Cameroon - Current economic position and prospects

FILE COP ' IReport No.AF-79a This report was prepared for use within the Bank and its affiliated organizations. They do not accept responsibility for its accuracy or completeness. The report may not be published nor may it be quoted as representing their views. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION CURRENT ECONOMIC POSITION AND PROSPECTS OF THE REPUBLIC OF CAMEROON August 8, 1968 Africa Department  CURRENCY EQUIVALENTS Currency Unit: CFA francs (CFAF) U.S. $1 = CFAF Z46.85 CFAF 100 = U. S. $0. 4051 CFAF 1, 000, 000 = U. S. $4, 051. 04  This report was prepared by Miessrz-.. Cornrlis JO A. Jansen (Ghief of Mission), Timothy Lankester and Hanms Peter Muth following a mission to Cameroon in May 19680  TABLE OF CONTENTS PageNo. BASIC DATA (i) SUNOARY AND CONCLUSIONS (iii) I0 BACKGROUND 1 II. RECENT ECONOMIC DEVELOPMENTS A. Origin and Expenditures on GDP 5 B. Fbreign Trade 7 C0 Sectoral Growth (i) Agriculture 10 (ii) Manufacturing Industry 13 (iii) Transportation 14 (iv) Power 16 III. THE-FINAnCIAI, SITUATION. A. Public Finance 18 B. Money, Credit, Prices, Wages 25 C0 Balance of Payments and Foreign Aid 27 IV. PROSPECTS FOR PRODUCTION AND CAPITAL FORIIATION A. Introduction 29 B. Development Plans 30 C0 Sectoral Policies (i) Agriculture 33 (ii) Manufacturing 36 (iii) Transportation 38 (iv) Power 39 (v) Education 40 D. Conclusion 40 V0 FINANCIAL PROSPECTS A. Introduction 42 B0 Public Finance 43 C0 Private Sector Savings e5 D. Foreign Resources 46 VI. STATISTICAL APPENDIX Map  BASIC DATA Area: 183, 24 square miles; 475,450 square kilometers Population (1968): 5v,49,000 (of which about 15,000 non-Africans) Rate of growth: 2.1% Density: 29.7 per sq. mile Political Status: East Cameroon independent January 1, 1960; West Cameroon October 1. 1961; Federation October 20, 1961. Member Equatorial African Monetary Union and Franc Zone, Eauatorial African Economic and Customs Union; Associated Member EEC. Gross Domnestic Product (Est. 1967/68): $860 million (subsistence 20%) Per capita: $157 Primary sector 37% Secondary sector 16% Transport, Trade, Services 47% Rate of growth, 1962/63 - 1966/67 7o3% (at current prices) 4i7% (at constant prices) Percent of GDP at Market Prices 1962/63 - 196364 1964/65 - 196 Gross investment 10.8 14.9 Gross savings 9e8 12.8 Net import of goods and services 10 2.1 Balance of payments current - account surplus o.6 -o.5 Investmnent income payments net 1.4 1.2 Government taxation revenue (hbede:l.ratin 15.1 16 .4  Average Armual Increase Money, Credit and Prices (CFAF billion) December 1967 196h - 1967 Total money supply 27.1 903% Quasi-money 2.9 1303% Commercial bank credit to private sector 3402 8 3% Rate of change in prices 3 - Public Sector Operations (CFAF billion) 1966/67 1 / (revised estimate Governient current receipts 3109 3609 Government current expenditures 3006 3208 Surplus/Deficit +103 +401 Government capital expenditures 308 306 Public investment expenditures 105 10.5 External Public Debt (US$ million) 1967 Total debt (including undisbursed) at December 31, 1967 133 Total debt service 306 Debt service ratio U02% of exports Balance of Payrments (US$ million) Average annual increase 1967 196)4 - 1967 Total exports 154 203% Total imports 186 1203% Current account deficit -45 t