Announcement of Cameroon to Revitalize Cocoa Industry on February 25, 1988

FOR IMMEDIATE RELEASE 4WorldBank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE NO. 88 / '48 Contact: Richard Kollodge (202) 477-4507 CAMEROON TO REVITALIZE COCOA INDUSTRY WASHINGTON, February 25, 1988 -- Cameroon will stimulate growth, exports and employment and offset declining oil revenues through a project designed to revitalize the country's cocoa industry. The World Bank has approved a loan of $103 million in support of the project. Cameroon, an oil exporter, faced a sharp economic downturn in 1986 as oil prices dropped. And oil revenues are expected to continue falling during the next decade as oil reserves are exhausted. To make up for lost revenues, the country is taking action to boost cocoa production--the country's second largest agricultural export. The project will help the government provide better incentives to cocoa producers, improve the operations of agencies that oversee production and reorganize the marketing system. These measures are expected to increase cocoa production by 38,000 tons a year by the year 2000. Current production is about 100,000 tons a year. Cocoa trees to be planted during the project will help reduce soil erosion. Efficient use of low-toxicity pesticides in cocoa plantations will be encouraged. The World Bank loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.72 percent, linked to the cost of the Bank's borrowings. It also carries an annual com- mitment charge of 0.75 percent on the undisbursed balances. Note: Money figures are in U.S. dollar equivalents.