(Business in Cameroon) - In a decree signed on August 4
President Paul Biya authorized Minister of Economy Alamine Ousmane Mey to sign a loan agreement for the construction of the Ebolowa-Akom II-Kribi road connecting Cameroon and Congo
Minister Mey is to sign an over €198 million (over CFAF130 billion) loan agreement with Standard Chartered Bank London
The loan is guaranteed by UK Export Finance
The signing of this decree means that the parties have completed all the necessary steps to sign the financing agreement
the conditions of this loan remain unknown.
Once the loan is signed (at a yet-to-be-disclosed date), the funds will be gradually disbursed to the company in charge of the construction based on progress in the construction of the road
which connects Congo to the port of Kribi.
The Head of State's authorization follows the private contract signed on March 23
the Italian company responsible for building the 179.2-km Ebolowa- Akom -Kribi road
with costs estimated at CFAF122.4 billion (all taxes included)
The loan contracted is therefore CFAF8 billion higher than the estimated cost of the construction.
Standard Chartered Bank required the Italian builder to comply with environmental requirements before signing the financing agreement required to start work
distorting the planning of ICM, which had already announced that work would start in the second half of 2022
The construction of the Ebolowa-Akom II-Kribi road is a promise President Paul Biya made to populations in the South during the Ebolowa Agropastoral Show in 2011
The project was awarded to ICM following Paul Biya's state visit to Italy from March 20 to 22
The highly anticipated road is the missing link in the Kribi- Congo Border corridor
Cameroon has already financed the construction of the 74-kilometer Sangmelima-Mengong road
The Ebolowa-Akom II-Kribi road will connect Ebolowa to Sangmelima
facilitating the transport of forestry resources from Congo to the port of Kribi
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a presidential decree authorized Minister of Economy
to sign a little over €11.9 million (about CFAF7.9 billion) loan agreement with Standard Chartered Bank London
The loan will fund the construction of the Ebolowa-Akom II-Kribi road
It adds to the CFAF130.4 billion loan agreement whose signing (with the same bank) was approved by a presidential decree on August 4
there is no information on the terms of those loans but they bring the overall cost of the road construction project to CFAF138.23 billion
According to the Ministry of Public Works (Mintp)
the second loan will finance the elaboration and implementation of an environmental and social management plan (ESMP)
the financing is subject to environmental compliance
This requirement was formulated following a site visit by the lender's teams in July 2022
residents mentioned the presence of gorillas along the road
prompting the bank to make that requirement
According to the Mintp," per environmental requirements
the project will begin with ESMP preparations unless there are any changes.”
The two presidential decrees come after the private contract signed on March 23
Africa Director of the Italian company ICM Construction
responsible for building the 179.2-km road
the Ebolowa-Akom II-Kribi road will be completed in 36 months
with tax-inclusive costs estimated at CFAF122.4 billion
The construction cost is to be covered by the first loan with the remaining CFAF8 billion budgeted to cover compensation costs
and the technical and geotechnical control mission (according to the Mintp).
The construction of the Ebolowa-Akom II-Kribi road is a promise made by the Head of State during the Ebolowa Agropastoral Show in 2011
Long-awaited by residents of the Southern region, this road will connect Ebolowa to Sangmelima
facilitating the transit of forest resources from Congo to the port of Kribi
the Cameroonian State signed with G-Stones resources an investment convention for the exploitation of the Akom II iron ore deposit in the southern part of the country
should become one of the very first economic operators to venture into the industrial mining sector in Cameroon
the project also involves building a steel complex in Fifinda
The investments in the mining sector diversify the assets of the Bocom group
the former docker who became one of the biggest importers of Chinese products also sells finished petroleum products
and has assets in the transport and hospitality (B&B Investments) sectors..
Abdeladim ARNOUS, The ambitious Moroccan cement-manufacturer
Abdullahi BABA, The man behind the success of Dangote Cement in Cameroon
Adolphe MOUDIKI, He who commands Cameroon’s state-owned oil company
Adrien BECHONNET, The French face in the downstream oil sector
Adrien BROCHE, The concessionaire of oil and gas fields
Alain DUFOURNIER, The experienced manager steering the wheels of Tractafric
Alain MALONG, The industrialist plunged in the dark
Alain Noël Olivier MEKULU MVONDO, The austere pension fund manager
Alamine Ousmane MEY, The economic planner
Albert KOUINCHE, The domestic money transfer expert
This is the volume of over-the-counter deals Cameroon’s minister of public procurement Ibrahim Talba Malla authorized Emmanuel Nganou Djoumessi
to sign for the construction of a 179.28 kilometre Ebolowa-Akom II-Kribi road.
Ibrahim Talba Malla authorized Emmanuel Djoumessi to “proceed
to direct consultation without even a public notice of at least three technical consulting cabinets with proven abilities.”
Let’s remind that in a letter dated February 18
director of the civil cabinet at the presidency
asked the minister of public works to sign an agreement with Italian group ICM-CMC Spa for the construction of Ebolowa-Akom II-Kribi road
This project includes the construction of a 30-km power line and the installation of optical fiber over 179.28 kilometres
Its financial partners are Standard Chartered Bank and British Ukef
The implementation of this project is a promise made by President Paul Biya eight years earlier
(Business in Cameroon) - The construction of Ebolowa-Akom II–Kribi Highway will be launched in 2022
This was announced by Minister of Public Works Emmanuel Nganou Djoumessi during his address before the parliament in the framework of the ongoing budget session
“The projects that will kick off in 2022 notably include the construction of 381.5 kilometres of roads and 150 linear meters of artworks
they are the Maroua-Bogo-Pouss pass(93 km)
the Eastern Entrance to Douala (Phase II-38.9 km)
phase I of the Olounou-Oveng-Gabon border road(70 km)
and Olounou-Oveng Road that includes the construction of a 150 linear meter of the bridge over the Kom River,” Minister Emmanuel Nganou Djoumessi said
Even though the official stated no official launch date
the announcement will likely appease residents of the Southern region
the latter organized violent protests even blocking the circulation to express
Those protests aimed to show their anger because almost two years after its selection to build the Ebolowa-Akom II–Kribi highway
Italian firm ICM-CMC was yet to launch the works
For the Ebolowa-Akom II-Kribi road construction project
the Cameroonian government awarded a special contract XAF160 billion contract to ICM-CMC
The overall cost of the project is estimated at XAF168 billion (XAF160 billion for the construction works
and XAF2 billion for geotechnical investigations)
the Ministry of Public Works listed XAF179.63 billion as the effective cost of the project
the construction works should have started in 2021
But ICM-CMC “lied about its financing capabilities
it got caught up with its lies and tried to raise funds from Standard Chartered Bank with a London-based guarantor whose conditions are well above the allowed proportions (...) Consequently
other financing mechanisms are being explored.” By announcing the launch of construction works for 2022
Minister Emmanuel Nganou Djoumessi seems to be indirectly indicating that the funds required have or are being raised.
(Business in Cameroon) - Nearly two years after Cameroonian authorities awarded the contract for the construction of the Ebolowa-Akom II-Kribi road (179.28 km with bypasses) to Italian company ICM-CMC by mutual agreement
the state of the road has been the subject of protests organized by the population of the areas covered by the projected road.
the population wondered why the road project was still stalling
The company [ICM-CMC] was only required to control the traffic
The road construction sign on the site was placed at the company’s initiative
It does not list all the elements of the project nor does it mention the reference of the contract
The construction contract has not been signed yet
Only the commercial contract is signed already (...) ICM-CMC lied about its financing capabilities
other financing mechanisms are being explored.”
Those explanations confirm information published by Business in Cameroon in February 2019
we indicated that the financial partners (Standard Chartered Bank and the UK Export Finance) offered the funds at a 3.96% annual percentage rate
which was considered higher than the average interest rates obtained for such financings in Cameroon
The Ministry of Finance asked the financial partners to reduce that interest to 2.76% max
The contract was awarded in the first quarter of 2019
after the President of the Republic Paul Biya’s visit to Italy from March 20 to 22
Italian operators expressed their interest in various projects in Cameroon including the Ebolowa-Akom II-Kribi road
whose construction will help avoid the long U-turns because although Ebolowa and Kribi are both in the South
travelers have to go pass through the Centre (Yaoundé) and Littoral (Edea) just to reach those two towns.
The project is the materialization of a promise made by the Head of State to residents of the South on January 17
the isolation of agriculture production zones needs to be addressed and important infrastructure projects implemented. Therefore
I have decided to launch the construction of the following paved roads: Ebolowa-Kribi par Akom II…,” the president had said. Since then
the Ministry of Public Works was scheduling the launch of the construction works for 2021.
the Ministry of Public Works listed XAF179.63 billion as the effective cost of the project.
(Business in Cameroon) - After eight years of suspension
work on the Ebolowa-Akom II-Kribi road project (179.28 km with bypass roads) will finally resume
Minister Director of the Civil Cabinet (DCC) of the Presidency of the Republic
referred the matter to the Minister of Public Works (Mintp)
for “signing the contract for the Ebolowa-Akom II-Kribi road construction project”
The contract will be signed with the Italian company ICM-CMC Spa which has already prepared all required fund searching documents
according to authorization granted by President Paul Biya
the project cost is likely to be revised downwards because
the government asked ICM-CMC to eliminate related works (supply and installation of optical fiber over 179.28 km
environmental protection measure and expropriation over a 30 m strip) estimated at XAF14.69 billion
The financial partners (Standard Chartered Bank and the British export credit agency-Ukef) proposed an overall effective rate of 3.96% per year
which was considered expensive compared to the financing previously obtained in Cameroon
The Ministry of Finance has asked these partners to reduce the weighted overall effective rate
The construction of the Ebolowa-Akom II-Kribi road by Italian partners is certainly one of the benefits of Paul Biya's state visit to Italy from 20 to 22 March 2017
The Ebolowa-Akom II-Kribi road is a firm commitment by the Head of State to the people of the Southern Region of the country during the Ebolowa Agropastoral Forum on January 17
“The development of the rural world requires the opening up of agricultural production zones and the implementation of major structural projects
I have decided to build the following paved roads: Ebolowa-Kribi by Akom II (...),” the President said
but since then no further step was made.
(Business in Cameroon) - Cameroon is seeking financial support from japan to construct the Ebolowa-Akom II- Kribi (168.57 km) and Ring Road (358 km) roads
The request was made September 17 during a meeting between the Cameroonian minister of public works
The Japanese official said his country is committed to support Cameroon’s development
Japan will favorably handle the financing request for road projects
Let’s note that the Ebolowa-Akom II-Kribi road is divided into two main lines namely Ebolowa-Akom II
The latter are also made of several sections of which only the 3rd and 4th (Kribi-Campo
20 km) have already been delivered since 18 April 2014
financial needs are estimated at CFA155 billion
(Business in Cameroon) - During his address to the nation for the New Year
Cameroonian President Paul Biya presented his new vision for the oil and mining sectors
One of the main takeaways of his presentation is the upcoming exploitation of the iron ore of Kribi-Lobé
"A decisive step has already been taken in the achievement of these various projects
with the signing of the related mining conventions and the granting of operating licenses to the winning companies," said the President of the Republic
While the first two projects are already known to the general public
the Leader indicated that the third one should allow "the development of a steel complex for the local processing of iron
the construction of a pipeline and several basic infrastructures for the benefit of the population.”
After recalling that fuel and domestic gas subsidies cost the Treasury respectively nearly CFA700 billion and CFA75 billion in 2022
Paul Biya said that "it is increasingly clear that our country
cannot indefinitely escape a readjustment of prices of petroleum products if we want to preserve our budget balances and continue to serenely implement our development policy.”
Paul Biya also announced the launch or resumption of certain road projects
including the asphalting of the Ebolowa-Akom II-Kribi axis
the resumption of construction work on the Mora-Dabanga-Kousseri
Babadjou-Bamenda and Kumba-Ekondo Titi road sections
and the launch of construction work on the urban section of the Yaoundé-Nsimalen highway
according to the Cameroonian Head of State
about 700 kilometers of roads should be developed in 2023 against 860 kilometers in 2022
He also announced the rehabilitation and modernization of the airports of Tiko
(Business in Cameroon) - Improving its road network remains a top priority for the Cameroonian government
the country plans to complete 754.76 km of new paved roads
This target represents a significant increase compared to last year’s goal of 656.95 km
The gap is even wider considering that only 397 km were actually paved in 2024
The government’s plans for 2025 include paving 754.76 km of new roads
with 149.56 km under the Triennial Growth Acceleration Plan
It also aims to build 509 meters of large-scale structures
rehabilitate 1,789 km of existing paved roads
More than 2,500 km of dirt roads are also expected to be maintained
The year is also set to see the launch of nine major road projects
Key projects include the 179 km Ebolowa-Kribi road via Akom II
(Business in Cameroon) - During the Renewable Energy Promotion Forum in Cameroon on May 3
announced the government’s ambition to increase the share of renewable energy (hydroelectric
etc.) to 25% of the electricity mix by 2035
This percentage translates to around 1,500 MW of renewable energy capacity to be installed
despite the combined efforts of the government
the share of renewable energy remains below 5%," added Gaston Eloundou Essomba
This declaration sparked surprise among forum participants
out of a total installed capacity of 1562.4 MW
hydroelectricity and solar contribute 959.6 MW and 30.83 MW
representing over 63% of Cameroon's energy mix
according to the law governing the electricity sector in Cameroon enacted on December 14
only small-scale hydroelectric installations (mini-hydro
with an installed capacity of 5 MW or less) are considered renewable energy sources
the country's five large hydroelectric plants (Songloulou
with a combined installed capacity of 958 MW and contributing over 61% to the electricity mix
During the forum themed "Renewable Energies at the Heart of Cameroon's Socio-economic Development: Synergies in Action," the Minister of Water and Energy (Minee) presented the government's strategy to achieve its renewable energy objectives
This strategy revolves around two main axes: the development of 50 mini-hydroelectric power plants and the promotion of photovoltaic solar energy
Though the financial details of the program to construct 50 mini-hydroelectric power plants were not disclosed
with an initial capacity of 1.4 MW expandable to 2.8 MW
was inaugurated in 2021 in Mbakaou Carrière
This project was partially funded by a loan of CFA1.5 billion from BGFI Bank
representing 30% of the total project budget
addressed to the Director-General of the Rural Electrification Agency (AER)
approved the awarding of a contract to construct five mini-hydroelectric power plants to the HIG group
these infrastructures will be built in the localities of Banyo
located respectively in the regions of Adamaoua
To achieve Cameroon's objectives set within this program
additional funding will be required to construct 44 more mini-plants over the next 10 years
The photovoltaic solar energy promotion program consists of four components: centralized production
the program has already led to the creation of the country's two largest solar power plants
These installations were developed by the Norwegian company Scatec
Reliable sources indicate that with financial support from the International Finance Corporation (IFC)
a subsidiary of the World Bank dedicated to financing the private sector
Scatec is finalizing two other photovoltaic solar projects in Cameroon
These new infrastructures are expected to be built in the northern regions
Experts consider these regions most suitable for such projects due to their high levels of sunshine
The CEO of the electricity company Eneo revealed
on the sidelines of the inauguration of the solar plants in Maroua and Guider in September 2023
that new production infrastructures are under development
The goal is to increase Cameroon's solar energy production capacity to 250 MW by 2030
the Minister of Water and Energy stated during the May 3
2024 forum in Yaoundé that the Cameroonian government is also implementing the off-grid component of the photovoltaic solar energy promotion program
This component has already facilitated the construction of over 360 mini photovoltaic solar power plants in rural areas
where the electricity access rate reached about 40% in 2023
according to data presented at the forum by the Ministry of Water and Energy
The third component of the program has already led to the completion of nearly 1,000 domestic installations by private actors
He also mentioned a fourth component of the program that has not yet been implemented
described as an "innovative service allowing consumers to partially offset their electricity consumption billed by solar energy production generated directly at their consumption site."
this system allows a household equipped with its own solar installation to connect to the conventional electricity grid
When its production exceeds its consumption
and the household receives financial compensation from the utility
when production is lower than the household's consumption
it draws the deficit from the conventional grid and pays the corresponding bill to the utility
(Business in Cameroon) - The Cameroonian government has awarded the contract for building five new mini-hydroelectric power stations in the country
In a letter sent on September 29 to the Director-General of the Rural Electrification Agency (AER)
the Secretary-General of the Presidency of the Republic confirmed that HIG Group had won the bid
“I am hereby notifying you of the Presidency's approval
instructing you to sign a protocol agreement with the HIG Group for the feasibility studies for the construction of the five small hydroelectric power stations in the localities of Banyo
The deal should be signed in an Engineering
and Finance (EPC-F) model," reads the letter
without further details on the HIG company
These new projects are part of the ongoing implementation of the program to construct 50 mini-hydroelectric power stations in the country
as announced by the Minister of Water and Energy
during the inauguration of the Mbakaou mini-power station (1.4 MW expandable to 2.8 MW) in the Adamaoua region; the first infrastructure of its kind in the country
With a total investment of CFA4.5 billion made by the independent electricity producer IED Invest Cameroon
this infrastructure received support from the European Union
which contributed CFA1.64 billion to its financing
The local subsidiary of the Gabonese banking group BGFI Bank also provided CFA1.5 billion and intends to become more involved in financing such projects in Cameroon
"We want to build the other 49 stations to address the electricity supply issue," said the DG of BGFI Bank Cameroon in an interview with Business in Cameroon
"We believe that local banks have a role to play in this venture," Abakal Mahamat added
In addition to increasing the share of hydroelectric power in the country's energy mix and making savings thanks to a decline in expenses on fuels used to operate thermal power stations
the mini-hydroelectric power station project is eco-friendly
the small hydroelectric power station in Mbakaou carrière will reduce carbon dioxide (CO2) emissions by at least 67,000 tons by 2030
thanks to the shutdown of the thermal power stations in Tibati and Mbakaou," said Minister Eloundou Essomba on April 14
This corresponds to an average annual reduction of CO2 emissions of over 7,444 tons
The electricity producer and distributor Eneo
which purchases the production of this facility
estimates the reduction to be 4,893 tons of CO2 each year
(Business in Cameroon) - During the 4th Forum on China-Africa Cooperation (FOCAC) held in Beijing
Cameroon's President Paul Biya made a strong call for increased Chinese investments in the country’s road infrastructure
His request is aimed at boosting the development of roads and other large-scale projects in Cameroon
“We are set to launch our second-generation flagship projects soon
including Phase 2 of the Yaoundé-Douala highway
and the Maroua-Kousseri road,” President Biya announced during his meeting with Chinese President Xi Jinping on September 4
He added that these projects present key investment opportunities for the Cameroonian government and Chinese companies
In his traditional end-of-year address in 2023
President Biya had already mentioned the planned start or resumption of several road projects in 2024
He specifically noted that negotiations over the Ebolowa-Kribi road
he gave orders for the rehabilitation of the Ngaoundéré-Garoua road and emphasized the need to keep pushing for the completion of the Mora-Dabanga-Kousséri road and the rehabilitation of the Edéa-Kribi and Douala-Bafoussam roads
The China First Highway Engineering Corporation (CFHEC) was selected to handle Phase 2 of the Yaoundé-Douala highway
which spans 136 kilometers and is valued at CFA812.8 billion
rehabilitation work was set to start in 2023 and expected to finish by 2027
This project is partially funded by the African Development Bank (AfDB)
Other significant projects include the Yaoundé bypass
which has a projected cost of CFA1,264 billion
and the Ebolowa-Akom 2-Kribi road (179.2 km)
The rehabilitation of the Ngaoundéré-Garoua road (242 km) is particularly vital to Cameroon’s economy
as it is part of the Douala-N'Djamena corridor
through which about CFA350 billion worth of Chadian goods pass every year
President Biya stressed that Cameroon needs substantial funding to achieve its goal of becoming an emerging economy by 2035
"Our goal is to build a stronger economy based on competitive local industries capable of transforming our mineral and agricultural resources to meet domestic needs and export in large quantities," he said
He urged China and its businesses to enhance their support to help realize this vision
He also expressed hope that ongoing talks with China’s Eximbank would lead to clear and straightforward financing agreements
avoiding any misunderstandings that could delay project execution
Biya acknowledged the importance of Chinese investments in Cameroon’s development
According to Cameroon’s National Institute of Statistics (INS)
trade between China and Cameroon reached CFA1,178.1 billion in 2023
China is also the largest investor in the country
Cameroon attracted an estimated $799 million in foreign direct investment (FDI)
ahead of the World Bank and the International Monetary Fund (IMF)
Cameroon repaid CFA148.2 billion in debts to Eximbank China
including CFA34.7 billion in interest and CFA113.5 billion in principal
These repayments were the largest amounts of debt and interest settled by Cameroon so far this year
according to the Autonomous Sinking Fund (CAA)
(Business in Cameroon) - Actions pulled in the mining sector by the government this year helped increase revenues from CFA4 billion in 2017 to nearly CFA5 billion
mines and technological development (Minmidt) said in an internal note
these actions mainly concerned the further dissemination of the Mining Code
implementation of which has made it possible to make some progress
particularly in revenue terms. Moreover
this year has seen the direct purchase of gold from artisanal miners
with projections of 40 kilograms by the end of the year and 120 kilograms from operators in the semi-mechanized craft sub-sector
Minmidt is optimistic for the coming months thanks to the development of mining sites
such as Akonolinga rutile deposit (500,000 tons) for which an international call for interest has been launched
the State is currently negotiating three mining agreements for the exploitation of the Akom II iron
A research permit was also issued for the bauxite deposit (provisional potential of 554 million tons) at Ngaoundal and Minim-Martap
(Business in Cameroon) - After its project of lead extraction from recycled car batteries
Bocom Recycling now moves to produce environmentally friendly roof tiles
The tiles will be made with recycled plastic waste which are abudant in Cameroonian streets
the tiles or “éco-tuiles” as they have been baptized
waterproof and help maintain an ambient temperature in houses they cover
it also specializes in the distribution of oil products
and mining and plans to operate an iron mine in Akom II by building a steel complex at Fifinda
of two contracts with two Italian and Canadian companies to build 188 km of road in the country
The first contract awarded to the Italian company ICM-CMC is for the construction of the 179.2 Km road linking Ebolowa
The asphalting of this road should facilitate transport from Ebolowa to the seaside town of Kribi
by suppressing the detour to Yaoundé that is currently imposed on travelers
The second contract is awarded to Canadian Magil and concerns the construction and development of certain structures
(Business in Cameroon) - The reasons for the creation
of the Cameroon Steel Manufacturing Company by Cameroonian industrialist Dieudonné Bougne
CEO of the Bocom group (distribution of oil products
During a site visit by the Minister of Mines in Fifinda
the CEO of Bocom revealed that he would soon build a steel-producing complex in this South Cameroon town
an iron enrichment unit as well as an estate for employees
which could thus become the first investor to develop industrial mining in Cameroon
says that it wants to exploit the potential of the iron deposit located in Akom II
where Cameroon Steel Manufacturing Company intends to establish its base
Though he did not reveal the amount of the investment to be made in Fifinda nnor the partners involved in this project
the CEO of the Bocom group however indicated that the profits accrued after the implementation of this project will enable his group to finance other projects currently being refined
The Akom II iron could become the very first to be exploited in the country
while awaiting operation on the Kribi Mamelles deposit (Southern region) by Chinese Sinosteel; the Mbalam iron
in the Eastern region by Australian Sundance Ressources; or the Nkout iron deposit
Minister of Economy Alamine Ousmane Mey has been authorized to sign a loan agreement for the construction of the Ebolowa-Akom II-Kribi road connecting Cameroon and Congo. The loan agreement will be signed with the Standard Chartered Bank London
despite ignoring for the time being the terms and conditions of this loan
this decree means that the parties have done all due diligence prior to the signature of the financing arrangement
the funds will be made available to the builder depending on the progress of the work on the road which opens the Congo to the port of Kribi
Africa director of the Italian company ICM Construction
who is in charge of building the 179.2 km road
Also Read: Partnership agreements inked for the construction Douala water distribution network in Cameroon
The contract stipulates that the Ebolowa-Akom II-Kribi road would be built over the course of 36 months
The project will amount to 122.4 billion FCFA (including tax)
The Italian constructor was required by the Standard Chartered Bank to abide by environmental regulations before agreeing to the financing terms required to begin the project
Deviating from the ICM schedule that predicted construction would start in the second half of 2022
The country’s head of state assured the citizens of the southern region
That the Ebolowa-Akom II-Kribi road would be constructed during the 2011 Ebolowa agropastoral forum
Following Paul Biya’s state visit to Italy from March 20–22
The eagerly awaited Ebolowa-Akom II-Ebolowa road will complete the Kribi-Congo Border route
The 74-kilometer Sangmelima-Mengong road is already under development thanks to Cameroon’s funding for that corridor
The route connecting Ebolowa to Sangmelima will make it easier to carry forestry resources from Congo to port of Kribi
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