Friday, December 13, 2019

Anglophone Crisis: About 1000 billion gone already as a result of the Crisis

The Cameroon Inter-Employer Group (Gicam), in its report on the secessionist crisis that is shaking the country, says that this situation of instability has brought down economic activity.

Over the three years of the English secessionist crisis, the summary estimate brings to more than 2 billion FCFA the consequences caused by the "dead cities", the insecurity, the various destructions, the stop of the building sites of investment resulting in significant revenue shortfalls for businesses. 

Focusing on only 10 business sectors, losses are estimated at nearly 800 billion FCFA. The distribution sector is the most affected insecurity having destroyed the supply circuits. What made the bed of the informal circuits where many people refueled in contraband products. At the same time, employers estimate that the revenues lost by the State since the beginning of the conflict in terms of tax revenues amount to nearly 18.5 billion CFA francs, including corporate tax, royalties and other miscellaneous taxes. 

In total, the quantitative count shows 159 days of "dead cities" in the South-West, and 141 in the North-West in 2017 and 2018, equivalent respectively to 30.6% and 27.1% of the total number of working days during these years, as well as losses occurring between 20% and 30% of the overall business volume.

In this climate of widespread terror, companies must adapt to survive, deplores the GICAM which, as of September 30, 2019, the partial balance of losses already suffered by formal enterprises, in 9 sectors of activity, to nearly 40 billion FCFA. To this must be added the exorbitant cost of infrastructure and public institutions destroyed, and the cost of reconstruction could be around 500 billion FCFA, more than a third of the annual envelope of Cameroon's investment budget capped to 1300 billion FCFA. 

At the end of public investment, there is the shortfall for investors leading to a strong impact on energy, services, agribusiness and tax revenues. In the face of the crisis, companies, whether located in conflict areas or not, also bear additional burdens due to the necessary adaptation measures.