CHAPTER ONE

1.1 GENERAL INTRODUCTION

This chapter serves as an introduction to the study, providing insights into the research problem, the chosen methodology, the set objectives, and the significance and rationale for the investigation.

1.2 BACKGROUND TO THE STUDY

Cameroon, with an estimated population of 23 million people, is the most populous country in Central Africa. It recognizes both French and English as official languages and is home to more than 230 diverse ethnic groups, each with its unique dialects. Notably, in 2008, the country underwent a significant change when the President of the Republic of Cameroon, President Paul Biya, replaced “provinces” with “regions” through a decree. Consequently, all ten provinces are now referred to as regions, marking a structural transformation in the country’s administrative setup.

The Anglophone community, comprising two out of the ten regions, represents the most substantial minority population. The ten regions in Cameroon include the Adamawa, Centre, East, Far-North, Littoral, North, North West, West, South, and the South West regions. Interestingly, Cameroon stands as the only country globally with two constitutions, each subject to the discretion of the ruling government.

Despite being the fifth-largest oil producer in Sub-Saharan Africa, Cameroon’s economy is heavily reliant on agriculture. While agro-processing constitutes a significant segment of its industrial sector, agriculture serves as the primary source of livelihood for over 60% of the population. It contributes approximately 23% to the Gross Domestic Product and employs two-thirds of the labor force. The nation’s staple foods, including yams, cassava, plantains, bananas, oil palm, maize, groundnuts, beans, potatoes, millet, sorghum, rice, and maize, vary by region based on climate and local cultivation.

In 1989, Cameroon initiated the implementation of a Structural Adjustment Program (SAP) as part of the World Bank and International Monetary Fund’s recommendations to address economic challenges. This program included financial sector reforms aimed at eliminating insolvent financial institutions and establishing a sound financial sector. While the reform program has been completed, it led to the emergence of new privately owned commercial banks in the Cameroonian banking sector.

However, the Competitiveness Report of 2011 classified Cameroon among the countries characterized as “factor-driven economies.” These economies rely on factors of production, such as natural endowments and low-cost unskilled labor, indicating inadequate diversification. As a result, nearly 65% of export earnings are derived from five commodities: crude oil, cocoa, coffee, timber, and bananas, exposing the country to international market fluctuations.

Tort law recognizes the capacity to harm a person or their property through negligence or intent, and it provides a legal framework to address negligent or intentional acts affecting a person’s business or livelihood. Without such legal provisions, malicious actors could inflict financial harm without accountability, while leaving individuals and their property unaffected.

Economic torts fall into two primary categories: procuring a breach of contract (sometimes categorized as ‘wrongful interference with a pre-existing right’) and causing loss through unlawful means. Conspiracy, while a separate tort, is often linked to the two primary torts of inducing a breach and unlawful interference, involving a group’s agreement to commit one of the primary torts.

An important point to note is that an economic tort will only occur if a breach of contract is induced or an unlawful act takes place. It is not based on harsh business practices alone, as evident in the case of Mogul Steamship Co Ltd v McGregor, Gow & Co. In this case, the courts rejected a claim for economic tort, emphasizing that the negative impact on the claimant resulted from the defendants’ actions as a side effect, rather than the primary intent. The exception to this rule is conspiracy to injure, discussed further, although even this exception is rarely applied.