The government of Cameroon wants to rebuild its oil refining capacity and develop a domestic fertilizer industry. The plan is a response to the economic impact of the U.S.-Iran conflict. In a report titled “The Iranian Conflict and the Cameroonian Economy: Analysis of Transmission Channels of a Geopolitical Shock on Cemac and Cameroon,” the Ministry of Finance outlines two main recommendations. Rehabilitate the National Refining Company (Sonara), whose facilities were severely damaged by a fire in May 2019, or build a new crude oil refinery; and construct a fertilizer production plant in the country. According to the ministry, the ongoing conflict between the United States and Iran has triggered economic effects that also affect Cameroon, including disruptions in global supply chains and sharp increases in the prices of hydrocarbons and fertilizers. To reduce exposure to such external shocks in the future, the report recommends that Cameroon develop its own production infrastructure over the medium term. Several such projects have been announced over the past decade but remain incomplete. This is the case for Sonara’s rehabilitation. Since the 2019 fire, the start of repair work has been announced repeatedly without material progress. During a board meeting held on ...
Cameroon Considers Reviving Refinery and Fertilizer Plans to Adapt to Price Shock
