LMII r, (IADVRESTRICTED

r'ILi A AW211Vol. 1

This report was prepared for use within the Bank and its affiliated organizations.Inq:y UV lu,i a:cept responmiuii..y for its accurucy or comp:eieness. ine report maynot be published nor may it be quoted as representing their views.

INTttDixrArTCnXA T BANK MVnU R :CrN VTRTOnT AXTD 7Ml T 1Tt (%rAVrxT11N~. ~%J1C. "AJL I±A% & A AN A -3A-A..' J.~JL V Jw~-.L1;A I

TtXjD?..DTA TnXTAT A T ThTrVrT)MVXjMT1r ASCI(n-`TA TITOLJ. A A..1L,%h.1A- A% ' A~A 'J-.A I - .AA~`1 A ~ AA.

CURRENT ECONOMIC SITUATION

AND PROSPECTS

OF 'CHE

REPUBLIC OF' CAMEROON

(in five volumes)

VOLUME I

MAIN REPORT

December 21:, 1970

Western Africa Department

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CURRENCY EQUIVALENTS

Currency Unit: CFA Franc (CFAF)

Before August 11, 1969:us$ 1.00 o CFAF 246.85CFAF 1,000 = US$ 4.o5

After August 11. 1969:UF$ 1.00 =CFAF 277.71GFAF lOOO= TTS$ 3.60

WEIGHTS AND MEASURES

1 Metric Ton (t) = 2.205 lbs.1 Kilogram (kg) = 2.2 lbs.1 Kilometer (km) = 0 62 milA1 Meter (m) = 3.28 feet

INTFR NATION/IL BANK FOR RECOIVSTR (CTION A ND DEVELOPIllENT

UXW 9 { n p vRESTRICTED

R71-4

FROM: The Secretary January 8, 1971

CAME]KOON)W

1. There is attached for information a copy each of volumes I arid V

of a report entdtled "Current Economic Situation and Prospects of th}e

Republic of Carteroon" (AW-21a), (in five volumes) dated December 21, 1970,

as follows:

Volume I - The Main Report

Volume V - Manufacturin.g Industry and Investment Finance

2. Volumes II (Agriculture), III (Forestry) and IV (Transport) will be

distributed at a later date.

Distribution:

Executive Directors and AlternatesPresidentPresident's CouncilExecutive Vice President, IFCVice President, IFCDepartment Heads, Bank and IFC

COMPOSITION OF WBE MISSION

This report is based on the findings of a mission whichvisited Cameroon in March and ALpril of 1970. The mission wascompFosed of the following members:

Cornelis J. Jansen Chief of MissionFredy R,.G. Holin EconomistAntoine Marot EconomistGuenther Weinschenck Agricultural Economist

(Consultant)Constant de Troyer Agronomist - Permanent Mission

in West AfricaJ.L. Gilles Lessard Forestrv Economist (Consultant)Christopher Lethbridge Specialist - Development Finance

Comnanies DenartmentHans 0. Schulte Transportation Economist -

Perrmmnpnt Mi9sion in West Africa

The report consists of the following volumes:I - M<) n, Ri?rt+.

II - AgricultureIIT Forest-IV - TransportV - -"Jr, A. J. 1.LjjQ and

Investment Finance

REPUBLIC OF CAMEROON

TABLE OF COClENTS Page No.

BASIC DATAN4APSIMMARY AND CONCLUSIONS

I INTRODUCTION ,...... ........... *4@....*.. 1

II RECENT ECONONIC DEVELOPMENTS ............ .... .. 4

A. Origin and expenditures on GD ?P...... I.B. Employment and wages...... ...... . * , . 9C. Honey, credit and inte0lest'rates .... ...... 10D. Balance of payments. ....... .... . .......... 12

Foreign rade .t..a....... .. . .... 13Foreipm aid. . ... O.... 16

ITT PUBLIC FTNANCE ........................................ 17

A= tThrrent hiudgetarv operations of thefederal and state governments................ 17

B. Pv.bl ic i. nve -txn ; . . = .=-. 21C. Financing of public investent . .23

IV IHE OUTLOOK FOR ECONOPIC DE\ELOPMT . . .25

A. Introduction .. .. ................. 25r. Sector ' deUOvelopCmentI s Jazd pros'. 2jcts..7..

1. Agriculture . ...... 27O .1--4r - -0

3. ning J.L .. .3......... ....£1 * V1 lU4.c±~, LjU.JL1 -uit ziuuoUA.Lj U.L±tA

investment finance.... 355. Trarisport .. ......6. Power .. . . ...... 39~7 T',Z -- .. -- 1. I. £ UiUL. t 4- U I.. . .. . .. .. .... . . . 4J-

8. Tourisrn ......ts....... ............. 45

IT T.V?¶I? ^ATo _ r A rAflflfllV,Vl nc-' lnv I r JiNuI tI rnU.r' ID. ........................... .. .. . -.

A. D- '1 4c ^^Ce 7; ,_ ,,48fl~"b_ _L...LL 4.JOJ........ c............ . 14.

B. Private Savings ...... ... 51C. Foreign Resources .. 5 .. ...

BASIC DATA

Area: 183,524 square miles; 475,450 square kilometers

Population (1970): 5.8 (of which about 15,000 non-Africans)

Rate of growth: 2.2%Densi tvy 12 per siaarre kIlometer

pt-i ; ±ia l statuis:.

East+ C' .vrna¶nr,'ri = iandependent <Toni. '-r-sir 1 1960i lr

West Cameroon - independent October 1, 1961;Fedea+vin =Octobesrs 20 1961.

Member Equatorial African Monetary Union andV-an '7^-- .^+ AP-c t ---- 4- -At

rs n v'nhls n, a + rU s vs4

1 A P U a a Vs i' nv _LJ u XWVIs I v A

Customs Union) Associated Member of theElj7. uropeL 'oLALu. I`y.

Gross Dom,,estic Product (Et" . 16/9 92 ,liU1IJ~~ IIA~~L..5.~ r %ALL,UuU I'Fl,L. u L75Ju/ u7J PY7C±_ iJLJ__.Lon*

(subsistence 20%)

Per capita: $1633*

Agriculture 35.9 percentAAf.n.uJPacturingj, con, ,_strcto 19'I -------

* ±.114.. aU U4. Lt~, 555.5 U.~ 54. U o.SJL ..L * C ~Fubl:ic utili-ties and transport 9.7 percentn4.h,:r sevc,s- 3''.2 percent

Rate of growth, -I1964/65 - 1968j69 6.9 percent (aLt 'cuV LALIUt;LLs

5.3 percent (at constant prices)

Percent of GDP at MHarket Prices

1964/65-1966/667 1967/68 r-I968/69

Gross investment 15.2 11L46

Gross savings 10.0 10.4

Net import of goodsand non-factor services 2.1 1.9

Current accouint deficit 5.2 4.3

Government currentrevenue (:L964/65 and

:L968/69) 15.6 16.9

* Based on excharnge rate prevailing prior to August 10. 1969. At thecurrently prevailing exchange rate, the per capita GDP would have--.,nrnlount.ed to TTS',il45.

2-

Averageannual

December December increaseMoney, Credit and ]?rices (CFAF billion) 1964 1969 1964-1969

Money 20.99 35.68 11.2%Quasi-money 2.014 4.47 17.0%Commercial bank credit to private

sector 26.77 41.97 9.14%Rate of changes in domestic prices about 2.5%

Public Sector Operations (CFAF billion) 1966/67 1967/68 1968/69 1969/70

Government current revenue 31.9 35.6 38.4 143.8Government current expenditures 30.6 33.4 34.1 38.5Current surplus 1.3 2.2 4.3 5. LGovernment capital expenditures 3.8 3.5 3.6 5.9Public invRstment exncnditures 11. 8 131 13.5 -

External Pub;li Debt (TTS$ million)

Total debt (i:ncluding uindisbulrsedat December 31, 1968 withaddi+ions through. Marc, 97 15t70) 183

Total debt service (1969) 7

BalarDeb+-PT -,---4- raTtio 3%- )K 1

.L)d~L..LJ.A~L~I U LJ 'Ul VC U~JY Iu.L..LJJ.'411J '- LJ.'Wu -. /

Ba-c of Pan4nt (US ,wli 16 196

lotdI exors of goodus 167J. 7 .7.L4

Total imports of goods 187.6 204.8Goods and services balance _-36. -11.6Foreign aid disbursements 3-1 35.5

Commodity concentration of exports 1964 1969

Coffee, Cocoa, Aluminium 26%, 19%, 14% 20%, 38%, 11%

Gross foreign exchange reserves 1964 (Dec.) 1970 (May)

US$ million 35.9 74.2

IMyF Position (US$ million) May 31, 1970

Quota, 19.0Drawing None

Based on. average exchange rate during the year.rates BefoeAu,-,-+ 11, 1,4:. $1. of = rCAF 4.8A 5c~Af.ter AUSU 11.j 1%/ * $-1.00 = CFA 27.7

After August 11, 1969: $1.00 = CFAF 277.71

FEDERAL R E P U BL I C - s| Of: CA4MEROON 0

| RAILWAY5 X Mo2FO~~~~~~~~~~~~- FRT- LAMY

,,~~~~-.X , eiti.g FORT-FOUREAU tMAAiDUGURi,(

<~~^Under construction .

______ Proljected +¢ CTO j

_______ Uricer preliminary study eOe

ROAI)S

_ o M~~Nain trunk, bituminized f )>RC

ajn u ~~~~~~~~~MOKOLO--s>\ /~

- ~ ~~~Other ma in A T T L MAOU A \ 4 0 INTERNATIONAL AIRPORT [ / \ YAGOUA\ 4

rD PORTS ) 1

............ .... SEAS0NIAL RIVER SERVICES (GONUT_.\

0, so 10,0 lf 2,00 \ j 2r2>

KlLCMETERS ~/ } | -

}'>> ~~~~~~~~~,~li4 (- 7TTON\

I i J / -AOUNDE;2E ~~~~~~~~ ~ ~~~~~~~CATTLEJ

BANNA L AED Gru oLEnu

4 5 ~~~~COFFli(E ) / FOUMEbAN _ i 5or0y (J °

pbU z z ~ ~ ~~~ FOUSSAM d<,

NK[:GSAMi teQ.of

j A v5 Ee P j, E L8AI COCOA o <

|- V A c7r ((ONG MBANG 2 v,7.|

el ILA B R 3°|COAo-AkouLQlmngo_\YfDlalA .| YE XTIBEDmAoZ- BA. f \

b"y~~~~ J;f, II AI TIMBER |TIMABER ( 6'oy of fFio y _ >~~~~~~~r ~ Lo-6 t \_<_ ~~~cS -SANGMNGELIMA\

COPRA ( IM3ER DJOUMiGUif OF C) GUIAIFA pn

| 0 ~~~~~REPIJBLIC of [frute.RFPnfqioono

I g EQUoW~~~~~TJONEAL G A B O N C O N G O (Brazzavsille) |

NCIVEMaB,-R 1970 IBRD 2342R

STflM4ARY AYD CONCLUSIONS

A. Introduction.

1. Cameroon is a large countr-j covering 475,000 squa:re kilometers(abolutii+ +Ith suvrf'ace, of' TFraince-) ria-Ii %i-r nl P million nha1i+nts

Considerable ecological diversity permits cultivation of a variety ofr'.v.c 't,, +,'n nnr,A,.r+ ^fee, C OC03., n.,lm oil, rbbei,r and i^nannn in

the south, and cotton, groundnuts, ri.ce and other cereals in the savannahrrr_ 11- i-llyexpliteareas in te nor-%Ih. T.i.e 1i"h plateau. beltwe these t-,X zones has good

grazing potential, while the southeast Iias larpe, not yet -klly e:3plcitedhard-wood forests. 9II±,aUs to good tI-vW conditlons, nutr-itionsgenerally at a satisfactory level. T'here are indications of oil, copper

… *.L~ _± - 4.--_ -riu 'lar-ge Uawu.U deuupos-Jlt uui as yet no deiUtLLL prsV of JWII± V.- lexploitation.

2. Cameroon celebrated tlis year the tenth anniversary of itsindependence, and the nint-h year of federation between French speakingEast Cameroon, with four-fifths of the population, and English speakingWiest Cameroon. This first decade of independence has seen strengtheningof national unity and gradual centralization of government functionsunder the firm direction of President Ahidjo. Since the Bassa andBarnileke insurrection was overcome in the mid sixties, the country hasbeen largely at peace, although the economic and social difficulties ofthese areas have not been solved. ffle government has this year receivedlarge popular support in an election in wihich the President was theunopposed candidate. The federal structure of the government and theexistence of two official languages are a burden on the country'sadministra+tion which however appears to be gaining slowly in effectiveness.

3. External political and economic relations are good. Cameroonparticipates in a number of regional African political and economicgroupings. Among these is UDEAC, a customs and economic union withCAR, Congc (B) and Gabon. UDEAC is a constructive attempt at regionalcooperaticn although practical results have thus far been modest.Cameroon has a common central bank together Twith the UDEAC members andChad a cornon currency, the CFA franc. The latter is fully convertiblewqith the French franc. Ties with France are particularly close. Franceis the source of substantial aid and technical assistance and of mostof the foreign talent and capital in Cameroon's private sector. SinceCameroon became an associated member of the European Common Market, shehas been increasing her trade with other members of the EEC and isfurthermore obtaining sizeable finaneial assistance through the EuroneCnDevelopmernt Fund.

B. Recent economic growth.

4. GDP groirth during the last five years on record is estimatedhy thecn m- SSion at 5.3 percent a year r in -ronl ftems Twrell anone the estimatedpopulation growth rate of 2.2 percent a year. During the last two-three

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years the growth rate has been even higher than this average, probablyaround 7 percent, chiefly due to favorable export prices. GDP per capitain 1968/69 was estimated at the equivalent of $164 but would be only$146 at the exchange rate prevailing since August 1969. Agricultureremains by far the most important productive sector of the economy.Roughly 80 percent of the population still live in rural areas and mostof them depend directly on some form¶ of agriculture for their livelihood.rhe proportion contributed to GDP by agriculture howiever declined from17 percent in 1959 to 36 percent in 1968/69. This relative decline ischiefly due to rapid industrial and commercial development which wasstir71mi at+re by gosverznment's lih hrn aittitnude towTards foreign nrivateinvestment. Completion of a number of import substitution projects and.a more bureaucratic government attitu1de vis A vis n1 S ivnt. investment

led to a marked drop in the number oi new projects in the private sectorin the late 1960's a+hougth indrials l production from e Asting capacitycontinued to increase rapidly.

5. Gross domestic capital formation is estimated at around 15percent of CDDP financed 1fWor n,n_r ,r +o,,.l tw=t; from g -0savings. The gap, one-third of capital formation was financed by ani nfl ow ofL for i..aid whi-ich1 7- 1 averaged $37 11"ALu-on a year in- diUsbursementsin the five years ending in 1969. Most of the aid was on grant orconcessionr termus^s; France, the EEC anrid more recently the DanIk Grou

have been the most important sources.

6. Over the last five years, there has been rapid expansion ofmoney supply and private credit, roughly at the same pace as the fastgrowth of the mode!M part of the economy. Domestic prices have howeverrisen at a fairly slow rate, about 2 percent a year.

7. Interest, rates remained low under the impact of a central bankdiscount rate of only 3.5 percent. Ihe rediscounting facilities of thecentral bzmk are the main factor determining the credit volume. Redis-counted credit amounted to 40 - 50 percent of total bank credit out-standing. More realistic interest rates would be in the interest ofCameroon's economic development although the monetary ties with othercountries limit Cameroon's freedom of action in this respect. At present,low0^ interest rates on bank deposits are encouraging enterprises to keeptheir liquid balances in Cameroon as lo01 as is compatible with re-discounting requirements and to borrow as much as possible from banksin Cameroon. For their part the banks concentrate on rediscountablecredit to larger, financially strong customers and pay little attentionto smaller, indigenous enterprises. The low interest rate structureand in particular the low deposit rates paid by the banks do not encourageprivate savings. Availability of loW interest credit to a limited numberof enterprises encourages a type of production which is more capitalintensive than warranted by the scarcity of production factors in.Cameroon and discourages the development of small scale industrial andagricultural enterprises.

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8. There is very little information on the balance of pavments. Themission estimates that the current account during the five years ending1968/69 had a deficit averni ng ls to 5 peri.ent nf GDP. Th_ mnnncause of this deficit is a large outflow of factor income payments,chIefly +hose of the foreitoT-.er entrp rises and the large entri atecommunity. These outflows appear largely unavoidable, in view of the

sccity~~~~JJ. of doe+i p4a+ve~ c~apit al, and flwnageria.J lJS W..'SSflA...

personnel. Realizing this, the Cameroon government pursues its long-ter ann al of' i.crae Ca,.rorto 0h eseawnt participavino.,.on innmna.el,4 r% ni,n mn no..

ment of private enterprises with moderation.

9. Foreign trade has expanded at a satisfactory rate owing toaavorable apJort prices uut .. su to increased teXAPUo v-0-Wmte. EAYUJrI-*

and imports :increased during the last three years at a yearly rate~~~~~~~~~_ I 5 -- _ __ __ - - , 1 _ - 1% t_ -__ _ A_ - L _ - A 4.1 o' perenuse. Expojr-ut anru _Lmprws are bouin 21 percent; of GLDr wluil

a slightly higher percentage for exports in recent years. Exportsof cash crops are on tne increase with tne exception Of banana exportswihich have continued to decline sharply. Increased exploitation ofCameroonis sizeable iorestry resources has led to rapidly increasingexports of tropical hardwoods. Aluminium exports declined slightlybecause of the establishment of domestic industries using aluminium.Import composition continued to shift in the direction of largerimports of raw materials, intermediate products and capital goods whichnow account for three-quarters of imports. This is in line with theincrease in industrial production and total capital formation. In-creased domestic production of foodstuffs and manufactured consumergoods has at the same time led to a lower proportion of these commoditiesin total imports.

C. Major development problems.

10. The most important factor influencing the course of economicevents during the 1970's will be the expected fast growth of totalpopulation, and the accelerating rural exodus and urbanization connectedwith it. Overwhelmingly rural only a decade ago, Cameroon is expectedto have an urban population of 34 percent of the total by 1980 and aneven larger proportion in following decades. This important fact ischanging the entire complexion of the country. Light population pressurehas helped Cameroon in establishing and maintaining political, socialand economic stability. In the next decade, these conditions mightdeteriorate seriously unless a large volume of urban employment iscreated and economic conditions in rural areas are improved. In theThird Five Year Plan (1971/2 - 1975/6), which is now under preparation,development or direct:Ly productive activities - agriculture. industry.trade and related activities - should therefore deserve highestDrioritv.

11- Me5nnhile fat too li+.tle is Lnon,m about motions and

characteristics of migrants to the cities. In order to establish whichtype of people move and for *havt reasons, a studyof the most importantmigration areas is needed. Such a study should help government indeter.mining by *N'hich neas'ros inte-rnal m agration could be influen.ced.

--L

12. A related matter is the need for family planning. Untilrecently policy mak:ers in Cameroon did not feel thna populaTion growthpresented serious economic and social problems. This position iscertainly not justified any longer. A start with family planningactivities, at least in the cities, is urgent. The recent appointmentof a minister of health and populationr is perhaps an indication thatgovernment is taking a more positive approach to the problem.

13. Tlhe rate of urban populationi growth is bound to be high evenif efforts to control migration and population growth were successful.The resulting employment problem cannot be fully solved during the1970's but to mitigate it and to add at the same time to the impetusof general economic growth policies are needed which will stimulaterapid growMth of labor intensive indus-try and agriculture and supportingactivities in other sectors. In the past, government has mainly reliedon the creation of a liberal investment climate to stimulate the privatesector. This policy has been successful in the early 196 0's, but recent;lyinvestor interest appears to have dropped. The need for a more aggressiveprivate sector policy which retains the liberal features of past policywill be discussed below.

14. In spite of the need to emphasize agricultural development andindustrialization, in the development plan, there is no doubt thatinfrastruc-ture investments should account, as they did in the 1960'sfor the largest proportion of public investment. The transport netwJorkis inadequate for existing traffic, slowing down production and exportgrowth. There is al so urgent need for investmeents in power, tele-communications, urban amenities and education facilities. However, sinceinfrastr11oti-thrR investmPnts inireolvp annnLintion of known tpnhnolosv thevare in many respects less complicated than the effective promotion ofinr11i fl5ri 1 anrl orY-dr-m -n-.n1 ag ccraldevnemen+. Th.e latt+.+r are not bh-rnuigtah+.bt

b: mere government decision but require changes in behavior, imowledgeaned motivation of large parts of the pcpnLantion The rniiistion how thesechanges are brought about has a different ans-wier in each country; theCanmeroon planners -will hat1rve to devrote a large part of their eneries t+ofind the approach which is appropriate for this country.

D. Sectoral problems and prospects.

15. Agriculture. The increase of agricultural production in thefive years ending i*~14E, O s asti.ated at+ 3 percent an l tYl-

Cash crop production grew close to 4 percent annually while the increaseof f-oo.4dsu-PP rdcAui.,4-4 - i n - y- ,+,,4-4,, te at 2.2 tbe growth rate

'.)J 4. d'U~ uU4 . ~U) V J L O .4 -C.JUfD1..J OVIJ- .~ O.. "..4,"5.'' .JL 4

of population. The latter estimate may be conservative, since thereIid.la Ueen-i a reltiV' Ua de.'.L.tI iL11 LUUU LU'.L XI1JJVrVi LJLUU UI I1U V 'Lr UU dU.±absnc

of production data makes a more accurate estimate impossible. Agriculturalaevelopienrt sufLers rorr lack of corncertuedu goveriLrienu actuic,n in project

preparation and implementation. At least partly this is due to the factthat under the constitution agricultural development is entrustued to the

states. Improved coordination of agricultural policy at the nationaln ___JncL±~ :~±~? Us rrJ__. - : ±_ _ ., 4±i,-iuui _-3 r I ±

ing of research activities for most crops and better coordination offhe nUweus±1 exter;A UeB13i oagelnLcies.

l6. Agriculvtural production is :Largely in the handa of small farmerswho produce a combination of cash and subsistence crops. The country'semployment problems suggest that continued emphasis on s-iimallholders inagriculture supplemented by labor, intensive large holdings should bean importanit feature of Cameroon's development strategy. Although casnincomes average only $90 per farmer, producer prices probably givesufficient incentlve to expand produc-tion if there is enougn credit andtechnical guidance. This would follow from experience with cocoa andcotton. However i: credit is not tied in with closely supervisedproductivity programs results are likely to be disappointing. For thisreason, the general agricultural credit institution contemplated in thesecond plan would appear inadvisable.

17. Emphasis on the development of food crops should be on yieldincrease by improved cultivation and Seeds and greater use of inputs.IRAT, the research organization entrusted with food crops, is not yetable to provide adequate guidance and should be requested to study thesematters more deeply and to improve its guidance of extension agencies.The proposed monopoly state company for the marketing of food cropsmay result in financial losses and therefore seems inadvisable; insteadit might be useful to work out a project for the improvement of foodstorage facilities. Such a project could provide an important improvementin marketing possibilities. Rice consuumption is still low but likelyto grow fast. In addition to the proposed rice scheme in the north,goveirnment should explore the feasibiLity of rice growing in the southof the country as well.

18. In order to keep the countrr self-sufficient in meat and raisethe incomes of cattle owners, government should investigate the use ofagricultural by-products (from cotton, oil palm, cocoa) for feed andimprove velterinary care. Exploration of coastal waters is recommendedto establish the potential of' marine fisheries. A credit scheme tomotorize srnall fishing craft should be considered; such a schemeshould however not be undertaken unless strong credit sunervision andtechnical guidance are ensured.

19. Export crops. The expected decline of world market prices ofvi rtull alr l expnrt crops adds to theneed to cUt production costs anto stimulate diversification. In spite of the diversification wihich hasalrenAdr beean a++;n-ined +tho rel; incee nr-v c'y.r- r',,offee osAn croncan

is still heavy ( 58% of oxportc). 'Govcrnurxont should furthermore, -nv.r itS contact;s -tih the i-Jvate -ect-r on ps-sib estat+ -^o'ne-oc

as a useful complement to the predominant smallholder type of cultivation.

2v A large pas-v of e cocoa acreage is cuveur -w th o tUwhose productivity is declining. The government's ambitious replantingscheme (0u,000 hna. in 0eO years: time) is not off to a good uuar ubecausieof insufficient preparation and organization. The reason why progressto date has been Esiow is the iack oI a pre-investment study whicnestablishes an economically and technically feasible scheme indicatingthe most suitalDe areas and the required organization oI the scheme.Government contemplates undertaking such a study.

21. Since ccoffee production is already larger than the quota underthe International Coffee Agreement, the future growth rate of productionshould not exceed the foreseeable rather slow growth rate of worldconsumption. Development action in this field should therefore aimprimarily at improving the economic results of coffee production oracreage presently planted to coffee or on a reduced acreage. For thispurpose a pre-investment study should be undertaken to determine whichareas planted to arabica coffee dese:rve rehabilitation. A generalprogram to obtain quality improvements on arabica as well as robustathrough better cultivation methods and increased use of inputs should alsobe studied.

22. Banana production is unlikely to rise again to its earlierlevel in view of umcertain market prospects and the difficulties ofconversion to better varieties. ProdJuction, mostly from the fairlysmall foreign owned plantations, -i-l:L probably rise only slightly abovethe present level.

23. Cameroon has good growing conditions for rubber; governmentshould investigate in consultation with private interests whether suitableplantation areas in East Cameroon can be identified. No furtherexpansion of oil palm estate acreage appears recommendable in view of-world markets prospects. However, the nossibilities for increasedsmalJholder production based on the processing and marketing facilities;of the existing estates and aimed at the domestic market should beinvestigated.

24. Increased forest exploitation is hampered by transportdifficuilti-es Prewin-tionn coutd be exPrnnre in a short time from thepresent level of 700,000 tons of logs to 1.5 million tons during thethird plan if +here were no transport bottleneck HowTever the lack orf'logging roads in the forest areas in southeast Cameroon, the lack ofrollir.g stckL- anr. +.he prv tnrac. conditin of the YnnimAP-Touala railTway

and technical and managerial deficiencies of the Douala port villeffective:Ly restrrin prod ctio n growth. Act-ual prroducti on during thethird plan is likely to remain below its potential level. The followinugpre-invesent stu-dies appear of prime -_ (i) forest Jnventorin the southeast of the country; (ii) studies of three major loggingroalUs in L4-aV (Be-'abo-YoLadowm, ±d.IJ U..U .JI ang, Vd.a',yo-

Moloudou); (iii) studies of improvements in the Douala port ands iVo L±LO11'.1. ports s h of DouLa.

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25. Industry. IndustriaL production increased by about 13 percent p.a.during the five yea;rs ending 196*J/69. The contribution to GDP rose duringthe decade from 6-7 percent to close to 13 percent. There is scope forcontinued industrial growth during the tlhird plan on the basis ofimport substitution of light consumer and intermediate products andincreased processing of domestic agricultural and forestry products forexport. However the recent drop in investor interest points to the needfor improvement in industrial policy and institutions. The recentestablishment of a separate Ministry for the Development of Commerceand Industry promises increased attention to these matters. The missioni'stentative recommendations for government action on industrial developmenitare as follows:

26. Government should determine the type and location of priorityindustries, degree of protection, role of state institutions in industrialfinancingeLnd degree of direct intervention in industrial projects.Priority should be given to labor intensive industries with high dornesticraw materials components. A special unit should be established to seekout and study industrial possibilities and establish and maintain contactwith the private sector in Cameroon End abroad. A critical review shouldbe made of the government's investment code in the light of pastexperience and simple criteria for approval under the code established.The system of price control also needs review. Where prices cannot beadequately supervised, controls should probably be abandoned, wherethey are retained, the controls should duly allow for production costfluctuations.

27. To alleviate the shortage of skilled and orofessional manoowerat all levels, technical and commercial training should be improved andexnanded. Moreover; produetion advisnrv services; purchasing andmarketing assistance, accounting a-dvicc and training facilities shouldbe provifderd to young Cnmernon industrilists A special unit to nrnvi Hthis advice should be set up. The industrial estate program needsreviww The mnost important nprts of the program (the nounah nnd Yaouneleestates) probably deserve priority but the need for estates in othercenters m,-y for some yers to com.e not hp urgent,

28. +ITr. e 'field of indcusti-al finanrce, duplicati!on of efforts of'the Bancque Cainerounaise de D6veloppement (BCD) and the Societe :ationaledtInvest+ osement '.'SNI) sho^iOA be a:LA. Gor nsidea+viovn Aold also be

given to separation of seasonal short-term operations of BCD from its1 r~~~~~~~~~~v~~~~~ c,...+ yin, Ar~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~1 r~~~~~~~~~r~~~~~rn~~~~~~~~v~~~~~ ~~~~~- c A~~~~~~~~~~~~~ + ~~~~~~~~~ Pr~~~~~~~~~ 44, h ~~~~~~~~~~~~~~~~~ ~~~~~hrv.il A a+,-,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~v, c,+.h ov~~~~~~~~~~~~~~~~~~~~~~~~~ +.h ~~~~~^ i A+In -

ability to appraise industrial projects and become more aggressive intheir len.ding poli4es, partcu'arly regarding the fosteing of Camerounoseentrepreneurship.

29. Transport. In the past, government has rightly devoted a largerproportion fL pUU.Lic in,vestm,1ent to transpor-t inrastructure than to anyother sector of the economy. Poles of economic activity are set wideapart and were poorly connectied at the time o indepe1dence1. Development

efforts in this sector during the last decade were aimed at the con-struction of a network serving the five main poles oI economicactivity: the coastal region with the port of Douala and Tiko-Victoriawhiere most of the industrial activity is located; the densely populate!d,rich agricultural Banileka area- the region around Yaounde, the capitalof Cameroon; the North which is also densely populated and has con-siderable agricultural potential; and finally the vast tropical forestarea of the South East with its huge timber resources. Cameroonmoreover serves as a transit country for landlocked Chad and to a lesserextent, the Central African Republic. Although a large part of thetransport infrastructure to serve the various regions now exists furthersubstantial investments are required. The most pressing need is-n:rea;e oZ- th*~ Douala port napac-it. Studies on a lonc-term solutionare underway. Both physical expansion and improvements in port organiza-tion will be required. The lack of transport links in the forest areain the southeast has been mentioned. A highway program other than inthe forest area of CFAF 10 billion has been identified. Host of theprojects are already under discussion with interested aid donors.Highway maintenance is improving owi:ng to establishment of a centralpool of maintenance equipment. However, in view of growing traffic,budgetary provisions should be increased. Government has thus farrefrained from regulating the activities of trucking companies. Aproposal to intro(duce such regulation should be carefully consideredsince it could lead to a stifling of competition Pmong road u3ars to taedetriment of the rest of the economv.

30. With regard to the rail-wny the most important task is improve-ment of the Douala-Yaounde connection. An economic sti,Av of the realign-ment of ilni c-nrcn-+AT n will be financ-id 28 nprt of the Bank rail-way project. Selected improvements rather than complete realignment

rl ' proaby -- ...- economi ---ton --- cof CFAF 5 billion for the last section of the Transcameroon railway hasbeen arranged, while a fuirther CFAF 8 billion are needed for infra-structure on other lines, rolling stock etc. Proposed investmentstotalling CFAF.- 27 billion for modernization a.d extension (Yaomnde-Yakadouma) of the existing netwqork would appear premature. Road

Mlera+< .es appear more --rsn hnth rpsdet--in f+e nt

work.

31. Power. Cameroon's rivers have sizeable hydro-electric potential.TM; i s 14as l+A t +' A- -+"lo,1;-1-er_ nea L2Aa oP the ATTT,^ATzt -1-um..;-;

| XJ.a.LJ LLoU UL.' QUL. LU VIVC .L QAJJ UI4 U X.d %.ALJU L4a U-11 £JUW'A`1 C l 4LJ. 1 V'A

factory wshich used imported bauxite.. This factory uses 80 percent ofelect cit pduein 'ar,eroorn. "le possibe dAoublng of itus capacitt.±t 1J.UL..L LI~ PjJ±UUULUt:UJ ±11 Lfe.L1I .. J± L V.LUJ UUUULLLgUJL U p UdJAL Uy

and rapid expansion of other demand (by 14 percent a year) have ledw a sizeable power program. The firsbt project, of whJich financinLg i9under consideration, aims at regularization of water flow which willpermit full use of ALUCAMI;s existing production cap.acity as well asmeeting increasing other electricity demand. Increasing capacity ofmajor transmissicn lines and establishment of small tnermal plants in

certain secondary centers is also under study. To cover electricityn -A -; +, 1 ,--,,, -,. , Y 4,-~ l,A,s v -sw nw+o A T-,,1k+! "l (' IrMMArrneeds in bhe, lonrw. r , two .majo. hyJd p^ects, Na^h -- ( .,Af,r)

and Song Loulou (125 MW), are being studied. The urgency of theseprojects depends to a lag exNto teqetinwehe "CT

does in fact double its generation capacity. The government will haveuo suduu c-arelully WIcIh s1eque nc ofJUCU LS t. p.L.L .il ladU tU

better spread of investment over time.

32. Education. Cameroon's schools are not yet able to meet theeconioyii-' Us .LUsi OU'rAInUed pU0p1eU. -Kpaai.6 lLlAL 111L VL UUt

executive functions in the public sector and tuo-thirds of those inthe pri-vate szcuor as well as numervous middle level positions. Inall sectors of the economy there is moreover a lack of skilled workers.Government has made strong efforts wt expand firsv of all pEUEar-yeducation wjhich has led to relatively high participation rates, viz.04 percent of the respective age group in East Cameroon and 57 percentin West Cameroon. Education expenditures amount to 19 percent ofgovernment current expenditures; if it were not for the contributionsmade by foreign technical assistance and missionary agencies theproportion would be even higher. In spite of these large expenditures,the output of the education system iEs disappointing in quality and number.As several, other African countries, Cameroon su.ffers from the short-comings of an imported education syst;em which provides a type of instruc-tion that is not attuned to the social and economic needs of the countryand which is furthermore characterized by high drop-out and repetitionrates. Considering the large total rnumber of pupils in the system,the annual number of secondary and higher level graduates is small andexpenses per graduate are consequently extremely high. A basic choiceis required in Cameroon's development strategy for education. Furtherincreases of participation rates woouLd become forbdciin--jy expellsivein view of the increasing size of the younger age groups, while the basicneeds of the econoyn for trained people would not be satisfied anybetter than at present. Education policv should aim at improvement of theefficiency of the system and, more specifically, at increased output ofsecondary and higher level rruiduiaten w,ith the technical cormercial andprol?oooioiaal qualifications which the country needs. Cameroon t s secondrinvelonment. nian 1906-1971 ) indicintes thnt rrovnrnmnent is awapre of t;heserecuirements and -intends to reform education. The Bank Group first eduacationnroiect aimeda2t fu4rthering the same- obnectives. In primry edurationthere are tso essential tasks, the construction of facili'ties for primaryte,cher t+ran, in"i i .id +t-he i- fnivm of c rrricl a t\ lt P-i +. m s l + I,vr.l

social and economic requirements. In secondary and technical educationthere should be expansion of scoo falite ar. als a4if refo of cur'icuw'la

'ihese general guidelines for reform and rationalization should be worked out

E.~ Overall growth prospects.

33 The Gov~.eirentts Third A v-e Year Plan (1971/72 - 1975/76) i

still under preparation, so that the government's assessment of prospects

- x ..

and intention in the development field are only very incompletely known.The missionis calculations indicate that economic growth during thefirst half of the 1970's is likely to be about 4 percent a year comparedwith the 6-7 percent real growth rates attained in the late 19 60's.The reason for the slowdown is a deceleration of export growth causedby the expected fall of average export prices, the lack of agriculturaland industrial projects and the effects of the transport bottlencek.The growth rate of total export value during the years 1969)/-70 -1975/76 is estimated by the mission at only 2 percent a year. However,large inves-tments under way or about to be undertaken in highway andrailroads, power generation, telecommunications, education and publicadministration will stimulate economic growth. Tentatively it isestimated by the mission that investment during the Third Plan periodcf CFAP 200 b-llion ( 720 rmrllion) -culd be required to achlevethe feasible economic growth rate as compared to actual investment in thesecond plan of an estimated CFAF lh0 billion ($504 million). In viewof heavy infrastructure requirements and flagging private interest abouthalf of the total investment - about CFAF 100 billion ($360 million) -would have to take place in the public sector as compared to an estimated40 percent during the Second Plan.

F. The financial outlook.

34. As far as the private sector is concerned, lack of financialmeans has thus far not been a serious constraint on development. Due tothe close connections with the business world in France and the easewith which funds can be transferred tc) and from Cameroon, investmentopportunities have generally been met by domestic and foreign privatefinance lIowever rlecently the private capitnl inflow has dropnnd makdngi-t less evident that any shortage of domestic private savings will bemet by3 suffjcient inflow from abroad. Th"is points ulp the earlier mentipnedneed for a more active industrial policy and good understanding betweenthe governnuemnt and the private sector I't also SO nderscores the need toconsider to what extent a raise in the interest rate structure couldhelp in mnhi I i ng a greater nmnount cvf nyi v.ate snvlngs.

3. 'The, feasibiliy nff an publllcr. sc!t-or Adevelropmernt. nrorananm of (.FAFA,>.~~~~~~~~~~_ .... ---- ----- -- I -- Z11- 1- r1 tD _ -- - -100 million during the third plan depends crucially on the government'sahill -ir +ty to a raiselpulitc svin.nc e jv- +.he r-on+.ttjin ton + lNlit deveop-I

ment finance from the agricultural stabilization funds and the publicenter-prises is f-or variou reasor. l-kel +to be limj<it.e +h. "-~IE

important factor is the prospects for increased budgetary savings. Theout.JlooK for an increase in buLAdgetVa ry su;s is howe.vrer not .

Recent rapid growth of revenues and budgetary savings was largely due tolIhe Li±'r,gL'CVt UJ. .LU1of eI1 U.LradUe andIU relate dU ac 4. IV± LU.t. PL.veriuel rviwuih

is likely to taper off on account of the expected fall in export pricesa, uer 1 970 and a concurrent slowUo-wr- in U-t-ivu isector a-UItVI Lt,y . C-rrent

expenditures meanwhile have been rising rapidly. If these trends inrevenues and expenditures are allowed to continue, budgetary sa-vings

during the Third Plan are likely to be very small or even negative..eue ut~mjineuz ac'uo U r v r LiCi -1-lo ___U.± -3 J.~I.U~ )iWLJrzveilUllUri a..UUV W I~Vurtrt Wiubt:: uendb- tilvluuu Uller eL' O r e ve s

essential part of the Third Plan. ThLe need to take such action isperhaps soe'what obscured by the -very fa.vorable revtumeu grolwth of recentyears and the rise in external reserves (from the equivalent of2 month3 of imports in 1965 to 4 months by llay 1970). Thisfinancial situation is in the mission's view of temporary nature.Basic improvements in taxation and expenditure policy are required tohelp finance economic growth in the 1.970's.

36. The mission is not equipped to give more than suggestions withregard to possible measures to increase revenue. As far as personalincome taxes are concerned, there is scope for lowering the currentlyrather high exemption limit, raising the progression in -the rate, andreducing the numerous tax exemptions. There is furthermore scope forraising the rate of company taxes in East Cameroon, which is at presentonly 25 percent (35 percent in WJest Cameroon). The generous fiscalexemptions under the investment code also need review. Sirmplified approvalprocedure under the code combined wvith lower fiscal benefits couldprobably result in more rapid revenue growth. Customs duties, the mostimportant element of government revenue, could yield more revenue byspeedier and more accurate collection. The mechanization. of customsadministration should help in this respect. Simplification of thetariff structure and discarding of the outdated "valeur mercuriale",for exports (the fixed price basis for determination of export duties)could also lead to more efficient collection and contribute to greaternet revenue from customs duties. Tentatively the mission suggests thatoverall revenue growth close to 5.5 percent a year during1 the early1.970's should be feasible if appropriate action is taken. This wouldbe higher than the mission's forecast of overall GDP growth rate ofsomewshat over h nercent a vear. Whil.e in the nast revenue has beenquite responsive to economic growth, this may not be the case in theT'hird Plan period, so that new fiscal measures may be required toachieve this revenue growth rate.

37. P-st current expenditure growth was to a very large extentdue to increased npersonnel e meneiitures The 1)7 nercent annnual growthin the number of public servants appears far in excess of government'sneeds for staff and t'herelfore etremely wasteful- A reduction inexpenditure growth from about 10 percent throughout the 1960's to abouth!.5 percent a year shou]ld be feasible withoult harm. to economic develon-ment or general administrative efficiency of the government. Tentatively

-i <ma~~1 tc7,n +.,r1 +}. +. 'kl e(yc+-nvrT ., c~+nPPIff -vnenrvvrvyi cl rN710 rv.it s sggested that budge_a Jran -sfing, p-ovsionsfogeraadministration, defense and justice wvhich now account for half of the

T+ I. S. y . I .4 AL. -U +hA .1V* . ' lLJ o .. 4 ± V..L L

the generous allowances of all types, which add 60 percent to governmentsCalay aa -yr,te.s, ne*ds to be4 VW-.U Restain LJ b1A 7t l.[ a ,U.;LUJ'

still allow sizeable growth (at least 6 percent a year) of those currentexerd.itures which a1r oitedL-- wwrd socal ad -or - - _ devejlIJopm b.4.

- xii -

38. If these tentative revenue and expenditure objectives suggestedby the mission were accomplished, public savings during the Third Planwould amount to CFAF 50 billion ($180 million) in public savings. Serviceon existing and estimated new external debt during the period is likelyto amount to CFAF :17 billion ($61 million). This would leave a netdomestic contribution of CFAF 33 billion ($119 million) to the financingof public investment during the third plan. While this is not a veryhigh proportion, determined fiscal action and austerity will be requiredto achieve this much. Taking into account that certain types of invest-ment are unlikely to obtain external project assistance and thereforewill have to be wholly financed with government funds, the mission fore-cast means that Government will probably not be able to meet all localexDenditures on aLL proJects that do obtain foreign aid. This meansthat foreign aid honors shouli! be prepared to cover part of local costs,particularly for p:rojects which do not have a high foreign exchange conten.t.

39. lExternal financing and creditworthiness. Cameroon's develop-ment polic-ies and efforts deserve increased support of external assistance.Tt is exneritRd that invtstmnnt in the first hqlf of the 1970's [l^-11remain ~ti 14 - 15 percent of GDP and that about one-third of investmentt.Til r neerd to hb fi nnnoGe .rcit.h extrrn.a mirsvo_qs Cn. the bhasl of theforegoing :it would appear that during the third five year plan a totalof' (F.F 67 bil i , (TTS$2Jlt rilnion) woulld be needed in t-he form ofdisbursement foreigyn resources. This amount compares with foreign aiddisbursemgenlts in the five years ending in 1969 of OF-A 4($166 million). The pipeline of fore:ign aid in early 1970 wasr v PAV OP 1,4114 on : A { d I7 _4 -1 -: A_ \ T -L _Dns. s -A to4 -P - oA ur 4 sl. -V- J.XIX ),J L}L.L_L_LVll \ A#) _ F4L_L_L_LJA11/ . .L v 'JiJl._L UV " -L VLU.L Su"'

financing of the second section of the Transcavmeroon railway and undis-bJursedL por-tlons of IrecentU .L)IrIX. a DjU ±.U.t JW±I *PLU l-U.L hidI JJVVfor n p ,

transport, agriculture and education projects currently under activedsLcusiLoJ adds up to perhaps another OFF 26-5 30 billionl ($90 - 108kmillion). The amount of funds still to be secured during the third plandepend o_n th 1e re, ' size of t, pipeLine at the ed of te l _ n _ i e L.Ui)u n,; Ui WId -sLLI su li L'GULbL:pLULLlle vWt UUiiGP LcUl Lot--..

the voliue of projects under implementation or fairly committed at thattim,e. MfaJor uncertainties are the propo.,-ed large in-vestments in Lthepower sector, investment needs of the Douala port, and transportationfacilities in the southeast of tne cou1ntry. If the assumption is madethat the p.peline att the end of the ThBird Plan should be as large as atits beginning, and that no significant reduction of foreign. reserves(equivalent of h months of imports in May 1970) is desirable, approximatielyanother CFiF 37 - 42 billion ($133 - 151 million) in project aid wouldneed to be secured during the third plan,. To make project commitmentsof t1his magnitude possible, strenuous efforts will be needed to identifyand prepare project,s particularly in. agriculture, forestry, roads,power and the ports.

1s.O. C'ameroon's external public debt has increased rapidly. Itamounted to $183 md.llion at the end of March 1970. The debt service ratiois likely to rise f'rom 3 percent in 1969 to 6.5 percent in 1975/76, taking

- xIII -

into account service on existing and estimated new public debt. Inmaking these projections it has been assumed that grant aid disbursementswill remain at a level of CFAF 5 billion a year or close to 40 percentof the total inflow, that Camneroon's traditional aid donors Trill continueto offer relatively favorable terms on official loans and that meanwhileCameroon, in order to avoid rapid exhaustion of its debt servicingcapac:ity, will keep supplier's credit financing within strict limits.The forecast debt service ratio is still not very high and a modestincrease in conventional debt would appear therefore justified.However in view of the country's poverty and modest growth prospects,Cameroon's needs for external capital are expected to extend over aconsiderable length of time. A continued rapid build-up of externaldebt should be avoided and it is therefore very desirable that mostforeign assistance wdould be extended on concessional terms.

1. The Feder-al Republic of -I u io- I Hr a o 2'.~wuruui covrer ari ar ua 14 ,Ivuv r-'iri

and spreads out over a distance of about 1200 km from the Atlantic Oceanini tlhe SoutSI tuoJ Lake TUcladU i}l tIhe NoUrt.Va rPopul ation iS estimated atabout 5.8 million and is growing at an approximate annual rate of 2.2%Population densitiezs are highest in the Bamijieke area, in the Nortnernprovinces and around Douala, the economic capital, and Yaounde, thefederal capital. A sparsely populated plateau in the middle of the countryhas slowed down the integration of the North in the Cameroonian economy.Cameroon is, on the whole, a poor country. Per capita GDP in 1968/69was estimated at $164 but would be only $145 at the exchange rate prevail-ing since August 1969. mTe deve4opment of the country mainly hinges onagriculture. The country has considerable ecological diversity whichpermits thie cultivation of a large variety of crops. The coastal andsouthern areas are covered with tropical rain forests with suitable conditionsfor .logging and the production of tree crops such as coffee, cocoa, paln oil,rubber, bananas. :n the North, near Lake Tchad, conditions are suitable forthe cultivation of cotton, groundnuts, rice and other cereals. Between thesetwo zones, the high plateau presents good grazing potential.

2. Thanks to good growing conditions the nutrition of the populationis not unfavorable and there is no prevalence of hunger. A systematicmineral prospection is currently taking place but no significant exploita-tion has besen carried out so far. Interesting oil, bauxite and copperindices give some hope for the future. The rivers have good hydropotentialbut little significance for navigation.

3. Ciameroon has been a Federal State since 1961; it comprises thieStates of East Cam(sroon and West Cameroon, formerly administered byFrance and the United Kingdom. The State of East Cameroon comprises 91%of the total land area and about 79% of the population. French and Eng:Lishare both official 'Languages. Cameroon with its one party system hasenJoyed political stability since 1964 - 65 when unrest in theBamileke part of the country (a hilly, densely populated area in thewestern part of East Cameroon) had subsided. The President, El HadJAkmadou Ahidjo, has been in power since independence. The very high turn-out of voters in a recent election in which Mr. Ahidio was the unopposedpresidential candidate has confirmed the stability of the regime. ThePresident has the initiative for legislative proposals including theformulation of the Federal budget which he submits for approval to theunicameral NationaL Assembly. The President also appoints the ministerialcabinet of the Federal and the Prime Ministers of the two State governments.The mnain concern of the President is to build a moderm. unified nation.which is politically and economically independent.

4. The federal structure of Cameroon entails a costly administra-+ive structu-re, Twhi r-h rPnreqAnts..q an heavnr hniv.c1n on thr noiint.rr The.existence of two official languages hampers communication between the twoparts of the cot JntaryT _r.d complicate-s te i su ' offi -ial documents.M'ore important, the twio states started out with different administrative,

legal and fiscal systems. Action to harmonize administration and taxesin. the two States has made some progress, although there are still manydiscrepancies. Uniform customs duties were introduced in 1966. Mean-while the function of the states appears to be on the decline.Federalization of police forces occurred in 1969/70 and public works isto be made a federal subject in the near future.

5. Cameroon is a member of the franc zone and its currency, theCPA franc is fully convertible with the French franc. It shares withGabon, Congo (Brazzaville), Chad and the Central African Republic, acommon Central Bank, the BCEAC,_/ zhiciL has its headquarter in Paris.The BCEAEC has an operations accolunt with the French treasury which iscredited with foreign exchange receipts and through which unlimitedconversion of the CFA franc into French francs is guaranteed. Inprinciple, this operations account can be overdrawn without any ceilingalthough provision is made for special remedial measures to be taken. insuch an event by the board of the BCEAEO (increase in the discountrate, reduction of rediscount ceilings). Thus far BCEAEC has maintainedan. overall positive balance for all members together and Cameroon'sparticular position wJas also positive. Close ties with France are alsoevident in the high level of French financial and technical assistancewhich has played a major role in the economic development of Cameroon.Links with France in. commerce, banking and industry also remain verystrong. The proportion of French expatriates in managerial andsupervisory positions in the private modern sector is still very highand most of the enterprises are owmed or controlled by French interests.Cameroon's associated membership in EEC is leading to more effectiveties writh other European countries. Aid from and exports to the rest ofthe EEC has groi-n significantlv in recent vears. The countrv is amember of CCAM (Organization of African States and Madagascar) and hasformed. in 1]966. a custom's uinion (NME.l'G)2/ with C.A. R G ongo (B),Gabon and Chad, which introduced a comnon outer tariff and aimed athaxnonization of innrestment A1 r4+ decins the membe; -rcnt,n es.

The union has not yet led to a very great increase of regional economicrelations,but hit+.i ocr+.tainl fr non+3 t+.l+aconstructiveeffrt. AQ

a result of internal. political stability, the government of Cameroonhas been. ableb to. concentrate itsactJ-.ti.eS nrl social econorid Arelop-

ment. Substantial progress has been made in the first decade of indepen--aence in th-e ofr+rIn of the infrast x.u.ture = reven a o there is

a sevrere bottlenech in transport and umsatisfied needs in power and

1/ Banque Centrale des etats de l'Afrique equatoriale et du Cameroun(Caen.Ura-l Bar.k oi I'e ouaut-S of Equator-ial IM-1ca ar,d CM-11eroon0)-1.

2/ uni±on wuul lunre etu IUrLu(4u.e de l'AriqUu u ljura-' (C-uusrtos arju

Economic Union of Central Africa). Chad withdrew from the Unionin. January 1969.

- 3 -

telecommunications - and in the expansion of education. Various achieve-mer.ts viere Lls o m.ade- nln e+or agrcMt- 0^l rsn^atrn 4ndustr

based chiefly on import substitution. The government has formulatedsuccessive developmi;enit plans; the second five y-ear plan which Twill cometo an end in 1970/71 is being implemented at a generally satisfactoryrate of compLetiori. in most sectors, including infrastructure, transpor-t,power, and education.. Agricultural production has been lagging, howrever,and Will probably nolt meet plan targets. Private sector development nasbeen stimula-ted by the establishment of a favorable investment climate.However, development of the manufacturing sector seems to be coming toa slow dow-n, to some extent because of increasing bureaucratic interferenceithn tne private sector which nas resulted in. some diecline olf investor

interest.

6. The most demanding needs of the economy during the coming decadewill be the modernization of agriculture and a concerted attack on the manysocial and economic problems posed by rapid urbanization. Until quiterecent.Ly Cameroon was an almost completely rural country winth fewT commerc:Laland service activities in rather small cities. Due to a marked ruralexodus the situation is rapidly changing and the problems of urban.unemployment as well as of deficient housing and urban amenities arebecoming more manifest. Although the migration should be stemmed to theextent possible, there can be no doubt that the cities will continue togrow rapidly. Expansion of the industrial sector should be one of themost important elements in Cameroon's development planning in the nextdecade. In view of the limitations of the domestic market, industrializa-tion. should be aimed not only at import substitution but also at theidentification of export possibilities. Effective government action totackle the difficult problems of modernization of agriculture andindustrialization will not be possible without improvements and much bettercoordination of Dublic aministration, increased efforts to identify projectsand carry out preinvestment studies whhere necessary width foreien technicalassistanc.e. a higher and more competent level of activity in projectpreparation and supervision, and finally improved relations writh the privatesector.

7. The task of formulating an.d implementing action. to achieve therequired acceleration in agricultural an.d induLstrial growth, is highlycomnlicated. At nresent. government aciministration appears not fullvgeared for this task although its importance is becoming better realisedb.y denisinn mnkpr.s. Im.portqnt develonment efforts in other areas,particularly infrastructure and education are also needed. Investmentin t.hese sectors h2s -mghtly claimed a major nart of nast oublic investmentand should continue to do so in thie future. Particularly transportrequlires urgent a+tenti on= Aq far as education is oonn.rned. the tr;ininrgof educated people at all levels is of the highest importance. Untilsuffic^ient Cam..eroonian-s with the reqrnired qualifications are avrailabi-qe;the economy wTill have to continue to rely to a large extent on expensive

f i , kls 1 n bus- ,, 1,, iness mar.agere-n ,ilhl p ub l ra-ln c2 +v'a+ research etc.c'i

The government is fully aware that this situation is unavoidable for thegoalme being C onid in spite of nO.;. koYbraL

goal of Cameroonizat;ion with moderationi.

:EI. RECENT ECOOOIvrC DEVELOPNENTS

A. Origin and expenditures on GDP

C. I:n recent years,Cameroon's economy has continued to growconsiderably faster than population. According zo mission calcuuabionsz=the growth rate of GDP in current Drices uiring the last five years onrecord (l9614/65 - 1!?68/69) amounted to 6.9 percent a year, compared toan estimated population growth rate of 2.2 percent a year. Growth atconstant prices dur'ing the same years amounted to a.) percent a year.The contribution to GDP by the main economic sectors is given in Table 1.

Table 1: GROSS DOMESTIC PRODUCT :BY INDUSTRIAL ORIGIN(at current market prices, CFAF billion)

1964/65 1965/66 1966/b7 19b'(bb 1968/69

Agriculture, livestock,forestry and fishery 70.3 68.7 71.0 76.4 81.8 35.9%

Manufacturing 16.2 18.6 20.8 23.9 28.6 12.6%

Construction 11.0 11.9 12.0 14.8 15.0 6.6%

Electricity, gas, water,firewood 6.1 6.5 6.9 7.5 8.6 3.8%

Transport, storage andcommunication 10.3 ].1.8 12.9 14.3 13.5 5.9%

Trade 33.3 3L.7 36.7 L0.L 43.5 19.1%

Public Administration2/ 19.7 20.9 22.5 24.4 26.L4 11.6%

Other services/ 6.8 8.3 9.0 9.6 10.2 h.5

CnP current marin+e prioeq 17), 2 1R1 J 191-8 2117 227.6 ino.o

Qnnual grot^.Th rate ~1;1 5=7% 10-2c 7-7%

Gnpn osat 966prices 176.9 185.6 191.8 205.9 217.8

Annual groith rate 4.9% 3.3% 7.4% 5.8%

Footnotes: see next. page.

a No provision made for imputed rent of goverrment buildings.h/ .4pparently noprc= sion include for i.puted.l.4 ren ofo.e±ccI

dwellingss.

Sources: Official national accounts, adjusted by mission.

1t/ Th rliiatatca consfr 97/8ad168/9aprnl VeA

estimate growth of agriculture, manmfacturing and trade. Takingthe 1966/'67 offic;ial national ac .U Uzts as a bencmulark year, datafor agriculture were adjusted by the mission on the basis of thepr;duction staIUtL1ics hiouwn ln VoluQne II - Agriculture. Adjust-ments in manufacturing data were made on the basis of statisticalinformati.on from the private sector. With regard to trade theassumption was made that its value added had increased at the samerate as total GD?. As a result of these obviously very tentativeadjustments, the GDP growth rate over the years 1964/65 - 1968/69is much lower than in tne official national accounts - 6.9 percenta year as against 9.5 percent in the official accounts. Theconstant price series is based on am assumed 2 percent annualdomestic price rise; as far as exports are concerned, constantvalues were computed by applying the 19b6/67 average f.o.b. pricesshow^n in the trade statistics to the export volumes of the otheryears under consideration.

- A -

9Tb.e fa-rora-le growth rate of recent is chiefly eto the performance of agriculture and manufacturing and a rise inthe vo†wnee of i +LDcomp--ed S.itS the prect);n

five years. Agriculture recovered from the effects of droughts andlow cocoa prices Thich depressed proucior. inv 1965,/6 a has sin

then grown at a rate of 6 percent a year. As will be shown later,Most of this inc:rease wa- s due to a sharp _ien e pr_s nf

most export crops, rather than to a very fast increase in production.TXLL sV'. ± 0. VU1 - -----. . . U ' -5- -

culture to GDP is slowly declining, amounting in 1969/70 to 35.9 per-ceritl of GD comJpared to about L4 percenti n .1 7. "ICe graLUUaL ULtans-

formation of the economy expressed by this shift is to a large extentuue U t;,,Ie r-apd growt-h Uo r,AaI,UCLauring prod-uctIon. t"uouuugn datashow many deficieancies, there can be little doubt about the relativelyrapiu growl OIf 0 tnis sector. The contribution to ,ur in ±yuo,>fu,which is estimated at 12.6 percent, expresses the advance industrial-ization has made since independence when the manufacturing sector wasstill very small, contributing perhaps 6-7 percent to GDP.

10. Owing to the diversification of its export sector, Cameroonis less susceptible than many other exporters of primary products toprice fluctuations on the world market. However, in recent years thecountry has benefited substantially from favorable price developmentsfor its major export commodities, particularly cocoa. The missionhas made a tentative calculation of the export price index. I/ Thisindicates that export prices have risen sharply in the three yearsending June 1969. Since import prices on average have risen much lessduring the same years 2/, there has been considerable improvement inthe terms of trade of Cameroon during these years. The following tablegives the mission's estimates of the direct terms of trade effect onGDP. AE: may be seen from the table, this effect accounts for asubstantial part, (21 percent) of GI)P growth. The indirect effect onGDP growrth has of course been much larger since the conditions of

/ By multiplication of annual export quantities of 15 major exportprodiLcts with the average 1966/67 f.o.b. prices.

/ It would be difficult to calculate an import price index on the basisof Camneroon's trade statistics. Statistical sources outside Camieroongive the following indications: The import price index for lessdeveloped areas calculated by the United Nations shows no change i:orthe years under consideration. The IMF export price index forindustrial Europe, from which Cameroon obtains most of its imports,shows very little change for the same period. However, the value

- 7-

the export sector largely determine the level of activity of most ofthe private modern sector. However, there is not sufficientatatistical ir.Pormation on inter-industry relations to permit furtheranalysis.

Table 2: TEmIUS OF TRADE EFFECT ON GDP

(in CFAF billion)

Extort Drice Import price Terms of GDP at currentindex index trade market prices,

(1966/67=100) AdjustedActual for terms

UJ. ~a 4U'

1965/66 90.0 99.0 90.9 181.4 18b.9

1966/67 100.0 100.0 100.0 191.8 191.3

1967/68 107.4 101.0 106.3 211.3 208.7

1968/69 119.3 102.0 117.0 227.6 220.2

Source: Mission estimates.

11. Statistics on the use of resources and the financing ofinvestment are even less reliable than those on the growth of production,chiefly because information on the expenditures of the private sector,particularlv on private consumption, savings and transfers abroad isvery limited. The data presented in Table 3 should therefore be seenas rough approximations only.

index for exports from France to countries of the franc zonev4rl! nn+ic nn nnrwiinl nr-i r- w; ri of' 1 - n rr'pnt. fiiin'i 1 Q6), -I QOR

France accounted during those years for 53 percent of Cameroon's

prices during 1964/65-1968/69 rose by 1 percent a year.

Table 3: A. ALLOCATION OF RESOURCES (IN PERCEIT OF GDP)

Average Average2.964/65 - 1966/67 196710oa - 1yo6/o

1. GJDP current market prices 100.0 100.0

2. Trade and non-factor services balance 2.1 1.9

3. Resources (1 + 2) = Uses (4 + 5) 102.1 101.9

4. Consumnption. 86.9 87.3

Public 16.7 16.3

P:rivate 70.2 71.0

5. Investment 15.2 1h.6

PTiblic 5.8 6.1

Private 9.4 8.6

]3. FINANCING OF INVES'll2ENT (IN PERCENT OF GDP)

1. Investment (gross domesticcapital formation) 15.2 14.6

2. Current account deficit 5.2 4.3

Net inflow foreimn funds 4.3 h.8

Tl'.p o f rspr-spmrp ° n-5

3= rGross nat,ionail savings 10.0 Mo.

Government saings 1.3 1.8

A.Yit %11 +Jlltnl C!t.--3h -flll^C n-<9}

uar Oficilta nstial unds 8.2 6.2

Sources: Of'ficial national accounts, adjusted by mission.

12. During the last turo years on record, the share of investment intotal resources declined slightly. P-ublic investment during those yearsrose slight:ly as a proportion of GDP, but private investment dropped.Slowdown of private investment appears to have continued and become evenmore marked in. 1969/70, although production in. most industrial enterprisescontinued to increase. As far as savings are concerned, a substantialincrease in public savings should be noted. Prices during those yearscontributed to a substantial increase in government savings. Particular.Lyimportant we)re the increases in the current savings of the agriculturalstabilization funds. It would appear however, that the private savingsrate has recently declined, more even than the relative decline in.privat1einvestmen.t.

13. Although the data in the tab:le are of a tentative nature, it isclear that the national savings rate in Cameroon is still at a quite lowlevel and that in snite of some increase in government savings, theexternal resource gap remains very large. We w.ill later discuss in. thereport whether government policies with regard to private sectorinitiative tzhich now? seems at a low ebb are sufficiently conducive todomestic resource mobilization.

B. ' and .ffages

l1. The recent gro.rth of the modern sector of the economy - manu-facturins.. construction. commerce. public utilities - has led to asubstantial rise in the number of salary and wage earners. As a proportionof the total population of -orlcing age their number is still small, aboutsix percent including government workers. However, from availableStatistics.it nnpears t.hat nmn1ovmPnt nroviided by the p . 0+0o

has been rising since 1962/63 at rates between 10 and 17 percent withhigher rate!3 prevail!ing in the early 1960' s. More recently the rate ofincrease has dropped sharply; for the larger industrial enterprisesaroiined in 11.q-v,rniiQ a.1t-nrnt1 the ni1mhrn" Cof T4?.ag eanI-.e t ros hJr ow1 nly )7 nperc,nt.

in 1969. In 1967/68 the total number of African wage earners in the entireecon orm was estim.ated at 11 r 5.,0 n The nimber of e_patriate salary and .Jaearners in -the same year was estimated at close to 7,000. While then-lm.pv' off' Mrra. tes is ! +.hiius relative'r lyn.1l thei1 -vr n--iccount for a veiKrlarge proportion of total salary payme.nts. For the year 1965/66, this,proportionn J,,o,,n.t-A to fl nov. prvn+ in t:he industrl ai,d - -o.e

4fci

enterprises covered in the industrial census held in that year. Ex-patri,ates+ 1 p+,rovide most+ oP +1.,o +0ne,nnnt sn ll to the m-Aor-r

in. - O - V.L.Q ' VA 1.L.AU AIIWL J 'J. I±Lt l*LOs11

4U I LhJ.&L I VAL~ *I -JAI..JS

sector. `'SO percent of managemrant- positions and 40 percent o2-LsupervYisory pOSi+viOI; i.n the m,odern.J se +of are he'dA 'oy e-f.-,triates.~~Ujj,;-,A P%JO_LVAkj.LLQ _L~~~~~~~~~~~~~~l LLLV4L

' .L. lJe gr.oVYJ Ivh. ldI 1of 0U~.11 t 6CUA s .ctor ha LIs LU a ct rn Acuy 1101 toUV Uthe

cities than could obtain gainful emplo;yment there. Estimates of totalune'ouptUy uei L. var. U±±IC.1d Udt4LLUJ illUUi 1 a tUvUUE iiWIwU.E U- WI.-

employment in 1968 of 42,000, mostly in Douala and Yaounde. However itseems likel,y at tiS figure iS an under.-estimation, since many unemployeddo not register.

- 10 -

16. IJage rates are governed by mLnimum wage regulations establishedUy uhv gove.L1Iumen'U. T.L;Se reM nved nccanged durng m.ost of the 190,'s.

In March 1969 there was a h percent. inorease in minimum wages, follolwedby a 3 percent ii Jt4 aprstt a4'.ctual wa

during the early 1960's also remained constant. The earlier mentionedinausulr&aL ceInsUs nUdicates a 4 peUceni U au i Ea ri in average remnuner-ationbetween 1962/63 and 1965/66. However this figure includes the salaries tloexpatriates wœhose saLaries reportedly increase at approximately the samerate as salaries in Europe, particularly France. The tentative conclusionwzould be that wages for African employees rose little if at all duringthat period. In the folloiing years (1965/66 - 1967/68) however, wJagesfor African workers went up by about 5 percent a year. In 1967/60average actual wages for all African. workers amounted to CFA.F 197,000per year ($800).

C. Money, Credit and Interest Rates

17. Money supply in Cameroon is still low in relation to GDP. How-ever, over the last five years the expansion of money supply and privatesector credit have been. much more rapid than overall GDP growith, growingroughly speaking at the same pace as the fast growing modern sector ofthe economy. Prices have meanwvhile risen by around 2 percent a year, amodest increase w1rhidh neecd not be entirely due to monetary f2ctors.Therefore, the rapid increase in the money supply seems to have beenchiieflv absorbed through increased monetization. The most interestingrecent monetary development in 1969 wias the continued improvement inthe net foreign assets position, which is related to high exportprices prevrailing recently. The same factor has contributed to asubstantial. improvement in the government's net position with the bankingsystem. Mconetary developments are summarized in the following table.

Table 4: IMiONJETARY DLVELLOP;-IE ITS(bili:Lon CFIA francs)

:1964 1965 1966 1967 1968 1969 Annualgrouith

September 30 rate1964-69)

Money suppl7 Ll 8 .l l8.9 21.61 23.b8 27. iL 29.35 1 0.I

% of GDP 10.L 10.2 11.3 11.3 11.9

Time deposits 3.11 2.00 2.37 2.76 3.20 h.27 6.6%

Domestic credit 12.79 14.36 19.31 25.45 26.81 27.72 16.7%

to Government - 83.03 - 10.06- 7.44 - 6.46 - 5.6 - 8.50 1.2%

to privatesector 20.s2 2h.h42 26.75 31.91 32.15 36.22 11.7%

Foreign. assets(net) 9.13 7.5LL 5.83 3.31 4.3h 6.67 -- 6.o0%

Sources: IFS and Cameroon. authorities

18. The volume of private sector credit is, more than in most othermonetarv svstems. determined bv the rediscounting facilities of the centralbank. Rediscounted credit (short amd medium terms) amounts to aboutLhO nercent of total bank credit outstmnding in September of each year andabout 50 percent by March wfhen credit reaches a seasonal peak. Therdomi nant. nrc-i ti on of the r-entrql hqnk i n the crech t system J q.^.e +c

the fact that bankcs are required to maintain the equivalent of 73 percentof th.eir short-+erm liahilities in cash claims on the Gmovernment andrediscountable assets. This provision greatly favors the extension. ofredisco-ntasble credit. Since only -ll established enterprises disposeof sufficie!nt cash and collateral to qualify for rediscounting, credittends to b: ch-nnlledA to-n 1-e --r. 1 1

-t --, usull frg av,+ ent r4

ti

19.7 JAM-, :shIort-term,, dliscount rate oil luhle centrc ' b.ak, an,ounts tLo3.5 percent for Government paper, cash crops and ex-port financing andli25- ".5-- percen.tu fLor U0ol,imeir-Cia b3ils. l.ese interest rates lave se'- '4.2 pLL Ufor.- aII -LI 0J i e a tu £plUed bi the

the pattern for a g:enerally low- interest rate str-ucture appli-ed by the

- 1.2 -

commercial banks. Tihe latter charge interest rates which are usually2 to 3 percent+ abo-rn +l r,.As c o,n+1 ra-te. Depo-it ra+es v rrespond-

ingly low and as a result there is little attraction for the generaltAO.L4jLJ., L±J 0.J_J <dL..L,VULLJV L ±1I_ JtLJ ..I"l, '.J-. OC2.AJU.LIr U. L 4. tA.L VI 1tJpubicinsslgacot.T pnn 4 ---ig acounts isfher

discouraged by the banks through the requirements of a CFAF 200,00011LLA.L11L,U1 Uc'"Mnc, beforeL cU.y Aners i.s payable.L. VI JVlle Wgoe CUInks

have found it profitable to concentrate on low risk, rediscountablecredit to large custo,Muers. On the oth-r haLd fi.nLcialy str-ongenterprises and individuals are encouraged by the low deposit rates tomain ain a iquio resc'urces outside Cameroon. to hUe exUen ' coumpatible ri'titItheir eligibility for rediscounting and to borrow as much as possiblefrom the banks in Cameroon.. This situation has become more acute inrecent years, in view of the global rise in interest rates. Duringmost of the period since 1956 the discount rate was at the same levelor only slightly below the discount rat;e i.n. trance but at present thediscrepancy is very wide (tne discoun.t rate in France at tne ena oI1969 was 8 percent). Generally speaking, the present interest ratestructure appears not con-ducive to the maximum mobilization of domesticresources. M4oreover, there is a serious danger of misallocation ofresources since the opportunity cost oi capital in.Cameroon is obviouslyhigher than the very low official interest rates. This would tend toencourage the privileged enterprises itho receive bankc credit to engagein.more capital intensive production than is warranted by the relativescarcity of factors of production in Cameroon.

D. Balance of_aMents

20.. Because of lack of reliable statistics, the balance of pay-ments is only knowmn in outline1 ! The most important features andrecent developments are the following. First, the foreign trade balancewhich showed a large deficit in 1967 became very favorable in the twofollowing years as a result of high export prices. In 1969, the tradesurplus amounted to CFAF 6.4 billion., about 3 percent of GDP. Second,the deficit on services account and particularly the outflowr of factorincome are large, leading to a sizeable current account deficit. Third,on capital account Camneroon continues to benefit from generous foreignfinancial assistance. Aid disbursements average L - 5 percent ofGDP per year. Fourth, public foreign debt is still small, because mostaid was and still is on a grant basis. The debt service ratio in 1969was only 3, percent. Fifth, the improvement of the trade balance hasled to recoverv of the net foreign assets nosition. Tn snite of theincreased short-term liabilities of the commercial banks, overall net

g/ The first attempt to establish a balance of payments was made forI°QS3 'ouit the resillts for sorme ite:ms nre still open to n_qestion.The mission has updated the balance of payments estimates of the

on the basis of official data on foreign trade, aid and reserves.'Pst4m4_t+s for 0other it4r,4s tr erruh hey Care lbasedd on.pat VaLLI( i rV10 L.L anLIAd o Vth.e .1 JL9roEicia balance Lof' pyet.

partial informat~ion and on the 19631 of-ficial balance of payments.

- 13 --

assets increased from the equivalent of '$9.3 million end 1967 to $329.9million end 1969. Cameroon's imputed share of gross assets of thecentral bankc amounted end 1969 to $8-.1, the equivalent of three monthsof imports.

Foreign. trade

21. Exports and imports both average about 21 percent of GDP witha slightly higher percentage for exports in recent years. As pointedout, the increase in export earnings of about 9 percent a year since1964 has chiefly been due to high world market prices. Volume increasesfor most of the export products have been more modest, and exports ofsome produc-ts actually declined as shown in the follow.ing table.

Tab:le 5: INCREASE IN EXPORT VOLUME. 196L/65 - 1968/69

Annual rate of increase Vnlue comnosition(av.L967/67 - 1968/69 over in 1968/69

av.IO60)/65 - 1966/67) (in % of totaql Pennrt-)

Cocoa beans - E.8S )) 33.5

Cocoa products 1.

Coffee . 20

A n m',X ,, *n rnt.c~A,ir,+c,1 = 7

Logs ''.7 6

Cottonr.6,.

an an a0s _ 25. 2

22 jl decli,-nein cocoa ben e ot a o,unae o ynr,-asedexports of cocoa by-products, chiefly cocoa butter. The expansion of coffeeexportsIL. was mostly Clue .ilncreased prOduction of arablca coffee. Since

exports are inoexcebs of Cameroon's quota under the International CoffeeAgreement of O6,WOO tons (basic quota) sales to countries outside theagreement have been on the rise. These sales have been on fairly highprices thanks to favorable overall market conditions. Aluminium exportsdeclined slightly owing to the establishment of domestic factories oflight aluminium products (kitchenware, roofing material etc). The brightestspot in the export sector is the rapid increase in exports of logs. In1969/70 however the increase in e.xports of this product Will be small, ifany, in view of the strained transport situation. Cotton exports continuedto grow steadily; a bumper crop -ill lead to a very high export growthrate in 1969/70. Although banana exports have dwindled, it appears thatexrports are stabiliE3ed and wIll perhaps slowly increase ag,ln.

- 14 -

23. FTe composition of imports has continued to showi a trend towardsa declining share of imports of food and other consumer goods in totalimport;s and relatively increasing imports of raw materials and investment,goocds. These developments are in line nsith the rapid growth during the196 0's of industrial production and the resulting substitution of importedconsumer goods writh local products.

Table 6: COIPOSITEON OF IIFORTS(In. percent of total imports)

1962-1964 1964/65-1966/67 1967/68-1968/69

Food 17 12 11

Other consumer goods 24 18 17

Raw materials and intermediates 40 48 50

lachinery and equipment 19 22 23

100 100 100

2h.. A favorab:Le development in foreign trade is the grop%ing divers:i-fication of export mnarkets. The proportion. of exports directed to Francedeclined during the 1960's from over half to one third of the total.Eonorts to other cou-ntries. nartieularlv the EEC and the rest of thefranc zoine -increased meanwhile. This diversification is related to theloss 9f nrefPerenti n1 entry to Frn-nch markets ncnd the simultn,eonulvimproved access to other European. markets arising from Cameroon'sassociat.ed mem.bership i.n the EEC. There has been far less change inthe origin. of imports. Imports from F'rance continue to account for moretharn half of the total. *.hTe result 'E that Ca IAmeroon' s trade surplus , -; t

the rest of the world has greatly increased from an annual mnount ofCFAF o.1 billion during 1962-64, to CF'AW 8.6 Ailv , Ad,ung 1A7/68 -

1968/69. At the same time however trade wqith France shifted from anannu,. l. 'h e.LA of I 0.0 bi Ulon to a deficit of (S'PA 8.0 bl ion.

- 15 -

Table 7: DIRECT:ION OF TPRDE

1962-64 196L!/6> - 1.966/67 1967/68 - 1968/69(in percent of total)

Export to:

France 52.0 41.0 3h.4C

Rest EEC ) 30.2 35.3

Rest frajnc zone ) 48.o 4.0 7.3

U.S.A. ) 11.2 8.2

Rest of the iiorld) _13.( 12j.h

Total e.xports 100.0 CO.O 100.0

Impor-ts fromn:

France 50.0 53.6 53.1

Rest EEC ) 16.4 12.9

Rest franc zone ) 50.0 5.6 8.6

U.S.A. ) 5.5 5l

Rest of the world) 1G.9 lb.0

Total imports 100.0 100.0 100.0

Foreign aid

25. Foreign aid has vital importamce for the financing of Cameroon'seconomic development. Annual disbursements during 1965-1969 amounted to$37 million, i.e. $7 per capita. Disbursements of foreign project andprogram aid financed 50 percent of 1966-68 public investment. The originof most aid funds is, as elsewhere in francophone Africa, France and theCommon Market. France accounts for half of annual disbursements and theCommon Market (European Development Fund (FED) and the European Invest-ment Bank (BEI)) for almost 30 percent. However, Bank and IDA disburse-ments are rapidly in.creasing following substantial commitments in recentyears. On a. commitment basis, the Banr Group has become the mostimportant scurce of aid to Cameroon. Terms of aid have hardened somewhat.The proportion of grant aid has declined from 85 percent of total disburse-ments in 196q to 6q nprcent in 1969. Most {onans (including TMA) arehowever on concessional terms. As pointed out before this has kept thede-ht serivicp hurrlen to a levo level.

26. Abhot.i hnl of Fres'-n'n-h- -id is . tihe for 'm of lwdt'nl aFrench technical assistance personnel numbers about 1000 persons overhalf of whom. are teachers or professors at Y aoVnde Un^iri. ty. Theremainder are working as technical advisers and sometimes as executivesin the public sector. A large number o:f agricu'tural specia':sts isworking in Cameroon on behalf of various French research organizations.

27. French project and program aid is provided through the FondsduAide et de Cooperation (rAC) lmostly- in the form -11r of gralts and by- theCaisse Centrale de Cooperation Economicue (CCCE) in the form of softloans. Annuial coumrumuitments by FAC nave gradually declined irom CFAF1.9 billion in the early 19 60's to a level of CFAF 1.1 - 1.2 billion inthe last few years. FAC:s commitments in tne last decade emphasized

transport (36 percent), agriculture (22 percent) and education and othersocial investment (2.4 percent). CCCE loans have been extended mainlyto public enterprises (railways, electricity, telecommunications).

-. 17 -

III. PUBLIC F7T.\UI]C_1/

28. The public sector in Cameroon consists of the federal govern-ment, the state governments of TTast and Welest Cameroon, local authorities,public enterprises (mainly in transpor-t, power, and development banling);and agricultural stabilization funds. As in other francophone countries,all financial transactions of the public sector are effected through thetreasury. The reserves of the treaswuy are mainly held in France in theform of French franLcs. The overall l.quidity position of the publicsector has improved greatly in recent years. Treasury reserves haverisen from CFAF 4.7 billion at the encd of 1968 to CFAF 13.1 billion onFebruary 28, 1970. To a large extent this increase was due to highcocoa prices which resulted in a sharp rise of the assets of the cocoastabilization fund. We will first discuss budgetary operations on currentaccount of the federal and state goveinments and then total public sectorinvestment and its financing.

A. Current budgetary operations of the federal andstate governments

29. The budget of the federal government is far more important thanthose of the two states. It accounts for over 70 percent of revenue and60 percent of current expenditures. The states are mainly responsiblefor local administration, agriculture, education and public w.Torks.Resnonsibilitv for police services was transferredr from the s;tates tothe federal government from 1969/70 onwards, while public works is tohp entrusted to tbhe federal government from 1970/71 onwards. Tn ordeIr trdischarge their responsibilities, the states have as their main source ofrevenuip all dlrect+. Taxes - hee rpniio. prrfri mote of +.l+.n1 epm!nAinnr rof East Cameroon, but only 37 percent (in 1968/69) of IWest Cameroonex +ieni- re-.The xrewmma is 4fin---ced b0ryA h-sb sidikes f,rm. th fe'derabudget. IWlith the recent transfer of responsibilities, the need for thesesubsicli es frnm +he federal government :1. sdecliningc A consolidated state-ment of budgetary developments for the three governments is given below:

v/ ~ll,' en, fic1 yras irts f.ro T,1 r 1 - T,o,, 1 0.*~.L 1.~ %CA-A VC.. ..LA. . ~I . Aj. 1 C'/ U -L4A' S

Talble 8: CONSOLIDATED FEDLARL AD FEDERATED BUDGE3TS(in CFOF billion)

1962/63 1963/64 1964/65 1965/66 1966/67 1967/68 1968/69 1969/70(Mission

(Actual) cstinate) (Budget)

Current revenue 20.24 25.37 27.24 29.70 31.89 35.57 38.38 43.84

Direct taxes 4.80 5.68 5.72 6.32 7.44 7.64 8.67 9.78

Indirect taxes 12.29 16.69 18.15 19.84 20.49 22.52 2L.0 28.07

Fees and dues .88 .9' 1.10 1.22 1.35 1.L7 1.h3 1.49

Non-fiscalrevenues 2.27 2.05 2.25 '.32 2.61 3.94 3.87 4.50

Current; exen -ditures 19.61 21.68 24.41 26.70 30.64 33.36 34.09 .8.45

Current surplus .63 3.69 2.83 3.00 1.25 2.21 4.29 5.39

Debt service .5'2 .47 .41 .41 .40 .53 .71 1.01

Balance .3.1 3.22 2.42 2.59 .85 1.68 3.58 4.38

Capital experi-Udiuures L.61± 2.1U c.7 Li.13) 3-77 35° 3.56 .914

Overall surplus/Deficit -1.'50 1.06 .35 -1.54 -2.92 -1.82 +0.02 -1.56

30. The above table reflects a substantial improvement in budgetaryperformance over the last few years. in 96oo/o6 the current surplus naddropped to a low of CFAF 1.25 billion, chiefly because of an upsurge incurrent expenditure. Tighter expenditure control and, more importantly,a sharp revenue rise associated with recent high export prices has led toa rising current surplus, estimated by the mission at CFAF 4.29 billionin 1968/69 ar.d budgeted at CFAF 5.39 billion, or just over 2 percent ofGDP, in 1969/70.

31. Current revenues have proven quite responsive to the groirthof the tax base. The ratio of current revenues to GDP rose steadily,from 15.6 percent in 1964/65 to 16.9 percent in 1968/69 and probablyto azlmost 18 percent in 1969/70. The expected increase in revenue in

- 19 -

1969/70 is partly dLue to the effects of the August 1969 devaluation ofthie CFA frcnufC, which has i.nci-easdU lth C.F Vd_Ue oj. t-aJVLnUZdiU ±iJV.u

The effect on revenue from import duties is obscured however by recentreductions in the duty on a number of' products. As far as export dutieSare concerned, government revenue proper did initially not increase sincethe '"valeur mercuriale" on which the duty on most products is determinedwas not raised until the beginning of 1970 (by 8.3 percent on averageover all agricultural exports). Under these circumstances most of theincrease in the CFAF value of exports arising from the devaluation wasinitially received by the agricultural stabilization funds. Sincethese keep their assets in the treasw7y, the overall liquidity positionof the public sector was favorably affected, but the government budgetitself only- to a lesser extent.

32. T'he mainstay of government revenue are still the indirecttaxes which account for around 60 percent of total revenue. Revenuefrom duties and taxes on imports is equivalent to about 36 percent ofthe c.i.f. value of imports with some tendency in this percentage todecline because of increasing imports by enterprises which benefit fromtax and duty privileges under the government's investment code. Theseimports now amount to 7.5 percent of total imports. Collection of importduties could be larger if customs procedures were less time consumingarid more accurate. The mechanization of customs accounts in the nearfuture should help speed up and increase collections.

33. The preponderance of indirect taxes and the very mildprogression of direct taxes have led to a tax system which is on thewhole regressive in nature. To the extent indirect taxes result in arise of the cost of economic activities, as is the case with the highlevel of road user charges (see volume IV. Transportation) they maymoreover have an unfavorable effect on economic development. The re-gressiveness of the tax system is enhanced by the quasi-fiscal role ofthe agricultural stabilization fT-nds which in faqvorable vetirs collecta large volume of funds and which in years of low world market priceshave avoided disbursement to farmers by lowering producer prices.Although at Cameroon's stage of development it is probably not wellpossible to reduce these regressive features rqnie1v. a faster build-up of direct tax revenue and a higher rate of progression in these seemsdesi nh1e and feasilble=

34. Direct taxes account for slightly over 20 percent of totalrevenue. Collection is in the hands of the state governments but thegoe.n.n is con-el.1-ati.xv to --r.fer the creto fctprtaxes in East Cameroon to the federal government. Tax rates in thet-o -tates have ntr- yet b ,, hamo T. In n4- fln, on

which accounts for -the bulk of commercial and industrial activity, thecorpo rJa x 5te Utax 1 .lII UA UJ Lr .1 ._LU VX v11 i IL.J 1U1 .1G £dUA

has been reduced fr,om 40 to 35 percent. In order to speed up and:ncrease com- pa-nVy taX collections, a 0. 75 percent turnover tax has been

introduced; payments of this tax are to be deducted fran total corporate

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tax obligations. ?ersonal income tax revenue, although still low, isincreasing rapidly. In East Cameroon, which accounts for most of therevenue on this tax, collection rose in 1968/69 by 34 percent to CFAF3.0 billion. In spite of these rather favorable developments, theincidence of personal income tax is stil:L very low. A married personwith two children who has an income of CFAF 3 million ($10,000), whichis a very high income in Cameroon, would pay only 10 percent of it asincome tax. Numerous exemptions make it likely that he will pay muchless.. The margina:L rate of taxation :is only 30 percent for the highest in-comes. / These facts indicate that a substantial increase in personalincome taxes should be feasible. However, even at current tax rates acertain further increase in direct tax revenue would be feasiblethrough speedier and more effective collection. To this, the ongoingmechanizat:ion of direct tax administration should contribute. In theyears to come, direct tax revenue should moreover rise as exemptionsgranted under the investment code expire.

35. Current expenditures have been increasing throughout the1960's at an average rate of about 10 nereent a vear. considerablvfaster than the growth of GDP. Expenditures for maintenance andmaterials :Lnreased1 at ahnnt the s2me pace as total eurrent exnendi-tures and so did expenditures for education and health. In the caseof e.ducation, government benefits fronm substantial support frnm FPrenGhtechnical assistance (which is not shown in the budget), and from thefact t.hat a lag part 1o ofs ther eduati4on system; is in privaTte hands. Animportant factor in the increase of current expenditures is the factthat the r e ofment .ployees between 1966 .Ad 1969 rose - v

12 percent a year; personnel expenditures account for about 50 percentof t.he '-'a' current exen-:ure. Gov'I--en .UV._"basei saCOZl C_arlesU1 wereU raised'.L UJ.t1~ UUU .L I.U±eij e nJJ1L IUL --- V±ULtLt ~. ~Lin 1969 for the first time since 1958 by 4 percent. Meanwhile howeveremoluments per personL em,sployed did rise bec-duse of pUrsI1Ution andincreased family and housing allowances. Allowrances account for almost40 percent of total emoluenets . In order to make d-uty oUutside the largecities more attractive government has recently abolished the salaryzones, which in. the past led to lower pay- for ermploe in rural areas.

36. wTle there has been an increase JI recUnt years in theactivities performed by government, particularly in education, theincrease in the nuwber of government empioyees appears to be farlarger than can be justified by such increase. In order to make moreroom within the ranks of government employees for young high schooland college graduates, government is contemplating a reduction of theretirement age by 5 years. Since this measure would result in a netincrease in the burden of personnel expenditure because of additionalpension payments and would probably lead to only marginal improvementof government efficiency, this measure does not seem desirable fromthe fiscal point of view.

1/ It was recently raised to 35 percent.

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B. Public investment

37. In the first two years of the second five year plan (1966/67 - 1970/71) public investment has been at a considerably higherlevel than during the first plan when it averaged CFAF 5.2 billionper year. Investment in the first two years of the second plan wasmore than double this amount, CFAF 11.8 and 13.1 billion. Theseamounts compare with an average public investment amount proposed inthe plan of CFAF 17 billion. The sectoral composition of investmentis not entirely in line with the one proposed in the plan, which hadrelatively heavier emphasis on investments in transport andcommunications and considerably less in education, public health andpublic administration. These facts are surrmarised in the followingtable.

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n_.-,'.- OI. eTT7DTTC T rF-* -'10 0OAAP/(7 AATh -1047/PA

(in CF.WF billion)

A B-y gove-rxuirient a.gency: 1966UU/6U _7f/J U/7 78L978671 IV9

Federation and states 3.77 3.5U 3.U 7.4 (UUUdt)J

Local authorities .74 .32

PWblic enterprises 1.25 2.05

Governrmfrknt ck-Velopmentbani- .59 .28

Foreign aid projects 5.41 6.98 7.05 7.61

Tota:L 11.76 13.13

Percentagedistribution

B. By economic sector: (in percent of total) in Plan

Studies 1.9 1.4 2.7

Agriculture 14.0 21.4 17.8

Hining, manufacturing, 2.5 10.5 4.6power and construction

Transport and 35.6 31.9 47.6comrmunications

Education 16.1. 9.0 9.1

Public health 6.3 8.2 4.4

Housing and urban 11.7 6.9 9.4devel.opment

Public administration 12.0 10.7 L.2

Total 100.0 100.0 1n00.

38. Data concerning 1968/69 and 1969/70 are not sufficient tonpernm.t ana-imsi otf' trends in publc :Lnvestment in these y ears. oTw-ever the total level of public inves-tment has further increased

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although not rapidLy. Capital expenditures by the federal and stategovernments are rising although the budgeted very large increase for1969/70 will probably not fully materialize.

C. Financin of public investment

39. rhe main sources for the finlancing of public investment arethe current surpluses of federal and state governments, public enter-prises and the agricultural stabilization funds of East Cameroon, anddisbursemenits of foreign aid. Most of the residual defioit is usuallycovered by drawdown of treasury reserves. The justification forconsiderinsy the eirernt. suirnTlses of the East CaTneroon agriculturalstabilization funds as part of public savings is that these fundsmmintain their resources with the t.-a -n. so that they are effectivelyavailable for public finance operations, even if no specific financingconm.mitment to this end is 1-ndertaken. The size of th-e current- sa ^nIof the agricultural stabilization fundls varies sharply from year toyear.* During l96h/'65 - 1966/67 these averaged FAF o.85 billio butin 1967/68 they had risen to CFAF 45$8 billion and in 1968/69 to CFAFif6 Ani_lli,on. Thlese v''ratons d etennine to a large extent whether) ..'7 LL.L-L-LJI. I LCLJ. .ULUL UUL_..It~U .±± ~ ue±. V~U~

the public sector as a whole is in surpltus or deficit. Financing ofpublic inve.stment in 1966/67 1 and 1967/,68 is set out in the followingtable.

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Table 10: FINNCA1EG OF FUiBLI:C INVv1'UxT1, 1i9066/67

AND 1967/68('in CFikF billion)

1966/67 1967/68

Public Investment 11.76 13.13

Financed by:

I. E'ublic Savings (current surplus o :)

Federal and state governments 1.25 2.21

Local authorities - _

Public enterprises: 1.86 1.98

Railways .56 .69

Electricite du Cameroon .5o .59

Cameroori Dev. Corp. .36 .30

Ports and IWaterways .44 .40

Agricultural stabilization funds .77 4.58

Public Savings 3.88 8.77

Debt service 1.77 1.86

Public savings less debt service 2.11 6.91

II. Local Development banks .59 .28

III. Foren aid disbursements 5.41 6.98

Overall sur-plus/deficit -3.65 +1.04

ho. The overall public sector deficit in 1966/67 (i.e. aftertaking into acco-wn.; ±UJ.t.Le1 aid d J J.t)ed to a sharp drop

in treasury reserves, but in the following year these reservesrecovere-d :omie-what. Altho-ugh iU1onLa:-tUion abo-ut public sectorinvestment and its financing during 1968/69 and 1969/70 is stillincomplete it is clear that the public sector as a whole has beenin surplus on a cash basis during those most recent years. This isshown by the sharp rise in treasury reserves which increased fronCFAF 8.1 billion in June 1968 to CFAF 13.1 billion in February 1970.

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IV. T1HE. OU'TLOOK FOR. BCO1TOMIC DEVELOPNIT

A. Introduction

41. T'he principal economic problems; of Cameroon are the backwardstage of agriculture, rapidly increas:Lng unemployment in the cities andthe constraint put on development by dleficiencies in the infrastructure,particularly transport. As far as human resources are concerned, thereis still a severe lack of professionals and skilled workers. huch progresshas been made in the Cameroonization of the civil service althoughforeign technical advice remains of vital impoortance. However themodern private sector is still largely managed by expatriates.

42. Agriculture has a central p'Lace in Cameroon's economy. Closeto 890 nerment of the nonlpultion still live4 in rnral areas and most ofthem depend on agriculture (including livestock, fisheries and forestry)for - live:Lihood. Agricuiltmure also provrides alm.ost 80 pereent of ePrnort.earnings. In spite of recent rapid growth of other economic sectors,and prospects for further growth absorption of workersao r%ii+A- ?1l-ture cannot solve the economic problem of the rural areas. The aimsof agric'ul- -al po'Lic-y shouLd be t1o lft ,,,.L n,1 4co.- to assure

food self-sufficiency for products for which Cameroon has a comparativead-Va; L-4- --- d4ve;^sify- an'4 increase a^r arnings and to stem, as ..Lchi~Li V ms 9 UVJ U_I!V .O_ ±1. U .:L±Pk U IZLL2"d r L &LU. V u~

as possible the rural exodus now in progress.

43. The migration of rural people to the towns is a factor which.LS Ut-UWIL"Ij, Wit- UV. IA1tz ±VrtJr1UoLV eLU1lUJ.I1JA dIIU $VfU .LC± k L-OU±eII1. 1.Le

growth rate of the urban population is currently around 7 percent ayear and is expected to continue to growx at approrurmately tsl"S rateduring the next decade. This compares with an overall populationgrowth rate of 2.2 percent a year and an expected population growthrate in rural areas of 0.6 percent a -year. As a result the urbanpopulation, wnich had grown from 0.8 million in 9yo3 to 1.3 millionin 1970, is expected to expand to 2.5 million people in 1980. Untilrecentl,y, CaneVQQr1 had few and only s3mall cities; the tWo largest,Douala and Yaounde, had about 275,COO and 175,000 inhabitants. In -the next cacade these numbers are expected to rise to respectively500,000 and over 300,000. The sharp increase in the urban populationhas already led to increased unemployment in spite of the fast growthof the modern sector during the 1960's. During the 1970's however thedimensions of the urban employment problem are likely to become farlarger.

44. The speed of the rural exodus is obviously linked to thesucciss of agricultural development efforts, since these may inducepeople to stay on the land and this enhances the importance of agricul-tural development. In order to keep the difference between rural andurban incomes as small as possible, and thus reduce as much as possible

- 26 -

the attraction of the cities, gove-nment saould moreover try to maintainagricultural prcducer prices at a level which is as high as is consistentwith fiscal prudence. Through their interventions in agricultural trad-ing, the agricultural stabilization funds obtain a large slice of valueadded of agriculture. As pointed out; in the chapter on public finance,this quasi-fiscal function of the stabilization funds adds to theregressive features of Cameroon's fiscal system. As other sources ofrevenue gain in importance, the fiscal function of the stabilizationfunds should be made less prominent to the benefit of farmers' incomes.

45. Since the rural exodus is so important for future develop-ment, a study of the reasons why people move is needed. Apart fromgeneral notions that the exodus is related to income differentials andthe greater availability of public amenities in the cities, little isknown about the motivation of migrants. To influence the process asmuch as possible it is necessary to have information on the mostimportant characteristics of migrants: their age, sex, family com-position, ethnic origin, education, occupation and income beforemigration, distance from the city before migration. As yet very littleis known about these matters and a thorough study of the most importantmigration areas is therefore desirable.

1h6. A further matter which demands attention is the need forfamily planning. The low level of population density and low degreeof urbanization. have un+til recentlyr created the onionin among mnnypolicy-makers that population growth (estimated at 2.2 percent ayear) does not pose aseri ous econom-ic problem.. Consequently, thegovernment, has not yet considered the formulation of an active

which are taking place do not justify this position any longer and,evide.tly,4it has becom-e very urgent 4t1-+ a s-tr4- is rade a i+h fw m l- r

planning activities, at least in the cities. The situation wouldbjeco.me even m,ore seri ous if a d&-op we.re 4to occu 4n 4the -e^9 severa~ ~V~11 WJJ.IZ ct~L± UO 1.4.ci. .k ~JU WL t~L'U ULtotA L&. L 41 U11Z- 11ZA.U aCiV~Y ..J. d.J

years in the still relatively high death rates as a result of gradualum.pvve,e;_s in-edca-cre part4cu'a-r-y preventi-4ve m,edica-l care.

As has occurred in many other less developed countries the resultco-uld be - shar 4rise inte ouato got4.1 bal_o vrhe

percent a year. In the previous economic report it was pointed outthat this would tend to lead to a lower savings ratio throughout theeconomy because of the increased number of dependents and increasedexpenditures on high capital-output ratio activities such as educationand public administration. The result would be perceptibly slowerincreases in GD?, to be snarea by mucn larger numbers. bucn a develop-ment would severely damage the economic prospects of the country andhence the complicated matter of establishing an effective controlprogram should be considered by the government as soon as possible.

1h7. Even if efforts to stem migfration were to be reasonablysuccessful, the rate of urban population growth is bound to be veryhigh. The resulting employment problem can probably not be fully

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solved during the 1970's. Even at best a rise in unemployment is likely.To mitigate the problem as much as possible and also to add to theimpetus for economic growth in generaL, it is of the greatest importancethat an effective industrIalization policy be worked out and implemented.Direct absorption of workers by industry would be supplemented by theincrease irL transpcrt, commerce, banking and other service activitiesgenerated by industrial development. In the past, government has mainlyrelied on the creation of a liberal investment climate to stimulateindustry. This policy has been successful in the early 1960's, butrecently investor interest appears to have dropped. For the larger tasknow at hand, a more aggressive industri-il policy which retains theliberal features of past policy appears needed. Some elements of such a.policy will be suggested later in this chapter.

4d8. Successful promotion of agricultural and industrial developmentposes much more complicated problems than. the expansion of infrastructureand even of education, at least formal education. The latter however areurgently necessary as preconditions for success in the exapansion of thedirectly productive activities. Development requirements of infrastruc-ture and education will also be discussed in the present chapter.

B. Sectoral developments and prospects

1. Agriculture

49. In spite of increased migration to the towns in the last decadestill about 80 nercent of the nopulation live in rural areas denendingfor their livelihood chiefly on agriculture, including livestock andfisheries. Although the contribution of this sector to GPM is d e]ining

it still is by far the largest sector of the economy and will remain sofor manny years to come. TNhe drivPersitv- of' limate nnad gographicconditions in Cameroon explains the large variety of agricultural productsthat are cultivated. However, two products, coffee and cocoa have a moredominant position accounting together for 58 percent of 1969 exports.

50. Agricultural production is largely in the hands of small farmerswho produce a combination of cash and subsistence crops on plots varyring,between one and three hectares. Production of the main export crops(coffe'Pe,a nr.nnn nnn,¶ + . .ns . .otto A Trl throug p +atn chanels butat producer prices established by the government. Competition betweenprivate tradAers usua'L.1y leads to an aet 'a pjro0dueAerL pFri-ce whichL is so.me-what higher than the official price. Traders also compete to some exten-tby ext-ending .muore favorab'le --- A-;+ on 4heir - --- I to fa .,.rs - - - -- 4--kW U±U.iJ U14 i CIVJJ v L. U ~ ~U. ~U . JLV UiLAI,.L.L OC_L- U'J ~C~A ,~ J CL-~ d. U./

marketing has only been successful in the case of arabica coffee. EstateuLU. VdUti_U1i Lli 12,ali u kiuut4LL VIVU ±I _.LLLLLUe''U I.AD AIU~ Our-AVD 1JV±. jJdHJIJ l UdOi

recently established wvith foreign including Bank group assistance, aforeign owned rubber equaue anu a few banana plantatlUns. In wesUCameroon, p:Lantation agriculture is more important because of the govern.-ment owned Cameroon Development Corporation (CAiv1EV) which covers about2h,00() hectares planted chiefly to rubber, oil palm and tea.

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51. Fyarmers incomes are lowf because of the small size of farms andc- LXUW Y.ULO Ar,LWJLULLUU1Vd±- -LLAiL±U iP £).LIL..LV -n-i use Ud ..Lgenerly :L--,-- yJ Ad-.Arcttu-a e-,- -1-r is -r - t- -'4.iv an Vs ofU L J1-

puts is low in many areas although progress has been made in recent years3n the use of fertilizers and other chemica-s in the case of cocoa,coffee and cotton. In 1968/69, average cash incomes of farmers werearound CFAF 25,000 ($90) per year, about nalf of tne income oI industrialworkers in the lowest paid category working 2,000 hours per year. Lowagricultur-al income is certainly stimulating migration to the towns,though it is not the only reason for the high migration rates. In spiteof the low agricultural income, prod.Lcer prices probably providesufficient incentive to farmers -to expand and intensify production, ifsufficient credit and technical guidance are provided. This was provenfor instance by the initial success of the recent cocoa spraying programand by the carefully supervised cotton production in the North.

52. There is not sufficient information to establish what hashappened irn recent years to the terms of trade of farmers, i.e. theratio of changes in prices paid and received by farmers. Prices paidby farmers may be estimated to have increased in line with -the generalprice increase over the last few years of about 2 percent a year.Prices received by farmers increased very little for coffee, remainedconstant for palm kernels,and declined slightly for groundnuts. Howeverin the case of cocoa there was a large increase in producer prices aftera very low level in 1965/66 and cotton producer prices also rose.Farmers' terms of trade may then be estimated to have deteriorateds:Lightly for most of the agricultural sector with the important exceptionof cocoa and cotton. The leewayr for grovernment to increase producerprices is small in the case of coffee where growers receive 85 percent ofthe f.o.b. price for arabica coffee and 75 Dercent of robusta. Cocoaproducers received only 41 percent of the extremely high 1968/69 f.o.b.price but since then nrodiucer prices hnve been raised and world mqarketprices declined. Probably producer prices will prove to be 55 - 60 per-nent of f..b. pric-es in 1969/70. Since cocoa is subrect to ver wildeprice fluctuations on the world market, the leeway to improve cocoaproducer nrices is nrobablv less thnn wonuld apne2r at first sight. fromthe disproportion in the treatment of cocoa and coffee producers. Theg!vPernment rightly wants to avoid a renpttition of t-.hp nhe ni-. pt n1 dpltionof the cocoa stabilization fund in 1965/66, when cocoa prices fell

deficiencies for cash crops. Lacking reliable information the mission~~ ovo.,o1,,nA 1 +1~-.4 --.. ,. o-, . v ,,

at the same rate as total population, i.e. 2.2 percent. Production datafor cash- crops sh-ow, 'large difrncsi-tert of- inceas -- sho-r.Ji S0i1 LLIJJ i1ZU -LcL U LJLL---L1%UCZ: .LU11 t WV U, UJ. LAU 4 C c WIVIO11

by the following figures. The overall increase in the volume ofagri.c L-U-dral production in Uthe fv yer ending J-lU± 30 197 is

estimated at about 3 percent per year.

- 29 -.

nRpnMMLT MF DLcnnTTrrMT(%A7 7TrTTTT=' T, Q(¶A,T PA OPTJ S.CHROVl'JV .L I~. .L J.V1JU\1,JAJ' _L I V WI1A~ '.d - - -~~

(average annual growth rate)

1958/1961 - 1966/69UUU 7ULu - 196U8/67

Cocoa 3.3, 2.8

Arabica coffee 12. 95 12.2%7

Robusta coffee 8.3%o 862

Cotton seed 9.1% 11 %

r,ubber 6.,8/J 4 .0

Palm kernels -2Oc,

Bananas -22.0O

Tobacco (wrapper) 2.1'

Ground.nuts 13 .9g

54t. Development of agriculture is hampered by a lack of acoordinated national policy at the federal level. At present, agricul-ture is the responsibility of the state governments who appearinsufficiently equipped to provide direction to this important sector.preparation of foreign aided projects is to a large extent perfonred bythe national planning ministrv, wnicn nowever disposes of insufficientmanpower for this crucial task. A larger number of highly qualifiedpersonnel competent to prepare projects or supervise project preparationby consultants is needed. The question furthermore arises whether itwould be possible to achieve a concentration of decision making in theagricultural field by the establishment of a federal ministry ofagriculture and livestock. which wouldl sunervise activities at the statelevel.

55. I'he outlook for agricultural production depends very much onthe exent. toi which anvPr.nrnn+. atioAn in Pric-iltuire can be made moreeffective. Apart f'rom improved projec:t preparation, an improvement ofniiqlit orf n-prsonne nnA. amiinmi-an+. of +th ex+en-o srinc is: needed.

Concentration of the numerous extension agencies, rather than a widerspread of extension actii ties is r.eeded toI a-oid coA.t.radictor .- ~A-cefrom different extension services at the village level. A certainreglona&l _pcaiavo of crops is' desirable, bu1 ,t th;A4 -a411only. if.L . W. a& cosstn ntoa p AoliLy inL Ltr t i being V fo.oLwed.

only if a consistent national policy i-n this respect is being followed.

- 30

56. ImDrovement of agricultural credit facilities is a furtherimportant need. Past experiences with agricultural credit to smallfarmers have not been successful. NTotable exceptions to this are thecocoa rehabilitation program under which spraying equipment was madeavailable on credit to cocoa graiers and the provisions of fertilizerto arabica coffee growers by the arabica cooperation as an advance inkind to farmers du M ng the growing season. On the basis of thisexperience it seems that procedures, by whlich agricultural credit isti ed in with closely supervised productivity nroarams or prnvided byefficient marketing organizations, are strongly preferable over ageneral agricuil t+I." creit instituion as haben propoe in thesecond plan.

Food crops

57. In spite of the low overall population density -o0l a:-.cuI-4ura- 1a.J. liSn tr e w 1., 1 nt 1LVJ n A, IU.±u.si U ULIU O,Le aLr suc.

as the Bamileke country and the North. The emphasis in the developmentof foodu crops sho-uLl lu bue on yield increasey L,,jLuv%d cu±l vLui

methods andi seeds and greater use of inputs. However IRAT, the researchorganization entiru-sted with develop-ment of food crops is not yet able toprovide adequate guidance in this field and should therefore be requestedo stuudy th-eSe maters Mrore deeply and at the samoe ntie improve its

contacts with the extension services. In the cotton area, CFDT fieldofficers should be instructed to provide advice to farmers on food crop,,in addition to cot-ton.

58. A monopo:ly state company for the marketing of food crops, ashas been proposed in Cameroon, may very well result in financial losses.Instead, state financed provision of adequate food storage facilitiesought to be considered. In the first place, storage of millet andsorghum in the Nor-th seems in need of improvement.

59. Both rice production and consumption are still low, respectively5,000 and :15,000 tons per year. As elsewhere in Africa, urbanization isexpected to lead to rapid growth of rice consumption. In addition to theproposed rice scheme in the North (5,000 ha) government should explorethe scope for groiLng rice in the vicinity of consumption centers. In thefirst place attention should be given to the possibility of growing riceunder rainfed conditions in the forest area in South and perhaps later toirrigated rice in suitable areas.

Livestock and fisheries

60. Nleat and fish consumption are fairly high in Cameroon. Tlecountry is self-sufficient in these products with the exception of importof some high quali-ty products. The number of cattle is large butproductivity of the herd is low due to poor nutrition and high mortality.In order to keep Cameroon self-sufficient in meat a more dynamic attitudeis necessary. Research in this area is still on a far too limited scale.

- 31 -

There are agricultural by-products in Canmeroon - from cotton, oil palm,cocoa - which could be used for fattering. Xiiproved veterinary carecould reduce mortality of calves.

61. Fish production, estimated at about 75,000 tons in 1967, isabout evenly divided between fresh and salt water fish. The prospectsfor maritime fish production are uncertain because of lack of knowledgeabout the resource base. Research on the potential of waters off theCameroon coast is therefore recommended, even although the resource isprobably not very rich. Distribution of frozen sea fish inside thecountry has begun and should be further developed. Sufficient icemaking capacity appears available in Douala. For the small fishermenalong the coast the establishnent of a credit scheme to motorize smallfishing craft ought to be cortsidered. Such a scheme should combinetechnical guidance with careful credit supervision. Improvement ofDouala's fishing port facilities needs to be studied.

62. The overpopulation of the Bami-eke country has caused thegovernment to undertake agricultural resettlement pro-ects in theYabassi-Bafang area where good lands are available. Although thepronipt is nrnoressng fairly well, a hardrlook should be tnken atcosts and benefits of the scheme before proposals to extend it aredeGided upmon. In the area around t;he partly comple+ed Transcam-e-roon-railway in the East of the country a regional agricultural developmentscheme would seem possible becaus of favr-able growing onditions inthe area for a number of crops and the improved transportation

Export crops

63. The j;ros"X:cts ior the - crt vector are ciouded b); zh-. vxcta-tion of declinlng prices, from the&generally h.igh 1969/70 levels, •orall mrajor products. Although the mission foresees a healthy overallgrowth in production volume of 4.8 percent a year during 1969/70 - 1975/76, the inc:Ueas in total export value wIlI probably be very small, 0.6percent a year in our calculation. This sombre forecast is mostly dueto the -unusuaily favrorable prices in the base year. Growth rates overthe years 1968/69 - 1975/76 are relatively more favorable: 4.1 percentfor export volume out 4h.9 percent for export value. As far as exportvalue is concerned -these calculations are based on tentative analysisby the Bank of world market prospects of the respective commodities;since these prospects are very hard to assess with any degree ofaccuracy, the calculations only indicate the broad trend of pricedevelopments.

64. Given the tendency of world market prices to decline, agricul-tural policies should aim first of all at reduction of production costsfor which there is still ample scope in the case of most products.Cameroon shomuld furthermore attempt to minimise the overall economiceffects of the fluctuations of market prices by stimulating further

- 32 -

diversification of export production. The reliance on two crops, coffeeand cocoa, is still very heavy. A third important orientation of agricl-tural policies is -mproved cooperatio.n wiLth the private sector,particular:iy as far as prospects for testate production are concerned.

65. Cocoa production should rlse by close to 7 percent a year dur;ng1969/70 - L97m576. For longer term development the most important actionto be undertaken for this product is the replanting of overage, lessproductive trees. A large replanting scheme aimed at replacing 360,000ha in 20 years' time with new trees was part of the second plan and wil;!probably be in the third plan. However progress has been small. A pre--investment study to assess the economic justification of the scheme, se:lectthe most suitable areas and propose an agricultural organization able tocope with this large scheme, has not been undertaken and largely accountsfor the slow progress. INo time should be lost in mounting such a study.

66. Prospects for coffee production also appear fairly good. Arate of ex?ort increase of 3.2 percent a year is forecast by the missionfor arabica and of 2.9 percent for robusta coffee. These increases takeaccount of some stock accumulation during the penrod, since current stocksappear very low. Elecently Cameroon has obtained favorable prices for iltsex-quota sales (the basic quota under the International Coffee Agreementis 60,ooo -tons) but if prices drop, as foreseen, revenues from sales tocountries outside the coffee agreement are likely to drop even more.Action in the field of coffee should be aimed at improving yields bygreater use of inputs, rehabilitation, tree pruning and replanting, ratherthan exnansion of acreage. In the ease of arabica. a studv to determinewhich areas deserve rehabilitation is recommended. A quality improvementSGheaiw for rohiistn- noT llnder connideratqon bhr TF('(L 21so appearsiu: t" :2 ieio 1'. t .4<.

67. Banana production has dropped dramatically in recent years.The missioo. doubAts whether it will be possible to expannd this crop toformer or even higher levels. Conversion to the sturdier, diseaser.esistant P arrietywo u.ild ho feasqnibh1e nas far na gronringr onndioHnnse

are concerned. However this variety requires either plantation manage-ment or tight superision in n a smalolder schmer* In.terest of inter-national banana growing concerns in a possible plantation scheme inrn -meroon seer.s dou14:4V1CVf- ' hile~ t.'he ;.ttuoa ard oca4 cndtin

for a successful smnall holder scheme are probably not fulfilled.±ei-1u4- - t -- I- 4-11- -IL, -- 'J -- d 1L-- . IU dA 4I .c±U kJ UILL '4 s JTentatiLve-l;y UIhe .-",DQssVo hasL fore-%_castU aL IIIVdeAt-cu 8r.L-VUl rate ofL UllH cro-pbased on the greatly reduced production level at the end of the 1960's.

ivost of the exuJorts would eU L, by the U xstn fl.dty r,,odest ±ureign

omned plantations, which do not have any sizeable expansion plans.

68. Rubber. Cameroon's growing conditions for rubber are favorable,but production has not been increasing rapidly. The foreignl -zned estatein East Cameroon has high costs and is poorly maintained. Productionfrom newvly planted trees by CuAuJEv in WtJest Cameroon will start to becomemore important in the later 1970's. Government should stucly with the

- 33 -

private sector whether suitable plantiation areas can be identified inEasu Camnercoon.

6X. GIoJonu1KIflU. In view of the uncertain worild market prospectsof this crop and the high transport cost from the growing areas in theNorth to the coast, expansion of this crop based on exports appearsinadvisable! while domestic demand for oils and fats will be covered byincreasing proauction of cottonseed oil and palm oil. A pre-investmentstudy of production and marketing costs for an edible groundnuts schemeis however recommended.

70. Ctotton has had remarkable success as a small holder crop underthe competent supervision and management of the C i,, nie~ ;: c2ji ae

r --til_ (CT) Fxrthar s-iansion of this crop oulc be: .cil ti-;K-id Il- 4.%m.nrr ohtrin&e hi& 'ho yiE_d fraci thU focd plotu -Iothat they could devote more of their acreage to cotton production.Tistruction by CFDT's competent field officers in the matter of foodcrops has already been recommended for this purpose. A study to deter-mnIne additional areas with cotton growing potential is also recommended.

71. Palm oil production will be boosted by the SOPA,E and CAiD EVestates, bcWth with Bank/IDA assistance. Both schemes are mainly aimedat satisfying domestic needs but an exportable surplus is foreseen.Further plantations are not recommended but the authorities shouldinvestigate the possibility of stimulating small holder interest, basedon the processing and marketing facilities of the existing plantationscheme.

72. T'ea is cultivated on two small plantations in Tlest Cameroon.Two modest sized tea projects are being studied by FED and the Bank.Since most of the production would havre to be exported and world marketprospects are not vary good, the economic justification of theseprojects is not yet clearly- estab}ished-

73. Among new exDort Droducts that should be investivatzd arae

avocados and cassava. 2uropean consuiption could increase if properpublicity is providred. Camernon has eycellen' growing conditions foravocados and should, establish early contacts with European importersto find n place in the mwnAket. - 1Tri l -srT fo"r foer might havemarketing possibilities in Europe which should be investigated.

2. ForestrY

74. Exploitation of Cameroon's rich forestry resources is stillrelatively small but gaini-g 4n m--portance -Production during the lastfive years has been growing at an annual rate of 8 percent a year and

1-l,rt < 91 pe-ener;t. -rAcio ,o &--l-o4t 4go about '70000 tons 4 a'-'S ' H~-.JLU A I ± UA.I- &V 'W Cd1LU1± U O. LI V d.UVUUL, J U%J,V%JVUUJLIC± ayear of which about, half is exported. Most of the exports are in thefor-n of logs, bu- euorts of smWr tmber aund ply±WoUo are on -1- i.ncrease.The combined value of these exports was 9.4 percent of total export

value in 1968/69. Prospects for forestry e:xploitation are good as faras the resource base, interest of the logging comnpcies, aci marketprospects for African hardwoods are concerned. The resource base wouldpermit sustained production of 2 million tons of logs. As far as loggingoperations and the demand for timber are concerned, production couldincrease at an annual rate of 15 percent in the period ending 1975/76and exports could more than double in value during this period. Howeverthe sector faces very serious transportation problems. In tUhe past fewyears, production has intermittently been. brought to a standstill byshortages of rolling stock of the railways and handling facilities inthe port of Douala. The implementation of projects now under considera-tion to improve the port of Douala and the capacity of the railway,should permit a certain expansion of production and exports but furtherinvestments in road or rail facilities in the forest area as well as along-term solution of the port problem will be required if forestryexploitation is to expand at the earlier mentioned rate of 15 percent ayear. It seems unlikely that under foreseeable conditions, productionand exports will expand more rapidly than. in the past. The loss inexport earrnngs, government revenue and employment resulting from thisis serious. Action to remove the transport bottleneck will be discussed.in the subsection on transport below.

3. Minine

7'1. MLining in. Cameroon is still unimportant but a number ofdeposits of potential importance have been found. Aerial prospectingis beinF n;zrried ou.t in a lnrge pnrt of the nonintrv with ranadiantechnical assistance. Government has asked UNDP assistance for follow-up operations onthe grohnd. Cormnerc:Ll prospecting is being carriredout by a number of foreign firms. Low grade bauxite deposits of overone billiV 7., tons hv beer dce t lMnm. Mra in the North.

If sufficient ore with satisfactory a:Lumina content is located,--.mercia"' exp-lo itat or. would- be freas:;bl- by the end of the 1970's or~~~ ~ ~ -L 1 V. L I 1J -L" v ±~~L 1J .1 L UI±~ ~_1 4.L VSU -L. I ~ W

later. The production volume that would be involved, if exploitation*snnre + - 1 p .- v 4e.a, ys---l A ' r, A robb - - Ir.o

less than two-three million tons a year. Part of the production couldb,e use-d by 4the Alu;:r, Tat e,1- E,-a .- th outh- whchno .- ,otL' L ~U uJy U±JC; h-1.LI.d.LAXCU1 n~~LU.J iear. -"~. .L Wi=I d~ ~UUll ~VY±L".U±± ±1UVt' U1Y.LjJ4.UQ

annually 200,000 tons of ..72 (possibly 400,000 tons after 1975)fror, -ULLLe. IL Ii ioUUU Lof= VwLU-K- -i of couLse reqauireadditional rolling stock for the railways and expanded port facilities.Ihere Is also prosp)eUbing in thne iNort- fUr copper deposits. A nauura'lgas field of an estimated 400 million cubic meters has been found nearDouala; tne feasilDitDy of a nitrogenous fertilizer factory Dased onthe gas is under consideration by the government. Oil prospecting inthe sedimentary basin of Douala has not yet led to important discoveries.A further mineral resource are the limes-bone deposits of 600,000 tonsnear Fguiil in the North. A cement f.actory of 46,000 tons capacity isunder cons-truction. A second cement fac-tory to supply South Cameroonmay be erected in the Douala area if sufficient limestcne deposits can belocated in the sedimentary basin of Douala. Systematic inventory of

- 35 -

locally available clay, kaolin and other raw materials should be madebefore a decision is taken on the establishment of the proposed diversi-fied ceramics factory to cover the needs of the UDEAC market.

4. Manufacturing industry and investment finance

76. The industrial sector consists mainly of the processing oflocal agricultural products and the production of consumer goods forthe local market in replacement of imports. The major exception is thealuminium smelting operation at Edea based on imported 1 uair.. Industryis concentrated in Douala which has the basic infrastructure facilitiesand is the center of the most populous market area. Shortages of suitableland and of skilled labor. combined with over-loaded transport and portfacilities, is, however, causing problems for expansion at Douala. Howeverthe regional industrial estates envisaged during the second plan have notyet been established. Ownership of industry is almost wholly expatriate.Cameroonian partici?ation in investment or management has so far beensmall.

77. Political stability and steady economic growth provided theclimate for rapid indlustriall develOprien1t du'ring the earlv and mid-1960's. Private sector initiative was helped by an investment codeproniding liberal tariff protection and fiscal b1ensefits anrd hy the

expanded market represented by UDEAC. Nearly half of all enterprises~~~~r- - -~r~ fl ~ 1~ .nhl i --nA i naccorderd qrk_il i*nncer.4ttremS 1-tder the LID-ACG treaty-,? uere estblredi

Cameroon.

78. Since 1967, however, there has been a slow-down in industrialfl¶O+ten+. .M',rr o-%f +the seco+ral 4n st-.en+ targets of the second pl

are unlikely to be achieved. During the first two years of the Plan(1966/o67 and 1967/168) marnufacturIng inrvesument totalling CFF 7.9 billionslightly exceeded expectations but, although official data :is not avail-abl e , it i-Ls ev-ueider,t 'uau there hlas s-i.r,ce been a ver-y shJ4arp decline. Onlyone new manufacturing enterprise was registered in 1968. Al-most allInvestment has come fromU the private sector as -was expected, by means ofexternal and local equity capital and through commercial bank credit.Despite th'e investIment slow-down, the value of manufacturing output forthe principal enterprises rose by 275 in 1969. This was due largely tothe increased utilisation of existing capacity and. for some major

i'c-xuc~to :urh as iOCQco, ;odx_t. :j:d '..J'ri u rC h _x:ort -;iCcos.

79. Some investment decline was to be expected, as the firststage of industrial growth was completed. The continued slow-down isdue mainly to the lack of an active official policy for industrialdevelopment, the official policy of 111iberalisme planifi:6" having provedinsufficient to maintain private sector momentum. As a result ofinefficient and inconsistent administration of the complicated InvestmentCode, cumbersome price controls, slow customs and port procedures, therehas been a deterioration in relations between the industrial sector andGovernment. Mounting unemployment, particularly in Douala and Yaounde is

- 36 -

meanwhile 'Leadinrg to increased pressure on the government for furtherintervention in industry at a tinie -when 1ack of pri-vate sector confidenceis already evident from the falling investment volume. New initiativesare urgentl-y nee-ded to iiMprQve unaersUtaziai.g Ol oUth sides.

80. The two government owned developent institutions, BanqueCamerounaise de Developpement (BCD) and Societe Nlationale d'Investissement(SNI) have played only a limited role in investment. BCD has beenhampered by a record of overdue loans and poor management whlich has causedCaisse Centrale, its main source of long-term finance, to curtailassistance to BCD since 1965. BCD has therefore concentrated on short-term crop financing, which accounted for over 7(, of its total lendingin the three years prior to J7ne 30, 1969. Industrial lending amounted to 48%of the medium and long term business in 1968/69 compared to 43' in 1967/68. Progress is hampered by lack of good projects and shortage ofexperienced investment officers.

81. SNI, which makes equity inviestments in industrial enterprises,has also had financial and managerial problems. It derives its resourcesmainly frcm Equipment Bonds (two year maturity, 3$5, interest) to whichbanks and others are required to subscribe. The responsibility forrepaying these bonds has recently been transferred from the Treasury toSNI itself, which has pu-t a further strain on its finances, alreadyaffected by heavy operating losses due to high expenses and a lowq yield.-inR portfcolio. UTp to March 1970. S3IEL had subscribed to shares in 27enterprises at a cost of CFAF 1.96 billion. SNI normally subscribes ina minoritg position but investments (notably in hotels) as a majoritypartner, frequently undertaken at the direction of the government, makeup an important Dart of its portfolio.

82. Thiere are onnortunities for' increased industrial growth inCameroon, although the second stage of industrialization will perhapsbe sl nm.7pr th n the ini+ial stag Arh-dtieinnl crnns.mer items could he

manufactured using Cameroon rawJ materials (hides, cotton, cocoa, fruit,Pt.n.). FirtThpr Tn,-nifactairin nnosqihil7itA.s include innreasedn textileand garments production, soluble coffee, expanded palm oil and soap andcornzetA CS pro11n±-Aon, fish meal and frmuit jiii-e. A fnrt.l zer plantand sack factory, both forecast for the second plan period are stillu-nder consdr1myation. 1stb1-. <Hmzn+. rof an nil re-fin amrt D+. Thaiinl,a ig _ al sounder consideration. The best growth possibilities probably lie in thefu-ther processing of the colntry' s abundant timber resources.* A largescale pulp and paper project, under consideration by the government, seems,,nl kenl yr to t,~lln be ecno- ,,bu the ,,- n,l, fon. .rnv+

4'i exportn ofA P1mnOO ,+ parice

board and local expansion of furniture and box manufacture, seems favorable.

83. Goverrnment officials indicated that the orientation of the TairdrlsL ±u±*or mi-rufact ur.1g wuiudU ULoUn cLf stres Ithe ioA IrIIL Ua' roLefp U± a

enterprise but that official policy would encourage export oriented, laborintensive industries, w-th increased, processulg of Camerooin raw materials.It would also stress the development of Cameroonian entrepreneurship. No

- 37 -

details of investment forecasts are ava-ilab2e for the third plan butmission estimates, based on known expansion possibilities in the mainsectors, inidicate that manufacturing investment (excluding the bauxite,oil refinery and puLp and paper projects) may be of the order of C;FAF13 - l billion compared to a target of CFAF 17.4 billion for thesecond plan. Such :Lnvestment would probably increase industrialemployment by about 7,000 workers by 1975/76, some 18 percent above thepresent level. Ear:Ly substantial improvements in transport and adoptionby the government of a clear and efficiently administered industrializa-tion policy might however lead to somewhat more favorable results.

84. Certain pointers for such a policy are clear. Private sectorcapital and initiative must play the major role in industrialization butgovernmnent ishould decide the type and location of industry to be accordedpriority status, the degree of protection to be given and the role ofstate institutions in industrial financing. The administrative machineryfor industrial development and particularly for the Investment Code mustbe overhauled. A special industrial promotion department should beestablished to build up as quickly as possible a pipeline of studied,feasible prOjects, Import dut-es on raw materials and industrial inter-meediate products wh-.ch nc-; are often h- Ther than desirable afrom an economaicpoint of viewJ and the cunlbersome price -ontrol proced;ures should berevie -ed0.

8'. In addition to the improvement of nhvsical facil]ities forindustry, (including a review of the industrial estate program) atrnining nronrnm irs needed to inease the qupnn1v7 of skillprl workers.Special attention and incentives should be devised to encouragef:m.eroonians to partilpate5n.t. ln i ndus+ria~l ownership and m~nnaem.nt=

To assist in financing increased Cameroonian participation, local saving;3for pmouc-tive invesL-ent must be increased. The co-mmercial banks highminimum savings account requirements and the low interest rates ondepos-its ar;D n.i-er-ing t1-. s o- ,ectle Central r 1 B-- c.t req,uirne

ments also tend to favor larger, well established enterprises at theexpMenea of -trhe C-l L am- erosn- -. entreprer.eur.

86. Br'D and S-A I should play a r.ore -Tportant role in n

financing. Their respective functions should be reviewed, particularly,U i ilt _ U W± IkZ l'~ UL±UL..L -±ULIr, C.LM. I~LUiULkL 14LIIU± .e V .L±)d±U

whether the seasona:L short term operations of BCD should be separated±Lromi -th ulonger terluL U1Vt:jALtL1U ULUveop, UjJent.U±O cre1di opUeal nI UtL UULo110

the qulestion of appropriate resources should be considered once theirrespec"Give r oles aret 'eue, r,,-sLneu.

*ianrlpo.rt

o7. Cameroon' s neavy reiiance on international trade and the iargedistances between the various centers of economic activity within thecountry account for the vital importance of adequate transport. Thegovernument is aware of this fact and has rightly given highest priority

- 38 -

to the improvement of the transport infrastructure in its public invest-ment planning. About 45 percent of total planned public investmentduring the second plan was to be devoted to all modes of transport.

88: Roads and railiqays are the main transport modes. There areabout 2l,500 Im of trunk and main roads of which about 1,270 km arepaved. rlMe railway system, consisting at; present of about h40 km ofrailway route, mainly serves the iNorth-South transport connection.It is being extended by another 335 ha. Inland river transport is un-important. Air transport is a useful complement to transport by roadand rail. The transport system is cenltered on Douala, the country'seconomic capital and major port.

89. While improvements in all sub-Sectors of the transport systemare needed. two majior problems can be identified. First, the Doualaport capacity has become insufficient to handle the country's growinginternational trade. Tmnrovement of port capacity has highest priorityamong transport projects. The Bank is considering a small port projectwhich will alleviate the most nressi ng nroblems. Studies on a long-ternsolution are under way. Meanwhile substantial improvements should benossihle Otl the baEi9 of' existirf f'_-i 17 hes hv rqtionnli7zstion ofmanagement and improved cooperation between port authorities, customsofficials and the private sector. The second manor proble-m is theearlier mentioned deficiency of transport links in the forestry area inthe South East of t-he couintr. There are a number of alternative roadand rail solutions for this problem which are now being studied under

Ta I -vrDP4 -nmcedy regional tr su:.-vy --- n- nf _, -il -o,l+ionia U4Uj± ~ .J.~a .A~la %A 104 LU. U .dLA VS VJ . S.V '11 - fJJ.L.LJAJSL

found to be economic,a certain amount of road construction will beneesr t_ peA 4- A o4- 4 4- _4 ' 4'*1 4.1- - 1 - 4' P 1'4' , ,1-n 1114. . LxpZA L Jud U.Lon; u1n1u.L. UI1U ra d....LA lSJOA -L.C

Identification of' important road projects in the area is thus a firstnecII sit-U. T111e r,I.LUL has certUa4ilI tUntaVtl iLdea oni UI±L±s IIr,,LUe

which need to be tested further.

90. The miss-ion's further conclusions can be summarized asXI _ " c _ _ tt*__ __ T_ _ 1__ ._ __ _ r _ _ L _ _ ---- _ 1_____I___ ._fol loI)-ws Highrways.. Ip-ovement of la-rge pda- Uo lth lrunk r-odu syseUIis urgentlfr required. A list of well-justified road projects to be under-taken dLurig the third plan period has been iWeniti'ied (trus does notinclude forestry roads in the South .'ast). IIost of these projects areLu1ey studr t .fl .ort2Jt '2thd ie1e.-t :id denors -.tjbji.h 2h;vrcrteiitin these projects would total about CFAF 10 billion. I{±ghwfay maintenanceis improving owing to the establishment, with foreign financial andtechnical assistance, of a central maintenance equipment pool. Furtherincreases in budgetary provisions are however needed in view of rapidlygrowing traffic. Government is considering a reorganization of roadtransport but the proposals in this respect appear to have features ofuneconomic regimen-tation. This could lead to a stifling of competitionamong road users at the ex-ense of the rest of the economy.

°1. R.ailways. Improvement of the railway between Douala and Yaouwdeis required in order to increase capacity and efficiency. Increases in

- 39 -

rolling stock, improvements in stati.on. and track renewal are being under-+., - .par+ly wlth iBarb - s-- -4---- rp -4,, -u4s io4 oP 4gofS.,W-en~ V JL VV.L L4 I CO _ VU1.,K-* ±11w- '_J1 4VLViJI U.L 1U UJ. L/~11%,

antiquated, very tortuous, trace will be studied as far as the economicaspecus are concernjed aluer Jthe I r lway proJetU. Oelected im,prove-ments of part of the track rather than complete iealignment willprobJabJly prJ.LeIset1 l4Vh sUtU e,UUUJUJiJ.U oLutLQL11.

neavy aQuuL'.±cL flrve5VU5Wnen.US kUrAF Dillion) auring 'ne iuniraplan will be required on the last section (Belabo-Ngaoundere) of theranscvaueroon railway for which foreign financing (FAC, FED, uSAjD)

has been arranged. Investments in infrastructure, rolling stock,renewals, etc. will add up to another CFAF o billion. Proposals formodernization and extension of existing network during the third plantotalling C.FAF 27 b:illion appears uneconomic or premature to tile mlssion..Assuming that these last investments will not take place during the thirdplan. period, total railway investment during 1971/72 - 1975/76 would addup to 13 bi:llion, which can be compared -with an estimated actual invest-ment of CFAF 20.8 biLllion during the second plan.

6. Power

93. Two major semi-public corporations, ENELECAM and EDC, operatemost of the power sector in East Cameroon. ENELCAM (Energie Electriquedu Cameroun) is exclusively concerned with production of electricitywhile EDC (:lectricite6 du Cameroun) deals mainly with public distribu-tion of energy. PO1AERCAM has control ove:r the power sector in mostcenters of West Cameroon.

94. Cameroon's rivers present favorable hydro-electric potential.This has led so far to the construction of a major hydro-electric plantat Edea, which, at present, has an installed capacity of 156 NW. Thispower plant supplies the ALUCAM aluminium factory which accounts for over80 percent of all e:Lectricity consumption in Cameroon. Under agreementwith the Go-vernment, however, Edea reserves 20 MW of its generatingcapacity fo:r the needs of Douala and Yaounde with which it is linkedthrough a 90 kv distribution network. Because of this arrangement andbecause of :insufficient storage on the Sanaaa river on which the Edeaplant is located, ALUCAM works annually at only about 85 percent of itscapacity. This situation will be improved through the imnlementation.during the third plan, of works to regularize water flow on the Sanaga(construction of a dam at Bamendjin and lifting of the level of the dnnat Mbakaou) and of additional generating groups (completion of Edea III).These orolects will raise total generatAno cnnncity at Edea from 156 TWAJ

to 258 MW. Financing at a total cost of CFAF 4.0 billion is underconsideration hy G Gentrnale and the Europenn Investment Pnnli- . tercompletion., ALUCAM will be able to work at full capacity (56,000 tons ofaliminiumm) a11 year rouind, nd power guarnnteed to Dounla and Yaoulnde wiLllbe raised to 80 MW.

- ho -

95. A further major investment contemplated in Cameroon is thedoubling of the trnsmi & t D nnd Yaonde

at an estimated cost of CFAF 4.9 billion. EDC expects consumption in+hese or ~mnA r, +k0d D eleve, eonda,y cenrt- r in w-h h -i+ op-ates

to expand during the 1970's, at a rate of about 14 percent a year,LVIchI -Ls aPPrJ Ar1U,1eLyV Uthe Oc-me V-a± as PrvcledU UUL-nLJg .L79_4 -

1968/69. A project to provide electricity through thermal plants to aLurL4J.er xiutur of sUecUnar-y eIiUIne au aJ esirrjacedou uost of CFAr C.-

billion is also under study. If foreign financing can be secured forboth projects, cormbined expenditures during the third plan. might amountto about CFAF 5 billion.

96. In view of the future increase in public consumption of energyand the possible doubling of ALTUCAIts production capacity in the mid-70's, ENELCAM and EDC contemplate a very important program for theexpansion of their respective generating capacities, between now and1990. ENELCAM has now completed the studies for a hydro-electric plantto be located at Song Loulou on the 'Sanaga river,Y90 km. upstream fromEdea. This plant with an installed capacity of 125 INW and a total costof CFAF 11.5 billion, would supply the additional necessary electricityto AIUCAM if the doubling of this factory's production capacity takesplace. EDO has just started on the studies for another hydro-electricplant to be built at Nachtigal, on the managa river also, about 250 kmupstream irom Edea. The total cost involved would be about CFAF 9billion for a total installed capacity of 250 10J. Construction wouldstart in 1975 and end in. 1978. Generating capacity would be graduallyincreased and reach its maximum by 1988.

97. No financing has been secured so far for either of the twoprojects. Before any final decision is made on these projects, twomajor points should be raised:

1. the intentions of ALUCAM regarding the expansion of itsproduction have not yet been clearly defined.

2. strong doubts arise about the time sequence proposed inthe program of ENJELCAM and EDC. Tle implementation ofthis program would require large investments (CFAF 17h;illion or S nnrnent of thp totnl cost of thc: two

projects) between 1971 and 1978.

Considering the future expected overall demand for energy, however, itm.i ght be desirable to invert the orde'r of corntrmtion hy compl eti ngNachtigal between 1973 and 1976 and dlelaying construction of SongT.niilou Jntil 1983 - 1986. ATTT IAT Tor%ilel still be in a npCoi+ion ton

double its production by 1976, future public demand for electricityTsT15dbe et -.dthedibu-sm.ents Ror the second pl \_ GFT 11.5Wor~i A l-v wiet -nd th d1is,A O1,noDisr+~q fv-,' +Jno Qpnn-r'rrnAiln-,+. (P"'KAP 11

billion) would be postponed by at least 5 years, thus spreadinginvestment ovver ra luona.t'ly lnge-r perluod of time $ A.lL A- s al t eJLna

tive should be closely investigated and the investment program of

- 41 -

ENELC(AI4 and ZDC revirsd if necessary. If ALUCAiAi does not double itsproduction capci+.y, then Nachtigal wonuld. spr-r non-aluiTnin. deniondas origina:Lly foreseen in the program of EDC and construction of Song

oulou r¶wo-Ld not be necessa.y for a Vrnr long +tr +.e cr.e.

7' ... ZU'JAiV > Wl JA . 3rfj, L'.h VLL.C U, VWLtJl C14. rs,Y ~LJconstruction in the late 1970's, is a hydro-electric and irrigationsJ± VJ ;|_ Q U CJ;1 U LV Vl.l Wit£13L ULL. I XLV cl 11' C tV CO U IlldAc U U U VLL .,± tL _ *.i

billion. The econcimic justification of this project is not yet estab-

I ' LI -.... -3

7 Euucati-on

Mar-ipower- and educat.ion sY-ster1

99.' Despite considerable expansion in the last decade the educa-tion system of Comeroon is not yet able to meet the demand for middleand high level personnel. Chiefly due tC) the shortage of qualifiedlocal people a considerable number of expatriates is employed inCameroon particularly in the private sector as executives andtechnicians. This is evident from the table below:

Table 11 : EXPATRIATE PERSONNEiL IN CERTAIN CATEGORIESOF 711PLOYIENT IN 1965

Public Sector Private SectorTotal ,5J -EyPatriates Total pariates

Skilled labour andclerks 23,610 l% 9,680 8 o

Foremen and JuniorAdministrative staff 284 3l1 2,349 37%

Technicians 3,180 19C 940 54%

Executives 1,592 48% 939 65%

_ . 3v3 . 28,666 65 13,908 19.9%a

100. The labor force in the modern sector .*jill require by 1975 anestimated additiona'L 21,000 workers with cualifications provided bythe f:irst cycle of secondary or higher education.- With such an

1/ See "Appraisal of an Education Project in Cameroon", Chapter 4,IBD1' RLt'jJIJU MoU. PE-5(a) JUWLy 199. iTie esuimate assumes anaverage annual 6.1%' growth rate of GDP.

- 42 -

injection oi qualified nationals, the percentage of expatriates in thelabor force would be moderately reduced, which would be in accordancewith government policy of gradual Cameroonization; houwever in absolutenumbers expatriate staff would increase. A more rapid influx ofnationals is nct possiblw in viewi of the shortrcminaq of the nresenteducation base. The issue is not one of quantity alone, but also aquestion of improving the quality and relevance of the system. AnIDA credit (Credit No. 161 - CM) signed in August 1969 is designed todirect the education. system towards the objective of feasible expansioncoupled with relevant reforms.

Expansion of education

101. The strong efforts made to develop education are reflectedin the following data on enrolment.e

Table 12: MJROLv1F\NT IM SCHOOLS

EAST CAMEROON WEST CAMEROOND-irrent Curre.ntenrolment Annual Increase enrolment Annual Increase

I o04LC /AO-s 04) /Ac~ r-IOAR /AO -I oCAR 1 A /AO I04 ri1 OAR lAo

Apo orici6A 19o ,v'in -1°6I I.CI-J.."JAJ LJy SJV_f 0 £4 *),3 L-aS .LJ.440

°eod genera 1,7 ,^37 .12.; n,3 16.2- 4n~eL~Ui±U.±J.~y ~ I ,L:) I ±LC .'Ji-J ±L _L

Oecor,ua YLy t.ecIULclU 11,553 L4.3 1, I UU ± .4L

University le-vel, total enrolment inL 1968/69: 3,176

J102 The participation rate in primary education in 1968/69 reached64 and 57 percent of the relevant age groups in respectively East andWest Cameroon. There are however important regional differences. InNorth Cameroon the participation rate is only 25 percent. These regionaldifferences are even more apparent in the secondary system; the maintowns of Southwest Cameroon account for about three quarters of totalsecondary school enrolment.

Past and future cost of education

103. Current expenditures on education amount to about 19 per-cent of tota:L current expendituresV/ Government expenditures wouldbe at least one thircl higher if the contribution to education byforeigrn technical assistance and private, including missionaryagencies, also had to be carried by the government. The high costof education in relation to total government expenditures putsobvious limitations on the feasible future expansion of the system.

V/ This estimate makes alloi.ar±c3 c. tlfie fact that a lar1 SaLt o1 theno.-:cnounte Žr'~rt. :orfoiTeiD technical assistance is Dsid to exDatriateteachers lrom the government budget.

- 43 -

With regard to future education development, an important basic decision1hvu (rlrra- .m+. iS a ,an,r nev'+. miil aT trA +}v.cA +h T,ar , to YIIOT ec.ai,'-

tion. If enrolment in the primary system were to increase at approxi-matelyr +the onm rates in +he pasot or, i f' nmvn

4'1 An,hav and m 'I

classroom ratios were to be maintained at the current levels, invest-.ment s in th; pNiolp_lic- A-4ol duin +1e third -A & - o - 'd,~ ..44 U.4~ JJ.J.l1.L ~aL,L4¼ '.LXJ,14aWL UtA.L LJSJ4 Wll~ WAA4.L.I.U. jJ..L I VJ'JLt%LUj

according to a tentative mission calculation, amount to CFAF 9 billion,incXlu" V UlMIJ .Lt AC4UJ._ rementC1O VV . .JU ±.'-l J.U- Vt4ais1Cq-V-

schools. Meanwhile the aim of training sufficient people for middlearnd high level positi'.ons in the public and privaVte secors would alsopose very large investment demands for secondary and higher education.Tentatively these investment needs have been estimated by the mission.for the third plan period at CFAF 10 billion. Investment needs forhigher technical and commercial education might amount to CFAF 2 billion.The combined investment in education during the third plan would thenamount to CGI'LFr 2i bDi.lion whicn would be far in excess of what couldpossibly be allocated to this sector during the third plan. Althoughthe elements for a precise calculation are lacking, it would appearthat total public investment could not exceed by far CFAF 100 billion(see para 113 below). In view of urgent d3emands of other sectors, itis suggested that total education investment should not occupy a verymuch larger proportion of total public investment than in the secondplan, which was 8.5 percent. Very tentatively therefore it seemsunrealistic to aim at a total investment in education exceeding CFAF10-12 billion. The conclusion is that continuation of the past growthrate of primary education (leading to a rise in the participation rateof 75 percent in 1975/76) and expansion of secondary and higher educationas required for continued growth of the economy cannot both be attained.A basic choice is retquired.

Evaluation cf the education system and development strategy

104. The following considerations might be useful in determiningthe most desirable development strategy. The education system appearsto be characterized at all levels by a high proportion of drop-outsand repeaters and a relatively small nim ber of pupils wqho eventuallyacquire the qualifications which the school in question was intended toconvey. In East Cameroon, the expectation of a child who enters the firstprimarv grade to successfully complete the last grade is about 20 percent.,while his expectation to enter the secondary system is only 8 percent.Again.of those who enter the secondary system only 47 percent obtain thecertificate awarded at the end of the fourth grade and only 11 percentthe baccalaureate which provides the aualifications to enter the university.The small number of students qualified to enter the university (onlyabout Loo per year, of whom a proportion do not wish to pursue furtherstudies) puts a severe limitation on the viability of university educa-tion. A result of these facts; which noint to a low level of educationalefficiency,is a high level of current costs per pupil. In EastGam.roon these are estim.ated at FAF 6100) npr primary school minil/vParand CFAF 21500 per secondary school student/year. These amounts

compare with overall goverment current expenditures per inhabitant ofCdameroon of CF.L 60- . Holwe Vw%-v-er, iLf 1 heU C09tS e r,,easd aU the

small number of pupi:Ls who successfully complete their studies, theper pupil cost wo-Uld bue a rIL-LUtiple of. tLhe fgure.

1V0. ILJ, smai-L i iJLuer of seconUdar-y adU 1ghr11 .L evel g uate - I.I

spite of the very large expenditures involved - entails that qualified peopleare not prov.ued in u1i..clenv niritS ILULLL l e neeaS 6 wit! econoumr,,.

Ideally, the development strategy should be aimed at improving theefficiency of the system and more specifically to increase the numberof secondary and higher level graduates with the types of technical,commercial, and professional qualifications required in Cameroon.Expansion of the total1 number of students in the system would not be thegoal. Action in primary education would be limited to improvements inquality only. These would include expansion of the facilities forprimary teacher training, as well as adaptation of curricula. to Cameroon' scultural, social and economic requirements. Apart from primary teachertraining schools, construction investments would be concentrated at thesecondary and higher level of education. The need for curricula reformand increased teacher training facilities at these levels is also evidentand needs foremost attention. On the basis of its short visit, the missioncannot provide more than this rough orientation for action. Further studyrto establish a satisfactory education investment and reform plan shouldevidently be given high priority in Cameroon.

8. Tourism

106. Caineroon's touristic possibilities include beaches at Kribi(East Cameroon) and VTictoria (West Cameroon), wildlife in the North,and interesting folklore in several parts of the country. The numberof tourists reached about 18,000 in 1969/70, of which 6,0oo weretravelling vith the various European (mainly German) travel agencieswhich, for a number of years, have been organizing charter flights toCameroon and touristic tours within the various zones mentioned above.There has been a yearly increase of 3,000 in the number of touristssince 1967, in spite of limited hotel capacity and barely satisfactoryquality of transportation within the countrv. Total exDenditures oftouirists in Cameriaci are estiincted .ii about 3 miillinrn in 19;jSiJ0.

Government is conscious of Cameroonts increasing anneal to tourists andintends to step up efforts to develop tourism.

].07. The second plan envisaged an overall investment of about CFAF2 billion in the tourism sector, mainvl for the inDrease of hotelcapacity. Investments to date on hotel construction and equipment exceedlan proections aS a resltof the construction in Yaounnde And Garoua

c- twTo hotels for nDa5: _,octivay-, LTSF 1.? rllli-on and CFISF ",2C illlirn.

108. Mcnac res neranvr feor' n.rto,.ar i.mp'n o,r,rarl n f-

the inadequabe tourism statistics; coordination of action betweenth e m..ai4 n 45 o u.L-.m Ibu re,au , +1,a -- ar -i --A - +--ol¶ vg4 bu--aus, t41sn, .eaLa flU.. LLI UJ& SS V a. JtOU .f .LJJQ. LWJU.SM. C I.JU.l CuoIJ U±US

administration of the hotels and the travel agencies; expansion of hotelacc=Aod,JJ1at L.o, espeiJaJ" y. VDoual, ILI, I!az \ 'p- ^fo/us

and Maroua; coordination of flight schedules to and from Douala.

i'. Before enreterinrg -upuon ±,aJu investments, an overl l touridevelopment plan should be established. Particular attention should begiven to the currently contemplate' invesr±-nts in airports inP thenorthern part of the country. Foreign. tourists wishing to visit NorthCameroon now usually land at Ft. Lamy, which has an international air-port thcat is adequate for present need.s. The question is whether the de-velopment of tourisn and other economic sector-s justify e.otablihnmant, ofan international alrport in the North. Study is also needed of the recentproposal for regional tourism development by Air ifrique (the Hotcfriqueproposal) and its advantages and drawbacks for Cameroon.

C. Overall groLth prospects

110. Growth of GDP in the first half of the 1970's is likely to besomewhat slower than in the past five years, although still well aheadof the population growth rate. The reasons for this expectation ares.low growth of export earnings after 1.970 due to falling export prices,lack of agricultural and industrial projects and the transport bottle-neck. Analysis of production trends in each of the major agriculturalcommodities leads to the expectation cof an overall growth rate ofagricultural value added of 3.6 percent. In this computation, expor-tsof major agricultural products are valued at current prices in accordancewith tentative commodity analysis by the Bank. In the aggregate theseprices are only slightly lower in 197t•/76 than in 1968/69 and theprojected increase in value added is thus not too different from theincrease in Droduction volume. However a sharn nrice firon is likely tooccur in comparison with the very high. level prevailing in 1969/70.This means that export income is likely to stagnate more or less after1970. This is bound to have during those years, a dampening effect on-intivitv in the rest of the economy i.hich in the past five yrears wasstimulatod by the sharp expansion of e:cport income.

11l. Since investor interest in nanufacturing is already at a lowle-vel annd fpr npr4oject seem reard fo,v' f mr j1mn .tajti, n Mr..uch QI^."r

industrial growth rate than prevailed during 1964/69 seems likely. Thenor+. r2ifir-f�',r-'vl ie a lrso likelylTr +.or h4rmT'urzv m ecno,mic e+i-trt+, +,r 1

vast improvements are made in port organization and management. However,positive effects on economic growth are liely from theproject.under implementation or to be undertaken in highway and railroadconstruc^tion, powe gereration, telcj muiain,euainadpb aer ge ~4-,-el nn,w--n-

4n.,

4-4 - -. L

administration. The tentative projectionvby the mission in the followingtable are not have beea ib ofe the table sou bhte selenas awould no-t have been available. Rather,the table should be seen as a

r-ougn illustration of lkely econommic Lrends. Ille 5aIre isi LUrue. fUor- uicbalance of payments projections. The latter roughly indicate that onpresent trends the re-appearance of a mwodest trade deficit and a largerservices deficit seem likely. The total carrent account deficit vould,as a result, growl significantly in proportion to GDP.

Table 13: TPTATIvE MaSSION PROCJ"TIONS(CFAF billion)

A. G:DP1963/69 1975/76 Real growth rate

1963/9-1975/6 1964/5-1968/9

Agriculture, livestock, forestry,fish 81.3 10i4.3 3.6 3.9

iianufacturing 2.6 59 7.0 13.1Construction 15;.o 22.6 6.o 6.oElectricit;y, gas, wuater, firei-ood .6 13.8 7.0 6.3Transport, storage,

cornunications 13.5 19.0 5.0 3.6Trade L3.5 60.4 -h.3 4.3Public administration 26.L 35.9 4.5 5.5Other services 10.2 1b. 2 LY, 8.3

GDP 227.6 316.6 .5.3

B. Balance of payments, current account

E._2orts _ 51.9 70.2 1 9.7

Agricultural products 36.5 48.3 4.1 10.4Forestrv products A.8 8.2 3.0 22.0Aluninium 5.1 5.9 2e2 0.5Other nroducts 5.5 7.8 5.0 8.3Imports Lg9.0 72.6 5.t 7.1

Food 5.5 ) 19.0 4.5 4.6 )Other consumer gzoods 8.5 ? 25 )Rawi materials, intermediates 2h.3 37.6 6.4 8.9Unrhinery nnd nniii- mont 1n-7 16.0 5.9 8.9Services -.i.9 -13.6 -6.2 -3.9

Current account balance -.6.o -16.0 -15.0 3.7

c. _. r

-- 47 -

112. Too little is known at present a'Dout the intentions ofgovernment and major aid givers during the third plan period(1971/72 - 1975/76) to present an estimate of investment by sectors.To sustain the forecast growth of the economr during the third planand into the next one, an aggregate annual investment level ofapproximately CFAF billion 40 billion a year would seem required,growing from roughly CFAF 38 billion in the beginning of the periodto CFAF 46 billion at the end. T'his compares with investmentprovisions for the second plan (1966/67 - 1970/71) of CEAF 33 billiona year and a likely actual level of CFAF 25-30 billion. As in thesecond plan. around half of the investment - about CFAF 100 billionduring i971/72 - 1975/76 - would, in view of heavy infrastructurerequirements and fLagEing private interest, have to be provided by thepublic sector and foreign aid sources. These highly tentativecalculations nrovide n. rough inrdication for the discli ssion on financialrequirements in the following chapter.

- ~6-

FINATCE PROS'BCTS

A. Public Finance

113. Tle feasibility of a public sector development program duringthe +-hird la ny of CF'A1 100 (Vb K4iion, as suggested n -h- p-re-v s chap-,

is crucially dependent on the ability of the government to muster publicsavings to c:ontribut to 4+s- 4fir. -ci rng. '.1 glob, + of 4'.-gr

aid to decline while not yet felt in Cameroon enhances the importanceofP +h-e gove...r,ent' " 1- s 1 aLi4t t^ cotibt not or- y - oc 1- ot~J± U.L ~. V~.1IA~J U- ~d.I.LL.. J V .JU k.AJUU .L_LJALUV LIL%J U W±.Li." J..& .J41U.jJA

funds to the financing of foreign aided projects, but also to financeSn-vs,en pro& --- 4s for- whic no 1__' foe. aid i avaiableiLnv%eV M U1IJ IJ .LAJULU LV WII.Lkol1VdL S c1CUaL_1-

In thne paU,, uuie cUnt.ri_uton.L of pub.liU savings 'U UUVo e-elUPrtjL

financing has been small, fluctuating -around one quarter of total publicinvestment, except in those years in which high export prices contributedto a high current surplus of the agricultural stabilization fundsj invieTu of probable -fluctuations in these prices it is not possiblehowever to depend heavily on. these surpluses for the financing of adevelopment program. Mioreover, too neavy reilance on the stabilizationfunds to mobilise domestic resources would harm producer incentivesin. agriculture and iLs therefore undesirable. As far as tne third planperiod is concerned, the expectation of an overall decline in exportprices makes it like3ly that these surpluses at prevailing producer priceswill at most amount to CFAF 1-2 billion a year. In view of the difficultfinancial position of some government enterprises (the port authorityand CAMDEV) it is also not likely that a rapid increase will occur inthe total volume of current savings generated by the public enterprises.Tentatively, we est.imate the total of the public enterprises currentsurplus at CFAF 2 billion per year, roughly the same amount as wasrealized in. recent years.

115. This leads to the conclusion that the volume of public savingsin Cameroon during the third plan depends almost entirely on the prospectsfor budgetary surpluses. In spite of the recent rise in these surpluses,the outlook: for such an increase is not bright. As far as revenue is con-cerned, a slowdown in the rate of growth during the third plan appearslikely. In the past, revenue has beern responsive to economic growth.This was not so much due to increases in tax rates or more effective taxcollection (although some progress in this respect has been made) asto the growth of foreign trade and modern sector activity. The forecastslower rate of growth in these activilties will slow down revenue growth.A tentative calculation by the mission of revenue growth of various majortypes of taLxes indicates that during the third plan total revenue willprobably grow only very little faster than GDP as a whole.

*116. This tentative calculation -is based on the assumption that tax:

rates would be maintained at their present level and that no substantial.improvement; is made in revenue collec-tion. In fact however there isconsiderab:Le scope for improvement in both areas.. The low level of personal

1 ra 39 indicates why th curront surplus of the agricult;uralstabilization funds iLS considered part of pUOlic savings.

- 49 -

and corporate income taxes has been menteioned. The effective taxa-tion of personal inconmes is e -tremel12 light .and the mission has theirp-ession tliat a doubling of rovenue ircr,, tnis source aithi_- arelat-ivel- short period shiould be enti,ell- feasible. This could bcedone once collection has been sufficierntly improved, by a combinationof lowering the exengption limit, raising the progression in the rate(which at present is very low) and reducing the numerous tax exemptions.The latter add heavily.to collection cost besides losing revienue. Reformr, ofpersonal income tax alone could yield additional annual revenue of atleast CFAF 4-5 billion by 1975/76. There is furthermore scope forraising the rate of company taxes in East Cameroon, which is currently25 percent of taxable profits compared to 35 percent in West Cameroon.Here again the additional revenue that could be collected is substantial.Raising East Cameroon rates to the West Cameroon level could yieldadditional revenue close to CFAF 3 billion by 1975j76. By internationalcomparison a rate of 35 percent would not be particularly high and it isunlikely that such an increase would seriously diminish the incentiveto invest.

117.. A further subject that needs to be reviewed are the generousfiscal exemptions under the government's investment code. The tardinesswith which government is currently extending exemptions under the codeis perhaps an indication of the desire to cut fiscal losses. Since thelengthy approval procedure may deter i:nvestors it would be preferableif government were to review, first of all, the provisions of the codeand perhaps lower the exemptions, and then establish simple criteria forapproval.

fllC. The collection of customs duties, the most important elementof government revenue, is in urgent need for imDrovement. Collection isslow and misreporting of the nature of merchandise and under-reportingof the valu3 are frequent. We cannot estimate the loss of customsrevenue, but suspect that it is large. Earlier mentioned mechanizationof cumstoms adinistration will help improving aCcUracy And sneed uD and

increase co:llection. It should however be accompanied by structuralchnnges. The existefnce of four different imnort taxes and dl fferent"regimes" -!.4hich determine who will pay none, some or all of these four

taxes compl Sicates amtiTninistrnation and m nk n GO1 lortAnon ePensnqivPSimplification should raise net revenue. With regard to export taxes,e pactice of using a fixerd enport value, vnaleur mercuriaIe"', aS

basis for determination of export levies should be changed for a moreflexvible procedure. TiAhen f o.b prices are below the valeur mercuri le imarginal exporters are discouraged, and when they are higher governmentsuffers unnecessary fiscal loss. The valeur mercuriale was useful whenexport prices were stable which was the case when France bought most of

I ------. aorra-4

-,+ 4M,raA v.,4q IT o erro+avn - c ynr.- ^ii,,4 +nrACurres enp at fixend hase grolhe syslea. is noud ostdated.

_ _ Oss*~4 1- 1-v_ 4 Fa_S sT--A 1 n_,-A-r -- As - -4 +* UiALX -L11 Gl A,IJ CLO S;-VV.,11 U.J w~qj as u l W LU4U Q c7JU |1 oJ --U s

ol some attempts by government to slow down the pace, there is no evidenceas yet What.the glro-UULi ateU ls Let;U1LL1. LoVwer. .Al tI1UU hel r hia-v- I beVen,

increases in current expenditures on education, public health, agricultural

extension and public wJorlcs, much of past expediture groirth appears un-corznec'Ue' -..-iLth iuyncr-ease inue- ,-e*1-aetaQif.sCJ a~U ~L L'LA LIy ~LIur.UJ4 Uz.'U±U.J. 6V V(L1JIfJLL LII UUVI.J.VJL.Lq ;: tzUI ±1cas

to that extant been nasteful. The very rapid grotth of the number ofgUVUelimeJn t eVarH' aos(1 percentIa hscer d 'Leei .LEW 111 t1.;,Ut5b

of government's needs for staff. In recent years the haxmful financialeffects of excessive current eW-penditur growth were concealed byJ evenfaster revenue growth but this tdll not be the case during the thirdplan w.Lhen according to the missionis e:pectations revenue uill beincreasing only about half as rapidly as in recent years.

120. A reduction in e.-penditure growth is in the missionts viewentirely feasible -a'thout any haim tc the economic development functionfulfilled by rovernment. Tentatively wye suggest that current ex.-pen(ituresneed not grow faster during the third plan than by h.5 percent a year.This could be accomuplished as followTs. In the first place, it would seemthat budgetary and staffing provisions for defence and justice (2L5- ofcurrent total budget) and general public administration (25j. of currenttotal budget) *which have been growing very fast are plentiful at the presentlevel and that very little increase if any is needed in these provisionsduring the third p:Lan. Secondly, the justification of all types of cur:rente-penditures should be carefully scrutinized. In particular the generoulsfamily, houlsing, transportation, entertainment and other allowances ofgovernment personnel need to be revietied. These allowXances add more than60 percent to totaL government salary payments. It has been estimatedthat rent allowances for hirther !sovernment officials alone amount toCFAUF 2.3 b-illion a year.

121. Current expenditure proirth by 4-5 percent a year and increasein administration zmd defense expenditures by, say. 3 percent would permitincrc s in expenLditures o.i iented toi.ar(Is mocial and ocoiomicdevelopment by aDproximately 6 percent. This is not a verv high rroT-thrate for these activities and perlhaps it urill be necessaiy to limit theCrorth of administration and defense e.nzoenditures even more sharDlyr.

122. On the basis of the foregoinr.. the prospects for public savin,¢sduring the third plan appear to be as follows. If revenue 'and xrendl-tures increiase in line lith past trends, public saving.s during the thirdplan rill be very rmall and perhaps negative. 'The financial feasibilityof a pnulhiic investbrint nrogrAnm that i . in line r-th CGmeroonJs, ahsorotivtecapacity, wTould then be very doubtful.. The mission therefore recoimmendsthat. government as part of the nrepartinon of the third pl, , (>) epnlorethe possibility for fiscal reforn (b) adopt a deliberate policy to limit,e.xpenditure grownth and reduce wJasttefuln epv-enditr+es. The m.issi onbelieves that the target for the thlird plan period should be to realise atleast OFAr 50 blnlion in public sector sainegs. Service on e.xt-erna-l publicdebt (e:isting and newi debt, assuming for the latter appro-immately the6 r.rrn 5 1 7 a n a nn4 4 ,s 6O *7 e In.5,,, y%tn7r%t 1 CAl ; t' rnnnrh+ t7Qnn'rA ,.t.Vfl1 A Hnfl5¶ v.0WIA ''1 CU1 'V .L&JU a2 .,as VW LJs w V CL ~$ | J *\. ' ' 4 s_a,s 0/ d' .Ls oSLt. I: ; f

about CFAF 17 billion. This w.ould leave a net domestic contributionto Utbe 1finwancinz', of tbie thi.LUA plLk pub.lic i.nvesmL,ent of C.F.J U' _3 ri-L-iUflun,

or one third of the total. This is not a ver27 high proportion, but, as.I4IU±cULeU, U terQL1U £ZjU.. sc LULI WIu duste- -Ay J.± ue nieede- w

achieve even this much.

B. PRIVATE SAVIN-GS

123. Very little is known about the volume and origin of privatesavings in Cameroon.. From our analysis of the national accounts itvould appear that the private savings rate has recently dropped, in linewith the slackening of private investment. This is a very disappointingdevelopment. The growth of the moderrn private sector and particularlythe rapid industrial exoansiom during the earlv and middle 1960's wasone of the main elements of economic growth during those years. Arevival of private investment and with it of private savings is of utmostimportance to future economic development. We have mentioned the need toimprove the investment climate and the need for a more aggressiveindustrialization policy. Another factor, also mentioned before, isthe need to raise the entire interest rate structure. Under the freedomof transfers which is characteristic of the CFA franc system a largevolume of private f'actor income is annually transferred abroad. Thisis in part due to the very low level of interest rate prevailing inCameroon. A raise of the entire interest rate structure should con-tribute to keeping a larger proportion of private profits and incomesTAr thin the coumntry. A si in r1posi1- interet. . rates fronm their present.unattractively low level, and lowering of' the minimum deposit requiremertsonn private:. saving acc nountsn should el nlourae:F saversr and; induce privarftecomoanies to maintain a larger part of their balances in Cameroon rather+han abroad in order to finance +heir act+ii+-rtes writh, thaeir own funds,rather than with bank credit which at present interest rates is unrealiEStical-1yr clheapn. Al +. hiir,' a rise in in+erest -rates rjorllld ob.iousri y1t he dislikead

by the privrate sector it seems unlike:Ly that such a measure would lead tdo~flr naA,n-~ n vi nr.vn,

4-+-

4-r

4-hir

121|. I,ack of fnan<ci '1 mear.s has not 'keen a seriou,1s constr.-aint on1-OJJ 4.t,!U., liLt' " .J JL.A i.~J_J.Ji.L J i. . wa,V.. U

d1Žv_lopmont of privrate sector development in Cameroon. InvestmentopportU-t 4es hav bee ,,athe -..lt --P4:ficien.t4 A__4ic ar, - n _ adequate

inflow of f'oreign f'unds. This was due to the relative ease with which±LUEids cUaI bLe tiiW-nSi.f.erred tL tU-.Uand from CaWUeVU00. ad.IU UclUos oUn1necLoLnU1J WJ.Ul.1the business world in France. The stiffer government attitude vis a viEsiie pr-vate secLor Ilas reduced hle prj.Lvate t dcjUapit. al JLn,LfUW aIJU mJaUe i.t U

less evident than in the past that any shortage of domestic private savingswould be mIet by su-fficient inflow Lromn UU. Deflnite irnpruvements ingovernment policy towards the private sector are required to improve theprospect for privatie sector finance duriiig the third plan..

C. FOREIGN' RESOMuEES

n nrR r .. s .. n ~~~~~~~~_4*: IQ¢- -A4AX r.o4 -91 0.40* .L% LU .IJU dJ Q WIULLJ.d.kLL. V .L jJ. VJJi.,i ua 0<51. k10&;li..A.J vo1 ..a. sa CAA.i ,L _' /

for'ei-.n aid. commitments han2 risen from about `75 million 2.t the beginningofA J'.fw to0 -. L) msiarllion in IU ,JY 197. j.hi5 oWUur i- Lhe ecL,.Ls'ent 4f

around four years of foreign aid disbursements. The bulk of the recentcommitments consists of financing of the second part of the Transcameroonrailway ($49 m) and the undisbursed portion (about $51h million) of Bankand IDA lending in the last twio years. The Transcameroon. railway is to

- 52 -

be COm..peted byr 1074. Bankl nnrl TTDA lonsq-c s-holrld also,z behz bY

before the end oi the third plan. How large the aid pipeline oughttok be at -th e.d thfe +I +hird. "Iann idependsc very hvirl on inr+n

decisions still to be taken in the power sector (Nachtigal, SongT onIou) ar,d also,, n I 4-1-Uai, to a 1 eser extent -n 4-1 i,or tne o . of st+dA.eUIJU.JJU. CL.a.L' -L A. U~LLW SI Lid - Ii . VIC-A A U v J -L A U"LI MI W/A uiLii~i4 .

on the port situation and infrastructure needs of the forestry areas in4^A.U 4. 1, _ l 4-fi 4> A.. 4 _ r..1 > 4;5o_. ; 4.1U11D s iJLA L4Icd.~ 1' ;. us I~ 1 4 1Wy, * JJLy Uui til L I'l l 4U1.L U J.1-J Wli!' 111U

of these decisions will have been taken, the aid pipeline may well turno-u.t Uo beS abouitaslarge ast , LU _U apU

126. O-u eslHsae -f I-- doe:vi ..vl o -! e ofdetse-I ~U. UUL Cjt,.LIiidUUe VI LAIV, (1V1I1tNe ,L; UU1U cJ LU.LLU,LbU1 l iJU U VI UCLU W:71-

vice payment) to public investment financing leave about CFAF 67 billionto be covered from foreignL reso-urces:. If the pipeline does invdeed nIot;decline in size dluring the plan, then this estimate of aid disbursementswould be equivalent to aid commitmenits during the period. T-hus far asubstantial part of this inflow is already committed or under seriousdiscussion witn Cameroon's most important sources oI ioreign aid. Moreor less firmly committed aid in power, transport, agriculture andeducation adds up) to at least CFAF 25-30 billion. Further and strenuousefforts at project identification and preparation in all fields, butparticularly with regard to agriculture, forestry roads, power and theports are however required to make it possible for foreign aid donorsto enter, during the third plan, in project commitments totallinganother CFAF 37-1h2 billion.

127. The volume of aid requirements is high in comparison with thepast. Aid disbursements of CFAF 67 billion during the third plan periodwould compare with CFAF 47 billion of disbursements during the fiveyears ending 1969. To a large exte:nt it depends on the decisions withregard to the third FED and the French aid program, whether this volumeof aid can be obtained by Cameroon. This precarious situation pointsup the earlier discussed need for Cameroon to reduce its dependence onforeign aid by determined fiscal action. With regard to the terms anclconditions of aicl we have assumed that grant aid disbursements for pro-jects wiLl not increase beyond the 'level of about CFAF 5 billion a yearattained in the past; that Cameroon's traditional main aid sourceswill continue to offer relatively favorable terms on official loans,and that meanwhile Cameroon will practically abstain from suppliercredit financing.. If this last condition were not fulfilled, the coun-try's debt servicing capacity would be very rapidly exhausted.

128. In viewf of the still low level of public savings and the needfor the governmeint to undertake certain investments for which foreignaid financing is usually not available, government's contribution toforeign aided projects is likely to be relatively small. For schemeswhich do not have a high foreign exchange content such as those inagricultu-re, this means that government may not be able to contributethe tota:l amosnt of local expenlituaires. E.ven if government w%ill makemaximum efforts as recommended in para... 122, foreign aid giversshould be prepared to cover a high proprtion of totl.cincluding when necessary part of the local cost.

129. Cameroon's foreign debt has increased rapidly and although mostof the debt narries modest interest rates and long rena'nment terms,debt service payments are becowing larger. By 1975/76, debt service oneYi.itAinr- anrd neT-T niuhlic debt Trill Amclint to ;16i, million; 65 npercent of

projected export earnings in that year as compared to 3 percent at present.This is still not a very high percent_age and a modest inc-rease in debt onconventional lending is therefore justified. However in view of thef.ry'sv~+¶.~I porvertye+.1r sndi, "i ¶t.1eryr nnelr~Q+. mYodt rot+h poects, mv, rn r r I

needs for external capital are expected to extend over a considerableI or ¾ aP ofA ma Iy;n'os f'rnn4 asf i st+-n^ +to C'amaeron sh, h+ lerefore be

e,tended on concessional terms.

P A MTTPP(ATh

VCt7MUTO 1Pr,DrT 1 070

T TrT. r)V rrlADTfl'cDe L/.L UL' £J±UJ

J.~~~~~~~~~~~~

1, rOuruLLL±N, Th~rJJJ11"ui'J1lM, wuCaI.ui'

Population Growth 1963-1970 1-1Population by region, Urban and Rural 1963-1980 1-2Regional Demographic characteristics 1-3Age group distribution 1-hEmployment in Governments, 1966-1969Permanent employment in East Cameroon, by major

sectors and salaries 1964-1966 1-6Employment of Africans in the private sector 1-7Enrol].ment in primary7, secondary and technical

education 1-8Enroll]ment in higher education 1968/69 1-9Primary teacher training 1967-68 1-10

II. NATIOIJAL ACCOUNTS

Expenditures on GDP 2-1Implementatioin of second five year plan

1966/67 abd 1967/68 2-2

III. BALANCE OF PAYCIENTS, FOREIGN TRADE, FOREIGN AID

Balance of paynments 3-1Principal exports by value and volume 3-2Composition of imports by value and volume 3-3External trade to UDEAC 3-4Trade balance by monetary zones 3-5Foreign aid: disbursements 3-6Foreign aid: first and second FED program

commitments for investments 3-7Foreign aid: first and second FED program- disbursements 3-8Fnrei n ni aid: financ-ial assistance from F.A.(G. -commit+ments 3-9Foreign aid: financial assistance from F.A.C.- disburscGments 3-10Foreign aid: financial 1 q t.nce from G- G.E. c 3f11

IV VY*7PTJAT. "MMO'

External public debt outstanding 4-1Ft1ern--' pub54 (,debt, br I-,r etween aortization

and interest 4-2£1!,AEL,ej.Lu± PULUICU UE:U L,~ VIeW:-UV W.l LJy OUU1.-Ut: U.L ±±~1LI 4

uoIlsoi.Luabeu Fiederai &Saues budugeLs 5-1

Consolidated revenues, expenditures & surplusof the Federal & States budgets -2

Consolidated provisional & actual expendituresof the Federal & States budgets, breakdown bysectors 5-3

Actual current expenditures of tne Federal and Statesbudgets, 196S7/68 and 1968/69 5-4

Actual revenues & expenditures of local communities,year 1967/68 5-5

Investment Code 5-6

VI. MONETARY STATISTICS

Monetary survey 6-1Treasury balance 6-2Industrial classification of declared loans & advances 6-3"Banque Camerounaise de Developpement", analysis of

loans granted by sectors 1961/69 6-4West Cameroon Development Agency, analysis of loans

granted 1954/66 6-5

VII. AGRPICUILTURAL STATISTICS

Production of principal cash crops 7-1Produc.tion of principal subsistahce crops 7-2Agricultural production & plan targets 7-3Livestock & fisheries 7-hProducers' cash revenues 7-5Main agricultural exports 7-6Annual production of timber 7-7ExDort;s of timber 7-8

VIII. INDUSTRIAL PRODUCTION. PUBLIC UTILITIES. TRANSPORTS

Industrial rroduction 8-1Production of electricity: EDC network, ENELCAM and

Wes±. Gn~meroion 8-2

JIonJ o of elect. city R_3

Production and capacity of the! water supply systemsoperatd U UY SV U-4

Water consumption in the centers operated by SITEC 8-5Hligh - -s network 8-nigrways l~wr~Annual registration of vehicles in East Cameroon 8-7Traffic of Regifercam 8-8Total port traffic 8-9Main commodities handled at the port of Douala 8-10Airport traffic 8-11

IX. PRICES & WAGES

Consumer price index 9-1Minimum wages 9-2Government employees in 1968 9-3

TALRT.F 1-l! CAMEROON - POPULATION GROWTH 1963 - 1970

(mid-year estimates, in thousand persons)

1963 1964 15'65 1966 1967 1968 1969P 1970

East Camezron 3,985 4,056 4,140 4,225 4,312 4,402 4,495' 4,586

West Camen on 1,020 1,059 1,087 1,118 - 1,148 1,178 1,215' f,250

Federation 5,005 5,115 5,2'27 5,343 5,460 5,580 5,71t 5,836

Sources: a.)National Statistics Office of Cameroon

b)National Institute for statistics and economic studies of France( A INSV)

B¶Z2 1*2 G CAMMfOON - POPUIATION BY REDION, URBANV/AND RURAL, 1963 -1980

(rntd-year estimates, in thousand person )

Reglon I AnnualJvth r6 196 3.1970 AtEzp.ot" anul qroirtbcentl s 1970-8 (Der

Urban Rural Total Urban Rural Total Urban Rural TotZt Urban Rural Total - rul Rural it i

Center - Smoth 150 900 1050 286 916 1202 9.6 0.25 1.9 7 0 2,05 563 915 11478

Co&Ital 300 240 540 161 219 IS80 8.1 -1.3 3.35 6 -2.2 3,.95 826 176 10302

West 90 620 710 155 685 1340 7.4 1.4 2.45 7 -0-55 1.3 305 6449 9554

East 10 ___ _ 3 j 19.2 1.8 3.0 7 0 1.15 X A,

North 100 ,13502 iL4520 I 1421 2 6.4 0.75 1.2 6 0.13 1.4 ML l= AU

I. EastCamE iroon 650 3335 :1985 1,090 3,496 4,,586 7.6 o.65 2.05 6.E5 0.1 2 2031 353k 5571

II. We stCarneroon I 8 '20 10 5.14 2.55 2.95 1., 3

III .Federation 785 1220 5005 1,285 1,5,1 5,I836 7,3 1.1 2.2 6.7 0.55 I1i 1h5I 797 7il5

1/ Urban popu].ation includes residents of centers with over 5,000 inhabitants2/ Missioni estimates - Excoected grcowth rate taking into account inter--egional'mi.grations.

Sources: a) Nlational Statistics Officeb) National institute for stablization and econromic studies of France (INSEE)3) Mlission estimates,.

TABLE 1-3: CAME:ROON-REGIONAL DEMOGOBPHIC( CHARACTERISTICS (1970)

Iter- - Absolutc4Urban Population Population regionaY/ value ofs

population Total Rural Birth Mortality natural real growth migration inter-regiona.Region in % of density clensi.ty rate rate growth rate rate migration

total. ( PO (Ppc. n (percent) prn (psrcent) (percent) (percent). 1970 1980

Center SoutJh 23.,8 10.3 7.El 3.7 1,.6 2.1 2.05 0.05 -5,000

Coastal 67A8 33.6 10.8 3.7 1.6 2.1 3.95 +l.85 +170,000

West 18.14 60°.4 448.7' 4.9 2,.3 2.6 1.3 -. 3 -130,000

East 11.8 2.6 2.3 3.7 1,,6 2.1 1.15 -0.95 -30,000

North 9,,8 9.6 8.7' 4.1 2.3 1.8 1.4 -0.11 -70,000

I East Caineroon 23,,8 10.8 8.2 4.l 2.0 2.09 2.0 -0.06 -65,000

II West Canmeroon 15.,6 29.5 24.59 5.0 2.4 2.6 3.0 +0.4 +65.000

III Federat:Lon 22.,0 12.5 9.7 4.3 2.,1 2.2 2.2 0 0

Vi Assuning mdgration tc and from the coumtnr is negligible

_SQurce: See table 1L-2

TABLE; 1-L!: CAMEKOON - AGE GROUP DISTRIBUTION - 1]970

(nmid-year estimates, in thousand person s)

'East Cameroon West Cameroon Federation

Male Female Total Male Female Total Male Femnale Total

Total population 2,290 2,350 4,640 592 604 1,196 2,882 2,954 5,836

13y age group:

Under 15 999 1,000 1,999 276 289 565 1,275 1,289 2,56415-29 568 575 1,1143 160 170 330 728 745 1,47330-149 452 471 923 120 111 231 572 582 l,15450-614 194 217 411 30 88 58 224 2145 469

Over 64 77 87 164 6 6 12 83 93 176

Of working age (15-614) 1,214 1,263 2,477 310 309 619 1,524 1,572 3,,096

Sourmes: Slee Table 1-2

TABLE 1-5: CAiMIRiDON - EMPLOYfTIENT fl GOVEmEiNT,19166 - 1969

GrandFederal Easr, Cameroon West Ciame-roon Total Doily paid -tXff

Estab- Armed Unestab- ibtal Estab.- Unestab- Total Police Others Total Federal Eastlished Forces lislhed lishel lished Budget Cawerocnciviil civil civil civil Bud.etservant servants servants servants

October 1966 3,6C3 6.COO 1,60 0200 4,202 3,500 7700 .... #3,100'i 22,000 8,7002/

October 1967 4,300 6,500 3,700 1¾,500 t,800 4h,L00 9,300 #3,300±! 27,100 ...

OctoLer 1968 . oOO800 7,000 4,,1C0 15,900 5,800 5,000 10,800 900?] 2.600-/ 3,50028' 30,200 9,9C)0Q/ 5,800f-/.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~W 00 .. ?2

Oot64er 1969 7J600 7,100 3,900 18,600 4100 5,200 9,300 2 ;.8O(?/ 2 ,0L 30,7 / 1oj Soo/ ,50t

1/ Estimated2/ Fiscal year3/ Police has been Federal since July 1969T/ 2000 employees should be added to account for absentees as in years before

Source: Presidenice de la Republique, Services Rattaches.

TABLE 1-6: PERMANENT EMPLOYME-NT -IN FAbT CAMEROON, BY MAJOR SECTORS AND SALARIES, 1964 - 1966

(distributed salaries 'Ln m:Lllion C;FAF, average salaries in CFAF)

…1 96h - 1965 _ 1966

T'otal Total TotaLT

wages and Average wages and Average wages anclAveragePermanont % of' salaries annual Permanent , of aalaries arnnual Pe;manunt % of salarica arunual, oyees total psLid out w a L empjoyees total paid out w:a empcloyees total Eiaid out wage

Public sector: 2t,097 26,1 n.aL. nna. 26,601 25,1 n . a n4.a. 01.490 25.0 n.sn. etn.

Private sector:

Tigi;irkry 211,6t45 20.9 1,5g1.5 72,,000 19,916, 18.8 10492.3 75,000 20,871 19.0M 2,075.4 99,000Secordary 17.787 17.1 :1,919.0 220,000 20,393J 19.3 l,580.B 225,000 24,911 22.1 5,239.4 21Ot000Tertiary 37i,202 35.9 6,747,9 181,000 38,970 36.8 7,056.7 181,000 36, 51 33 .1 8061.2 220,00o

SubtotaL 76,63h 73.9 12,228.4 160,,0Qo 79,279 74.9 13,1259,8 166,000 02,353 75.0 15,376.0 18i7,00

Total 1031,731 100 n.a. n,,ao 1o.800o lIQO nf.a. nifL. 109.0.3 10o n.,a, Ml.&.

Source: Labor Statistics for East Cameroon,, 1966, Ministry of Labor and Social Affairs.

TABLE 1-7: CAMEROON - EMPLOYMENT OF AFRICANS IN THE PRIVATE SECTOR

1965/6_4 19664/6-7 196A7 /68.L7w,l Ju)L~ ___7____________I _I_____w__

A ~~~ ~~ -- '.1i-1 L,r% -14 r%rfrs ' ru

Manufactur-ng 114,600 21,200 21,200

Construction 15 3 3UC 17 ,100 17/,400

Electricity, gas and water 2,100 2,200 2,200

Transport, storage andcommunications 2,00K1 2,100 2,10C

Commerce 18,600 25,200 26,400

Other services 5,20) 6,800 7,300

Total 92,20) 111,400 115,200

Source: National Statistics Office

Table 1-8: CAMEROON - ENROILMENT IN PRIMARY, SECONDARY AND TECHNICAL EDUCATION(1965/69)

PRThARY GENERAI SECNDARY GE:NERAJI SECONDARY' SECON'DARY TECDlE[CAL SECONDARY TECHNICAL(first cycle) _ (second cycle) _ r(first M1_ _ (second cycle)

Regiorn Public Private Total Public: Private Total Public Private TotaL Public Private Total Public Private Totai

Center South 111,808 148,554 260,352 3,632 l0,604 14,236 670 972' 1,642 922 2,:L49 3,071 282 -

Coastal 5;),237 76,931 131,168 2,918 7,771 10,689 8B8 701 1,589 939 4,971 5,910 414 248

West 93,52L 78,237 167,751 2,130 :3,524 5,654 311 31, 660 142 630 772 - -

E ast 28,66Co 18,475 87,135 546 640 1,186 - 21 21 - 395 39S - -

North 58,453 17,869 76,322 1,052 367 1,419 93 48 141 163 - 163 17 -

I Total East Cameroon 346,682 333,066 682,708 10,278 22,906 33,184 1,962 2,09:L 4,053 2,166 8,145 10,311 713 248 961

II Total West Cameroon n.a. n.a. 180.090 63711 :3,894-/ b,531y 1 / nr.a. J/ n. al/ 1,783!! 4/ B/ AtICC Total F7ederaLtion n.a. n.a. 862,838 Secondary General: 41,768 Secondary technical: 13,06C)

1/ No ci stinction is made in West Carneroon between first cycle and second cycle.

Sources: Secretariat d'Etat a lEnseignement du Premier Degrg:"Statistiques des B3oles Primaires"

Minist6re de ltEducation de :La Jeunesse et die la Culture "Annuaire Statistique 1968/69f.

TABLE 1-9: CAMEROON - ENROLLMENT IN HIGHEREDUCATION

(1968/69)

Public

University of Yaounde:

Law: 881Arts: 314Sciences: 3l1E.N.';.j: 204E-,.F A2/: 69

TM Am 3/ 100

T v 0 4I

Total public 2,012

Private

Grand Seminaire (Nkol-Bisson) 75

- __ -. I- A ! Mi ± - w _ f

rLu±uLe uLe 111tiugLe JVvu Iit ULiuuI I

Total private 86

Total hlgher education: 2,098

Cameroonese students abroad: 1,300

j E.N.S,.: Ecole Normale Superieure (training of teachersfor secondary educatiov.

E.F.S.A.: Ecole Federale Superieure d'Agriculture.3/ E.N.A.M.: Ecole Nationale diAdministration et de

Magistrature.4/ I.N.';.: Institut National des Sports.

Source: Ministere de l'Education de la Jeunesse et de laCulture: "Armexe Statistique 1968/69".

TABLE 1-10: CAMEROON - PRIARY TEACHER TBAINING, 1967-68

NLumber of Inrtitutions &rolLwnts e leve1For n T For r F o _ _ _Inst. _Output of'/ o

- _,nitwws_In9t. Ad4_ I tutej% Total Honiter Adj Inst. TotEl j Qaified1 Te&chers (eet.)

ILkST Public 4 3 1(+1, 4;/ (+1) 207 558 138 403 2!0

CAlEGIOON Private - 1 980 . _ 0 …-

Sub-Total 15 3 1(+1) 19(+1) :L187 58 138 1383 20

MESm Pubplic _ 1 1 l5 -_ 115 140

CAMOIOON Private 10 1(+14) U .LL(+4) 1464 331 1795 140

Subi-Total 10 21(+4) 12(+4) 11464 14146 1910 180

Pubtlic 4 4 1(+1) 9(+1) 207 173 138 5iB 60CAImROON

Prirate 21 (+4 : . 22(+4) _7.74 3 " . ?7 _2Total 25 5(+4) 1(+1) 31(+5) :2651 4 138 3293 2(N

i/ Moniteurs or non-qualified teachers,E/ Instituteurs-Adjoints or Grade II qualified teachersy/ Instituteurs or Grade I qualified teachers

(+) signifies iBnstitutions already included in previous figKures >/ Not including non-qualified teachers achieving qualified status throug]h external examination

~Excludes Grade III emergency Teacher Training Colleges

8ource: "AppraisaL of an 'Education Report, in CameroorL" IBRD Report No.P]E-5(a), July 1969.

Table 2 1: CA1EBOOi -- EXPNDI'TUREiS cMN GDIP

A. Use of resources( CFAF bil]lionr)

1964/6 1965/66 1966/67 1967/68 1968/69

1. GDP 174.2 181.4 191.8 211,.3 227.6

2. Trade and non-factor services 1.4 5.,4 4.6 7.1 1.0

3. Resources (1+2) 175.6 186.8 196.4 218.4 228.6

4. Consumption 150.6 158.9 166.4 186.7 1'36.2Public consumption 28.4 31,,0 :31.9 34.6 .36.9Private consumption 122.2 127.,9 1:34.5 152.1 159.3

Ir. irve stment 25.o 27,9 30.0 31.7 32.4Public investment 8.5 11.4 11. 8 13.1 L3.5Privatte investment 16.5, 16,5 cL-.2 ]LU .:L8.9

6. Uses (4+5 = 1+-2) 175.6 186.8 196.4 218.4 228.6

B. Financing of investment(C'FAF billion)

1. Irnvestment (gross domesticcapital fonnation) 25.o 27.9 30.0 31.7 32.4

2. Current account deficit 6.7 10.,9 L0.4 12.4 6.oNet inflow foreiga fLnds 5.o 8,. 1LO.2 10.3 lo.6Urse of re-serves 1.7 2.9 0.2 2.1 - 4.6

3. Gross national savings 1,8.3 17.0 19.6 19.3 26.4Government savings 2.8 3.0 1.3 2.4 5.5Agricultural. stabilisation finds.1/ (15.5 14.0 :18.3 ) 4.6 6.o5r J-v ate Jav> ( ) 14.9

iTh7c7luding Weste Caneroon Marketing Board in percent of GDP.

Source: Official national accournts adjusted by mission.

TABLE 2-2: CAMEROON - IMPLEV-ENTATION OF SECOND FIVE YEARPLAN - 1966/67 and 1967/68

(in billions of CFA francs)

Implementation-1966 //7 -d 0°67 /A

PercentagePublic Private Total Percentage Expend of Plan

General Studies 2.28 - 2.28 1.4 0.39 16.9

ProductionAgricuilture 11.56 10.83 22.39 13.5 4.31 19.2Livestock 1.85 o.o6 1.91 1.1 0.27 14.1FishLLg 0.37 1.69 6 -Forestry 1.09 4.90 5.99 3.6 0.58 9.8Lnerair- Mi nesj

Inidustry 84t 35.58 39.41 23.9 13.61 34.5Total 15.71 53.-06 71.76 -T 2.Industry ~~~~~~~~~~~~~71.76 2.

InfrastructureRoads, Bridges 15.55 1.00 16.55 10.0 3.39 20.5Ports, Waterways 1.62 - 1.62 0.9 0.22 13.5Aviation, Meteorol-

ogy 2.37 - 2.37 1.4 1.11 46.8PTT 1.75 1. 05 2.80 1.7 0.35 12.5Railways 18.44 - 18.44 11.2 3.34 18.1

Total 39.72 2O Z1177 258., 41 20.1

-Social ServicesPublic Health 3.70 0.35 4.05 2.5 2.27 56.oEducation 7.19 2.73 9.92 6.o 3.16 31.9Youth, Sports 0. 47 - 0.47 0.3 0.11 23.4Housing, Urban

S7 PA I 770n -I 70 21 1

Total 19.2 .0 1 29

Information 0.85 _ 0.85 0.5 0.11 12.9

AdministrativeEquipment 2.65 _ 2.65 1.6 2.66 100.4

Total 83.45 61.89 145.34 88.0 38.0g 26.2

Commerce, tourism o.96 2.70 3.66 2.2

Yotor Vehicles 0.15 16.03 16.18 9.8

Grand Total 84.56 80.62 165.18 100.0

Source: Federal Republic of Cameroon, The Second Five Year Plan and Rapportdi cecution des deux premiAres ann6es du plan.

TABLE 1-1: CAMEROCN, BALANCE COF PAYMENTS

(in billions of CFAF)

i9t w 19d16 196,3 1964L 196,5 19665 7 196T--f 1969

Ex-ports +214.8 +3().0 +34.8 +36.1 +35.4 +36.9 +359.1 +48.6 +59*4

Imports -23.7 -28.3 -31.6 -32.9 -37.4 -36.1 -4L6 J4 -46.3 -53.0

Trade Balance + 'L.1 + 1. 7 + 3.2 + 3.2 - 2.0 + 0,.8 - 7.3 + 2.3 + 6.4

Freight/Insurance - 0. 4 - 0.7 - o.8 - 1.0 - 1.2 - 1.4 - IL.5 - 1.7 - 2.0

Travel o 0.4 - 0.5 --- o.6 - 0.7 - o.8 - 0.9 - 1.0 - 1.1 - 1.2

Fsmtor Inc^me -6.1 - ',.6 - :;.2 - 5'.2 - 5.4 - 5.6 - 5.9 - h.6 - 5.4

Other Services +06 + 0.1 - 0.0 - 0.3 - 0.7 - 0.5 - 0.6 - 0.7 - 0.8

Current Account Balance - 5.3 - 5.0 - 3.4 - 4.O -10.1 - 7.6 -16 .3 - !'.8 - 3.0

Off'icial Transfers + 5.5 + 6).6 + 5.7 + 5.J1 + 6.7 + 6.7 + 'i.0 + 1.7 + 5.9

Capital TransactionsDelbt Repayment - 0.2 - 0.4 - o.4 - 0.4 - 0.4 - 0.5 - 0D.5 - (.4 - 0.4Official + 0 9 + 0.8 + 0(.8 + 0.7 + 1.3 + 1.9 + L.6 + :3.0 + 3.3Private and Errors and Omissions - 0.1 - 0.3 - 3.1 - 0.2 + 0.3 - 2.2 + 15.6 - :1.6 - 3.2

2JChange in Foreign Assets - 0.9 - ,2.3 + 0.2 - 1. + 1.9 - 1.2 + 3.6 - 2.9 - 2.6

V- Refers to E Lst Cameroon oniy. 7 Official figures adjusted for underval1uation of banania and tobacco export,.3 (--) = increase, (+) = decrease.

5Ourcas; a E.v-.s a .t. "4. b-A .. +, 4,.4g1 g a, 91'i,1 1 3= ^O.d3--3 1b? ("anvyn, 4r ftyrei4n aqeat-q- see

Table 6_1; c) All other iLtemsi: M[ission estimates based on information supplied by the CameroonGovernment and by the goirernmnents of the principal aid donor countries.

TABL 2-L CAMEROON - PRINICIPAL E`XPORTS Bi VALUE ANN VOLUMETJir billion of CIFAF and thiousands of metric tons)

1 961 1962, io?63 1964 1965, 1966 1967 1967 1968 1969 1969

Voicer Value 'Volum,,e Value Volsn:c salue "Jolu-e Valuze Volujne valealu ar Value Volume Value Value in Volume Val-ue Voilume Value V.alue izs 11

COCOA,1~~ Beans 7 ~ian: 58.3 6,os9 3~~~~~~~~~~ ~~~~9.9 6,421 72 0 E 539 693 69~.2 6,997 71.1I 6,44-5 65.5 E,8,879

Weet 7.3 497 6.4 557 tŽ6 9 51, 59?3 6. 6 812 ,0 643 4.3 5192i,ederation 3. 6, 751 oh.3 797o Th? s,971 59.0 C 673E39 7778 7.39 7,0865 49.6 9ET n9c24 65.6 10,7214 73.8 16,519 2.

Products and by,produc~s (Federation) 16.4 1,839 4.7 18.9 14,004 20.9 6.314 io.6

COFFEEiEa.st 35.5 5,121 38.1 5,216 4o.1 5,680 69 .7 61 ,303 92~. 9 6;,653 59.14 9,527 56.6 9,597Wer

t, 9.3 650 3.0 529 7.1 644 3.1 104,6 5.5 1,189 -.9 1,371 6.6 1 035

Federation TRi) 5,771 31.1 5,765 ITT'S o,32T 50.1 9,349 37)36 7,89 o= 88 32 S3 27.7 735 12,603 68.5 11,828 1.

DIUANAŽ1ŽEas.5t 513 81 52.94 8112 55'.3 887 6t. i 979, 68.8 i,102 96.5 799 34.9 550Ne5t 88.'L813 1577 97,. 6 771 54.5 909 50.2 785 17.0 182 14.1 166

Federation 159.7 1,.' 133.7102.9 1,650 1137i 78656 1190 4667 3176 931 3313 716 1. 35.8 1,086 '.6.5 1,593 2.

PALM Y7ERNELSEa,' 14.5 -.00 11.0 324. 14.6 444 13.6 429, 15~.5 585 1?.2 428 12.6 907West 2.5 61 ~ 5 58 9.6 150 6.1j 19)2 6.0o 2 09 4.0 125 4.7 129Feieration 17. 3 --71 176 '. -32 19.1 -779 594 37S ill7 21.5 73 6. 7'S 13 '7 1.4. 20.9 8oo 16.1 550 0.9

PAIW, 0t1,Crudeden5t 6.2 '.67 3.6 199 4. 8 199 8.7" 914 12'.9 75~'5 5.7 22 8 9.8 457 1.2 7.3 286 6.3 243 o.4

East ~~~~~~~~~~~ ~~148.1 1, 3) i4.49 1,217 179.5 1,531 205. 1i,840 Ž00.7 1,873 2,41.3 2,244 268.4 2,589West 116.0 911i 290 636 95.0 325 50.0C 450o 31.1 Ž88 19.5 176 1.2 10F~ederation 5.7- o1- 2,2 2;07 9 3853 7- 53. 1,565 255.1 2T 22,290-- 7713 -,I6 56073 52772 0 -289-.6 T39 6.7 321. 5 2,974 380;8B 3,939 6.6

RURBER, natuxal-Eaf-st 4.9 663 3 9 5118 4.1 517 3. 7 920o 9.0 437 4.3, 960 4.9 434West 9.2 592p 4.1 592 3.3 948 5.5 686 6l.5 783 5.5 995 6.8 663Pe:lera Lion 9.1 1,55 07 375605 'u i9s 116 05 1,2-20 79-8 1,05-5 11.F7 1,097 2.8 8. 4 733 10.4 1,111 1.9

10.3 1,6 2. ,8 1.4.9 2,093 1 7.0C 2,29)1 15.9 2,232 i82. 6 2,5472 ,6 . 16.8 2022 22.6 2,897, 4.9

I KA227j2East 9.9 367 7.8 317 17.7 "17 18.1 662 10).6 423 5.9 230 3.1 131Federation . .. .. . . ... ... . .. ... .. ... 8.9 35,8 0.9 i-.> 271 16.7 750 1.3

ALtJtSITfstN, and by,productsFiast 96.0 14,758 51.0 5,9'4 35~5,471 48.' 5,tli6' 46.1 4.,9~3 46.6~ 5,096 48.0 5,3'2 1-/ 33.6 37. 3,5190 45.o 6,461 10.9

oThE-R E)T0BTt 3,478 5,,77!6 3,786 3,900 1,0B7 5 ,01r7 4, 084 10.5 7,927 7,271 12.2

TOTALL EXPORTSEast 29,2C3 25,262,11270070 '63,1

Went 2.85 9~~~~~~~~~~~~~~~~~~-74161 96 L6Federation 158 lr32:j3,__

EXPORTS, ADJ0220 1 (:2;',956) (34-778) (36,113) (3,6)(6 ,382) 39,072 100 T75665 - 1001

1/ Official fig~ures adjusted to, tak.e inito account the nt~cual valuie as' nut tie 'valeour ,nercuriasl• aD' isnanac (in -1908 an, 1969) sod tobacco (is 1.968); correcltions oDf the enit.ial figures forexports to shie o i, cc 00i050 counl;ries (1967) and alissinito; exoortc (19-67).

Source; Qlusri .'riy Economic Rulletici and Customsr Statist'~is.

TALBLE; 3-3: C0 HERO] - COMPOSITIONI OF IMP1ORTS B82 VALUE AlED VOLUM'E

(is billions of CEARI and thouswads of metric tons)

1)61 io)64 10651 1966 lo67 1967 1068 1969

Federation Federation Federation Federation Foderatioc Federation Fedecrationi. FedierationValue Vau value Valu e olse ValueQUm Vuinse Value Volume Value Volume Vaslue

Foodstuffs, drinks, tabaccn 4.58 4.51 4.65 5.33 117.52 5,23 ... 5.61 100.85 5.18 100.88 5.16

of which etockfiah 0.55 0.11 0.75 0.1 5 110 0.22

condensed wand powdered milk 1.94 0. 21. 4.32 0.49 3. 08 03race -~~~~~~~~~~~~~~~~~~~~~~~~~,~~o 32 0.25 8.7 .3 O1.28, 0.52

wheat flour 23.53 0.67 cI .16 0.33 i0.80 C.28

refi,ned auger 12.86 o.6i 1 3.08 0.55 8.c 0. 37

beers 4 .33 0. 23 7. 72 0.59 7.5L6 0.59

salts, other 25.15 0.19 18 .91 0.1 6 18.712 0.-1 5

F'uels end lubricants of 1.83 1.79 1 .59 1.50 201.15 2.05 .. 2.21r 2:22.35 2.32 2455.11 2. 62which regular gasolines 57.92 0.52 6S2.56 0.56 64.5;2 0.58

premium gaso)lines 6.11 o.oS 9.31 0.09 12,68 0.1 2

jet fuel 37.09 0.32 43.59 3.39 48. 2 0.53 1

gas oil 62,77 0.48 69.10 0.57 69.16 0.-5 8fuel oil 15.85 0.03 15.81 0.09 25/1 3 0.17

lubricants, other 5.99 0.33 6.37 0.36 6.73 0.51

Crude products of vegetable origin 0.32 0.30 0.42 0.35 1C. 82 0). 5 ... 0.56 39.51 1.96 36.12 1 .02

Crude products of minera origin 2.143 1.95 1.81 0.91 78.70 1 36, 78z7O 1 36 R5.9/ 1.lIcA 91 .69 1.55

of which aluminium oxide 73,70 1.28 79 .78 1 .3 8~7.55 1.36

emsi,aanufantures 3.5 5.66 5.19 5.11 295..51 6. 95 ... 6.55 291.35 5.76 21.1.-25 51.92

of which ma.tt 6.85 0.29 7.10 0.28 8.10 0.30

water cements 127.39' 0,65 1554.36 2.75 9 0.25 0.58

fluorides and salts 5.15 0.35 5.61 0.31 5.35 0.42nitrogenous fertilizers, other 27.15. 0.39 36.58 0.53 51.23 0.52

sine or lead-coated sheet metal 4.71 0.33 6.56 0.52 3.20 0.23

Transport andhtractiosceq-uipmsent'c 2.19 2.L3 3.56 13.32 12?.00 4.26 ... 5.16 12.72 5.19 13.36 5.6o

-zof whichi private cars 3.28 1,50 3.68 1.55 3.93 1.82

trucks 5.35 2.03 5.82 2.23 4.85 I .96

Agricultural asehinery o.i8 o,18 0.27 0.22 0.57 0.20 ... 0.18 0.95 0.32 1 ,o8 0.35

Industrial machinery 2.69 2,98 5.52 5.02 21.21 !5 .0 ... 5.1. 15.85 5.11 15.57 7.12

of whichdiln ber 1 I12 0.56 1 .28 25 .5 28

generating equi.pme:nt 0. 51 D. 56 0.51 0.50 o.6o D-.55

Household consumer goodis 7.95 7,22 7.69 5.67 25~.58 7 .50) ... 6.586 20.76 7.56 27.51 9.37

of which medicaments 1 .21. 1.13 1 .28 1.15, 1,.52 1.39

disinfectant for retail sale 1 .75, 3.31 1.02 0.27 1.12 0.25

footwear 1 .23 0.8i 1 .30 2.55 1.53 0.93

electric batteries 1. 9.19 1.51 0.25 1.55 0.28

Esiesand industry requisit~es 1.17.79 .3 61 10 . 1:1 7.95 12 .35 55.55 15.50

of which tires of over 2 kg. 1.97 0.k 1 95 3.67 2.39 0.71

paper arc] cardboard (for sc-h-o ,,eel 9.72 0.97 11 .28 1.11I 13.25 1 .1 5

natural, bleached or dyed cotton 1.1ZJO3. 2.'. ) 0~

printed cotioc 1.2 3.85 1 .i 0.8i1 1.11 1 .09

synLinetic anqd artificial t'abrics 1 .11 1.1 1.3 1 .,07 1.23 1.51I

?OTIAL 81 2 .5 7>9 1;,11 211.75 22)it2 731.23 L 7.76 7 ,35)7 5.32 822.91 53.30

Source: l1uarterly E-no-oic Bullotini and Customs 7lani I, ins.

TABLE 3-I: CAMEROON - EXTERNAL TRADE TO UDEAC

(in millions of CFAF)

16b Export Import Balance

Tchact 734 53 681

RCA 812 114 698

Gabon 1,030 1,359 -329

Congo (B) 535 631 -96

TnT.'1 3,111 7

ii- '- ,'

UCtUUi 8792416,

Congo (3) 710 687 23

rnrvn A T 1)~' 'Q f\I I vI 1,28 2,749 531

Source: Statistiques du Commerce Exterieur du Cameroun,

.ABLE 3-5: CAMEROON - TRADE BALANCE BY MONETARY ZONES(in billions of CFAF)

1955 1959 1963 1964 1L965 19,66 1967 1968 1.969

ax-port

France 7,9 14,2 16,,6 18,6 ]L4,8 13,75 12,0 17,7 zL9 Sterling area 2,5 3,4 2,,7 2,0 1,6 1,4 0,9 -

U.S.A. 1,9 2,8 1,,8 2,3 3,3 5,2 4,9 - _EEC (without France) 4,7 6,1 9,,6 2,0 11,3 10, 5 13,7 15,2 24,2Other 2.8 26 2,6 6, 0 60 -

Total-/ 19,8 32,0 33,,3 34,5 34,4 35,9 37,5 48,6 59,4

import

France 11,4 12,3 15,,7 17. 3 19,LL -ICj2 2 21,

Sterling area 1,7 1,8 3,,0 2,3 2,6 IL,1 1,5U.S.A. 1,6 1,8 2,,5 2,4. 3,2 2,5 2,1 -

EEC (without France) 1,6 2,3 3,,6 4,7 5,9 6,7 7,3 8,4 10.3Other 30 3 6 j86.26 6. .66 - -

Total 19,3 21,9 31,,6 32,9 37,4 36,1 46,4 46,3 53,0

52.6 51.9 53.2 55.8 52.5Trade Balance

France -3,5 +1,9 +O,,9 +1,3 -4,6 -5,7 -13,9 -6,6 -6,8Sterling area +0,8 +1,6 -°0,3 -0,, -0,1 +0,3 -0,6 -

U.S.A. +0,3 +0,1 -0,7 -0,1 +0,1 +2,7 +2,8 - -EEC (without France) +3,1 +3,8 +6, 0 +4,, +5,4 +3,8 +6,4 +6,8 +13,9Other .2 +1.8 -4 = -2.9 -. J 6 _ _

Total/ +,5 +10,0 +1,07 +1, 6 -3,0 -(,2 -8,9 +2,3 +6,4

L/ Non-adjusted export figures except; for aluminium exports in 1967,. Trade balance does therefore not correspond with data in Table 3-1.

Scurces: Nationa1 Statistics Office andRapports de tutelle (for 1955)

TABLE 3-6: CAMEROON - FOREIGN AID DISBURSEMENTS

(in billions of CFAF)

A. GRANTS1965 19667f i98 ir7

FACBudget support 5,.0 - -

Technical assistance 2.00 2.00 2.00 2.00 2.00Others 1.30 .L 016.

Total I.80 4 48 3 46 3 63 3 0

FEDFirsru FED program 2.28i 1.62 -.- I

Second FED program 0.36 0.40 0.57 1.34 .61mT_ __n _ _o eA I 1 ,A ,,. I,| u a- 2.95 2 .6o 2.197 .W 44 .,

U.S. AID 0.33 0.37 0o4 At A2

United Nations 0.20 0.18 0.17 0.31 0.31United Kingdom 0.07 0.08 0.09 0.10 0.10Switzerland

Germany ~ ~ ~ ~ ~ ---- -- 0.56 0.56Total grants 7-37 7.79 6.31 7.68 5.93

B. IVANS

CCCE 0.31 0.99 o.48 0.98 1.56FED - - 0.07 0.05 0.19EIB 0.30 0.30 0.30 0.22 -

U.S. AID 0.70 0.50 -0.26 0.84 Kreditanstalt fur Wiederaufbau - 0.30 o.40 0.21 -

IDA _ - 0.12 0.64 1.47IBRD - - - - 0.5

Total loans 1.31 2.09 1.63 2.95 3.27

TOTAL 8.68 9.88 7.94 10.63 9.20

ourcpe: Data provi ded hy the Canmeroon Government and by the main donors, ad

estimates by the mission.

TABLE 3-7: CAMHERO.)N - FORSTl, AID: 'D THST AN'D SECJTLD FKI) PROGFLIN - COIIllEVI-S FOR ffS:TMENTS,

AS OF DOSCF4BF 31, 1i969

(i4 thousands on US$ equival,nt)

Total Total lY~ n~

1960 1161 1962 1963 i9ti6 first FED 1965 1966 1967 1968 1969 seocnd FED Valuer Percent

GENERAL STUDIES - - 247 920 *- 1,167 _. ' _ _ _ _ 1,167 1.3

PRODUCTION:Hydraulic 249 - - L2 391 391.Agriculture _ 717 _ - 717 - - 6,482 6- 64,82 *

Livestock _ lo500 - 335 835 - _ . _3Forestry anud Fisher'es - - - - - /3 /" ITourism and Industry I_ -7 16 - L 6407 1,64t)

Total 2h9 1,217 2L47 177 - 1,943 - 6,L82 1,[40 - 15,122/- 10,065 11.6

INFEASTRUCTRERoads . 5,789 Z1,855 453 - 11,107 2,937 - - /3 1 2,937 lU,ctI

Railroads 729 75 15,000 15,834 - 1,130 1,JjOO 20,001 2:2,531 38,335AirportsTclccc ommnition s _ _

Ports 3 565 892 - - h4,457 117 4,5711Powe rThis 1 3,565 7,iLt0 iL,94u0 ;5w53 31s36U 2sN 4,1301,368 2,937 ,it517 20 1 25i585 53 95 2- o

SOCIAL SFerCoRSEducation - 1,0s9 6),1bl 85 1,203 8,798 8,791Health 82 2,107 _ _ 2,1859 6,158 5147 6,705 8,89[Spor t and tulturELI affairs - - - -

Informs .io:nTowrn Planning -. - 227 - - 227 - 227Total 82 3,176 6.668 85 1,203 11i 21I 6,158. 547, - - - 6.705 17,919 20.8

ADMINISTRATIVE IR1RASTPUCTURE -. - - - - - - 247- - _ 247 2L'7 0,3

GRAND TOTAL 3,896 11,803 1L,608 16,935 1,2D3 I45,692 2/ 9.095 1.924 6.482 1,517 20,001 40.659 86.3511L2 :0OO..

L/ Aid for Produiction, Aid fo7r Diversification, Tied TeccIiical AssistancP a-d TI- ri!cal Coopcratton ' -r-. - the second FED a-"' -o. *r11eluded in thi- -1-j.

They amoounted to a total of the equivalent of' $9,887 rmilli.on as of Dec-Mtcr 31, 1969.

2/ Includes the projects for the equivalenlt of $864,ooo in the first FED f'or whith the "Simplified Procedure" was used or whi,ch caem under a management

common to several projects. They are listed under the yeaLr they were first nogoti aed.

3/ Loans

4/ Of whinh $5 millior equivalent is a loan

Source: FED

TABLE 3-8: CAMEROON - FOREIGN AID: FIRST AND SECOND FED PROGRAMDISBURSVEMENTS AS OF DECEKER 31, 1969.

(in thousands of Us$ equivalent)

FIRST SECUIwFED ~~FED

General studies (Invest.) 1J 19

Production (Total) 2,072 6,970

Investment: Hydraulic 428Agriculture 726Livestock 918 _

Improvement of agricultural structures - 5,389SUnnort for agricultural prices - 173Technical assistance - 138

Loan: to agricultural sector - 1,270to industry _ _

Infrastructure (Total) 31,830 1,980

Investment: roads 10,148 74railroads 16,969 1,130ports 4,723 1.

Diversification assistance n9Technical assistance 57

Loan Railroad construction -Rolling stock and equipment

Social pro.jects (Total) 12,160 4,549

Investment: Education 9,009 4,h78Health 2,852 _Townplanning - _

Technical assistance 71- ~~~~~~~27

lwWn±Wtrative Infrastructure (Total) di

Investment 9Technical assistance 29Technical supervision 980

GRANUD TOTAL 47,231 14,516o f whi chInvestment on subsidy 47,231. 5,691Improvement of structures and

diversification assistance - 6,108Price support _ 173Technical assistance and supervision - 1,274Loan 1,270

Source: FED

TAILE 3-0: C^MMEOONT - FOREIGN AID: FINTrtAMTIAT ASSI:ST-CmAWE FRC)M F..t.C. - COM1ITMENTS(in millions of Frenchi francs)

1959/60 1961 1962 196 1964 1965 i.966 1.967 1968 1969 I'otal

GENERAl STUDIES 53 211 439 92 147 72 - 1 _ 1 linR

PRODUCTIONHydraulics 136 129 8(6 68 100 - - _ _ - 519Agriculture 643 344 77 115 8 171 236 624 6 628 2,852Livestock 18 14 23 1, - - - - 118 - 186dorestry and Fisneries 86 55 99 110 - 110 - - 460Tourism and Industry - - 57 - - 35 - 136 70 134 431

Total 883 542 34D 305 108 206 236 870 194 761 4,447

INFRASTRUCTURERoads 295 444 305 1283 900 986 462 202 - 23 3,74,Railroads 165 355 315 185 - - 500 - 691 - 2,212Airports 40 65 32 19 - - - 5 - - 151Telecommunications _ 38 - 48 _ _ 20 _ 275 - 381

Ports - 50 _ 3 _ _ 5Power - - - 84 36 - - - - -PC

Tctal 500 892 653 464 985 986 985 207 o66 23 6,660

SOCIAL PURPOSESEd.ucation-trainin.g 172 18 12 52;4 - 544 325 105 - 320 2,020Health 186 187 105 185 _ 82 64 20 10 838Sport and culture _- - 58 _ _ 58Information _ 118 71 22 54 - 16 69 30 - 379Townplanning 100 94 134 9'5 30 22 - 251 15 - 739

Total 458 4LJ6 321 884 84 566 423 489 65 330 4,035

AEMINISTRATIVE INFRASTRUCTURE - _ 2 53 - 22 - i4 13 - 109

GFAND TOTAL ],894 2,060 1,755 1,803 1,325 1,852 1,644 :L,675 :l,238 1L,114 15,360

Credits spent 762 974 1,302 1,364 1,317 1,239 1,368 :L,316 1,535 :L,063 12,24-IDirect payments - 40 73 151 50 65 108 149 94 20 749

TOTAL PAYMETS 762 1,014 1,375 1,515 1,367 1,304 :1,476 :1,465 :1,629 1L,083 12,990

Source: F.A.C.

Note: This table relates only tc "FAC local, head VI" and therefore includes only disbursement on project assistance channeled throughthe Caisse Centrale de Coop6ration Economique. Direct disbursements to multinational bodies and budget support are not included.

[;. , i: Ua' RY) J - I';O AIrJ:. IAi'.IKL ASS AISfA' £ 'FOil ;4.A . . DISBURSEMENTSvl7r, i,i Llion oL Frern-, frilacs)

Year signature of Tigreemcnt iot-.l a6 196, 196 i 197 6 1965 1964 1i363

Years oi' disbursement

1368: General expenditures 2.0 0 1.5 0 - 0.5 -

Production 8.6 0 6.6, 1.1 0.4 01.2 0.3

Infrastructure 13.7 0 1.5 81.0 3.7 0,5 0

Social projects 603 0.6 0.7 2.1 2.! 0.,1 0.1

Total (va;lue) 30.5 0.6 10.3 11.2 6.8 1.3 0.4

Total (ELS %) 1tO o 1.8 33.7 36.7 22.3 4-3 1.2

15969: General expenditures 2.5 - 0.3 2.0C 0 0 0.,2 0

Production 5.9 0.1 0.7 4.3 0.6 0.1 0.1

Infrastructure 11.6 - 1.0 5.8 3.3 o.6 03 0.5

Social purposes 0.1 o 0.1 2. 0d 0 4

TotLL (value) 25.0 0.2 2.3 12.2 5.3 3.0 0.9 1L.0

Total (as %) L0O.O 0.9 91.3 48.9 21.4 12.0 3.5 4.0

Source: F.A.C.

Note: see note urLder Table 3-9

TABLE 3-1l: CAMEROON-FOREIGN AII): FINANCIAL ASSISTANCE FROM C.C.C.E., - COMMITITENTS(in millions of 'French frEancs)

19-i5 '966 l-i r1'8 i969

Loans to the Cameroon Government 3.8 0.8 5.:3 22.7 4.2

Loans tc, pub:Lic bodies -. _ 10.0 - 14.0

Loans and participations in corporation in wlich the Governmentholds an interest r-'.0 10.'i _ 12.3

Advance to the Banque Camerounaise de Developpement(general advance . j _ ) _) -) 2.0)(public sector 2.0) - )7.3 0.7)1.7r 0.2)2.2 - ) 5,.3(:para-public sector - )8.5 1.3) 1.0 0.9) - )(private sector 6 .5) 6.o) - 1.0) 3.3)

12.1 ,32.1 27 L 24 9

Loans before 1965: 19<0: 4.4o 1961: 5.41 :1962: 12.56 1963: 12.25 1964: 1L3.69

Source: Caisse CentraLe de Coop6ration Economique

'ri.YrTj 1 1 ( n2,rI? - J-;s',- t r ZtI;r, r 'F PIII -rl ,',-l A ,, a 's j- r In 'L. kn 1f

i lrL i .)V s . s7i iii .i ,'Axi` 27, I9t0/7Ve'bvt repayabLe in foreign currency

(ifl ;:. - .invcr: of U;.S. do1iru's)

Debt _. sla._. _A_1A.tio!v-)ulr co Zwc:- 1L1_S Jau-4riary LJ19Æ'9

Disbursed lnz- .ii., to______ only undJ c od _ar-1h 27, 1.970

i0u#!tL :'.:EW;^i] FJiJl'Lt Ui_bJl J2 /3 1/4 783922 940

FPvivt-XtIm1;<y.I-3l dT-h t /2 83 774 77 ___20

.5v-,>' i>lJr=i ;i.:.,l b v _ ; 736

Cor;Iany -red. R3p. of)D- ................... - -

Lorm2 frs.s i.utenationzil

ll.:KlD 29 7',030 2rL, 9C)0ID 9 2,723 11,550 17,50ZJEuropean L'Dvelopmnt Funz . 6,b4E2-5vxopsan In-vostariont B3nk/2 4L,025 7,62&

LoI.13 .trca [roverr .rznts /2 y,3 7390 10,1I7 5 2&3F'rancsS /2 53,653 090 6Ge-iNn Uy (red. Rep. of )/3 3,279 10,109 ;It A1Y 14,14 L,38liraited Kingdom 1,?34 2,574 -United State!3 8.279 17.563 -U .- ,_ t . 4444 -.

E,7 la;it a,n o.ri-inal or extended rvaturity oi' over om3 v.3ar.JInlud13s dsbts pa;rable in French francs or CFA francs thich have been

converted into U.S. dollars, at the exchanve rate aFi dev-lorii i.nAulguat, 1969.

/3 Ir.Ilud:3s debts p,vable in German marks which have bAAn ron.vqerged irnt U,.Sdollar3 at the:xchange rate as rc7alued in October, 1969.

A Additional loans totallina U. S. $9.h'0-000 eAulivalent have e-ng reoete tto exist by.Caneroon. goviover, C'i'merooon has not yet replied as towhether ths3se debts fit olir dfirlition of prbli Adebt.

Sourcet ID - Staiatitcal Servics%. Mviriai.o

C; _ nG i:.,. r i3I : T, ~ , ,,~ T; r! A b, -I: U D - I -. lo ;;C i ..,t .- . - -3 ,13D 1 I?YJ . !,. 2 Z ., 7.1 u m A3 Or D507> .rI-Jt2 31, 19-5

i~ruiADDIIOPS hO"i'i MARCHi 27, 1970Breakdovin between amortizatiorn and i nterest

&,-bt r ,½m in. ForeiGn Currency

(In thousanmds oiof U. S. dollara)

DEBT OUT'STANID±i.GYE GS. (BEGINNING OF PEjRIOD) -

xc j l E TIt . .- r .LIC

'^tAPW zLVL ;iNA.L PUBLiC D2)bT

1969 122) 503 5,060 1,288 6.3)1819'70 11)Jh,y 7O9 3,192 1,712 91971 lGro$.16 4, 21 2,.126 63-451972 156,297 6,412 2,76-S4 9,1761973 l9tg ,35 J1ii 2,961 8,4019flj 1U,t 37 5,438 3,274 8,71219( 15 ~39 9 5 9o? 3,214 ,1I

.976 133,0)2 5,688 3,200 9,G03319*77 lo?e:->1 2 5,924 3,"93 921921V(3 121,210 5,304 3,2`3 v "7'79 . 11,90 5,53 83,2d

193O 110,323 5,267 3,117 9,C4 4ISP> 1 104,s356 5,-760 2,69Q3 8,6531532 98,590 5,053 2,680 7,73313Q2 oa -I C ccA 9 I.o3 ,7 na

... , k 7 4.A 4&I.C x L, CA ±1 Ausz 4' li L .LU AU jb±I I

of the Lolle r., for ;hich rcpa,ent teits am not availTblez

Daropoan Inves,tnent Banrk $ 2,68P1,00aiva-n from [ xover uncsnts

Franae 1,642,000aV. 4X,4000 IA .aiy I FrI ,

United Kingdom 840,000u . ;z . o . nos 0 4, 4441 0U

$ 2

Sourcas I1 Ctatistical Slrvices Division.

TAB3LE 4-3: ESTIMATE-D FUTURE SERVICE PAMiENTS ON EXTERNAL PUBLIC I)EBT OUTSTANDING INCLUDING UND)ISBURSEDAS OF DECEMBER 31, 1'368 WITH ADDITION THROfUGH MARCH 27, 19,70. DERB REPAYABLE IN

FOREIGN CURRENCY (in thousands of US dollars)

BREAKDOWN BY SOURC"E OFi FIINANCI'NG

1969 1971 1071 1972 197' .77 1975 197,6 177 1978 1979 198D 1981L 1982 1983 (Begin, of peri d)

'A 1,'14.17 1969 1983 1969 1983value ocreentake

6,368 h,97l 6,19 5',17. 8,101 8,712 9,181 9,D88 9.192 8,887 8,847 9,081 8,653 7,733 7,999 120,508 93,54.3 -

r: yc Lh.1d debt 152 1.2 245 14 171 fLF 1 _ 7 3 _ 3 2 774 0.6

'chiirl,l;i3s,ued bonds 5 4 h 4 4 14 4 3 3 3 3 3 2 38 2 e e

,n,liir. 4117 117 2h7 310 321 171 173 83 - _ _ - 736 - (0.6) _

n- s f r r Intcrnational Orcanieut on s 16 7l5 7 I j7h112 1 ,892 2,312 2 1O 11 3,4no 3.390 L.h26 h h99 h 283 j .036 29,777 57,811 243 61.9

.. i. . - - - - - -- - lh9 378 901 53 % 9 688 692 6,182 1,1l9 (5.4) (bh)

i .1. ^ 11.; 113 118 4 l 671 87., 8 76 74 675 L93 490 L9 h9 2hS - 4,7L5 237 (3.0) (0.3)

1.81.1:. - 213 116 813 1,8 1 s I,L62 1,1h3 1935 2,373 2,209 2,252h 2,857 2,861 2,859 :,85h 7,000 26,345 (9.B) (28.1)

I.D.A. - 73 113 1,9 171 198 201 27 297 323 375 b96 1h91 91 689 11,550 27,318 (9.6) (29.1)

Loam3 fror.c verne,,ets 0 L,352 _j361 ,21tD 5 i.23. 3i488 5,t91 , 8,183 4,950 L.69 4 3447 ,3,962 89 3 !. ;

Francc 5,372 2,976 3,792 ,,129 4,t1i8 4.D71 1,2i5 L,0,2 3,911 3,301 3,150 2 906 2,192 2,218 2,786 60,591 21,391 (0.-3) (26.1)

Ge: .l:.sny 353 1 ,12 1 ,79 1 ,83 1,759 1,736 1,010 186 991 607 536: 52.0 577 493 479 10,109 911 (8.1) (1.0)

Unit-d Kingdom 1'5 173 199 194 191 185 1 81 77 173 1i9 1j4 16O 155 151 147 , 1,734 566 (1.1) (O.j)

Uni8'ed St.te- 200 251 121 973 7911 908 1,712 1 ,0S 981 1,106 1,102 1 ,769 1,037 S5S 950 17,563 9,859 (14.6) (10.5)

3ote: Includen d er-ice on all debt, listed in Table 4- I ror which re -yprnt ter-- re ailalnIs

Sour-e, I.B.H.D. itatistical Service DivI sion.

TABLE 5-1: CAMEROON - CONSOLIDAT'D FEDERAL AND'STATE BUDGETS

(Actual revenues -nd expenditures)

(in millions of ZFAF)

1q63/64 1964/65 1965/66 1i66/6'7 1967/68 1968/6-2/

) R Fevenues_

I. BUDGET OF FEDERAL REPUBLIC OE' CAMFR00N

L. Total fiscal revenue i 6 A i1°oo ip p45 2Gn707 00 71 7 2_4.So L/

of wniuh: Business tran3action ta -

Taxes collecOted by the Customs Service | )"K | (W05) ( (24 (a,klS./Registration, stamp duty, miscellaneous I )D ) QII) (6) I

2. Revenue from State propsrty -ZOa (28) (28) (1o) (14)3. Revenue uccruing from o-eration of State service ] So 1 623 1,685 1,679 2,417 3,20C-3

of shich: Posts and telecommunsications 1878) t862) (1,030) 5a78) (1,2L.4) (1,478

. Contribuions, zubsidicss ard grants-4n-aid 3C 52 96 1 191Total ordinary revenues 1t,352 19,95 21,774 22,487 25,339 27,800Drawing fcom Reserve Fund tr0 2,025 2,250 2,150 _Subsidies 5 5; 1,000Total revenues 13.3a j z1,"6 214,799 2z4,73T r,489 27,800

II. BUDGET OF EAST CAMEROON

1. Tosal fisoal revenues $3 6,282 6,891 7,786 8,058of whish: Direct taxes and assimilated taxes (5,278) 337) (5,866) (6,756) (6,839) (7,a22)

Registration, duty (~337 ( (6,92) (6,8319)(72)14iscell-,eoius );1- (945)(,a,j) i;1,025) (38) (20)

2. Revenue from property U9 173 179 227 479 ...

3. Revenue from operating services 1m 140 14,2 L62 632 ...

L. Mlscells.neous I1 11 2 39 V19

Total ordi,sary revenue 6,356 6,6c6 7,214 8,514 9,188.

Dra.ing from Reserve Fund 60 416 _ 70 6/

Fcderal -ubsidy Jso 875 1,220 1,280 1,00W 650

lot31 ret-meaes J1.3 7,8r7 8,434 s,a64 io,iU± ..

III. BUD,ET OF WEST CAMEROON

Fiscal rev-nues "i 406 525 692 84B, B 2/ol' which: Direct taxes (k02) (381) (454) (555) (665) (no;

Registration, stams and miscellaneous duties (16) (25) (71) (137) (183) (I5L, '

Revenue cron operati,ng se:.vices 230 235 191 117 127)393

Mi-.elnoeeus revenues _76 64

Total . rdinary revenues 648 W1 716 885 1,039 1,248

Dra ring f'rDm Rccener Fr.-d 1, 402 73 135 80

Federal subridy 1,355 1,200 1,350 1,950 1,800 1,61.0

Tc,t.sB reveos:eu ssm6, 22,88CONSOLIDAIED TOTAL OF THE THREE BUD5ET0

TotaLl ordinary revenues 25,356 27,242 29,704 31,886 35,566 ...

Total d maings from Reserve Fund 765 1,468 2,098 2,455' 2,230

Outside rsbhidles 1 5fM 1000

Total, revenues 26,122 29,231 32,802 314,341 37,796

)CILxrell. L.spendituue

Federal Budget 12.95 14.86 16.24 19.39 21.52 20.87

East CEneroon Budget 6.93 7.65 8.31 8.96 9.34 10.60

West Ctm,eroon Budget 1.80 i.so 2.12 2.29 2.50 2.62

Total current expenditure ; z 1 7 30.6& 3 3.36 34.o

3) Capita.L expnditure

Federal Budget 1.lA 1.50 2.93 2.81 2.48 2.66

East C meroon Budget 0 3 0=23 048 0.68 075 0.51

West C smeroon BudgetTotal oapital expenditure ° °A 0.27 0 .L

S) Public debt oi. 0. . o0 aL *-,9 o.n

Total expenditures 214.31 26.89 31.Pi wl.il 37.39 38.36

1/ Certain figsres for 1968/69 have been estimated'/Fstmte d fi.rure3/ Eitimate bsase on the revessues af the Postal t I'elecosunications service as I percermtage of

total re-enue iron servicest/ Estimated on tle basis of ,/ and 4/

Bs d 000e- Orovision

TABLE 5-2: CAIv1EROON -- CONSOLIDATED REVENIJE, EXPENDITURE AND SURPLUS OF THE FEDERAL AND STATE BUDGETS

(in billions of CFAF)

19614/65 i(965/66 1966/67 196'f6 1'368/69 1969M/70Final accounts Final Budget Final Eudget FinaL Budget Budget

acocunts accounts accounts

Current Revenue

Direct tax 1/ 5.72 6.32 7.44 7.66 7.64 8.30 8. 63 9.01 9.378Indirect taxes 1L8.15 19.84 20.49 20.13 22.52 21.1 8 24.35 24.34 2T07

'Import duties 1L3.44 15.20 15.47 - 16.75 (15.58) 17.'74 (18.07) 20.19Export duties 3.41 3. 35 3.34 - 3.00 (3.-38) 3.23 (3.60) 4.36.Internal taxes 1.31 1.2|9 1.68 - 2.77 (2.22) 3.38 (2.67) 3.52

Dues 1.1c0 1.22 1.35 1.26 1.47 1.40 1.43 1.34 1.49

Other Revenue (includ-ing 3/PTT) 2.25 2.32 2.61 2.64 3.94 3.55 4.'75-/ - 4.05 .4.jo

TotaL 27.24 29.70 31.89 31.69 3,5.57 34.43 39.16 - 38.73 43.84

Current expenditure 24.141 26.7'0 30.64 29 .76 33.36 32.50 34.09 35.07 38.45

Current account surplus 2.83 3.00 1.25 1.93 2.21 1.93 5.16 3.66 5.39

Debt service 0.41 0.41 0.40 o.41 0.53 0.57 0.71 o.85 1.01

Balance 2.42 2.59 o.85 1.52 1.68 1.36 4.45 2.81 4.38

Capital expenditure 2.07' 4.13 3.77 3.85 3.50 3.71 2.95 5j/ 3.09 6/ 5.63+o.60- +0.60- 0.32-

3.5; 3- _5.94

Budget surplus 0.35 -1.514 -2.92 -2.33 -.1.82 -2.35 o.89 -0.88 -1.56

1/ Indirect taxes broken down in proportion to the budget forecasts for 1964/65, 1965/66, 1966/672/ Includes turnover tax; preactically the entire proceeds from this tax are derived from rnports3/ Part;ly estimated; the total for the year could, at t;he most, be CFAF 0.3 billion higher%/ Includes CFAF 0.34 billion under the Federal capital budget for 1967/685/ These amounts were nol; provided for in the budget; they were financed by drawdown of c sh balances (Caisse d'Inves-tisBeImet) atI

were presumably spent in the course of the year.

Sour_e: Budgets and Final Accollnts of the Fede.ral Government and Federated States.

'PADT t-' 5 A _vo1-i C ('clJ = TTnAqMMin pDnfTT MA(T AT AMU A('-TTATT .YWNTrhTqTrr'.P-

OF THE FEDERAL AND STATES BUDGETS. BREAKDOHN BY SECTCIRS

(in billions of CFAF)

Final FinalBudget Budget cort ugtac t odX1966/67 1967/68 1966/67 1968/69 1968/69 1969/70

Value % Value % Value Value % Value Value %

Current expenditure

By Sectors:G;enera± administration 7.38) 9.4Y.) 8.J98 9.11) 10.18)Pensions 0.16) 25 0.13) 25 0.19) 0.34) 26 0.32) 0.39) 27Foreign MAf rs 0.58 0.1 ._06 2 _ q _ . 2_ _Defense, Justice 7.25 24 7.85 24 7.75 8.37 23 8.19 9.15 23',ocial services 2.60 9 2.72 8 2.82 2.89 8 2.97 3.0L 8Cultural services 4.80 16 5.o6 15 5.07 5.56 16 5.53 6.00 15Economic affairs 6.79 23 7.73 24 7.31 8.25 23 7.50 8.92 23I4iscellaneous 0.20 1 0.21 1 0.20 0.07 - 0.09 0.11 2Total 29.76 100 32.50 100 33.36 35.07 100 34.09 38.45 100

By type of expenditure:

Pensions 0.16) 53 0.13) 53 0.34) 53 0.39) 56Minor eauipment L.91 17 5.70 18 6.11 17 6.n7 16Maintenance 1.b3 5 1.46 5 1.61 5 1.70 4Subsidies, etc. 5.39 18 6.29 19 7.19 20 7.27 19Miscellaneous 2.OL 7 1.83 5 1.52 5 1.92 5Total 29.76 100 32.50 100 35.07 100 38.45 100

Capital expenditure

Infrastructure works 2.52 59 o.65 15) 2.23 1.33 34 0.72 1.75 26'onstruction and eauipment 1.72 Lo) n.7? 19 0.92 2.9o '1

Public debt service 0.41 10 0.57 13 0.5 o.85 22 0.71 1.01 15

Participation in capitalof pu>liLc corporations 0.31 7 O.22 5 0.22 0.40 10 0.40 0.40 6

Oulthers I . -1.02 214 1.12 27 1.05 0.62 15 0.91 i.40 22

Total canital eyvnnditnre. 1.26 Ion 1 28 lro) 14.03 3.94 100 3.i6n1 6I.A4AL/ 100

Grand Total 3..02 36.78 37.39 39.01 37.751/ L,5noJ-

1/ Excluding CFAF 0.60 billion in 1968/69 and CFAF 0.32 billion in 1969/70, see Table 5-2,footnote 5.

Source: Federal and State Budgets and Final Accounts adjusted by mission.

TABLE 5-l-: ECA 3 e^ - 'UNT XPENDITURES OF THE FEDERAL AND STATE BUDGETS,1967/68 AND 1968/69

PR-!AKI'TWN BY SECTORS

(-In billions of CFAF)

-____________________________ _ Z1968/69

recerzi < .-. West Tctal Federal East West Total.a7p."cr;n Cameroon Cameroon Cameroon

1. General adr1.n1st aticn 02 27 G.hO 9.L6 5.l 3.30 0.38 9.11of which:Pe.sonnel (0.70)' (:'.1 ) (=) (0.-83) (0.77) (0.15) (=) (0.92)Transfcrs and subsidies (1.7-L) $07) (0.19) (2.85) (1.11) (0.91) (0.12) (2.51)Pensions 0.C)- 010. - 0.19 0.19 0.l3 - o. 32

2. Foreign Affairs 0.7 - 0.55 0.L2 - 0.4O2

3. Defense, Justice 5.56 S.C Ci.f0 7.75 5.87 1.91 o.41 8.19of which:Armed Forces (7;: - - (L.67) (h.93) - - (l.93)

Lt. Social Services 2.82 - - 2.82 2.97 - - 2.97

5. Cultural Servces 1-.9? . 0.77 5.07 2.15 2.53 0.85 5.53of wbichr-h

Subsi.dies.c.. (0.7) (,o.6,) (0.68) (1.90) (0.78) (o.63) (0.68) (2.09)Salaries (0.6L) (1. 7r5) (0.06) (2.25) (0.79) (1.82) (o.06) (2.67)

6. Economic affairs 3.60 2.77 0. 91 7.31 3.79 2.71 0.98 7.07of whichTransport andTelecomm^nications (1.02;) (1.26) (0.50) (2.73) (1.0,) (1.16) (o.!5) (2.64)

Agriculture, livestocketc. (-' I'1 ) -L25 (13)7 () (.2 02)(.9

Finance (].61) (0).37) (0.07) (2.o5) (1.67) (0.42) (0.10) (2.19)

7. 3flisellanecC? ). 21 0.03 0.01 - 0.07

Total 21.q: ?.31i 2.50 33.36 20.87 10.60 2.62 34.07

1/ Mostly to nDrivate schools

Sour3e: Flnai Account- ad "Si:tuation fes Credits".

'lJAI3L,t: "-': 9.1tU;R !CT:iiAL RE~Vi1 (uI) EXPOL:LI''RTIRES OF LOC'>AL AiN)TEXOIIEW, - 19A67/0

(in millions of CFAF)

Fec era I erson ml T rt-a1 En i nrnent Lrn Oiher -a al Tot aL

revenue costs coer inc Uoera.inru rLmayTrj nCani t a1 expenditure

and sub- KxUe :'di ire exen,li tur- ex-oencli.le expenditure

_________ si dLes _ _ __-

"'l ,^-r ann cOn ,FI 1,C00. -1 S()f ' 0. 1 .2 &). ' 100.') 138.6

iWlorth C811.0 11.2.0 (-2 125.11 ]2.7 10l.2 2-7.9 30.8 726.2

west ,56.5 o124. 7 c ; 11°0 '56.0 65.0 355.3

Eas t 14L.0 11i.C 711.2 115. f 10.1 10.1 125.9

Coastal re.Lon 9- 13.0 3301 )iSO.Ji 83 .1_.' 99.5 910.3

of W h-' DU '11a (')72 6)(295A ) 3+__ (5148-) _ (15.5) (22.5) (38.0) (586.3)

wed zCaieroon- 647.7 370.11 1011.5 311.9 - 2 106 ' 132.0 666.9

Total expenditures 3,877.3 1,310.8 1,664.'7 2,975.5 13.9 92.7 569.4 676.o 3,651.5

Revrenues 3. 88of which: Subsidies .f86

Rev-enue proper 3.02Operating exirpenditlue 2.98

Current deficit/surplus 0.004

Capital expenditure 0.57

Total deficit - 0.53

Source: Ministry of Planning

TABLE 5-6 CMEROON4 SUMMARY OF PROV'ICoNS OF INVESTMENT CODE (LAW NO. 60/64O]F JUNE 27, 1960, AND LAW NO. 64-LF-6 OF APRIL 6, 1969).

SPEC:IAL PROVISIONS AVAILABLETO SMAL1- ANI) MEDIUM-SCALE SCHEDULESENTER_RISFS

Special Ouarantees A 13 C D

Freeedom in hiring policies No restrictions at present, but no guaranitee against restrictions Guarantee against any restrictions other(including unrestricted in the future t:han t:hose covered under "specialuse of foreign personnel) o'bligations" (below)

Other None None None 1) Legal, economic, and financial stability.2) Stable conditions for marketing of' goodLs.3) Free choice of suppliers.4) Renewal of forestry and minin.g opeirating

pernits.5) Facilities for the use of hydraulic, electric

and other resources required for operationei.6) Facilities for conveying prodLucts to the

place of shipment and the use of installa-tions at the place of ashipment.

Special Obligations Nonei None None Minimum equipment and production programs,vocational training, and development oflocal staff, welfare prograns, etc.

Settlement of Disputes No provision No provtision No provision Arbitration Arbitration

Duration of Agreement Not specified Not more than 10 Not more than '10 Not more than 25 Not more than 25years years years years

TABI,E 6-1: CAMFROON - MONETARY SURVEY

(in billions of CFAF)

1961 1962 1963 196L. 1965 1966 1967 1968 1969Mar. June Sept. Dec. Mar. June Sept. Dec. Mar. June Sept. Dec.

Total foreign assets 3.42 5.71 5.54 7.07 5.12 6.32 7.70 5.94 3.31 2.72 3,,43 3.81 5.34 5.66 8.1L 8.39 6.67 8.29

Central Bank assets(net) 5.01 6.60 8.33 8.77 6.143 8.30 10.15 8.23 6.18 5.87 7,,19 6.92 8.-54 10. 5 111.01 11.334 10.43 13.29

Commercial andDevelopment Bankassets -.1.59 -. 89 -2.79 -1.75 -1.31 -1.98 -2.4L5 -2.29 -?.87 -3.15 -3,76 -3.11 -3.20 -4.39 -.2.87 -2.94 - 3.77 -5.o0

Domestic credit, 12.14 15.89 15.50 17.38 19.77 23.60 25.28 24.97 2,5.45 28.56 31,.37 30.05 26.81 30.41 31.02 28.00 27.72 34.13

Claims on the! State(net) --3.46 -3.82 -7.88 -9.39 -7.56 -6.13 -7.914 -6.88 -6.46 -5.62 -7.25 -6.57 -5.64 -5.30 -- 7.67' -9.26 -8.50 -7.814

Claims on the! pri.-vate sector 15.60 19.,71 23.38 26.77 27.33 29.73 33.22 31.85 31.91 34.18 38.62 36.02 32.145 35.71 '38.659 37.26 36.22 41.97

Money 14.39 18.18 18.90 20.99 21.20 2',.91 28.2'7 26.03 23.88 27.08 30,,10 29.03 27.114 3.144 3h.39 30.67 291.35 35.6

Cash in circulation 8.38 10.07 11.28 11.83, 10.77 1 L.46 15.70 13.85 12.33 14.64 16.80 14.71 14.o6 17.09 18.30 15.70 14.65 18.28Deposits!/ 6.01 8.'11 7.62 9.16, 10.143 11.45 12.57 12.18 11.55 12.44 13.30 14.32 13.08 14.35 16.095 14.97 114.70 17.40

Quasi-money 0.52 1.29 1.75 2.0O4 2.29 2.35 2.52 2.74 2.76 2.89 2.96 3.05 3.20 3.21 3.68 3.92 4.27 4.47

Other components (net) 0.65 2.113 0.38 1.36 1.37 1.68 2.17 2.14 2.12 1.31 1,75 1.79 1.-8 1.42 1.oS0 1.83 .76 2.27

1/ Including deposits in the postal check account system.

Source: International Financial Statistics.

TABLE 6-2: CAMEROGN - T7'A5IfY PAL ATCES(in millions of',FA.F)

_i_-h Current P=stc. Blocked Blocked Inve t.- Invest- Totalaccount check special account ment ment

account account, Trre-irIr account account2lme' r-oon Fran:c

January '31, 51969j'rreesury Declartment - 319 171 100 500 291 2521 3902ameron Treasitrit-e 521 656 211 1388

- T'reasuries 1 3lh - 85,aqeroon Collector' F vffI-.e 53 216 10 2'79(. thLer items 169 - 4 173T'o tl 744 1275 396 100 500) 291 2521 5827

?ebr.:ary 28, '969Treasury Department - 548 323 100 50C) 491 2635 4597C:uicrocn Trea.ur-ie. 411 777' 262 1450

s Treasur±_es 1 62 - 63'.imeroon ffolletor's O-fice 43 172) 10 225O+her items 241 - 8 249.o La 696 1559 603 100 50C) 491 2635 6584

Januaryr 3:L, 1'703Treasury Department h 437 224 100 5°( 6-75 6000 7929,ameroon Treasuries 474 1272 86 3I'aris Treasuries 3 104 l 1(7Cameroon Collector's Off-ie 22 171 13 212Othar items 9283 14 9182Totnal 1427 198'1 337 100 500 675 6000 11022

February 28, 1970Treasury Department - 414 706 100 500) 875 7600 10195Camieroon Treasuries l/ 281 1454 96 1831Paris Treasuries 3 101 - 110Cameroon Collector's Uffi:e 38 39 12 139Other i'lems 837 - 17 854Tot l 1159 2068t 831 100 50( 875 76CO 13129

1/ Approx. CFAF 100 million cash in hand should be added, plus a more or less similar unount for Current Account andposta.L checking accounts together (accounts of cash availabilities are not available for one of the Treasuries).

Source: Ministry of Finance,n Treasury Department.

TABEU 6-3: CAMMO0 - J2DUS'TRILL CIASSIFICATION OFL)ANS AIND ADVANCS 1/

(in millions of CFAF)

As of December 3[

Short-term

Agricu3.tre I41L5'1 :'.1. A 3 0 '3,1 If 0 'i'Power 4 0.0 - - - - - - 25Industry - textile 549 2.8 724 3.5 469 2.]L 603 2.2 953 :3.3 1011- 3.3

- forestry 299 :L.5 387 1.8 455 2.0 305 1.1 326 1.0 450 1.4- other 359 :L.8 - 96 2.9 882 4.() 1,162 4.2 2,123 7.3 2,512 7.9BuiLding, P.W. 1,190 65.0 1,507 7.3 1,435 6.l ]L,885 6.8 1,,747 6. 0 1,921 6.0

Tran3portat:Lon 1,105 5.6 983 4..8 1, 353 6.1 1,528 5.5 1,249 4.3 1,585 5.0Ixports 5t514 2 7 * 9 5,C033 24.v5 5, 942 26 . ir 8,627ir 31. 2 9,333 32? .2 11,020 35.0Genera1 ComImerce 9,,5O7 413.1 10,186 49.*6 ]O,069 45.2 1L,472 41.4 11,422 39.2 11,545 36.4Seirices 12_ 812 h1.1 21± 2. c'Ut 2 I.. 01dL -_ 818 2.7 9.0.q 2.8

Total 19,,758 100.0 20,551 100.0 {22,27r8 ]LOO.() 27 ,680 1;0.0 29,,153 1.0 31,682 100.0

MediLum-- aUd Lawterm

Agriculture 1v150 18.4 1,184 18.5 1,124 17.( 1],020 14.0 550 13.1 1490 6.8MiniLng ,md industry 2,,983 47.7 3,1.63 49.5 3,235 49.0 4,165 '56.4 2,897 42.5 3,:129 43.5Building 2,o65 33.0 1,5910 30-0 2,05;2 31.1 1L,85L 25.3 1,692 214.8 1,t538 21.4Other 57 0.9 126 2.0 186 2.8 26 __ _ 3-7 j&8 24_6 2._25 2BN

Total 6,255 100.0 6, 393 lO0.0 6s597 lOO.( 7,305 100o0 6,824 100.0 7; 182 100.0

1/ As declared td' I'Untrale des Risques".

Souroe: Bam4uE CezLtralelbtudes et Statistiques.

TA3L5th 6-: CMA4 ROON - BANQUE CAMEROUNAIS2 D! L)EV,LOPPEENT

Analyais of Loans Granted by Sector - July 1, 1961-June 30, 1969

(in rnilliLons of CFAF)

July 1, 1961- TOTALJune 30, 1965 1965-66 1966-67 1967-68 1968-69 1961-69

Amount %, Amount % Amount %_ Amount %_ Amount _ Amount %_

Agriculture 1,532 16.9 110 3.1 110 3.1 183 5.6 254 6.2 2,189 9.3

Crop financing 3,881 42.9 2,283 64.7 2,166 61.4 2,117 64.2 2,363 57.6 12,810 54.5

Real estate 2,129 23.6 501 14.2 433 12.3 236 7.1 308 7.4 3,607 15-3

Arttean loans 249 2.8 25 0.7 7 0.2 26 0.8 67 1.6 374 1.6

Inrdbstry 676 7.4 444 12.6 647 18-3 505 15.3 E00 19.5 3,072 13.0

Con"uner credit(a) 408 4.5 56 1.6 32 0.9 90 2.7 2'55 6.2 841 3.7

Othor 173 1.9 108 3.1 134 3.8 140 4.3 61 1.5 616 2.6

TOTAL 9,048 100.0 3,527 100.0 3,,529 100.0 3,297 100.0 4,108 100.0 23,509 10O.0

(a) Including car loans.

Source: Basnqiv Canerouinaiise de Developpement - Annual Reports.

TABLEr 6-',: GA1ED0ON - W13ST CAMEROON DEVELOPMENT AGENOY

Analysis of loars granted 1?54 .- 1966

Total aiount,C'atego-,¢ U o B .o oi loe2.s 1a'. a,,.cu.-.t d ; & ouAtstanin.g ot amfuo amou f I

&!anted Frrant,ed 30 June 1966 outstandin(CFFAF million) s( (CFAF million) ,

ft"44iui A al 7?! 3i.24 13C0 l.a 12'

Firms 1:L 5.79 2.0 3.15 1.6

Cmnpanies 24 223.83 79.0 J.65. 58 83.0

Others 1 17.30 6.0C 6.4g9 3.2

Total 110 283.16 iL00.C) 200.11 100.0

Sector oi. Borroe -r

Agricultutre 72 431.63 15.4 23.79 11.9

C:amwerce 211 110.19 38.950 83.577 4].8Midtuptry. 6 59d49 3.4 8.El4 44:

Other E - 115.8S; _ 42.3 83.8l1 41.9

TbtaI. 1CI 283;.16 100.0 200..1 100.0

S'ource: Repcrt of' Coumission of Inquiry into the Activities Of West Cameroon Developwient Agency - Bum, 1969.

TABLE 7-1: CAMEROON - PRODUCTION OF PRINCIPAL CASH CROPS

_958/',9 10 6o/6L 19 6 1/ 6 2 195 2 /6 1963/6 19646 1965/66 1966/67 1967/68 1968869 6al

Cacao (1,000 t)East 60.4 64.1 72.5 70.2 69.5 78.2 82.9 72.5 79,4 86.4 95.4'West __________6 5~_____ 6.8 SA1 6. - 7.71 6m6 6.6i,

Federation _____ _ 66._.3 69.8 81.6 7'5. - 76.0 _8c,.O 91.2 8.8 86, 102.0

Arabica coffeae (1,000 t)East 7.7 5., 10.3 E8.5 10.4 14.4 14.,2 13.9 14.BWest 2- _ 9_ 2 2.9 I3. -1. 9 6.8 7 6 -3

Federation 10.6 8.7 11.0 11.3 _1.3 21.2 20.1 21.1_ 21.1

Robusta coffee (1,000 t)Eabusta coffee (1,000t) 19p 6 26eO 30.1 :33.1 34.9 36.8 35.5 47.4 42.2 53.1 48.8

West 1.1 1.01 _ - 2.1 2.3 1 5 2.9 2.8

Ferat:ion _0_ 27.__ 27 31.6 I L. 2 4968 37 4 7 43-d 56.0 1.6

Palm oi:l (1,000 t)Easta) total production 19.0 1L8.1 27.0 3. - 4 35.4 29.4 22.5b) of which: 1.' 1.3 1.4 1.-3 1.7 1.8 1,4 1.6 1.3

entire production 16.9 l.9 9 n.a. n.a. 18.7 12.2 23.4

West 1-3 1-69 19 -3_17. 16.6 j19 21.6 12.7

FedLerato marketed production) _5 -. 3J.8 2.. 2 8 n.a. na. 38 I1

Palm kernels (1,000 t) 22.3 3,2.2 35.8 43.1 32.2 29.9 31.4

West - -4-6 6.0 6.4 n.a. 7 ,0 7 2 7.4

Federation 2?6.9 3E8.2 42.2 n.a. 39.2 37.1 39.2

cont.

Table 7-1 (cont.)

8 Za9 9,59/6O I960/6X 1i _ 10612 /6L 1966/64 19~46 L6566 1966/E7 67/68 1968/69l9 1/0)Bana,nas (1,000 t) (eYporso.y

East 38,3 52,0 53,6 57,4 62,4 ri.a. 49,6 44,9 42,4West 8 1,3_82-,8 8 O- 8p_ 60.1_52,6 ri.a. 17,4 1 _2 15,9 _

Federation 125,5 135,4 134,2 117,5 115,0 135,0 57,0 41,1 43,8

Seed Cotton (1,000 t) 22.3 21.0 29.2 25.1 41.4 45.8 43.9 157.5 55.8 49.1 68.0 91.4

Rubber (:1,OOO t)East 4.0 4.3 4.6 4.1 4.2 4.5 4.67 3.7 4.8 3.8West 2.5 2.5 2.9 94,2 4-1 5.3 4-9 n. a. 8.21 13.31 7.22

Pederation 6.5 7.2 8.8 8.2 9.5 9.4 n.a. 11.9 13.1 11.0

Tobacco (1,000 t)

(cigar wrapper) 0.480 0.920 0.909 1.046 1.200 1-434 1.284 1.557 1.611 1,556

Tobacco (1,000 t) J(cIigarettes) 0o538 0.389 0.304 10.471 cl.465 (.380

Pineapples (1,000 t) 2.37 2.8 2.8:L 2.84 3.22 n.a. n.a.

Grounidnuts. (1,000 t) 66.3 74.9 78-3 81.8 c96.3 110.4 131.6East Cameroon

Rice (pgAd x (1. OC t) (East Cameroon.) - _9.0 91 10.8 1l.1 13 ]3L8 15.6 12.0

_L/Out of which 150 t for local processing cent.

Table 7-1 (cont.)

______ ______ 19611062 1go3 BcL 4 1q65 166 _ 196 1969

Tea (t)W. Cameroon ToIe 46.1 83.4 101.3 14. 19,.9 320.8 42B.0 478.0 622.0 445.0

IW. Cameroon Ndu 97.2 14 3.0 245.2 222.5 271.0 W.,y 530.0

Federation 46.1 93.4 101.3 242.,2 340.9 566.0 651.5 649.0 1071.0 975.0

Pepper (t) - 44.0 33.0 38.6 59. 8 31.0 46.D

_Scarrees

Ss958/66 Estimates frum different sources

196,/67-1968/69 AtgricuLtural Statistics

Westl Cameroon l4arketiig Board

Federatic3n Direction doe 'Agriculture (East Csameron)

Arabica Coffee: "Cals,2e de PtaLaJ.1sationl" and MarketingBoard

lobusta Coff'ee:

1,958/63 Agricultffr-L Statisticos

19c3/69 Cais54e de Stabilisatior

"AeLst Camaroon 0

1958/69 Rvtg Board

UBanaxas: Agricltural Statistics3 and Ministry

of Plannimg Lll

Cottcon:c C. PF .1.

Rabber: AgricuxLtural Statistics

Tobecco (cigar nmapE ).: Agricultsral Statistics

Tobacco jc4igtes)t %autos

Feasibility Stu-ly oi Tlea in the BanileKce

arsa (BEft and C.D.C. Annual Rleport-)

Pepp_r C. D.C. AnnaLal Reports

Other Crops: Agricujtitral Statistics and Ministryof' FLamding

j/ Figures of these two sources are not consitLent

TABLE 7-2: CAMEROON - PRODIJCTION OF PRINCIPAL SUBSISTENCE CROPS 'IN EA.ST CAMEROON(thousands of ha. and thLousands of metric tons)

1962/63 1963/61 L 96L/65 1965_/66 1966/67 1967/68 19_Q8_Area Prodhuc- Area Produc- Area Produc- Area Prodhic- Area Produc.- Area Produc- Area Produc--

tion tion tion tion tiLon tion tion

Millet and sorgkihum 481 336 4;L6 377 1422 484 486 554 3293 209 362 299 377 277

Ma ize :186 175 232 216 174 170 221 246 260 286 1.95 189 229 252

Pa.ddy rice 10 9 T. 11 13 lt 11 13 11h 16 16 16 12 12

Shelled groundnuts .120 66 150 75 130 78 168 82 1813 96 2 17 110 212 :132

CDocoyaxrs :102 5-L4 15c) 676 127 45( 89 395 97 437 ]L65 525 154 '507

Cassavra 63 1 4147 60 4417 111 4416 87 461 100 540 106 621 106 .509

Sweet pOtatoesi 29 166 35 100 33 9:L 44 171 33 96 39 108 36 :117

Yams 27 12?6 42 130 36 147 36 1149 39 162 59 246 39 134

Plantain bananas 72 661 10'; 696 163 965 106 585 118 6141 L4O 903 153 975

mbelon lsO 18 6 159 9 17 5 19 7 28 14 36. 20 28 13

Source: Directicin de 1Agrical.ture.

Notes: 1) According to the Direction de iligriculture "the figures are based on ertima.tes mainly provided by thec:hiefs of agricultural regions and are onl;y orders of niagritude; it wouLd be unreasonab:le to corisiderthem as accurate".

2) No statistics on foodcrops are available for West Cameroon.

TABLE 7-3: CAMEROON -- AGRICULTPURAI PRODUCTION AND PLAN I'ARGETS(thousands of metric tons)

'Product Production in 1963,/6h Planned Acttal Avrer;e Yearly RatesPlan Accordir,g to Production Production Assumed Statistics tatistics

Document Statistics 1970/,71 1968/69 in Plan 196,3/64-1968,/69 1958/61-1966/69

Cocoa, 93.2 85.o 130).0 102.0 4 .9 3.7 3.3

Arabica Coffee 14.3 11.3 20.0 21.1 4 .9 13.3 12.9 :L

RobuSta Coffee 37.8 38.8 614.o 551.6 7.8 5.8 8.3

Palm Oa 2/ 26.2 28.2 41h.7 36.1 7.9 5,1 o.6

Tea 0.330 0.34:L 0.980 0.975 16.8 23., -

BanarLa.; (expCotonly) 117.5 117.5 130.0 L43.8 :1.5 (21.8) (17.62V

Seed Cotton 45.6 4 5.8 75.0 ;68.0 '7.4 O 9.1

Rubber 9.8 9.5 17.0 U.10 8.2 3,o 6.80

Tobacco (cigarwraLpper) 1.1 1.2 1.5 1.6 5.5 5-,9 7 . 9 :

Tobacco (ciga:retteIs) 0.34 0.54.2 1.2 0.48 17.7 (,.k) -

(iroundnuts./ _ 17.5 - 1:4.3 - (5.2) 6.7

Rice (EastCarLeroon) 11.9 10.8 27.8 :12.0 12.9 2,.1 6.3

(14.6) (34)g(128

1/ :1960/'30 to 1966/692/ Marketed

Federation7/ One out of two plantatiLons started producing in 1963

No figures for 1958/61 period.

Source: Second Five Year Plan; AgricuLtural Statistics.

Table 7-4: CAMEROON - :1. LIVESTOCK

A- Live arTiAals (in thousands of heads)

Cattle S-aeep Go.tts S-rine DoTikeys Horsels Poultry

1/Sales on conm1lled markets l 19Gi ~ 222 2181 373 151 13 6 8621965 213 320 162 143 11 3 1,5151q66 266 201 29Q0 165 15 3 1,5681967 138 133 202 119 7 1 89?11968 252 205 2593 96 14 3 934

Slaughterings 2/ 1963 87 21 -- 18 - x1964 109 29 7 20 - x1965 110 24 4 21 - x1966 119 21 8 20 - x

1967 127 21 1-3 21 - x1968 1L5 28 1.2 24 - x

Imports 3/ 1964 13 4 -- -

1965 20 1 - - -1966 17 1 x - - -19.67 13 3 --1.963 19 2 x - - -

Expcrt5 3! 1964 2 x *-

1.965 2 - - - - D

1966 3 x -- - -1967 3 2 1 - - -

1968 5 2 x - x DL

Number of heads 6/ 1966/67 1,700 to 1,850 3,000 tD 3,500 250 tc 300 51 20 7,000 to 7,5001968 1,870 .. 2,668 359 n.a. n.a. 7,660

B. Fresh meat

Imporb E-xport

(Tons) (Tons)

1966 201 46311967 305 7611968 166 1,060

1/- Animals control]ed by Veterinary Service only2/ Controlled slaughterings only.2/ COnTtrO12WX imp(){rr. eoL e:ports only.

A/ According to official figures.

TABLE 7-4: CAMEROON - II. FISHERIES

A. Tndinstrial spa fishin21962 1963 1 9564 1965 1966 1 967 1968 1969

Nimber of trawlers (1)stationed in Douala 16 16 17 16 20 21 21 33

Volume of fresh fishlanded in Douala (inthousands tons)(2) 5X 4 7,6 8,1 83 11,2 liil 4 l i n.a.

Volume of frozen fishlanded in Douala(int'housands tons 1X e.

B. Small-craft sea fishing

- according to FAC (1967) W. Cameroon : 3,800 Tand Ministry of Planningestirate E. Cameroon : 11,600 T

Total Fed. : 15,400 T

- according to theDirection of Fisheries Total Fed. : 35,000 T

C. Inland Fishing

- according to FAC (1967) W. Cameroon : 580 Tand Ministry of Planningestimate E. Cameroon : 35,500 T

Total Fed. : 36,080 T

- according to Directionof Fis;.eries T~~~oUa-l Fed-. : 000

(1) of which 9 shrimp trawlers(2) In addition, a trawler stationed in Victoria lands 130 Tons of fresh fish per year.

SOURCES : 1) FAC survey :" Etude Technique et Economique comparee de la distributiondu poisson de mer dans les pays de 1 'Afrique Centrale Atlarntique" (Ju:y 1 969)

2) Ministry of P'lanning3) Direction of Fisheries

Table 7-51 CAXOW - roWCmam' CAM ni YMi

(in CFAF)

CRDP1 TXIKJ PRODIQR n1Rn D

two. Ct CatU/a _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 07S~~~~~CF F iV-AF a .

COCOA

Low ............................ 200 82 2 16 ,400

Maedin ..., ........... 300 82 24, 600

High ........................... * 500 82 41,000(Les8 CFAF 3,000-3,50Cfor black pod control)

ARABICA COFFEE

Low ........................... 200 1710 3 ODD

M edi,m . 300 170 51,000(Less : CFAF 2,000-3,OOCfor fertiiizer)

High ........................... .450 170 76,500(Less CFAF r 000-6 OOCfor fetiiicer

5

liOBTJSTA COFFEE

Low .... ................... 3CI 117 35,100

Megdio. . . ...-.. L0 117 56,200(Less: CTAF 2.000-3,000for fertilizer)

High . .............. 600 117 70,200(Less : C;AF 5,000-6,000fnr fertili'er)

,-ARAtJAS

Lw......................................... E ,ooc , 6-10 4 B - 80,000

M.dim .... I 1C,000 6-10 68-10O,CmO

811ji ........................ 12,000 6-10 72-120.000

COTTON

L v ....................... 400 32 12,800

Medim ........................... , 70 32 22,400(Lelss CFlA 2,C00 for

fertilizer)

High ........................... 1,100 32 35,200(Less: CFAF 4,000 for

fertilizer)

RICE (SEMRY)

Low ........................... 1,200 16 19,200(LRss CFAF 5.500 for

produotion costs)Medlm . .,(OOX 16 32,0(H)

(Leas : CTAF 8,000 forp-od-rtlon, Costs)

High ........................... .,500 16 40,00((LesB : CFAF 10,000 for

production costa)

SORCHUR

Lo.. .... ...................... 700 10-12 7,000- 8,400

Medium.1 , 1,200 10-12 12,000-14,000

High ............................ 1,500 10-12 15,000-18,000

Lov w -..---.. ---.... °° 23 9,200

Medi ........................ 550 23 12.650

High ............................ 700 23 16,100

Low ....... . .................. 600 i 2-20 7,200-12,000

o l ... .................... I0....... 'C'0 12-20 12,000-20,0U0

High .......................... .,500 12-20 18,000-30,000

-d~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2t rf -rado 1 znd 2

2/cm ::-allRc lKrs r-x m.-rd

Cn,nsnas Mission cnl-iil ation nn basis of inforMationprovided by the government.

Table 7-6: CALEROON' - MAIN AGRICULTURAL EXPORTS

(Quantities in metric tons - k'OB value in millions CFAF)

Percentage PerceDntage

1964/65 1965/66 1966/67 1967/68 (in value) of 1968/69 (in value) ofQ V V V Q V 67/68exports Q V 68/69 exports

Cocoa 76, 107 7,804 81.170 7,2B1 69,500 8,630 C 65,970 5,866 21.9 70,4594 1L2,400 :23.3

Arabica co;Ffee 12,873 3,023 17,470 4,011 19,890 3,999 ZL,695 4,339 9.6 19,622 3,869 7.3

Robusta coffee 34,766 5,185 44,380 6,424 49,200 7,898 41,588 6,886 15.3 55,173/ 8,61 1 L6.2

Bananas 126,893 2,066 84,970 1,644 57,020 1,311 415,125 1,101 2.4 43,8742 1,324 2.5

Grounidnuts 19,5,60 751 8,790 349 5,390 227 L2,696 523 1.16 13,688 596 ].1

Rubber 10,1435 1,227 11,110 1,242 12,550 1,249 :L2,025 1,008 2.2 10,311 982 1.9/5

Tobacco 1,258 620 1,450 842 1,460 856t 1,265 1,296 2.87 1,498 1,135 2.1

Cotton lint 17,277 2,348 21,085 2,773 21,060 2,801 :L6,597 2,373 5.26 24,55 0 2,877 5.4

Palm oil ani kernels 9,989 506 8,205 488 8,81L0 339 6,967 353 0.8 9,645 367 0.7

Tea :355 74 333 71 1:31 32 209 41 - 3 76 k 79 0.2

Cocoa paste 5,791 120 5,514 34 8,4:26 57' 6,678 209 0.5 8,931 927 1.7

CDcoa butt(er 6,0O19 1, 4t61 5,516 1,085 3, 208 903 6,935 '2,176 4.8 8,477 3,324 6.2

/1 Accordi. ng to the "Caisse de Stabilisation du Cafe"/2 Revised figires (aftter packing)3 Actual export figur es, not including sales to Chad, regarded as local sales

ProvisionaL7• Figures likely underestimated

Source: Ministry of' Planming.

TABLE 7-7: CAMEROON - ANNUAL PRODUCTION OF TIMBER

\-in c-uu ic mieters )

Year East Cameroon West Camneroon Totai

1963/6)j 457r 000 67 s484 52h4J481.

196/615 475,.oo0 699o8 5LDi.coo

1965/66 472, 729 144663 517 X392

1966/67 537,304 40o,17 577.911967/68 a/ 4$6or882 52. 563- 51-3 4lo68/69 a/ 620.000 51 h448 671 5JaIF&

1969/70 a/ 700,000 50 OOo icO CThfl

/ Preliminary figures or estimates.

Source: Direct-ion des Eaux et Forets, YaouncV.

TABLE 7-8: CAMEROON - EXPORTS OF TI]YBER

(vo:Lume in thousands cf tons and value in millions CFAF)

1962 1963 196)4 1965 1966 1967 1968 1i!69

Tons Value Tons VaLue Tons Value, Tons Value Tons Value Tons Value Tons Value Tons Value

Logs lL1o 7 1,853 178.4 1,956 214.4 2,17Th 231.7 2,168 :265.9 2,407 269.6 2,596 321.5 2,974 308.4 3,939

Saw Timber 10.9 11.0 11.9 234i 11.6 232 18.3 424 16.2 34() 10.7 221 10.7 237

Sleepers 7.9 4.9 5.2 1014 5.4 101 3.9 70 7.7 123 17.4 344 244.3 L27

Squares 034 5 1.6 29 0.7 13 0.5 13 0.7 13 0.7 15

Veneier and 6.2 8,5 B.1 209 8.8 229 7.1 204 8.1 296 15.2 533 19.0 752plywood

Total 241.0 2,727 259.1 2,760 295.9 3,120 302.1 3,358 365.5 4,105 435.1 5,370

Soiurce: Direction de la statistique et de Ia comptabilite nationale, Yaound6.

TABLFT 8-1.: COPIEPOON - INDUSTPJAL PRODUCTION

I/ Sel.ected inuLsatrial Seoto:rsf -. ±i96'7-1969

1,961 ,j1966 11's

Value caf Production (CFAF bilLion)

a. Food & beverage industry 9.95 13.29 17.12b. Te.Ntiles, shoes, clothing 4.79 4-64 5-78c. Chemicals, cement, plastics 1.96 :1.92 2.25d. Mechanical &; metallurgicaL industry 6.52 7.22 8.76e. Other industry 0.86 0.84 0.79

TOTAAII 24.08 27.91) 34.70

VLue of production a:-id L ercent-axce of' total rDroduction sold toUMIIC countries and Tcha d LF billion)

a. Food & beverage industry 0.31 3.1 0.16 1.2 0.24p 1.4b. Textiles, shoes, clothing 1.01 20.7 1.10 21.8 1.15 20.0c. ChemicaLs, cemenlt, plastics 0.17 8.7 0.24 12,.5 0.29 12.9

Md. flechanical and metallurgical industry 0.20 3.1 0-48 0.6 0.63 0.7e. Other industxy -

TOMI.UGll 1.69 1.98 2.31

1/ Data based on member companies of the Syndicat des Indu3triels du '.ameroun (SYNDUSTRICAM1).

Source: SYNI)USTRICAM.

TABLE 8-2: CAMEROON - PRODUCTION OF ELECTRICITY IN CAMEROON, EDC NETWORK,ENELCAF, AigD WEST CAMEROON

(-;ross production in 000 hwh)

Annual

Power P'lants and Distribution Centers 1963/64 1964/65 1965/66 1966/6'7 1967/68 1968/0S (19i3r a Irlstealld

1968/69)Percent

Tntal C,.meroon Prodcii t.ior) 1,128,6o0 1,132,501 1173,52k' IO0,781 ... ... ...

Yaound- 1/ 15,658 17.374 18.882 22.423 26.065 30.548 1.3 13.450

C,eco-dary Plants:

rI 2.-Soi.b (T, 322 5C07 665 72; 1.131 1.36 33 s 1.0)2ischba v (H'.T) 653 694 775 627 593 631 - 500ZTholov-, (T 135 L33 414 77 563 743 80.5 350

Rie? _/ 3.089 3.210 3.36y 3.852 1,001Ž J1.400 7.3 -Žotuabs'" (I .-1) 199 177 201 237 2I8 321 10 I160i ribi ¢T) 290 338 389 448 463 751 21 333

sirroOa ('" 1.054 1.,'30 1.513 1.730 1.519 2.089 18.7 1. 65rlO-on 5'mba (7l) 1.440 1.477 1.,51 1.518 1.707 1.896 5.7 1.052bas sflr iT) 248 298 40o 8113 1i3.8.-/ 282HrIaoundere /( T) - - - 526 - 0

Total O'e-'crv Planos 7.182 8.141 9.055 9.906 10.676 i3.096 12.0 5.672

'Ia l-rima. an-'eco,darv 0

latIs 78.786 85.S1, 95.015 108.071 122,313 140.695 12.3 27.072

T l.i:u!-. -']m: ;^ral.na. :v 1; - - = 23n 289 367 21j8W 240

1.042.442 1.037.950 1.069.319 974.424 931,342 1,029.773 -

Deiivered to Alucmn 981.277 97o.607 997.51j1 874.581 882,519 8'3. 218 -

Del -vered to DCC n.a. n. . 70 300 76.500 88.575 1?251 225/

Wlest ;lreroon: Rroduction 7.372 9.436 9.190 9.048 n.a. n.a. _

1/ Clner¢n1 ruehased f'rom 01`I.5IPI (FdIea) and sold to final consumers F, F:T1 The chPrro=e1etrir nlsrtfn Doual.a and Yacunde are on]y being used in ease of emergency.

/ nergy purchaseci f'rom Enelcam (Idea) and sold to final consunmers by EDC.r),erated by =C since 1968

n lenaged bh EDC since 1968%/: nual. ncrease between 10Q05/66 and 19G8/0o9

^/ .:!l:l 'nnrese betee~n 1000/07 an o00f/0n

l.Pel' : ti-errr.oelectric -olant>.'3ource: drcoel.ectric lraon

.'ourc: Žlsec ricit- do Carmeioun (EDC); Bulletin de l'Afri qua Ncire.

TABLE 8-3: CAMEROON - CONSUMPTION OF TLECTRICITY

(EDC Network; in '000 kwh)

Uomei- ir I…nand Off ice Public Househo:Ld and Smai1 Con- Low High_LigE Lighting Uses Busi ness s tion Tension Tension Total

19L1/l9155 - Douala 7,811 2,039 20,359 1,9944 n.a. (32,153) 18,986 (51,139)Yao%mde 5,109 510 2,789 1,440 n.a. (9,848) 3,706 (13,554)Secondary Centers 1,749 4 :21 2,595 528 n.a - (5.293) 1,1a9 (6. 182

Total 114,669 2,970 25,743 3,912 nr.a. (47,294) 23,881 (71,175)

1965/1956 Y - DouaLa 7,248 2,2:12 21,253 1,849 1,234 33,796 23,135 56,931Yaound5 5,704 1487 3,132 1,781 1114 11,218 3,936 15,154Secondary Centers 1,870 1463 1,817 935 138 5,223 2,66Q 7L883

Total ij,I's 3,162 26,202 4,565 1,486 50,237 29,731 79,968

1966/1967 - Douala 7,628 2,511 20,994 1,983 1,681 34,797 28,931 63,728Yaoumde" 6,347 567 3,790 2,237 131 13,072 5,348 18,420Secondary Centers 1,964 551 785 970 158 4,1428 14,260 8,688Tertiary Center t4 99 24 46 7 176 - 176

Total 16,038 3,653 25,569 5,236 1,977 52,1473 38,539 91,012

1967/1968 -Douala 8,871 3,718 21,140C 2,608 11,747 40,344h 33,781 741,125Yaounde 7,080 808 I4,505 2,531 164 15,088 6,893 21,981Secondary Centers 2,157 636 930 1,,065 191 4,979 4,493 9,472Tertiary CenterLi 139 16 1 81 10 247 - 247

Total 18,247 5,178 2E8,36 6,285 2,112 6o,6558 45,167 105,825

1968/1969 - Douala 9,752 3,736 27,0818 2,746 1,939 45,261 39,9148 85,2059YaoundE 8,830 1,035 5,586 2,960 117 18,558 8,726 27,2814SecondaLry Centers 2,592 1,117 969 1,396 246 6,320 5,236 11,556Tertiary Center/1 1147 22 :2 142 35 248 45 293

Total 2qn1 A1 591n 33;6L', 7A.LL 2.367 70.387 53.955 1214,3142

/1 Opera.ted by EDC sincee JuLy 19366 I'Mba:layo)).

TABLE 8-h: CAMEROON - PRODUCTION AND CAPACITY OF THEWATER StilPlY SYS-EMS OPERATED BY S N .E .

Gross production Production capacity-JJ VU. JM- J ~ J41 LL/.J

Centers1967/68 1968/69 1968/69 1970/7121

Douala a Cy I,0U1 e22,20 L444,0UV

Yaoun d6 i,th 5,221 16,u00 32,00w

Secondary centers

Bafoussam 310 412 1,000 Dschang 200 214 1,000oEbolowa 160 213 1,000Edea 480 539 2,000Foumiban 120 i34 1,000Kribi 90 125 600Maroua 250 291 1,000Mbalmayo 80 88 800Nkongsamba 1.,050 1,100 W a. Total 13,270 15,355 (springs)

1/ Once the Bank project has been completed.

Sources: Societe Nationale des Eaux du Caneroun (SNEC).Appraisal of the Douala and Yaotund' Water Supply Project, Cameroon,April 14, 1969.

TABLE 8-5: CAMEROON - WATER CONSUMPTION IN THE CENTERS^rrnnAT'fl m1r 1W C0 IT T.' (

(rjaI ! W Jrn3)

Center Domestic Goverrnment Public taps Industries Total

1965/66 Douala 1,825 899 1,005 210 3,939Yaounde 1,217 1,061 545 93 2,916

Secondary centers 395 493 861 225 1,974

Total 3,437 2,453 2,411 528 8,829

1966/67 Douala 1,969 1,093 1,057 663 4,782Yaounde 1,483 1,072 582 166 3,303

Secondary centers 401 438 895 115 1,849

Total 3,853 2,603 2,534 944 9,934

1967/68 Douala 965 1,192 1,043 1,678 4,878Yaounde 1,537 1,054 213 586 3,390

Secondary centers 447 648 898 146 2,139

'Total 2,949 2,894 2,154 2,410 10,407

1968/69 Douala 1,930 992 1,223 1,427 5,572Yaounde 1,664 1,306 746 191 3,907

Secondary centers 610 744 9h6 126 2,426

'rotal 4,204 3,042 2.915 1.744 11.905

Source: Soci6t6 Nationale des Eaux du Cameroun (SNEC).

TABLE 8-6: CAMEROON - HIGHwdAY NElWORK

vj* iu c (!hv 1) ;ofpubl1.4c Wo1~n d ls1Aud tur ittcre

(in km)

A .c _ : _ . v .C ;v rhr.t oS u .i .y

(V,cl )

1;t IL ni.J i^fvor I,SO 9]. , <-1)) 0 93 93;2

Over 1`0 1,041 1,04!1- 1,334. 2,3.35

' SO - 1.5l ) 2,4:32 2. 6 3,003 2, I .

(. 0i - 5,) - . s - 3 1 /55 fj2i " 53r) ,, 35

It.;,-tmota1 ,232 ;,281.5 , &

Gravel or 1L.:3L-.tL

C' 1° - 50) 3iA r2rg5/, 3i 748 (I '113

* 1l ,,o2 t)'.':'. 1i 4,669 .4 7!32 6 41.5 7 ,504

;: ;: t i i: i81. 9.. ) 1 . 3,_ _-563

Total. cejli of nctv.erk 13 ,4 4 il, 7-'f 1. 6,881 1]°385

J. 1 t' !'. J. Lxv. 2 .C ' '\ 1967 1968 1969

Biivin alouts 285 293 3-

Latr>i. Ce or Gravel 777 830 93 ,31

Totol. 1 Ph'D M,f2 1,123 li 244

Source: Publlic Vlorls DeparatenLts of East Cameroon and. IXest Cemeroon,

TABLE 8-7: CAMEROON - ANNUJAL REGISTRATION OF VE7HICLES IN EAST CAMEROON

1960 1961 132. 1D83 1964 1I9 5 I6 6, I 167 1968 ;95,

Private cars 865 1362 i9& 2c265 2205 24'2 2553 5333 3227 3772

Commercial cars 65 54 41. :12 9 3 7 - 6 14

Buses 230 302 230 240 286 28.5 21C9 214 306 3JI4

Delivery vans 505 780 2'c' 363 359 999 8fiS i,0C 1132 i'4

Trucks 4.56 879 926 SB5 675 553- 5;5 170 1056 959

S-ccial vehicles 4 8 3 4 1 1l ilO 4 1

Tractors 18 32 28 34 31 24 53 20 59 53

Trailers 23 23 62 33 49 6'9 41 121 88 t8

Heavy equipnent 1 4 15 7 2. 7 3 31 49 '?

TOTAL: 2167 3444 4232 4043 4138 4389 44)09 5323 5974 -503

Source: F I7D of East Cameroon.

cr Amw Er 8-8 CtI '1.fMlfP?o - TRAWirflG OF RP.fTF?'RrAM

I. ,F.l j_t._;:r,-,.> 19)6! /j-9 19g)6/66 1960/(-/ 19G7/68 1.'69

P ) 1Et,-. S 'n 1._ jflr:

i.l)i; cC 0,SQI, f4J ' '4 , 0> ,0 92 5(J0 .,04 526, 'K G,'i

1~ ~ ~ ~~cA 41 L" " - I7

I. ) , . . . LA

nu V.c'I(1l orl 1; 2cr,s ,, - , l74 84F1,1'97 89,1,197 876 j,635 9W% , i . !

zii 13 ]CJ;o pf)sscm:c k hm 90.2 95.1 106.4 110.l; 1 1.

c:)~~~~~~~~~~~~~2 I. .-1, Ie iAfc,-1 Am

Nzo, rr,I' .r wlrers '1 22&_1 jA 3. 1,X290,29( }5 1,3 f)_ 3"7 1/cc0 3,61rX 1, ;' nC

milI L-on las rsgc.r Vkim 1 24 .4 119.3 135.9 142. 6 13'C,.2P,

II. FrUY I--ii tr, ffic

.,) kG.?L, ,.. J l^

'1,+. J. 9-,-IO 5 155, 360 162 1I'; 1(6 8_ 2 1;7 55

mnil- ii½n ton 2m 22.8 18.3 19.4 19.7 17. 8

b) CC1 u, l I.ine:

toLs 761 ,6S9 769, 900 76 8 ,4 65 826,895 o2'69,C

mli11i_&ri tor. kml 150.1 157.4 161.2 183 . 5 1 86.6

cj To'c1R-;l 'j-fc.rcmi!: .. __

tolis 957 ,000 925,280 930, 652 995, 767 9')1, 0 (i 2

million ton kin 172.9 175.7 1&8.6 203.2 20'5.3

Source: Regifercami.

TABILE 8-9: CAM&ROON - TCT'AL PORT TRAFFIC(100( tans)

1965 1966 -1967 1968 9

Doualaa-Bonaberi 1,183 11:69 1,385 1,536 1.,652

Victoria-Tiko 180 :L34 96 105 ?

Kribi 52 60 60 75 80

Garoua 62 62 nil nIl nifl

Campo ? 10 15 25 25

Ndian ? 10 10 10 ?

Tatal 1i,J49 1,566 1,751

Source: Port Administration

TABLE R-- CAMEROON - MAIN COMMODITIES HANDLED AT THE PORT OF DOUALA

(0ooo tmg)

19G6 1967 i96.

Imports

ii. .-u l s^tn ,>l- c;'nc( ts 155 177 231

t. a ,, - nl t: 8) 113 139

u,.ii. ina 94 93 86

St, el, corrU&nAtecd iron 54 63 47

: Li1 izel-r 14 35 53

,.]l other prlducts 251 450 353

Total 648 932 909

Exports

206 226 25J.

S;;Rsn timr,:cor 26 29 40

C.offee 67 57 67

Cec oa a 44 46 49

h,nnauias 53 36 32

Alumninium 51 47 33

Cotton 15 30 31

All other products 59 82 124

Total 521 553 627

Sourre'p Potrf , Li !strati nn

TALBLE 8-11 CAMEROON - AIRPFORT TRASFFIC]/

Wximb, r ef landinil!t 'la co^ . ~TF.Pn1 :.-o'f c trn,if f Ic traff£c

I 9,6 7 1 (9 1X<,I.92 ¢(h-- i. 196<, 1 r'6 7 1e,G8 j.''$

-l S? 36: ,J'974 )'.2 ]o<' 14. 32n ^. 4 C J7 .i.'( re53 4 3, 6O0. 4gt

' t*UnIJ ~~5. 9,7 5.979 4 .985 1. (,; 1.787 1.424 7'5.816 89'.419 /. (0 7

o,C)uaZ 2.4-33 2.222 2. 0 60 I1.0i I' 1,228 907 21.578 24.3&5 20 .7S4-

: l.nd:- 2.276 2.079 1.881 1. 223 1.37:3 1.291 15.432 1X.333 1 3.3 952

;w.ua 1.4-51 1.529 1 .4106 8 4:) 1.019 987 12.768 )5..2 1. 5'

, <() 7.J4~~92 '5.49t3 2.087 ill 72 17 0.912 19.(629 iX

< Ibv:) S~~870 70 f)8f 551 12r15 91 (10 3.5G8 2. 7.38 2. 701(

,> .1 fi /i ;12 1-( 35l U L701 ,266!_ ) i

_/oYnlres include commercial and p<lat-e tran-mort

2/ Janua;7 trouf Septe!mber

Source: Depar1;ment of Civil Aviation

TABLE 9-1: CAMEROON - CONSUMER PRICE INDEX

A. Cameroonese Middle-Class 'Families. Yaounde

1968 1969

Articles bought in shops 100 103.8

Articles bought on the market 100 96.6

Services 100 101.2

General index 100 100.8

B. ExpatrLate families, Dauala

1966 1-967 1968 1969Imported articles 100 £7104.3 10)

Local articles 100 103.1 104.8 107.0

Services 100 101.6 102.2 1014.1

General Index 100 103.2 1014.0 lOi,.8

Source: "Bulletin Mensuel de Statistique."

TABLE 9-2: CAMEROON - MINIMUM WAGES

(CFAF per hour)

1. Minimum _wage for non-agricultural occupations7~fF 7,7r !1 n-i -rg mn i n r?,i -i rfn nri-c.'lr~nt.i

SaLarr Zones T,lijy 1, 1963 AiIcigus 1, 18 QJa jnuryTr 1 Q7

T 36.00 37r00 39.00

TTT 23.5l 2i0)0 2

2. 'I1ini,i,i,,. wagL U.L in, .,

(SAIAG = Salaire minimum agricole garanti)

I 26.50 28.00 29.50

II 22.15 2L.00 25°00

IIT 17.'(5 19.00 20.00

So urco: Dire-tion de la Statistique.

TABLE 9-3,: CAREEUON - GOVEHNMEIN-' EMPLOYEES IN 1968i / uL IF±lC1A N f3Y MUNliThY SAIAhY(NET OF RETIREMENIT CONTRIBUTION)

(in thousands of CFAF)

A. By net monthly salary

Federal Budget East Cameroon Budget; Grand TotalCivilian Army personnel otal CivilianfIstacblishnent and Gendarmerie Establi shrnent

Monthly salary Number of employees Percent

Less than 33 5,300 5,200 10,500 8,600 19,100 79.3

33-66 2,100 1,200 3,300 900 4,200 17.4

66-1o(0 400 100 500 100 600 2.5

100 and over 200 - 200 - 200 .8

Total 8,000 6,500 14,500 9,600 24,100 100.0

B. By number of children according to salary

Federal Budgec. East Cameroon Bud&et,Total T;otal Average Total Total Averagenumber of number of number of number of number of' number offamilies children children families children children

ionthly salary per family per family

Less than 33 10,000 19,100 1.9 8,400 17.900 2.1

33-66 ^,,200 11,700 3.6 900 3,700 4.3

66=100 -n 1,700 3.5 100 600 4.1

100 and over 200 600 3.4 e e -

Total 14,100 33,100 2.4 9,400 22,200 2.4

C. By number of children

Federal Budget and East Cameroon BudgetNumber of children Number of families Percent

0 11,600 49.5

1-4 6,600 28.2

5-9 4,400 18.6

10-14 700 2.9

15 and over 200 0 8

23,500 lOq.*0

l,/ Dccluding West Cuameroon.

,.B. Figures are rounded to the nearest hundred.