Slow Economic Growth Blamed on Crisis

(Cameroon Tribune) A general assembly of GICAM harped on the need for State-private sector dialogue, the need to revisit the 2018 Finance Law and improve upon the business environment.
Going by the business cartel, GICAM, 2017
would be a year of underperformance or even continued regression for the economy and Cameroonian companies. Business people of the cartel made the observation during their general assembly in Douala, December 21, 2017.
Growth rate in 2015 was nearly 6 per cent and 4.6 per cent in 2016. It is expected to fall by 4 per cent in 2017. The main reasons are rampant security crisis in parts of the Far North and East Regions for almost four years and drastic drop in oil prices.
The security crisis has undermined local economic structures and paralysed a good number of companies, especially those active in tourism, transport, trade with neighbouring countries, as well as producers and distributors of products highly consumed.
The drop of more than 40 per cent in one year of the price of crude oil, which contributes for a wide part of the CEMAC countries' budgets, that is, 30 per cent of Cameroon's budget, has fed a large portion of the budget and external deficits.
Celestin Tawamba, President of GICAM, shared three points: First, the return to a programme with the IMF, 11 years after reaching the completion point of the HIPC Initiative, raises questions, he said. It translates at least two things: the lessons of the past have not been learned and the room for manoeuvre created by the HIPC to consolidate the macroeconomic framework and make the business environment attractive is eroded.
On the other hand, there is reason to deplore a lack of autonomous anticipation and regular adjustment of the economy and finances by public authorities. Second, the economy continues to show structural weaknesses due to its low industrialisation, limited diversification and relative dependence on oil. Third, direct investment is still insufficient, illustrating recurrent hesitations of potential investors, domestic and foreign.
Christopher JATOR