Country Brief

Country Brief last updated October 2008

History                                                                           

At the end of World War I, the German protectorate over the Douala was divided between Britain and France. In December 1958, the French-administered region was granted self-government as the Republic of Cameroon. Full independence and UN membership were gained in 1960. Ahmadou Ahidjo became the country's first president.

In 1961 British Southern Cameroon was federated with the Republic of Cameroon, while British Northern Cameroon joined Nigeria. Mr. Ahidjo remained president until late 1982. He was succeeded by former Prime Minister Paul Biya, who in 1997 was sworn in as president and was re-elected in 2004 for another seven years. The current prime minister is Mr. Ephraim Inoni.

Politics

Cameroon is a constitutional republic. A 1996 constitutional amendment extended the presidential term to seven years, with a two-term limit. Another amendment this year removed any limitation to the presidential term. The president and bicameral legislature are popularly elected, with ministers appointed by the president and precluded from legislative office. Cameroon enjoys relative political stability, unlike most other countries in the turbulent Central African sub-region.

Economy

The economy is mainly agricultural. The principal commercial crops are cocoa, coffee, tobacco, cotton, and bananas. Petroleum products make up more than half of all exports. Timber is also a major export.

In the early 1980s Cameroon was one of Africa's economic success stories. However, the economic and policy weaknesses were exposed in 1985, when sharp declines in coffee, cocoa, and oil prices led to a 60 percent decline in the external terms of trade. These severe terms of trade shock combined with an over-valued exchange rate, fiscal crisis, and economic mismanagement resulted in prolonged economic stagnation and rapid accumulation of public debt. In January 1994, the CFA franc was devalued, but the government was slow to carry out necessary structural reforms that would have enabled a rapid recovery of the economy following the devaluation.

Development progress

With a stable macroeconomic framework and far-reaching structural and institutional reforms, real GDP growth was sustained around 4.7 percent per annum during 1995–2000, with inflation at around 3.1 percent. With the renewed growth, the incidence of poverty fell by an estimated 13 percentage points to about 40 percent of households, between 1996 and 2001. While poverty headcount has declined between 1996 and 2001, the findings of the ongoing household survey will be needed to assess poverty trends since 2001. At present, income inequities remain serious and social indicators have remained poor:

• Forty percent of households where the head of family has no education live in poverty, compared to 5 percent of households where the head of the family is college educated.
• The incidence of poverty is the highest for households headed by farmers (57 percent), and agricultural wage earners (50 percent). These two groups also make up the largest shares of the poor (70 percent are farmers and 11 percent are agricultural wage earners).
• Households in the rural “Hauts Plateaux” are twice as likely to be poor as households living in urban areas (other than Douala and Yaoundé).
• The survival rates (infant mortality, maternal mortality, and life expectancy) remain around the average for sub-Saharan Africa despite relatively better performance since the mid-1990s.
• The incidence of HIV/AIDS is high, with an infection rate of 5.5 percent in 2004, with higher rates for females (6.8 percent) than males. There is a strong nationwide effort to prevent the spread of the epidemic and bring infection rates down.

Challenges ahead

Cameroon ’s poverty reduction strategy (PRS), which was based on extensive consultations and a thorough poverty analysis, identifies development challenges. Recognizing that economic growth needs to be raised significantly in order to reach the MDGs, the PRSP sets the following priorities:

• Promote a stable macroeconomic framework
• Strengthen growth through economic diversification
• Empower the private sector as the main engine of growth and as a partner in social service delivery
• Develop basic infrastructure and natural resources in an environmentally sustainable manner
• Accelerate regional integration within the Economic and Monetary Community of Central Africa (CEMAC) framework
• Strengthen human resources, bolster the social sectors, and promote the integration of vulnerable groups into the economy
• Improve the institutional framework, administrative management, and governance.

World Bank assistance

As of September 1 st 2008, the World Bank active portfolio comprises eighteen main projects: 12 IDA & GEF financed projects, three Regional operations, and three Trust Fund projects. The commitment value of the portfolio is US$544 million equivalent; These 18 projects are in the following sectors:

For more information, visit Projects and Programs.

While waiting for a new PRSP, on which the next CAS in preparation (FY10-12) will be based, IDA and IFC have prepared an Interim Strategy Note (ISN) for FY07-08 that extends the FY04-06 CAS for two years. In addition to the above mentioned pillars, the ISN is guided by three principles: (a) addressing governance, including corruption; (b) managing for results; and (c) strengthening partnerships, alignment, and harmonization.

IFC has a regional office in Douala, and has played a key role in the petroleum sector, railway concessioning, electricity and in privatization.

MIGA is taking steps to strengthen its presence in Cameroon. There are no active guarantees in Cameroon, but some promising opportunities.

The World Bank works closely with Cameroon’s development partners through its country office in Yaoundé.

Contacts

Mrs. Mary Barton-Dock
Country Director
World Bank Street 1.792, No.186, Yaoundé, Cameroon
Ekoudou-Bastos
Tel. (237) 22-20-38-15/ 22-20-16-36
Fax: (237) 22-21-07-22
Email: mbarton@worldbank.org

Mr. Daniel Murphy
Senior Country Officer
World Bank Street 1.792, No.186, Yaoundé, Cameroon
Ekoudou-Bastos
Tel. (237) 22-20-38-15
Fax: (237) 22-21-07-22
Email: dmurphy@worldbank.org

Mr. Abdoulaye Seck
Sr. Country Economist
World Bank Street 1.792, No.186, Yaoundé, Cameroon
Ekoudou-Bastos
Tel. (237) 22-20-38-15
Fax: (237) 22-21-07-22
Email: aseck1@worldbank.org

Mrs. Katrina Sharkey
Sr. Operations Officer
1818 H Street NW, Washington DC 20433 USA
Tel: +1-202-473-6288
Fax: +1-202-473-5452
Email: ksharkey@worldbank.org

Mrs. Nellie Sew Kwan Kan
Country Program Assistant
1818 H Street NW
Washington , DC 20433 USA
Tel: +1-202-453-4756
Fax: +1-202-473-5452
Email: nsewkwankan@worldbank.org

Mrs. Mamma Alim Ahmed
Executive Assistant
World Bank Street 1.792, No.186, Yaoundé, Cameroon
Ekoudou-Bastos
Tel. (237) 22-20-38-15
Fax: (237) 22-21-07-22
Email: malimahmed@worldbank.org