Overview of Cameroon
Population- 25 million
GDP Per Capita: USD 1,507 (2019)
Cameroon is one of the largest Central African economies. Its oil and minerals sector is strong and contributes heavily to its GDP. In recent years, due to the decrease in oil prices, Cameroon has been affected badly. Oil accounts for 40% of its exports. To become an upper-middle country, it has to decrease its reliance on oil and minerals and diversify its economy.
Cameroon has been steadily growing in the last two decades. Economically, It is one of the most stable countries in the Central Africa region. 5.9% of its working population was unemployed in 2020. The unemployment rate is set to drop with the global economy returning to normal in 2021.
A brief glimpse of industries:
- Cameroon has a robust agricultural sector. It exports cocoa beans, palm oil, maize, sugar cane, banana, tomato, and various other agricultural products. In 2019, the sector contributed nearly 15% to the country’s GDP. 46% of the population works in agriculture. Despite the pandemic, agriculture exports remained stable in 2020.
- The country has significant oil reserves. Crude petroleum is the biggest export nearly every year. In 2015, the country produced more than 100,000 barrels per day. The figure came down to 64,000 in February 2021. The sector contributes 40% to its exports. Due to the dynamic global oil market, the shocks in global oil prices threaten the stability of its economy.
- Cameroon is endowed with impressive natural gas reserves. It is estimated that it has 3.9 billion cubic feet of natural gas reserves. Much of this remains untapped. Moving forward, this sector is set to grow at a staggering pace.
- The secondary sector is a major contributor to the economy. It employs 14% of the country’s workforce and contributes heavily to the GDP. The main industries are sawmills, food processing, and textiles.
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Cost of Living:
Cameroon ranked 131st out of 197 countries in 2020. For expats living in Cameroon, it is incredibly affordable. Calculating the cost of living is difficult because a lot of factors come into play, such as standard of living, taxation, family size, etc. On average, an individual can live on USD 642 with rent and USD 376 if he doesn’t have to pay rent. A family of four will need to shell out USD 1637 if they don’t pay rent and pay USD 1107 if they do.
A Breakdown of the Average Cost of Living in Cameroon
Your cost of living in Cameroon depends on your location:
- The cost of living varies significantly in different cities in Cameroon. The north and the east are the poorest in the country despite being endowed with natural resources. Yaoundé is the capital of Cameroon. Located in the central part of the country, it has a higher standard of living than the rest of the country. It is home to the civil service as well as house embassies. The average monthly salary in Yaounde stands at around USD 850, which is the highest in the country. An individual can live with USD 770/month, and a family of four would need USD 1800/month to live in the capital city.
- Douala is the financial hub of the country. It houses the largest port and airport in Central Africa. It has a population of 2.7 million. The average monthly salary stands at around USD 918. Even though the city’s average salary is higher than Yaoundé’s, the cost of living is actually less here. An individual needs to spend USD 593 a month on average to live here, while a family of four needs USD 1653 a month.
- Bamenda is the next big city in Cameroon, with a population of 350,000. The city has a thriving food processing industry and is known for its scenic sights. The average monthly salary is USD 669. An individual can live here for USD 543, and a family of four would need USD 1399 to live here.
Cameroon’s economy is growing steadily. It is one of the most stable countries in the central Africa region. With a diversified economy with industries ranging from oil and natural gas to food processing and coffee plantation, the country has something to offer for everybody. Here are the top skills needed in different cities:
The Top Sectors that are Expected to Hire in Cameroon in 2021
Top Skills in Cameroon - City Wise
Hiring Cost in Cameroon
The cost of hiring is a tangible and substantial cost that companies have to incur to hire people. After hiring, the company has to spend more money to onboard and train employees. After that, there is always a risk that some employees would change jobs, and the company would have to hire more people to replace them.
Managers have to take out their precious time to take interviews and select people. The time spent on the process can be utilized elsewhere. The opportunity cost cannot be ignored. Moreover, there is no guarantee that the candidates chosen would stand up to expectations.
Salary Structure for Various Roles
The following table reflects the average annual salary drawn by employees of various sectors in Cameroon:
Employment Laws in Cameroon
- The employment contract can be oral or in writing according to Cameroon’s labor laws. However, employers are advised to have a written agreement to reduce conflict. The working hours are 40 hours per week for all sectors except agriculture, where it is 48 hours.
- There is no hard and fast rule for the probation period in Cameroon. It usually ranges from 15 days to 4 months. The employees are entitled to one and a half days of leave for every month they work for. Employees who have been with an employer for more than five years get three and a half days of leave for every month they’ve worked.
- In Cameroon, employees are entitled to 5 days of sick leave every year. They must submit a sick note if they do not come to work for more than seven days. They can self-certify for sick leave that is under seven days.
- Expecting mothers can take four weeks of leave before birth. They can take two additional weeks of leave if their doctors advise them.
- The minimum wage in Cameroon is 36,270 XAF. Employment is regulated under the Labor Code of 1992.
How Can Skuad Help You With Hiring in Cameroon?
Skuad’s unified employment platform handles compliances in business practices, customs, culture, and laws of Cameroon. It enables seamless hiring to onboard and training, saving you hiring costs. Our platform will give you the freedom to focus on your expansion plans. Connect with Skuad experts to know more.