Cameroon Country Profile

Oil and Forestry Sectors

Special Section on the Oil and Forestry Sectors

Despite being the smallest oil producer in Sub-Saharan Africa, and with declining production levels, the oil sector in Cameroon is the third largest sector in terms of GDP. In 2008 the oil sector accounted for 38% of overall state revenue up from 33% in the 2007 fiscal year. Oil has been extracted in Cameroon since 1977 and both its production and exploitation are controlled by the state through the National Hydrocarbon Company (SNH), a state-owned company that guarantees the interests of the state through concessions, apportionment, production and hybrid contracts. The government has shown some will to fight corruption in the management of oil revenues. Cameroon is listed as a candidate country at the Extractive Industries Transparency Initiative (EITI), which obliges governments as well as oil exploring and producing companies to publish their revenues in the extractive sector. Following this, an independent auditor is to confirm that the figures published are in conformity with volumes of production. The auditor's report for Cameroon revealed large discrepancies in the published figures. Despite this, no investigations of those involved in the management of oil revenues have been carried out.

The fourth largest sector in Cameroon is the forestry sector, accounting for 10% of GDP. The sector pertains to the Ministry of Forests and Wildlife which deals with the coordination and oversight of the exploitation, conservation and promotion of forests. A number of initiatives and structures have been created with the purpose of combating mismanagement and corruption in the forestry sector (see the 'Public Anti-Corruption Initiatives' section of the country profile). Yet, the sector continues to be very corrupt, and a November 2004 article in Mutations issue 1289 estimated the losses caused by corruption at nearly USD 217 million annually.