WORKING PAPER 24
IHDUSTRIALIZATION IN SUB-SAHARAN AFRICA: Phase One
COUNTRY CASE STUDY -- CAMEROON
by
IGOR KARMILOFF
ISBN 0 85003 112 5
OVERSEAS DEVELOPMENT INSTITUTE
Regent's C o l l e g e
Inner C i r c l e , Regent's Park
LONDON, NWl 4HS
Preface
S i n c e e a r l y 1987, the Overseas Development I n s t i t u t e has been engaged on
a major p i e c e of r e s e a r c h under the g e n e r a l t i t l e : ' I n d u s t r i a l i s a t i o n m
sub-Saharan A f r i c a ' , i n v o l v i n g i n - d e p t h case s t u d i e s of seven A f r i c a n
c o u n t r i e s : Botswana, Cameroon, Cote d ' l v o i r e , Kenya, N i g e r i a , Zambia and
Zimbabwe. The case s t u d y work f a l l s i n t o two d i s t i n c t p a r t s . F i r s t an
a n a l y s i s of the i n d u s t r i a l i s a t i o n process from the e a r l y 1960s t o the
it[id-1990s, f o l l o w e d by d i s c u s s i o n of the o p t i o n s f o r and p o s s i b i l i t i e s of
a c c e l e r a t e d i n d u s t r i a l i s a t i o n i n the l a t e 1980s and 1990s.
T h i s Working Paper p r e s e n t s the f i r s t phase of the r e s e a r c h f o r Cameroon.
Working Papers 25 and 26 present the f i r s t phase of the r e s e a r c h f o r
Zambia and Zimbabwe. I t i s a l s o a n t i c i p a t e d t h a t the r e s e a r c h work on
N i g e r i a w i l l be produced as an ODI Working Paper. The f i r s t phase
a n a l y s i s f o r Kenya and Botswana are b e i n g reproduced as D i s c u s s i o n Paaers
of the I n s t i t u t e of Development S t u d i e s at the U n i v e r s i t y of Sussex from
where they can be o b t a i n e d .
I t i s a n t i c i p a t e d t h a t the completed c o u n t r y s t u d i e s i n c o r p o r a t i n g both
phases of the r e s e a r c h work w i l l be p u b l i s h e d t o g e t h e r as a book towards
the end of 1989.
Any f u r t h e r i n f o r m a t i o n on these Working Papers or the o v e r a l l r e s e a r c h
p r o j e c t s h o u l d be addressed t o Mr Roger R i d d e l l at the ODI.
CONTENTS
1.
INTRODUCTION
1
2.
MANUFACTURING PERFORMANCE:
3.
THE FOOD PROCESSING INDUSTRIES
18
4.
LINKAGES AND EFFICIENCY
27
b.
CONCLUDING DISCUSSION
35
Subsector S t r u c t u r e and Growth
ANNEX 1
ANNEX 2
6
38
CELLUCAH: e x c e r p t s trom t h e o f t i c i a l b r o c h u r e , 1984/5
Kfc'.fERENCES
'
40
43
TABLES
Table 1
I n t e r n a t i o n a l Comparison of Cameroon's
Economic Performance, 1970 - 1980 p r i c e s
4
Table 2
Value and S t r u c t u r e of E x p o r t s , 1970/1 1981/2
7
Table 3
C a p i t a l and Ownership S t r u c t u r e s of
M a n u f a c t u r i n g E n t e r p r i s e s , 1984/5
8
Table 4
M a n u f a c t u r i n g growth, IDIC S t r u c t u r e and
Employment 1975 -1985
9
Table 5
Performance of A p p a r e l M a n u f a c t u r i n g F i r m s ,
1970 - 1982
12
Table 6
E x p o r t s of Raw and P r o c e s s e d Aluminium
P r o d u c t s , 1977 - 1984
21
Table 7
P r o d u c t i o n (10^ tons i n 1984/5) 1983
D e f i c i t s (%) of Raw Food P r o d u c t s
23
Table 8
Consumption of Animal P r o d u c t s by O r i g i n ,
1984/5
24
Table 9
Output Index of Food P r o c e s s i n g I n d u s t r i e s
(1974/5 = 100)
24
Table 10
S t r u c t u r e of I n t e r m e d i a t e Consumption i n
I n d u s t r y . 1979/80
28
Table 11
I n t e n s i t y of D i r e c t Domestic Input
Procurement, 1985/6 i n a Sample of 18
M a n u f a c t u r i n g Firms
30
Table 12
Domestic Resource Cost C o e f f i c i e n t s (DRCs)
of Sampled M a n u f a c t u r i n g A c t i v i t i e s i n 1975/6
34
Annex l A
Cameroon's GDP: S t r u c t u r e and Growth, 1970 1984
38
Annex IB
Cameroon's P o p u l a t i o n and Labour Force
(1965 - 1985)
38
Annex IC
a) M a n u f a c t u r i n g Value Added (MVA)
b) Growth Rates
(1975 - 1985)
39
Annex ID
FCFA/US D o l l a r Average
(1960 - 1986)
39
Par/Marltet Rates
1. INTRODUCTION
S i t u a t e d a l o n g the Gulf of Guinea, between 2° and 12° n o r t h of the
Equator, the c o u n t r y of j u s t under h a l f a m i l l i o n km^ and a p o p u l a t i o n of
j u s t under 10 m i l l i o n i n 1984, enjoys a v a r i e t y of c l i m a t e s and of
v e g e t a t i o n because of i t s d i v e r s i f i e d topography. I t a l s o has one of the
h i g h e s t demographic growth r a t e s i n A f r i c a . R a i n f a l l i s abundant i n a l l
but the N o r t h , b o r d e r i n g Chad, which p r o v i d e s Cameroon w i t h a l a r g e
h y d r o e l e c t r i c p o t e n t i a l and the p o s s i b i l i t y not o n l y of s t a y i n g v i r t u a l l y
s e l f - s u f f i c i e n t i n b a s i c f o o d s t u f f s , but a l s o to have l a r g e e x p o r t a b l e
s u r p l u s e s of t r o p i c a l timber and of s e v e r a l i n d u s t r i a l c r o p s . (Cameroon's
main economic c h a r a c t e r i s t i c s are l i s t e d i n Annex t a b l e 1.)
For more than a decade a f t e r independence i n 1960, the c o u n t r y ' s
socio-economic c l i m a t e was p e r t u r b e d by problems of p o l i t i c a l
r e u n i f i c a t i o n between the two f e d e r a l s t a t e s — one E n g l i s h - s p e a k i n g ,
b o r d e r i n g N i g e r i a i n the West and the o t h e r , French-speaking, i n the
South and E a s t .
Because of h i g h r a t e s of economic growth and u r b a n i z a t i o n , the
p r o p o r t i o n of townspeople shot up from 14% at independence, to 37% i n
1984, b r i n g i n g i n i t s wake s e r i o u s problems of imbalance between the
r u r a l and urban a r e a s — p r i n c i p a l l y l o c a t e d i n the S o u t h — urban
unemployment, overcrowding and inadequate s o c i a l i n f r a s t r u c t u r e .
Cameroon's m i n e r a l wealth i n c l u d e s hydrocarbons, b a u x i t e and a s - y e t u n e x p l o i t e d r e s e r v e s of i r o n o r e . O i l began t o be marketed i n 1978, but
the known d e p o s i t s have a time h o r i z o n of o n l y ten more years at c u r r e n t
r a t e s of e x t r a c t i o n .
In broad terms, the c o u n t r y ' s development s t r a t e g y u n t i l 1985
aimed
at enhancing economic s e l f - r e l i a n c e , under the s l o g a n of "communitarian
l i b e r a l i s m " . I n d u s t r i a l i z a t i o n r e s t e d on the t w i n p i l l a r s of
c o n s o l i d a t i n g food s e l f - s u f f i c i e n c y , f i r s t stage import s u b s t i t u t i o n and
more p r o c e s s i n g of domestic raw m a t e r i a l s f o r e x p o r t . The on-going s i x t h
f i v e - y e a r p l a n (1986-91) adds the aims of d e v e l o p i n g n a t i o n a l norms and
standards f o r improving the q u a l i t y of domestic p r o d u c t i o n , and of making
more use of a v a i l a b l e p a t e n t s and manufacturing l i c e n s e s . Drawing l e s s o n s
from the p a s t , the p h y s i c a l and f i n a n c i a l i n f r a s t r u c t u r e i s t o be
strengthened and j u d i c i o u s use made of p o l i c y i n s t r u m e n t s t h a t i n v o l v e
s u b s i d i e s and a f f e c t f a c t o r p r i c e s .
Cameroon's c u r r e n c y — the CFA Franc — i s pegged t o the French f r a n c
at the f i x e d r a t e of CFAF 1 = Ff 0.02 so that f o r e i g n exchange
t r a n s a c t i o n s are based on the P a r i s exchange r a t e s . (The F C F A - d o l l a r
market exchange r a t e s 1960 - 1986 are set out i n Annex 1.)
P u r c h a s e s / s a l e s of f o r e i g n c u r r e n c i e s are not s u b j e c t t o any tax or
s u b s i d y . A l l payments to France and to c o u n t r i e s l i n k e d to the French
Treasury by an O p e r a t i o n s Account above CFAF 500,000 are f r e e of c o n t r o l .
E x p o r t s t o a l l c o u n t r i e s r e q u i r e t h a t documents be d o m i c i l e d w i t h
a u t h o r i z e d banks and proceeds r e p a t r i a t e d e x p e d i t i o u s l y . Non-franc export
e a r n i n g s have t o be s u r r e n d e r e d .
P r i o r a u t h o r i z a t i o n i s necessary f o r f o r e i g n c r e d i t o p e r a t i o n s .
Under the 1984 Investment Code, f o u r types of f i s c a l b e n e f i t s are
a v a i l a b l e f o r new p r o j e c t s m areas l i s t e d as s t r a t e g i c m the
development p l a n and which generate employment, f o r e i g n exchange and h e l p
to d e c e n t r a l i z e economic a c t i v i t i e s . The n a t u r e and d u r a t i o n o f the
b e n e f i t s vary a c c o r d i n g t o s i z e of i n v e s t m e n t , l o c a t i o n , s t r u c t u r e ,
t e c h n o l o g y and f a c t o r mix. They are comparable t o those found i n most
franco-phone A f r i c a n c o u n t r i e s . '
Cameroon's customs t a r i f f i s CCCW based, 6 - d i g i t , 5-column and
i n c l u d e s the customs duty, p l u s complementary and f i s c a l t a x e s as w e l l as
some o t h e r l e v i e s . The r a t e s of customs duty a r e g e n e r a l l y low ( < 30%)
and m o s t l y ad valorem.^ But when the c a s c a d i n g a d d i t i o n a l taxes and
charges are t a k e n i n t o f u l l account, t h e r e s u l t i n g l e v e l s of nominal
t a r i f f p r o t e c t i o n becomes s u b s t a n t i a l . S i n c e A f r i c a n t r a n s p o r t c o s t s and
commercial margins a r e r e l a t i v e l y h i g h , t h e w h o l e s a l e p r i c e of imported
goods m Cameroon averages out at 155% of t h e i r CIF v a l u e (200% FOB).
Imports from and e x p o r t s t o South A f r i c a a r e p r o h i b i t e d . A s p e c i a l
a u t h o r i z a t i o n i s r e q u i r e d f o r the import of some " c o n t r o l l e d goods, i n
a d d i t i o n to an import l i c e n s e . A l l o t h e r i m p o r t s , i r r e s p e c t i v e of o r i g i n ,
are s u b j e c t t o l i c e n s i n g when over s p e c i f i e d l e v e l s , but l i c e n s e s are
issued f r e e l y . 3
'The average 1979-83 r a t i o of c o l l e c t e d customs revenue t o
the t o t a l v a l u e of i m p o r t s came to l e s s than 30%, whereas the
c o u n t r y ' s nominal import t a r i f f l e v e l s y i e l d e d at t h a t time a
p o t e n t i a l average of c o l l e c t a b l e t r a d e revenue of 54% ad valorem;
whence the importance f o r t h e Budget of the i n c e n t i v e s c o n t a i n e d
i n the c o u n t r y ' s Investment Code.
^ D u t i e s f o r b a s i c foods range from 7.5 - 20%, w h i l e those
f o r consumer goods and " l u x u r i e s " extend to 30%. On raw
m a t e r i a l s , i n t e r m e d i a t e p r o d u c t s and c a p i t a l goods r a t e s vary
between 2.5 and 20%, w i t h a few c a r r y i n g a 30% duty.
The complementary import t a x adds on between 5 and 25% more
on competing mass consumption i m p o r t s from non-UDEAC s o u r c e s . But
f o r a s e r i e s of " i n f a n t " a c t i v i t i e s ' output the complementary t a x
p r o t e c t i o n goes up t o 90%.
A v a r i a b l e " u n l o a d i n g t a x " i s charged per u n i t weight as
w e l l as v e t e r i n a r y , p h y t o - s a n i t a r y , c h e m i c a l and m i n e r a l
"inspection" fees.
S p e c i f i c a l l y l i s t e d i m p o r t s c a r r y an a d d i t i o n a l 10% t u r n o v e r
tax.
3 Other c o n t r o l l e d import c a t e g o r i e s a r e :
- l i s t e d " s e n s i t i v e " p r o d u c t s and those r e q u i r i n g
authorization;
- o t h e r p r o d u c t s , d i r e c t l y competing w i t h l o c a l
manufactures, c o v e r e d by import quotas e s t a b l i s h e d as a
percentage of d o m e s t i c purchases of such manufactures - t h e
" t w i n n i n g " regime;
- the i m p o r t a t i o n of used c l o t h i n g , c o l z a o i l ,
h u r r i c a n e lamps and l a r g e v e h i c l e s i s p r o h i b i t e d .
prior
I n d u s t r i a l i s a t i o n i n Cameroon has been the s u b j e c t of numerous
i n v e s t i g a t i o n s m recent years.'' These have focused v a r i o u s l y on:
- Cameroon's s i n g u l a r l y robust growth;
a f t e r the coming on stream of o i l , and i t s r i s i n g i m p o i t a n c e f o r
the balance of payments, on the "Dutch syndrome'"";
- the p r o c r a s t i n a t i o n of the a u t h o r i t i e s m u t i l i s i n g the w i n d f a l l
gains from f a v o u r a b l e o i l p r i c e s and volumes f o r domestic investment;
- and, more r e c e n t l y , w i t h the d e p l e t i o n of Cameroon's monetary
r e s e r v e s , - - the l i q u i d i t y s h o r t a g e , s t a g n a t i n g investment and
i n f l a t i o n a r y pressures.
CaraeEoon's o v e r a l l economic performance stands up v f t l l to a
comparison w i t h the average f o r A f r i c a n c o u n t r i e s and, i n l e s p e c t of per
c a p i t a income, imports and i n v e s t m e n t , s u r p a s s e s t h a t of d e v e l o p i n g
c o u n t r i e s i n g e n e r a l . The n o t a b l e e x c e p t i o n i s i t s r e l a t i v e l y low r a t i o
of e x p o r t s t o GDP (see t a b l e i )
F i e l d work f o r the present study c o i n c i d e d w i t h an i n t e n s i v e e f f o r t
under the a e g i s of the M i n i s t r y of P l a n n i n g (using c o n s i d e r a b l e e x t e r n a l
e x p e r t i s e ) to f a s h i o n a long-term frame f o r the c o u n t r y ' s f u r t h e r
i n d u s t r i a l development. I t s p o l i t i c a l backdrop was the r a t h e r sudden
awakening of the l e a d e r s h i p to the harshness of the e x t e r n a l environipe"t
and to the economy's v u l n e r a b i l i t y to the consequences of slow growth i n
the North accompanied by exchange r a t e i n s t a b i l i t y and the h i g h cost of
borrowing.
U n c o n t r o l l e d goods are s u b j e c t to l i c e n s i n g when v a l u e d
over CFAF 500,000, but the document i s i s s u e d f r e e l y .
at
" These s t u d i e s are l i s t e d m the Annex and were c a r r i e d ^>ul
by the World Bank, UNIDO, SEDES EDIAFRIQUE TIERS MONDE and the
EIU, to name the ones t h a t are most w i d e l y a v a i l a b l e .
' The Dutch syndrome i s the term used to denote the
c o e x i s t e n c e , w i t h i n the t r a d e d goods s e c t o r , of booming and
l a g g i n g s u b - s e c t o r s , r e s u l t i n g i n the r e l a t i v e d e c l i n e of
m a n u f a c t u r i n g i . e . d e - i n d u s t r i a ] i z a t i o n . The e a r n i n g s from
petroleum e x p o r t s have not been p u b l i c i z e d on a r e g u l a r b a s i s
and have been kept i n an non-budgetary account. A c c o r d i n g to
A f r i c a n news magazines, o i l revenue made up about 60% of
Cameroon's t o t a l f o r e i g n exchange e a r n i n g s i n 1986/7.
I n t e r n a t i o n a l Comparison of Cameroon's Economic Performance,
1970 - 1984 a t 1980 p r i c e s
Indicator
:Year:Cameroon: A l l A f r i c a : A l l D e v e l o p i n g C t r s .
GDP p.c. (USS)
:1970:
:1975:
:1980:
:1984:
737
786
1007
1172
:
:
:
:
654
719
762
692
:
:
:
:
722
860
971
947
MVA p.c. (USS)
:1970:
:1975:
:1980:
:1984:
84
80
97
116
:
:
:
:
46
51
59
59
:
:
:
:
112
139
165
163
Recorded E x p o r t s : 1970:
p.c.(USS)
:1975:
;1980:
:1984:
149
169
218
204
:
:
:
:
289
217
251
185
:
:
:
:
221
241
262
243
T o t a l Imports
p.c. (US$)
:1970:
:1975:
:1980:
:1984:
174
182
259
293
:
:
:
:
166
211
237
193
:
:
:
:
129
182
240
226
Exports/GDP
(per cent)
:1970:
:1975:
:1980:
:1984:
20.2
21.5
21.6
17.4
:
:
:
:
44.2
30.2
32.9
26.7
:
:
:
:
30.7
28.0
26.9
25.6
Imports/GDP
(per cent)
:1970:
:1975:
:1980:
:1984:
23.6
23.2
25.7
25.0
:
:
:
:
25.4
29.4
31.1
27.8
:
:
:
:
17.9
21.2
24.7
23.8
GFCF p.c. (USS) :1970:
:1975:
:1980:
:1984:
162
165
247
267
:
:
:
:
101
150
175
151
:
:
:
:
127
183
221
200
22.0
21.0
24.6
22.8
:
:
:
:
15.5
20.9
23.0
21.8
:
:
:
:
17.7
21.3
22.8
21.1
GFCF/GDP (%)
:1970:
:1975:
:1980:
:1984:
Source: UKIDO, based on data from the UN S t a t i s t i c a l O f f i c e .
The s t u d y i s d i v i d e d i n t o f i v e s e c t i o n s . S e c t i o n 2 p r e s e n t s an
overview of the economy's development s i n c e the e a r l y s i x t i e s . That i s
f o l l o w e d by an e x a m i n a t i o n of the part p l a y e d by the m a n u f a c t u r i n g
s e c t o r , s t r e s s i n g the reasons behind r e l a t i v e successes and f a i l u r e s of
m a n u f a c t u r i n g branches and e n t e r p r i s e s . The food i n d u s t r y i s the o b j e c t
of a c l o s e l o o k i n s e c t i o n f o u r . The f i f t h s e c t i o n d i s c u s s e s i n t e r s e c t o r a l l i n k a g e s -- w i t h p a r t i c u l a r a t t e n t i o n to the a g r o - i n d u s t r i a l
ones — as w e l l as the e f f i c i e n c y of r e s o u r c e use i n m a n u f a c t u r i n g . The
l a s t s e c t i o n draws t o g e t h e r the v a r i o u s arguments developed i n the study
to form the b a s i s f o r some c o n c l u d i n g
observations.
2. MANUFACTURING PERFORHftNCE:
S u b s e c t o r S t r u c t u r e and Growth
O v e r a l l i n d u s t r i a l o u t p u t , d e f i n e d i n Cameroon to i n c l u d e p r i m a r y
p r o c e s s i n g of a g r i c u l t u r a l and f o r e s t r y p r o d u c t s , as w e l l as p u b l i c
u t i l i t i e s , expanded over the long p e r i o d 1960/1-1984/5 by a very h e a l t h y
9% p.a. on average and much h i g h e r than GDP growth. «ithin the i n d u s t r i a l
aggregate, i t was m a n u f a c t u r i n g which was the s t a r p e r f o r m e r . That
s e c t o r ' s average annual growth d u r i n g the f i r s t 15 y e a r s (10.7%) was
double that of GDP. But i n the f o l l o w i n g nine y e a r s i t s expansion slowed
down c o n s i d e r a b l y and j u s t Icept pace w i t h the then o i l - p r o p e l l e d domestic
g r o s s output (7.5% p.a.).^
The p r i n c i p a l s o u r c e s of i n d u s t r i a l output growth d u r i n g the 1955-75
decade were e s t i m a t e d by M o r l d Banli economists to have been the
following:
Domestic demand
Import s u b s t i t u t i o n
Exporting
1965/6-1970/1
58%
25%
17%
1970/1-1975/6
51%
41%
8%
Source: W.B.,Indus t r i a l Development and P o l i c y i n Cameroon v o l . 1
(MVA)
p.26.
C a l c u l a t i o n s of the sources of growth of m a n u f a c t u r i n g v a l u e added
d u r i n g the 1975-80 and 1980-82 p e r i o d s by UNIDO concluded t h a t :
- f o r the s e c t o r as a whole, d u r i n g the f i r s t p e r i o d the main
impetus was p r o v i d e d by the growth of domestic demand, f o l l o w e d by
e x p o r t s i n a p r o p o r t i o n of 4:1, w i t h l i t t l e c o n t r i b u t i o n by i m p o r t substitution .
- In c o n t r a s t , d u r i n g the subsequent p e r i o d , the p r o p u l s i v e r o l e of
the l a t t e r r o s e c o n s i d e r a b l y , w i t h e x p o r t s c o n s t i t u t i n g a drag on growth
as t h e i r volume shrank i n r e l a t i v e terms.
The shares of manufactured and semi-processed goods i n Cameroon's
e x p o r t s f o r the y e a r s 1970/71 - 1981/2 are summarized i n Table 2. In the
course of these e l e v e n y e a r s t h e i r combined
share dropped from 23% t o 6% i n 1981/2 when petroleum p r o d u c t s ' share
came to 72% of commodity e x p o r t e a r n i n g s .
' During the s i x t i e s MVA grew at about 12% p . a . i n r e a l
terms. T h i s r a t e was r e g a i n e d d u r i n g the 1976-82 p e r i o d a f t e r a
slowdown (under 4% p.a.) between 1971 and 1976. The World Bank's
1984 Country Economic Memorandum on the Cameroon compares i t s
o v e r a l l m a n u f a c t u r i n g performance as e q u a l i n g t h a t of the I v o r y
Coast. I n the y e a r s subsequent t o 1982, m a n u f a c t u r i n g output
growth again slumped by about 3 percentage p o i n t s per annum.
The share of manufactures (70% of which were semi-processed
goods) i n Cameroon's commodity e x p o r t s f e l l from 22% i n 1975/6 t o
a mere 6% i n 1981/2.
Value and s t r u c t u r e of E x p o r t s , 1970/1 - 1981/2,
(FCFA m i l l i o n s and per cent)
1970/1
1979/80
1981/2
312.3
297.0
57S.5
Petroleum p r o d u c t s
0..2%
Other goods n.e.s.
3..3%
A g r i c u l t u r a l p r o d u c t s 73..1%
0 .2%
8..0%
70..^%
28.,1%
5..4%
50..3%
71 .
1..8%
20. 9%
Semi-processed goods
Manufactured goods
14..7%
6..9%
11..7%
3 .9%
.
3..9%
1 .7%
T o t a l Export Value
C u r r e n t FCA b i l l i o n s
of which
60.2
1975/6
(per cent)
17..8%
5..6%
Source: World Bank, CountrY_ Economic Memorandup;_, Cameroon, J u n e
1984, Annex t a b l e 6.
Data on e x p o r t e d manufactured goods, l a b e l l e d p_roduits_ ludust t i t l s
i n Cameroon's Note J\rmueJl^_de__Sta^
a slight rise m
t h e i r share i n t o t a l e x p o r t s i n 1983/4 to 3.2%, but a d i o p t u 2.7% i\i t h i
f o l l o w i n g year.
These developments underscore the d i f f i c u l t i e s f a c e d by Camer'-.on's
i n d u s t r i a l goods i n m a i n t a i n i n g t h e i r market shares abroad, i n c l u d i n g
n e i g h b o u r i n g c o u n t r i e s , whose i m p o r t - s u b s t i t u t i n g s t r a t e g i e s narrowed t ^ i
i n d u s t r i a l c o m p l e m e n t a r i t i e s which e x i s t e d i n c o l o n i a l t i m e s .
Import s u b s t i t u t i o n i n Cameroon up to the r p i d - s e v e n t i e s p r o g r e s s e d
f a r t h e s t w i t h the manufacture of consumer goods, when about 3/4 of the
apparent consumption of such goods was met out of domestic s u p p l y . ThL
p r o d u c t i o n of i n t e r m e d i a t e s and c a p i t a l goods i n Cameroon expanded v e r y
r a p i d l y but from a v e r y s m a l l base, l e a v i n g the i n d u s t r i a l s e c t o r
dependent on i m p o r t i n g over o n e - h a l f of the v a l u e of i t s i n t e r m e d i a t e
consumption. In o n l y f o o d , beverages and tobacco were dependency r.itio;-.
i n the 10%-20% range.
C a p a c i t y u t i l i z a t i o n i n i n d u s t r y as a whole was e s r i m a t e d Co hav,..
been i n the range of 2/3 t o 3/4 i n the years 1975 -77 and i n 1981,'when '
the h i g h e s t r a t e s were found m the beverages and tobacco i n d u s t r i e s and
the lowest i n base metals and f a b r i c a t e d metals p r o d u c t i o n . No p u b l i s l i e d
data are a v a i l a b l e f o r subsequent y e a r s but numerous i n d u s t r y - s p e c i f i <
s t u d i e s p o i n t t o a s u b s t a n t i a l r e d u c t i o n i)i these r a t e s — as has been
the case i n most Sub-Saharan A f r i c a n c o u n t r i e s . Lack of l o c a l s u p p l i e s
has been an i m p o r t a n t c o n s t r a i n t on c a p a c i t y use i n the food s u b s e c t o r .
" D i s l o y a l c o m p e t i t i o n " on the domestic f r o n t because of c o n t r a b a n d , p l u s
consumer b i a s have depressed c a p a c i t y use i n s e v e r a l l i n e s of consumer
goods. Some heavy i n d u s t r i e s vere p o o r l y o e r i j - i ^ - ^ r i z i o i l l j r r c z the
o u t s e t ; o t h e r s were based on f a u l o y deza.o; s : _ d L = £ . ; o : l l o : i ; r s vere
b e d e v i l e d by power f a i l u r e s . The rtiore co:o:oc;-ly s o i o = o O i . ^ e ; i - o l - d e i
i n a d e q u a t e l y t r a i n e d p e r s o n n e l and the l o n g d e l a y s i i r=-.--ooj : f : i : i a . l
a p p r o v a l f o r a d j u s t i n g producer p r i c e s t o r i s e s m i::p-_- oosos.
As might be expected, f a s t growth of i n d u s t r i a l output vas -::
e v e n l y spread among c o n s t i t u e n t s u b s e c t o r s . The l a r g e s t subseotor be=r
and s o f t d r i n k s m a n u f a c t u r i n g — ISIC 313) succeeded i n s t e a d i l y
improving i t s growth performance and i n r a i s i n g i t s share of t o t a l MVA t c
20% (see t a b l e s 3 & 4 ) . The next l a r g e s t s u b s e c t o r — f o o d i n d u s t r i e s (ISIC
3 1 1 ) — d i d v e r y w e l l o n l y i n years when domestic a g r i c u l t u r e expanded
s t r o n g l y . S e v e r a l poor h a r v e s t s i n the second h a l f of the s i x t i e s slowed
down i t s e a r l i e r h i g h r a t e of growth so t h a t , over the whole p e r i o d t o
1984/5, the food s u b s e c t o r j u s t maintained i t s share of t o t a l MVA. Base
metals m a n u f a c t u r i n g (ISIC 371) put i n a very s t r o n g performance
throughout the l a s t d e c a d e — j u s t the r e v e r s e of the path t r a c e d by
t e x t i l e s (ISIC 321). Chemicals f o r o t h e r than i n d u s t r i a l use (ISIC 352)
and n o n - f e r r o u s metals (ISIC 372) both p l a y e d a v e r y dynamic p a r t i n the
i n d u s t r i a l i z a t i o n process u n t i l 1980, when a g e n e r a l slowdown s e t i n .
At t h i s j u n c t u r e , a l o o k at the ownership s t r u c t u r e of m a n u f a c t u r i n g
a c t i v i t i e s m Cameroon, s e t out i n t a b l e 3, may be of i n t e r e s t .
Table 3
C a p i t a l and ownership s t r u c t u r e s of
m a n u f a c t u r i n g e n t e r p r i s e s , 1984/5
{FCFA b i l l i o n and per cent)
Activity
Agro-food
Wood/paper
Metals
Chems.Plast.
Text.Leather
Other Indus.
Capital
FCFA 109
98.8
24.3
27.4
12.6
9.1
8.6
64%
42
30
21
36
39
National
Publ.
French
Other
17%
16
64
32
10
32
7%
32
4
12
31
14
Priv.
12%
10
3
35
23
15
Source: IFC, reproduced i n UNIDO's I n d u s t r i a l Development Review
—Cameroon, A p r i l 1987, t a b l e 9.
The p a r t i c u l a r l y h i g h p r o p o r t i o n of non-French f o r e i g n p a r t i c i p a t i o n
i n the wood and paper s u b s e c t o r i s s o l e l y due t o CELLUCAM's f i n a n c i a l
s t r u c t u r e , where A u s t r i a n i n t e r e s t s were s u b s t a n t i a l . As f o r the t e x t i l e
and l e a t h e r s u b s e c t o r , f o r e i g n ownership was weighted by Lebano/Syrian
capital.
M a n u f a c t u r i n g growth, ISIC s t r u c t u r e and Employment 1975-85
(per cent)
Growth r a t e s
1975-84
M a n u f a c t u r i n g v a l u e added (MVA)
Employment i n m a n u f a c t u r i n g
Subsector's share i n MVA
1975
Food p r o d u c t s (ISIC 311)
8.0
Beverages (313)
24.9
Tobacco (314)
10.8
T e x t i l e s (321)
11.4
A p p a r e l (322)
3.1
L e a t h e r p r o d u c t s (323)
1.1
Footwear (324)
4.3
Wood p r o d u c t s (331)
1.2
F u r n i t u r e , wooden (332)
0.1
Paper & p r o d u c t s (341)
0.5
P r i n t i n g e t c (342)
1.0
I n d u s t r . c h e m i c a l s (351)
1.4
Other c h e m i c a l s (352)
7.9
Petroleum r e f i n i n g (353)
0.0
M i s c . hydrocarbons (354)
0.0
Rubber p r o d u c t s (355)
0.0
P l a s t i c p r o d u c t s (356)
2.1
P o t t e r y , c h i n a e t c (361)
1.5
G l a s s & p r o d u c t s (362)
1.1
Other n o n - m e t a l l i c miner.(369)3.1
Base metal p r o d u c t s (371)
1.9
4.8
Non-ferrous metals (372)
F a b r i c a t e d metal prod. (381) 0.6
N o n - e l e c t r . machinery (382)
6.1
E l e c t r i c a l machinery (383)
1.6
0.7
T r a n s p o r t equipment (384)
Other manufactured
prod.(390) 0.7
MANUFACTURING VALUE ADDED
100.0
5.03*
3.50
1980
10,.3
22 .1
9,.3
9,.6
3,.9
0,.5
4,.1
7,.2
1,.6
0,.0
2..1
0..5
4.,2
0..9
0.,0
0..1
0..9
1.,4
1.,4
3..3
5.,1
4. 4
.
1985
11.2
31.2
8.1
6.6
2.2
1.4
2.9
1.6
0.2
1.1
1.3
1.5
4.6
0.3
0.5
2.1
1.1
0.9
2.3
5.3
4.0
0.0
5.0
1.4
0.6
2.6
.
1. 3
1. 6
100. 0
100.0
Note* See Annex f o r d e t a i l s .
Source: UNIDO, A S t a t i s t i c a l Review of Economic and
Performance, January 1987, t a b l e s 4, 5 and 8.
Industrial
To get an u n d e r s t a n d i n g of the reasons f o r t h i s s t r u c t u r a l p a t t e r n ,
the more i m p o r t a n t m a n u f a c t u r i n g s u b s e c t o r s are examined i n t u r n , l e a v i n g
food i n d u s t r i e s f o r a s e p a r a t e and more d e t a i l e d c o n s i d e r a t i o n f u r t h e r on
i n the t e x t .
i ) Beverages
Per c a p i t a consumption of beer i n Cameroon i s h i g h even by A f r i c a n
s t a n d a r d s , h a v i n g reached some 60-70 l i t r e s per annum i n the e a r l y
e i g h t i e s — p r o p e l l e d by an e s t i m a t e d income e l a s t i c i t y of 0.6. B r e w e r i e s
(8) have doubled i n number over the l a s t 20 y e a r s . They a l s o manufacture
s o f t d r i n k s and have t h e i r own d i s t r i b u t i o n and t r a n s p o r t f a c i l i t i e s . I n
1985 they accounted
f o r no l e s s than 18% of t o t a l employment i n
manufacturing and growth i n t h e i r value added (1975-19841 a v e r ; ; ; ; i r i
p.a.
L o c a l purchases of i n p u t s were l i m i t e d to sugar, botrlc-s -li£"^r
c a s e s , crown c o r k s and l a b e l s , i n a d d i t i o n to water and e l e c t r i c i ' . y . z\i
share of imported i n p u t s b e i n g h i g h , s e v e r a l I/S p r o j e c t s had been
g e r m i n a t i n g f o r y e a r s e.g. growing b a r l e y l o c a l l y and p r o d u c i n g cassava
s t a r c h . At time of w r i t i n g no more than 7% of the t o t a l b a r l e y r e s i d u e o:
about 1S,000T were b e i n g s o l d as l i v e s t o c k feed. Another by-product of
brewing — u n r e f i n e d yeast — amounting to some 12,000T a w a i t s the
i m p l a n t a t i o n of p r o c e s s i n g f a c i l i t i e s f o r making i t i n t o an animal feed
a d d i t i v e . Thus two p r o m i s i n g I/S o p p o r t u n i t i e s are yet to be e x p l o i t e d .
Return on c a p i t a l i n brewing has been good, w i t h a steady 5% net
p r o f i t on t u r n o v e r . The e a r l i e r - m e n t i o n e d World Bank study found brewing
a c t i v i t i e s i n Cameroon to be v e r y e f f i c i e n t , w e l l managed, and p r i c e and
q u a l i t y c o m p e t i t i v e . Indeed e x - f a c t o r y p r i c e s of beer have, on o c c a s i o n ,
been below those o f f i c i a l l y a l l o w e d . But s i n c e beer i s a d i f f e r e n t i a t e d
p r o d u c t , brewing has not made a net c o n t r i b u t i o n to Cameroon's t r a d e
b a l a n c e , as the q u a n t i t y e x p o r t e d has been r o u g h l y matched by imported
beers i n recent y e a r s .
(ii)
Textiles
Employing some 2,600 workers (1985) and w i t h two l a r g e p l a n t s
l o c a t e d i n an u n d e r - i n d u s t r i a l i s e d area i n the North, t h i s s t r a t e g i c
branch expanded s t r o n g l y f o r about a decade a f t e r 1968 and then entered a
d e c l i n i n g phase. Yet domestic demand has been growing on average at 10%
p.a. f o r c o t t o n piece-goods and at 16% f o r cotton-based undergarments,
w i t h average per c a p i t a consumption e s t i m a t e d to be about 2 kg/p.a. A l l
the weaving, s p i n n i n g and f i n i s h i n g p l a n t s have s u b s t a n t i a l government
p a r t i c i p a t i o n through the S o c i e t e N a t i o n a l e d ' I n d u s t r i a l i s a t i o n (SNI)
h o l d i n g company. The raw c o t t o n , of good q u a l i t y , i s d o m e s t i c a l l y grown,
under the s u p e r v i s i o n of a j o i n t p u b l i c venture t h a t r e c e i v e s t e c h n i c a l
support from abroad. Hence the o n l y problem w i t h s u p p l y i s the p r i c e t h a t
has t o bepaid f o r ginned c o t t o n — which f o l l o w s world market q u o t a t i o n s
-and the h i g h c o s t of e l e c t r i c i t y i n the N o r t h . Labour p r o d u c t i v i t y i n
the m i l l s i s on par w i t h t h a t i n Europe and f i n i s h e d f a b r i c s are
competitive i n q u a l i t y .
At the i n d u s t r y ' s z e n i t h , i n 1980/1, when the CICAM s p i n n i n g and
weaving m i l l operated b r i e f l y at f u l l c a p a c i t y , 57 m i l l i o n meters of
c o t t o n f a b r i c were produced of which no l e s s than 37% were e x p o r t e d ,
l e a v i n g a net p r o f i t of 3.2% on t u r n o v e r . D e c l i n e ensued as the need f o r
replacement of o b s o l e s c e n t machinery c o i n c i d e d w i t h h i g h w o r l d c o t t o n
p r i c e s , that the a u t h o r i t i e s d i d not c u s h i o n f o r some time, as w e l l as
w i t h high d o l l a r c o s t s of imported i n p u t s .
Both of CICAM's s u b s i d i a r i e s , engaged i n downstream p r o c e s s i n g and
b l e n d i n g , have been loss-makers f o r almost a decade. SOLICAM,
n o t w i t h s t a n d i n g t h a t h a l f of i t s output of h o u s e l i n e n and t o w e l i n g had
once been e x p o r t e d , developed an e n d e m i c a l l y n e g a t i v e cash f l o w . I t had
been o v e r - s i z e d at the o u t s e t and debt s e r v i c i n g b u i l t up to almost onef i f t h of i t s t u r n o v e r . The r i s e i n the c o s t of c o t t o n t h r e a d r e s u l t e d m
the c e s s a t i o n of i t s e x p o r t s to Europe, d i s m i s s a l of 20% of i t s w o r k f o r c e
and very low c a p a c i t y u t i l i s a t i o n . To f l o a t i t anew, a merger f o l l o w e d
w i t h CICAH's second s u b s i d i a r y SYNTECAH, manufacturing f a b r i c s out of
1.1
imported s y n t h e t i c t h r e a d . The c h i e f problems faced by i t had been i t s
o b s o l e t e machinery, the poor h a n d l i n g of c l o t h — r e s u l t i n g i n a h i g h
p r o p o r t i o n of d e f e c t s - - and the commonly shared i n a b i l i t y t o compete
a g a i n s t f r a u d u l e n t l y imported (Asian) f a b r i c s t h a t were b e l i e v e d t o
comprise
over o n e - t h i r d of t o t a l apparent consumption.
Two o t h e r t e x t i l e f i r m s , SICABO and SAFIL had not been a b l e t o tace
i.ip t o c o m p e t i t i o n from a u t h o r i z e d imports, l e t alone the i l l e g a l ones,
and c a r r i e d l o s s e s even w i t h reduced p e r s o n n e l . T h e i r c . i p a c i t y
u t i l i z a t i o n had o s c i l l a t e d around 50%.
SCS was the c o u n t r y ' s s o l e "manuf act i i r e r " of ] u t e bags !out of
imported m a t e r i a l s - - 2 / 3 j u t e c l o t h and 1./3 j u t e yarn) . I t had been
burdened w i t h poor management and procurement, w i t h o v e r - s t a f f i n g and a
n e g a t i v e cash flow i n the face of market i n r o a d s by p o l y e t h y l e n e s a c k s .
S i n c e 1985 i t has passed i n t o new hands and may yet undertake weaving
j u t e c l o t h out of imported t h r e a d and d i v e r s i f y i n g i t s product mix. U n t i l
r e c e n t l y i t s e x p o r t s t o UDEAC markets have not exceeded 2% of t o t a l
s a l e s . An attempt t o r e p l a c e j u t e w i t h l o c a l l y grown ker.af f i b r e had been
s t u l t i f i e d by i t s h i g h labour c o s t , r e l a t i v e tn - o t t o n a>id food crop
prices.
In g e n e r a l , the c h i e f problem areas f o r t e x t i l e s i n C a m e r o o i i
can be i d e n t i f i e d as b e i n g :
- the magnitude of u n c o n t r o l l e d i m p o r t s ;
- the i s s u e of import l i c e n s e s without good knowledge of domestic
a v a i l a b i l i t i e s and inadequate customs c o n t r o l ovet the exact
n a t u r e of a u t h o r i z e d t e x t i l e i m p o r t s ;
- " s t i c k y " p r i c e s e t t i n g and adjustment procedures;
- inadequate s p e c i a l i z a t i o n l e a d i n g to u n e c o n o m i c a l l y s l i u r t
p r o d u c t i o n runs;
- v e r y poor marketing and p r o m o t i o n a l knowhow.
F i n a l l y i t s h o u l d be noted t h a t , as with b r e w e r i e s , t e x t i l e
have t h e i r own t r a n s p o r t and maintenance f a c i l i t i e s .
(ill)
planis
Apparel'
Garment p r o d u c i n g e n t e r p r i s e s i n Cameroon have beer, m a c r i t i c a l
phase f o r w e l l over a decade. I n c o n t r a s t t o the t e x t i l e branch, t h e i r
p r o d u c t i v i t y has remained very low. They have been l o s i n g market shares
both at home and abroad -- m a i n l y t o goods of A s i a n o r i g i n . A UNIDO
e s t i m a t e of apparent consumption and t r a d e dependence i n the e a r l y
e i g h t i e s g i v e s 29.2% f o r imports and 24.1% f o r e x p o r t s . N e a r l y a l l of the
l a t t e r was s o l d t o n e i g h b o u r i n g markets. But i t s h o u l d be borne i n mind
that u n a u t h o r i z e d imports of garments have been v e r y l a r g e , r a i s i n g t h L '
e f f e c t i v e import dependence t o probably 35%. As the consumption ot pagn-;
i n Cameroon i s o n l y 1/3 of UDEAC average, there i s a l a r g e p o t e n t i d l
s u r p l u s i n t h i s product l i n e w i t h e x i s t i n g i n s t a l l a t i o n s .
' The i n f o r m a t i o n i n t h i s and f o l l o w i n g paragraphs i s
i l l u s t r a t i v e being based on d i s c u s s i o n s w i t h r e p r e s e n t a t i v e s of
i n d u s t r y and commerce and not w i t h e n t e r p r i s e management.
There have been numerous c l o s u r e s of i n d u s t r i a l - s i z e d garment f i r m s
i n the past -- as shown i n t a b l e 5 -- and more were about t o take p l a c e
at t h e time of our f i e l d work.
Table 5
Performance
of A p p a r e l M a n u f a c t u r i n g f i r m s , 1970 - 1982
1970
Number of f i r m s o p e r a t i n g
Turnover (FCFA 10')
Employees (10^)
10
3
2.5
Source: GICAM, L'economie camerounaise,
1978
6
2.2
1.2
1982
4
0.9
0.5
1982-83, tome I I
H o s i e r y p r o d u c e r s , r e l y i n g on European i n p u t s , have had d i f f i c u l t y
i n o b t a i n i n g import l i c e n s e s , f o r c i n g at l e a s t one f i r m (with l a b o u r
p r o d u c t i v i t y at 30% of standard) t o operate at 10% of i t s c a p a c i t y and t o
envisage l i q u i d a t i o n . Another f i r m , p r o d u c i n g o u t e r garments and
impregnated c l o t h y i e l d i n g a h i g h p r o p o r t i o n of v a l u e added, h a v i n g a
s t r o n g l i n k a g e w i t h t h e upstream producer of i t s major i n p u t and a l r e a d y
e s t a b l i s h e d i n t h e UDEAC market, was i n a l i k e s i t u a t i o n because of a
p r i c e squeeze, t h e l o s s of market shares from new I/S a c t i v i t i e s abroad
and f r a u d u l e n t imports at home. Another e s t a b l i s h m e n t i n t r o u b l e had poor
procurement p r a c t i c e s and too l i t t l e m a r k e t i n g e x p e r t i s e t o draw upon.
In g e n e r a l , t h e volume of a p p a r e l e x p o r t s — m a i n l y t o UDEAC
c o u n t r i e s and t o t a l l i n g 442 q u i n t a l s o n l y i n 1984 — have f l u c t u a t e d
w i d e l y from year t o y e a r .
A problem common t o many a p p a r e l producers was c o m p e t i t i o n from
a r t i s a n a l producers f o r government t e n d e r s . The l a t t e r group have no
overheads t o worry about, pay s a l a r i e s below the l e g a l l e v e l s , keep no
a c c o u n t s , pay h a r d l y any t a x e s , and a r e exempt from h a v i n g t o p r o v i d e
f o r m a l guarantees of q u a l i t y and d e l i v e r y t i m e s .
The a p p a r e l f i r m w i t h the h i g h e s t r e c o r d of c a p a c i t y u t i l i z a t i o n i n
1986, was an e x p o r t - o r i e n t e d j o i n t v e n t u r e . But i t a c q u i r e d o n l y 10% of
i t s i n p u t s l o c a l l y and had a n e g a t i v e cash f l o w .
( i v ) Leather and footwear
Except f o r areas i n the n o r t h , Cameroon's ecology and c l i m a t e are
not i d e a l f o r l a r g e - s c a l e animal husbandry. T o t a l animal p o p u l a t i o n i n
1984/5 i s e s t i m a t e d at about 4 m i l l i o n heads of horned c a t t l e — m a n y i n
nomadic herds moving f r e e l y between f r o n t i e r ares of N i g e r i a , Chad and
the C e n t r a l A f r i c a n R e p u b l i c — ; a l i k e number of s m a l l r u m i n a n t s , and 0.9
m i l l i o n p i g s . E x p o r t s of unprocessed h i d e s and s k i n s have dropped from an
average of 2,000 tons i n 1973-74 t o about 900 tons i n 1983-85.
Only one p a r a s t a t a l tannery (the STPC) has been e s t a b l i s h e d t o date,
l o c a t e d i n the c a t t l e r e a r i n g area at a great d i s t a n c e from the c o u n t r y ' s
two i n d u s t r i a l a b a t t o i r s .
I t had to reduce
i t s o p e r a t i o n s m a i n l y to the
c o l l e c t i o n and export of raw h i d e s and s k i n s , s i n c e prime c o s t s of i t s
f i n i s h e d l e a t h e r were u n c o m p e t i t i v e l y h i g h even t o r domestic consumers.
Debts mounted, f o l l o w e d by bankruptcy and p r i v a t i s a t i o n i n 1985.
Value added by s e m i - a r t i s a n a l manufacturers of l e a t h e r
t r a v e l goods
and a c c e s s o r i e s d i d expand at a h e a l t h y r a t e (13.9%)
i n the 1975-85 decade and t h e i r employment at 2.7% p.a. However, import
displacement by t h i s branch was not s i g n i f i c a n t as the n e g a t i v e t r a d e
b a l a n c e f o r t h i s c a t e g o r y of p r o d u c t s more than doubled m v a l u e i n the
e a r l y e i g h t i e s . The USS 0.6 m i l l i o n of e x p o r t s went p r i n c i p a l l y to SSA
markets.
Shoe manufacturing was a l s o dominated by a p a r a s t a t a l — B a t a . I t s
p r o d u c t i v i t y reached European s t a n d a r d s and the q u a l i t y of i t s output
made i t c o m p e t i t i v e m n e i g h b o u r i n g markets. But these have become
p r o g r e s s i v e l y more s e l f - s u f f i c i e n t through i m p o r t - s u b s t i t u t i o n t h a t , on
o c c a s i o n , i n v o l v e d the same t e c h n o l o g y ( a c q u i r e d from the same soarc(~)
m a n u f a c t u r i n g a r t i c l e s of l i k e d e s i g n and q u a l i t y . The q u a n t i t i e s of
footwear exported from Cameroon d e c l i n e d as a consequence from 790 toi.b
i n 1970 to 370 tons i n 1980 and to a mere 100 tons i n 1983, h a l v i n g i t s
share i n the export v a l u e of a l l Cameroonian manufactures.
S e v e r a l r e c e n t years were l o s s - m a k i n g ones f o r BATA -- a s c r i b e d by
the h o l d i n g parent (SNI) to the domestic market b e i n g swamped by a
c o n j u n c t i o n of authori.zed imports at dumped p r i c e s of shoes ( o s t e n s i b l y
of a d i f f e r e n t q u a l i t y and type to those produced i n Cameroon) and
e x t e n s i v e contraband. The r e c o r d e d n e g a t i v e trade b a l a n c e on footwear
reached USSIO m i l l i o n i n 1980, coming dawn to $8.3 m i l l i o n by 1984/5,
Because of u n c e r t a i n t y r e g a r d i n g the t o t a l supply of footwear i n
Cameroon, o n l y a p a r t of the s h r i n k a g e i n the t r a d e d e f i c i t can be
a s c r i b e d t o import s u b s t i t u t i o n .
T o t a l employment i n shoe-making f e l l by 18% between 1975 and 19S5.
The employment e l a s t i c i t y f o r t h i s group of i n d u s t r i e s (0.25 as computed
by the World Bank's 1980 m i s s i o n ) was the lowest among a l l the
manufacturing subsectors.
v) Wood p r o d u c t s , paper and
printing
Cameroon's f o r e s t r e s o u r c e s are v a s t . They cover 24 m i l l i o n ha-- of
which over 30% i s dense t r o p i c a l f o r e s t - - and rank i t f o u r t h i n a l l
A f r i c a . Over 350 d i f f e r e n t s p e c i e s have been i d e n t i f i e d but they are
i n t e r s p e r s e d , r e q u i r i n g l o g g i n g to be s e l e c t i v e and, hence, c o s t l y . T h i s
n a t u r a l w e a l t h has been u n d e r - u t i l i z e d f o r reasons l i s t e d i n numerous
s t u d i e s c a r r i e d out under the a u s p i c e s of the FAO, UNIDO and the World .
Bank:
- the absence of a comprehensive timber s t r a t e g y ;
- low t e c h n i c a l p r o f i c i e n c y and o b s o l e t e machinery
70 foreign-owned s a w m i l l s ;
- h i g h p r o d u c t i o n l o s s e s and v e r y l i t t l e waste
recuperation;
i n most of tlie
- the inadequate secondary road network through t i m b e r l a n d
c a u s i n g d e l i v e r i e s to be u n r e l i a b l e and c o s t l y ;
- because of low p r o f i t a b i l i t y i n l o g g i n g , d i s a p p o i n t i n g l e v e l s
of i n v e s t m e n t .
The p r o p o r t i o n of l o g s d e l i v e r e d t o domestic p r o c e s s o r s — most
o f t e n of second q u a l i t y -- has h a r d l y r i s e n , having been 54.7% i n 1975/6
and 57.6% i n 1983/4. The wood m a n u f a c t u r i n g e n t e r p r i s e s i n c l u d e d t h r e e
match f a c t o r i e s , one woodpulp m i l l which was shut down i n 1985, f i v e
c u t t i n g and shaping u n i t s , two plywood and veneer p l a n t s , and a m u l t i t u d e
of s e m i - a r t i s a n a l manufacturers of b u i l d i n g t i m b e r , f u r n i t u r e e t c .
None of the f o u r l a r g e p a r a s t a t a l s i n t h i s s u b s e c t o r has made a
c o n s i s t e n t p r o f i t d u r i n g the l a s t f i v e y e a r s , although domestic demand
f o r t h e i r p r o d u c t s has been growing at a h e a l t h y 8% p.a. Import
s u b s t i t u t i o n has been complete i n veneers, plywood and improved wood, the
consumption of which i n c r e a s e d from 26,000
i n 1975 to 46,000 m^ i n
1984. But I/S has been o n l y p a r t i a l i n manufactured wood p r o d u c t s and
h a r d l y t r a c e a b l e i n f u r n i t u r e d u r i n g r e c e n t y e a r s . Domestic s u p p l i e s to
these e n t e r p r i s e s have been u n s a t i s f a c t o r y i n q u a n t i t y and i n q u a l i t y ,
good l o g s b e i n g pre-empted by e x p o r t s — c h i e f l y to the EEC. But the
q u a l i t y of f i n i s h e d l o c a l p r o d u c t s has a l s o been found wanting. The
s u b s e c t o r u n q u e s t i o n a b l y p r e s e n t s the case of a "missed o p p o r t u n i t y " .
Losses by the p a r a s t a t a l s have been n o t h i n g s h o r t of a s t r o n o m i c a l ,
mainly as the r e s u l t of the stoppage of the p u l p m i l l ' s o p e r a t i o n s two
years a f t e r s t a r t - u p . In 1980 CELLUCAM was the showpiece of Cameroon's
i n d u s t r i a l i z a t i o n s t r a t e g y and a turnkey model f o r C e n t r a l A f r i c a .
(Excerpts from the f i r m ' s p u b l i c i t y brochure are reproduced i n Annex 2.)
The s t o r y i s one of p o l i t i c a l m o t i v a t i o n s p r e v a i l i n g over economic
c o n s i d e r a t i o n s . The o r i g i n a l f e a s i b i l i t y study turned out to have been
s e r i o u s l y at f a u l t i n r e s p e c t of market demand, t e c h n i c a l p r a c t i c a b i l i t y ,
and the l e v e l s of f i x e d and o p e r a t i n g c o s t s . Located i n the same
g e o g r a p h i c a l a r e a as Z a i r e ' s very c o m p e t i t i v e pulp m i l l , CELLUCAM boasted
b e i n g the f i r s t i n the w o r l d t o c o n v e r t a l l s p e c i e s of timber i n t o paper
p u l p . I t a l s o had the m i s f o r t u n e of h a v i n g a s e c t i o n of i t s p r o c e s s c h a i n
blow up i n the f i r s t year of o p e r a t i o n . The i n i t i a l investment i n t h i s
monument to North-South c o o p e r a t i o n came t o more than US$ 400 m i l l i o n .
Two years a f t e r i t had been handed over t o the government i t s debts
amounted to FCFA 80 b i l l i o n . By mid-1982 i t s t o t a l s a l e s covered o n l y
o n e - t h i r d of v a r i a b l e c o s t s . ^ The f i r m ' s cumulated l o s s e s by mid-1985
amounted to FCFA 160 b i l l i o n — r o u g h l y e q u a l to the investment r e q u i r e d
f o r f o r e s t r y development i n Cameroon c o v e r i n g the next 15 y e a r s ! The
p l a n t was put up f o r s a l e or d i s p o s a l i n J u l y 1986.
The more commonly shared problems of the wood p r o c e s s i n g branch
included:
- n o n - s t a n d a r d i z e d , low q u a l i t y domestic raw m a t e r i a l s t h a t are
not " p r e - c u t " to meet commercial needs;
- timber c o n c e s s i o n s are hard t o come by and the p e r i o d s
SNI, Rapports
d ' A c t i v i t e s , l e s E x e r c i c e s 1981-2 et 1984-5.
g r a n t e d (5 years) too s h o r t t o recoup investment or get l o n g term banlc l o a n s , thus p r e v e n t i n g v e r t i c a l i n t e g r a t i o n :
- i n a d e q u a t e l y weathered t i m b e r , ( u n s u i t a b l e f o r d i r e c t use as
cement c a s i n g ) r e q u i r i n g users to i m m o b i l i z e c a p i t a l i n d r y i n g
inventories;
- l a g g i n g adjustment of a u t h o r i z e d p r i c e s to r e a l c o s t s .
The s u b s e c t o r ' s employment e l a s t i c i t y has been v e r y h i g h (0.95) and
I t s worli f o r c e expanded from 1,370 i n 1975 to 2,560 by 1985. Yet the
v a l u e of f u r n i t u r e imported by Cameroon, c h i e f l y from Europe, came to US$
11.6 m i l l i o n i n 1982.
V I ) Chemicals, p e t r o c h e m i c a l s and
plastics
T h i s s u b s e c t o r i s of e s p e c i a l i n t e r e s t because i t comprises
a
number of e n t e r p r i s e s which have been p r o f i t a b l e , c o m p e t i t i v e i n the
r e g i o n a l and UDEAC marlcets, yet imported a l l t h e i r c a p i t a l and over 95%
of t h e i r i n t e r m e d i a t e i n p u t s , and d i d not r e c e i v e b l a n k e t p r o t e c t i o n from
competing imports or o t h e r forms of s u b s i d y .
VI.a)
Chemicals
Cameroon's n a t u r a l endowment of i n o r g a n i c raw m a t e r i a l s f o r the
c h e m i c a l i n d u s t r y (1985 data) was l i m i t e d to the r e f r a c t o r y i n g r e d i e n t
d i s t h e n e , k a o l i n , l i m e s t o n e , pouzzolane, coarse s i l i c a t e sand not
s u i t a b l e f o r window g l a s s , rock and sea s a l t . The o r g a n i c r e s o u r c e base
f o r a chemical i n d u s t r y i s much broader, w i t h crude petroleum and good
n a t u r a l gas d e p o s i t s , as w e l l as abundant v e g e t a b l e o i l s and f a t s . Should
o i l r e f i n i n g c o n t i n u e apace, the d e f i c i t i n s u l p h a t e s c o u l d be narrowed,
but t h a t i n phosphates and c h l o r i d e s would s t i l l remain.
The volume of d e f i c i t chemical i m p o r t s has remained s t a b l e over the
l a s t 5 years and no new investment i n t h i s branch has taken p l a c e s i n c e
1982. I m p o r t - s u b s t i t u t i o n has made i t s e l f f e l t o n l y m c o n t a i n e r g l a s s
and has not a f f e c t e d the import r a t i o s of g l a s s tableware nor of rubber
t y r e s . Cameroon's dependence on i m p o r t s of f e r t i l i z e r s rose a f t e r the
c l o s u r e i n 1981 of the p a r a s t a t a l f a c t o r y -- SOCAME, whose b r i e f
e x i s t e n c e i s i n s t r u c t i v e i n many r e s p e c t s :
L i k e the i l l - f a t e d CELLUCAM, i t was one of the c e n t e r p i e c e s of the
1971-76 P l a n and began o p e r a t i n g i n 1975 w i t h a l a b o u r f o r c e of 500. I t
had been designed to produce 50,000 T of ammonium s u l p h a t e (which
a c i d i f i e s s o i l ) , 20,000 T of s i n g l e superphosphate ( f o r which t h e r e was
no demand), and 27,000 T of (expensive) complex f e r t i l i z e r s — a l l from
imported i n p u t s ! No market study i s known to have preceded the d e c i s i o n
t o go ahead w i t h the investment, on which debt s e r v i c i n g alone amounted
to CFAF 3 b i l l i o n p.a. U t i l i s a t i i o n of p l a n t c a p a c i t y never exceeded 50%
and the p a r a s t a t a l ' s d e f i c i t had to be f i n a n c e d out of p u b l i c funds u n t i l
I t was c l o s e d down i n 1981.
The f o l l o w i n g f a c t o r s had come i n t o p l a y :
- d e l a y m s i t e p r e p a r a t i o n exceeded the c o n t r a c t u a l p e r i o d i n the
o r i g i n a l c o s t i n g of the p l a n t , r e q u i r i n g c o n s i d e r a b l e upward
adjustments r
- i n the meantime, the v a l u e of s u p p l i e r c r e d i t s (denominated i n DM
and F l o r i n s ) a p p r e c i a t e d v i s - a - v i s the FCFA by about 50%;
- the p l a n t ' s t e c h n o l o g y was f a u l t y . The absence of a d r y e r i n the
steam g r a n u l a t i o n segment produced frequent c o n g e s t i o n , had to be
r e p l a c e d at h i g h e r c o s t — a l l to produce a d i l u t e d end product;
- The p l a n t ' s i n t e r m e d i a t e consumption ( p r i n c i p a l l y imported) came
to 92% of output v a l u e ;
- the cost of imported i n p u t s i n 1981 was g r e a t e r than the landed
p r i c e of competing f i n a l p r o d u c t s ;
- f o r some of the p r o d u c t s , even t h e i r v a r i a b l e c o s t s exceeded the
duty p a i d p r i c e s of competing i m p o r t s ;
- the common e x t e r n a l UDEAC t a r i f f had zero d u t i e s on a l l
f e r t i l i z e r i m p o r t s hence the p l a n t c o u l d not r e c e i v e any t a r i f f
p r o t e c t i o n nor e n j o y p r e f e r e n t i a l access to member c o u n t r i e s '
marliets. T h i s f a c t s a n c t i o n e d a d i r e c t s u b s i d y to the p l a n t out of
the p r e s i d e n t i a l e x t r a - b u d g e t a r y fund.
A f t e r the p l a n t ' s c l o s u r e , 65% of the CIF cost of f e r t i l i z e r s (and
of p e s t i c i d e s ) c o n t i n u e d to be s u b s i d i z e d out of t h i s fund. Thanks to i t ,
consumption of f e r t i l i z e r s i n Cameroon has expanded at more than 6% p.a.,
even though h a n d l i n g and t r a n s p o r t c o s t s add 100% to the CIF p r i c e of
these goods.
V1.b) M i n e r a l O i l R e f i n i n g
The o n l y p a r a s t a t a l i n the c h e m i c a l s s u b s e c t o r — SONARA, began
o p e r a t i n g m 1981 and worked f o r t h r e e y e a r s at below 50% c a p a c i t y b e f o r e
the government agreed to cede to i t Cameroon crude at a p r e f e r r e d p r i c e .
A f t e r two y e a r s , i t s output of f u e l o i l reduced the c o u n t r y ' s import
d e f i c i t of SITC 332 products by USS 132 m i l l i o n . In a d d i t i o n , the
q u a n t i t i e s of s u l p h a t e by-products have been l a r g e enough a l s o to h e l p
improve the c h e m i c a l s ' t r a d e b a l a n c e . Given the w o r l d petroleum s i t u a t i o n
and Cameroon's l i m i t e d known o i l r e s e r v e s , no c r a c k i n g u n i t has been
added to the r e f i n e r y f o r p r o d u c i n g h i g h e r v a l u e d i s t i l l a t e s such as
kerosene and d i e s e l o i l . Nor are any envisaged f o r the next f i v e y e a r s .
The n a t u r a l gas a s s o c i a t e d w i t h r e f i n i n g has been mostly f l a r e d . The
s u b s t a n t i a l proven r e s e r v e s of n o n - a s s o c i a t e d n a t u r a l gas have not begun
to be e x p l o i t e d f o r the manufacture of e i t h e r ammonia or methane.
In 1986 a bitumen p l a n t of 20,000 T c a p a c i t y was i n a u g u r a t e d . At
l e a s t one h a l f of i t s p o t e n t i a l output s h o u l d be a v a i l a b l e f o r e x p o r t ,
even w i t h a c o n t i n u e d 6% growth r a t e i n the domestic consumption of
asphalt.
Vi.c) Pharmaceuticals
and perfume e x t r a c t s
Domestic demand f o r medicines e t c . has been growing f a s t i n Cameroon
and t h e i r import v a l u e has doubled between 1977/8 and 1981, when i t
amounted t o over FCFA 10 b i l l i o n . But o n l y one ( p r i v a t e ) p h a r m a c e u t i c a l
f i r m has been e s t a b l i s h e d so f a r -- l i m i t e d to the manufacture of
m e d i c i n a l herb e x t r a c t s and p e r f u s i o n l i q u i d . ' T h i s s u c c e s s f u l f i r m ' s
export performance has been o u t s t a n d i n g , h a v i n g jumped from 61 T i n 1971
to 790 T i n 1983! M e d i c i n a l p l a n t s are p l e n t i f u l i n Cameroon and p r o v i d e
a good base f o r f u r t h e r e x p a n s i o n . A l s o s u c c e s s f u l has been the
manufacture, f o r both the l o c a l and r e g i o n a l markets, o f perfumery and
c o s m e t i c s by two p r i v a t e f i r m s (one e n t i r e l y foreign-owned). Over the
1982-85 p e r i o d the l e v e l of t h e i r e x p o r t s has averaged
around 1,800 T.
v 1. d) Soajps__ and _de t ^ r g e n t s
T h i s group of consumer goods, produced i n s e v e r a l modern f a c t o r i e s ,
was hampered i n e v o l v i n g out of i m p o r t - s u h s t i t u t i o n to c o m p e t i t i v e
e x p o r t i n g by the f r e q u e n t pie-emption o f ttie raw m a t e r i a l iriput by
domestic e x p o r t e r s of t h e i r c h i e f i n g r e d i e n t — p a l m o i l -- on the one
hand, and by the e s t a b l i s h m e n t of competing p l a n t s i n inost of the
n e i g h b o u r i n g c o u n t r i e s , on the o t h e r . The s u p p l y c o n s t r a i n t on soap
m a n u f a c t u r i n g caused the export quantum t o drop f r o m 6,520 T in 1982/3 t n
o n l y 1,942 T m 1984/5. Detergents do not even f i g u r e among CaiTieroon's 15
t o p - r a n k i n g e x p o r t s of i n d u s t r i a l goods.
vi.e)
Plastics
There were 22 d i f f e r e n t - s i z e d p r o c e s s o r s of p o l y m t r s i n Cameroon i n
1985/6, w i t h a combined c a p a c i t y of 32,000 T, of which o n l y 2/3 was being
e x p l o i t e d . P e r c a p i t a consumption of p l a s t i c s (2.6 kg p.a.) was about
o n e - t h i r d of that m near-by Gabon and i n K o r t h A f r i c a n c o u n t r i e s . The
p r i n c i p a l reason f o r t h i s l i e s i n the c o m p e t i t i o n of a U m i n i u m and wood
as b u i l d i n g m a t e r i a l s . At c u r r e n t UDEAC r a t e s of consumption, the l e v e l
of r e g i o n a l demand, even 15 y e a r s hence, would not j u s t i f y — on econor^ir
grounds — the p r o d u c t i o n of p o l y s t y r e n e or o t h e r base polymers.
The PVC e x t r u d i n g and molding o p e r a t i o n s i n Cameroon have been
f u n c t i o n i n g about 35% of t h e i r r a t e d c a p a c i t y . A major c o n t r i b u t i n g
^ S e v e r a l i n t e r e s t i n g c o u n t r y case s t u d i e s on the l i m i t e d
e x t e n t of i m p o r t - s u b s t i t u t i o n i n p h a r m a c e u t i c a l s i n d e v e l o p i n g
c o u n t r i e s have been p u b l i s h e d by UNCTAD i n c o o p e r a t i o n w i t h WHO
over the l a s t 10 y e a r s . They h i g h l i g h t the o l i g o p o l i s t i c
s t r u c t u r e of the w o r l d market f o r these p r o d u c t s as w e l l as the
r e l a t i v e l y h i g h c o s t of t h e i r p r i m a r y manufacture. Hence i n most
d e v e l o p i n g c o u n t r i e s to d a t e , the s u b s e c t o r ' s a c t i v i t i e s are
l i m i t e d to b l e n d i n g imported i n g r e d i e n t s , c o a t i n g , p a c k i n g and
packaging. The major e x c e p t i o n i s i n the p r e p a r a t i o n of f i n a l
p r o d u c t s u s i n g d o m e s t i c a l l y grown m e d i c i n a l h e r b s .
For purposes of comparison, the s i n g l e Saudi A r a b i a n Al
J u b a i l p e t r o c h e m i c a l complex produced 680,000 T of polymers
annually.
reason was t h e i r i n a b i l i t y to s a t i s f y the government's and donors'
t e n d e r i n g c o n d i t i o n t h a t the s u p p l y of the p r o d u c t s be coupled w i t h t h e i r
i n s t a l l a t i o n . M u l t i n a t i o n a l b i d d e r s were r e p o r t e d l y s u c c e s s f u l because
they reduced the p r i c e s of m a t e r i a l s w h i l e i n f l a t i n g the c o s t of the
l a t t e r . What i s p u z z l i n g i s why
domestic c o n t r a c t o r s f a i l e d to i n v e s t i n
broadening
t h e i r range of s e r v i c e s i n t h i s r e s p e c t . Labour p r o d u c t i v i t y
i n Cameroonian p l a s t i c s m a n u f a c t u r i n g i s about 2/3 of the European
level.
Although a l l of the i n p u t s of the f i r m s i n t h i s branch were
imported, s e v e r a l have a c h i e v e d p r o f i t a b l e o p e r a t i o n s and s t a b l e
f o o t h o l d s i n n e i g h b o u r i n g markets. These were c h a r a c t e r i s t i c a l l y
s m a l l , modern, well-managed u n i t s , a d a p t i n g t h e i r output to narrow or
s p e c i f i c segments of demand. I n the most s u c c e s s f u l f i r m the share of
e x p o r t e d output reached 50% of i t s o u t p u t . Another s u c c e s s f u l u n i t had
p o l y v a l e n t machinery a l l o w i n g i t s output to be c u s t o m i z e d .
The l o s s - m a k i n g producers had the common problem of not b e i n g p r i c e c o m p e t i t i v e w i t h cheaper, d u t y - p a i d a r t i c l e s from abroad and government's
u n w i l l i n g n e s s to g r a n t them a "buy l o c a l " p r i c e d i f f e r e n t i a l . The c o s t of
t h e i r commercial borrowing ( r a t e s of i n t e r e s t of up to 40%) was too
burdensome. A d m i n i s t r a t i v e a p p r o v a l of p r i c e adjustments t o r e f l e c t t h e i r
r i s i n g c o s t s was too t a r d y . The absence of r i g o u r o u s i n - p l a n t q u a l i t y
c o n t r o l was another commonly-shared s h o r t c o m i n g .
(Vi1) Hon-metallic minerals
The manufacture of cement i n Cameroon was c a r r i e d out by a j o i n t
venture i n which the o r i g i n a l I t a l i a n p a r t n e r d i s p o s e d of i t s shares to
the SNI i n 1981/2. P r o d u c t i o n i s based on imported c l i n k e r p l u s l o c a l
l i m e s t o n e and marble, and shared between one l a r g e , modern i n s t a l l a t i o n
i n Douala and a s m a l l p l a n t near the border w i t h Chad. Not o n l y has
import replacement been e f f i c i e n t , but the volume of e x p o r t s to Chad and
o t h e r neighbours has t r i p l e d between 1982/3 and 1984/5. S e v e r a l p l a n t
e x t e n s i o n s have taken p l a c e to keep up w i t h the growth of b u i l d i n g
c o n s t r u c t i o n . By 1984/5 the combined annual output of cement came t o
almost 1 m i l l i o n t o n s . The a c t i v i t y has been g e n e r a l l y p r o f i t a b l e and
downstream l i n k a g e s have i n c r e a s e d .
The e x p e r i e n c e of a l a r g e p a r a s t a t a l b r i c k and h o l l o w - t i l e f a c t o r y ,
CERICAM, stands out i n sharp c o n t r a s t . T e c h n i c a l and m a n a g e r i a l problems
have proved i n t r a c t a b l e . I t was b a i l e d out of bankruptcy i n 1982 w i t h a
FCFA 500 m i l l i o n government g r a n t and, a f t e r f u r t h e r l o s s e s , was c l o s e d
down f o r good.
A p r i v a t e f i r m m a n u f a c t u r i n g g l a s s t a b l e w a r e and ceramic t i l e s has
done w e l l by broadening i t s product mix. But i t s a c t i v i t i e s were not
r e f l e c t e d i n reduced l e v e l s of i m p o r t s d u r i n g the l a s t few y e a r s . L o c a l
b u i l d i n g m a t e r i a l s u p p l i e r s have o f t e n been edged out of l a r g e p u b l i c
t e n d e r s by f o r e i g n c o n t r a c t o r s who e n j o y ready access t o c r e d i t through
t h e i r mother companies and/or c l o s e t i e s w i t h f o r e i g n banks. Furthermore,
as the World Bank's June 1984 Memorandum p o i n t e d out (page 27), no
p r e s s u r e had been e x e r t e d by p u b l i c a u t h o r i t i e s on f o r e i g n c o n t r a c t o r s t o
a s s o c i a t e w i t h Cameroonian f i r m s , p a r t i c u l a r l y w i t h the SMEs.
A p r e s i d e n t i a l admonition had t o be d e l i v e r e d t o the p u b l i c s e c t o r
(May 1986) t o p l a c a t e c o m p l a i n t s from l o c a l c o n t r a c t o r s about i n o r d i n a t e
d e l a y s i n the s e t t l e m e n t of t h e i r c o n t r a c t u a l c l a i m s on the
a d m i n i s t r a t i o n , c a u s i n g them s e r i o u s cash f l o w problems. I n t h e f o l l o w i n g
month the p u b l i c a u t h o r i t i e s s e t t l e d FCFA 50 b i l l i o n ' s worth of
o u t s t a n d i n g b i l l s . They e x p l a i n e d the d e l a y s by the l a r g e number of
d e c i s i o n - t a l t e r s i n v o l v e d m p r o c e s s i n g c l a i m s — on average 15 t o 20 busy
officials.
( v i i i ) Base metals, f a b r i c a t e d metal products
and machinery
I n t e r n a l demand i n Cameroon f o r base metals and t h e i r f a b r i c a t e d
p r o d u c t s grew at a 10% r a t e , a p p r o x i m a t i n g that of GFCF and c o n s i d e r a b l y
h i g h e r than GDP growth d u r i n g the 1972-85 p e r i o d , t o t h e l e v e l of 125,000
T. T h i s y i e l d e d a per c a p i t a consumption of 18 leg p.a. of i n g o t
e q u i v a l e n t - - s l i g h t l y below the a l l - A f r i c a n average (20 k g ) .
There were four main reasons f o r t h i s r e l a t i v e l y low r a t i o f o r a
middle-income c o u n t r y . One was t h e absence of downstream manufacture of
heavy a g r i c u l t u r a l and i n d u s t r i a l machinery, t r a n s p o r t equipment, and of
d u r a b l e consumer goods u n t i l q u i t e r e c e n t l y . There was, s e c o n d l y , t h e
h i g h f i n a l p r i c e of base metal p r o d u c t s . As an example, t h e ex-warehouse
p r i c e s of base metals were on average 200% of t h e i r FOB p r i c e s , w h i l e
t h e i r r e t a i l p r i c e s were t h r e e times t h e i r CIF p r i c e s . T h i s r e s u l t e d from
d u t i e s and border taxes adding 50% t o the d e c l a r e d CIF p r i c e , w h o l e s a l e
and r e t a i l margins another 32-45%, t h e t u r n o v e r t a x about 10%, p l u s the
c o s t of i n l a n d t r a n s p o r t . The t h i r d reason was the widespread
a v a i l a b i l i t y of s u b s t i t u t e c o n s t r u c t i o n m a t e r i a l s such as hardwood and
aluminium and the absence of a s t e e l m i l l . F o u r t h , the a u t h o r i z e d c o s t p l u s d i s t r i b u t i o n margins encouraged t h e i m p o r t a t i o n of r e l a t i v e l y h i g h priced products.
The p r o c e s s i n g of imported i n g o t s and b i l l e t s gave r i s e t o the
f o l l o w i n g s t r u c t u r e of base metal i n t e r m e d i a t e s i n the e a r l y 1980s:
-
l o n g p r o d u c t s — 38%,
f l a t p r o d u c t s — 15%,
p i p i n g — 21%,
b u i l d i n g s t e e l , c o n t a i n e r s , e t c . -- 26%.
These covered 75% of domestic demand. Exports of these p r o d u c t s i n 1984
( f r e e of export t a x but l i m i t e d t o UDEAC c o u n t r i e s and Chad) c o n s t i t u t e d
a mere 8% of t o t a l o u t p u t . The r e s u l t i n g n e g a t i v e t r a d e balance amounted
to more than USS 100 m i l l i o n . I m p o r t - s u b s t i t u t i o n i n t h i s branch has not
spread beyond the manufacture of s t e e l sheets and s t r i p s , cement
r e i n f o r c i n g b a r s , welded p i p e s , n a i l s and b o l t s .
Three p a r a s t a t a l f i r m s operated as a group (SCDM) and accounted f o r
some 40% of t h e s u b s e c t o r ' s o u t p u t . The l a r g e s t — SOLADO — produced
r e i n f o r c i n g b a r s , worked t o f u l l c a p a c i t y thanks t o q u a n t i t a t i v e
r e s t r i c t i o n s on competing i m p o r t s , but whose h i g h p r o d u c t i o n c o s t s
p r e c l u d e d e x p o r t i n g . A modern, e f f i c i e n t l y - r u n p l a n t , TROPIC,
manufactured a wide spectrum of good q u a l i t y spare p a r t s and a g r i c u l t u r a l
hand t o o l s , but was o v e r - s i z e d even f o r the whole UDEAC market. A
foundry, COFREM, — the t h i r d p a r a s t a t a l — manufactured mechanical spare
p a r t s and f o r g e d implements.
Among p r i v a t e f i r m s , CAMSTEEL was the l a r g e s t u n i t , meeting 4/5 of
domestic r e q u i r e m e n t s of welded p i p e and z i n c t u b i n g and 100% of demand
f o r s t r i p s t e e l . Other f a b r i c a t o r s of metal i n t e r m e d i a t e s produced
s c a f f o l d i n g , b o i l e r s , c o n t a i n e r s , t r a i l e r s , b u i l d i n g s t e e l , wheelbarrows,
wagons and c h a s s i s , barges, and assembled equipment f o r o f f - s h o r e o i l
p l a t f o r m s and r i g s .
The manufacture i n Cameroon of machinery and consumer remains s t i l l
embryonic, c o v e r i n g the assembly of b i c y c l e s , mopeds and m o t o r b i k e s , the
housing of a i r c o n d i t i o n e r s , e l e c t r i c s t o v e s , ovens and r e f r i g e r a t o r s , as
w e l l as the manufacture of enamelled k i t c h e n - w a r e .
1X) Raw
and p r o c e s s e d aluminium, i n c l u d i n g
alloys
In c o n t r a s t to i r o n and s t e e l m a n u f a c t u r i n g , Cameroon has a
m e t a l l u r g i c a l base i n n o n - f e r r o u s metals — an alumina s m e l t i n g p l a n t
ALUCAH. I t manufactures aluminium i n g o t s from imported Guinean ore and i s
adjacent to a r o l l i n g m i l l . The p r i m a r y s m e l t e r , employing some 1,300
workers, has been working at near f u l l c a p a c i t y (82,000 T m 1984) and
e x p o r t i n g between 2/3 and 3/4 of i t s output — c h i e f l y to France and
Japan. Yet even though b e n e f i t t i n g from reduced e l e c t r i c i t y r a t e s and
being w e l l l o c a t e d f o r the ore d e l i v e r i e s , i t has made l o s s e s d u r i n g the
l a s t 4 f i n a n c i a l years because of the depressed w o r l d p r i c e f o r i t s
output'' and of the d o l l a r - d e n o m i n a t e d c o s t of the alumina i t purchased.
On a per c a p i t a b a s i s Cameroonian consumption of unprocessed aluminium i s
among the h i g h e s t i n the T h i r d World. However, the consumption of
processed aluminium p r o d u c t s has been r e l a t i v e l y low: 2.8 kg/head i n 1980
and 3.1 kg/head i n 1984, as i t i n v o l v e d a narrow range of items
( c o r r u g a t e d s h e e t s , k i t c h e n w a r e , w i r e and c a b l e , bars and t u b e s ) . Except
f o r t h i n f o i l , s p e c i a l i z e d c a b l e s and w i r e , import s u b s t i t u t i o n of
p r o c e s s e d aluminium goods has been very v i s i b l e i n t r a d e f i g u r e s . The
nominal t a r i f f p r o t e c t i o n r e c e i v e d by t h i s c a t e g o r y of domestic goods was
h i g h -- a v e r a g i n g 75% ad valorem.
The l e v e l of e x p o r t s of p r o c e s s e d aluminium p r o d u c t s has been
d r o p p i n g s i n c e the l a t e s e v e n t i e s as shown i n t a b l e 6 i n the f a c e of
s h a r p e n i n g c o m p e t i t i o n f o r market shares i n Cameroon's t r a d i t i o n a l
f o r e i g n o u t l e t s , and which UDEAC's taxe unique p r i v i l e g e c o u l d not
o f f s e t . " ^ Cameroonian e x p o r t e r s of these p r o d u c t s found themselves at a
" T h e average annual p r i c e of aluminium i n g o t s quoted on the
London M e t a l Exchange (cash b a s i s ) was as f o l l o w s :
£ s t e r l i n g / metric ton
1975
1980
1984
1985
1986
430.6
756.2
933.1
814.2
784.2
Source: UNCTAD. Monthly Commodity P r i c e B u l l e t i n ,
various.
'2 I n d u s t r i e s accorded UDEAC " r e g i o n a l " s t a t u s a r e not
quota-bound. The taxe unique on output i s l e v i e d at source i n
l i e u of a l l charges on i m p o r t e d i n p u t s , of a l l i n d i r e c t t a x e s on
i n t e r m e d i a t e consumption, and of a l l e x c i s e t a x e s on the f i n i s h e d
d i s a d v a n t a g e because of the absence of e x p o r t f i n a n c i n g and of i n s u r a n c e
a g a i n s t f o r e i g n exchange r i s k s .
Table 6
E x p o r t s of raw and p r o c e s s e d aluminium p r o d u c t s , 1977 (tons)
Product/market
Aluminium i n g o t s ( a l l )
of which t o :
France
Japan
1977
1980
1982
1983
1984
20,244
9,708
59,014
52,515
60,998
9,625
-
33,088
19,765
36,404
11,129
10,373
8,559
9,208
5,264
1,336
1,024
1,079
2,536
672
33
2,163
2,316
1,031
3,420
68
32
83
13
92
19
Sheets,strips,disks
11,240
of which t o :
I v o r y Coast 5,406
Cen.Afr.Rep. . 1,087
P.R. Congo
161
Gabon
Household a r t i c l e s
Other alum, goods
1984
240
35
7,778
-•
37
13
Source: Note A n n u e l l e de S t a t i s t i g u e , 1978-1983 and UNIDO d a t a .
The p r i m a r y s m e l t e r and r o l l i n g m i l l ALUCAM undertook a FCFA 7
b i l l i o n investment at the end of the s e v e n t i e s , the s e r v i c i n g of which
became ever more burdensome as i n t e r e s t r a t e s r o s e . By 1981/2 i t owed
FCFA 4 b i l l i o n i n bank o v e r d r a f t s and ended the y e a r w i t h a net FCFA 6.4
b i l l i o n l o s s ! I n the y e a r s t h a t f o l l o w e d , r i s i n g c o s t s of p r o d u c t i o n and
stagnant demand at home and abroad p r e v e n t e d the f i r m from i m p r o v i n g i t s
performance.
The p r o c e s s i n g m i l l -- SOCATRAL— l i k e w i s e was not a b l e t o o p e r a t e
p r o f i t a b l y d u r i n g the e a r l y e i g h t i e s , p r i n c i p a l l y because of i n a d e q u a t e l y
t i g h t l i c e n s i n g of competing i m p o r t s as w e l l as i n e f f i c i e n t customs
c o n t r o l s over the nature of goods a c t u a l l y e n t e r i n g under l i c e n c e .
As s e v e r a l SNI Annual Reports have p o i n t e d out, much remained to be
done by aluminium-based manufacturers t o t r i m overheads and t h e i r
v a r i a b l e c o s t s , which tended t o r i s e s t e a d i l y even a f t e r c u t s i n t h e i r
labour f o r c e .
p r o d u c t . The p r i v i l e g e has no time l i m i t a t i o n . The p r e f e r e n t i a l
margin the taxe unique c o n f e r s to the " r e g i o n a l " i n d u s t r i e s
v a r i e s among UDEAC member s t a t e s .
3. THE FOOD PROCESSING INDUSTRIES
Cameroon's d i v e r s i f i e d a g r i c u l t u r a l p r o d u c t i o n p r o v i d e s food
p r o c e s s i n g a c t i v i t i e s w i t h a wide and r e l a t i v e l y stablf> base, a l t h o u g h
p e r i o d s of drought (such as i n 1982/3 and a g a i n i n 1984/5) have caused
c a p a c i t y u t i l i s a t i o n i n food i n d u s t r i e s t o f a l l s i g n i f i c a n t l y . V i r t u a l
food s e l f - s u f f i c i e n c y has been reached i n recent y e a r s , but the c o u n t r y ' s
h i g h p o p u l a t i o n growth
(2.8%) IS bound t o make i t s maintenance p r o g r e s s i v e l y more d i f f i c u l t .
When lumped w i t h beverages and tobacco, the food s u b s e c t o r i s t h e
l a r g e s t m a n u f a c t u r i n g a c t i v i t y and, i n 1975/6, accounted f o r almost oneh a l f of MVS and one-quarter of t o t a l modern s e c t o r employment.
Subsequently, because of raw m a t e r i a l s s u p p l y c o n s t r a i n t s , the food
p r o c e s s i n g branch's s t r o n g growth d e c e l e r a t e d , but i t s wor)cforce i n 1985
s t i l l made up about 8% of m a n u f a c t u r i n g employment and i t s value added
more than 11% of MVA. There was o n l y a s m a l l increment i n employment, and
a l a r g e r i s e i n c a p i t a l a s s e t s per employee.
During t h e e a r l y p e r i o d 1969 - 1975, most of the i n c r e a s e i n
processed food output was absorbed by domestic consumption, not e x p o r t s .
But i n the f o l l o w i n g y e a r s , food p r o d u c t s ' share i n t o t a l e x p o r t s r o s e t o
almost t h r e e - q u a r t e r s i n 1978, t o drop t o 33% i n 1982, a g a i n because of
s u p p l y - s i d e b o t t l e n e c l i s . The 1984/5 s t r u c t u r e of d o m e s t i c a l l y - p r o d u c e d
raw m a t e r i a l s f o r the l o c a l food i n d u s t r i e s and f o r e x p o r t are g i v e n i n
t a b l e 7, a l o n g w i t h e s t i m a t e d d e f i c i t r a t i o s (domestic output t o apparent
consumption) .
Although the t a r g e t of food s e l f - s u f f i c i e n c y may be w i t h i n r e a c h ,
the f i g u r e s i n t a b l e 7 p o i n t t o t h e r e l a t i v e p a u c i t y of food p r o c e s s i n g
i n Cameroon. S e v e r a l such a c t i v i t i e s have f i g u r e d among p r i o r i t y
o b j e c t i v e s m s u c c e s s i v e 5-year p l a n s w i t h o u t the necessary investment
being m o b i l i z e d . The absence of secondary p r o c e s s i n g of f i s h and
c r u s t a c e a n s i s p a r t i c u l a r l y r e g r e t t a b l e i n view of t h e v e r y d e r i v a t i o n of
the c o u n t r y ' s name (Portuguese: camaroes) and the remunerative f i s h i n g
o p e r a t i o n s of s e v e r a l c o a s t a l S t a t e s i n s u r r o u n d i n g waters. The t o t a l
number of f i s h i n g c r a f t has f a l l e n i n r e c e n t y e a r s , and the volume of
maritime i n d u s t r i a l f i s h e r y output has shrunlt by 2/3! Although shrimp
output has improved over the l a s t 4 y e a r s , import dependence i n a l l f i s h
p r o d u c t s has become more pronounced. The tonnage of imported
frozen f i s h
p r o d u c t s rose from 17,000 t o over 20,000 T between 1975/6 and 1982/3. A
m u l t i - n a t i o n a l agreement t o r e g u l a t e f i s h i n g r i g h t s i n o f f - s h o r e waters
i s u r g e n t l y needed m view of the inadequacy of the i n - s h o r e f i s h i n g
potential.
P r o d u c t i o n (10^ tons i n 1984/5) & 1983 D e f i c i t s
of Raw Food P r o d u c t s
Product
Quantity
CEREALS
207
Millet/sorghum
410
Maize
111
Paddy
STARCHY FOODS
188
Macabo-taro
1,375
Cassava
96
Yams
50
Sweet p o t a t o e s
42
I r i s h potatoes
1,001
Plantain
LEGUMES
99
Groundnuts
70
Beans & peas
13
Sesame seed
56
Courge seeds
FRUITS 6. VEGETABLES
703
Bananas
32
Pineapple
23
Other f r u i t
185
Vegetables
VEGETABLE OILS
82
Palm o i l
10
Cotton-seed o i l
INDUSTRIAL CROPS
71
Sugar cane
120
Cocoa
C o f f e e Arab.4 Rob. 139
2.3
Tea
ANIMAL PRODUCTS
91
C a t t l e (meat e q u i v
Small ruminants
16
Pork
19
Poultry
11
(TOTAL)
Game e t c
M i l k i eggs
F i s h & shrimps
Deficit
Jiemar k s
41.6%
24.0%
subsistence production
7% i n modern s e c t o r
processing & importation
64.5%
no p r o c e s s i n g a c t i v i t y
s u r p l u s (>700.000 T) planned p r o c .
no p r o c e s s i n g
62.0%
"—"
64.0%
—"
43.;
crushing for o i l
one canning plant
surplus
surplus
44.6%
51.0%
surplus
?)
(137)
26
15
115
(%)
factory
5 mills & plantations
3 crushers 4 3 r e f i n e r y
surplus
6.3.0% (1984)
SOSUCAM r e f i n e r y
surplus
p r o c e s s i n g up t o choc,
surplus
processing started
3 C.D.C. f a c t o r i e s
;
1
i> 340,000 T)
s m a l l 3uiee
26.0%
2 a b a t t o i r s , 1 tannery
p r o c e s s i n g planned
(95.0%)
(1984/5 i m p o r t s 8,000 T!
)
1
p r o c e s s i n g by 2 p l a n t s
f r e e z i n g only; + imports
Note: .. = d a t a u n a v a i l a b l e
Source, S i x t h P l a n op. c i t . and UNIDO d a t a .
Another major gap i s i n cassava p r o c e s s i n g and i n i n d u s t r i a l - s c a l e
f a b r i c a t i o n of f r u i t - b a s e d p r o d u c t s . Furthermore, t h e e x p o r t s of cocoabased food p r o d u c t s have wavered between 12,000 and 24,000 T d u r i n g the
l a s t 13 years w i t h o u t any apparent growth t r e n d , w h i l e the quantum of raw
cocoa bean e x p o r t s r o u g h l y doubled between 1977 and 1984. There i s a l s o
an obvious I/S p o t e n t i a l i n the f a b r i c a t i o n of animal fodder from the
many by-products of e x i s t i n g p r i m a r y p r o c e s s i n g a c t i v i t i e s .
Import s u b s t i t u t i o n m t h e meat, d a i r y and f i s h s e c t o r has been
d i s a p p o i n t i n g . The F i f t h P l a n (1980-85) had t a r g e t e d a r e d u c t i o n of
import dependence i n terms of per c a p i t a meat e q u i v a l e n t s . The o u t - t u r n ,
however, showed a r i s e from 2.7 t o 4.4 k g / i n h a b i t . / y e a r . By 1984/5
i m p o r t s made up 14% of apparent consumption of a l l animal food p r o d u c t s
(see t a b l e 8) .
Table 8
Consumption o f Animal P r o d u c t s by O r i g i n , 1984/5
(Kg/inhab/year of meat e q u i v a l e n t )
Year
N a t i o n a l output
Cattle
1984/5
9.3
Import
Goats
Pigs
Poultry
1.6
1.9
1.2
Fish
9.0
Apparent
Consum.
Other
4.2
4.5
31.7
Source: S i x t h P l a n , o p . c i t . p.86.
P r o d u c t i o n growth i n food-based i n d u s t r i e s (ISIC 311) a c c e l e r a t e d at
the b e g i n n i n g o f t h e present decade thanks t o new c a p a c i t i e s i n g r a i n and
v e g e t a b l e p r o c e s s i n g , as w e l l as i n " o t h e r " food f a b r i c a t i o n as shown m
t a b l e 9.
During t h e s e v e n t i e s , t h e annual growth r a t e of MVA i n food
p r o c e s s i n g came t o 6% and t h a t of employment t o under 2% . I n the f i r s t
f o u r years of t h e present decade MVA i n food manufacturing j u s t about
doubled i t s p a s t r a t e of growth, w h i l e the l e v e l of employment dropped i n
Table 9
Output i n d e x of food p r o c e s s i n g i n d u s t r i e s
Process. A c t i v i t y
Grains t vegetables
I n d u s t r i a l food crops
Bakeries i confectionery
Other foods
1976/7
142
105
82
188
Source: I b i d , pp 128-9.
1980/1
168
267
121
650
(1974/5 = 100)
1983/4
240
197
150
] ,723
1984/5
288
229
.. = not a v a i l a b l e .
a b s o l u t e terms. T h i s a c c e l e r a t i o n i n output growth r e f l e c t e d p a r t i c u l a r l y
good r e t u r n s on c a p i t a l . The newly c r e a t e d i n d u s t r i e s p r o c e s s e d agrop a s t o r a l p r o d u c t s as w e l l as f r u i t — p r o d u c i n g some y e a s t and a l c o h o l ,
c e r e a l foods and canned p i n e a p p l e s . Product d i v e r s i f i c a t i o n and reduced
import-dependence a r e r e f l e c t e d i n t h e drop of " o t h e r " foods imports
between 1982 and 1985 from 4,103 T t o 2,604 T.
T h i s development stands i n sharp c o n t r a s t w i t h imports of r e f i n e d
sugar which, n o t w i t h s t a n d i n g t h e e x i s t e n c e i n Cameroon of 3 r e f i n e r i e s ,
s k y - r o c k e t e d i n 1984/5 t o 14,487 T, but much of which was r e - e x p o r t e d t o
UDEAC and other n e i g h b o u r s .
The
t r a d i t i o n a l l y - p r o d u c e d f o o d s t u f f s c o n t i n u e d t o be plagued by:
- inadequate t r a n s p o r t and c o o l s t o r a g e f a c i l i t i e s , and by the
i r r e g u l a r s u p p l i e s of domestic raw m a t e r i a l s t o i n d u s t r i e s
and t o
marketing c e n t r e s ;
- the absence of i n d u s t r i a l - s c a l e primary p r o d u c i n g u n i t s (except
f o r palm o i l , sugar and wheat);
- an u n s t r u c t u r e d i n t e r n a l marketing network, g i v i n g r i s e t o severe
p r i c e d i s t o r t i o n s and p e r i o d s of g l u t and s c a r c i t y w i t h
large,
u n c o n t r o l l e d s h i f t s of r e g i o n a l s u r p l u s e s t r i g g e r e d by u n c o o r d i n a t e d
cross-border p r i c e s ;
- the o f t - m e n t i o n e d d i f f e r e n c e s between r e a l c o s t s and the
a u t h o r i z e d market p r i c e s of processed goods:
- i n e f f i c i e n t p r o t e c t i o n of domestic i n d u s t r i e s ;
- poor c o n t r o l over t h e q u a l i t y of marketed p r o d u c t s ;
- absence or s c a r c i t y of v o c a t i o n a l t r a i n i n g e.g. i n b a k i n g ,
b u t c h e r i n g e t c . , g i v i n g r i s e i n t e r a l i a to t h e misuse of
machinery;
- t h e s m a l l s i z e of the domestic market i n terms of e f f e c t i v e
p u r c h a s i n g power, and the r e l a t i v e l y h i g h u n i t c o s t of
t r a n s p o r t i n g f o o d s t u f f s t o n e i g h b o u r i n g markets;
- no complementarity i n food i m p o r t - s u b s t i t u t i o n between UDEAC
member s t a t e s .
A noteworthy f a c t i s the f a r lower use of f e r t i l i z e r s i n food-crops
than i n i n d u s t r i a l ones. The two r a t i o s i n 1984 were at about 1 : 6
Kg/farm/year!
P r o d u c t i o n of i n d u s t r i a l c r o p s , as w e l l as of processed f o o d s , —
whether o n l y d o m e s t i c a l l y - o r i e n t e d o r a l s o e x p o r t e d — i s t o a g r e a t extent
c o n t r o l l e d by the SNI through m i n o r i t y share h o l d i n g s . C o n s i d e r i n g o n l y
the secondary food i n d u s t r i e s , the f o l l o w i n g p i c t u r e emerges of t h e
p a r a s t a t a l a c t i v i t i e s d u r i n g two r e c e n t y e a r s - - 1981/2 ( i n b r a c k e t s ) and
1984/5:
- SIC-CACAOS and CHOCOCAM have s t a r t e d t o t u r n i n p r o f i t s . They
employed over 500 workers i n 1984/5 (800 t h r e e years e a r l i e r ) . T h e i r
combined t u r n o v e r was FCFA 17.4 b i l l i o n (11.4bn) and t h e i r v a l u e
added came t o FCFA 3.8 b i l l i o n (2.0bn) e q u a l , i n 1984/5, t o t h e i r
t o t a l medium and l o n g term debt. That same year f i s c a l payments'made '
up 100% of v a l u e added so t h a t t h e o t h e r c o n s t i t u e n t s o f VA had t o
come out of c a r r i e d - o v e r p r o v i s i o n s and p r o f i t s . I n 1981/2 bank
charges added up t o t w o - t h i r d s of v a l u e added. E x i s t i n g p r i c e
c o n t r o l s prevented t h e f i r m s from p a s s i n g the a d d i t i o n a l c o s t s onto
domestic consumers. Cashflow i n 1984/5 was p o s i t i v e at about 10% of
t u r n o v e r ( o n l y 5% i n 1981/2). Cost and q u a l i t y c o n t r o l s have been
t h e i r A c h i l l e s ' h e e l i n recent y e a r s .
- SCM comprised f l o u r m i l l s and has r e c e n t l y been making l o s s e s ,
p r i m a r i l y because of t i g h t l y f i x e d bread p r i c e s ' ' , on the one hand
and unwarranted i m p o r t s of EEC ( s u b s i d i z e d ) f l o u r , on the o t h e r
hand. T h u s , i n 1981/2 imports covered 3/4 of n a t i o n a l consumption,
l e a v i n g the f l o u r m i l l s w i t h demand r e q u i r i n g the use of o n l y oneh a l f of t h e i r i n s t a l l e d c a p a c i t y . C a p a c i t y u t i l i z a t i o n i n 1984/5 was
but l i t t l e h i g h e r (65%) and i n 1985/6 f l o u r i m p o r t s came to 122,000
T, a l l o w i n g o n l y 45% of the newly-extended domestic c a p a c i t y to be
e x p l o i t e d . The m i l l s c a r r i e d out sharp c u t s m t h e i r p e r s o n n e l i n
the l a s t f i v e y e a r s , r a i s i n g t h e i r c a p i t a l i n t e n s i t y and VS per
employee. Working c a p i t a l has been v e r y inadequate throughout. The
r a t i o of VA to t u r n o v e r was 15% i n 1981/2 and o n l y 10% f o u r years
l a t e r . The l e v e l of medium and long-term debt came to 8% of t u r n o v e r
i n 1984/5, h a v i n g been c l o s e t o 20% i n 1981/2.
CAMLAIT o f f e r s a not u n t y p i c a l example of the s t r u c t u r e and
o p e r a t i o n of a p r i v a t e , p r o f i t a b l e , food p r o c e s s i n g SHE,
e n j o y i n g the
a t t e n d a n t f i s c a l p r i v i l e g e s , but not h a v i n g easy access t o bank c r e d i t .
The company's output covered a f u l l range of d a i r y p r o d u c t s and m i l k based d e s s e r t s . I t s v a l u e added c o e f f i c i e n t m 1985/6 was 28.5% of which
s a l a r i e s added up to 42%, b e f o r e - t a x p r o f i t s came to o n e - f i f t h , taxes t o
merely 3%, bank charges to 11% and a m o r t i s a t i o n to one q u a r t e r of
t u r n o v e r . The t a x r a t e on p r o f i t s t h a t year was j u s t over 50%. Although
I t s s a l e s were l i m i t e d to the domestic market, l e s s than o n e - t w e n t i e t h of
i t s i n t e r m e d i a t e r e q u i r e m e n t s were d i r e c t i m p o r t s , p o i n t i n g to v e r y
s u b s t a n t i a l l i n k a g e s w i t h o t h e r domestic a c t i v i t i e s . T h i s t o p i c i s
c o n s i d e r e d a c r o s s a l l manufacturing s u b s e c t o r s i n the next
section.
'3 With 1975/6 = 100, the p r i c e index f o r f o o d s t u f f s i n
1983/4, as e s t i m a t e d by GICAM, s t o o d at 250, whereas t h a t f o r
bread came to o n l y 164.
4. LINKAGES AND
a) I n t e r - s e c t o r a l
EFFICIENCY
linkages
The data on which the f o l l o w i n g d i s c u s s i o n of l i n k a g e s f o r Cameroon
I S based do not permit a comprehensive and d e t a i l e d t r e a t m e n t . The o n l y
attempt at p u t t i n g t o g e t h e r an i n p u t / o u t p u t t a b l e r e s u l t e d i n an uno f f i c i a l document of the M i n i s t r y of P l a n n i n g fot which no t e c h n i c a l
d e s c r i p t i o n s c o u l d be l o c a t e d by the a u t h o r . The t a b l e c o v e r s 8
p r o d u c t i v e s e c t o r s , p l u s c o n s t r u c t i o n , commercial and non-commercial
s e r v i c e s . As w i t h many other SSA c o u n t r i e s ' I,'0 e x e r c i s e s , i n t e r m e d i a t t
consumption i s not d i f f e r e n t i a t e d at the s e c t o r a l l e v e l between imported
and d o m e s t i c a l l y produced goods and s e r v i c e s as few f i r m s make such n
d i s t i n c t i o n i n t h e i r own accounts. The v a l u e s i n the t a b l e a r t at f a c t o r
cost.
Data on i n t e r m e d i a t e consumption at a d i s a g g r e g a t e d l e v e l f o r a
sample of 18 m a n u f a c t u r i n g f i r m s were a l s o made a v a i l a b l e to i h e author
i n the course of i n t e r v i e w s . Although an i n d u s t r i a l census had been
c a r r i e d out i n Cameroon i n 1985/5, the raw data had not betn processed or
checked by May 1987 for l a c k of r e s o u r c e s w i t h m the D i r e c t o r a t e of
S t a t i s t i c s and N a t i o n a l Accounts.
The I/O t a b l e f o r 1979/80 shows t h a t , f o r the Cameroonian economy
as a whole, o n l y o n e - q u a r t e r of i n t e r m e d i a t e consumption was accounted
f o r by direc_t i m p o r t s of goods and s e r v i c e s -ind the v a l u e added
c o e f f i c i e n t stood at about 2/3 of the v a l u e of o u t p u t . The s t r u c t u r e of
i n t e r m e d i a t e consumption, a c c o r d i n g to the s e c t o r a l breakdown used f o r
the above-mentioned I/O e x e r c i s e , i s set out i n t a b l e 10.
Given i t s high l e v e l of a g g r e g a t i o n , there i s l i t t l > . - m t a b l e 10
that d i s t i n g u i s h e s the Cameroonian economy from the t y p i c a l A f r i c a n
middle-income case.
In 1979/80 the share of imported i n p u t s was the lowest m the food
p r o c e s s i n g s e c t o r , w i t h over 40% of a l l i n p u t s coming from p r i m a r y
a g r i c u l t u r e . The b u l k of c a p i t a l and i n t e r m e d i a t e i n p u t s was a c q u i r e d
through the commercial network, whose share of d e l i v e r i e s was about the
same as those of ceriient and metal manufactures, as w e l l as of
construction.
Over o n e - h a l f of consumer goods s u p p l i e s came through d i s t r i b u t i o n
s e r v i c e s , about 2/3 of whose i n t e r m e d i a t e purchases were imported goods
and s e r v i c e s . D i r e c t procurement of i n t e r m e d i a t e goods came to about 17%
of a l l consumer goods i n p u t s and that of i n t r a - s e c t o r a l purchases -around 11%.
The i n t e r m e d i a t e goods s e c t o r a c q u i r e d as many d i r e c t i n p u t s from
w i t h i n the s e c t o r as from the l o c a l t r a d e r s (32%). These, on average,
purchased 36% of t h e i r t o t a l requirements from abroad. The balance of
i n p u t s needed by the i n t e r m e d i a t e goods s e c t o r (around 22%) was e v e n l y
spread over cement and m e t a l s , c a p i t a l goods, and c o n s t r u c t i o n .
S t r u c t u r e of I n t e r m e d i a t e
Consumption i n I n d u s t r y ,
( per cent of output
SECTORS
1
1979/80
value)
Manufacturing
3
2
subsectors
4
5
:
6
Primary a g r i c u l t u r e
41..7
2..5
4 .0
I n d u s t r y , of which:
1 Food p r o c e s s i n g
2 Consumer goods manuf.
3 Intermed. goods manu.
4 Cement & metal f a b r i .
5 C a p i t a l goods S: equip
4,.5
0..0
5..8
16. .5
0..1
2..2
10..6
16.,7
9..9
2..5
0 .6
0 .6
33 .2
7..6
7..5
30 .9
45..0
3..5
6
14. .8
3..4
7..0
0 .0
Services
(commercial)*
"—"
(non-coramercial)
15. .1
0..1
51..5
0..1
31 .9
1 .3
19 .6
0 .1
TOTAL INTERMED. CONSUM.
of which
domestic i n p u t s
100
100
100
100
100
100
62
39
39
28
7
52
Construction
5..7 :: 29 .1
40. .7 : 35..6
18. .2 : 5..2
0..0
: 2..7
35..1 :; 26..6
0..0 :; 0 .1
Note: * I n c l u d i n g t r a n s p o r t and communications.
Source: Author's c a l c u l a t i o n s based on Cameroon's I/O
table.
As c o u l d be expected, n e i t h e r of the remaining t h r e e s e c t o r s
made d i r e c t purchases of p r i m a r y a g r i c u l t u r a l p r o d u c t s , p r o c e s s e d foods
or of consumer goods. The bulk (45%) of the i n t e r m e d i a t e needs of the
cement and metals f a b r i c a t i o n s e c t o r was met by i n t r a - s e c t o r a l purchases,
f o l l o w e d by 31% of i n p u t s from d i r e c t d e l i v e r i e s by the c a p i t a l goods and
equipment m a n u f a c t u r i n g s e c t o r . Only o n e - f i f t h of i t s t o t a l i n t e r m e d i a t e
consumption was s e r v i c e d by l o c a l t r a d e r s , making i t almost as importindependent as food p r o c e s s i n g .
The c a p i t a l goods and eguipment s e c t o r ' s i n t e r m e d i a t e consumption
s t r u c t u r e showed t h a t 2/3 of the i n p u t s came from o n l y t h r e e p r o d u c i n g
s e c t o r s . J u s t as the f o r e g o i n g s e c t o r , i t c a r r i e d out almost a l l of i t s
c o n s t r u c t i o n work w i t h i t s own means.
These f i n d i n g s suggest t h a t the t h r e e a c t i v i t i e s w i t h the g r e a t e s t
d i r e c t m u l t i p l i e r e f f e c t s on the Cameroonian economy i n 1979/80 were i n
food p r o c e s s i n g , cement and metals m a n u f a c t u r i n g , and c o n s t r u c t i o n .
The 18 f i r m sample data f o r 1985/6 on d i r e c t procurement of
i n t e r m e d i a t e i n p u t s c o n f i r m the view t h a t resource-based m a n u f a c t u r i n g
a c t i v i t i e s are s t r a t e g i c a l l y the most important f o r advancing
i n d u s t r i a l i z a t i o n i n c o u n t r i e s w i t h endowments s i m i l a r to those of
Cameroon. The
sample e n t e r p r i s e s are ranked i n t a b l e 11 a c c o r d i n g to the
i n t e n s i t y of d i r e c t domestic procurement of i n t e r m e d i a t e i n d u s t r i a l
i n p u t s , i n c l u d i n g e l e c t r i c i t y and water. Because the output of the l o c a l
r e f i n e r y does not extend t o f u e l and l u b r i c a n t s , domestic purchases of
these Items a r e t r e a t e d as d i r e c t i m p o r t s .
The f o l l o w i n g are the s a l i e n t f e a t u r e s of the sample f i r m s '
procurement p r o f i l e s :
- f o r d a i r y p r o d u c t s {ISIC 311/2) i n t e r m e d i a t e i n p u t s were almost
e n t i r e l y (93.6%) of domestic o r i g i n , w i t h m i l k , sugar and p l a s t i c
c o n t a i n e r s a c c o u n t i n g f o r 70% of the t o t a l , f o l l o w e d by l o c a l l y produced
b o t t l e s and aluminium s t r i p s . The f i r m ' s o p e r a t i o n s were p r o f i t a b l e .
Added v a l u e came t o 28.5% of s a l e s .
- Two t e x t i l e - b a s e d , household goods manufacturers (ISIC 321) had
d i s t i n c t l y d i f f e r e n t procurement p a t t e r n s . For b l a n k e t s and bed l i n e n ,
almost 90% of i n p u t s were imported, of which 60% were yarn and sewing
s u p p l i e s . Another 36% was i n imported c l o t h . These items a r e p r o b a b l y
good c a n d i d a t e s f o r e a r l y i m p o r t - s u b s t i t u t i o n . The l o c a l purchases were
c o n c e n t r a t e d on packaging m a t e r i a l ( 3 3 % ) , t h r e a d and y a r n (19%) sewing
a c c e s s o r i e s (12%), w i t h the b a l a n c e of i n p u t s u n d e f i n e d . Only 3.6% of
output was e x p o r t e d and s o l e l y t o UDEAC markets. The manufacture of
m a t t r e s s e s and canvas c o v e r i n g , i n c o n t r a s t , f i l l e d 95% of i t s input
r e q u i r e m e n t s from domestic s u p p l i e s : about o n e - h a l f from the t e x t i l e s
s u b s e c t o r , o n e - f i f t h Irom the p l a s t i c s one, and o n e - t e n t h from l o c a l
metal f a b r i c a t o r s . The f i n a l q u a r t e r comprised u n i d e n t i f i e d l o c a l goods.
One-quarter of t o t a l s a l e s were m UDEAC c o u n t r i e s .
- A l l i n t e r m e d i a t e i n p u t s of the o n l y l a r g e furjii''ur_e manufacturer
(ISIC 332) i n the sample, except f o r f u e l s and l u b r i c a n t s
were
d o m e s t i c a l l y produced. Raw timber made up over 40% of the t o t a l , w h i l e
the o t h e r i n p u t s were spread over some 10 s u b s e c t o r s , w i t h h e a v i e r
purchases of p a i n t , s y n t h e t i c foam and items produced by o t h e r s m the
woodworking s u b s e c t o r . Hence the m u l t i p l i e r e f f e c t s of wooden f u r n i t u i o making i n Cameroon a r e very c o n s i d e r a b l e , w i t h v a l u e added coming t o 33%
of s a l e s . The f i r m had no e x p o r t s i n 1985/6 and i t s p r e - t a x p t - j f i t vas
small.
- Upstream l i n k a g e s of one sampled f i r m m a n u f a c t u r i n g s o a p s j _ o i l s ^
and d e t e r g e n t s (ISIC 352) were n e i t h e r s t r o n g nor v a r i e d , a l t h o u g h i t s
by-products were s o l d as c a t t l e cake t o domestic animal-husbandry. The
e n t e r p r i s e was r e s o u r c e - b a s e d — palm o i l and k e r n e l s making up about
t h r e e - q u a r t e r s of a l l domestic i n p u t s . Yet more than o n e - h a l f of t o t j l
i n p u t s were imported, w i t h h i g h shares o c c u p i e d by animal f a t s (43.4%),
c h e m i c a l s r e q u i r e d f o r soap-making (43.2%) and packaging m a t e r i a l s
( 9 . 0 % ) . T h i s r e l a t i v e l y h i g h import-dependency
p o i n t s t o o t h e r I/S
o p p o r t u n i t i e s , at l e a s t i n the l a s t - m e n t i o n e d p r o d u c t s , s m a l l amount-i o f
which were a l r e a d y b e i n g purchased l o c a l l y by the f i r m (about 10% of
t o t a l domestic i n p u t s ) . Almost o n e - f i f t h of the f i r m ' s output m 1985/6
was d i s p o s e d of i n UDEAC and o t h e r n e i g h b o u r i n g markets.
I n t e n s i t y of d i r e c t domestic i n p u t procurement, 1985/6 i n
(per
ISIC
Products
" —
372
381
383
384
390
Mam Domestic
Inputs
Domestic
i n p u t share
Export
share
28
miIk,sugar,piastics
94
nil
11
98
43
37
31
11
22
19
92
30
85
98
23
2
nil
6
nil
1
11
35
Batteries
E l e c t r . assembly
Transp.equipment
Household goods
22
18
29
61
packaging m a t e r l , y a r n , t h r e a d
timber,paint,synth.sponge
palm o i l , k e r n e l s , p a c k i n g mat.
timber,proc.wood,packing mat.
l a t e x , v e g e t . o i l , cartons
chemicals,tools,apparel etc
spare p a r t s , c h e m i c a l s e t c
sand,clay,spares,apparel
c e m e n t , s a n d , g r a v e l , s t e e l bars
p a c k i n g mat.puzzolane,spares
alum.disks & sheets, packing
alum, s h e e t , c h e m i c a l s , p a c k i n g
i r o n i s t e e l semi's, p a i n t .
spare p a r t s
paper & c a r t o n s , c h e m i c a l s
nil
i r o n & s t e e l semi's,hardware
p a c k i n g mat. enamel, metals
4
ml
19
Glassware
Reinf.Concrete
Cement
Alum, houseware
Alum.processing
Agric.handtools
29
33
36
40
42
44
42
43
19
27
34
14
32
13
22
0
98
11
6
69
5
nil
3
311/2 D a i r y produce
321
B l a n k e t s , bed
linen
332
Wood f u r n i t u r e
352
Soap,detergent
352? Matches
355
Tyres
356 P l a s t i c s
362
369
VA
cent)
"
"
Source: I n t e r v i e w i n f o r m a t i o n and UNIDO.
- The manufacture of matches (ISIC 352?) was mainly aimed at
s a t i s f y i n g domestic demand and was based on l o c a l raw and p r o c e s s e d
timber ( 5 8 % ) , domestic p a c k i n g m a t e r i a l s , t y r e s and spare p a r t s . These
and o t h e r minor i n p u t s came t o 40% of t o t a l i n t e r m e d i a t e consumption.
Value added comprised a s i m i l a r p r o p o r t i o n of o u t p u t . Heavy i m p o r t s of
match-boxes i n v i t e a p o s s i b l e I/S investment.
- Less than o n e - t h i r d of t o t a l i n p u t s f o r t h e manufacture of t y r e s
(ISIC 355) o r i g i n a t e d i n Cameroon and was dominated by purchases of
n a t u r a l rubber, v e g e t a b l e o i l s , c a r t o n s and boxes. The v a l u e added i n
t h i s a c t i v i t y was 42% and e x p o r t s t o n e i g h b o u r i n g c o u n t r i e s ( e x c l u s i v e l y )
made up 23% of f i n a l s a l e s .
- The two p l a s t i c goods (ISIC 356) manufacturers met 11% and 22% of
t h e i r r e s p e c t i v e i n t e r m e d i a t e requirements w i t h l o c a l goods. Both
generated h i g h (40% p l u s ) added v a l u e , w i t h l i t t l e o r no e x p o r t s . The
domestic purchases i n c l u d e d c h e m i c a l s , h a n d - t o o l s , c o v e r a l l s and spare
p a r t s . Both were heavy u s e r s of e l e c t r i c i t y and water.
- Glassmakinq (ISIC 362) was a l s o h e a v i l y
import-dependent,
n o t w i t h s t a n d i n g the a v a i l a b i l i t y of l o c a l m i n e r a l r e s o u r c e s , which made
up about o n e - t h i r d of a l l l o c a l purchases, f o l l o w e d by spare p a r t s (19%).
The a c t i v i t y a l s o made heavy use of p u b l i c u t i l i t i e s (41% of a l l domestic
i n p u t s ) . E x p o r t s (6% of s a l e s ) d i d not go beyond the UDEAC a r e a . The VA
r a t i o -was h i g h — 4 3 . 5 % .
- Two n o n - m e t a l l i c m i n e r a l s producers (ISIC 369) had q u i t e
d i f f e r e n t i n p u t p r o f i l e s by v i r t u e of b e i n g at two l e v e l s of t h e
p r o c e s s i n g c h a i n . The cement manufacturer procured o n l y 30% of t o t a l
i n p u t s from Cameroonian s o u r c e s , as i t s major i n p u t — c l i n l c e r — had t o be
imported. Domestic l i n l c s were w i t h producers of l i n e d bags, pouzzolane,
spare p a r t s , hardware and of e l e c t r i c i t y . Only 1% of output got exported
— a l l t o Chad. The p r o d u c t i o n of r e i n f o r c e d c o n c r e t e i t e m s , on t h e o t h e r
hand, was a l a r g e down-stream consumer of l o c a l cement, g r a v e l , sand and
i r o n / s t e e l r o d s . Host of i t s minor i n p u t s were a l s o manufactured l o c a l l y ,
r a i s i n g the share of d o m e s t i c a l l y procured i n p u t s t o 92%. Value added was
r e l a t i v e l y low (19%) and no e x p o r t s were made i n 1985/6.
- A very s i m i l a r s i t u a t i o n p r e v a i l e d i n r e s p e c t of two aluminiumbased f i r m s (ISIC 372 — non f e r r o u s metals f a b r i c a t i o n ) . The upstream
p r o c e s s o r of p r i m a r y aluminum had a s m a l l VA c o e f f i c i e n t , exported over
1/3 of i t s output and o n l y imported some c h e m i c a l s , f u e l and l u b r i c a n t s ,
l e a v i n g l o c a l products t o meet 98% of the f i r m ' s i n t e r m e d i a t e needs. The
manufacturer of aluminium u t e n s i l s e t c . had a much h i g h e r VA ( 3 4 % ) , but
exported o n l y 11% of i t s o u t p u t . I t s i n p u t s were dominated by l o c a l
aluminium semi's (such as d i s l i s ) and pac)iaging m a t e r i a l .
- The p r o d u c t i o n of a g r i c u l t u r a l hand t o o l s (ISIC 381) was h i g h l y
import-dependent as domestic i n p u t s c o n s t i t u t e d a mere 13% of the t o t a l .
However, they were w i d e l y d i s t r i b u t e d among manufacturing s u b s e c t o r s and
p u b l i c u t i l i t i e s . Added v a l u e reached almost 32% of t u r n o v e r ; o n l y 6% of
the l a t t e r came from s a l e s abroad (UDEAC).
- E l e c t r i c b a t t e r y manufacture (ISIC 383), a l t h o u g h as i m p o r t dependent ( o n l y 12% of a l l i n p u t s p r o c u r e d i n Cameroon), was a b l e t o
export 69.2% of i t s output t o s e v e r a l marlcets other than t h e UDEAC. L o c a l
purchases were c o n f i n e d m a i n l y t o paper-based items and packaging
m a t e r i a l s , p l u s some c h e m i c a l s . The VA c o e f f i c i e n t was 22%. W i t h i n the
same ISIC c a t e g o r y , but l i m i t e d t o e l e c t r o n i c assembly, another f i r m
r e c o r d e d no l o c a l l y purchased i n p u t s whatsoever (except f o r e l e c t r i c i t y ) .
I t s VA came t o 18.3% and e x p o r t s t o about 5% of t u r n o v e r .
-The metal products f a b r i c a t i n g s u b s e c t o r (ISIC 384) was
r e p r e s e n t e d i n the sample by the manufacture of s i m p l e t r a n s p o r t
equipment, c h a s s i s e t c . , s i t u a t e d w e l l downstream of e x i s t i n g i n d u s t r i e s
which c o u l d s u p p l y i t w i t h a l l but f u e l and l u b r i c a n t i n p u t s . Value added
came t o 29.5% of s a l e s , which were l i m i t e d t o t h e domestic market,
a l t h o u g h i n p r e v i o u s years s m a l l q u a n t i t i e s had been e x p o r t e d .
-The l a s t of the sample f i r m s — manufacturing household goods
(ISIC 390 — o t h e r manuf.) was a l s o v e r y import-dependent.
Locally
produced i n p u t s made up o n l y 10.5% of i t s i n t e r m e d i a t e consumption,
h e a v i l y weighted by enamel s u p p l i e s and packaging m a t e r i a l s . The v a r i e t y
of i t s imported i n t e r m e d i a t e s e.g. h a n d l e s , metal s h e e t i n g and some
a r t i c l e s s i m i l a r t o l o c a l l y made ones, a g a i n present scope f o r
s u b s t i t u t i o n . The f i r m ' s VA c o e f f i c i e n t was the h i g h e s t i n the sample —
66.3%.
b)
Efficiency
The r e v i e w of s e c t o r a l and f i r m l i n k a g e s and t h e i r d i r e c t m u l t i p l i e r
p o t e n t i a l concluded t h a t domestic r e s o u r c e p r o c e s s i n g o f f e r e d the best
l e v e r a g e f o r f u r t h e r i n g i n d u s t r i a l i z a t i o n i n Cameroon w i t h i n the e x i s t i n g
p o l i c y and i n s t i t u t i o n a l framework.
I t a l s o d e t a i l e d the g e n e r a l l y poor c o m p e t i t i v e n e s s of Cameroon's
manufactures, as r e f l e c t e d i n the f a l l o f the share o f a l l manufactures
I.e., i n c l u d i n g semi-processed goods, i n t o t a l e x p o r t s from about 20% m
the l a t e s i x t i e s t o below 10% i n the e a r l y e i g h t i e s .
The f i r s t of these f i n d i n g s i s c o n s i s t e n t w i t h that about changes m
r e l a t i v e l a b o u r p r o d u c t i v i t y i n m a n u f a c t u r i n g i n UNIDO's most r e c e n t
study on the Cameroon.i'' The f i v e h i g h e s t performance r a t i n g s (expected
p r o d u c t i v i t y g a i n s / o b s e r v e d ones) were i n the f o l l o w i n g o r d e r :
1st — p r o c e s s i n g of n o n - f e r r o u s m e t a l s ;
2nd S, 3rd — p r o c e s s i n g and f a b r i c a t i n g wood
products
4th — food p r o c e s s i n g ;
5th — l e a t h e r p r o c e s s i n g and f a b r i c a t i o n .
An e a r l i e r comparison of e x - f a c t o r y p r i c e s of a sample of
manufactured Cameroonian p r o d u c t s w i t h those of d u t y - p a i d competing
i m p o r t s concluded a f f i r m a t i v e l y as t o the economic e f f i c i e n c y of such
food and d r i n k i n d u s t r i e s as c h o c o l a t e and p a s t a making, and beer
brewing. These items were f r e q u e n t l y s o l d at l e s s than the maximum p r i c e s
a l l o w e d by the t a r i f f s so as t o f a c e up t o the c o m p e t i t i o n of contraband
supplies.
The p r e v a i l i n g i n c e n t i v e ( p r o t e c t i v e ) regime p r o v i d e d o n l y
n e g l i g i b l e support t o many o t h e r r e s o u r c e - b a s e d p r o c e s s i n g a c t i v i t i e s
and, i n the case of f r o z e n shrimps, p e n a l i z e d t h e i r
manufacture through t a x e s on i n p u t s and on e x p o r t s . The s t u d i e s of the
i n c e n t i v e system c a r r i e d out f o r the World Bank i n 1977-80 concluded t h a t
the r e l a t i v e l y g r e a t e s t m a t e r i a l and f i n a n c i a l encouragements were b e i n g
r e c e i v e d by t h e most import-dependent m a n u f a c t u r i n g a c t i v i t i e s but which
s t i l l f a i l e d i n h e l p i n g them win or even m a i n t a i n market shares abroad.
I t i s i m p o r t a n t t o note t h a t the p r o t e c t i v e / i n c e n t i v e regime i n
Cameroon has not changed s i g n i f i c a n t l y from the time of independence i n
1960, save t h a t the Investment Code of 1986 extended customs and f i s c a l
advantages t o SMEs. New investment c o n t i n u e s t o be p r o v i d e d w i t h
exemptions from import d u t i e s on c a p i t a l and i n t e r m e d i a t e i n p u t s , t a x
h o l i d a y s on p r o f i t s and w i t h o t h e r t a x " b r e a k s " . Upon the e x p i r y of t h e
UNIDO, "Cameroon", I n d u s t r i a l Development Review s e r i e s ,
Oct. 1986. The p r i n c i p a l t o o l of the performance a n a l y s i s i s t h e
r e g r e s s i o n o f the observed r e l a t i o n s h i p between the growth r a t e
of v a l u e added i n a s u b s e c t o r ( i n d e p e n d e n t v a r i a b l e ) and t h e
i n c r e a s e i n VA per employee (dependent v a r i a b l e ) , and a normative
one developed by Verdoorn.
f r a n c h i s e s , the e n t e r p r i s e s u s u a l l y r e c e i v e " r e g i o n a l taxe unique s t a t u s "
under which
t a r i f f exemptions are not time-bound. More i r e p o r t a n t l y ,
q u a n t i t a t i v e r e s t r i c t i o n s on competing imports — when c o r r e c t l y a p p l i e d
— p r o v i d e i n d u s t r i e s w i t h " t a i l o r - m a d e " p r o t e c t i o n . The net e f f e c t 'jf
the p r e v a i l i n g regime s t i l l encourages i m p o r t - s u b s t i t u t i o n at a
s u b s t a n t i a l l y h i g h cost to t a x p a y e r s . Over time, the p r o t e c t i v e system
must have a c t e d to the detriment of the e f f i c i e n c t use of r e s o u r c e s i n
manufacturing and of Cameroonian p r o d u c t s ' c o m p e t i t i v e n e s s by
encouraging the use of up-market, c a p i t a l - i n t e n s i v e technology m mainly
inwardly-oriented a c t i v i t i e s . " '
S e v e r a l Cameroonian food i n d u s t r i e s were found (o have been
e f f i c i e n t i n the l a t e s e v e n t i e s , i n the sense that the domestic r e s o u r c e
c o s t s of t h e i r products were l e s s than the b e n e f i t s i n terms ot fhv
f o r e i g n exchange saved (earned) by t h e i r a c t i v i t i e s .
D i r e c t r e s o u r c e cost c o e f f i c i e n t s (DRCs), c a l c u l a t e d f o r the World
Bank'*, p o i n t e d to e f f i c i e n t o p e r a t i o n s i n f r o z e n shrimps, p a s t a ,
c h o c o l a t e , beer, s o f t d r i n k s and cocoa b u t t e r — p r o v i d e d t h e i r c a p a c i t y
u t i l i z a t i o n c o u l d reach a c c e p t a b l e l e v e l s . The major e x c e p t i o n i n the
sampled food and beverage i n d u s t r i e s was f l o u r i-nillmr;, whose opc-ratiuns
r e s u l t e d i n net f o r e i g n exchange l o s s e s ( n e g a t i v e VA and DRC). As we hav>
seen, the i n d u s t r y was a l s o f i n a n c i a l l y i n s o l v e n t d u r i n g the e a r l /
eighties.
At the o t h e r end of the e f f i c i e n c y spectrum are a 'iniriher ot i r i i p ' j i i
dependent and/or c a p i t a l i n t e n s i v e i n d u s t r i e s . The one? for which DRC
v a l u e s have been e s t i m a t e d i n c l u d e some t e x t i l e m a n u f a c t u r i n g and t h p r o d u c t i o n of cemeiit bags and of f l a s h l i g h t b a t t e r i e s , a l l of whose DRCs
i n 1975/6 were above 1.3 i . e . they wc-re on the borderlmv; of i ne f t i c i . ncv
(See t a b l e 1 1 ) . Those w i t h a n e g a t i v e VA and DRC -- henfc p a t e n t l y
w a s t e f u l of p r o d u c t i v e r e s o u r c e s -- i n c l u d e d wheat f l o u r , j u t e bags,
f e r t i l i z e r s , r e i n f o r c i n g bars and the assembly of e l e c t r o n i c goods, uhose
handicaps and i n e f f i c i e n c i e s have been noted e a r l i e r .
" As p o i n t e d out i n the World Bank's Country Meii.ordnduK of
June 1984, (page 15):
"The slow growth o f manufactured e x p o r t s and the d e c l i n e m
the share m i n d u s t r i a l output
of i n d u s t r i e s p r o c e s s i n g domestic
raw m a t e r i a l s , c o n s t r a s t e d w i t h r a p i d growth of manufactured
imports
run counter to the expected path of a c o u n t r y
r e l a t i v e l y r i c h i n n a t u r a l r e s o u r c e s and l a b o u r
".
"> A DRC v a l u e of l e s s than u n i t y f o r an a c t i v i t y i n d i c a t e s
t h a t a u n i t of f o r e i g n exchange can be earned or saved through i t w i t h l e s s than the e q u i v a l e n t value (at f r e e t r a d e p r i c e s ) of the
domestic r e s o u r c e consumed by the a c t i v i t y . But when the DRC i s
c a l c u l a t e d f o r a s i n g l e y e a r , i t may not be r e p r e s e n t a t i v e of an
i n d u s t r y ' s average e f f i c i e n c y . S i m i l a r l y , i n d i v i d u a l DRCs cannot
be e x t r a p o l a t e d to e n t i r e s u b s e c t o r s as i n d i c a t o r s of e f f i c i e n c y .
See WB, I n d u s t r i a l Development and P o l i c y i n Cameroon, Sept.
1980, v o l . 1.
Domestic Resource Cost C o e f f i c i e n t s
(DRCs) of sampled
M a n u f a c t u r i n g A c t i v i t i e s i n 1975/6*
Subsector & product
DRC
Food p r o c e s s i n g :
- wheat f l o u r
negative
- cocoa b u t t e r ( f o r e x p o r t )
1.03
- c h o c o l a t e f o r t h e UDEAC market
0.50
- p a s t a f o r domestic S UDEAC s a l e
0.27
- f r o z e n shrimps f o r export
0.65
Beverages:
- beer f o r domestic s a l e s
0.17 - 0.19
Textiles:
- c o t t o n goods f o r export
1.97
- cement bags f o r domestic s a l e
1.36
- jute sacking
negative
Chemicals:
- soap f o r the UDEAC market
0.89
- matches "
"
"
0.85
- fertilizers
negative
- f l a s h l i g h t b a t t e r i e s f o r export
1.53
Non-metallic mineral products:
- cement ( f o r South Cameroon)
0.14
- cement ( " North
"
" )
0.83
Base metal p r o d u c t s :
- s t e e l r e i n f o r c i n g rods
negative
F a b r i c a t e d metal p r o d u c t s :
- a g r i c u l t u r a l t o o l s f o r export
0.75
Other manufactures:
- assembly o f r a d i o s & a p p l i a n c e s
negative
Note* For a d e f i n i t i o n of DRCs, see f o o t n o t e # 16. These v a l u e s were
based on the c a p a c i t y l e v e l s then being u t i l i z e d and subsumed a shadow
wage r a t e e q u a l t o 3/4 of the g o i n g one, and an 11% d i s c o u n t r a t e t o be
the o p p o r t u n i t y c o s t of c a p i t a l .
Source: World Bank, op. c i t . 1984, t a b l e 4 and r e f e r e n c e s .
In the n e x t , c o n c l u d i n g , s e c t i o n we sum up the evidence adduced,
d e p i c t b r i e f l y the s t a t e of p l a y i n r e s p e c t of the l e v e l of investment
a n t i c i p a t e d by the authors of Cameroon's s i x t h development p l a n (19861990) and, i n the l i g h t of t h e s h o r t term economic o u t l o o k f o r primary
producing c o u n t r i e s , s e t out what we b e l i e v e t o be p r i o r i t i e s f o r
forward-looking reforms.
5
CONCLUDIMG DISCUSSION
The o v e r a l l i m p r e s s i o n t h a t i s l e f t a f t e r a c l o s e look at Cameroon's
e x p e r i e n c e w i t h d i v e r s i f y i n g i t s r e s o u r c e - r i c h economy, i s one of
d i s o r i e n t a t i o n and u n d e r - u t i l i s a t i o n of a v a i l a b l e p o l i c y i n s t r u m e n t s ,
much of i t due to inadequate b a s i c d a t a , p o o r l y p r o c e s s e d , and to an
o v e r l y accommodating a p p l i c a t i o n of economic ground r u l e s .
Since world economic growth began t o d e c e l e r a t e at the s t a r t of the
p r e s e n t decade, Cameroon has been i n the Doldrums, r e f l e c t e d i n
n e g l i g i b l e l e v e l s of new p r o d u c t i v e investment and
a d d i t i o n s to
i n d u s t r i a l employment. A f t e r t h r e e y e a r s of q u a s i - s t a g n a t i o n i n r e a l
i n d u s t r i a l o u t p u t , 1984/5 was marked by a 10% drop i n t h a t of
SYNDUSTRICAM's member-companies. The t e r m i n a l year of the f i f t h
development p l a n saw p r i v a t e investment undershoot i t s t a r g e t l e v e l by
o n e - t h i r d . Indeed, out of the 29 i n d u s t r i a l p r o j e c t s encompassed by the
p l a n , o n l y one had been implemented. The expansion of t o t a l c r e d i t t o the
economy i n the same year came to o n l y 5.9% i n nominal terms — f a r below
the r a t e of i n f l a t i o n and of which 74% was i n s h o r t - t e r m advances,
24.9% i n medium, and a mere 1.1% i n l o n g term loans t o i n d u s t r y .
FOGAPE's l e n d i n g c a p a c i t y to SMEs was n e g l i g i b l e .
Yet the c o u n t r y ' s r e s o u r c e endowment was being enhanced by
c o n f i r m a t i o n of n o n - a s s o c i a t e d gas r e s e r v e s adequate to feed two
p r o c e s s i n g p l a n t s to manufacture methanol and ammoniacal urea f o r
f e r t i l i z e r s . Rubber p r o s p e c t s were i m p r o v i n g as new p l a n t a t i o n s began t o
mature and t o promise a t r i p l i n g of the 1983/4 l a t e x removals by 1990.
The output of U n i v e r s i t y graduates was expanding s t r o n g l y and l o c a l
businessmen put no l e s s than 40 i n d u s t r i a l p r o j e c t s up f o r a p p r o v a l by
the s t a t u t o r y body concerned. And s t i l l growth performance remained
disappointing.
The l a t e s t f i v e - y e a r development p l a n , 1986-1991 does
i d e n t i f y the many shortcomings of the recent past but, as f a r as the
m a n u f a c t u r i n g s e c t o r i s concerned, proposes e s s e n t i a l l y "more of the
same".'" Perhaps c l o s e r t o our concern, however, i s the s t a t e d
of the a u t h o r i t i e s t o :
intention
- b o l s t e r t h e p r o v i s i o n s of the 1986 Investment A c t w i t h a r e v i s i o n
of the f i s c a l s t r u c t u r e and the i n t r o d u c t i o n of VAT.
- r e l a t e a u t h o r i s e d p r i c e s c l o s e r t o t r u e c o s t s of p r o d u c t i o n :
- t i g h t e n up p r o t e c t i v e measures through b e t t e r customs c o n t r o l and
valuation:
- p r o v i d e more d i v e r s i f i e d a i d t o domestic m a n u f a c t u r e r s , i n c l u d i n g
p r e f e r e n t i a l p u r c h a s i n g of l o c a l i n p u t s ;
- s t a n d a r d i z e goods and e n f o r c e q u a l i t y norms;
- ensure c l o s e r v e t t i n g of new t e c h n o l o g y and a f u l l e r use of
n a t i o n a l l y - h e l d p a t e n t s and l i c e n s e s ;
- delineate a c t i v i t i e s reserved for private enterprise;
- a s s i s t w i t h p r o j e c t i d e n t i f i c a t i o n and p r e p a r a t i o n .
Most, i f not a l l , of these i n t e n t i o n s have been the o b j e c t of
c o n t i n u i n g d i s c u s s i o n between o r g a n i s e d businessmen and p u b l i c
a u t h o r i t i e s and i t remains t o be seen how they w i l l be f u l f i l l e d . The
s t r e s s on s t a n d a r d s and norms i s s a l u t a r y i n many r e s p e c t s as i t w i l l not
o n l y p r o t e c t t h e consumer, but a l s o reduce i m p o r t s . M e d i o c r i t y of l o c a l l y
manufactured goods (e.g. beer b o t t l e s ) as w e l l as t h e i r u n c o m p e t i t i v e
c o s t , have been f r e q u e n t l y c r i t i c i s e d . I t should a l s o reduce the p u b l i c
s e c t o r ' s r e t i c e n c e t o o r i e n t procurement p r e f e r e n t i a l l y to l o c a l
p r o d u c e r s . On t h e o t h e r hand i t c o u l d i n c i t e the l a t t e r t o make l a r g e r
and more r e g u l a r p r o v i s i o n f o r a m o r t i z a t i o n and m o d e r n i s a t i o n of
i n s t a l l e d equipment.
But
s e v e r a l obvious p o l i c y gaps were l e f t unaddressed, asiiong them:
I n d u s t r i a l s t r a t e g y i s t o f o l l o w a Master P l a n t o the
year 2000, which was s t i l l i n t h e p r o c e s s of being d r a f t e d i n
mid-1987. But t h e i n d u s t r i a l s e c t o r ' s share of t o t a l investment
to 1990 was s e t at j u s t 7% (FCFA 290.4 b i l l i o n ) t o be channeled
into:
-more p r o c e s s i n g of t r a d i t i o n a l a g r i c u l t u r a l p r o d u c t s ,
such as sugar cane, palm o i l , e d i b l e o i l , f r u i t , v e g e t a b l e s and
t i m b e r . T h i s would presumably i n c l u d e such l e f t - o v e r s from the
e a r l i e r p l a n as tomato p r o c e s s i n g and p i n e a p p l e c a n n i n g .
- C o n s t r u c t i n g more g r a i n , r i c e and s a w m i l l s ;
- A new c h o c o l a t e and cocoa r e s i d u e p r o c e s s i n g f a c t o r y ;
- I n c r e a s i n g the c a p a c i t y of the petroleum r e f i n e r y ;
- E x t e n d i n g the e x i s t i n g cement c a p a c i t y and adding t h e
manufacture of p r e - s t r e s s e d c o n c r e t e ;
- B u i l d i n g one or more urea-based f e r t i l i z e r f a c t o r i e s ;
- E s t a b l i s h i n g more b a s i c metal p r o c e s s i n g p l a n t s ;
- E x t e n d i n g aluminium output by 2,500 m e t r i c t o n s ;
- M a n u f a c t u r i n g n a t u r a l gas c a n i s t e r s out of imported
sheet m e t a l ;
- Several small firms for e l e c t r i c bulbs, hurricane
lamps, s m a l l e l e c t r i c motors, s t o r a g e b a t t e r i e s and u n i v e r s a l
spare p a r t s . (See: R e p u b l i c of Cameroon, V l t h F i v e Year Economic,
S o c i a l and C u l t u r a l Development P l a n , 1986-1991, Secondary
S e c t o r , Yaounde, 1987.
- the need to exact the f u l f i l l m e n t by e n t e r p r i s e s b e n e f i t t i n g from
the Investment Code of t h e i r c o u n t e r p a r t o b l i g a t i o n s ;
- the urgent need to f a c i l i t a t e access to medium and long term
c r e d i t , e s p e c i a l l y by SMEs;
- d i s c o u r a g e i m p o r t s by d r f f e r e n t l a t i n g commercial margins i n fauout
of l o c a l p r o d u c t s ;
- l i m i t the scope of e x i s t i n g p r i c e c o n t r o l s to " s e n s i t i - e " product";
( i . e . those r e q u i r i n g p r i o r a u t h o r i s a t i o n f o r import) or those
d e s t i n e d f o r mass consumption;
- as m S e n e g a l , f o r i n s t a n c e , have a r e p r e s e n t a t i v e body pass on
the need f o r the r m p o r t a t i o n of goods o s t e n s i b l y m s h o r t s u p p l y ;
- set a f i r m time l i m i t f o r the s e t t l e m e n t of c l a i m s on the p u b l i c
sector;
- take the l e a d i n d e v e l o p i n g i n d u s t r i a l complementai i t y inth.'!.
UDEAC.
N e g l e c t of these i s s u e s w i l l not hel.o Cameroon to shake o f f i t s
l e t h a r g y . The t i m i d r e c o v e r y of commodity p r i c e s m the f i r s t h a l f of
1987 has p r o b a b l y been nipped m the bud by the stock-market "shake out"
of October 1987 and which l e s s e n e d the chances of a p i c k - u p ir, the
world's economy. In such a b l e a k c o n t e x t , what a r . ; Cameroon's chances of
m o b i l i s i n g n o n - p r o d u c t i v e domestic s a v i n g s and a t t r a c t i n g f o r e i g n venture
c a p i t a l , t e c h n o l o g y and marketing know-how? Can i t c o n v i n c o the oi^nei . .4
p e t r o - d o l l a r s to i n v e s t i n t r o p i c a l hardwoods, f i u i t s and v e g e t a b l e s "
In c o n c l u s i o n , the author should l i k e to advance some p o l i c y measur.
t h a t might complement those a l r e a d y i n t r a m or merely e n v i s a g e d :
i ) focus e f f o r t s on l o w e r i n g c o s t s of p r o d u c t i o n through j i o r e
i n t i m a t e s u b - r e g i o n a l c o o r d i n a t i o n of procurement and the expansion of
p r o d u c t i v e c a p a c i t i e s . C o m p e t i t i v e i m p o r t - s u b s t i t u t i o n by c o u n t r i e s
members of UDEAC must be h a l t e d . I n d u s t r i a l complementarity c o u l d be
f a c i l i t a t e d by s a n c t i o n i n g m a r k e t - s h a r i n g arrangements between e x i s t i n g
f i r m s . E x t e r n a l l y a i d e d p r o j e c t s c o u l d be u n t i e d by donors t n s t i m u l a t e
the use of l o c a l or UDEAC i n p u t s . L i n e m i n i s t r i e s c o u l d be i n s t r u c t e d t r"buy l o c a l " w i t h o u t n e c e s s a r i l y r e q u i r i n g European q u a l i t y s t a n d a r d s to
be s a t i s f i e d .
i i ) Y i e l d s m a g r i c u l t u r e , f o r e s t r y and f i s h i n g must be l a i s e d ir-A
raw m a t e r i a l s u p p l i e s to the m a n u f a c t u r i n g s e c t o r a s s u r e d , both
m
r e s p e c t of q u a n t i t y and of q u a l i t y .
i i i ) I n s t r u c t the Cameroon Development Bank to be luore s.i.npott;ve ot
m a n u f a c t u r e r s ' c r e d i t and t e c h n i c a l a s s i s t a n c e needs, as w e l l as to
p r o v i d e the SMEs w i t h adequate s u b s i d i s e d c r e d i t and t e c h n i c a l a i d
through CAPME and FOGAPE.
i v ) F o l l o w through w i t h the divestment o p t i o n a l r e a d y put forward
the SNI and mop up as much as p o s s i b l e the p r i v a t e s a v i n g s o t h e r w i s e
flowing into
s e r v i c e s or b e i n g i n v e s t e d abroad.
v) Undertake a r e v i e w of the CPA's p a r i t y so as to take f u l l
account of the e v o l v i n g s t r u c t u r e of e x t e r n a l t r a d e
and payments, to ensure t h a t t h e r e are no r e a s o n a b l e grounds f o r a
devaluation.
by
ANHEXURE 1
A. Cameroon's GDP : s t r u c t u r e and growth, 1970-1984
(constant
GDP
Value growth
1970
:
1980 US$ 10^ and p e r c e n t )
C o n t r i b u t i o n of V a l u e Added by:
Trans/Stor.
Agric
Manuf
Constr
Trade
27
11
3
21
6
28
10
4
15
7
27
10
6
13
6
25
10
6
13
6
5.0
3.5
1975
5.9
7.5
1980
8.5
6.5
1984
10.9
S e r v i c e s : GFCF
: 22
17
: 21
20
: 25
21
: 23
21
1970
1975
1980
1984
EXPORTS
20
21
22
17
: IMPORTS (-)
:
24
:
23
:
26
:
25
Source: UNIDO, S t a t i s t i c s and Survey U n i t .
B. Cameroon's P o p u l a t i o n
and Labour F o r c e ,
(1965-1985)
( m i l l i o n and p e r c e n t )
Population
Number
Growth r a t e
1965
1970
1975
1980
1985
Source:
6.1
6.7
7.6
8.6
9.9
Ibid.
2.1
2.3
2.5
2.7
2.8
T o t a l Labour Force
Number
Growth r a t e
3.1
3.4
3.6
3.9
1.3
1.5
1.6
1.7
C.
a)
b)
a)
b)
K a n u f a c t u r i n q Value Added (MVA),
growth r a t e s (1975 - 1985).
i n c u r r e n t producer v a l u e s ,
a t c o n s t a n t 1980 p r i c e s
a. MVA i n FCFA 10'
Subsector
1975
b. growth r a t e
1985
1975-1982
Food p r o c e s s i n g
3.4
Beverages
10.4
Textiles
4.8
Apparel
1.2
Leather products
0.5
Footwear
1.8
Wood p r o d u c t s
0.5
F u r n i t u r e (non a r t i s ) neg.
Paper and products 0.2
P r i n t i n g & p u b l i s h . 0.4
Ind. c h e m i c a l s
0.6
Other c h e m i c a l s
3.3
Rubber products
neg.
P l a s t i c products
0.9
Ceramic ware
0.6
G l a s s products
0.5
N o n - m e t a l l i c min.
1.3
Iron i s t e e l
0.8
Non-ferrous metals 2.0
F a b r i c a t e d metal
0.2
Non-elec. machinery 2.6
E l e c t r i c a l machin. 0.7
Transport equip.
0.3
Other manufactures 0.3
42.7
119.4
25.1
8.5
5.2
11.1
6.0
0.8
4.3
5.2
5.8
17.6
2.0
8.1
4.3
3.3
8.8
20.4
15.1
n.a.
19.1
5.2
2.4
10.0
5.0
15.2*
n.a.
6.3
13.9
13.9
6.5*
6.5*
n.a.
n.a.
-0.8
7.8
n.a.
n.a.
2.5
2.6
2.5
n.a.
4.1*
5.7**
5.7**
-2.7
3.5
n.a.
TOTAL
383.0
41.8
5.0***
Note; Petroleum r e f i n i n g not i n c l u d e d f o r l a c k of d a t a .
* 1975 - 1983
** 1975 - 1980
*** 1975 - 1984
Source: UNIDO, o p . c i t . 1987, t a b l e s 4 and 8.
D. FCFA / US DOLLAR AVERAGE PAR/MARKET RATES
(1960 - 1986)
CFA f r a n c s per US d o l l a r
1960
1965
1970
1975
1980
1985
1986
246.85
246.85
277.71
214.31
211.28
449.26
346.30
Source: IMF, I n t e r n a t i o n a l F i n a n c i a l S t a t i s t i c s , 1987.
(%)
ANNEXURE 2
CELLUCAM: E x c e t p t s from the o f f i c i a l brochure,
1984/5.
"Introduction
"
Cellucara, w i t h i t s FCFA 75 b i l l i o n investment i s not
o n l y the l a r g e s t i n d u s t r i a l venture m C e n t r a l A f r i c a , but a l s o
I S the f i r s t i n the w o r l d i n terms of t e c h n o l o g y . Indeed, nowhere
e l s e has i t been p o s s i b l e to manufacture wood pulp on an
i n d u s t r i a l s c a l e u s i n g n a t u r a l t r o p i c a l f o r e s t timber
"Impact on the Economy
"
the C e l l u c a l pulp m i l l p r o v i d e s an example of how the
i n d u s t r i a l i z a t i o n of a d e v e l o p i n g c o u n t r y s h o u l d be pursued. The
q u e s t i o n of whether o r not l a r g e i n d u s t r i a l complexes a r e at a l l
s u i t e d t o the needs of the d e v e l o p i n g c o u n t r i e s , o r i f an
i n d u s t r i a l (environment) must be c r e a t e d beforehand, does not
a r i s e here ( s i c . ) .
Cameroon demonstrates, w i t h Cellucam, t h a t l a r g e i n d u s t r i a l
developments and the n e c e s s a r y i n f r a s t r u c t u r e can be c r e a t e d
s i m u l t a n e o u s l y . When a n a t i o n wishes t o b e n e f i t from the dynamics
of w o r l d t r a d e , t h e r e a r e no o t h e r a l t e r n a t i v e s ( s i c ) .
For a r a t i o n a l e x p l o i t a t i o n of Cameroon's f o r e s t w e a l t h , i t
would not have been e c o n o m i c a l l y e f f i c i e n t t o have b u i l t a
s m a l l e r p l a n t . 120,000 tons of pulp a n n u a l l y r e p r e s e n t t h e
a p p r o p r i a t e throughput n e c e s s a r y t o p r o v i d e a r e t u r n on the
capital invested.
"
A f t e r p r e p a r a t o r y f e a s i b i l i t y s t u d i e s , t e s t s of l o c a l wood
and d i s c u s s i o n s r e g a r d i n g f i n a n c i n g , on May 11 1974
the
Government of Cameroon, t o g e t h e r w i t h V o e s t - A l p i n e , t h e l a r g e s t
s t e e l and p l a n t c o n s t r u c t i o n company m A u s t r i a , s i g n e d a
c o n t r a c t f o r the e r e c t i o n of t h e t u r n k e y p u l p m i l l .
"
At the request of the government, t h e m i l l i s t o p r o c e s s
the i n d i g e n o u s t r o p i c a l hardwoods and t o have the r e s u l t i n g h i g h q u a l i t y bleached s u l p h a t e p u l p earn v a l u a b l e f o r e i g n c u r r e n c y f o r
the c o u n t r y . I n a d d i t i o n , pulp p r o d u c t i o n i s t o p r o v i d e the
b a s i s f o r a f u t u r e paper i n d u s t r y .
"The
forest
concession
"
A f o r e s t i n v e n t o r y has shown t h a t t h e timber r e s e r v e s a r e
of a g r e a t v a r i e t y
no l e s s than 350 s p e c i e s of t r e e s , 110
of which make up 80% of t o t a l r e s o u r c e s . Cellucara has accepted
the r e s p o n s i b i l i t y f o r m a r k e t i n g these ( r a r e ) t r e e s s e p a r a t e l y .
"Personnel
"Cellucam employs 1,300 persons and has arranged r e g u l a r
t r a n s p o r t f o r a l l between t h e i r homes and the m i l l
a career
development p l a n has been f o r m u l a t e d
"Future p r o s p e c t s
" In coming y e a r s Cellucam w i l l develop i n t o an i n t e g r a t e d wood
m a n u f a c t u r i n g e n t e r p r i s e . Concrete p l a n s i n c l u d e the b u i l d i n g of
a s a w m i l l to process between 25,000 and 30,000 t'' of wood i n t o
cut t i m b e r , and the i n s t a l l a t i o n of a paper-making machine....fot
w r i t i n g , p r i n t i n g and l i g h t wrapping paper. The annua] productior.
c a p a c i t y w i l l be around 40,000 t o n s . T h i s w i l l not o n l y serve to
s a t i s f y domestic demand, but a l s o p r o v i d e s u f f i c i e n t e x p o r t s to
neighbouring countries.
" ^„.mod e_l_qf_ _mu 1 t i n a 11 ona 1 _ c qope r ajti on
"
The A u s t r i a n company V o e s t - A l p i n e i s a d i r e c t p a r t n e r of
C e l l u c a m , the m a j o r i t y s h a r e h o l d e r of which i s the Caraerooniau
state
I t was a s s i s t e d by a number of s u b c o i j t r a c t o r s , i n
particular:
R a z e l Co.
(France/Cameroon;
Costain Intl.(UK)
Montalev 'France)
Technisches Euro P l e s s l i n g e r
(Austria).
"The equipment used was s u p p l i e d by companies from c o u n t r i e s
which shared i n the f i n a n c i n g of the p r o j e c t , the most important
are:
S t e m I n d u s t r i e s (France)
Escher Uyss ( S w i t z e r l a n d )
Brimont et B e r l i e t (France)
Asea and Sunds AB (Sweden)
I n v e s t - E x p o r t (GDR)
Polimex (Poland)
Fakom ( Y u g o s l a v i a )
PW
(Austria)
A n d r i t z (Austr 'a)
Rutlmer ( A u s t r i a )
Kullauer (Austiia)
V o e s t - A l p i n o (flustri.i)
"Finance
"
F i n a n c i a l c r e d i t s were guaranteed by the Chase Manhattan
Bank (New York) and the Arab Bank f o r Economic Development i n
A f r i c a (Khartoum)
"Marketing
"A marketing and management c o n t r a c t with....Svenska C e l l u l o s a
AB...to a s s i s t w i t h the s e l e c t i o n and t r a i n i n g of p e r s o n n e l ,
t o g e t h e r w i t h the o r g a n i z a t i o n and management of the p l a n t and
c o n t r o l the marketing of the p u l p .
"From the i d e a to the
realization
"
the Cameroon p l a n t i s above a l l remarkable f o r the f a c t
that here, f o r the f u s t time, a new raw m a t e r i a l i s to be
p r o c e s s e d on an i n d u s t r i a l s c a l e : mixed t r o p i c a l hardwood.
"Studies
and
analyses
" L a b o r a t o r y and s e m i - i n d u s t r i a l t e s t s have shown t h a t , f o l l o w i n g
a p r e l i m i n a r y s e p a r a t i o n of u n s u i t a b l e s p e c i e s , tlie average
p h y s i c a l and c h e m i c a l p r o p e r t i e s can be o p t i m i z e d to a degree
that r e a d i l y p e r m i t s the p r o d u c t i o n of p u l p comparable i n q u a l i t y
to that demanded on the world market.
"
The f i n a n c i n g p o s s i b i l i t i e s a l s o determined the s c a l e of
the p r o j e c t and
i t s phasing."
(Requiescat
i n pace.)
REFERENCES
Banque Camerounaise de Developpement (BCD),Rapport d ' f l r t i v i t e s ,
E x e r c i c e 1983-1984; d i t t o 1985:19_86j__Yaounde, 1 937 .
Banque des E t a t s de I ' A f r i q u e C e n t r a l e , Etudes et S t a t i s t i q u e s ,
Centre N a t i o n a l d ' A s s i s t a n c e aux P e t i t e s et Moysnnes E n r r e p r i s e ' .
(CAPME), Rapport d ' A c t i v i t e I n t e r m e d i a i r e de 1 ' E x e r c i c e d i t t f .
1986/1987, March 1987;
E v a l u a t i o n de 1 ' A s s i s t a n c e d.j CAPKE, J 9 3 : n i 1984/5,
October 1985,Douala.
Economist I n t e l l i g e n c e U n i t . Country Report, Cameroon, CAR,
v a r i o u s i s s u e s ; Country P r o f i l e , d i t t o , London.
Groupement
Chad,
I n t e r p r e t e s s i o n e l pour I'Etude et l a C o o r d i n a t i o n Jes
I n t e r e t s Economiques au Cameroun 'GICAM) , LJEcoriomie
Camerounaise, B i l a n s des E x e r c i c e s 1932-1983, d i t t o
1984-1985," "Yaounde, 1985 'and l93"7.
Republique du Cameroun, M i n i s t e r e du P l a n et de 1'Amenage^tient du
T e r r i t o i r e , D i r e c t i o n de l a S t a t i s t i q u e et de l a
C o m p t a b i l i l e M a t i o n a l e , Coyptes Hationaux du Carferoun
( v e r s i o n SCH) , Hay 1985 ; Tableau Entrees - S c r t i e s _ ,
1979/80, undated. Mote Annuell6^__d^Jt_atis^t^ig^ue^l984.'5,
Yaounde.
S o c i e t e pour l e Developpement Economique et S o c i a l (SEDES),
I n d u s t r i a l i s a t i o n des Pays d ' A f r i q u e Sub- Saharieiin
ks_CA?...djl_.Camerpunj A p r i l 1986, P a n s .
S o c i e t e N a t i o n a l e d ' I n v e s t i s s e m e n t (SNI), D i r e c t i o n G e n e r a l e ,
Rapports d ' A c t i v i t e s , E x e r c i c e s J9_81 /_2^ 1984/5, June
1983 and 1986, Yaounde."
SYNDUSTRICAM, Rapport d ' A c t i v i t e s 1985/6, Yaounde,
1987.
UNCTAD, Handbook of I n t e r n a t i o n a l Trade and Development
S t a t i s t i c s , Supplements, 1984-86; Monthly Commodity_
P r i c e B u l l e t i n , v a r i o u s i s s u e s , Geneva.
UNIDO, P r o j e t , P l a n D i r e c t e u r d ' I n d u s t r i a l i s a t i o n , (phas_e_ll) ^ DP
CMR/83/001, v a r i o u s s u b s e c t o r a l s t u d i e s .
Country P r o f i l e - Cameroon, IDDA/CMR/86, June 1986; A
S t a t i s t i c a l Review of Economic and _ I n d u s t r i a j . _
Performance, " U n i t e d R e p u b l i c of Cameroon",January
1987; Cameroon, I n d u s t r i a l Development Review S e r i e s ,
October 1986, V i e n n a .
USAID, M P E v a l u a t i o n S p e c i a l Study Ho.16, "The T o r t o i s e Walk:
P u b l i c P o l i c y and P r i v a t e A c t i v i t y i n the Economic
Development of Cameroon", March 1983, Washington
D.C.
World Bank, I n d u s t r i a l Development and P o l i c y m Cameroon,
3 v o l s . September 1980; Coun_try_Economic MemorandumCameroon - I n d u s t r i a l S e c t o r P o l i c i e s and Planni.n^.,
June 1984; d i t t o 1986, Washington D.C., 1987.
*****************************
A*