Cameroon: Turnover growth for enterprises on a downturn.

Effects attributed to February unrests

By Yemti Harry Ndienla

Cameroon's Ministry of Finance has indicated that enterprise turnover growth rate will witness a slump this year as a direct result of the unrests that swept through the country last February. A note from the Ministry of Finance on the country’s prevailing economic situation indicates that turnover growth for enterprises is on a downturn. The statement confirms the fact that the effect of the unrests are still dealing enterprise activity in the country spiky blows.
At the start of the year, projections indicated that enterprises in the country were to expect a turnover growth rate of about 10.4 percent for 2008. The MINFI note issued recently however reveals that the growth rate may not even kiss the neighborhood of 9.4 percent. Similar trends are expected in various sectors of the economy including the food-processing and other secondary industries.
The report blamed the turnover growth rate slump on the unrests that spanned 24 to 27 February with heightened looting and burning in many companies especially in the country’s economic hub Douala . In fact some companies that were looted or razed by rioters are yet to resume operations. Elsewhere, others have been forced to downsize workforce and wages while more have simply collapsed.
According to the MINFI report, the unrests provoked revenue losses for enterprises to the tune of 30 billion FCFA. The state, it said lost 24 billion FCFA while private enterprises recorded cumulative losses of about 8 billion FCFA. However, observers here say the figure is far down considering that the Chamber of Commerce for example estimated far higher losses after the riots. Also, contested reports in the aftermath of the unrests indicated that the Port Authority of Douala witnessed a daily loss of above 5 billion during the crisis.
The MINFI report notes that only the mobile telephone sector was spared the revenue losses. In fact, it hints that operators in the sector even recorded more earnings as a greater number of people increased their call frequency to obtain information on the unfolding of the unrests in parts of the country.