Cameroon’s economy has historically relied on agriculture, timber, oil, and mining. While these sectors contributed significantly to GDP growth, volatility in commodity prices exposed the country to economic shocks. Over the past decade, policymakers have prioritized economic diversification—encouraging investments in light manufacturing, services, technology, and value-added processing. By reducing dependence on primary exports and fostering inclusive growth, Cameroon aims to build a resilient economy that benefits a broader population.
The oil sector—centered on offshore fields near Kribi and binds offshore platforms—accounted for over 30% of government revenues in the early 2010s. However, declining reserves and fluctuating crude prices have led to stagnating production. To bridge revenue gaps, the government auctioned exploration licenses in 2018 for deepwater blocks, attracting interest from international majors like Shell and TotalEnergies. Nevertheless, production remains limited due to high operational costs and global transitions toward renewable energy.
Timber exports—primarily okoume, sapelli, and ayous—complemented oil revenues. Cameroonian forests, once the world’s second largest source of tropical logs, declined due to overlogging and illegal felling. The 2005 Moratorium on Coupe Industrielle Immediat (immediate industrial logging) halted raw log exports, incentivizing domestic processing. Sawmills and plywood factories in Kribi and Edea upgraded equipment, shifting from exporting logs to producing veneer, plywood panels, and furniture. The push for “Made in Cameroon” value addition boosted employment, diversified export markets, and aligned with the African Continental Free Trade Area (AfCFTA) opening in 2021.
Agriculture retains its pivotal role. While cocoa, coffee, and cotton exports decline relative to GDP share, diversification within agriculture has gained traction. Palm oil production—led by CDC’s estates—expands processing capacity, supplying edible oils domestically and regionally. Irrigated rice projects in the Far North aim for self-sufficiency, reducing the $200 million in annual rice imports. Horticulture (tomatoes, onions, peppers) feeds urban markets, with agro-processing clusters near Yaoundé exporting packaged sauces to neighboring countries. Government incentives—tax breaks for mechanization equipment and duty exemptions on agricultural machinery—encourage modernization.
Light manufacturing focuses on consumer goods. In Douala’s Bonabéri Industrial Zone, companies produce cement (Cimencam), sugar (Sosucam), and beverages (Socépi). Beverage plants bottle local fruit juices—mango, pineapple, guava—packaged for domestic consumption and export to Gabon and the Democratic Republic of Congo. Pharmaceutical manufacturing has emerged: EFDAL Pharmaceuticals (operating in Yaoundé) produces essential generics—antimalarials, antibiotics—reducing dependence on imported medicines. These factories adhere to WHO Good Manufacturing Practices (GMP), facilitating export potential to ECOWAS markets.
The services sector—accounting for over 50% of GDP—drives diversification. Telecommunications has expanded rapidly: mobile penetration surges above 90% due to operators like MTN Cameroon and Orange Cameroon offering 4G services. Fintech innovations—mobile wallets, digital lending—cater to previously unbanked rural populations. E-commerce platforms like Afrimalin and Jumia Cameroon facilitate retail, from electronics to fashion. Logistics companies provide last-mile delivery solutions, bridging gaps between urban centers and rural villages.
Tourism—long overshadowed by neighboring Gabon and Senegal—is reimagined as an economic driver. The government’s Plan for the Development of Tourism 2020–2030 identifies 20 strategic sites—ranging from Mount Cameroon to Campo Ma’an National Park. Investments in infrastructure: refurbishing airports in Douala, Yaoundé, and Garoua; upgrading roads to major tourist attractions; and constructing eco-lodges through public–private partnerships. Promotional campaigns—“Experience Cameroon”—target adventure travelers, birdwatchers, and cultural tourists. While annual tourist arrivals hovered around 500,000 in 2019, projections anticipate doubling by 2030 with improved marketing and visa facilitation.
Information and Communication Technology (ICT) has been a cornerstone of diversification. Douala’s “Smart City” pilot project integrates fiber-optic networks, free public Wi-Fi in downtown areas, and digital kiosks for e-government services—bill payments, tax filings, and business registrations. Tech hubs—ActivSpaces and Jong Cameroon—host hackathons fostering innovative solutions for urban traffic management, e-health platforms, and digital education. Startups like Gifted Mom and TradeMark Africa (discussed in a previous post) demonstrate viable business models poised for regional scaling.
Mining remains underexploited relative to potential. The Northern regions harbor significant bauxite deposits near Minim-Martap, but logistical challenges—lack of rail access to deepwater ports—stalled large-scale exploitation. However, a 2024 agreement between China’s China Nonferrous Metal Mining Group (CNMC) and Cameroon’s Ministry of Mines aims to develop both a mines-to-factory bauxite refining corridor and invest in rail infrastructure connecting to Kribi Deep-Sea Port. Gold artisanal mining in the East Region—centering around Lomié and Batouri—continues informally, with government efforts to formalize operations, introduce safer extraction methods, and restrict child labor.
Renewable energy’s growth (outlined in a previous post) also contributes to diversification. By 2025, government targets call for 30% of electricity generation capacity from renewables. Independent power producers—Sun Cable Energy (solar) and Sinohydro (small hydros)—bid for long-term PPAs (Power Purchase Agreements) from the national utility (ENEO). The aim is to stabilize power supply for industries and encourage foreign direct investment (FDI) in manufacturing.
Micro-, Small-, and Medium Enterprises (MSMEs) are critical to this diversification. Over 80% of jobs are in the informal sector—street vending, artisanal workshops, and small-scale trading. The government’s 2023 MSME Act created a government agency (National Agency for the Promotion of SMEs, ANPME) providing streamlined registration, low-interest loans, and training programs. Local chambers of commerce partner with the International Trade Centre (ITC) to offer export readiness workshops—helping small producers of cocoa, coffee, and handicrafts access international markets.
Infrastructure development under the Plan for Emerging Cameroon (2010–2035) continues to expand road networks—linking landlocked regions to ports—and improve port facilities. The Kribi Deep-Sea Port, operational since 2018, accommodates Panama-class vessels, attracting bulk cargo and container traffic. Industrial parks near the port and in Douala’s Bonanjo district are zoned for light manufacturing—textiles, agro-processing, electronics assembly—benefiting from duty-free import of raw materials and machinery.
Financial sector reforms support diversification by directing credit flows. The Central Bank (BEAC) and Cameroonian Ministry of Finance introduced priority sector lending guidelines in 2022: banks must allocate at least 20% of their loan portfolios to agriculture, MSMEs, and green projects. Partial credit guarantee schemes—backed by the World Bank’s Private Sector Development project—reduce collateral requirements for startups seeking loans. Mobile banking services and agent banking expand financial access into rural areas, enabling entrepreneurs to save and invest securely.
Challenges persist: bureaucratic red tape, inconsistent policy implementation, and corruption concerns hamper business operations. The 2024 World Bank Doing Business report ranked Cameroon 167th out of 190 economies—citing difficulties in starting a business, registering property, and obtaining construction permits. To address this, the government initiated a “One-Stop Shop” reform in 2023: consolidating company registration, tax registration, and social security registration into a single portal—reducing time and cost for new enterprises.
By orchestrating targeted investments in infrastructure, human capital, and regulatory reforms, Cameroon aims to transition from a resource-dependent economy to a diversified, knowledge-driven one. As agriculture modernizes, manufacturing adds value, services digitize, and tourism flourishes, Cameroon can harness its human and natural resources—achieving sustainable growth that uplifts all regions and communities.
