Strengthening transparency in the oil sector in Cameroon: why does it matter?

This paper analyses transparency issues in Cameroon's oil sector. It shows that, while substantial efforts have already been undertaken, continued action is necessary to strengthen transparency. The paper also identifies why and how transparency, especially in the fiscal area, matters for economic development and poverty reduction in Cameroon.The report highlights that if efforts to strengthen transparency are consistently pursued, economic and fiscal policymaking will be more effective, the business environment will improve, and more resources will be freed for investment in social sectors and basic infrastructure, thereby supporting economic growth and poverty reduction efforts in Cameroon.Recommended measures to increase transparency include:contractual information on the production-sharing agreements between governments and oil companies should be made public. If the authorities and the oil companies insist that contracts are confidential and should not be made public, they could at least publish key parameters to illustrate how oil resources are allocated between oil companies, the national oil company, and the governmentbudget transparency could be strengthened by the full and timely transfer of oil revenues to the treasury and gradually shifting to a classification by economic naturefacilitating further public scrutiny would contribute to changing public sentiment on government accountability. Steps in this direction include making the technical secretariat of the EITI committee fully operational quickly, proceeding with consultations with the private sector and civil society, and formulating and implementing a specific consensus-based action planimplementing the EITI principles, beyond the progress already made, would clearly indicate that Cameroon strives to comply fully with international standards on oil transparency.