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CEMAC countries: FDI’s are not eternal
Foreign Direct Investments are contributing for about 40% of the gross domestic product (GDP) of the CEMAC countries. In Cameroon, FDI’s are “between 25 and 28% of GDP, against 90% of GDP for countries like Gabon and Equatorial Guinea, within 70% of these FDI’s dedicated to the booming oil sectors, in these last two countries, but with net decrease in Cameroon. From this point of view, the latest report of the Monitoring Committee of the Extractive Industries Transparency Initiative (EITI) reveals that the domestic production declined by 9 million barrels between 2001 and 2008.
FDI’s remained “stable at a level of 35 million dollars per year and per country between 1960 and 1970, and increased gradually with the discovery of oil in Gabon, Congo and Cameroon. This trend has accelerated in the late 90s with the discovery of oil in Equatorial Guinea, making the CEMAC one of the preferred destinations for the FDI’s in the Sub-Saharan Africa. «If the 52 African States, generally, claim 1% of the FDI’s flowing into the world, the six CEMAC countries are taking 0.48% of the global FDI’s, but the CEMAC populations do not see yet any effect of these FDI’s. However some countries of the CEMAC use the benefits of the FDI’s to purchase military equipment. This is the case of Chad, using 60% of its revenues in combating the rebels. Experts and economic analysts, either in the Foreign Direct Investments, as well as in the CEMAC zone are advising the officials of these countries to use the “capital of today to produce the capital of tomorrow” by investing heavily in agriculture, mining , forestry, and tourism. That is the wise way to avoid the economic instability that threatens the CEMAC countries, if ever FDI’s were to tap dry.