Cameroon has increased troops around its lone oil refinery, after a weekend explosion caused a shutdown of the facility. But the government denies separatist fighters were responsible and says there will be no shortages of petroleum products.

Christine Enanga, a 21-year old trying to buy cooking gas from a supplier in Cameroon’s capital Yaounde, worries that in days ahead she may not be able to find the commodity.

“I came to buy four bottles of [cooking] gas,” she said, “but they told me they could not sell four, that they could only sell two because other people are buying and I know there would be serious scarcity in Cameroon.”

Drivers are also buying and stocking fuel. The scare was sparked after a storage tank exploded Saturday night at Cameroon’s only oil refinery in the town of Limbe, in the Southwest region.

The blast caused a fire that damaged parts of the refinery and shut down output. No lives were lost.

Cameroon’s Trade Minister Luc Magloire Mbarga Atangana said there will be no shortages and no price increases of petroleum products.

He said Cameroon two years ago found itself in a similar difficult situation, when the national refinery shut down its doors for eight months for rehabilitation. He said shortages in supply were minimal because imports were increased without increasing prices.

He urged people to remain calm.

Rebels fighting to separate the English-speaking parts of Cameroon from the Francophone majority claimed responsibility for the explosion on social media. They said the refinery was attacked because English speakers benefit very little from the company.

Government spokesperson Rene Emmanuel Sadi said proceeds from the company are used to develop all of Cameroon and refuted claims that the explosion was perpetrated by secessionist fighters. He said early investigations indicate it was an accident.

He said details of the accident that blew up parts of the refinery will be made public soon. He added that the military has been deployed to make sure the refinery and its equipment are totally protected.

The refinery, which is almost entirely state-owned, supplies 2.2 million tons of crude a year to Cameroon and countries of the region including Togo, Nigeria, and Ghana.

Source: VOA

Cameroon’s state oil refinery declared force majeure on Saturday, after a storage tank exploded overnight, causing a fire that shut down output at its main refinery in Limbe but caused no deaths.

A letter to its partners seen by Reuters said the fire had “caused a production stoppage at all of our units for a period to be determined.”

Cameroon’s Sonara refinery, which is almost entirely state owned apart from a 4% stake held by Total, has a capacity of 2.1 million tonnes of crude a year. It serves the whole country, so any delay in getting it back up and running has the potential to cause severe fuel shortages. It is also a major supplier to the region, including Nigeria, Togo and Ghana, with some products also being exported to the United States and Europe, according to its website.

A Sonara spokesman declined to comment.

On Twitter, the company wrote that “there were no deaths nor injured,” in the blast.

A project has been under way for nearly a decade to try to boost its capacity to 3.5 million tonnes, but Sonara has struggled to raise the needed finance.

Source: Reuters

A series of explosions have occurred at the national oil refinery (SONARA)in the Southwest port city of Limbe with separatist claiming that they are responsible for the fire. Mark Bareta, one of the separatist spokespersons has published on his Facebook page that separatists are at work and they are responsible for the disaster that is unfolding in the oil refinery.

A source in Limbe has also indicated that government officials are suspecting separatists for the explosions, though some reports hold that the fire is a pure accident in one of the extension tankers. The source adds that government security officials are already on the ground to contain the fire, but they are scared separatists might be implementing their agenda of sabotaging government facilities. He stressed that separatist fighters have infiltrated all government organizations and institutions and government officials are really concerned as these fighters have the intention of bringing down the economy to its knees.

Southern Cameroons separatists have been targeting the oil refinery for years as part of their scheme to rob the Yaounde government of vital oil resources. Many Southern Cameroonians hold that the oil refinery has not brought them any good and that it could as well just been brought down. Since the discovery of oil in the Rio Del Estuary in the Southwest region, the region has been impoverished and locals are not being employed in the refinery. This has caused a lot of angst among the English-speaking minority, especially as SONARA workers, most of whom live in soecial neighborhoods are Francophones.

Muyenge Trouble, a mainly agrarian village with a once dynamic farming population on the leeward side of Mount Cameroon, is one of the many communities ensnared by the violence that has swept through Cameroon’s English-speaking regions since 2017. Tassa Tassa Paulinus used to live there. But the life of this middle-aged plantain farmer has been turned upside down ever since he was forced to flee his home in November with his five-year-old daughter, trekking through dangerous bush paths to the relative safety of Muyuka, a town over 30 kilometres away.

“I could no longer live in Muyenge as it had become a veritable ‘red zone’. The Amba Boys [armed separatists] of the Ambazonia Defence Forces made life very difficult. They kept demanding money from me,” Tassa explains. The farmer says he could have paid them for ‘protection’ if he had been able to sell his produce. But since the fighting between government forces and militant separatists began, the traders who used to frequent Muyenge Trouble have stayed away; they want to avoid running into lethal clashes and they don’t want to negotiate their way through the checkpoints mounted by rebel fighters in the area.

“At one point in time, I harvested over 400 bunches of plantain from my farm, but no buyers came. They all got rotten. A week later, the Amba Boys came for more money. I had to leave,” says Tassa, who has not seen his wife since she was kidnapped by the Amba Boys last September.

Away from Muyuka, which is 27 kilometres away from Buea (the capital of the Southwest Region, which, along with the Northwest Region, is where the so-called ‘Anglophone crisis’ is taking place), Martin Ekoke Sona is another farmer who has seen his dreams go up in smoke due to the conflict. The 30-year-old had been planning to set up a large yam plantation. “I had planned to cultivate yam on a large scale. But just before the farmland was due to be cleared, a school in the area was razed to the ground in an arson attack. That forced me to abort the project,” recalls Sona, who lost about half a million CFA francs (US$862) in the process.

At the time, Sona had just completed a six-month intensive entrepreneurship programme sponsored by the African Union’s New Partnership for Africa’s Development (NEPAD) and other partners. He feels frustrated that he hasn’t been able to utilise his new-found skills due to the conflict. “I now do yam seed multiplication, and I can barely produce 300 seeds in six months. If we were in peace time, I could produce 1,000 or more yam seeds over the same period.”

Food crisis on the horizon?

In the Northwest and Southwest Regions, where as much as 70 per cent of the population is involved in agriculture, ordinary people are now facing crop failure, food insecurity and job losses thanks to a conflict that started in October 2016 when English-speaking lawyers began protesting the appointment of French-speaking judges to their courts.

A few other frustrated groups, among them teachers, later joined in peaceful rallies.

Initially, protestors were calling for an end to decades of under-investment and government policies which they felt discriminated against the country’s English-speaking regions. However, the government of President Paul Biya (Cameroon’s ruler since 1982) responded to the protests with force, pushing many moderates to get behind separatists calling for an independent state they want to call ‘Ambazonia’.

To date, over 1,000 people have been killed in the fighting, according to local human rights groups, while the United Nations Office for the Coordination of Humanitarian Affairs estimates that insecurity and violence in these two regions have uprooted 437,000 people from their homes and forced over 32,000 to seek refuge in neighbouring Nigeria. An estimated four million people have been affected by the conflict.

With no peace agreement or inclusive national dialogue in sight, the possibility of the conflict ending soon becomes more elusive with each passing day. The uptick in violence, which started in September 2017, has scared people away from their fields, restricted population movements and limited access to markets, thereby exacerbating the population’s vulnerability to acute food insecurity.

According to United Nations Resident Humanitarian Coordinator for Cameroon, Allegra Baiocchi, hundreds of thousands of people in Cameroon need urgent assistance and protection. “Attacks against civilians have increased and many conflict-affected people are surviving in harsh conditions without humanitarian assistance due to the dramatic underfunding of the response [Humanitarian Response Plan]. Cameroon today can no longer be a forgotten crisis; it needs to be high on our agenda,” Baiocchi said in a press release in January.

The severity and magnitude of the situation is such that the United States Agency for International Development, USAID, estimates that 1.4 million people in Northwest, Southwest and West regions will face stressed (Phase 2) levels of acute food insecurity between March and May this year. In addition, nearly 486,000 people – approximately seven per cent of the three regions’ total population – will face crisis (Phase 3) conditions during the same period. Phase 5, which is catastrophe and/or famine, is the highest level of acute food insecurity.

Professor Ernest L. Molua, a renowned agro-economist and Dean of the Faculty of Agriculture and Veterinary Medicine at the University of Buea tells Equal Times that abandoned farmlands, the persistent harassment of those farmers who decide not to flee, abandoned field crops and stolen harvests have all contributed to low production levels and a shortfall in market supply. “This has led to a 4-5 per cent growth in staple food prices.” An average bunch of plantain for example, which previously sold at CFA2,500 (US$4.3) now sells at between CFA3,000 (US$5) and CFA3,500 (US$6).

He continues: “These increasing prices are seen as attractive by traders in the western flank of the Littoral Region who divert supplies away from the food markets in Douala [Cameroon’s economic capital, which is situated in the Littoral Region] to towns deemed safe in the neighbouring Southwest Region.”

“We can no longer sell our cocoa”

In Cameroon, cash crops have felt the brunt of the conflict’s impact on agriculture. The Southwest Region represents 45 per cent of total national cocoa production while the Northwest Region represents 70 per cent of total national arabica coffee production. In both regions, farming and post-harvest operations of these cash crops have been reduced to a bare minimum.

Che Divine, a cocoa farmer in the Mbonge area, west of Cameroon, tells Equal Times the production process has become more difficult since fighting began. “We are compelled to pay CFA30,000 (US$52) to the Amba Boys during each harvest. And the harvest has been poor because we don’t treat the cocoa trees well due to the lack of chemicals.”

Esapa Patrick Enyong, president of the Southwest Farmers’ Cooperative Union, which unites over 10 cooperatives, confirms that the agricultural sector has taken a turn for the worse: “Things are very slow at the moment because of the crisis. We are making huge losses as we can no longer sell our cocoa directly at the port in Douala.”

The situation is so bad that during the 2017/18 cocoa season, the Southwest Region lost its first place as the country’s biggest cocoa producer to the Centre Region, passing from 45.45 per cent of the national production to 32 per cent, causing a production deficit of 43,000 tons.

The Cameroon Employers’ Union, GICAM, reports that in 2018 the country lost CFA56 billion (US$96 million), 20 per cent in relative terms, in cocoa and coffee export revenues due to the crisis. Some 210,000 cocoa farmers in the Southwest Region alone were affected, causing farmers to lose as much as CFA35 billion (US$60 million) in income.

Another major hurdle to cocoa production has been the transportation of cocoa beans from production basins to the port city of Douala for export. Armed separatists have sabotaged various road networks and have even hijacked and burnt truckloads of cocoa from licensed buying agents (who they consider to be in cahoots with the government). The country’s National Cocoa and Coffee Board registered a stockpile of 7,212 tons of cocoa in the 2016/17 cocoa season, a figure that increased to 27,159 tons in 2017/18.

Cameroon Development Corporation

But if there is one entity that has been dealt the biggest blow by the conflict, it is the Cameroon Development Corporation (CDC), an agro-industrial parastatal group that grows, processes and markets tropical export crops such rubber, banana and palm oil. It is the second highest employer after the government civil service, with a workforce of over 22,000 employees.

Armed separatists have ground processing mills to a halt. Warehouses have been set ablaze and labourers have been chased out of plantations, some have even had their fingers butchered.

Of CDC’s 29 production sites across the country, 12 have been shut down, 10 are partially functioning while only seven are fully operational. The company’s precarious financial situation has caused job loss for 6,124 employees, while 5,805 more jobs could be lost as the conflict persists, representing 70 per cent of CDC’s workforce.

Franklin Ngoni Njie, the general manager of CDC, says CFA 29.6 billion (US$51 million) is needed to get the company back on its feet, “but insecurity remains a huge hindrance to the accomplishment of this goal.” He fears the CDC may collapse without an urgent intervention.

This is the fate that has befallen previously notable companies such as the parapublic agro-industrial company Pamol Plantations. Many small to medium-scale farmers in the affected regions have also been badly hit. Mkong Cynthia Jeh, a graduate teaching assistant of agricultural economics and agribusiness at the University of Buea says the current state of affairs has also had a huge, negative impact on foreign exchange. “The cash crops can no longer be produced and exported as before the crisis. It will require huge amounts of money to get back to normal when the fighting stops.”

Culled from Equal Times

Cameroon is planning to inseminate over 270,000 cows to boost the dairy industry by 2027.

The Central African country is planning to enhance its dairy industry through the Husbandry Development Project (Prodel) funded by the World Bank via its livestock department of a large amount of to XAF60 billion.

The move is to avoid spending huge amounts to import animals with high genetic potential. It is also expected to enhance Cameroon’s cattle population and national milk production.

According to Prodel experts, this type of operation has been successfully carried out in countries such as Mali and Côte d’Ivoire, where artificial insemination of local cows has boosted production in the livestock sector.

In Cameroon, authorities hope to be able to reduce a milk production deficit estimated at about 170,000 tons, as reported by Business in Cameroon website.

Source:Devdiscourse

Cameroon’s new petroleum code is seeking to improve upstream production and revenues amid greater regional competition and major political troubles.

The national assembly has approved a new and expanded petroleum code. It must now be ratified by President Paul Biya in the next 15 days in order for it to enter into law.

Although Cameroon’s new petroleum code has not been made public yet, Interfax Natural Gas Insight understands it contains several provisions aimed principally at boosting hydrocarbon production, government revenues and local content. The majority of the changes appears geared towards rekindling investor interest and is being introduced against…

Source: Interfax Global Energy

The Cameroonian Telecommunications Regulatory Board (TRB) has rejected MTN Cameroon’s proposed tariff plan for 2019, ITWeb Africa reported. It rejected the operator’s technical offering and pricing conditions for access and sharing of network infrastructure, because it reportedly did not respect certain proposals made by TRB’s board. 

TRB had recommended that MTN Cameroon reduce the cost of interconnection for SMS and voice by 50 percent, eliminate validity periods for SMS bundles, reduce SMS tariffs by 30 percent, as well as reduce the surcharge distribution key in favour of partners. The regulator had also asked the company to define the maximum duration of an internet session and the period of disconnection, and to reduce the 40 percent activation fee. The network operators had been urged to remove fixed monthly fees which do not correspond to any service or validity duration of offers, amongst others.

Officials said following a review of the company’s interconnection catalogue, it was clear that most of the recommendations were not taken into account. According to the regulator, in MTN Cameroon’s proposal, some fees were maintained while others were increased compared with 2018. Ali Soungui, TRB’s Director of Licensing, Competition and Interconnection, said MTN Cameroon replicated its 2018 interconnection catalogue, which levied call cost at XAF 22 per minute during peak hours and XAF 20 per minute off peak, instead of XAF 12 per minute as recommended by TRB.

MTN Cameroon has not responded to the latest development.

Source: Telecompaper

Cameroon organized a workshop in collaboration with the UN Economic Commission for Africa (ECA) in the capital on Tuesday to lay the groundwork for the implementation of Africa Continental Free Trade Agreement (AfCFTA).

Government officials said the two-day workshop gives Cameroon the opportunity to assess what the country will benefit from the agreement.

“We are talking about a continent of over 1 billion people and there are 25 million of us in Cameroon. The advantages of the free trade zone are so many for an economy like ours. It is necessary for us to work day and night to be part of the advantages and not disadvantages. We are confident that it will bring a lot of prosperity and stability to our economy,” Cameroon’s Minister of Trade, Luc Magloire Mbarga Atangana, told reporters.

The workshop, the first of its kind, brings together more than 100 stakeholders from the private sector, academia and civil society to evaluate Cameroon’s readiness to ratify the agreement.

Twenty two African nations have already ratified the agreement, the minimum threshold expected to approve the deal among the 55 members of the African Union.

According to ECA, AfCFTA represents a potential market of 1.2 billion consumers today, and nearly 2.5 billion in 2050, and is a powerful lever to stimulate exports, industrialization, job creation and economic diversification of the African continent.

Source: Xinhuanet

Cameroon’s four cement producers achieved a total turnover of XAF191.9bn (US$330.4m) in 2018, according to sources in the country’s tax administration. 

Market leader Dangote Cement Cameroon sold 1.2Mta of cement, resulting in a sales figure of XAF86.4bn. 

LafargeHolcim-owned Cimencam increased its revenues to XAF70.7bn following the inauguration of its new 0.5Mta Nomayos plant in Yaoundé suburb on 2 April 2019. 

Cimaf Cameroon, part of the Morocco-based Adoha group, achieved a turnover of XAF28.5bn, ahead by Medcem Cameroon (owned by the Turkey-headquartered Eren Holding), which had sales of XAF6.3bn.

Published under Cement News

Cameroon Inter-Employer Group (Gicam) met the Association of credit institutions’ professionals (Apeccam) on April 4 in Douala, the Cameroonian economic capital, to discuss the new exchange regulation within the Cemac region.

Celestin Tawamba, President of Gicam, took this opportunity to express his concern about the difficulties faced by economic operators in accessing foreign exchange, in Cameroonian banks.

“For 71% of employers who are members of Gicam, access to foreign exchange is a major concern,” he said, denouncing banks that make “indecent proposals” to economic operators at usury rates.

The meeting was also attended by representatives of the Central Bank of CEMAC States Beac which some commercial banks say is the cause of this currency shortage. In response, Beac reassures about the availability of foreign currency and says the situation is the result of a strict enforcement of rules on foreign exchange transactions; rules that some banks did not fully follow.

Source: Business in Cameroon