Sector In Cameroon Research Articles

Illicit Financial Flows and the Petroleum Sector in Cameroon: Hitches and Policy Considerations

Cameroon depends to a large extent on the extraction of petroleum resources for their exports and tax revenue. However, this sector has been prone to generate illicit financial outflows over the years, causing the State to lose billions of dollars to this activity. In 2019, it was estimated that Cameroon lost over 7 billion US dollars which was approximately 4,200 billion XAF to IFFs. The loss was attributed to multinational companies operating in the oil, mining and gas sector in Cameroon. This study therefore aims at examining how the regulatory frameworks in the petroleum sector have been able to curtail the rise of IFFs in this sector. The paper also sheds light on the role of transparency in curtailing illicit financial flows, the catalysts of IFFs, the effects of and the hitches faced in curtailing IFFs in petroleum sector in Cameroon. The study underscores the fact that though the Cameroonian government has made laudable efforts through enactment of laws and putting in place regulatory structures to curtail this activity, lack of transparency, limited State participation in petroleum contractual arrangements, corruption, weak regulatory frameworks, tax evasion, trade mispricing and tax heavens remained the principal hitches to IFFs. Based on these findings, this study recommends strengthening of transparency mechanisms for oil licenses and contract awards, increased in State participation in oil contractual arrangements, citizen’s inclusivity during the negotiation processes and signing of oil contracts, regular publication of oil data and revenue to the public amongst others.

Leveraging social capital for the recovery and regeneration of the ecotourism sector in Cameroon

ABSTRACT This paper examines leveraging social capital to regenerate the ecotourism sector in Cameroon. Using a qualitative approach, in-depth interviews were held with local community leaders, governmental stakeholders, and NGOs. These informants possessed nuanced knowledge of the state of ecotourism in the region, thus constituted integral stakeholders in the ecotourism–community–social capital nexus. The findings of the study indicate that notions of social capital can be leveraged in the traditional hierarchy of communities to influence support for regenerating the sector. This can also address problems affecting the successful (re)development of the sector, stemming from the geopolitical crisis, where levels of trust (associated with social capital) in national authorities may be influenced by traditional authorities, like community leaders. The novelty and theoretical contribution of this paper lie in its unique conceptualisation of regeneration of ecotourism, through the lens of social capital and the nuanced geopolitical situation which contextualises the landscape.

Impact of Mega-Agricultural Projects, Searching the Silver Lining in Cameroon

Purpose: Large-scale projects have created significant positive impacts in different countries around the world. Such impact is less common in Africa and Cameroon's agricultural sector in particular. This study was designed to investigate such impact due to the renewed interest in such projects, whereas, there is a slow rate of development of the agricultural sector in Cameroon.
 Methodology: We examined the experience of actors in the sector and analysed qualitative responses to a survey examining the possible impact of some completed major large-scale projects in Ngoketunjia of the North West Region and the Noun of the Western Region. A total of 45 experts were interviewed and 400 farmers provided answers to survey questions probing ‘silver linings’ they may have experienced from large-scale projects. We analysed these qualitative responses using a thematic analysis approach.
 Findings: Respondents identified a silver lining under two themes social and economic. Socially, skills and knowledge improvement were observed to have improved while access to social facilities (electricity, health, water, schools), as well as integration and interactions amongst villagers, were less visible. Therefore the claim that large-scale agricultural projects led to social impact might be a faulty one as the silver lining in this dimension cannot be directly attributed to such projects. Under the economic domain silver lining was observed in access to employable opportunities, market, and finance access as well as value added to raw materials. However, no silver lining was observed in income-generating activities and production volume increments.
 Unique Contribution to Theory, Practice, and Policy: Major impact disruptions were linked to project design and delays that affected the budget, supply shortages, and efficiency. To create the desired impact, we recommend that, large-scale projects should proactively focus on impact-driven project components as well as reschedule activities to minimize delays, penalties, and cost overruns.

Significance of Transformational Leadership on Project Portfolio Success within the Micro Financial Sector in Cameroon

Purpose: This research investigates the effect of transformational leadership on project portfolio success in the micro-financial sector in Cameroon. Method: A quantitative research approach was used for this study. Data were collected from 205 managers of Microfinance institutions in Cameroon and analyzed with the help of the SPSS, version 25. AMOS 23 was used to conduct Confirmatory Factor Analyses to examine convergent and discriminant validity. Results: The result showed that less than 60% of current microfinance institutions have adopted key aspects of transformational leadership (idealized influence; intellectual stimulation; inspirational motivation; and individualized consideration). It was observed that transformational leadership has a significant and positive effect on project portfolio success. The effect of such leadership is mediated by team building practices and teamwork quality. Implication: Transformational leadership is not well recognized in the micro-financial sector of Cameroon irrespective of its effect on project portfolio success. Microfinance institution managers should adopt and apply such leadership for higher performance of their project portfolios.

Internal parasitic helminth infecting reared fishes from the West Region of Cameroon: Epidemiological profile and effects on fish health

Intensification of the fish farming sector in Cameroon can result to reduction of profitability and public health concerns due to emergence of parasites amongst which zoonotic ones. Unfortunately, limited and outdated data are available on internal parasites of reared fish as well as their impact on the infected fish. A total of 2254 live fish samples of males and females were randomly obtained made up of Clarias gariepinus (692), Cyprinus carpio (593) and Oreochromis niloticus (969). The skin, the gastrointestinal tract of the fish was examined for the presence of parasite, using standard procedures. An overall prevalence of 8.47% coupled with a very low intensity was assessed. This study revealed a diverse parasitic fauna made up of Acanthocephala sp. (4.84%), Cappilaria sp. (1.91%), Eustrongylides sp. (1.06%), Camallanus sp. (1.2%) and Orientatractis sp. (0.34%). Meanwhile, intensities mean values were higher in Cappilaria sp. followed by Eustrongyloides sp., Camallanus sp. and finally Acanthocephalus sp. Prevalence of internal parasites was higher in Cyprinus carpio (8.77%). Clarias Gariepinus on the other hand, had a higher intensity. Fish were mostly infected during the dry season. Nevertheless, a high parasitic load was observed in the rainy season. Specimens collected in the earthen ponds show a higher prevalence (p < 0.05), while those in concrete ponds had a higher infection intensity. Females were more prevalent contrary to males which have a higher intensity. Parasites were identified from the body cavities and gastrointestinal tracts of fishes. Comparison of Length/Weight relationship and Fulton condition index K does not show any differences between the parasitized and non-parasitized specimens. Parasites with a zoonotic potential were detected in this study, highlighting the importance of intensifying biosecurity and parasite control measures in fish farms in West Cameroon.

Forecasting Lending Interest Rates of Commercial Banks in Cameroon with Autoregressive Integrated Moving Average (ARIMA) Model.

Purpose: Lending Interest rate prediction is one of the most relevant aspects in the banking sector and a country’s economy. Lending is an important variable within this sector since economic and market conditions vary over time. Efficient methods are needed to describe the trends and characteristics of lending interest rate. The performance of different time series models for analysis of lending interest rates of commercial banks in Cameroon is provided to determine the feasibility of method for the generation of results in the wake of economic decisions.
 Methodology: Historical time series of lending interest rates in the banking sector in Cameroon were analysed for the period 1972 to 2023. The Box-Jenkins methodology was used to analyse the time Series data.
 Findings: It was revealed that 76.75% of the variation in Lending interest rates in Cameroon is accounted for by the lending interest rates for the past 52 years, the inflation rate for the past 52 years and the GDP for the last 52 years. Therefore, an increase in lending interest rates 52 years ago by one unit will increase lending interest rates today by 0.808 units. Similarly, an in increase in inflation by one unit will reduce lending interest rates by 0.002 units. In addition, an increase in GDP by one unit will reduce lending interest rates by 0.000001 unit. The ARIMAX (1,1,4) demonstrated to be more robust. Therefore, lending interest rates in Cameroon will reduce with time as from the year 2023 to 2027 and above. Investors are encouraged to borrow from the banks and invest within this time frame.
 Unique Contribution to Theory Practice and Policy: Long and varying lags of interest rates separate the effects of monetary policy from the economy and has caused a lot of unemployment in any society. The degree to which interest rates rise has pulled down the economy is alarming. This can be seen in businesses, economic projections, and spending. More businesses report that interest rates have reduced their capital and non-capital spending expectations compared to 2022. A further indication that the impact of higher interest rates has yet to be fully felt is evidence that keeping the existing policy course will limit the spending activity of more enterprises. Monetary policy has surpassed all other concerns for finance executives in the past quarter. Survey participants mentioned interest rates in their decision to cut spending. The study provides a unique way of comparing results of interest rates using a traditional time series model to a typical Interest rate model.BEAC should chose an accommodating monetary policy centred on decreasing the already high interest rate and injecting cash into CEMAC savings in response to the economic shock currently existing in Cameroon.

The potential of green hydrogen fuel as an alternative in Cameroon's road transport sector

The objective of this paper is to evaluate and assess the potential of green hydrogen (H2) as a substitute fuel for Cameroon's road transportation system. To achieve this objective, we start by providing a status quo of Cameroon's road transport. Then, we conduct an empirical analysis on the potential of H2 as a fuel for vehicles. Based on photovoltaic electrolysis, we estimate the amount of H2 needed to fuel vehicles with the associated costs as well as the quantity of carbon emissions that could be reduced in the event of an energy switch over the period 2020–2035. Finally, techno-economic indicators are used to assess the cost-effectiveness of an H2 vehicle in comparison to a petrol car. Results reveal that if a transition were to take place before 2035 the Cameroonian road transport sector would need between 1.75 MT and 2.5 MT of H2 fuel per year. With this transition, Cameroon could reduce its emissions by around 26% (or 429 megatons of CO2 equivalent). Hydrogen-fuelled vehicles offer the greatest potential for initiating this transition with the current level of technology. Indeed, starting from an investment cost for PV of 0.42 USD/Wp, H2 in a hydrogen-fuelled vehicle can be cost-effective compared with petrol in an internal combustion engine with a PV efficiency of 40%. Therefore, a hydrogen fuel-based transport sector could emerge through technological and production advances. This study contributes to solving the problems related to fossil fuel availability and greenhouse gas emissions arising from the expansion of the road transport sector in Cameroon, envisaging H2 as an alternative fuel.

Causality between residential electricity consumption and explanatory factors

This research adds to the assessment of the causal relationships between residential electricity consumption and its explanatory factors. Johansen cointegration, autoregressive distributed lag model, the vector error correction model, and Wald causality tests are used. In both the short and long run, a unidirectional causality towards electricity consumption is identified. The sustainable development of the electricity sector in Cameroon, as defined by the national development strategy for 2030 and the long-term electricity sector development plan for 2030, requires an increase in GDP per capita, the adoption of a compact less energy-intensive urban model, the strengthening of control over the evolution of the number of subscribers on the distribution networks, and the reduction of CO2 emissions from thermal electricity generation.

Protection sociale des travailleurs du secteur informel au Cameroun : une analyse de la demande

L’objectif de cet article est d’examiner la souscription des entrepreneurs du secteur informel au système public de protection sociale au Cameroun. L’analyse porte sur un échantillon de 4598 promoteurs d’unités de production informelle (UPI), issu de la 2nde phase de la deuxième enquête sur l’emploi et le secteur informel au Cameroun (INS, 2010). En s’inspirant de la revue de la littérature économique, les résultats économétriques obtenus à l'aide de l’estimation d’un modèle probit avec biais de sélection révèlent que les entrepreneurs du secteur informel seront moins enclins à adhérer à un système public de protection sociale offrant les prestations sociales ci-après: l’assurance vieillesse, l’assurance invalidité, l’allocation familiale et l’allocation maladie professionnelle.

Social obligations in the logging sector in Cameroon, Ghana, Liberia and Republic of Congo

This paper offers a critical review of the social obligations (revenue redistribution, direct payments, payments in kind, and access to justice or compensation) of logging concessionaires to affected communities in Cameroon, Ghana, Liberia and Republic of Congo. The research draws on a full desk-review of relevant legal texts, and consultation with leading non-governmental organisations working in the forest sector in the four countries. It appears that the legal foundation of social obligations is mainly shaped by national context, and therefore important differences can be observed across countries. However, they are complex, incomplete and precarious, providing opportunities for elite capture, and communities – and the State – not reaping the benefits they are owed by law. A key conclusion is that legality-licensing schemes such as under a Voluntary Partnership Agreement (VPA) with the European Union (EU) tend to downplay social obligations compared to other aspects of legal compliance.

Exploring the Optimistic Approaches and Directives of Cameroon’s Textile Sector for Reliable Development

Cameroon is one of the largest producers of cotton in Central Africa. Currently, Cameroon’s textile sector is facing problems regarding manufacturing that restrict the expectations of various shareholders in the sector. This study examined accurate and strategically reliable instructions for the Cameroonian textile sector by utilizing explorative and depictive techniques and properly applying the SWOT (strengths, weaknesses, opportunities, and threats) and AHP (analytic hierarchy process) approaches to perform a pivotal analysis after several surveys of the textile sector in Cameroon. The SWOT–AHP strategy was used in the case of secondary data sources. The resulting analysis underlines the strategic challenges and enhances the textile sector’s competing capability. The weakness and opportunity (WO) strategy broadly had the greatest significance, which indicated, correspondingly, that this strategy should be prioritized for use in the Cameroonian textile sector. Governmental authorities should serve a controlling function rather than a decision-making one, thus facilitating improvements in the management of businesses. Furthermore, it suggested that efforts must be made by the government to promote workforce education and skill development, as well as update obsolete technology, which are currently the deficiencies of the textile sector. Additionally, to add value to the national economy’s capacity, Cameroon should slowly transform its cotton exports to finished textile goods within the country. To achieve this, the government, through a framework of collaboration with foreign companies, should industrialize, deregulate, and denationalize the textile industry and reduce taxes and withdrawal quotas to serve the interests of investors.

Do cocoa certification schemes improve producers' performance ? Evidence from Centre Region Cameroon

In agricultural value chains, in particular cocoa, environmental, and social standards are becoming increasingly important in meeting sustainability challenges. The main aim of this article is to examine the role of certification primarily on the yields and incomes of cocoa farmers in the Central Cameroon region. From June to July 2017, a survey of certified and non-certified cocoa producers was conducted in the districts of Ngoumou and Mbangassina. At the end of the survey, a total sample of 114 certified and non-certified producers was obtained. Using the cost-benefit analysis, in this preliminary phase of the certification process, the results show that there is no significant difference in costs between certified and non-certified producers for each of the districts. There is also no price difference between certified and non-certified cocoa and the payment of the certification premium is not systematically distributed. However, the profit analysis shows on average significantly higher yields and profits for certified producers. Nevertheless, this increase in profits would mainly be due to the implementation of good agricultural practices rather than the certification itself. Additionally, the exploration of on farm income shows that cocoa-based households remain on average below the poverty line. One of the long-term challenges for the cocoa sector in Cameroon is to combine the government's objective of increasing production with that of improving quality. To this end, the advantages of the predominantly agroforestry systems present in Cameroon should be exploited to produce a critical mass of quality and sustainable cocoa that would allow a significant increase in producer prices.

Cameroon’s Rice Sector Faced with Import Dependency

Rice is a staple food for the Cameroonian population and is the most consumed cereal after maize. The SNDR (National Rice Development Strategy) document shows that despite the scale of investment to absorb domestic demand for rice, Cameroonian production has only been able to satisfy domestic demand to the tune of 20%. The question is therefore to understand the constraints that prevent the development of local rice production to the level of national need. To obtain results, quantitative and qualitative data from secondary sources were used. The rice sector in Cameroon is managed by the state through the Ministry of Agriculture and Rural Development (MINADER). MINADER designs development policies and strategies and coordinates the development of activities in the field. The state implements its policies and strategies through the projects and supervisory structures under its supervision. The sector is organized from the supervisory authority to the consumer. Each actor who intervenes has very specific missions that are transformed into effective activities in the field. The tracing of the evolution of rice production in Cameroon, from the year 2000 to 2018, shows three phases of evolution. The first phase, from 2000 to 2008, can be described as a recovery phase, with a growth rate of 44.84%, at the rate of 5.6% growth per year. The second phase can be described as the take-off phase, which runs from 2008 to 2016 when production peaked. The growth rate during this period was 79.96% at a rate of 10% growth per year. After the take-off phase, there is a decline between 2016 and 2018 at a rate of −12.7%, at a rate of −6.35% per year. It can be seen that the increase in production is evolving at the same rate as the increase in cultivated areas. However, the level of rice production in Cameroon does not essentially depend on the cultivated areas. This suggests that the increase in rice production in Cameroon also depends on the level of local farm yields. The State should, therefore, in addition to the increase in cultivated areas, accentuate its actions in the direction of increasing the yields of local producers.

An assessment of the challenges and opportunities in financing rural women entrepreneurship in the micro, small and medium enterprises sector in cameroon

Fundamentally, women are one of the major drivers of social and economic growth through entrepreneurship development. Their role in impacting rural entrepreneurial activities by boosting rural employment and capital are praiseworthy. Women entrepreneurs are financial assets for development. For any developing country to emerge, its rural development countryside through entrepreneurship have to be efficient in resources allocation. The dangers to achieving this at the - post-Covid-19 era are enormous considering existing rural business financing challenges. Digital financial transformation could resolve these barriers. Using a qualitative research approach,this study examines the challenges and opportunities in financing rural women businesses. It comments that, financial digitalization, banking proximity, financial inclusion, financial care services and government support system can enhance rural women entrepreneurial productivity and reduce the level of poverty.

FOREIGN DIRECT INVESTMENT AND ENVIRONMENTAL SUSTAINABILITY OF AGRICULTURAL HOLDINGS IN CAMEROON

This paper aims to assess the effects of agricultural Foreign Direct Investments (FDI) on the sustainable development of agricultural holdings in Cameroon. The data used are secondary data from the World Bank, the WGI, and the INS, namely the Balance of Payment of Cameroon (BP). The study period is from 1977 to 2018. An environmental performance index measures environmental sustainability. In addition, we use the Co-integration model of Engle and Granger for the case of time series as a methodological tool for secondary data. The estimation results of the model show that environmental pollution evolves according to the entry of FDI in the agricultural sector in Cameroon. Thus, the pollution haven hypothesis is verified in Cameroon. Therefore, we propose that the negative impacts of FDI on the sustainable development of agricultural holdings in Cameroon be seriously controlled.

Constraints to formal small business performance in the service sector in Cameroon

PurposeThis study aims to investigate whether social capital mediates the impact of financial capital on business performance in Cameroon.Design/methodology/approachThe study uses quantitative data collected from 370 small businesses in Yaoundé and Douala in Cameroon. All businesses in the sample are formally registered and are in the services sector. A structural equation modelling (SEM) approach is used for the analysis.FindingsStructural and relational capital constraints are significant mediators of formal and informal finance. The magnitude effects of relational capital are the largest, underlining information's importance in resolving small and medium enterprises’ (SMEs') financial constraints. In addition, the effect of informal finance constraints on business performance is larger in magnitude, confirming the substantial impact of informal finance on SME operations.Research limitations/implicationsThe paper confirms that relational and structural social capital are vital in business. However, the study did not investigate the disaggregated effects of these dimensions of social capital. Furthermore, how SMEs transition between formal and informal finance could provide further understanding of the role of social capital. A disaggregated and panel data set would help to provide additional insights.Practical implicationsSocial capital emerges as a pivotal factor in enhancing SME access to finance. The results, therefore, confirm the relevance of a holistic approach to easing financial capital constraints for SMEs and enabling small businesses to connect more to various stakeholders to amplify business performance. In addition, the findings identified some intervention points for the governments in Cameroon as it seeks to use SMEs as its pivot for development and to catapult itself to emerging economy status in its Cameroon 2035 vision.Originality/valueThe value of the study lies in assessing the mediating effect of cognitive, relational and structural social capital constraints on business performance and comparing the effect of formal and informal financial constraints on business performance.

An Overview of Electricity in Cameroon: Current Status, Influential Factors and Government Actions

The mastery of demand for electricity in Cameroon is one of the concerns of the State, which is part of the development plan for the electricity sector by 2025. Thus, this paper identifies the factors that influence the electricity sector and mentions positive government actions. We use in this work data on the basis of previous work on one hand and a survey on the other hand in order to reinforce the analysis. The survey was conducted on a sample of 3,000 households in Douala in order to identify socio-economic factors that influence the electricity sector. For this, face-to-face approach was chosen. Households were randomly selected, then a questionnaire was submitted to them, assisting them in their response options. Results show that though certain factors have a positive influence on the electricity sector, Cameroon's current electricity system still remains unsustainable. A comprehensive view of how various factors influence the electricity sector in Cameroon would help in understanding the challenges for the future development of the sector. Government policies in this area would be more enlightened and undergo reorganization. Different models of electricity consumption could thus be formulated and adopted in order to predict the potential impacts of changes in planning.

Financial inclusion and gender income inequalities in informal entrepreneurship: the case of Cameroon

The purpose of this study is to analyze the effect of access to different financial products in reducing income inequalities between men and women working in the informal sector in Cameroon. To this end, we use the World Bank database World Bank Global Financial Inclusion (Global Findex) dataset 2018 to assess the evolution of access to financial services through a descriptive analysis and the fourth Cameroonian survey conducted by the National Institute of Statistics in 2014 to estimate a probit model and a Fairlie decomposition model. Empirical results suggest that indeed, income inequality between the sexes continues to increase in Cameroon, regardless of the indicator used to measure it. In particular, women working in the informal sector use services such as bank accounts and credit cards more than men, but women also use non-formal financial services the most. Among the inclusion factors of the actors involved, obtaining credit to start a business is a key element for an individual working in the informal sector, yet there are significant gaps in accessing credit between men and women in informal activities and gender inequalities explain 13.96% of this gap. This means that when it comes to accessing credit, men are more financially included than women. These results lead us to make recommendations on economic policies to improve access to credit and expand the use of mobile financial services among women working in the informal sector to reduce income inequality between the sexes in Cameroon.

Analysing Mismatches in the Demand and Supply of Classrooms in the Basic and Secondary Education Sectors in Cameroon

The present work analyzed the contribution of Cameroon’s public contracts and territorial planning policies toward the reduction of classroom disparities across the country. Many localities in Cameroon suffer due to misallocation of classrooms on one hand and inefficient public contracting-execution system on the other hand. This paper uses a hypothetico-deductive method to understand the nexus of public contracting-territorial planning within the educational sector in Cameroon. To do this we made use of existing infrastructural data collected from various Ministerial Departments and public contracts data from 2016 to 2022. Findings show that there is a great disparity of existing classrooms, injustice in the allocation of classrooms and bad governance practices in the award and execution of allocated classrooms that directly contribute to this uneven repartition. At the national scale, the Centre and Littoral regions seem to be saturated with about 20,574 and 10,436 classrooms respectively, the Far North which is part of the Priority Education Zone is in dying need of about 11,293 classrooms while on the local or regional scale these two saturated regions show some degree of insufficiency in term of available classrooms. Therefore, much needs to be done by the Cameroonian authorities in order to ensure inclusive, equitable quality education and promote lifelong learning opportunities for all as stipulated by the Sustainable Development Goal 4.

INFORMAL BUSINESS TOURISM IN CAMEROON

The uniqueness of business tourism in the African context is argued to be an amalgam of several clusters of activities manifested in both the formal and informal sectors. In this study, business tourism in the global south, with a specific focus on the informal sector in Cameroon is analysed. Using data that was collected from a series of semi-structured interviews conducted with three hundred and seventy-seven business travellers, the study reveals that informal business tourism includes domestic business travellers classified into five distinctive categories: (1) informal salespeople (2) shopowners (3) herdsmen (4) local farmers and (5) wholesalers. The study concludes that informal business tourism represents an important sector that contributes to tourism development and if well harnessed, its multiplier effect could be widespread amongst the different economic sectors of Cameroon.