Cameroon Hit by Global Economic Crisis  | Voice of America - English
The World Bank says the global economic crisis is hurting Africa by slowing outside investment, depressing prices for commodity exports and slashing remittances from Africans working abroad. In Cameroon, more than 3,000 people have lost their jobs, and the Chamber of Commerce says another 10,000 are at risk. Cameroon's timber industry has been hardest hit by the global economic slowdown.
Timber exports last year fell by more than 200,000 tons. Raw material exporters of aluminum and rubber have joined timber firms in slashing jobs and scaling back production. President Paul Biya says because the drop in commodity prices are depressing the volume of exports, Cameroon can expect lower tax and customs revenues, which will make it more difficult to pursue ongoing efforts to revive economic growth. Essimi Menye, Cameroon's Finance Minister, "We have a more of less integrated approach to responding to the world financial crisis. That is why we are taking part in this sub-regional meeting which is designed to ensure that all the countries of the subregion see things the same way and react in the same manner to ensure that the economies of the subregion are protected in the same manner," he said. "After all, we are part and parcel of a global economy and by definition a subregional economy. We want to make sure that what is good for Cameroon is good for all the others in the subregion." The Bank of Central African States forecasts last year's 5% growth will drop to 3% this year across the economic zone linking Cameroon with Chad, the Central African Republic, Congo, Gabon, and Equatorial Guinea. The regional bank blames the drop largely on falling prices for raw material exports. That has led officials from the Central African alliance to again call for member states to lessen their dependence on raw materials and diversify their economies with greater investments in agriculture and small-scale enterprise. Because the Central African Franc is linked to the French Treasury, the value of the regional currency has held stable. But alliance officials are warning that as traditional international donors prop up their own economies with tax breaks and corporate bailouts, the amount of money left to help the rest of the world will surely decline.