BMI View: Cameroon's government intends to keep expenditure on infrastructure elevated despite the pressures it will place on the budget. While this is positive for the construction sector over 2016 , we believe it is unsustainable owing to lower government revenues from commodity exports. In light of this, Cameroon's progress in the use of the PPP model to deliver projects will be important for the sector's long-term outlook.
We note rising risks from lower commodity prices, both to the country's fiscal position and fixed asset investment supporting natural resource extraction. Investment in Cameroon's iron ore resources has been a major driver of infrastructure development. However, with iron ore prices at five-year lows and mining companies cutting capital expenditure, projects could be delayed or cancelled. As such, we forecast growth in the construction sector to moderate over our 10-year forecast period. For 2016 we forecast real growth of 8.9% y-o-y, with average annual growth of 8% over 2015-2024.
Key Trends And Developments
The government plans to issue treasury bills and medium-term bonds worth nearly XAF320bn (USD582mn) in 2015, according to a statement by the finance ministry. The amount, which will be directed to funding infrastructure projects, is up 14% y-o-y, from the XAF280bn (USD509.25mn) debt issued in 2014. In November 2014 the government announced plans to increase spending 13% in 2015, to try boost economic growth. Budgetary projections indicate GDP is likely to reach 6.3% in 2015, compared with 5.8% in 2014, according to Reuters.
Two major port concessions have been awarded, highlighting the attractive PPP market. The 25-year concession for Kribi Container Terminal in Cameroon has been won by a French-Chinese consortium made up of CMA CGM, Bollore and China Harbour Engineering Company (CHEC). A 20-year concession was signed with the Necotrans group in partnership with Multi Kribi Port Operators (KPMO), for the operation...
The Cameroon Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Cameroon Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Cameroonian infrastructure and construction industry.
- Benchmark BMI's independent infrastructure industry forecasts for Cameroon to test other views - a key input for successful budgetary and planning in the Cameroonian infrastructure market.
- Target business opportunities and risks in the Cameroonian infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Cameroon.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.