Cameroon - The economy of the Federal Republic of Cameroon

R E ST R I C T E D Report No. AF-48b 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 The report may not be published nor may it be quoted as representing their views.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 ASSOCIkTION 1TH LE.OUNUMYX OF THE FEDERAL REPUBLIC OF CAMEROON November 3, 1966 Africa Department  CURRENCY EQUIVALENTS t T. S. 1 C FA1 24A 8-S CFAF 1 $ U. S. 0. 004 CF' A 1 i $ 'UI. ;r. 4 million %'...rtI. r I oill.on - .~.' millo  TA.ELE OF CONTENTS Page No. 'PAcOTr' TUT'A TVT A fCT c MrEnfA1Dv AlTn [ ur% TTTC!TrTETQ 1 _ vT I. INlnODUCr:IOnr T I T TfA fTTrnT^TTrIT 1 iii.RECNiT A.ONAJIC DLvOLOUr1In.3TO J Price and Wages Monetary Developments 5 Budgetary Developments since 1960/6i 6 Foreign Trade 8 Balance of Payments 9 IV. DEVaLOFM21'TS AND FROSPECTS FOR THE PRlNCP-ALL SBCTORS 11 Agriculture 11 Forestry 14 Fishing .14 Mining 15 Manuf.acturing 15 Building and Construction Industry 17 Transportation 17 3ducation 19 V. DEVELOYMEENT PLANNING 20 Second Five-Year Development Plan 21 YI. CVEALL FINANCIAL PROSPBCTS AND CREDITWORT1HNESS 23 Financing Investment 23 Private Savings-Investment 24 Public Savings Prospects 24 Balance of Payments Prospects 25 Publ:Lc Sector Capital Requirements over the P]an period 27 Creditworthiness 27 STATISTICAL APPENDIX This report is based on the findings of a mission to Cameroon in November- TDecemher 1965~. composed of Messrs. Billington, Pai.nians and van Nimmen of the Bank, Mr. Cohn of IFC, and Messrs. Springuel, Brochet and Kordik of the PAnkns Permqnent Mission in West Africa.  CAMEROON BASIC DATA Area: 183,380 square miles; 47,h95 square kilometers Population. (1965): 5,200,000 (of which about 15,000 non-Africans) Rate of growth (long term): 2.1% Density: 28.9 per sq.mile Political Status: East Cameroon independent January 1, 1960; West Cameroon October 1, 1961; Federation October 20, 1961. Member Bquatorial African Monetary Union and Franc Zone, Fquatorial African Economic and Customs Union; Associated member EEC. Gross Domestic Product (Est.1965/66): $680 million (subsistence 23%) Rate of growTth (6-year period): 6.5% (at current prices) Per capita: $130 Primary sector 39% Seco~ndry~' sector 1fi Transport, Trade, Services 7% Percent of GDP at Market Prices 1965 1960-1965 Gross investment 10.0 10.5 ax os ss a ving .7. 10. Balance of payments current --cunt defi;cit-331. Investment income payments net -1.3 -2.1 G(overnmient taxaton rinv)1nu (Fede-ration) 15 13  Average Annual Money, Credit and Prices (CFAF billion) November 1965 1961 - 1965 Total money supply 19.6 8.3% T1ee and savings deposits 4.4 58.5% Commercial bank credit to private sector 23.1 11.7% Rate of change in prices (cost of living index) 4.9% Public Sector Operations (CFAF billion) 1965/66 (Est.) Government, current receipts 27.1 Government current expenditures 25.5 Surplus/Deficit .1.6 Government capital expenditures 4.4 (last actual 1.9 in 1963/64) Public investment expenditures 6.o Total external assistance to public sector h.5 (excl.technical assistance of 2.0) External Public Debt (US$ million) 1966 (incl.public enterprises not incl.in the budget) Total debt (June 30,1966) 66.0 Total annual debt service .0 Debt service ratio 3 % of exports Balance of Parments (US$ million) 1965 Average annual increase 1961 - 1965 Total exports 140 9.7% Total imncorts 139 10.1% Net invisibles -24 41.7% Net current account balance -23 51.9% Ccmmoditv concentration of exDorts 1964 1960 Coffee. Cocoa. Aluminum 27%; 20%;15% 17%;30%l15% (Irrh'o fnrpi n PrY.hanag rpsqrvpq 196q 1960 TUS$ millinn (enrd rf yranvr) 39 19 T4F Peosqition 31i Thec-1965 Qt $15 million 25% incrrpqe in 1966 TNawings none  | | .1 '-\ i ': ' '\ ............ ~-e C ldt'^j',, I X ' ; fZ r-;- , de~~~~~~~~~~~~~~f'""AM I I Y - ,; ., vL- >ow~~~~~~~~~~~~~~~~~~71 L I < . o SUdo~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~O~ MAIDUGURI < % FEDERAL REPUBLIC o r |OF CAMEROOIN A r r t RICE Railways / zAF \UA _t F Under construction UOO o ,T N