President Paul Biya has blamed Cameroon’s economic difficulties, marked by inflation and slow economic growth over the past year on external shocks, including the wars in Ukraine and Gaza.
He also stated that climate change, inflation, and oil price fluctuations negatively affected economic growth.
According to him, wars continents away affected Cameroon because the country depends on food and other supplies from there.
However, despite the challenges, he said country’s economic growth is now real.
“Cameroon is regularly praised by the relevant financial bodies for its resilience, despite a particularly difficult international context,” he said in his end-of-year speech.
Growth Increases Despite Challenges
According to Biya, Cameroon made remarkable economic strides in 2024, despite a challenging economic situation.
The country’s economic growth rate in 2024 was estimated at 3.8 percent. There are hopes that it will reach 4.1 percent in 2025.
To further strengthen economic growth, Biya said the government has taken measures to limit speculative behavior and increase the supply of essential goods.
This helped to contain inflation at 5 percent in 2024, down from 7.4 percent in 2023.
“This trend is expected to continue in 2025, to stand at 4%,” he stated.
However, the president’s speech might not tie with the realities on the ground.
Since 2023, prices of goods and services have continued to rise and have not fallen.
The cost of living has kept increasing as well, contrasting the president’s statement on a fall in inflation.
Import Substitution Yielding Fruits
According to President Paul Biya, the import substitution policy the government adopted last year has begun to yield fruits.
By import substitution, Biya meant a situation where Cameroon doesn’t buy from other countries what it is capable of producing.
However, Biya’s attribution of economic difficulties to the wars in Eastern Europe and the Middle East shows Cameroon’s continued reliance on foreign economies.
The country primarily relies on Ukraine and Russia for wheat, building materials, fertilizers and insecticides.
Biya said the country is gradually reversing this trend. He said the country produced 452 tonnes of seeds and 12,800 tonnes of flour in 2024.
But the quantity of local production is grossly insufficient, considering that wheat is a staple in Cameroon.
The President remained hopeful about local industrialization, with the transformation of cocoa and coffee and the processing of iron ore.
