PRIVATIZATION OF STATE-OWN CORPORATION AND WELFARE OF WORKERS IN CAMEROON: A CASE STUDY OF DEMONTE TIK

ABSTRACT

The study titled Implications of the privatization of DEMONTE TIKO on TIKO Economy. The study spans from Oct 2022 – MAY 2023. This study examines the Geographical location of Tiko

Sub – Division and DEMONTE TIKO and Geographical element which favored the Growth of

Tea in this area, the origin of Ndu Tea Estate before privatization, equally reasons for

DEMONTE TIKO privatization by the government, circumstances surrounding DEMONTE TIKO privatization, terms of privatization contracts, the governance of new ownership (CTE), the Impact of DEMONTE TIKO privatization on the community.

This study makes use of primary and secondary sources, the primary sources comprised mainly on interviews conducted with DEMONTE TIKO workers and secondary sources were obtained mainly from published and unpublished works like articles, journals, book chapters, and internet sources.

Results revealed that privatization has slowed down development prospects of the area massively because of low payment, the privatization of the estate has led to the under evaluation of the Estate, workers face problems of job insecurity, inadequate social facilities like insurance, retirement benefits among others, contrary to what was obtained during the days of CDC, also  small holders scheme of Tea have been abandoned.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

According to Alain Griffith in Applied Economics, privatization is an economic concept which means the transfer of asserts or economic activities from the public to the private sector. Hartley and Parker further defined privatization as the introduction of market forces in an economy in order to make the enterprise work in more commercial base. No matter the impression people have about privatization it all boils down to one thing, which is, the transfer of asserts or services from the government to the private sector. Privatization does not necessarily mean complete transfer from government to the private sector, this means the government can house 40% to 45% share to regulate the privatized property.

Thatcher’s Government of Great Britain made privatization popular in the early 1980. Since then, it has attracted global acceptance for instance since 1979 it has been estimated that 700 different enterprises around the world had been privatized. Though Thatcher has made privatization popular, reference has been made to Ancient Near East that is, Greece during the Chin Dynasty to have been the cradle of privatization¹. In Africa between the 1960 and 1993

African government over 100 countries earn some 328billion as sales of public enterprises. In Cameroon, as stipulated on the article four (4) of the Ordinance of 22 June 1990 Cameroon government embraced privatization. Privatization in Cameroon is motivated by two main factors; Firstly, most enterprises were owned by the state examples National Oil Refinery (SONARA), National Electricity Corporation (SONEL), Cameroon Development Corporation (CDC) because of government control of these enterprises, mismanagement, corruption, embezzlement and lack of sense of direction leading to improper functioning of the enterprises.

Secondly, the mid 1980 Economic hardship caused a drop in the prices of basic revenue generating commodities like oil, cocoa and devaluation of CFA crumbled the economy. In order to solve this privatization was a solution and the government of Cameroon decided to take the device of the Brettenwoods institutions and introduced Structural Adjustment Program (SAP) in

1998. Because of this, the Cameroon government privatized CAMAIR, CAMSHIP, HEVECAM,

SOCAPALM, SONEL, SNEC, and CDC amongst others. Which led to the privatization of Tea

Industry in Ndu, Djutisa and Ndu from Cameroon Development Corporation (CDC) to Cameroon Ndu Tea Estate (CTE).

After the privatization, the CDC Tea Estate, which is composed of Ndu Tea Estate, Djutisa Tea

Estate and Ndu Tea Estate became the Cameroon Tea Estate (CTE) and actually took off on October 18^th, 2002. The controversy, which surrounds the privatization of the CDC Tea Estate and Ndu Tea in particular which is the main focus of study has caused enormous privatization crisis, leaving out scars, shattered dreams, mixed with frustrations and strike actions the order of the day.

1.2 Statement of the Problem

In the days when tea was controlled by CDC, workers were given a lot of facilities such as retirement benefits, family allowances, attendance benefits and leave payment, basic commodities such as palm oil and kerosene, free health care etc. but now, under CTE, things are not more the same. There is frequent conflicts between CTE and its workers on land disputes and also demotion of workers is a normal issue which has led to frustration because of no clear cut to workers after retirement.

There has been a drastic drop in the quantity and quality of tea products or outputs in Demonte tiko. Reduction of number of workers, unwanted crimes in the area. In the days of CDC, tiko witnessed a boom in social development and economic because of good health, higher education especially workers children, with the coming of CTE, things deviated from the normal pattern. 

Tea is becoming scarce because the CTE Company is no longer processing tea with trademarks in the name of CTE Demonte but prefers during the days of CDC, the company encouraged small-scale holders but now there is little or no encouragement to small-scale holders of Tea.

1.3 research question

• How privatization has affected the workers of the estate as well as general consequences on the entire tiko subdivision?
• What is the rationale behind the privatization of Demonte tiko by the government?
• What are the majors that can be put in place to ameliorate the situation?