IMF Staff Country Reports

This Selected Issues paper analyzes structural transformation and export diversification in Cameroon. Cameroonian authorities aim for the structural transformation of the economy and export diversification because of their well-known benefits. Structural transformation and export diversification reinforce each other. Structural transformation of the economy and diversification of exports are key development priorities for Cameroon. They intend to achieve this objective through import substitution policy. However, empirical literature points out those horizontal policies, such as investments in human capital and infrastructure and governance improvement, are not only the most effective to foster structural transformation and export diversification, but also a necessary condition for the success of any industrial policy. Despite a longstanding objective of the country to industrialize, its manufacturing has been persistently sluggish, and its exports were concentrated in minerals, fuel, and raw commodities in less diversified destinations outside Africa. Therefore, it is advisable that the authorities concentrate efforts on those areas as a priority because the country’s related performance has substantial deficits.