One of the potentially richest countries in sub-Saharan Africa, Cameroon is known mainly as an oil producer, but it also holds rich mineral deposits and has seen a recent revival in the mining sector. Though Cameroon has been developing its extractive industries sector for three decades, the benefits of this wealth for economic and social development remain to be seen.

Cameroon ranked 131 on the UN Human Development Index for 2010 and 30.1 percent of its population lives on less than $2 a day (World Bank, 2007), despite an average GDP per capita of $1,142. With life expectancy at 51 and an adult literacy rate of around 71 percent, indicators for Cameroon are mixed. But the nation of 20 million people continues to lag behind world averages and its own potential by many measures.

Oil production began in 1977 and reached peak daily output of 186,000 barrels per day in 1985 (Société Nationale des Hydrocarbures, SNH). As reserves are depleted, daily output has dropped steadily, reaching around 63,000 barrels in 2009. Despite this decline, oil still accounted for (pdf) nine percent of GDP and 55 percent of export earnings in 2007 (down from 80 percent in 1985) and oil revenues accounted for 26 percent of total government revenues in 2008. At the core of the sector is a public corporation directly controlled by the presidency: the National Hydrocarbons Company (SNH). SNH is the main joint venture associate in all oil production activity as well as transit for the government's share of oil produced. It also acts as the sector regulator. Cameroon also collects receipts from the Chad-Cameroon pipeline, which carries oil extracted in Chad to the Kribi terminal off the Cameroonian coast for export, but these receipts are not currently included in national EITI reports.

Faced with declining oil production, Cameroon launched an extensive exploration project in the late 1990s and issued the first industrial exploration licenses in 2003 to evaluate its mineral potential, and new reserves were estimated to be significant enough to move into production. Licenses have been issued for iron ore, manganese and diamond production, and further exploration is still under way for cobalt, nickel and uranium. Traditionally, the overall contribution of the mining sector has been low and thus yearly figures are not available (in 1997 solid minerals contributed 0.08 percent to GDP). From the EITI reports, we learn that the government reported receiving a total of over $900,000 from mining companies between 2006 and 2008, which is relatively insignificant to the overall budget. The sector's contribution to the economy and to state revenue is expected to increase from 2012 as major projects begin production. The country is also revising its overall mining sector strategy.

The economy is fairly diverse, with strong agricultural output, a robust forestry sector and hydropower production. Annual GDP growth rates have fluctuated between two and four percent over the last decade, with a 2011 predicted growth rate of three percent and GDP nominal value of $26 billion (EIU Cameroon report September 2011). The economy contracted by 27 percent during the eight years from 1986 through 1993, and has been trying to recover (pdf) ever since.

President Paul Biya, who has been in power for 29 years, was re-elected for a new seven-year term in October 2011. His stated ambition is to launch nationwide construction projects and develop key infrastructure. President Biya's government has also said it will address the expansion in the mining sector and the expectations of communities that new revenue streams will help improve general socio-economic development.

Revenue Transparency

Since Cameroon declared its commitment to implementing the EITI (Extractive Industries Transparency Initiative) in 2005, there has been increased access to related information and more openings for public discussions concerning mining and oil revenues. Some sector information is available through company and institutional websites, but this remains limited (SNH). As the 2010 Revenue Watch Index found, with a score of 41.8, Cameroon demonstrates only partial revenue transparency.
 
Cameroon has so far published three EITI reports, covering revenues from 2001 to 2008. Each report has provided progressively more information, as state-owned companies and mining companies were added to the process. They detail different revenue flows, aggregating data by oil and mining company groups, but do not provide information by company. This still leaves many questions unanswered. 

The EITI International Board found during validation that Cameroon needed to improve the quality of its reporting and improve communications surrounding EITI, among other recommended steps. Cameroon was declared "Close to Compliant" in October 2010 and following extensive discussions finally had its candidacy renewed in February 2012. It will seek revalidation in August 2013. The main problems cited were systemic weaknesses which made it difficult to know whether all revenues had been reported upon and whether the data was accurate. Cameroon's EITI reports also do not include the revenues from the Chad-Cameroon pipeline. For more on EITI in Cameroon visit www.eiti.org/cameroon.

The Cameroonian national Publish What You Pay coalition and its members have played a key role in building public EITI awareness at both the national and the local levels. The coalition is also working with media and parliamentarians to increase public awareness. And they are pushing for a law on EITI implementation, since restricted information dissemination limits public oversight and the ability to demand accountability from the government.

The overall lack of transparency and accountability has translated into a failure to make medium- or long-term development plans for the country.

Expenditure Transparency

The national budget is published by the Ministry of Finance after adoption by the parliament. A mid-year update on expenditure and income figures is provided and published in the press, but this offers very little detail. In the Open Budget Survey (pdf) for 2010, Cameroon scored only two points out of a possible 100 and is listed as a country that provides scant information and is weak on legislative budget oversight and state audit institutions.

In the EITI reports, information is provided on transfers from the national oil company (SNH) to the national budget, but it also notes that about 20 percent of profits are direct transfers to specific government departments. Information on expenditure of these funds is not available.

The 2010 revision of the mining code provides for a percentage of mining royalties to be transferred to local councils and communities in the mining districts concerned, however this provision does not include guidance on how the law should be applied nor how the funds should be managed. Local communities and NGOs have renewed their calls for the mining code to be revisited, and for a more participatory process to address these issues. As the mining sector expands, the stakes around management of these mining revenues will only increase.

Contract Transparency

Contracts signed between the Cameroonian government and extractives companies are not readily available in the public domain. Civil society continues to press the government and companies to disclose more information, and make the necessary reforms to reinforce initiatives like the EITI and reveal contracts and other information about the legal frameworks and activities that govern the sector.

Due to changes in U.S. law, companies are required to submit contract and payment information to the U.S. Securities and Exchange Commission for listing purposes. As a result of this, the contracts between Kosmos Energy Ltd. and Cameroon became available on the SEC website. A debate is ongoing as some companies raise a conflict between U.S. law and host nation laws prohibiting publication of contracts and payment data. Cameroon has been referenced in this debate, despite the ongoing EITI process in the country.

Freedom of Information

Cameroon does not have a Freedom of Information act. However, the constitution and some sector-specific national laws do contain provisions on transparency and access to information.  Unfortunately, in practice these provisions are never entirely followed and implementation decrees and transparency norms are usually ignored.

In partnership with Citizens Governance Initiatives, the African Commission's Special Rapporteur on Freedom of Expression and Access to Information in Africa carried out a study from 2007 to 2009 on the policy, legal and institutional frameworks governing the right of access to information. It found that the existing provisions in Cameroon are not put to effective use due to a combination of factors, including lack of awareness by government officials and members of the public alike. Prevailing public attitudes of fear and indifference reinforce (pdf) these factors.

The study recommends using existing legislation to improve access to information in Cameroon, while simultaneously working for legislative reform for urban and rural access to information that accounts for socioeconomic, cultural and other realities. The study also notes the advantages of an all-embracing, general Freedom of Information law, a measure that has been called for by civil society groups.