In 2023, Cameroon’s export revenue to the European Union (EU) totaled CFA1,524.6 billion, down from CFA1,964.4 billion in 2022, according to a report by the National Institute of Statistics (INS). This represents a 22.4% decline year-over-year, reversing a trend of increasing export revenue to the EU since 2020. The decrease is primarily due to a 33.3% drop in revenue from hydrocarbon sales.

On the other hand, Cameroon’s imports from the EU have increased during the same period. The value of goods imported from the EU rose to CFA1,323 billion in 2023, up from CFA1,267 billion in 2022, marking a 4.4% year-over-year increase.

Despite the decline in export revenue, Cameroon still maintained a trade surplus of CFA201.5 billion with the EU. However, this surplus is 71% lower compared to 2022, when it was CFA697.6 billion. The INS report suggests that while the trade balance remains positive, the significant drop in trade with the EU highlights the need to reduce imports of certain products that negatively impact the trade balance, and to invigorate and diversify export activities.

In 2023, fuel and lubricants were the most expensive imports from the EU, accounting for 22.4% of total imports. This was followed by wheat and barley at 10.8%, medicines (including veterinary) at 4.8%, and unroasted malt at 3.6%. The main exports from Cameroon to the EU in 2023 included crude oil, which made up 42.6% of exports, followed by raw cocoa beans at 17%, liquefied natural gas at 15.1%, and sawn timber at 7%.

Source: Business in Cameroon

In July 2024, Cameroon’s inflation rate reached 3.9%, marking a 0.1% increase year-over-year and averaging 5.4% over the past 12 months, according to the National Institute of Statistics (INS). This rate continues to exceed the 3% threshold set by the Cemac for multilateral surveillance.

The INS reports that inflationary pressures during this period were driven by rising food prices and transportation costs. Over the last year, food prices in Cameroon have increased by an average of 7%, while transportation costs have surged by 14.4%.

It is important to note that since February 3, 2024, the Cameroonian government has implemented another hike in fuel prices at the pump, following a previous increase on February 1, 2023. This move has led to higher transportation costs, both urban and interurban, which in turn has impacted the prices of everyday consumer goods.

Source: Business in Cameroon

Nigeria and Equatorial Guinea have signed a groundbreaking deal to build a gas pipeline between the two countries, in a move that will help maximise the use of a liquefied natural gas plant on Bioko Island.

This agreement could be the precursor to a recent initiative to build oil and gas pipelines in the Gulf of Guinea region, linking both littoral nations as well as those inland to promote hydrocarbon usage within Africa and help industrialise the continent.

During a three-day state visit to Equatorial Guinea by Nigeria’s President Bola Tinubu this week, the two nations signed an agreement to construct what they call the Gulf of Guinea Gas Pipeline (GGGP).

The initial aim is to transport gas from Nigeria to Equatorial Guinea where it will be processed at the LNG plant in Punta Europa.

The deal, which was signed by Tinubu as well as Equatorial Guinea’s President Teodoro Obiang Nguema Mbasogo on the evening of 14 August, outlines plans for a pipeline, LNG facility feedstock and gas sales to power companies and industrial users, in a move to boost energy security and regional trade in West Africa.

The agreement covered legislative and regulatory measures linked to the GGGP, as well as issues such as ownership, operations and gas transit arrangements.

Details of the pipeline route were not revealed.

Antonio Oburu Ondo, Equatorial Guinea’s Minister of Mines & Hydrocarbons, said: “By partnering with Nigeria … we are not only strengthening bilateral cooperation but also regional collaboration to ensure a secure and reliable supply of gas for our LNG facility at Punta Europa for years to come.

“This project will unlock immense economic value for both our nations, driving sustainable development and energy security across the region.”

The LNG plant is currently supplied with gas from Marathon’s Alba gas field, and Chevron’s Alen field.

A second phase involves processing gas from Alba under new contractual terms, while the third phase will tap gas from Chevron’s Aseng field.

Earlier this year, Equatorial Guinea also signed a bilateral trade agreement with neighbouring Cameroon to developed trans-border gas and condensate fields, also operated by Chevron, with the gas slated for use as feedstock for the Bioko LNG plant.

Source: Upstream

Cameroon’s public electricity provider, Eneo, announced earlier this month that it has installed nearly 800,000 prepaid meters. This represents about 34% of its total meter installations.

Indeed, the push towards modernization began in 2018, with Eneo replacing outdated electromechanical meters with new prepaid models. Since then, the company has added 798,700 new meters to its network, building on the 1,300 units installed in the program’s first year.

The company, backed by the British investment fund Actis, is taking steps to further increase this number. Eneo is offering a free upgrade for old electromechanical meters to new prepaid ones. “Our recent assessment revealed around a thousand installations needing an upgrade to meet global standards. We’re focused on converting these old meters to the newer prepaid technology,” Eneo explained.

To make this transition smoother for customers, Eneo has set up a robust support system. This includes field teams, assistance at local agencies, online resources, and a network of partners to ensure a seamless experience. The new prepaid meters give customers more control over their electricity usage, eliminate issues like missed bills and billing errors, and remove the need for upfront payments or handling disputes over unpaid bills.

The switch to prepaid meters has already made a noticeable impact. According to Eneo, billing-related complaints dropped by 54% between 2020 and 2022. This improvement has helped ease tensions between the company and its customers, addressing one of the most common points of contention. In 2019, bill disputes made up 43% of conciliation cases, and the new meters are expected to continue reducing these conflicts.

However, the introduction of prepaid meters has not been without its challenges. Eneo has reported a rise in fraud linked to these devices. In the first half of 2023, 62% of fraud cases in Douala involved prepaid meters, up from 38% for traditional meters. “We’ve seen various methods used to bypass these meters, including ‘shunting,’ ‘direct connections,’ and tampering with the meter’s internal components,” the company noted.

Source: Business in Cameroon

In a remarkable achievement that underscores its commitment to excellence and innovation, Access Bank Cameroon has been honored with the prestigious Fastest-Growing Bank and Best Services Provider award for the year 2023. The accolade was presented by the Cameroon English Language Newspaper Publishers Association during a grand ceremony held at the Hilton Hotel in Yaoundé.

The awards, which celebrate the exceptional contributions of individuals and financial institutions to the economic landscape of Cameroon, recognize Access Bank Cameroon’s outstanding growth trajectory and unparalleled service quality.

Commenting on the award, the Managing Director of Access Bank Cameroon, Mr. Ellis ASU, expressed his gratitude and pride in receiving such an esteemed recognition. “This award is a testament to the hard work and dedication of our entire team. At Access Bank, we strive to offer innovative and tailored solutions that meet the evolving needs of our customers. Being named the Fastest-Growing Bank and Best Services Provider is not just an honor but also a motivation to continue pushing the boundaries of excellence in the banking sector.”

Echoing the sentiments of the Managing Director, the Head of Retail Banking, Mr. Frankline FOBAH, highlighted the importance of customer-centric services in achieving this milestone. “Our customers are at the heart of everything we do. This award reinforces our commitment to providing exceptional service and innovative products that enhance the banking experience for our clients. We are grateful for their trust and loyalty, which have been instrumental in our growth journey.”

The recognition by the Cameroon English Language Newspaper Publishers Association is indeed a milestone for Access Bank Cameroon, reflecting its robust growth and unwavering dedication to customer satisfaction. As the bank continues to expand its footprint in the region, it remains steadfast in its mission to deliver world-class banking services that drive economic prosperity for all.

With this award, Access Bank Cameroon not only highlights its position as Africa’s Gateway to the World in the financial sector but also sets a benchmark for excellence.

About Access Bank Cameroon Plc

Access Bank Cameroon Plc. is a comprehensive commercial bank specializing in wholesale, retail, digital, and proximity banking services. The bank was granted its banking license by the government of Cameroon on February 1, 2022, and officially began operating on May 23, 2022, from its main office in Akwa, Douala.

Excited to contribute to Cameroon’s economic landscape, which serves as a vital business hub in the Central African region, Access Bank aims to be recognized as the world’s most respected African Bank and Africa’s gateway to the world. Through tailored solutions that help businesses achieve their financial objectives, the bank offers a wide range of products to enhance trade and industry. With a global presence and connections to major trade routes, Access Bank facilitates access to international markets, supports international payments, and provides trade financing and loans to corporate clients. Furthermore, Access Bank Cameroon is dedicated to empowering SMEs, women in business, and young entrepreneurs in Cameroon by offering innovative solutions, financial education, and customized facilities to address their specific needs. Access Bank has garnered over 10,000 corporate, retail, and business clients and currently operates three branches in Cameroon: Akwa, Bonamoussadi, and Intendance.

Source: Business in Cameroon

Unionized Camair-Co (QC) pilots affiliated with the Union of Airline Pilots and Flight Engineers of Cameroon Civil Aviation (SPINAC) plan to strike indefinitely across Cameroon beginning Aug. 13. The strike is being called due to flight safety concerns and to demand improved working conditions, among other issues.

Increased demand for airline tickets serving similar routes is likely for the duration of the strike. Lingering disruptions are possible in the hours following the end of the strike.

Source: Crisis 24

Cameroon, Central Africa’s second-largest economy, needs to strengthen its tax collection and improve public spending efficiency to boost economic growth, according to the World Bank.

Despite reducing its fiscal deficit by approximately 5 percentage points over six years to just 1.1% of GDP in 2022, largely through cuts in public investment, the World Bank emphasizes that targeted spending is crucial for sustainable growth.

“Cameroon’s fiscal consolidation was expenditure-driven, leading to low levels of public spending that hinder the provision of adequate services and infrastructure investment,” the World Bank noted in a recent report.

To enhance its economic performance, Cameroon needs a medium-term revenue strategy focused on more effective tax collection and improved allocation of resources. Social sectors like health and education have been particularly impacted by under-investment and inefficiencies.

The report also highlights the need to diversify revenue sources, as direct taxation remains low and stagnant. Cameroon’s reliance on value-added tax is compounded by underperforming international trade taxes and levies on property and forests, which cover a third of the country’s territory.

Amid rising global interest rates, borrowing costs in dollars have increased, forcing many governments to seek domestic solutions. However, Cameroon recently secured $550 million through a dollar bond sale with a yield of 10.75%, indicating an urgent need for financing despite challenging conditions.

Cameroon has faced numerous crises, including the impacts of the Covid-19 pandemic and Russia’s invasion of Ukraine. Additionally, internal conflicts have exacerbated poverty in various regions, and a decline in crude oil production has strained government revenue.

Nonetheless, the International Monetary Fund anticipates growth to accelerate from 3.3% in 2023 to 3.9% in 2024, despite a tense political atmosphere. The 91-year-old President Paul Biya, who has ruled for nearly 42 years, is expected to seek re-election in the upcoming February presidential polls, amidst increasing political repression.

Source: Bloomberg

The former French president Nicolas Sarkozy will lead a mission of local entrepreneurs to Cameroon to explore investment opportunities in the African country and promote new projects. The mission, the date of which is not known, was announced in recent days by the former president himself, who met the president of Cameroon on the occasion of the Paris Olympics Paul Biya.

Sarkozy, who led France from 2007 to 2012, included the mission as part of his legal activities, specializing in relations between international investors. Furthermore, the topic was at the center of the 30-minute conversation with Biya, during which the parties reviewed the issues relating to French investments in Cameroon, as well as the details of the aforementioned mission. An initiative intended to shake up relations between private individuals, after French foreign direct investments (FDI) in the African country are declining: in 2022, these had reached 64 million euros, down compared to the 103 million recorded in 2021.

According to the report on Cameroon’s foreign trade published in April by the National Institute of Statistics, in 2023 France is in second place on the podium of Cameroon’s best customers, behind the Netherlands. With the African country, Paris has conquered a market share of 12,3 percent, while on the other hand Yaoundé’s exports to France are led by liquefied natural gas (47,6 percent), followed by products such as oils of crude oil (23,6 percent), cocoa butter (7 percent), fuels and lubricants (6,1 percent), crude aluminum (3,2 percent), aluminum paste and cocoa (3,2 percent) and sawn wood (3 percent). These products, the report specifies, will represent 2023 percent of exports to France in 96,1. In the same year, France ranked third among Cameroon’s suppliers with a volume of goods of 537,7 tons, equal to 7,6 percent of the market share. Around 200 companies work in the African country and over a hundred branches owned or managed by French citizens.

Source: agenzianova