Cameroon: Selected Issues

Abstract

CAMEROON INTERNATIONAL MONETARY FUND 29 3. Over the last two decades, Cameroon's economic structure has gradually shifted from being primary and secondary sector-intensive to become largely tertiary based (Figure 2). Cameroon is well-endowed with natural resources with abundant agricultural, mineral and hydrocarbon assets. While the economy remains dependent on primary commodities, the emergence of manufacturing in the 1990s, mainly centered on processing agricultural and petroleum products, contributed to growth and helped diversify economic activity. Over the last 20 years, service sector activity has grown from 45% of GDP to just over 51%, owing to growth in commerce, health and education, and transportation services. 4. The Authorities' development strategy for 2020-2030 (SND30) aims to make Cameroon an emerging market country over 25-30 years. Adopted in January 2020, the SND30 intends to achieve a structural transformation of the economy by making fundamental changes in economic and social structures to promote endogenous, inclusive development, while preserving the potential for future generations. The strategy aims to i) put in place conditions favorable to strong and durable economic growth and implement structural changes essential for the industrialization of the country; ii) improve living conditions and access to basic social services by ensuring a significant reduction in poverty and underemployment; iii) strengthen climate resilience and mitigate the effects of climate change; and iv) improve governance. Quantitative targets include raising the annual growth rate to 8.1 percent on average over 2020-2030, reducing the trade balance deficit to 3 percent of GDP by 2030, decreasing the poverty rate to less than 25 percent by 2030; decreasing underemployment to less than 50 percent by 2030; and raising the Human Capital Index from 0.39 (in 2018) to 0.55 and the Human Development Index to 0.70 in 2030.