The World Bank in Cameroon

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 October 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 the United Nations High Commissioner for Refugees (UNHCR) July 2024 figures, Cameroon is hosting over 472.000 refugees, primarily from the Central African Republic (73%) and Nigeria (26%).

Social Context

Poverty reduction in Cameroon has stagnated over the past 20 years, with approximately 4 in 10 Cameroonians living below the national poverty line. The household survey data from 2021-2022 suggests that 23.0% of the population lives below the extreme international poverty line with only $2.15 per person per day, adjusted for purchasing power parity (PPP).

Economic Overview

Cameroon’s economic recovery slowed down in 2023, with real GDP expanding by only 3.3%, down from 3.6% in 2022. Until the beginning of 2024, all estimates of real GDP growth in 2023 were around 4.0% but the latest national accounts of the last two quarters of 2023 showed a marked deceleration in growth. The weaker growth performance was witnessed across the primary, secondary, and tertiary sectors in a context of ongoing fiscal consolidation, higher domestic inflation and multiple sources of fragilities including internal conflicts.

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: Oct 17, 2024

World Bank Engagement in Cameroon

The World Bank’s portfolio in Cameroon comprises 16 national operations financed by the International Development Association (IDA), the Global Environment Facility, and trust funds, with a net commitment of roughly 3.2 billion.

The new Cameroon CPF was adopted in July 2024. It covers the FY2025-2029 period and is aimed at supporting the country’s Vision 2035 of becoming “an emerging country, democratic and united in its diversity”. It lays the foundations for economic transformation to benefit every citizen.

The World Bank is 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.

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: Oct 17, 2024

Boosting Electricity Production

Two projects being financed by the International Bank for Reconstruction and Development (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: Oct 17, 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: Oct 17, 2024