Cameroon’s second largest employer, the Cameroon Development Corporation, says it has been paralyzed by the separatist conflict in the country’s English-speaking regions.  The agricultural giant has not been able to pay its staff for a year because of falling production and revenue.

The village of Meanja used to be a banana production center in Cameroon’s English-speaking southwest.

Two years ago, 2,000 people lived here, and many worked for the Cameroon Development Corporation’s banana production unit.

But these days, a visiting reporter sees only abandoned houses, empty schools, and silent factories.

Oliver Kogue worked at the Meanja banana factory but says security threats forced them to shut down. Armed separatists attacked the factory in 2017, he says, killing four workers and wounding scores of others.

“This production unit produces averagely 60 tons of banana daily and after this attack, work has ceased.  Workers escaped for their dear lives,” Kogue said. “Five-hundred-and-60 workers were working in this particular section. In the course of stopping work we have deprived 560 workers from employment.”
The Cameroon Development Corporation is the central African country’s second largest employer and runs banana, palm oil, and rubber plantations.

But the three-year conflict between Anglophone Self Defense Groups and French Cameroun government troops has forced the CDC to close farms and factories across Southern Cameroons.

CDC general manager Franklin Ngoni Njie says more than half of his 20,000 workers – fearing attacks – refuse to work, while the remainder work only part-time.

“If you look at the economy of the area, what else do we have? CDC every month directly in form of salaries and wages is 2.2 billion {CFA} francs every month,” Njie said. “All of that activity is dead.”

Cameroon’s Francophone agriculture minister, Gabriel Mbairobe, says the government is negotiating with staff to resume work. He says the government will assure their safety and settle the past year of unpaid salaries.

“I will like to appreciate the willingness of all workers to resume work,” Mbairobe said. “I can assure them that the government will take all the measures to pay their salary arrears and to give money so that the plantations and the factory will be back in activity.”

The conflict in Cameroon’s English-speaking regions was sparked in 2016 by protests against discrimination from the country’s French-speaking majority in education and the justice system.

The government responded with a crackdown and armed separatists fought back.

The Ambazonia Restoration Fighters consider state-run companies such as the CDC and institutions such as schools legitimate targets.

Last month, the Cameroon Employers Association said Self Defense Groups had transformed many CDC plantations into training grounds.

Reported by the VOA with additional editing from Camcordnews

Cameroon top state-owned agribusiness said the Anglophone crisis in the country has had a “disastrous” effect on its operations, cutting output of palm-oil and rubber and leaving most of its banana plantations destroyed. The majority of about 22,000 workers at the Cameroon Development Corp., the country’s biggest employer after the state, are no longer going to the company’s plantations and haven’t been paid for months, Director-General Franklin Ngoni Njie told reporters on Sunday.

Sixteen workers have been killed by separatist fighters since the crisis erupted almost three years ago, and 98 others have been assaulted or maimed, he said. The CDC grows and processes rubber, palm-oil and bananas on about 42,000 hectares (104,000 acres).

Most of its plantations are in the Southwest and Northwest regions, where Cameroon’s minority English-speaking population lives. Economic activities in the two regions have been paralyzed by rebels who want to break away from the larger French-speaking area in the central African nation.

The unrest has left only four out of 11 rubber estates functional, halted operations at two palm-oil mills and slashed output to 2,100 metric tons, from an expected 17,400 tons, the CDC said. Agriculture Minister Gabriel Mbairobe said on July 5 that President Paul Biya would take “urgent measures” to ensure a resumption of activities at the company.

Source: Bloomberg

The Economic Community of West African States (ECOWAS) has formally agreed on a name for a planned common currency set to be launched in 2020.

“ECO was adopted as the name of the ECOWAS single currency,” representatives of the 15-member group agreed in the Nigerian capital, Abuja, on Saturday.

“Afri” and “Kola” had been other names suggested that were rejected by the members.

An ECOWAS statement said the aim was a “gradual approach to the single currency starting with countries that meet the convergent criteria.”

Currently, eight ECOWAS countries – Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal and Togo – jointly use the West African CFA franc, while the seven others, including Cape Verde, Gambia, Ghana, Guinea, Liberia, Nigeria and Sierra Leone, have their own separate currencies.

The idea of a common currency for the West African region was first mooted almost 30 years ago in the hope of boosting cross border trade and economic development.

The ECOWAS statement said the currency would be based on a flexible exchange rate regime, coupled with a monetary policy framework focused on inflation targeting.

Member states should pursue appropriate policies and structural reforms that will sustain accelerated growth and the structural transformation of their economies, it added.

The new “ECO” currency for West Africa has been compared to the European Union’s “Euro” currency.

Nigeria, which accounts for most of the region’s economic output, is the powerhouse of West Africa with over 190 population and the vastest economy.

“It is difficult to see Nigeria agree to being in a monetary union if it is not the boss,” said economist Ndongo Samba Sylla from the Dakar-based Rosa Luxemburg Foundation.

ECOWAS, which was set up in 1975, represents a total population of around 385 million inhabitants.

It comprises Benin, Burkina Faso, Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone and Togo.

Source: Presstv

The local mobile telecom companies Orange and MTN in Cameroon have been fined over $160 million for failing to pay taxes on games and gambling services.

The Central African country corruption board announced on Wednesday.

A probe into the sector led to fines totaling $283 million, and found other companies including Camtel and Viettel were also in violation of regulations.

The amount paid by each company was not clear and the companies were not immediately available for comment.

In the report the Telecommunications Regulatory Agency said MTN and Orange were also accused of not paying taxes on their money transfer system, known as Mobile Money.

The report is another blow for MTN, which is already contesting a $3.9 billion fine in Nigeria for failing to disconnect users with unregistered SIM cards.

Unregistered SIM cards can be used for criminal activity – a growing concern in Nigeria facing the threat of militant Islamist group Boko Haram.

MTN successfully lobbied to get the fine reduced from $5.2 billion in December.

Source: AFP

The Cameroon minister of plan, Louis Paul Motaze, has met with the African Development Bank Group’s President and discussions focused on the possibility of the continent’s leading development finance institution extending a loan from its soft arm window for the rebuilding of the country’s oil refinery that went up in flames last month.

The AfDB is capable of granting Cameroon up to USD 1 billion as an emergency loan given the country’s mounting economic and financial woes.

The cash-strapped Yaounde government is looking for resources as the Southern Cameroons crisis has robbed it of its ATMs.

CDC, PAMOL and SONARA have all gone under and this has left the government with very few avenues to raise revenue.

It is becoming clear that the country is running out of foreign currency and civil servant will soon be facing salary challenges.

Our reporter, Kingsley Betek, is on the ground to provide details of the meeting between the AfDB president and the Cameroon government official.

When Cameroon’s lone refinery went down, many thought it would take long for the adverse effects to start showing. But less than two weeks after the event, the government is scrambling for solutions to clog the revenue gap left behind by the refinery’s meltdown.

SONARA has always been a huge contributor to the government’s annual budget and now that it has gone up in smoke, it implies that the country’s budget has to be amended and new sources of revenue sought. The country’s Parliament is already considering amending the budget. This is a clear sign that the meltdown is biting the government where it hurts the most.

The government’s major ATM has vanished in smoke and this is leaving government officials awake all night. The refinery used to deliver almost 50,000 barrels of oil a day and this was a guaranteed source of revenue for the government. The disappearance of this stream of revenue has really destabilized the government which is yet to find new sources of revenue.

Within government circles, officials are praying day and night that global oil prices should not escalate as this will spell more problems for the beleaguered government. Escalating oil prices will imply the government will run out of foreign exchange very fast as it will look for resources to import oil and oil products so as to meet rising domestic demand.

The fear is that in the absence of those products, prices of other products, especially food stuff, may also escalate and this would trigger inflation that might make life unbearable for millions of Cameroonians who, for many decades, have only been scrapping a living.

Escalating prices might spell a disaster for the government which is on its last foot. Cameroonians have been scared of pouring into the streets to confront a government that has made corruption and nepotism its hallmarks, but if food prices soar beyond their financial ability, it is obvious that millions will take to the streets to challenge the corrupt and inefficient government.

The first signs of a disaster are already on the horizon. Gas stations across the country are already complaining of fuel shortages and this is just the beginning. According to the government’s thinking, it could take over a year for SONARA to come back to business. This is, indeed, bad news for many Cameroonians who are already out of work and those whose businesses were closely tied to the jinxed refinery.

If government officials are talking about a year, it is clear that it will take more than three years for real business to start at SONARA. Currently, the government is looking for financial resources to rebuild the facility. It is counting on the African Development Bank and the World Bank which do not hold the country’s authorities in high esteem.

Investors in the world have very low appetite for Cameroon’s debt. The corruption for which the government is known is making it hard for foreign money to make its way into the country’s economy. Putting SONARA back to international standards will require more than USD 20 billion and the cash-strapped Yaoundé government is yet to figure out how to get such resources given that it has a very bad reputation abroad.

Though the refinery had an insurance policy, it is obvious that after such an accident, there must be investigations to determine the cause of the accident before insurance companies start paying out the benefits. They must also determine if the facility was up-to-date with its premium payments.

Cameroon has been defaulting on lots of commitments and it will not be surprising to know that it could have also defaulted on the payment of its premiums. For now, lawyers of the facility are working with their foreign counterparts to seek a way forward on how to make the once viable SONARA a going concern again.

The government has also been looking at other options which could net it some huge amounts of money. It has been talking with the French government on how to rebuild SONARA which had delivered huge amounts of oil to the French for peanuts.

The French are open to the idea of granting the corrupt Yaoundé government some of the money, but they are unhappy with the way the government has handled most of the crises that have put the country in the spotlight for all the wrong reasons.

France’s closest allies are walking away from it as it is believed that Paris is supporting the Yaoundé government in its resolve to kill the people of Southern Cameroons. Many EU countries are insisting on Yaoundé calling for an inclusive dialogue that will help normalize things in Cameroon.

But Yaoundé has been indifferent to those calls. Many EU countries have already allied with the United States and Canada on how the Southern Cameroons crisis could be addressed. America’s determination and its ability to mobilize other countries, including some of Cameroons neighbors like Equatorial Guinea, have rattled the regime and its supporters.

Over the last two days, regime supporters, including the Speaker of the House and the Senate President have been shouting from rooftops that there is a global conspiracy to destabilize Cameroon. They blame this on Southern Cameroonians and government forces seem to have been irritated by the enormous pressure coming from Brussels and Washington D.C.

The last few days have witnessed massive killings in many villages in Southern Cameroons. In Ossing and Ndekwai in the Southwest region, government troops slaughtered more than ten innocent civilians in a situation many observers say was unnecessary. In Esu and Jakiri in the Northwest region, army soldiers beheaded unarmed civilians. The killings have intensified over the last couple of days as the regime suspects that international pressure may increase in the days ahead.

Army soldiers have also been burning homes and destroying food crops, believing that such tactics will cause the population to yield and betray the fighters. This strategy has been in effect for more than two years, but the Southern Cameroons population is very determined. Most southern Cameroonians are for independence and will not settle for anything less.

The Yaoundé government is really frustrated. Its international allies are walking away and this is creating brand new problems even in the North where Boko Haram remains a lethal threat. The withdrawal of American military support in the North has exposed Cameroon’s army soldiers to more attacks from Boko Haram. 

Yesterday, some 23 Cameroon soldiers were slaughtered by Boko Haram fighters in the country’s northern region. The ill-equipped soldiers were surprised by the fighters and were sent to an early grave. Their checkpoints and offices were demolished and weapons seized by Boko Haram fighters. American sanctions have already begun biting and if care is not taken, the days ahead may be bloodier.

According to sources close to the government, the stress is obvious. Government officials seem to be seeing the writing on the wall. The government is out of money and the West’s decision to turn the heat on the collapsing Yaoundé government seems to spell the end for a regime that has thrived on corruption and tribalism.

As the oil refinery has gone, the government does not have money to buy and corrupt more people. Some of its fervent supporters are already jumping ship. Many senior government officials are already sending their families abroad as they know that America’s determination to bring change to Cameroon can never be underestimated.

There is panic in Yaounde. The “river of money” in the southwest region has gone dry. CDC, PAMOL and SONARA are all facing problems and these are corporations that have stood the government in good stead over the last fifty years.

With these corporations facing tough challenges, it is clear that Cameroon is in real trouble. The government is at its wit’s end. The challenges are only mounting. It is the SONARA meltdown that will finally take the government down if care is not taken.

Before long, civil servants and the military will not be receiving their salaries. The military, in particular, has stood solidly behind the government during its bad days. Will it still stand with the government now that its coffers are empty? The stress is obvious and for cause. The military might just as well jump ship.

Cameroon is in for tough times and only a resolution of the country’s multiple crises can help bring some stability to the country. Without an inclusive dialogue as advocated by the international community, Cameroon will continue to be caught in a turbulence of epic proportions and the stress will continue.

By Soter Tarh Agbaw-Ebai at the Global Headquarters in the UK, with contributions from Kingsley Betek and Bamba Gaoussou in Malabo

div> African Development Bank Group’s Annual Meetings are underway in Malabo and regional integration has taken the pride of place. Speaking during a press briefing as the Meetings opened, the AfDB President, Akinwumi Adesina, said that “If we get integration right, Africa can develop with dignity and confidence.”

The theme of this year’s meetings is ‘Regional Integration for Africa’s Economic Prosperity.” Regional integration gained momentum with the agreement on the African Continental Free Trade Area (AfCFTA) in March 2018 and is now at the threshold of its launch next month.

The AfCFTA will constitute the world’s largest free trade area, consolidating an integrated market of 1.3 billion consumers with a combined gross domestic product (GDP) of about $3.4 trillion. It is estimated that Africa’s GDP growth could reach 6% a year in a continent without borders (UNECA).

Answering questions from pan-African and international journalists, Adesina said that the Bank has invested around $1 billion through various initiatives, including cross border infrastructure, to move trade across African borders. Most has gone to small and medium enterprises – the engine of economic growth.

Cesar A. Mba Abogo, Equatorial Guinea’s Minister of Finance and Economic Planning, who co-hosted the press conference, spoke about the country’s significant efforts on the economic and infrastructure front, to connect markets in Central Africa. “It is a real privilege to host the Bank’s Annual Meetings… the Bank’s High 5s – are very much in line with our development strategy between now and 2025,” Abogo said, revealing that the country’s road networks both in Malabo and throughout the mainland, were better than across large parts of Africa.

In addition, Equatorial Guinea has invested in social housing and will continue to improve human capital, through capacity building and training programmes, while recognising the challenges presented by skill shortages. Equatorial Guinea had been selected as host of the Annual Meetings because of its economic potential and because Central Africa could benefit a great deal from regional integration, said Adesina. “We believe that the potential is immense, but the level of integration is not enough, ” he said. Regional integration is one of the Bank’s High 5s and is seen as pivotal to boosting Africa’s economic development.

The Bank is committed to accelerating Africa’s integration process. In the last five years the Bank has invested more than $15 billion in the construction of regional infrastructure in energy, transport and ICT. Some of these projects include a $93.8 million loan for the long-awaited Trans-Gambia bridge linking the Gambia and Senegal, resulting in a 50% cut in freight costs and improved transport, health and education services for 900,000 local people.

Earlier in the morning at a media breakfast, Adesina underscored the importance of regional integration in Africa. “If we get our integration right, Africa will be more competitive, will be able to create a massive amount of jobs and, more importantly, Africa can develop in dignity and confidence,” Adesina said.

The Annual Meetings will be an opportunity for experts, governments, businesses, civil society, think tanks and academia to share their candid assessments on regional integration efforts and dialogue on critical issues concerning Africa’s development.

By Kingsley Betek in Malabo