Cameroon

Economic Overview

The Republic of Cameroon is a pivotal economy in Central Africa, often referred to as "Africa in miniature" due to its diverse geography, culture, and economic base. Its economy is one of the most diversified in the Economic and Monetary Community of Central Africa (CEMAC), with contributions from agriculture, forestry, an oil sector, and a growing services industry. The country's strategic location and its major ports make it a natural gateway for its landlocked neighbors like Chad and the Central African Republic. The 2025-2026 outlook is for stable, moderate growth, supported by the non-oil sector and infrastructure investment, though the economy faces challenges related to governance and regional security spillovers.

GDP Size & Growth Trajectory

Cameroon's economy has shown resilience, with steady growth rates. Real GDP growth was estimated at 3.4% in 2023. The IMF forecasts this growth to accelerate to 4.3% in 2024 and 4.2% in 2025. This performance is underpinned by the non-oil sector, particularly services and agriculture, and public investment in infrastructure projects.

Sector Composition

• Services: This is the largest sector, contributing approximately 50% of GDP. It is driven by trade, transport, telecommunications, and financial services.
• Agriculture: This sector is a cornerstone of the economy, contributing around 17% of GDP but employing the majority of the population. Cameroon is a major producer of cocoa, coffee, bananas, cotton, and timber.
• Industry: The industrial sector accounts for about 26% of GDP. It includes an important oil sector, which has been a significant source of government revenue, though production from mature fields is declining. The manufacturing sub-sector is focused on agro-processing and light consumer goods.

Inflation Trends

Inflation has been a concern, driven by high food and import prices. After peaking, inflation is expected to moderate as global price pressures ease and domestic food production improves. The regional central bank's policies are aimed at containing these pressures.

Fiscal & Monetary Policy Stance

• Monetary Policy: As a member of CEMAC, Cameroon's monetary policy is managed by the Bank of Central African States (BEAC). The currency, the Central African CFA franc (XAF), is pegged to the Euro, providing a strong anchor for price stability. The BEAC has maintained a tight policy stance to combat regional inflation.
• Fiscal Policy: The government is focused on fiscal consolidation, working with the IMF to improve domestic revenue collection, rationalize spending, and reduce its reliance on oil revenues.

Debt Sustainability Indicators

Public debt is considered sustainable, but the risk of debt distress is moderate. Prudent management of public finances is crucial, particularly in the context of fluctuating oil revenues.

Table 1: Key Macroeconomic Indicators (2023-2026F)

Market Size & Demand Potential

Cameroon has a significant domestic market and serves as a key entry point for regional trade.

Population Size and Demographics

With a population of over 29 million, Cameroon is a sizeable market. It has a young demographic profile, with a median age of around 18 years, providing a large and growing labor force and consumer base.

Urbanization and Consumer Hubs

The country has two major urban centers that serve as its economic poles: Douala, the largest city and main port, is the undisputed commercial capital. Yaoundé is the political capital.

Consumer Spending & Market Access

Consumer spending is driven by the urban population. The formal retail sector is growing in Douala and Yaoundé, but the informal sector still dominates.

Business Environment

The government is working to improve the business environment, though significant challenges remain.

Ease of Doing Business & Regulatory Reforms

Cameroon ranks low on global ease of doing business indices. Investors often cite complex bureaucracy, corruption, and a challenging tax environment as hurdles. The Investment Promotion Agency (API) is the national body for facilitating investment, but navigating the administrative landscape can be difficult.

Company Registration Process

The process of starting a business involves multiple steps at the "Centres de Formalités de Création d'Entreprises" (CFCE). While these centers are designed to be one-stop-shops, the process can still be time-consuming.

Tax Regime

• Corporate Income Tax (CIT): The standard rate is 33%.
• Value Added Tax (VAT): The standard rate is 19.25%.

The investment code provides for incentives, such as tax exemptions, for projects in certain priority sectors and for small and medium-sized enterprises.

Political Stability & Governance

Cameroon has been characterized by exceptional political stability at the top, but this has been accompanied by significant internal tensions.

Political Environment

The country is a presidential republic. President Paul Biya has been in power since 1982, making him one of the longest-serving leaders in the world. This has provided a high degree of policy continuity. However, the country has been grappling with a serious security crisis in its Anglophone regions and faces threats from Boko Haram in its Far North region.

Rule of Law & Investor Protection

The legal system is a unique hybrid of French civil law and English common law. The country is a member of OHADA, which provides a common legal framework for business. However, the rule of law can be weak in practice, and corruption is a major concern.

Infrastructure Readiness

Infrastructure is a key focus for government investment, particularly to enhance its role as a regional logistics hub.

Transport and Logistics

• Port of Douala: This is the country's main port and the primary gateway for Chad and the Central African Republic. It is, however, known for congestion and inefficiencies.
• Port of Kribi: To address the limitations of Douala, Cameroon has built a new, modern deep-water port at Kribi. This port is a major strategic asset, designed to handle larger vessels and become a major transshipment hub for the region.
• Road and Rail: The road and rail networks connecting the ports to the interior and to neighboring countries are crucial for transit trade but are in need of significant upgrading.

Energy Sector

Cameroon has significant and largely untapped hydropower potential. The country also has an oil and gas sector, though production is maturing. Expanding electricity generation and improving grid reliability are key government priorities to support industrialization.

Sector-Specific Opportunities

1. Logistics and Infrastructure

The development of the Kribi deep-water port and its associated industrial zone is the single largest investment opportunity in the country. This creates vast opportunities in port services, warehousing, industrial real estate, and the development of road and rail corridors connecting Kribi to the hinterland.

2. Agribusiness and Timber

With its fertile land, Cameroon has strong potential in agriculture. Opportunities exist in modernizing the production and processing of cocoa, coffee, palm oil, and rubber. The sustainable management and local processing of its vast timber resources is another key area.

3. Digital Economy

As mobile penetration and internet access grow, there are opportunities in developing digital services, including FinTech and e-commerce, for the large domestic market.

4. Energy

The development of Cameroon's hydropower resources to provide reliable and affordable electricity is a major long-term opportunity for independent power producers.