CAMEROON-CHINA: A Wedding with Uncertain Prospects

•  yaounde
• Thursday, January 12, 2012
• Inter Press Service

'We are inviting Chinese firms to come in numbers and invest in Cameroon in all sectors, especially hydrocarbons, mineral exploitation, and wood extraction.' That invitation was extended by President Paul Biya in January 2007 when Chinese President Hu Jintao paid the first-ever visit by a Chinese president to Cameroon. The Chinese president said on that occasion that Chinese relations with Cameroon and Africa were built on 'sincere friendship, equality, reciprocal benefit and 'win-win cooperation.'

Trade between the two countries leaped to more than 170 million U.S. dollars in 2000, up from only 85 million dollars in 1999. And according to the Chinese leader, by 2006 bilateral trade had climbed to 340 million dollars. Figures from the National Institute of Statistics indicate that prior to 1999, Cameroon’s exports to China were almost negligible, but jumped by more than 170 percent to 123 million dollars in 2000. This represented seven percent of Cameroon’s total exports, up from barely 2.5 percent in 1999.

By the same token, Cameroon’s total imports from China increased by 110 percent between 1999 and 2005. In 2005, imported goods from China - basically cereals, manufactured goods, machinery, transport and equipment - cost Cameroon 144 million dollars, up from just 39 million dollars in 1999. The government says China is a good partner for cooperation, not only because of the much vaunted 'win-win' approach, but also because China, unlike the West, does not impose conditionalities .

Secondly, the Chinese ask very little for contracts, compared to Western companies. For instance, the China Road and Bridge Corporation won a bid to construct a 13 km road in Cameroon’s economic capital Douala for 18 million dollars, beating out rival bidders who were asking for 30 million dollars. And the project was successfully completed one month ahead of schedule.

Meanwhile, many ordinary Cameroonians see cheap Chinese goods as a valid alternative. 'With just 2,000 CFA (about four dollars), I can afford a pair of shoes…the Chinese are helping people like us,' says Christian Njah, a security guard in Yaoundé who draws a monthly salary of about 50,000 CFA (100 dollars). Official figures indicate that 40 percent of Cameroonians live below the poverty line. But not everyone in this West African nation is happy about the Chinese presence. In Cameroon’s North West region, small-scale traders have expressed anger.

'We are not against the Chinese investing in Cameroon, but when they come to compete with us in roasting and selling simple items like corn, plantains and barbecue on the road- side, then there is a big, big problem,' complains Elizabeth Neh, a roast-corn vendor in Bamenda. It is a feeling that sweeps across the community of smaller businesspeople in Cameroon, some of whom have wound up selling the same cheap, Chinese products.

Fondo Sikod, a professor of economics at the University of Yaoundé II at Soa, says 'Chinese goods provide poorer Cameroonians with cheaper access to more goods and services. This is good for the well-being of the people. 'But this is bad in the long term because it destroys local manufacturing capabilities and competitiveness…Besides, there is little or no technological transfer because the Chinese frequently bring along their own labour, with Cameroonians confined to peripheral positions as drivers and sweepers.

© Inter Press Service (2012) — All Rights ReservedOriginal source: Inter Press Service

Where next?

Advertisement