The World Bank in Cameroon

Overview

Cameroon is a lower-middle-income country with a population of over 27.9 million (2022). Located along the Atlantic Ocean, it shares its borders with the Central African Republic, Chad, Equatorial Guinea, Gabon, and Nigeria. Two of its border regions with Nigeria (northwest and southwest) are Anglophone, while the rest of the country is Francophone. Cameroon is endowed with rich natural resources, including oil and gas, mineral ores, and high-value species of timber, and agricultural products, such as coffee, cotton, cocoa, maize, and cassava.

Political Context

The first regional elections were held in December 2020. The ruling party, the Cameroon People’s Democratic Movement (CPDM), won nine of the ten regions. These elections mark the start of the decentralization process provided for in the 1996 Constitution. The new regional councilors will work with the Ministry of Decentralization and Local Development to pave the way for the gradual transfer of power and the necessary funds to the regions. 

Presidential elections are scheduled for 2025. And while the question of a new candidacy for President Paul Biya is being raised, the opposition is discussing the possibility of a single candidacy.

Having enjoyed several decades of stability, Cameroon has in recent years been grappling with attacks by Boko Haram in the Far North and a secessionist insurgency in the Anglophone regions. Since September 2017, this situation has displaced more than one million internally and around 470.000 refugees have sought shelter in Cameroon. Following the resurgence of the crisis in the Central African Republic since January 2021, over 6,000 Central Africans refugees fled to Cameroon’s East region which was already hosting over 60 % of Central African refugees. According to UNHCR January 2024 figures, Cameroon is hosting over 478.680 refugees, primarily from the Central African Republic (73%) and Nigeria (26%).

Social Context

Because its poverty reduction rate is lagging behind its population growth rate, the overall number of poor in Cameroon increased by 12% to 8.1 million between 2007 and 2014, and poverty is concentrated in the country’s northern regions, where 56% of the poor live. 

Economic Overview

Cameroon's fiscal and external positions improved in 2022 against a backdrop of rising oil prices, but the regional economy's dependence on oil and other extractive industries exposes it to the volatility of commodity markets. Fiscal balances have improved, moving into surplus by the equivalent of 3.2% of GDP in 2022, compared with a deficit of 1.4% the previous year.

In the first six months of 2023, the average rate of food price inflation in CEMAC was 9.6%. The rising cost of living, particularly food prices, is having a negative impact on households, especially the most vulnerable. Poverty levels remain high and largely stagnant due to weak economic growth, combined with faster population growth.

Development Challenges

Ranked 140 out of 180 countries in the 2023 Transparency International corruption perceptions index, Cameroon suffers from weak governance, hindering its development and ability to attract investors. 

Last Updated: Mar 12, 2024

World Bank Engagement in Cameroon

The World Bank’s portfolio in Cameroon comprises 18 national operations financed by IDA, the Global Environment Facility, and trust funds, with a net commitment of roughly 3.3 billion.

The World Bank is financing a transport sector development project and an electricity transmission network improvement and energy sector reform project. It is also supporting the improvement of Cameroon’s competitiveness in energy, transport, and telecommunications. Furthermore, it is seeking to support service delivery for human development through a social safety net system and local development, with a focus on providing greater access to basic public services through infrastructure upgrades and capacity building in Cameroon’s most disadvantaged regions.

The new Country Partnership Framework with Cameroon was adopted for the 2017-2021 period. This Partnership Framework, which was evaluated and approved in July 2021, is aligned with the objectives of the government’s national development strategy for 2020-2030, and has 12 objectives grouped into three action areas:

• eliminate poverty in rural areas, in particular in the northern regions.
• strengthen infrastructure and develop the private sector.
• improve governance.

and the crosscutting theme of strengthening the fiscal framework.  

By providing multifaceted assistance that is expected to ultimately total close to $43 million in IDA grants and credits, the World Bank’s support with the COVID-19 response is structured around four pillars:

• Saving lives. 
• Protecting the poor and most vulnerable.
• Securing livelihoods, jobs, and the economy.
• Promoting a sustainable and resilient recovery. 

Initial emergency financing totaling $6.8 million was provided to the government to urgently manage the health situation and purchase medical equipment, screening test kits, and protective equipment. A $29 million emergency project was approved in September 2021 and will support efforts to strengthen the public health system in the regions. 

On Climate Change, Cameroon is committing through its National Determined Contributions (NDC, 2021) to reduce its greenhouse gas (GHG) emissions by 35% (up from 32% as presented in 2015 at COP 21). Since the COP21 in 2016, the WBG has integrated actions aimed at net reduction of GHG emissions and adaptation in its operations. The portfolio includes projects with climate co-benefits (CCB) of 47%. The latest Country Climate and Development Report (CCDR) for Cameroon launched in November 2022, highlights the challenges of climate change facing Cameroon’s development and outlines development priorities.

Last Updated: Mar 12, 2024

Boosting Electricity Production

Two projects being financed by the IBRD and IDA aim to boost access to electricity: the Rural Electricity Access Project that is being implemented in more than 400 localities and is benefiting one million people, and the Upstream Nachtigal Hydroelectric Project, which will support construction of a 420 MW dam. The Nachtigal power plant will be connected to the Southern Interconnected Grid, which accounts for approximately 94 % of Cameroon’s electricity consumption.

Enhancing Regional Trade and Integration

The Lake Chad Region Recovery and Development Project (PROLAC), which is being financed by IDA in the amount of $60 million, seeks to strengthen regional cooperation with a view to addressing the shared challenges in the subregion that foment terrorism and insecurity. It aims to improve community access to markets and socioeconomic services and includes initiatives that promote civic engagement and social cohesion. 

Improving Agricultural Competitiveness

World Bank engagement in the agricultural sector comprises two IDA-financed operations. The Acceleration of the Digital Transformation of Cameroon Project supports the establishment of a more enabling environment for the development of a digital economy and the reduction of digital divides in rural areas, while seeking to facilitate the implementation of solutions that will spur agricultural innovation.

Moving towards a permanent social protection system

Launched in 2013, the Social Safety Net project ($ 100 million IDA) has helped more than 385,000 poor households to improve their wellbeing. Under the new Adaptative Safety Net & Economic Inclusion Project ($160 million IDA) more than 60,000 young people will be trained in entrepreneurship and business development.

Support to the decentralization process

The World Bank is supporting Cameroon’s efforts to strengthen the capacity and resilience of decentralized local governments. Under the Prevention and Resilience Allocation (PRA), Cameroon has committed to ensuring the financial autonomy of regions and municipalities. The new Local governance and resilient communities project ($300 million IDA) will also play an important role in enhancing communities’ participation in local planning and governance; as well as building the capacity of decentralized local authorities to manage resources and implement public investments.

Improving the Quality and Efficiency of the Education System

The Cameroon Education Support Project ($175 million IDA) has been instrumental in reducing the textbook to pupil ratio from 1:17 (prior 2017) to one package of essential textbooks (French, English and Mathematics) for 2 pupils in 2022.

The $125 million Secondary Education and Skills Development Project aims to increase equitable access to quality secondary education and market-relevant technical and vocational training. 

Last Updated: Mar 12, 2024

Cameroon is one of the least aid-dependent countries in Sub-Saharan Africa. International partners such as the World Bank, the African Development Bank (AfDB), the European Union (EU), the Agence française de développement (AFD), the European Investment Bank (EIB), the Central African Economic and Monetary Community (CEMAC), the Banque de développement des États de l’Afrique Centrale (BDEAC), the International Monetary Fund (IMF), the United Nations, and Germany have strengthened their coordination mechanisms in order to further the Paris Declaration and Busan agendas for Cameroon.

Last Updated: Mar 12, 2024