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Impact on the sector’s growth

  • Imports of processed fruit products estimated at $6.2 mln a year resulting in overall trade deficit of $5.42 mln. Focused development of fruit processing industry for local consumption and export will leverage the strengths of a strong agri-economy and significantly influence the BoT
  • Additional agri-fruit processing plants (juice and jams) could have a high impact on jobs
  • Potential sector employment of at least 5000
  • This sector could be highly beneficial for local fruit producers as a destination for raw materials while increasing the economic value of processed products


Market opportunities

  • Global demand currently $25.22 bln with a CAGR of 4.32% (2006-2010)
  • Slightly reduced regional demand by AGOA countries currently to $0.35 bln with a negative CAGR of -0.6% (2009-2010)

 

Competitiveness

  • Cameroon has abundant supply of raw materials (mangos, bananas, pineapple)
  • Power generation and efficient road networks across the country are critical to this sector
  • Majority of large scale manufacturers have to rely on diesel generators and bore hole water to ensure optimum processing conditions
  • Agri-fruit processing knowledge is limited to those working within the sector and will have to be supplemented by increased industrial engineering and artisan training

Investor prospects

  • Tampico Fruits Company; Frutas Company Ltd; Esambecam Co Ltd; Cam Sugar Co Ltd

Impact on the sector’s growth

  • Eco and leisure tourism is a good foreign exchange earner with a significant impact on BoT if done properly
  • Large impact of eco and leisure tourism upon jobs and incomes. Currently, there are 9 000 tourism-related businesses, generating about 60 000 direct jobs.
  • The sector does not provide inputs to other sectors, but drives local demand for other sectors, e.g. food and beverage, construction materials, etc.

Market opportunities

  • FIFA World Cup stimulated global demand for African tourism. In 2010, there were 500 000 registered tourists in Cameroon, which contributed to 3% of Cameroon Public Investment Budget. It is forecast that this will increase to 13% by 2035.
  • Previously Europe was main origin of tourists, but number of tourists from Africa has been increasing steadily, with CEMAC countries providing 59% of African tourists.

Competitiveness

  • Attractions: Korup National Park that harbours plants species millions of years old; Dia Reserve which was classified as a World Patrimony site by UNESCO; Mont Cameroon; etc
  • Transport links, power supply, tourism facilities are critical barriers. Currently 2 539 hotels across all segments, with 38 773 rooms and 44 110 beds. By 2035 expected to be 5 689 hotels, 156 023 rooms, 170 260 beds. Cameroon has 3 international airports as well as four maritime ports. However high cost of air travel hindering tourism.
  • Skills, professionalism and experience in tourism are extremely limited, but can be developed in fairly short time-frame.
 

Investor prospects

  • Currently, foreign hospitality brands such as Ibis, Hilton, Meridien operate within Cameroon, alongside local players.

Impact on the sector’s growth

  • Cement imports for 2010 estimated at $49.8 mln a year resulting in overall trade deficit of $49.7 mln. With only 1 recognized manufacturer, development of local material supplies will save tens of millions per year in imports as construction industry continues to grow
  • A cement/construction material plant could have a high impact on jobs. Potential sector employment of at least 5000
  • This sector is critical to increased competitiveness of many other sectors – infrastructure, tourism, manufacturing, housing, etc.

Market opportunities

  • Demand for cement and other construction material has increased steadily as cities of Douala and Yaoundé continue to grow rapidly
  • Supply (2010) estimated at 106,500 tonnes against demand in excess of 213,000 tonnes
  • Prices are relatively high, around $10-$11 per 50kg bag due to shipping
 

Competitiveness

  • Limestone and marble are found mainly in the Northern part of the country. Reserves of limestone deposits in figuil are estimated at 600,000 tons and those of marble in Bidzar at 2,500.000 tons. Other limestone occurrences were found in the south west (Moko, Mbalangi, Bogongo…), the south (Mintom) and the Littoral  Provinces
  • Power generation and efficient road networks across the country are critical to this sector
  • Current skills base of approx 600 people. Skills (quarrying, basic manufacturing) not as complex as in many sectors; most can be sourced/developed locally

Investor prospects

  • CIMENCAM , Cameroon’s major cement company, enjoys a monopoly-like status and serves all the six countries of the Central African Economic and Monetary Community (CEMAC)
  • Attempts by other foreign investors to penetrate the sector have failed

Impact on the sector’s growth

  • Export of processed timber estimated at $611.6 mln a year resulting in overall trade surplus of $609.47 mln
  • Timber makes up 47.2% of manufactured exports; further development of this sector will have relatively minimal impact of BoT
  • Timber processing contributes approx 15% of the manufacturing labor market with over 100 saw mills, driers, woodworking shops and parquet flooring factories; 5000 additional jobs could be created
  • This sector is highly beneficial to timber producers as a destination for raw materials
  • Improved processing of raw materials will increase competitiveness of construction industry (tourist lodges, housing construction, luxury furnishing of office spaces)

Market opportunities

  • Cameroon processed tropical timber industry represents approx 3% of the global demand
  • Intense global competition from Canada, Brazil and EU countries drive down prices
  • Majority of exports destined for Europe (40%) and Asia (30%)
  • Declining regional and local demand for processed timber; mostly supplied by Gabon
  • High costs of production and stiff competition depresses prices and restricts margins
 

Competitiveness

  • Vast tracks of timber plantations in the south stretching from east to west
  • Plantations are proactively managed according to ensure sustainability of raw materials
  • Roads connecting the timber plantations are 75% tarred and 25% dirt or poor condition
  • Saw mills and manufacturing plants are located close to major ports (Douala and Kribi)
  • Electrical power supply must be supplemented by diesel generators
  • No training facilities for timber education; mostly on-the-job training (manufacturing plants)

Investor prospects

  • Approximately 30 companies operating within sector; 50% local, 50% foreign investors

Impact on the sector’s growth

 



Market opportunities

 

 

Competitiveness

 

Investor prospects

Impact on the sector’s growth

  • While very important to the efficient running of the economy, local financial services not likely to have a significant impact upon the BoT, current imports of financial services are negligible
  • Significant employment potential, minimum 20 000 jobs
  • Critical to funding the growth of the economy, particularly SMEs


Market opportunities

  • A massive demand for access to financial services in evident, particularly within the context of micro-lending and express fund transfer services. # active borrowers from micro-lenders has increased by 436% in the period 2001 – 2009. Likewise, the gross loan portfolio has grown 3068% in the same period. Global interest rate between 30 – 50% on average.

 

Competitiveness

  • ICT sector in Cameroon has seen considerable development and efforts have been made to reform and liberalise the ICT sector.
  • Well established and dynamic industry within Cameroon.

Investor prospects

  • Heavily concentrated, dominated by 3 lending banks. Citibank, Standard Chartered and Credit Lyonnais Cameroon are all present. 5/11 banks have major foreign participation. MoneyGram and Western Union also have a strong presence. A group in Singapore investors recently expressed interest.

Impact on the sector’s growth

  • Combined import of all articles of apparel estimated at $160,9 mln a year resulting in overall trade deficit of $157,5 mln
  • Renewed development of this sector could significantly affect the BoT
  • Textile and clothing processing contributes approx 6.2% of the manufacturing labor market and 12.2% to Manufacturing Value Add (MVA)
  • Further development of this sector could result in 5000 additional jobs being created
  • This sector is highly specialised and is limited in its ability to enhance the competitiveness of sectors other than raw material production (cotton, wool, synthetic fibers)


Market opportunities

 
  • Intense competition from Asia and India throughout entire value chain (raw materials, processing, labor, transportation) make this an unattractive market for Cameroon unless they can manufacture and export apparel at a price competitive with current global trends or identify a niche market (hospital garments for doctors and nurses)
  • Steady regional and local demand for apparel
  • Cameroon is a major market for surplus clothing/out dated fashion from the EU
  •  

Competitiveness

  • Remnants of previous investment in the textile sub-sector have fuelled the supply of basic raw materials however, high production costs have depressed local production
  • Stable power supply for manufacturing process and efficient road networks linking farms to industrial areas across country are critical to this sector
  • Apparel manufacturing skills consistent in the industry based on previous sector experience

Investor prospects

  • Preliminary feasibility studies conducted by UNIDO indicate a declining investment opportunity based on extremely tough global competition, radically altered industry purchasing trends and associated investment risks; only a handful of manufacturers still in operation

Impact on the sector’s growth

  • A large proportion of Cameroonians seek studies abroad. The establishment of private schools will generate significant Fx savings
  • Schools, universities and training institutions will generate significant employment (5 – 10 000)
  • Development of the sector will be beneficial to the up skilling of human capital across virtually all sectors of the economy.

Market opportunities

  • The private sector is the fastest growing segment in higher education of many countries, as families seek to improve their future. Increased demand for private education is, in part, as a result of high population growth. For example, students from sub-saharan Africa account for almost 6% of international students.
 
 

Competitiveness

  • Cameroon has the land and facilities that can be refurbished into private learning institutions
  • Lack of power and transport within Cameroon is a barrier, but investors likely to come whilst such infrastructural requirements are developed. This is due to the significant gap that exists between supply and demand.
  • There is a critical shortage of skilled teachers and trainers, and it may take many years to fill the gap. Also need a clear accreditation system and quality control.

Investor prospects

  • International providers of private education are increasingly seeking to establish branches elsewhere, especially in developing countries. However, no known prospects already planning investment in this sector, but there are many operators of schools and institutes in neighboring countries, such as Ghana, who should be interested

Impact on the sector’s growth

  • Current pharmaceutical imports are estimated at $134.3 mln and growing at a CAGR of 8.18% resulting in a trade deficit of $133.8 mln
  • Pharmaceutical manufacturing facilities would be beneficial to creating jobs in Cameroon. However, job creation would be minimal (<5,000)
  • Pharmaceuticals would act as a potential demand driver for medicinal plants, packaging etc.; availability of locally-produced lower-cost medical supplies could improve health and productivity in all sectors

Market opportunities

  • Global demand is growing, but from well-established pharmaceutical companies; this sector is not a global export opportunity for Cameroon
  • There is a growing demand for pharmaceuticals in Cameroon
  • Prices are often subsidized by the Government and donors in poorer regions
 

Competitiveness

  • Cameroon does not have the assets to support pharmaceutical manufacturing, and it would need to source raw materials internationally
  • While power & transport are important, volumes of finished product are small and high value, and products are for local market and immediate vicinity, not global export
  •  

Investor prospects

  • Globcentralized on major cities and towns;
  • Benchcam Pharama Co; Noble Social Group Health Service; Radiant Pharmaceutical Africa Ltd, Atamawah al and regional players are setting up distribution in region; but industry is generally International; Emmaco Ltd

Impact on the sector’s growth

  • Combined export of all textiles estimated at $92.9 mln a year resulting in overall trade surplus of $27.6 mln. Negative CAGR (-2.28%)
  • Textile and clothing make up 0.8% of manufactured exports; further development of this sector will have minimal impact of BoT
  • Textile and clothing processing contributes approx 6.2% of the manufacturing labor market
  • Further development of this sector could result in 5000 additional jobs being created
  • This sector is highly specialised and is limited in its ability to enhance the competitiveness of sectors other than raw material production (cotton, wool, synthetic fibers)

 

Market opportunities

  • Intense competition from Asia and India throughout entire value chain (raw materials, processing, labor, transportation) make this an unattractive market for Cameroon unless they can manufacture and export textiles at a price competitive with current global trends
  • Declining regional and local demand for textiles due to abundance of cheaply manufactured goods from Asia and India

 

Competitiveness

  • Remnants of previous investment in the textile sub-sector have fuelled the supply of basic raw materials however, high costs and waning demand have depressed local production
  • Textile manufacturing skills consistent in the industry based on previous sector experience

Investor prospects

  • Preliminary feasibility studies conducted by UNIDO indicate a declining investment opportunity based on extremely tough global competition, radically altered industry purchasing trends and associated investment risks; only a handful of manufacturers still in operation