Cooperation between Cameroon and the OIC in the economic and financial field has been developed through instruments such as the General Agreement on Economic, Technical and Commercial Cooperation signed and ratified in 1978; the Agreement on Promotion, Protection and Guarantee of Investments signed and ratified in 1995; the Framework Agreement on Trade Preferential System among Member States, etc.

 

From 2004 to 2006, Cameroon actively participated in negotiations aimed at establishing a system of trade and trade preferences between OIC Member States. These negotiations resulted in two legal instruments: the Preferential Tariff Scheme Memorandum of Understanding (PRETAS) and the Agreement on the Rules of Origin of Products. Pending the ratifications required for the entry into force of the Agreement on Rules of Origin for Products and consequently the operationalisation of the above-mentioned System of Preferences, PRETAS entered into force in 2010. On 28 April 2015, the President of the Republic, H.E. Paul BIYA, signed decree No. 2015/209 to ratify the PRETAS.

 

Today, several institutions play a major role in developing and strengthening economic cooperation with the OIC. These include :

• the Islamic Development Bank (IDB);
• the Islamic Chamber of Commerce and Industry (ICCI);
• islamic Center for Development of Trade (ICDT);
• the Islamic Corporation for the Insurance of Export Credit and Guarantee of Investments;
• the Standing Committee for Economic and Commercial Cooperation (COMCEC) among Member States, etc.

At the national level, the OIC has contributed to the financing of several development projects. The IDB’s role is particularly appreciated by Cameroon’s public authorities. In fact, the very first project financed by this Bank, just after it became operational in 1975, was a Cameroonian project, namely the construction of the Song-loulou hydroelectric dam for an amount of 7 million US dollars (agreement signed on 1 March 1977 and entered into force on 24 July 1977).

 

The IDB provides loans, technical assistance and private sector financing.

Concessional loans generally granted for a repayment period of 20 years with 10 years of deferral, and an administrative charge of 0.75%.

 

Non-concessional loans when it comes to financing large-scale projects, the conditions attached to this loan are: a repayment period of 15 years with 5 years of deferral and an administrative charge of 5%.

 

Technical assistance which consists of the Bank providing technical know-how and/or resources to assist in the development or implementation of policies or projects, or to assist in the capacity building of institutions, organizations, human resources responsible for implementing these policies or projects.

 

Several other projects were carried out thanks to financial support from the IDB, including :

• CELLUCAM, for an amount of 10.630 million US dollars (Agreement signed on 3 March 1978 and entered into force on 9 April 1978);
• the village water supply project through 400 boreholes, for an amount of 5 million US dollars (agreement signed on 27 August 1984 and entered into force on 23 April 1985);
• the Douala-Yaounde road for an amount of 6 million US dollars, (agreement signed on 1 December 1981 and entered into force on 29 January 1984);
• equipment for the Kousseri hospital, in the amount of 1.2 million US dollars (agreement signed on 16 June 1980 and entered into force on 18 June 1980);
• the Menchum integrated rural development project and the Extreme North rural development project, for amounts of US$3.930 million and US$0.3 million respectively (agreement signed on 27 June 1986 and entered into force on 29 August 1987);
• he SCAN project at Foumbot Tomates for US$2.34 million (agreement signed and entered into force on 21 November 1988);
• an inventory of forestry resources for US$1.1 million (agreement signed on 25 July 1984 and entered into force on 25 October 1984);
• the construction of two schools in Kousséri and 48 schools in border areas, as well as their equipment, at a cost of US$0.288 million and US$9.075 million respectively;
• feasibility studies for the Foumban-Tibati road and the Chari-Logone project, for amounts of US$0.7 million and US$0.165590 million respectively;
• an SNI credit line of USD 6.5 million;
• the Mokolo-Mora water supply project, worth US$8 million;
• the US$5 million project to store cereals and rehabilitate the Office cerealier.

The economic crisis that hit our country at the end of the 1980s resulted in a timidity in our cooperation with this financial institution, particularly during the 1990s. However, our country’s compliance with our debt repayment schedules has led the majority of our OIC partners to decide to unfreeze financing for ongoing projects, and also to show renewed interest in our country by identifying and financing new projects, in particular:

• the construction of the Ayos Bonis road in the Eastern Region, worth 10.8 million US dollars (agreement signed in 2003 and entered into force in 2005) ;
• the construction of the Limbé shipyard for CFAF 15.373 billion (agreement signed on 08 September 2004) ;
• partial financing of the Foumban-Tibati road for US$9.63 million (agreement signed on 11 October 2005) ;
• Rural electrification of 33 localities in 4 provinces for a total of 9.49 million US dollars (agreement signed on 08 May 2006) ;
• the development project of Mount Mbappit for an amount of 9.63 million US dollars (Agreement signed on February 6, 2006) ;
• the basic education support project, worth around US$10 million (agreement signed in December 2006) ;
• Sangmélima-Ouesso road (Sangmélima-Djoum section), 45.063 million euros and 7.864 million euros (date of signature: 18 January 2010 Declaration of entry into force, as of 29 March 2010), etc.

In addition, several projects have been identified following the mission carried out by the IDB Vice-President in our country from 07 to 15 April 2004 :

• the project to build a dam on the Kadéï river ;
• the construction of a dam at Lom Pangar ;
• the rehabilitation of 1,000 km of tracks, etc.

Seven (07) financing projects in the cotton sector, with an estimated value of over thirty (30) million euros, were submitted by our country and approved at the 2nd and 3rd meetings of the OIC Cotton Project Committee held on 11 May 2009 and 27 September 2010 in Izmir (Turkey) and Casablanca (Morocco) respectively. The OIC General Secretariat has launched a search for funding in this area.

 

A rail link project linking West Africa to East Africa, in particular Dakar (Senegal) to the port of Sudan and Djibouti, via Central Africa (in particular Cameroon and Chad), is currently under study. Cameroon is a member of the Committee of countries involved in this project. As requested by the Prime Minister, Head of Government (Cf. letter no. A386/b/SG/PM dated 17 August 2009), the Ngaoundéré – Garoua – Ndjamena route has been proposed for the Cameroon section of this OIC project. At present, the feasibility of the project and the question of its financing are being examined by the OIC General Secretariat and the IDB.

 

At its 17th meeting held in Istanbul (Turkey) on 4 October 2010, the COMCEC requested the OIC General Secretariat to examine the proposal made by the IDB to incorporate this project into the Dakar – Djibouti Railway Project sponsored by the African Development Bank.

 

The IDB’s operations in Cameroon are mainly focused on financing public and semi-public sector projects. To date, the Bank’s portfolio of projects in Cameroon shows a total of 82 operations (including 3 special assistance operations) amounting to 1065 million US dollars, or 585.750 billion CFA francs (with 1$=550 FCFA), , 38 operations amounting to 185 million dollars have been completed and 40 operations amounting to 878.16 million US dollars, or 482.988 billion CFA francs.

 

The breakdown of approvals by sector is as follows: Transport: 45%; Agriculture: 25%; Social Services: 18.4%; Energy: 5%; Water, Sewerage and Urban Services: 5.3%; Industry and Mining: 1.2%; Finance: 0,1%. Total disbursements for the active portfolio amounted to US$35.3 million, representing 4% of approvals.

 

In 2017, Cameroon ratified the US$10.76 million (approximately CFAF 5.380 billion) Temperamental Sale Agreement signed on 27 December 2016 with the IDB to finance the Maternal, Newborn and Child Health Support Project (Decree No. 2017/367 of 12 July 2017).

 

Financially, Cameroon contributes, like other States, to the functioning and institutional life of the OIC through the payment of statutory contributions. In addition to its subscriptions, Cameroon has often shown its support, in the form of donations, to certain institutions and programmes of the Organisation such as the Islamic Solidarity Fund (200,000 US dollars in 1979), the Islamic Foundation for Science, Technology and Development (100,000 US dollars), the Special Programme for the Development of Africa (PSDA), 1 billion FCFA

 

Cameroon also responded to the solidarity appeal launched by the OIC in August 2010 to all member states to provide aid to Pakistan, which has been hit by severe flooding. A budget of twenty-five (25) million CFA francs has been released for this purpose. On the instructions of the President of the Republic, a sum of fifty (50) million euros was also recently released to help Mali in the face of terrorist attacks.

 

The Government had set up an Interministerial Committee to evaluate Cameroon’s contributions to international organisations, with a view to clearing our country’s arrears to the OIC and other international institutions.

 

Resolution No.6/32-AF of the AMCEN, whose implementation measures have been entrusted to the Standing Committee on Finance of the Organisation (SCF) for examination, provides for sanctions against States which do not honour their commitments. These sanctions consist of the suspension of the right to apply for any vacant post in the OIC; the suspension of membership or of any application for membership of the various organs, bureaux and committees; the exclusion from the possibility of hosting conferences, symposia or any other activity of the OIC; suspension of the right to speak at meetings; suspension of the right to vote; suspension or denial of assistance and facilities at the level of the various OIC institutions as well as financing or project financing by the IDB; suspension of OIC membership.

 

MINFI was made aware of the need to take advantage of the concessional measures adopted by the 39th session of the CPF (Jeddah, 27 – 29 December 2010) which aim to reduce the arrears of the States concerned by 50%, provided that the latter honour their commitment within three (03) months.

 

Other areas of cooperation with the OIC were examined following the conclusions of the OIC/IDB sub-regional economic forum held in Yaounde in June 2010, the main recommendations of which were :

• opening lines of credit with local banks and other financial institutions to support SMEs in the Member States ;
• improving Member States’ capacity to design and implement projects ;
• the provision by the IDB, through the opening of a representative office in Yaounde, of information on the activities of its various entities, particularly with regard to the financing of private sector projects, trade support and insurance ;
• IDB support for the establishment and development of business relations between private operators in the participating countries and those in IDB member countries, particularly in the Middle East and the Gulf.