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Country Commercial Guides for FY 2000:
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V. LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
The United States provided 8 percent of Cameroon's total imports in 1998. It ranked third behind Nigeria (8.45 percent), which provides Cameroon with most of the high grade crude used in its national refinery (SONARA), and France which provided 27.3 percent of total Cameroonian imports. Cameroon will continue to be an importer of wheat and flour, petroleum coke and pitch additives for aluminum smelting, used clothing and gross lot discounted/discontinued consumer products from the U.S. The U.S. Embassy has identified the following sectors as having potential for American exporters: agricultural inputs including fertilizer, heavy machinery and material for forestry, transport and road construction, pipeline construction and related services such as security and communications, computer, electronic equipment, and aircraft parts. The anticipation of a multi-billion dollar investment to develop oil fields in Chad and build an oil pipeline through Cameroon has dramatically increased the potential for U.S. exports to Cameroon.
Future export sectors could include:
- heavy machinery; equipment and material for transportation, agriculture, road construction/maintenance and oil and gas field exploration/production services; pipeline construction equipment and machinery, because of renewed activity;
- wood and materials handling machinery (skidders, harvesters, dozers, stackers, cranes, winches, trucks, trailers and buses) because of continuing timber industry expansion; also sawmill equipment and machinery (to meet the requirement that all wood products exported from Cameroon be processed by the year 2000);
- aircraft and parts, because of the liberalization of the air transport sector
- agricultural products including wheat, meslin flour, malt extract, corn, and soy beans;
- textiles and apparel because of the growing market for used clothing and footwear;
- agricultural inputs including fertilizer, insecticides and fungicides for retail sale (due to the liberalization of the cash crop production sector)
- raw materials and other inputs for light industry which continues to grow;
- related services such as security, communications, and computer and electronic equipment
The Cameroonian market for U.S. exports is small. After a rapid growth from 1995 to 1997, U.S. exports to Cameroon declined by 38 percent in 1998, falling from 122 million USD in 1997 to 75 million USD in 1998. The decline can be account for by a 78 percent decline in aircraft exports, a 12 percent fall in the export of vehicles, and a 4 percent decline in the export of machinery. Despite the decrease in U.S. exports to Cameroon in 1998, the U.S. market share was unchanged compared to the previous year. The U.S. import statistics listed below are based on information received from the U.S. Department of Commerce and estimates from the U.S. Embassy in Yaounde.
A. BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES
1 - AIRCRAFT/PARTS (AIR)
Imports of aircraft and parts from U.S. may likely stabilize at USD 8 million in 1999 after peaking at USD 38 million in 1997. The increase in 1997 was due to a project of the Cameroonian government to renew the fleet of its national airline (CAMAIR) and lease two aircraft, including a Boeing 737-300. As the air transportation sector is liberalized and privatized over the next several years, economic analysts expect a substantial increase in the importation of aircraft equipment and parts.
IMPORTS FROM THE U.S. (AIR) 1996 USD 169,000 1997 USD 38,784,000 1998 USD 7,772,625 1999 USD 8,017,082 (Estimated)2 - OIL/GAS FIELD MACH., OIL, GAS MINERAL PROD/EXPLOR SERV. (OGM, OGS)
The GRC and foreign oil companies plan to move forward with additional offshore oil production platforms in the Rio del Rey Basin and in the Kribi area, as well as with increased exploration. Recent incentives that the Government has granted for exploration and production of marginal and new oil fields should spur additional exploration and production activities over the next few years.
IMPORTS FROM THE U.S. (OGM, OGS) 1996 USD 27,205,000 1997 USD 25,655,192 1998 USD 19,215,903 1999 USD 19,031,671 (Estimated)3 - TRUCKS, TRAILERS/BUSES (TRK)
The decrease in the importation of heavy-duty equipment noted in 1997 has persisted in 1998 with another decrease expected in 1999. One reason may be the drop in timber exports. The Cameroon forestry law of January 1994 provides that by the year 2000 at least 70% of wood harvested be processed locally.
IMPORTS FROM THE U.S. (TRK) 1996 USD 15,500,000 1997 USD 11,582,000 1998 USD 9,355,092 1999 USD 8,990,912 (Estimated)4 - MINERAL ADDITIVES FOR THE ALUMINUM INDUSTRY (CMT)
Cameroon reportedly holds the fifth largest deposit of bauxite in the world. Cameroon's deposits are located at Minim/Martap in Adamawa and at Fongo Tongo in the West. They are, however, are too expensive to exploit. For this reason, one of the oldest industries in Cameroon is the aluminum processing plant which imports bauxite from Guinea. Aluminum represented 4.8 percent of Cameroon's exports in 1998. The processing plant has also increased its imports of petroleum coke and pitch. Given the competitive price of American suppliers, the factory has continued to import from the U.S., though at a decreasing rate. Another such decrease is expected in 1999.
IMPORTS FROM THE U.S. 1996 USD 6,181,000 1997 USD 6,042,000 1998 USD 5,422,065 1999 USD 4,211,011 (Estimated)5 - TEXTILE MACHINERY AND PRODUCTS - MADE-UP (TXM, TXP)
The market for U.S. exports of used clothing in Cameroon has increased during the past six years. The decrease seen in 1998 may be temporary.
IMPORTS FROM THE U.S. (TXP) 1996 USD 2,024,000 1997 USD 3,864,000 1998 USD 2,341,114 1999 USD 2,995,781 (Estimated)6 - AGRICULTURAL CHEMICALS (AGC)
Cameroon lifted most restrictions on the marketing of coffee and cocoa during 1994. World market prices for these commodities have been relatively favorable, if declining recently. Coffee production rose 22.8 percent and cocoa production went up 15.2 percent in FY1996. Production increases are expected in 1999 for other cash crops in Cameroon such as bananas, cotton (which was down 10 % in value in 1998), tea, tobacco and rubber. Palm oil and sugar production are expected to stagnate. The market for fertilizers and insecticides should increase substantially during the coming years. Following cancellation of subsidies, most imports from American sources stopped, and today a single company controls about 90 percent of the importation of chemical inputs and additives. European products dominate the market, but nascent medium-sized companies that represent U.S. firms are making inroads through extensive advertising campaigns, seminars and site visits.
IMPORTS FROM THE U.S. (AGC) 1996 USD 565,000 1997 USD 111,000 1998 USD 1,035,525 1999 USD 2,460,849 (Estimated)B. BEST PROSPECTS FOR AGRICULTURAL PRODUCTS
Cereal imports into Cameroon, including corn and wheat, have increased by more than five times in 1997 to stabilize at USD 5 million.
IMPORTS FROM THE U.S. 1996 USD 2,058,000 1997 USD 11,986,000 1998 USD 5,861,035 1999 USD 5,573,465 (Estimated)1 - WHEAT
Cameroon has five major flourmills. All use a mixture of American and European wheat but in differing proportions. American wheat is currently quoted as more expensive when bought through American dealers rather than European intermediaries. U.S. wheat exports to Cameroon have decreased to 4.5 million in 1998. A small increase is expected in 1999.
IMPORTS FROM THE U.S. 1996 USD 2,058,000 1997 USD 9,604,000 1998 USD 4,503,598 1999 USD 4,932,438 (Estimated)2 - CORN
Imports of U.S. corn peaked at USD 1,751,605 in 1997. The surge reportedly was due to an acute food shortage in the northern part of the country and to one of Cameroon's main animal feed manufacturers buying corn from the U.S. The import of U.S. corn to Cameroon will likely stabilize at USD 600,000 in coming years.
IMPORTS FROM THE U.S. 1996 USD 400,000 1997 USD 1,751,605 1998 USD 641,027 1999 USD 641,027 (Estimated)C. SIGNIFICANT INVESTMENT OPPORTUNITIES
The Cameroonian Government is pursuing a program of privatization of public sector industries, which offers U.S. firms an opportunity to bid on World Bank monitored privatizations. U.S. firms may submit purchase bids on the public enterprises that are scheduled to be privatized, including: CDC (the country's largest agricultural plantations project), SODECOTON (the cotton development project), CNR (reinsurance), BICEC (banking), CAMTEL and CAMTEL Mobile (telecommunications), CAMAIR (the national airline), SNEC (water utilities), and SONEL (electrical utilities) and the National Insurance Retirement Fund (CNPS).
During FY1997, HEVECAM (a rubber parastatal) and CAMSHIP (a shipping/container parastatal) were successfully privatized, and the Laiterie de Ngaoundéré milk processing parastatal was leased to a group of private investors for a two year trial period. CAMSUCO (a sugar complex) and SOCAPALM (a palm oil company) were privatized during FY1999. In the transport sector the national railroad corporation, REGIFERAM, was privatized in an inventive mixed manner in May 1998. In 1999, SOCAR (insurance) was privatized.
The Government of the United States acknowledges the contribution that outward foreign direct investment makes to the U.S. economy. U.S. foreign direct investment is increasingly viewed as a complement or even a necessary component of trade. Nearly sixty percent of total U.S. exports originate with American firms with investments abroad. Recognizing the benefits that U.S. outward investment brings to the U.S. economy, the Government of the United States undertakes initiatives, such as Overseas Private Investment Corporation (OPIC) programs, bilateral investment treaty negotiations and business facilitation programs, that support U.S. investors.
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[end of document] Note* International Copyright, United States Government, 1998 (or other year of first publication). All rights under foreign copyright laws are reserved. All portions of this publication are protected against any type or form of reproduction, communications to the public and the preparation of adaptations, arrangement and alterations outside the United States. U. S. copyright is not asserted under the U.S. Copyright Law, Title17, United States Code.
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