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Impact on the sector’s growth

  • Cameroon imports an estimated $123.6 mln a year in minerals (various forms) resulting in a trade deficit of approx $118.7 mln
  • Potential sector employment of at least 10,000
  • Additional investment in minerals will significantly increase annual earnings
  • Energy, metals, aggregates critical to development of other sectors – power, infrastructure, construction, manufacturing, glass, etc


Market opportunities

  • Global demand for minerals continues to grow, driven by massive growth in Asia
  • Presently estimated global mineral reserves are 20 to almost 1,000 times larger than present annual production, depending on the commodity of interest
  • Large unmet regional and local demand in CEMAC

Competitiveness

  • Substances exploited clays; laterites; pozzolana; sands; precious stones such as diamond & sapphire; gold; iron-ore; cobalt; base metals & other mineral substances. Subsoil holds major untapped reserves of bauxite, aluminium content varies between 43% and 47%
  • Power and transport are critical for this sector; however, if viable deposits are found, investors are prepared to operate within limitations. Rio-Tinto’s construction of Song Mbengue & Grand Ngodi hydro dams to supply sufficient power to its mining operations
  • Limitations in geological survey and GIS data
  • Majority of mining operations are artisanal and employ only limited skilled persons
  • Technical skills (geologists, engineers) are in v short supply; not only for investor operations, but for pre-investment mapping, technical studies, etc

 

Investor prospects

  • Afko Mining (gold), Geovic Cameroon (nickel & cobalt), Cameroon Mining Company (gold, diamonds & sapphires), Cimencam (limestone & pozzolana), Rocaglia (marbles & limestones), Rio Tinto (aluminium)

Impact on the sector’s growth

  • Cameroon currently imports 50 per cent of its consumption of gas products. Further development in this sub sector could have a significant impact on BoT
  • Potential sector employment of at least 20,000
  • Energy, metals, aggregates critical to development of other sectors – power (Kribi thermal power plant), infrastructure, construction, manufacturing


Market opportunities

  • Global demand for gas continues to grow, driven by growth in Asia
  • Liquefied petroleum gas (LPG), produced by SONARA as a product of crude oil refining, covers 40 per cent of domestic demand

Competitiveness

  • Cameroon’s natural gas reserves are estimated at 300 billion m3, of which 186 billion m3 are proven reserves located in the Rio del Rey and Douala/Kribi-Campo basins
  • Power and transport are critical for this sector; however, if viable deposits are found, investors are prepared to operate in many other countries with similar limitations
  • Cameroon have the skills and supporting services to compete, although a relatively new industry, Cameroon already competes in this sector and has well established technical skills (geologists, engineers)

Investor prospects

  • Cameroonian gas remains unexploited for reasons of profitability and lack of outlets
  • SNH and the Equatorial Guinean authorities reportedly signed an agreement to undertake a study for the exportation of Cameroonian natural gas to Equatorial Guinea, where there is a liquefaction factory
  • Noble Energy Inc. of the United States and Petronas Carigali Gas Ltd. of Malaysia signed a $119 million natural gas and petroleum exploration contract with SNH

Impact on the sector’s growth

  • Petroleum products are an essential element of the economy and government resources enjoying a trade surplus of approx 51, 000 barrels per day
  • Sales of petroleum (crude and refined) represented about 57 per cent of the country’s total exports, amounting to $1.6 billion
  • Potential sector employment of at least 20,000
  • Heavy dependence on oil revenues to drive social and infrastructure development
  • Energy, metals, aggregates critical to development of other sectors – power, infrastructure, construction, manufacturing, glass, etc


Market opportunities

  • Global demand for oil continues to grow, driven by growth in Asia
  • Production reached a maximum of 182,000 barrels per day in 1986. Since 1987 the volume of prospecting activities has diminished, partly because of the international oil crisis, resulting in a steady decline in production

Competitiveness

  • Oil production expected to decline in the medium term as deposits become depleted
  • Size and commercial viability of recently discovered deposits needs to be confirmed
  • Power and transport are critical for this sector; however, if viable deposits are found, investors are prepared to operate in many other countries with similar limitations
  • Kribi-Doba pipeline places Cameroon as a crucial transit point for future oil exports from landlocked neighbors
  • Cameroon already competes in this sector and has well established technical skills (geologists, engineers)

Investor prospects

  • Since the 2000 liberalization of downstream activities in the petroleum sector, a dozen local operators have emerged in the distribution market. Distribution is dominated by the subsidiaries of large international groups operating within the Petroleum Professionals Grouping (GPP), which holds a market share of almost 95% (TOTAL, Shell, Perenco)

Impact on the sector’s growth

  • Transport projects (build and improve roads, bridges and airports; build road & railway connections to neighboring countries) will increase imports in short-term; but in longer-term will reduce costs of imported goods and enable exports of all products
  • Transport sector accounts for 6% of Cameroon’s GNI, 53% of which is generated by road transport which employs more than 88% of total transport sector personnel
  • During build phase, very large employment generation: tens of thousands of jobs; During maintenance phase, will still support >6000 jobs
  • 26% of paved roads are in a good or normal condition; 26% are in mediocre condition; and 48% in a bad state of repair. Unsatisfactory state of the network increases road transport costs and undermines the competitiveness of export sectors


Market opportunities

  • Large local demand for inbound and outbound transportation; for local roads and airports, ability and willingness to pay for service will be limited, but users likely to be willing to pay for international road & rail connections and airports on toll/fee basis

Competitiveness

  • Cameroon occupies a strategic position to serve as a transit corridor into land locked countries in the sub-region
  • Port of Douala is the main entry port for most of Cameroon, Chad and CAR
  • Limbe and Kribi ports provide key oil and petroleum focussed facilities for regional export
  • Cameroon can develop a competitive infrastructure if it can overcome low productivity levels, a looming energy crisis, the adverse effects of the global financial crisis, food insecurity and high unemployment
  • Technical capacity to further develop transport network is well established locally
  • Government recently raised first Bond to finance key infrastructure projects

Investor prospects

  • Several global investors have invested in similar transport infrastructure projects in the region. Significant potential for PPP expressed by Government

Impact on the sector’s growth

  • Electricity produced by 3 hydroelectric dams with total installed capacity of 722 MW, remainder of installed network capacity (298 MW) is expensive thermal capacity
  • Improved local power generation will significantly reduce future demand for diesel imports
  • Potential sector employment of 5-10,000
  • 95% dependent on hydropower for its energy needs; electricity access rate (48%)
  • Affordable, reliable energy critical to competitiveness of all other sectors of economy


Market opportunities

  • Public sector demand (6 % p.a increase) estimated to be capacity of 4 700 GWh (842 MW) in 2015; and 7600 GWh (1370 MW) in 2025
  • Industrial demand estimated at ±1315 GWh (150 MW). The Edéa aluminium factory extension project, will increase demand to 500 MW by 2015, implementation of GESP 10/20 to develop the Bauxite-Aluminium sector, and Industrial Zone of the Kribi port requires additional energy of+13 000 GWh (1500 MW) from the year 2016 to 2025

Competitiveness

  • Second largest hydroelectric energy potential after DRC ,estimated at 20,000 MW
  • Considerable potential for utilisation of organic material and waste products (biomass)
  • Small scale Solar Energy used in the NE but commercial potential remains unexploited
  • Transport links for import of equipment and materials and power transmission/distribution infrastructure will be critical to commercial viability of IPPs
  • Given long lead times for major hydro power projects, it may be possible to address these barriers in parallel. For smaller scale electrification projects with less extensive equipment and material infrastructure requirements, the barriers can be overcome in the short term
  • critical technical skills (engineers) are in short supply; not only for investor operations, but for pre-investment feasibility, technical studies etc.

Investor prospects

  • EDC signed agreement with Rio Tinto (ALUCAM smelter) for the off take of power from a new hydro-electric plant to be built at Me’Mve Ele