Opinion: Cameroon’s economy & the future.

However, persistent structural weaknesses, governance challenges, and external shocks have prevented it from achieving sustained and inclusive economic growth.

In this analysis, we will examine the current state of Cameroon’s economy, the key opportunities that lie ahead, and the urgent reforms required to ensure long-term prosperity. 

The question before us is simple: Will Cameroon seize the opportunity to transform itself into an economic leader in Africa, or will it continue to lag behind due to inefficiencies and missed opportunities?

Current economic landscape: Strengths & structural challenges

Cameroon’s economy is characterised by a combination of strengths and long-standing challenges:

1) Strengths & economic resilience

*Natural resource wealth: Cameroon is endowed with significant oil and gas reserves, vast agricultural land, and minerals, making it a key player in regional trade.

*Strategic geographic position: The country serves as a commercial hub for landlocked neighbors such as Chad and the Central African Republic (CAR).

•Relatively stable financial sector

The banking sector, under the supervision of BEAC (the central bank of the CEMAC region), has shown resilience despite economic headwinds.

2. Key economic challenges

Dependence on oil & revenue volatility

While Cameroon is not as oil-dependent as countries like Gabon or Equatorial Guinea, petroleum exports remain a critical component of government revenue. 

However, fluctuating global oil prices and declining production levels pose risks to fiscal stability.

Rising public debt & fiscal pressures

Cameroon’s public debt-to-GDP ratio has exceeded 45%, driven by heavy infrastructure spending. While investments in roads, ports, and energy projects are necessary for long-term growth, weak revenue collection and inefficient spending have raised concerns about debt sustainability.

Business climate & investment bottlenecks

Despite efforts to improve the investment climate, Cameroon remains one of the most difficult places to do business in Africa, according to the World Bank’s Ease of Doing Business Index. Key challenges include:

•Bureaucratic inefficiencies and high administrative costs.

•Unstable regulatory frameworks that deter foreign investment.

•A slow judicial system that complicates contract enforcement.

Inflation & cost of living pressures

Global economic shocks, supply chain disruptions, and currency pressures have led to rising inflation, affecting the prices of essential goods, fuel, and services. The average Cameroonian household now struggles with higher living costs, while wage growth has remained stagnant.

Large informal economy & unemployment

Over 80% of the workforce operates in the informal sector, which limits tax revenues and reduces access to social security protections. Youth unemployment, particularly among university graduates, remains a ticking time bomb for the economy.

Key growth sectors: Opportunities for economic expansion

While challenges persist, Cameroon has several high-potential growth sectors that, if properly harnessed, could drive economic transformation.

1. Energy & transition beyond oil

•The expansion of hydroelectric projects and renewable energy (solar and wind) presents a major opportunity to reduce power shortages and attract industrial investments.

•Cameroon’s LNG (Liquefied Natural Gas) industry, particularly the Kribi LNG project, could position the country as a major energy exporter in the region.

2. Agriculture & agro-Industrial development

•Cameroon remains a top producer of cocoa, coffee, palm oil, and cotton, yet much of its agricultural output is exported in raw form. 

Developing agro-processing industries could add value, create jobs, and enhance food security.

•Investing in mechanisation, irrigation, and supply chain improvements will be critical for increasing productivity in the sector.

3. Industrialisation & manufacturing

•With rising urbanisation, construction materials and local manufacturing industries can generate employment and reduce reliance on imports.

•Strengthening industrial zones and attracting foreign manufacturers could diversify the economy.

4. Digital economy & financial services

•The rise of fintech, mobile banking, and digital payments is rapidly transforming Cameroon’s financial sector, increasing financial inclusion.

•Developing technology hubs and investing in ICT could position Cameroon as a leader in digital innovation within Central Africa.

5. Regional trade & AfCFTA benefits

•The African Continental Free Trade Area (AfCFTA) provides Cameroon with access to a market of over 1.3 billion people. However, for the country to benefit, it must invest in modernizing trade infrastructure and reducing red tape.

The road ahead: Essential reforms for sustainable growth

1. Governance & institutional reforms

Cameroon must strengthen governance, enhance transparency, and reduce corruption to improve investor confidence. 

This includes: 

•Streamlining administrative processes to make it easier to start and operate businesses. •Strengthening anti-corruption institutions to improve accountability in public spending.

2. Fiscal discipline & smarter debt management

•Debt should be restructured to prioritize high-return investments rather than politically motivated projects.

•Broadening the tax base and improving tax collection efficiency can help reduce reliance on external borrowing.

3. Private sector development & investment climate

•Easing regulatory barriers and ensuring policy consistency will attract both foreign direct investment (FDI) and domestic capital.

•Enhancing access to financing for Small and Medium-sized Enterprises (SMEs) can stimulate entrepreneurship and job creation.

4. Human capital development & youth employment

•Investing in technical and vocational education to align skills with market demands.

•Encouraging entrepreneurship and innovation through startup incubators and funding mechanisms.

5. Infrastructure & energy investment

•Improving transport infrastructure (ports, roads, and railways) is critical for facilitating trade.

•Expanding renewable energy projects can drive industrialization and rural electrification.

Conclusion: 

Cameroon’s defining decade

Cameroon stands at a defining moment in its economic trajectory. The country has the resources, human capital, and market potential to emerge as a leading economy in Africa. 

However, without bold reforms, better governance, and strategic investments, Cameroon risks falling behind in an increasingly competitive global economy.

The choices made today will determine the prosperity of future generations. Policymakers, private sector leaders, and civil society must work together to implement the necessary changes to unlock Cameroon’s full potential.

The future of Cameroon is not just about economic statistics. It is about creating a resilient, inclusive, and dynamic economy that provides real opportunities for its people.

By Mokom Ndi Ndzah: 

Mokom Ndi Ndzah is the Chief Executive Officer, CEO, of Stoneshed Asset Management, a leading investment firm operating in the CEMAC region. With expertise in financial markets, investment advisory, and economic analysis, he is committed to driving financial literacy and economic development in Africa.