REPUBLIC OF CAMEROON Peace-Work-Fatherland MINISTRY OF FINANCE 2021 FINANCE LAW REPORT ON THE NATION’S ECONOMIC, SOCIAL AND FINANCIAL SITUATION AND OUTLOOK 2020 FISCAL YEAR Current and previous versions of this report are available in english and french on the following websites : www.minfi.gov.cm www.dgb.cm 2021 FINANCE LAW Table of contents List of tables ...................................................................................................................... v List of graphs .................................................................................................................... vii Boxes .................................................................................................................................. ix CHAPTER 1: OVERVIEW ............................................................................................ 1 1.1. Global Economic Environment .................................................................................. 1 1.2. Recent Trends in Cameroon’s Economy .................................................................... 3 1.2.1 Growth and prices ..................................................................................................... 3 1.2.2 Relations with the rest of the world .......................................................................... 5 1.2.3 Currency and financing of the economy................................................................... 6 1.2.4 Public finances.......................................................................................................... 8 1.2.5 Social sectors ............................................................................................................. 9 1.2.6 Structural and institutional reforms ........................................................................... 11 1.3. Macroeconomic and Budgetary Outlook for the 2020-2023 period ....................... 14 1.3.1 Macroeconomic situation during the 2020-2023 period ............................................. 14 1.3.2 Macroeconomic Outlook for 2021-2023 ................................................................... 15 1.3.3 2021-2023 Budget outlook ...................................................................................... 16 1.3.4 Budgetary constraints and risks for 2021................................................................... 16 CHAPTER 2: PRODUCTION ....................................................................................... 19 2.1 Primary Sector ............................................................................................................. 19 2.1.1 Agriculture ................................................................................................................ 19 2.1.2 Livestock breeding, fishing and fish farming............................................................ 24 2.1.3 Forestry and wildlife subsector ................................................................................. 28 2.1.4 Environment and nature protection ........................................................................... 31 2.1.5 Research and innovation ........................................................................................... 31 2.2 Secondary Sector .......................................................................................................... 32 2.2.1 Manufacturing industries ........................................................................................... 32 2.2.2 Extractive Industries .................................................................................................. 35 2.2.3 Electricity generation and distribution .................................................................... 37 2.2.4 Production and distribution of water and sanitation ............................................... 38 2.2.5 Public works and civil engineering ........................................................................ 38 2.3 Tertiary sector ............................................................................................................ 41 2.3.1 Trade ....................................................................................................................... 42 2.3.2 Tourism .................................................................................................................. 43 2.3.3 Transport ................................................................................................................. 44 2.3.4 Telecommunications ............................................................................................... 47 2.3.5 SMEs, social economy and handicrafts .................................................................. 48 CHAPTER 3: DEMAND, PRICES AND COMPETITIVENESS ............................ 49 3.1 Analysis of demand components ............................................................................... 49 3.1.1 Domestic demand ................................................................................................... 49 REPORT ON THE NATION’S ECONOMIC, SOCIAL AND FINANCIAL SITUATION AND OUTLOOK i MINISTRY OF FINANCE 3.1.2 External demand ..................................................................................................... 51 3.2 Prices ........................................................................................................................ 55 3.2.1 Final household consumer price ............................................................................. 55 3.2.2 Global competitiveness .......................................................................................... 57 CHAPTER 4: FINANCING OF THE ECONOMY ................................................... 59 4.1 Monetary Policy ........................................................................................................ 59 4.1.1 Refinancing policy.................................................................................................. 59 4.2 Money Market Operations ........................................................................................ 60 4.1.2 Interest rate steering policy ..................................................................................... 60 4.2.1 Money market conventional operations ................................................................. 61 4.2.2 Twenty-four hour marginal lending facility ........................................................... 61 4.2.3 Twenty-four hour marginal lending facility ............................................................... 62 4.2.4 Interbank market ....................................................................................................... 62 4.3 Statutory reserves policy .............................................................................................. 62 4.4. Situation monétaire ..................................................................................................... 62 4.4.1 Money supply counterparts ........................................................................................ 63 4.4.2 Money supply ............................................................................................................ 65 4.5 Banking Sector ............................................................................................................ 65 4.5.1 Balance sheet total ..................................................................................................... 66 4.5.2. Customer deposits ................................................................................................ 66 4.5.3 Customer credits ........................................................................................................ 67 4.5.4 Prudential ratios ......................................................................................................... 68 4.5.5 Electronic money ....................................................................................................... 68 4.6. Microfinance.............................................................................................................. 69 4.6.1 Distribution of MFIs by category .............................................................................. 69 4.6.2 Geographic coverage ................................................................................................. 70 4.6.3 Trends in overall balance sheets ............................................................................... 70 4.6.4 Deposits trends .......................................................................................................... 70 4.6.5 Credit trends ............................................................................................................... 71 4.6.6 Performance trends ................................................................................................... 71 4.6.7 Compliance with prudential ratios ............................................................................. 72 4.7 Financial Institutions .................................................................................................... 72 4.8 Insurance ...................................................................................................................... 73 4.9 Stock Market ............................................................................................................... 74 4.9.1 Share market .............................................................................................................. 74 4.9.2 Bond market