Cameroon, rivers of money in loans from China, but 1 in 5 citizens lives on 1.24 euros a day

ROMA – China alone – writes Celine Camoin on Africa Business, the monthly magazine on the continent of the futuredirected by Massimo Zaurrini – holds 64.8% of Cameroon‘s bilateral debt, valued at approximately 2,968 billion Fcfa, equal to 4.5 billion euros, with credits amounting to almost three billion euros. To clarify: the Fcfa is the name of the currency in force in several countries of the former French colonies. According to the economic note made public on 31 October 2024 by the Cassa Autonomo di Amomortamento (CAA) – writes Celine Camoin – this amount is equivalent to 22.4% of the country’s total foreign debt. France is the other main bilateral creditor, with 25.9% of bilateral debt and 8.9% of total foreign debt.

The huge Chinese loans to the African country. Cameroon has taken huge loans from China to finance various projects. This situation gained momentum in the early 2010s, with the launch of important so-called structuring projects. China has financed the construction of hydroelectric dams, bridges, roads and even the deep-water port of Kribi, notably through Export and Import Bank of China (Eximbank China), the Chinese public bank specializing in foreign trade. China is also strengthening its position in the mining sector in Cameroon, where it has been present for several years through Sinosteelthe first mining operator to obtain a permit to exploit iron ore in the country.

The China-Africa Forum in September. During his visit to China for 4th Sino-Africa Cooperation Forum (Focac) Last September, President Paul Biya expressed the need to intensify Chinese investment in Cameroon’s road infrastructure to pursue his emergency vision for the country by 2035.

But poverty and inequalities are still there. While compared to other African countries, Cameroon can boast a certain political and social stability, which has allowed an interesting development in the agriculture, road and railway infrastructure sectors, as well as in the oil and timber industries, the fact remains that a large number of Cameroonians still live in poverty with subsistence farming.

One in 5 Cameroonians lives on 1.24 euros a day. In short, despite the enormous amount of Chinese financial resources, social imbalances remain and, in some ways, are worsening. In fact, it turns out that almost two out of five Cameroonians live below the national poverty line, estimated at 813 Fcfa, or 1.24 euros, per day and per person. There are still, therefore, evident distortions in the mechanism of wealth redistribution.

The marked inequalities. Various reports also point out that poverty is more widespread in rural areas, where the incidence is 56.3%, while urban areas record a much lower incidence, estimated at 21.6%. Above all, the regions of the Far North, North West and East are the poorest, with levels higher than the national average. From the point of view of social disparities linked to consumption, these remain very high, because the 20% of the richest families can afford consumption 10 times higher than that of the 20% of the poorest families.