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Working Document ECONOMIC OPPORTUNITIES ALONG THE CENTRAL AFRICAN ROAD CORRIDOR Prepared for UNECA April 2021 Economic Opportunities Along the Central African Road Corridor Table of Contents 1. Acknowledgements .................................................................................................................................. 3 2. Abbreviations and Acronyms ................................................................................................................... 4 3. Executive Summary .................................................................................................................................. 6 4. Introduction ............................................................................................................................................. 7 5. Methodology ............................................................................................................................................ 9 6. Data ........................................................................................................................................................ 12 7. Regional Analysis: Central Africa Road Corridor .................................................................................... 14 7.1 Overview.............................................................................................................................................................. 14 7.2 Agriculture ........................................................................................................................................................... 14 7.3 Fishing .................................................................................................................................................................. 16 7.4 Livestock .............................................................................................................................................................. 18 7.5 Renewable Energy .............................................................................................................................................. 20 7.6 Mining .................................................................................................................................................................. 22 7.7 Potential Economic Zones ................................................................................................................................. 26 7.8 Regional Infrastructure ...................................................................................................................................... 30 7.9 Conservation Areas ............................................................................................................................................ 32 7.10 Socioeconomic and Demographic Indicators .................................................................................................. 33 8. National Analysis: Cameroon ................................................................................................................. 38 8.1 Country Overview ............................................................................................................................................... 38 8.2 Biophysical Indicators......................................................................................................................................... 40 8.3 Socioeconomic and Demographic Indicators .................................................................................................. 45 9. Sub-National Analysis: Douala-Edea-Kribi Growth Triangle .................................................................. 50 9.1 Sub-National Overview ...................................................................................................................................... 50 9.2 Biophysical Indicators......................................................................................................................................... 52 9.3 Socioeconomic and Demographic Indicators .................................................................................................. 55 10. Key Recommendations ...................................................................................................................... 59 Page | 2 Economic Opportunities Along the Central African Road Corridor 1. Acknowledgements This report was prepared by Fraym for the Sub-regional Office for Central Africa of the United Nations Economic Commission for Africa (UNECA). The work was directed by Antonio M. A. Pedro, Director of the Sub-regional Office for Central Africa of the UNECA. The principal authors of the report were Marina Tolchinsky, Analytics Team Lead at Fraym, and Geoffrey Tam, Data Analyst at Fraym. This work was funded by the UNECA. UNECA collaborators included Lot Tcheeko, Adama Ekberg Coulibaly, Andre Nonguierma, Jean- Marc Kilolo, Tidjani Chetima, Robert Lisinge, Namegabe Mastaki, and Ahmed Al-Awah. The authors are also grateful for the suggestions and feedback on the analysis provided by participants at the Expert Working Group Meeting on the Reconfiguration of Road Corridors on Central Africa the 8 December 2020. Contributors from Fraym include Krsna Powell, Jonathan Tan, Erica Turner, and Jonathan Kumaresan. Numerous other individuals at Fraym contributed invaluable work in data acquisition, processing, cleaning, and modeling that made the analysis in this report possible. The primary contact for this report from UNECA is Antonio M. A. Pedro. The primary contact from Fraym is Marina Tolchinsky ([email protected]). Page | 3 Economic Opportunities Along the Central African Road Corridor 2. Abbreviations and Acronyms AfCFTA African Continental Free Trade Area AfDB African Development Bank AMA African Medicines Agency AMV Africa Mining Vision AU African Union CEMAC Communauté Economique et Monetaire de l’Afrique Centrale CIESIN The Center for International Earth Science Information Network DRC Democratic Republic of Congo ECA United Nations Economic Commission for Africa ECCAS Economic Community of Central African States EO Earth Observation ESA European Space Agency ESG Environmental, Social, and Corporate Governance FEWS NET Famine Early Warning Systems Network GHSL Global Human Settlement Layer GDP Gross Domestic Product IFAD International Fund for Agricultural Development IRENA International Renewable Energy Agency MODIS Moderate Resolution Imaging Spectroradiometer NASA National Aeronautics and Space Administration NDVI Normalized Difference Vegetation Index NPK Nitrogen-Phosphorus-Potassium NOAA National Oceanic and Atmospheric Association Page | 4 Economic Opportunities Along the Central African Road Corridor PADFA Commodity Value Chain Support Project PIDA Programme for Infrastructure Development in Africa RSME Root Mean Square Error SEDAC Socioeconomic Data and Applications Center SDG Sustainable Development Goal TAH Trans-African Highway Network USGS United States Geological Survey Page | 5 Economic Opportunities Along the Central African Road Corridor 3. Executive Summary As the African Continental Free Trade Area (AfCFTA), becomes operational, it promises to unlock the development of regional value chains. In Central Africa, the transport corridor will serve as a vehicle for economic transformation. This report analyzes the region’s natural resources and the socio-economic and demographic dynamics of populations with the objective of highlighting areas with economic potential that may be suitable for investment in a variety of priority sectors. The identification of potential economic development zones is concentrated on the agri-business, renewable energy, and mining sectors. These interconnected sectors were selected based on their potential contribution to economic and social development, environmental conservation, and regional integration. Agri-business: The Central Africa road corridor is critical to supporting the transformation of the agricultural and livestock sectors by linking farmers to agricultural inputs that can improve productivity and enable them to meet consumer demand for agricultural products. Maize and rice are priority commodities poised to benefit from increased regional trade, particularly in the Extreme North region of Cameroon. Renewable energy: The border area between the Extreme North region of Cameroon and Chad has among the highest potential for wind and solar energy on the African continent. Exploiting this potential can improve the region’s progress towards SDG 7 and stimulate demand for locally sourced metals that can be used in wind turbine construction and renewable energy storage. In addition to increasing energy access for the population, a stable energy supply could also benefit areas of livestock production and processing and enhance the transformation of livestock products. Mining: The global energy sector is undergoing a shift to renewable and sustainable energy sources which has impacted global demand for metals used in rechargeable batteries. Central Africa has abundant deposits of valuable metals used in the production of rechargeable batteries, but limited capacity to process the metals and manufacture the batteries. The region is well suited to develop an integrated regional battery value chain, connecting mining at the base of the supply chain to end-user demand for renewable energy storage and smartphones. National and sub-national analysis: Geospatial data and analysis has the power to guide decision- making and reveal insights that enable
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