The technical committee examined the report in Yaounde last Friday July 20

According to Cameroon’s 2011 Balance of Payment report presented for scrutiny by its technical committee last Friday July 20, it emerged that the country continues to sink in its import-export behaviour. The report shows that in 2011, the country’s trade balance (difference between imports and exports) aggravated in its perennial deficit, hitting FCFA 1,076 billion (about 86 per cent). Oil exclusive, the deficit stands at FCFA 1,367 billion far above FCFA 880 billion of 2010. This is explained by heightened importation of machines and other electronic gadgets as well as cereals. “Before, trade balance was positive and balance of service negative. For the past years, all have been negative and the overall performance is negative. The deficit means we spend more than we have foreign earnings. We should produce and export more,” Lazare Bela, Director of Economic Affairs in the Ministry of Finance, said.

Imports

The country, the report shows, imported 13.6 million barrels of crude oil to the tune of FCFA 764.5 billion in 2011 as against 15.2 million barrels for FCFA 607.2 billion in 2010. The importation of machines and other electronic gadgets deepened the country’s trade balance by 34 per cent, moving from FCFA 351 billion in 2010 to FCFA 471 billion in 2011. Other products that drained the State of hard-earned resources included rice wherein 507,388 metric tonnes were imported to the tune of FCFA 135 billion in 2011 as against 366,483 metric tones for FCFA 97 billion in 2010. Fish importation in 2011, by the report, increased by 59 per cent, moving from FCFA 98 billion in 2010 to FCFA 148 billion in 2011.

Exports

Exportation moved from FCFA 1,924 billion in 2010 to FCFA 2,134 billion in 2011, representing an increase of 11 per cent. This resulted from oil sales, crude cotton, rubber and palm oil. Other products that also fetched foreign earnings for the State in 2011 include fresh banana, coffee and cocoa. But what they brought in is far less than what government spent in imports, reason why the trade balance is largely negative.

Direct Foreign Investment

Foreign capital in enterprises here that was either ploughed back into the economy or not distributed to shareholders moved from FCFA17 billion in 2010 to FCFA 223 billion in 2011. Cameroon’s direct investment abroad moved from FCFA 18 billion in 2010 to FCFA 52 billion in 2011 whereas those of foreigners here regressed from FCFA 273 billion in 2010 to FCFA 171 billion in 2011.