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Image A recent investment forum in London showcased the many opportunities open to investors in Cameroon

 

A high level delegation of government ministers and business people led by the Prime Minister of the Republic of Cameroon addressed a gathering of business leaders and potential investors at the recent UK-Cameroon Investment Forum in the heart of London.

Organised by Developing Markets Associates (DMA) and the Foreign and Commonwealth Office (FCO), the Forum was intended to attract inward investment and foreign trade into Cameroon.

With a population of over 20 million, the Republic of Cameroon is often referred to as ‘Africa in one country’. Independent since 1960 and reunified since 1961, Cameroon has a diverse population and economy.  Cameroon has been rated by Moody’s as having a stable outlook and its government aims to improve the business climate and strengthen the state institutions.

In his welcome address, HE Nkwello Ekaney, the High Commissioner for Cameroon to the UK, spoke of the country as a stable place where business can flourish.

“Cameroon is the central hub of central Africa and has a track record of socio-economic stability,” he said.  “We are open to business and to partnership across a wide range of sectors.  We are a beacon of stability and the gateway to a central Africa market of more than 300 million consumers. We need more investment in physical infrastructure and the technical expertise for building a powerful economy fit for the 21st century.

Brimming with Opportunities

The partnership between Britain and Cameroon is one of long standing, said Mark Simmonds MP, Minister for Africa, as he welcomed the delegation and participants.  The country joined the Commonwealth in 1995 and bi-lateral trade continues to rise.  British businesses are in Cameroon across sectors including banking, oil and gas, mining and accountancy, he said. 

“Cameroon is the central hub of central Africa and has a track record of socio-economic stability…..We are open to business and to partnership across a wide range of sectors.” 

With a stable inflation rate and its position as a central point of entry into West and Central Africa, Cameroon provides a vital link between Anglophone and Francophone Africa and is home to the only commercial port serving three countries.

The country has seen a steady rise in its GDP, now at over 4% p.a., said the Minister, and is a country “brimming with opportunities for British investors”.  He encouraged the British business representative present to seize the opportunity to create partnerships with the visiting Cameroonian delegation as “the potential is phenomenal”.

Virgin Sectors

In his keynote address, Cameroon’s Prime Minister, HE Philemon Yang, spoke of the country’s goal for achieving economic emergence by 2035 through its Growth and Strategy policy and the important role that the private sector can play in helping to achieve this transformation.

“We have a first-rate framework of incentives and a legal and judicial system that is working well,” he said.  Cameroon, he added, offered “an opportunity for you to come to a country where you can speak English and French.  We are a cosmopolitan society and we have transparency in public affairs.  We provide a climate in which you can invest without fear and where the laws operate.  We have a Ministry of Public Contracts and you can do business without bribing anyone in my country. We also have a press which is free.”

The Prime Minister stressed that investors are spoilt for choice when it comes to deciding where to invest.  “All the sectors in Cameroon are practically virgin.”

He spoke of the country’s targets and its ongoing robust and sustained growth, expressing confidence that Cameroon would soon achieve double digit growth.

“30% of our revenues are put into public investment,” he said, pointing out that this was not enough to move the country forward, hence the need for inward investment.

Cameroon shares a 1500 km border with Nigeria from north to south, providing direct access and proximity to a market of almost 200 million inhabitants.  Cameroon ranks second in Africa for hydro-electric power and has a further three hydro-electric dams under construction as well as a deep sea port which is almost completed.

While his country’s public sector has worked extremely well, the Prime Minister said, “all economies that are doing well have a preponderant private sector.”

“The incentives we are putting in place are for the benefit of the private sector,” he explained.  “New laws enable investors to repatriate profits, benefit from reduced initial taxes and access to economic zones for investment and export.”

The Prime Minister’s delegation to the UK included his Ministers for Tourism, Mines, the Economy, Finance, Agriculture, Public Works, Energy and the Commonwealth, reflecting the extreme importance the government attaches to sourcing external investment and reassuring potential investors.

“My President believes in a liberal economy and you will never be afraid of nationalisation,” he said.  “We know where we are and we know we are going in the right direction.”


Streamlined Processes

In his presentation to delegates, the Cameroonian Minister for Economic Planning and Regional Development, HE Emmanuel Nganou Djoumessi, stressed that this is the moment for investing in his country. 

Image With four international airports, extensive oil exports and as the source of the world’s fourth largest reserve of cocoa and the second largest in Africa, Cameroon offers political stability, social peace and a strong legislature, he said.

He referred to the country’s anti-corruption commission set up to combat money laundering as well as the sustained 5.5% GDP growth and controlled inflation at around 3%.  The country’s growing middle class sits within a working population of 54%.

The Minister referred to laws passed in 2013 which have streamlined procedures for setting up and operating a business and set out special incentives for some priority sectors including agriculture, tourism, real estate and energy, ensuring Cameroon’s economic prospects are bright and have improved international credibility.

“We offer generous provision to investors – residence and work permits, visas for investors, customs incentives and rebates on taxes, including VAT, and customs duties and foreign exchange bank accounts for business. We allow a free transfer of dividends and of profits upon disinvestment.”

Trade, Not Aid

It will be trade, and not aid, that will be Cameroon’s main support for development, said the country’s Finance Minister, HE Alamine Ousmane Mey.

“This is the moment where the private sector should take the lead,” he said in his presentation to delegates.  Citing the country’s debt level as less than 30%, the Minister stated that the government has been able to maintain a balanced budget with 30% of its resources allocated to supporting public structures and supporting the private sector.

“We are modernising our administrative processes and reforming our administration,” he said.  “Today we have 13 banks and a growing capital market.  But we need more.  We need private equity, long-term finance and capital markets.”

Pointing out that Cameroon has huge natural resources and qualified human capital, the Minister said that, with investment, the country will be in a position to develop further.

One-Stop Shop for Investors

In his presentation, Donatus Boma, the Deputy General Manager of the Investment Promotion Agency (IPA) explained that the Agency is one of the key structures responsible for translating policies into day to day operations for companies in Cameroon.

Created in 2005 and operational from 2010, the Agency works under the supervision of the Ministry of Mines and the financial supervision of the Ministry of Finance.  It acts as a one-stop shop for investors and an interface between investors and the government.

The Agency performs five key roles:

  • Investment Licensing – granting and following up on investor commitments under the licensing system, including work permits, visas and environmental compliance licenses.
  • Investment generation
  • Investment facilitation and support
  • Database of investment opportunities
  • Policy advocacy on investment and engaging government in improving the business climate in Cameroon.

ImageThe IPA supports investors across a range of services, including arranging appointments with relevant government ministers and providing preliminary information on investments.  It also links potential investors to local partners, helping right through the process.

Cameroon recognises the particular contribution that SMEs make to the economy and, along with a Minister for SMEs, there is also an IPA for SMEs in Cameroon that follows the same processes.

With UK companies such as Diageo, Glencore Exploration, Ernst & Young, BAT, Standard Chartered and Glaxo Smith Kline already operating in Cameroon, the ministerial delegation was keen to show that the country is getting the key building blocks in place to enable it to reach its growth targets and economic emergence.

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