PDVIR

Creation Background

• Cameroon is a lower middle income country, but does not align with comparable countries in terms of poverty and other social indicators. Cameroon had a Gross National Income (GNI) per capita of US$1,320 in 2015 (Atlas method), compared to an average of US$1,628 for sub-Saharan African countries. No Millennium Development Goal (MDG) was achieved in Cameroon in 2015. Indeed, Cameroon's Human Development Index (HDI) scores have deteriorated over the past two decades (ranking 153 out of 197 in 2015). Furthermore, 38% of the population lives below the national poverty line and 27% below the international poverty line of US$1.90 per day. Poverty in Cameroon is characterised by large and growing spatial disparities between urban and rural areas, the central and coastal regions of the South (where rates have decreased slightly) and the northern regions (where poverty is increasingly concentrated). The quality of service delivery is below what would be expected in a lower middle-income country.
• Cameroon has great economic potential due to its diversity, natural resources and position as a gateway to West and Central Africa. The country is endowed with oil, natural gas, bauxite, iron and abundant agricultural products including coffee, cocoa and cotton. It is one of the most diversified countries in Africa. The territory stretches from Lake Chad in the north to the rainforest of the Congo Basin and fertile crop and livestock areas in the south. Cameroon accounts for 44% of total GDP in the Central African Economic and Monetary Community (CEMAC). Ninety per cent of goods destined for Central Africa pass through the port of Douala, while exports and imports to the Central African Republic (CAR), Chad and the Republic of Congo pass through Cameroon's national road and rail network.
• However, recent economic growth has not been attributed to structural transformation and is vulnerable to various risks, including the effects of climate variability and change.Despite the bleak overall economic environment in the CEMAC region and the decline in oil prices, economic developments in 2016 remained positive with a growth rate of 4.7 per cent (compared to 5.8 per cent in 2015). However, economic growth was mainly driven by public investment rather than structural reforms. Natural resource revenues have helped finance a highly centralised governance system and a state-led development model, which burdens the economy with monopolies, an unfavourable business environment and weak governance. Recently, the country's debt situation also deteriorated due to declining revenues, increasing macroeconomic uncertainty.
• The ratio of public debt to GDP reached 34.1 per cent in 2016 (up from 15.6 per cent in 2013) and the risk of debt distress rose from medium to high in the joint 2015 IMF/WB DSA, reflecting the collapse in the value of exports and the rapid growth of non-concessional borrowing.

In addition, increased climate variability and extreme events (such as droughts and floods) are a threat to economic growth. And the presidential and legislative elections in 2018 amidst growing social discontent in the two English-speaking regions and the security crisis in the far north of the country could slow down the implementation of much-needed structural reforms.

Missions

Capacity-building for inclusive and resilient urban management :

• Support to RLAs for inclusive and resilient urban management ;
• Support to national entities to improve urban planning tools and land management for more inclusive and resilient cities.

Improving connectivity and living environment in beneficiary cities :

• Improved intra-city connectivity and integration of under-served neighbourhoods ;
• Improving the living environment in selected neighbourhoods ;
• Support to local initiatives focusing on the economic inclusion of young people ;
• Improving the urban environment and building resilience to flooding.

Contingency Emergency Response (CER)

Business Sectors

• Construction/rehabilitation of urban roads ;
• Drainage construction ;
• Public lighting ;
• Drinking water supply ;
• Construction/rehabilitation of a health centre ;
• Construction/rehabilitation of a class room ;
• Development of green, leisure, relaxation and playing spaces ;
• Development of commercial facilities ;
• Capacity building ;
• Acquisition of equipment for councils and national entities, …

Targets

The main beneficiaries will be the residents of certain under-equipped neighbourhoods in the seven cities targeted by the project (Batouri, Douala, Kousséri, Kumba, Ngaoundéré, Maroua and Yaoundé). The main benefits arise from improved living conditions resulting from better access to urban infrastructures and services, improved connectivity to the city, and strengthened community organisation and ability to express their needs. Additional benefits are expected to arise from temporary employment opportunities, for example in the case of labour-intensive construction activities.