An extraordinary meeting of the board of Cameroon’s oil and gas corporation (SNH) is scheduled for next July 24 at the Presidential Palace, not at the company’s headquarters. The info is detailed in a letter from the board’s chairman, Ferdinand Ngoh Ngoh, who also serves as the Secretary General of the Presidency.

“Dear Board Member, I am pleased to inform you that the extraordinary board meeting of SNH, originally planned for Wednesday, July 17, 2024, has been rescheduled to Wednesday, July 24, 2024, at 2:00 PM, in Room 8324 of the Secretary General’s Office at the Presidential Palace, maintaining the same agenda,” reads the letter from Ngoh Ngoh to board member Jules Mana Nschwangele. This notice confirms various rumors circulating since July 17, 2024.

The rescheduling confirms that the board meeting initially set for July 17 did not take place. Reports from various digital platforms, later corroborated by board members, indicate that the meeting was blocked due to the closure of the company’s doors, a decision reportedly made by SNH’s current General Administrator, Adolphe Moudiki.

Handover of power

Internal sources suggest that on July 17, 2024, board members were turned away from SNH’s headquarters despite arriving to attend the meeting. The shift of the meeting to the presidential palace highlights the challenges in organizing such events at the company’s main office.

Furthermore, the board’s notification hints at a significant decision expected from this extraordinary session, which has only one item on the agenda, according to the Secretary General’s letter. Various sources indicate that the meeting will likely lead to the replacement of the General Administrator. After 31 years in charge, Adolphe Moudiki is expected to be succeeded by Joseph Dipepa, a prominent RDPC party member from the Littoral region.

It appears that Moudiki’s frustration is not solely with the prospect of being replaced but also with not being informed about his impending departure from the company. Additionally, there seems to be dissatisfaction about not being consulted on a replacement, as Dipepa’s appointment has reportedly stirred discontent among SNH’s old guard. Notably, on March 6, 2024, Moudiki signed a memo hinting at a power transition, though it still left him central to the management structure while delegating significant responsibilities to Igor Emmanuel Soya Bissaya, his second advisor.

Glencore Case

Beyond the anticipated leadership change at SNH, recent developments reflect ongoing tensions between the General Administrator and the Chairman. Disputes have arisen in connection with the Savannah Energy case. This British junior oil company had signed an agreement with SNH on April 19, 2023, to purchase 10% of assets claimed by Savannah in the Cameroon Oil Transportation Company (Cotco), which manages over 90% of the Chad-Cameroon pipeline in Cameroon. This agreement led to a diplomatic crisis between Cameroon and Chad, with Chad contesting Savannah’s claims in Cotco and in Chad Oil Transportation Company (Totco), as well as in Chadian oil fields.

In response, SNH Chairman Ferdinand Ngoh Ngoh was dispatched to N’Djamena by President Biya, following Chad’s recall of its ambassador from Cameroon. Ngoh Ngoh announced the resolution of the crisis after meeting with the Chadian President on April 26, 2023. He then chaired an SNH board meeting on June 13, 2023, where the transaction with Savannah Energy was “frozen.” Unusually, the official statement on this decision bore the Presidential Palace’s letterhead instead of SNH’s. Sources suggest this statement bypassed another version being prepared by SNH before being sent to the Chairman for approval.

Additionally, there is the Glencore case, involving the Anglo-Swiss trader sentenced in November 2022 for bribing public officials in Africa, including Cameroon. After SNH publicly denounced such practices, Moudiki reportedly sought a state investigation into SNH’s involvement in the Glencore scandal. This request, though approved by the President, is seen by some as a move to settle scores with close aides of the President.

Source: Business in Cameroon

Africa’s vast tourism potential remains untapped due to a lack of air connectivity, with Africa currently accounting for just 1.9% of global passenger and cargo traffic. However, aviation experts believe national tourism boards have a unique opportunity to drive new airline routes and spur economic growth.

At a recent AviaDev Africa workshop, which was hosted in collaboration with the SADC Business Council Tourism Alliance, airline executives stressed tourism boards’ power lies in leveraging market data and industry relationships to convince sceptical carriers of new routes’ long-term viability.

“Tourism is more than just leisure; it’s a critical economic activity that requires strategic thinking and collaboration across sectors,” said Kojo Bentum-Williams, UN Tourism’s Senior Africa Communications Expert.

Sylvain Bosc, former Chief Commercial Officer of SAA and Fastjet, stressed the importance of demonstrating sustained profitability. “Destination marketing organisations (DMOs) must sell a long-term vision highlighting the destination’s growth prospects and economic impact,” he said. “Creative incentives like co-marketing, reducing airline costs, and quantifying passenger volumes can be more powerful than direct subsidies.”

Bosc noted DMOs need to “bring new light” to data airlines already have by offering insights into upcoming local economic developments like new mines or infrastructure projects that could drive corporate traffic. “Local insights can provide airlines with the confidence they need to invest in new routes,” he said.

Natalia Rosa, Project Lead of the SADC Business Council Tourism Alliance, underscored the critical role of aviation in regional development: “Aviation is not a luxury, it’s the lifeblood of a modern regional economy. Improved air connectivity unlocks a range of benefits: it streamlines travel, opens doors for new tourism markets, and strengthens regional economic ties.”

Gavin Eccles, Head of Vertical at BAE Ventures, emphasised tourism boards must be “at the table” with compelling cases backed by local market insights, travel trade ties and unique selling points that airlines often lack.

“Tourism boards should not only provide data but also offer a local perspective that airlines may not have,” Eccles said, citing India’s successful “Incredible India” branding undermined by poor connectivity.

Regional coordination like aligned visa policies, joint itinerary promotion and tapping conservation funds can also help finance route development. But Tim Harris of Helm Growth Advisors cautioned: “Retaining and expanding existing airline services should be the priority before attracting new routes.”

While direct subsidies face sustainability questions, Bentum-Williams said other incentives enable an “environment of trust” for profit-focused airlines.

“There’s a need to change the narrative from just paying airlines to fly routes to creating an environment of trust and confidence,” he said.

Jillian Blackbeard, CEO of Africa’s Eden Tourism Association, highlighted successful collaboration with Proflight through local stakeholder and trade backing, building airline confidence without major incentives.

“We worked closely with Proflight and local stakeholders to ensure that routes were supported by the trade and the private sector, which helped build confidence in the airline and led to successful route development without significant financial incentives,” Blackbeard shared.

Coordinated efforts leveraging DMOs’ destination expertise can unlock increased connectivity – a lifeline for Africa’s tourism economies long grounded by poor air links.

The AviaDev Africa workshop was designed as a platform for action to address the challenges of the aviation industry and collaborate on solutions. The intention from the outset was to examine how tourism stakeholders, including national tourism organisations and private sector tourism associations, can become involved in route development and assist airlines with route promotion. The success of the workshop and has now secured it a place at AviaDev 2025 in Zanzibar. Scheduled for the welcome reception day before the main conference, it will equip tourism delegates with essential route development building blocks and comprise two days of networking and collaboration focused on reshaping African aviation’s future.

The Executive Board of the International Monetary Fund (IMF) completed today the sixth reviews under Cameroon’s Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements. The completion of the ECF-EFF reviews allows for an immediate disbursement of SDR 55.2 million (about US$ 72.7 million), bringing total disbursements under the arrangements to SDR 483 million (US$ 644.6 million). The Executive Board also completed the first review under the Resilience and Sustainability Facility (RSF) arrangement. Completion of this review makes available SDR 34.5 million (US$ 45.4 million).

The Executive Board approved waivers of nonobservance of two performance criteria on the floor on the non-oil primary fiscal balance at end-December 2023 and the continuous zero ceiling on the accumulation of new external payment arrears on the ground that the nonobservance was minor and temporary. In addition, the Executive Board approved a waiver of applicability for four end-June 2024 performance criteria, for which data are not yet available and there is no evidence that they were not observed.

Cameroon’s three-year ECF-EFF arrangements were originally approved by the IMF Executive Board for a total amount of SDR 483 million (US$ 689.5 million, or 175 percent of quota) in July 2021. An extension of these arrangements of 12 months was approved in December 2023 to allow more time to implement the policies and reforms, and access was augmented by SDR 110.4 million (US$ 145.4 million, or 40 percent of quota). The 18-month RSF was approved by the Executive Board in January 2024 in the amount of SDR 138 million (US$ 181.7 million, or 50 percent of quota).

Cameroon’s ECF-EFF-supported program continues to provide a strong anchor for the authorities’ economic program, notably efforts to achieve post-COVID-19 recovery, restore the country’s fiscal and external sustainability and unlock inclusive and private sector-driven growth. The RSF supports Cameroon’s efforts to adapt to and mitigate the impact of climate change, reinforce the growing engagement of development partners and other stakeholders in climate-resilient development and catalyze additional climate financing.

Preliminary data indicate that Cameroon’s post-COVID-19 recovery continued last year, with overall economic growth estimated at 3.3 percent, slightly below expectations due to external and domestic factors, including supply chain and energy disruptions and a contraction of oil production. Growth is expected to pick up to 3.9 percent in 2024 and remain above 4 percent in the medium term as domestic demand strengthens and the external environment stabilizes. Inflation moderated to 5.9 percent at end-2023. A continued decline to 5.5 percent is expected by end-2024.

At the conclusion of the Executive Board’s discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, made the following statement:

“Cameroon’s economic growth continues despite the challenging domestic and external environment. Moreover, while the balance of risks remains tilted to the downside, the country’s medium-term outlook is favorable. Although performance under the Fund-supported program has been mixed, the ECF-EFF arrangements are supporting the authorities’ efforts to maintain macroeconomic stability and implement priority reforms to promote inclusive growth. Moreover, the authorities are committed to implementing corrective measures to improve program performance and accelerate reforms.

“To preserve macroeconomic stability, it is important to maintain a fiscal path in line with program objectives. This implies strengthening domestic non-oil revenue mobilization and public financial management. Limiting spending done through exceptional procedures is essential to achieve budget discipline and integrity.

“Cameroon’s financial soundness indicators have generally improved, but vulnerabilities remain. The commitment by the authorities to advance bank recapitalization in compliance with the COBAC regulations and Basel capital adequacy framework is welcome.

“To improve the business environment and support private sector-led inclusive growth, it is critical to implement governance reforms, address corruption vulnerabilities, and strengthen the AML/CFT regime.

“The authorities have made commendable progress under the RSF, which is helping Cameroon integrate climate considerations into its institutional and regulatory frameworks and enhance its capacity to adapt and mitigate the effects of climate change. It is essential to maintain the reform momentum to further strengthen the institutional framework for climate policies, build resilience to climate shocks, and catalyze new investments from donors and the private sector.”

Source: IMF

Cameroon plans to raise $761.4 million (CFA467 billion) from international capital markets, according to a decree signed by President Paul Biya. The funds are needed to meet IMF requirements and boost regional foreign exchange reserves.

The decree, which modifies the 2024 Finance Law, states that the money will be sourced from “external banking markets.” This move was not initially part of the 2024 state budget. The funds will be used to clear domestic debt arrears from 2000 to 2019. These arrears include unpaid salaries (CFA303 billion), tax refunds (CFA216 billion), and various commercial debts (CFA122 billion).

The government had adopted a repayment plan over three to seven years, but the IMF pressured for quicker action. Resolving this issue is crucial for Cameroon to receive an additional CFA240 billion in budget support from various donors.

Local capital markets could not provide the necessary liquidity due to high demand from other CEMAC states. Thus, Cameroon will reduce its issuance of Treasury bonds in the regional market by CFA95 billion.

By turning to global capital markets, Cameroon aims to satisfy IMF requirements, secure a three-to-seven-year repayment window, and strengthen foreign exchange reserves with an additional CFA707 billion ($1.15 billion).

The operation may involve a syndication or private deal. For example, Senegal recently raised $500 million at a 7.75% interest rate under similar conditions. Cameroon will need to choose a financial institution to arrange the deal, with options like JP Morgan or Citi.

Once finalized, Cameroon will join other African countries like Benin, Côte d’Ivoire, Kenya, Senegal, and Zambia, which have raised funds in 2024. Investor reactions are uncertain, especially since rating agencies downgraded Cameroon due to technical delays, not actual defaults. Moody’s, for instance, assigned a stable outlook but such ratings often affect international borrowing costs.

Source: Business in Cameroon

Many vendors at the Great Soppo Market, popularly known as “OIC Market”, have been displaced from their business locations by Buea municipality authorities.

An ongoing road construction project is underway at the Bakweri town stretch in Great Soppo, which has led to the closure of the main road which leads to the area.

Currently, vehicles now use the Great Soppo market as a transit road to Bakweri town.

To make the road more accessible and free of any hindrance, some vendors have been displaced and moved to the Bwitingi market, popularly known as the Buea Central Market, which many consider to be unsafe due to frequent attacks by Ambazonia fighters in the area.

One of the sellers expressed her concerns, pointing out that it would be difficult to build a new client base because some of the buyers would have a hard time locating them.

Another trader said that she would experience a massive decline in sales because the Bwitingi market only opens twice per week.

The Great Soppo Market (OIC Market), which is operational throughout the week irrespective of any imposed lockdowns by the separatists groups, is the most visited market in Buea since the start of the ongoing crisis.

While many people are angry that they are being moved to a new location, many do agree that the city needs to develop, adding that Buea is in dire need of such infrastructure projects.

“Our city needs good roads and this road will go a long way in reducing the growing traffic in Buea. We are growing as a city and we need modern infrastructure to make our lives easier,” one of the traders said.

“Our city officials are trying to make our lives better and we all know that our current market location is simply not the best as it creates lots of traffic and this hurts us all. We must accept our pain in the interest of our city and I am sure the road will be a blessing to all Buea residents and tourists,” he added.

By Cecilia M. Manjang

The Economic and Monetary Community of Central Africa (CEMAC) experienced an economic slowdown in 2023, with growth falling to 1.7% from 3.1% in 2022, according to the semi-annual CEMAC Economic Barometer published by the World Bank on Monday, June 17, 2024. Growth is expected to rebound to 2.5% in 2024.

The report revealed that CEMAC’s economic performance lagged behind the West African Economic and Monetary Union (WAEMU) and Sub-Saharan Africa, which recorded growth rates of 3.4% and 2.9%, respectively.

The slowdown in CEMAC was mainly due to a recession in Equatorial Guinea, where growth plummeted to -5.8% in 2023. This decline was caused by reduced hydrocarbon production and domestic demand. Additionally, Gabon’s growth decreased from 3% in 2022 to 2.3% in 2023.

Conversely, Cameroon posted the fastest growth in the region, averaging 3.4% between 2021 and 2023, thanks to a diversified economy and less reliance on hydrocarbons.

Chad demonstrated resilience despite the ongoing conflict in neighboring Sudan. Its GDP growth rate reached 4.1% in 2023, driven by increased oil production and public investments.

The Central African Republic and Congo faced significant fiscal pressures, with high deficits and debt-to-GDP ratios.

The World Bank also highlighted a rise in public debt in the region, reaching 52.8% of GDP in 2023. Public spending increased to 20.1% of GDP from 18.3% in 2022, reducing the budget surplus to 1.1% of GDP.

Inflation decreased in 2023 due to strict monetary policies by the Bank of Central African States (BEAC), but it remained above the regional target. “To support the exchange rate arrangement and contain inflationary pressures, the BEAC policy rate was maintained at five percent since March 2023 following a cumulative increase by 175 basis points from November 2021 to March 2023,” the report stated.

The World Bank pointed out several development challenges facing CEMAC, including high and stagnant poverty rates, a lack of job opportunities, and rapid population growth. To address these issues, the Bretton Woods institution recommended that member countries strengthen economic governance, improve public sector efficiency, create a favorable environment for the private sector, and enhance human capital through policies aimed at fostering a healthy and skilled workforce.

In the medium term, the World Bank forecasts moderate economic growth for CEMAC, reaching 2.5% in 2024, with a slight increase projected for 2025-2026.

Source: Business in Cameroon

Cameroon’s inflation rate averaged 6.3% between April 2023 and April 2024, according to a report on household consumer prices from the National Institute of Statistics (INS). This rate remains more than double the 3% tolerance threshold within the CEMAC.

However, there was a decrease of over 1% from the 7.4% recorded in 2023. The INS noted that the 2023 rate was the third highest in 29 years, following 32.5% and 9% in 1994 and 1995, respectively, after the CFA franc devaluation.

The INS identified key inflation drivers as an 8.7% increase in food prices and a 15.7% rise in transport costs. “The rise in food prices is mainly due to higher prices of bread and cereals, vegetables, and fish and seafood. The increase in transport costs is primarily due to higher road passenger transport costs, driven by fuel price adjustments at the pump starting February 3, 2024,” the report stated.

Monetary policy had a limited impact on inflation. The rate averaged above 6% from April 2023 to April 2024, despite the Central African States Bank (Beac) intensifying its austerity measures since late 2021. Beac’s measures included suspending liquidity injections into banks, intensifying liquidity withdrawals, issuing Beac bonds to remove liquidity from banking systems, and gradually raising key interest rates.

Beac aims to dry up banks to tighten access to financing for states, individuals, and other economic operators. Central bank analysts believe restricting credit access reduces the proportion of monetary-origin inflation in CEMAC countries. However, Beac officials admitted that only 20% of the current inflation is of monetary origin.

Source: Business in Cameroon

The Bank of Central African States (BEAC) has resumed liquidity injections into banks in the Economic and Monetary Community of Central Africa (Cemac), marking the first such operation since February 2023. The BEAC injected CFA 120 billion, per a statement released on June 11.

As a reminder, the bank has decided to suspend injections as part of its tightening of monetary policy aimed at combating galloping inflation in the Cemac zone. However, before this suspension, the central bank of the Cemac countries had progressively reduced the volume of its weekly liquidity injection operations in banks, from CFA250 billion to just CFA50 billion.

BEAC officials explained that the reduction and suspension of liquidity injections were intended to dry up banks’ cash reserves, restricting access to financing for governments, individuals, and businesses. The central bank hoped this would address the estimated 20% of inflation attributed to monetary factors.

The BEAC did not clarify whether this liquidity injection is a one-time operation or a response to the banks’ increasing need for funds after more than a year of tightened credit conditions. Since late 2021, Cemac banks have faced severe restrictions on accessing central bank refinancing tools, including higher key interest rates and the halt of liquidity injections.

On the contrary, banks have endured significant withdrawals from their reserves through intensified liquidity absorption operations and the recent issuance of BEAC bonds, further draining their liquidity. Despite these measures, inflation remains high in Cemac countries. In Cameroon, for instance, inflation rose by an average of 6.3% from April 2023 to April 2024, according to the National Institute of Statistics. This rate is more than double the 3% threshold tolerated in the Cemac region.

Source: Business in Cameroon