Poverty & Equity Brief October 2024 CAMEROON The most recent household survey data in 2021/22 reveals that 23 percent of Cameroonians are living below the international poverty line of $2.15 per person per day (2017 PPP), highlighting poverty reduction as a major challenge in the country. Despite positive economic growth over the past two decades, the pace of poverty reduction in Cameroon has been slow. Data from the bridge survey, which uses the same methodology as previous ECAMs, shows that the poverty rate at the international threshold has decreased by less than 1 percentage point between 2001 and 2021, indicating significant stagnation in poverty reduction over the past two decades This stagnation is further compounded by the country's growing population, leading to an increase in the absolute number of people living in poverty, which reached 6.3 million in 2021/22. Cameroon's economic growth has been sluggish and increasingly non-inclusive, with the poorest 30 percent of the population experiencing a decline in consumption between 2001 and 2021, exacerbating economic inequality. The Gini index, at 42.2 in 2021/22, reflects this growing inequality, which is driven by significant geographical disparities, with poverty concentrated in rural and northern regions. Rapid urbanization has also led to rising poverty in urban areas, shifting the demographic of Cameroon’s poor. Ongoing security crises and rising inflation, partly due to global events like Russia's invasion of Ukraine, have further impeded consumption growth for the country’s vulnerable populations, underscoring the urgent need for policies that promote more inclusive and sustainable economic development. Cameroon's multidimensional poverty rate remained high at 41 percent in 2021/22, exceeding that of aspirational countries and highlighting persistent challenges in improving living standards. The Human Capital Index (HCI) was just 0.40 in 2020, indicating that a child born in Cameroon is projected to achieve only 40 percent of their full productive potential due to gaps in education and health. This low HCI, below both regional and global income group averages, underscores the urgent need to address these critical development barriers. While recent policy changes through the 2023 and 2024 finance laws are expected to strengthen macroeconomic stability and enhance long- term inclusive growth, they may also cause short-term inflationary pressures that weaken purchasing power. Measures such as tax exemptions for agriculture and wage increases for public and private sector workers have been implemented, but these adjustments may not benefit the majority of poor and vulnerable workers in the informal sector. $2.15 Poverty Rate $6.85 Poverty Rate Gini Index Prosperity Gap 2021 2021 2021 2021 23.0% 76.0% 42.2 8.3 Poverty Rate Inequality 90 70 80 60 70 50 Poverty Rate (%) Gini Index 60 40 50 30 40 20 30 10 20 0 2000 2010 2020 2000 2010 2020 $2.15 Poverty Rate $3.65 Poverty Rate $6.85 Poverty Rate Gini Index Poverty at Different Lines Poverty Line Number of Poor Rate Year (Thousands) (%)   National Poverty Line 8,340.0 37.5 2014         International Poverty Line ($2.15/day) 6,253.6 23.0 2021         Lower Middle Income Class Poverty Line ($3.65/day) 12,702.4 46.7 2021         Upper Middle Income Class Poverty Line ($6.85/day) 20,663.4 76.0 2021         Multidimensional Poverty Measure   41.0 2021         Group and Multidimensional Poverty Poverty by Group Poverty Rate (%) Multidimensional Poverty Components (% of Pop.)   Urban population 27.9 Daily income less than US$2.15 per person 23.0 Rural population 68.5 At least one school-aged child is not enrolled in school 24.2 Males 46.5 No adult has completed primary education 56.0 Females 46.9 No access to limited-standard drinking water 19.1 0 to 14 years old 55.6 No access to limited-standard sanitation 52.5 15 to 64 years old 39.4 No access to electricity 36.9 65 and older 39.7 Without education (16+) 39.7 Primary education (16+) 65.8 Secondary education (16+) 34.3 Tertiary/post-secondary education (16+) 5.6 Note: Data for the "Poverty by Group" table is derived from a 2021 survey and data for the "Multidimensional Poverty Components" table is derived from a 2021 survey. The rates in the "Poverty by Group" table above are shown at the $3.65 lower-middle income line. "N/A" denotes a missing/removed value, while "N/A*" refers to a value which was removed due to having fewer than 30 observations. Poverty Data & Methodology Cameroon's official poverty estimates come from the Cameroon Household Survey (ECAM) series, conducted by the National Institute of Statistics (INS). Five rounds have been completed in 1996, 2001, 2007, 2014, and 2021/22, with each round sampling 10,000 to 12,000 households, covering ten regions and the cities of Douala and Yaoundé. However, there have been gaps of at least six years between each round. The most recent, ECAM-5, was conducted from October 2021 to September 2022, collecting data from 10,546 households. It introduced significant improvements, including shifting from expenditure to consumption measurements and collecting data across three waves to better capture seasonal variations. Due to these changes, ECAM-5 data cannot be directly compared to the 2014 ECAM-4. To facilitate comparisons, INS conducted a bridge survey using the ECAM-4 methodology, enabling the construction of poverty trends. The new ECAM-5 poverty figures were released in April 2024. The World Bank’s HISWACA project offers an opportunity to enhance statistical capacity in West and Central Africa. This includes potential financing for ECAM-6 and a dialogue aimed at extending harmonization efforts across the CEMAC region, similar to WAEMU's approach. Harmonization The numbers presented in this brief are based on the SSAPOV database. SSAPOV is a database of harmonized nationally representative household surveys managed by Sub-Saharan Team for Statistical Development. It contains more than 100 surveys covering 45 out of the 48 countries in the SSA region. The three countries not covered in the database are Eritrea, Equatorial Guinea, and Somalia. Terms of use of the data adhere to agreements with the original data producers. Africa Western & Central Poverty Economist: Rayner Tabetando