Christopher Jator Njechu
23 November 2008
An FCFA 1.6 billion project executed between Cameroon and the European Union, EU, will soon enable the country to export finished products to the First World.The project will spur more local transformation of raw materials and agricultural products into finished products.
The programme, which is already underway in Yaounde, was launched Tuesday, November 11.The programme is the fruits of the existing cooperation between Cameroon and EU.
Under the stewardship of the United Nations Industrial Development Organisation, UNIDO, the project will receive some FCFA 1.66 billion from UNIDO to help in the effective realisation of the project.
The role of UNIDO in the programme is to help build the required technical expertise; mobilise knowledge and technology to ensure successful implementation of the project.
More industries will be set and existing ones modernised with the assistance of the EU.
The goal is to effect rapid industrialisation in the Central African sub-region, with the exception of the Democratic Republic of Congo, DRC, Sao Tome and Principe.
This is in line with preparations ahead of the effective take-off of the free trade zone in the sub-region.
According to arrangements, the EU is committed to improve on the standard and quality of goods produced, which must suit international norms before exportation.EU countries will import to the sub-region under the arrangement tax-free.This makes UNIDO a useful partner since it is charged with building the skills of technicians to work in the industries.
The Deputy Director General of UNIDO, Yoshiteru Uramoto, while launching the pilot phase of the project, said it is important to go beyond trade in commodities by adding value to local produce and resources.
"Economic diversification is imperative and industrial development constitutes a viable avenue for local development," he said.
Why Cameroon Must Industrialise
In the early 1980s, Cameroon was still characterised by a fairly small industrial base, quite abundant natural resources and exports concentrated on a limited number of products, chiefly primary commodities.
The situation has not evolved as manufacturing has remained as small at four percent in 1980 and seven percent in 2002.The top five export products were crude oil, semi-processed wood, coffee, raw cocoa beans and fresh bananas, which still make up more than 80 percent of Cameroonian exports, and there has been virtually no progress in export diversification.
Production of capital goods like iron and steel, non-ferrous metals, metal products has diminished considerably over the last three decades, from 24 -8 percent. Figures still show that Cameroon's technological know-how is still low. Between 1970 and 2000 her industrial production moved from 66 to 63 percent with simple activities producing consumer goods such as foods, beverages, cigarettes, textiles, clothing and footwear.
Revenues from export of the goods were higher in 1980 but were of little help with the drop in commodity prices.Originally, a significant improvement in trade caused an increase in investment, but due to poor quality its productivity declined.
According to a UNIDO report, Cameroon shows the most disappointing results, with an average annual fall in productivity of 3.1. The agro-food industry, however, was most affected by the economic crisis but record performances achieved during the boom years in the early 1980s partly offset the losses.
In technical skills, Cameroon is in the 64th position out of the 73 countries. Newly industrialised countries of Asia show a percentage enrolment in technical subjects, 33 times greater than the sub-Saharan countries.
The top three countries in terms of total numbers of students enrolled in technical subjects include China, India and Korea.In addition, the weak manufacturing activity is due to the weakness of local demand, in particular for durables, subdued by the high level of interest rates and domestic industrial skills.
To recover from the economic quagmire, the reports states, the country will have to open up to external trade, foster an investment-friendly economy, while skilled labour ought to be available to enhance competitiveness.
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