Cameroon. As reported by Ecofin Agency, “since the start of 2024, cocoa has been the best-performing agricultural commodity on the markets, gaining 56.4%, or more than $2,300 per ton annually. After breaking the July 2, 1977 record of $5379 in early February, the price of the benchmark cocoa contract for March delivery on the Intercontinental Exchange in New York broke the $6000 barrier, reaching a daily high of $6929. On February 26, 2024, prices closed at $6884 per ton. All in all, this is a real breakthrough for brown gold, which only a year earlier was trading at $2,668 a ton”.

Beyond the favorable international context, Cameroonian producers are also benefiting from the strategy of collective sales, which enhances their bargaining power against buyers. This sales method, fostering competition among buyers and subsequently increasing producer remuneration, coupled with the robust demand, explains the surge in prices for Cameroon’s distinctive red-brown cocoa beans since the start of the 2023-2024 campaign. Furthermore, the battle between exporters, typically affiliated with major international traders, and local processors vying for control over the increasingly scarce beans has intensified.

As exporters continue to make massive purchases, the country has welcomed three new local processing plants in less than three years (Atlantic Cocoa, Neo Industry, and Africa Processing), with combined capacities approaching 100,000 tons.

Several operators are prepared to increase their bids to acquire beans, aiming to maintain operations in their frequently idle factories caused by a shortage of raw materials.

Source: Business in Cameroon

The National Institute of Statistics recently issued a statement, providing data on Cameroon’s trade exchanges in 2022. According to the document, Cameroon imported goods worth CFA775.8 billion FCFA from China over the period, representing 15.8% of its total imports.

Even though China maintained its leading position, it did lose a bit of its market share, dropping 1.2% from the previous year. In 2021, China’s share was at 17%, the same as in 2020. The report highlighted that Cameroon mainly imported items like machinery, metals, chemicals, plastics, transport equipment, stone works, and insecticides from China. This variety shows the range of goods Cameroon gets from one of its key trading partners. Cameroon’s imports come from 190 countries, totaling CFA4911.4 billion in 2022.

However, when it comes to exports, China ranks as the 6th biggest buyer of goods from Cameroon, purchasing CFA173.2 billion worth of Cameroonian products in 2022. This accounts for only 5% of Cameroon’s exports, a significant drop from 25.8% in 2021. The Netherlands has taken over as the top buyer, importing goods worth CFA932.1 billion from Cameroon, 26.8% of total Cameroon’s exports. The Netherlands gained 14 percentage points, while China lost over 20 points compared to the previous year.

Source: Business in Cameroon

For years now, the cost of living around the world has left many people in difficult financial times. The rising housing cost in the country has left many people around the world homeless while escalating food and oil prices have left many hungry and desperate. To gain a better understanding of the tough financial times in which the increasing fuel prices have dumped Cameroonians, Cameroon Concord News sent its Douala-based reporter to the streets of the city where he talked to ordinary citizens who did not hide their pain and frustration with the government following the recent fuel price increase. To protect the identities of the speakers, Cameroon Concord News prefers to use their first names. This is what they had to say.

Jean Mark (Taxi driver): We are really dying in silence. The recent fuel price increase is going to kill us. Business is not as lucrative as it used to be. The roads are untarred, and we are already spending a lot on car maintenance. Following the government’s decision to increase pump prices, we too have decided to download the price increase on passengers. This is threatening our bottom-line as many young men and women now prefer to walk as a means of cutting down on their transportation cost. The government must do something. Cameroonians are hurting. Car owners require us to bring more money, but with this type of fuel prices, how do we balance our bosses. To cope with the new situation, I drive for almost 16 hours a day just to go home with something for my family. Things are deteriorating and if support measures are not taken, the economy will take a nosedive.

Marie-Irene (Housewife): I am happy that you have come to interview me right in the market. As you can see, the “Bonassama Market” is almost empty. The market women are complaining that they cannot sell their produce because the buyers do not have the money. Take a look at my market basket and you will see that it is almost empty. With CFAF 50,000 I could only buy a few items. A few years back, CFAF 50,000 could feed a family of five for almost ten days, but with increasing fuel prices, CFAF 50,000 cannot take us anywhere. We are straining. It is hard for us to make ends meet. My husband is the bread winner. For more than five years, he has not received any salary increase but food and fuel prices have been on the rise. The inflation has eroded our net family income, pushing us into poverty. What is even more annoying is that the government does not seem to care. Since the cost of living increased, the government has not taken any reasonable supporting measures. The best it has done is to announce a 5% increase in the salaries of civil servants. 5% is simply nothing. With average salaries in Cameroon standing at CFAF 200,000, a-5% increase will imply that someone with CFAF 200,000 will earn an additional CFAF 10,000. What can that buy for a typical Cameroonian family? The government seems to have put us on a diet, and we are losing weight amazingly fast.

Edimo (civil servant): Honestly, things are falling apart for me. As you can see, I am heading to work on foot. I am a civil servant but look at the way I am dressed. It is as if the government is punishing us for agreeing to serve our country. I am overwhelmed. With a family of six, my salary of CFAF 220,000 cannot carry us. My wife also works but we are still under enormous stress. When you look at Cameroonians, you can easily figure out that they are under pressure. Many Cameroonians are on high blood medication. Stressed-induced diabetes is taking down Cameroonians. Escalating prices are hurting us and our families. Many Cameroonians no longer go to shops to shop. The prices there are well beyond their purchasing power. We all now do purchase our clothes from the second-hand market. We are finished! The government is clearly indifferent to our plight. Many Cameroonians can no longer get the health care they need because of high care cost. This is not the country we all hoped for in the early 80s. And this explains why many people are leaving the country.

Peter Martin (Teacher): I am a government teacher. Times are hard and they will continue in for many years. Prices are constantly moving upward while salaries are stagnating. I have parked my car following the recent increase in fuel prices. I cannot afford to run a car with such a meagre salary. To make ends meet, I must organize extra classes in my home. There are many students who are missing classes because they cannot afford to take taxis to school. Cameroon has not got a real mass transit system, and this makes life challenging to the poor. In a few years’ time, drop-out rates in our schools will be high. Literacy levels are also bound to decline as many parents are instead pushing their children into small businesses. The government must take a look at the situation to ensure that rising fuel prices do not have very serious adverse effects on the economy.

By staff man Alain A. Ebot

Between 2021 and 2022, the Cameroon Development Corporation (CDC), a state-owned agro-industrial enterprise operating banana, oil palm, and rubber plantations in the Littoral and Southwest regions of Cameroon, experienced a staggering 34.7% reduction in its workforce. The information was revealed in a recent report by the Technical Commission for the Rehabilitation of Public and Para-public Sector Enterprises (CTR), indicating that 5,518 personnel left the company during the period under review.

The CTR attributes this “significant and continuous decline” in the workforce to the “security crisis that came with the Anglophone conflict.” Indeed, since the conflict started in late 2016, CDC’s facilities and employees have become targets of separatist militants. Incidents such as the incineration of company packaging units, conversion of plantations into separatist base camps, and attacks resulting in severe injuries or fatalities to employees have plagued the CDC. The insecurity prompted a halt in the company’s operations in mid-2018, only to resume nearly two years later. The situation has gradually worsened with the accumulation of salary arrears due to the CDC’s financial difficulties resulting from the Anglophone crisis.

“The operational challenges faced by CDC hinder meeting its financial commitments, resulting in an overall increase in its indebtedness. Social debt has increased due to the 17.78% rise in salary arrears as of December 31, 2022, despite government support, and the accumulation of unpaid social security contributions, which have risen by 15%. As of June 30, 2023, salary arrears amounted to CFA35.7 billion, and the social debt to the National Social Security Fund (CNPS) stood at CFA26.7 billion,” CTR said.

With a monthly payroll estimated at CFA2 billion, according to figures disclosed during a board meeting on December 27, 2018, this volume of salary arrears corresponds to approximately 17 months of unpaid wages. Considering the financial assistance allocated by the state to public enterprises in the 2024 budget, personnel expenses were estimated at CFA16.09 billion in 2022, equating to CFA1.34 billion per month.

With cumulative losses of CFA38.7 billion between 2019 and 2021, as reported by the CTR, CDC emerges as the Cameroonian company bearing the heaviest toll of the ongoing separatist war in the Northwest and Southwest regions.

Source: Business in Cameroon

The Cameroonian government on Friday hiked fuel prices, which will go into effect from Saturday.

According to a statement by Seraphin Magloire Fouda, Secretary General at the Prime Minister’s Office, the price of a liter of Super has been increased from 730 XAF (approximately 1.21 U.S. dollars) per liter to 840 XAF (approximately 1.39 U.S. dollars) and gasoline increases from 720 XAF (approximately 1.19 U.S. dollars) per liter to 828 XAF (approximately 1.37 U.S. dollars).

Fouda said in a statement Friday night that the price increase was “due to the need to absorb the growing budgetary constraints that the state is facing and to avoid tensions in the supply of the nation’s market with petroleum products.”

As part of the measures to accompany the price hikes, basic salary of civil servants will be increased by 5 percent and “certain” taxes and customs duties in the road transport sector will be reduced, according to officials.

“The government is counting on the understanding, sense of responsibility and civic-mindedness of consumers for the implementation of these measures,” the statement said.

Officials said the latest hikes at the retail level were inevitable to reduce the subsidy burden on state-run distribution companies.

The central African nation increased fuel prices by over 10 percent in January last year.

Source: Xinhuanet

Cameroonian socialite Hervé Bopda has been arrested after abuse allegations against him prompted national outrage.

Earlier this month, Mr Bopda and his acquaintances were accused by a popular activist of committing a number of crimes against roughly 200 victims.

Dozens of social media users have subsequently posted fresh allegations of sexual and physical abuse, many using the hashtag #stopbopda.

Mr Bopda, known for his jet-setting lifestyle, has denied all wrongdoing.

On Wednesday, after Mr Bopda was arrested, his lawyer said the accusations were “scandalous”.

Speaking to the BBC, Mr Ojong Ashu acknowledged that the recent slew of abuse allegations prompted his client’s arrest, but insisted that Mr Bopda had been arrested for his own safety.

On 19 January, Cameroonian activist and internet personality N’zui Manto began releasing what he said were “testimonies” from men and women who alleged they had been assaulted by Mr Bopda and his acquaintances.

These included allegations of rape, kidnapping, harassment and physical assault.

The ensuing allegations from social media users, mostly women, sparked calls for Mr Bopda to be investigated by police.

By Monday, the hashtag #stopbopda had become the number one trending topic among Cameroonian users on X, formerly Twitter.

Public figures have also voiced concern. Marie-Thérèse Abena Ondoa, Cameroon’s minister for women’s empowerment, called the accusations “unspeakably serious” in a statement last Friday.

Ms Ondoa said she encouraged “all victims to break the silence in order to break the chain of violence and to provide the judicial authorities with the information they need to carry out proceedings aimed at establishing the facts and, where appropriate, convicting the perpetrators of these appalling crimes”.

She also commended a group of Cameroonian human rights lawyers who had lodged a police complaint against Mr Bopda.

Alongside the lawyers and Ms Ondoa, celebrities from Cameroon and the wider African continent have called for action.

Popular Nigerian Afrobeats musician Ayra Starr posted “#StopBopda!!!” on X last Thursday.

Mr Bopda is widely known within Cameroon as a socialite, businessman and the son of late construction magnate Emmanuel Bopda.

Source: BBC

The Executive Board of the International Monetary Fund (IMF) approved today an 18-month arrangement for Cameroon under the IMF Resilience and Sustainability Facility (RSF) for a total amount of SDR 138 million (about US$183.4 million, 50 percent of quota), with disbursements to start when the First Review of the arrangement is completed.

Cameroon is highly vulnerable to climate change, with risks from recurrent droughts, floods, landslides, and coastal erosion. The RSF will support Cameroon’s efforts to adapt to and mitigate the impact of climate change and replace more expensive financing. It will help address climate vulnerabilities by supporting the authorities’ efforts to strengthen the country’s institutional framework for governance and policy coordination related to climate change, mainstream the climate agenda into public financial management, enhance national adaptation policies, and step up mitigation efforts. The reform measures under the RSF are also expected to reinforce the growing engagement of development partners and other stakeholders in climate-resilient development and catalyze additional climate finance.

The RSF arrangement coincides with the remaining 18 months under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements approved in July 2021 and extended in December 2023 to support the country’s economic and financial reform program.

At the conclusion of the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, made the following statement:

“Cameroonis a fragile and conflict-affected state facing substantial risks from climate change, including an imminent threat to livelihoods and potentially significant output losses, which could worsen food insecurity and conflicts and exacerbate poverty, inequality, and population displacements. The country’s regional diversity exposes it to a variety of climate-related events, including droughts, floods, and coastal erosion. If not appropriately addressed, climate change could delay human capital accumulation and jeopardize development and inclusive growth.

“Addressing the impact of climate change is an important priority in the country’s national development strategy. Cameroon is signatory of the COP21 and other key international conventions on climate change and is committed to a sustainable management of natural resources and adaptation and mitigation policies.

“The identified reforms under the Resilience and Sustainability Facility (RSF) arrangement build on the authorities’ national strategies and plans and on the diagnostics on climate change. The RSF reform package will help address key climate-related policy challenges, including creating an enabling environment for policy implementation, with appropriate institutional and public financial management frameworks; strengthening the national disaster risk management framework to step up adaptation efforts; and leveraging fiscal management in forestry as a climate mitigation policy.

“A resolute implementation of reforms under the RSF arrangement will help improve Cameroon’s medium-term climate policy stance, replace more expensive financing, and augment buffers against climate shocks and related prospective balance-of-payment needs. The arrangement should also help catalyze other climate financing. Capacity development efforts and close coordination among government entities and development partners involved in Cameroon’s climate agenda will be important.”

Source: IMF.org