Major projects Agriculture Energy business in Mining Industry Services Finance March 2013 - N° 02 March 2013 cameroon
P 22-23 FANAF 37th G.A. “We challenge members to honor the claims of victims, our major role”
P 6-8 South-West Region “Rich in fishery, forestry and wildlife resources, the region is an ecological paradise”
Roads: towards “200,000 formal sector the end of the jobs will be created in
nightmare? P 16-17 the year 2013” P 18 Be a part of building tomorrow’s Cameroon
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Colonial to contemporary
resident Paul Biya’s visit to France size up inputs the French can offer in the moder- between January 27 and February 7, nization process of its economy. Employment for 2013, at the request of the influential young qualified and ambitious Cameroonians, PMEDEF federation, the nation’s largest for instance, remains a perennial problem that union of employers, opens a new page in the eco- investment can resolve. But in drafting agree- nomic relations between our two countries. ments, selfish interest must be dumped, because Until proven otherwise, France remains the first otherwise new investments by French business investor in Cameroon but is restricted to specific persons will benefit only a few in Cameroon. areas historically linked to colonial time. France Years of tears and sacrifice, when Cameroon has remained present mostly in areas it had in- was placed under the Heavily Indebted Poor vested in while colonial master or just after the Countries Initiative (HIPC), are now over. And, independence of our country. It is time for France regardless of the bad publicity from individuals to adventure into other sectors and modernize and organizations armed only with arrogance and existing investments. If there is a time for eve- untruths, Cameroon remains a manageable risk, a rything, then now is the time to give an opportu- country with which investors that are already pre- nity to enterprises born in the new millennium to sent want to reconnect and discover the plethora invest in Cameroon, land of promise and glory. of available business opportunities. Consequently, it was of outmost importance for Opportunities exist in the infrastructure, manu- President Biya to converse with and convince facturing, education, health and governance French industrial tycoons that Cameroonian eco- sectors, without forgetting the new agricultural nomy has never been in a better state, despite a policy as elaborated in the GESP (Growth and difficult international environment. Employment Strategy Paper). French tycoons jumped on this once-in-a-blue- The business environment has improved in moon opportunity to deliberate and propose Cameroon, thanks to reforms in favor of good their offers to the president himself. A queue of governance and the fight against corruption. Fur- investors in Le Meurice hotel, where President thermore, reflections in communion with the pri- Biya granted audiences, a sign of confidence in vate sector are underway to develop a new system Cameroon’s economy. of more attractive tax incentives. Cameroon, a developing country, cannot com- pare with an economic giant like France, but can Jude Viban
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March 2013 / N° 2 -3- business in cameroon Contents
34Colonial to contemporary 144A 20 MW Modulation Plant in Douala is Imminent 64Dr Ernest Lytia Molua: “There Is Huge Untapped Potential in the Agricultural 144300,000 Liters of Gasoil to Kick Start 72 Sector in the South-West Region of Generators of Yaoundé-Ahala Thermal Cameroon” Plant
94140 Cocoa Ovens Refurbished in the South- 154Adulteration of Fuel in Yaoundé Drops by West Region 58 Percent in Two Years
94Italian Company Announces Chocolate Company in Limbe This Year
94IMSOFAR Plans Transformation of Tea and Coffee in Cameroon
154WAICO Ltd Wants to Build an Oil Pipeline to Inter-Connect Cameroon’s Cities
164CFAF 85.75 Billion to Build Kumba - 104AfDB Offers CFAF 314 Million to IRAD Mamfe Road for Seed Production 164CFAF 500 Million to Repair Flood 104Price of Irish Potatoes Soars Damages in Northern Cameroon 114Over CFAF 3 Billion to Save Mangroves 174Rehabilitation Work on Yaoundé- in Cameroon Bafoussam-Bamenda Road at 35 Percent 114Climate Change Impacts Water 174CFAF 32.8 Billion for Yaoundé Municipal Availability in Cameroon Lake Makeover 124ART Rejects MTN and Orange 184Biya Projects 200,000 Jobs in the Formal Interconnection Tariffs Sector this Year 124Canal Sat Connects to Orange Money 184Giant Projects in Cameron Cost 23.22 124MTN Backs Professional League with Billion Dollars CFAF 654 Million 194South African Company, Ruhanique 134Katsina Ala Dam Project Enters Second PTY Ltd to Invest CFAF 12 Billion in Phase Cameroon
-4- March 2013 / N° 2 business in cameroon
194L’Edifice Capital Prepares an Investment 254CBC Bank in Restructuration Envelope of CFAF 130 Billion for Cameroon 264Cameroon Will Borrow CFAF 250 Billion from the Capital Market in 2013 194NEF has Helped About 240,000 Youth to Find Salaried Jobs 264AfDB Lobbies for a Drop in International Transfer Charges 204Local Real-Estate Developers Ready to Use Local Materials in Construction
204G Power Cement Starts an 800,000 Tons Cement Plant in Limbe from March 2013
214Price of CICAM Fabrics Doubles
214Work at Ebolowa Tractor Assembly Plant Advances 274BDEAC Gives CFAF 500 Million for 214Customs Collects CFAF 50.6 Billion in Refinancing of MFIs to FOFIDES January 274“La Regionale Microfinance” Celebrates its 20th Birthday
284Onomo, the International African Hotel Chain, Opens Kribi Unit Soon
284Qatar Airways Preselects 120 Female Cameroonian Hostesses
284Robert Nkili Promises Tough Sanctions 224Insurers Focus on Compensation Against Inter-Urban Travel Agencies Gaps at 37th General Assembly of FANAF 294Cameroon and EU Train Independent 234Yaoundé to Host International Institute of Auditors on Logging Insurance 294World Bank Launches Cameroon Mining 234Christophe Mien Zok Becomes Director sector Technical Assistance Project General of Yaoundé Conference Centre 294Six New 2500 Horse Power Locomotives 244Chanas Assurances Wants to Increase its on CAMRAIL Rails Social Capital in 2013 304AFD Disburses CFAF 5 Billion for 244NSIA Becomes Camair-Co’s Automobile Agriculture, Fishing, and Livestock Activities Insurer in Rural Areas
244AGC Insurance Sacks General Manager 304PNDP to Grant CFAF 11,489 Billion to Councils in 2013 254Cameroon Creates a “Guarantee Fund” for SMEs
March 2013 / N° 2 -5- business in cameroon Agriculture
Dr Ernest Lytia Molua: “There Is Huge Untapped Potential in the Agricultural Sector in the South-West Region of Cameroon”
The South-West region of Came- Dr Ernest near-temperate climate at the foot L. Molua, an of Mount Cameroon and the tropi- roon has historically been attrac- Agricultural tive to investors, from colonial Economist cal climate along its coastline make explorers to modern day nationals and Senior the region conducive for locating Lecturer at business endeavours. seeking profitable investments. the Faculty Dr Ernest L. Molua, an Agricul- of Agricul- ture and BIC: It would appear that the re- tural Economist and Senior Lec- Veterinary turer at the Faculty of Agriculture Medicine gion is rich in all sectors of the and Veterinary Medicine of the of the economy; can you please examine University sector by sector, the benefits there- University of Buea, examines ex- of Buea isting investment opportunities in in for an investor? the region. ELM: From the fertile volcan- ic soils in Fako to the rich clayey Business in Cameroon: Dr Mol- soils in Manyu division, the region ua as a seasoned economist and manpower. The climate is attrac- is conducive to the exploitation of someone who hails from the South tive to diverse agricultural com- diverse agricultural commodities West region, if you were asked to modities. The human capital and and plantation crops. The abun- advertise the region to someone richness of the earth, coupled with dant rocky materials churned out who has never been here, what abundant land resources, makes from the active volcano of mount would you say to leave a lasting this region attractive to both large- Cameroon provide abundant po- impression? scale and small-scale intensive agri- tential for quarry enterprises and Dr Ernest L. Molua (ELM): The cultural businesses. Rich in fishery, the production of building materi- South-West region represents Cam- forestry and wildlife resources, the als and cement. The rich flora and eroon in miniature, with a complete region is an ecological paradise. fauna make this region a heaven for package of Cameroon’s ethnic and Only a fort-minute drive from the ecotourism and for anyone wishing cultural diversity, and ecological sea and the airports of Douala, it to invest in the tourism subsec- riches. Home to academic institu- is an ideal location for export-ori- tor. The growing population, at a tions and colleges of colonial herit- ented investments, particularly rate of more than two percent per age, this region trains high quality in the manufacturing sector. The annum, means the consumer pop-
-6- March 2013 / N° 2 Agriculture business in cameroon
mountain tops and marine estuar- ies, constitute excellent ecological conditions for horticulture, wheth- er it is fruiticulture or floriculture. Given the proximity to the Douala Airport, flower-based enterprises would be better placed to exploit the export market and the ever-surging demands of the European market. The recent Economic Partnership agreement between Cameroon and its European partners (EPAs), and even the opportunities offered by the United States’ African Growth Opportunity Act (AGOA), mean that there is tacit authorization for Cameroonian exporters to exploit these lucrative markets. And no re- gion in the country is better placed than the South-Western to exploit the huge potential for new and emerging commodities in our trade market, such as flowers.
BIC: The South-West region is a naturally blessed region, but it takes more than this to attract an investor especially available hu- man resources. Can the region ulation is growing steadily, as also there is huge untapped potential Mountain boost its labour potential? view from the demand for services provided in the agricultural sector. The Ger- Buéa. ELM: The accessibility of the re- by education related enterprises, as mans never optimized the exploita- gion from the other neighbouring well as in health, real-estate and lei- tion of land resources in the region. regions, offers an impetus for the sure sectors. More importantly, the The state of Cameroon, through its geographical mobility of labour. region borders the 150 million-man agro-allied parastatal of the Cam- Some colonial enterprises already market of Nigeria, the strong pur- eroon Development Corporation tapped into this ability to move chasing power markets in Gabon (CDC), has yet to maximize its and Equatorial Guinea, and hence full potential. Even the commercial offers huge incentives for investors farms in the other divisions of the Rich in fishery, wishing to produce in-situ, yet ex- region are all operating below max- ploit the African regional market. imum capacity. There is abundant forestry and wildlife The training of young men and land. The biogeographical features resources, the region is women in more than a thousand are excellent. There is still room schools and colleges provides an for expansion. And the increased an ecological paradise. army of quality personnel for any urbanization of the larger towns ICT enterprise, and the proximity and satellite peri-urban localities to the undersea IT cable along the implies potentials for the expansion labour. The modern Cameroonian Atlantic Coast brings with it huge of existing enterprises and room for state, further encourages this mo- potential for IT related-businesses. daring entrepreneurs wishing to in- bility, with an improved road net- vest in the region. work linking the region with other BIC: Agriculture seems to be the parts of the country. The teeming flag bearer of the region. The sec- BIC: More to the point, is there population and the increased schol- tor already has major investments any chance of growing other crops arization in a blossoming of qual- in the palm, rubber banana, cocoa aside from the traditional crops ity-conscious schools, colleges and farms, etc. It looks like the sector now being grown in region such as professional institutions across the is already saturated: do you share flowers, for example? region translate into a sustained this opinion? ELM: The climatic features of the production of manpower. Colleges ELM: No, no, no. On the contrary, region, from its hills and valleys, which are more than fifty years old
March 2013 / N° 2 -7- business in cameroon Agriculture
are getting better at training Cam- force. There is a surge in banking mendous benefit to national in- eroonians in the region. Any inves- institutions in the region, some come, if the government amassed tor will be inundated with quality foreign-owned commercial banks, courage and brought to fruition the applicants to fill positions in their others new branches of indigenous Limbe deep-sea port project. The enterprises. commercial banks and microfi- Limbe seaport would complement nance institutions at the service of the Kribi seaport, in the sense that BIC: In order to attract investors, entrepreneurs with lucrative pro- bulky commodities exploited from governments as well as local au- jects. Their presence has been facil- the south-west, north-west and thorities play a key role. In your itated by the renewed commitment western regions could be shipped at opinion, what are some of those by the government and the local a faster rate and a lower cost, com- commitments these authorities authorities to create a favorable at- pared to the Douala Port, which need to show proof of, in order to mosphere for the financing of busi- furthermore requires annual ex- encourage the entry of investors ness ventures. penses for its drainage. The Limbe into the South-West region? seaport would also supplement the ELM: The regular maintenance BIC: Before we take leave of you, Douala seaport, in that larger car- of the Limbe - Douala Highway, the Douala seaport is an important go ships could dock in Limbe, and and the tarring of the Buea-Kum- entry-and exit-point of goods to the proximity of Limbe to Douala
ba highway are a testimony to the and from the South-West region, Limbe’s would mean an inherent syner- coastal government’s efforts to facilitate but importers and exporters could asset is gy between these two coastal cit- the movement of goods and peo- cut transport costs if the Limbe key to the ies. The development of this asset ple. The sustained efforts to crack deep-sea port was developed. To future of would attract large manufacturing the south- down on crime and to protect lives this effect, the construction of this west region and ship-building enterprises. Re- and property through an ever vig- port and other infrastructure of alizing Cameroon’s vision of an ilant police force and the rapid in- the same nature could woe invest- emerging economy by 2035, will terventions of the military brigade ments: what do you think? require the construction of these headquartered at Man-o-War Bay ELM: In the past, Limbe’s coastal seaports and wharfs, which should near Limbe, show the government’s asset was appreciated by colonial- be allowed to operate in tandem resolve for the reign of peace and ists, who shipped raw materials and for optimal development and to fa- order. The expansion of the Univer- imported consumer goods through cilitate trade-assets which were the sity of Buea, with new profession- this port and the satellite Tiko and bedrock of the Asian tigers. ally-oriented faculties and colleges Idenau wharfs. These assets in their training younger citizens, means rudimentary state still serve local Interview by Jude Viban a sustained renewal of the labour communities, but could be of tre-
-8- March 2013 / N° 2 Agriculture business in cameroon 140 Cocoa Ovens Refurbished in the South-West Region
Handed to farmers during a ceremo- the government’s determination to boost ovens were renovated. ny in Bafia, a locality in Muyuka, on cocoa production, and to put cocoa of ex- Recently, 2000 tons of cocoa from Ca- February the 5th, 2013, this is part of a cellent quality, at the disposal of the inter- meroon were shipped back from Euro- hands-on effort by the Cameroonian national market,” the Minister observed. pean ports because of quality concerns. authorities to raise the awareness of and to support farmers, in a bid to help them These new ovens will absorb smoke The refurbishing operation constitutes a to “adopt better farming methods,” accor- while the cocoa is being dried. The mi- collaboration with the National Coffee ding to the Minister of commerce, Luc nister also added that the move should and Cocoa Board. Magloire Mbarga Atangana. be considered as a first step. Of the 2500 existing ovens in the South West, only JV “These rehabilitated ovens are proof of 140 were refurbished. In Bafia alone, 50 Italian Company IMSOFAR Plans Announces Transformation of Tea and Coffee in Chocolate Cameroon Company in Limbe This Year
The Director General of IMSOFER SA, Giovanni Schettino, the local company of the Italian Ferrero Group, fourth cocoa IMSOFAR, the local unit of the Italian chocolate manufac- buyer in the world, made the announcement after an audience turer, FERRERO says it has plans to transform Cameroonian with Prime Minister and Head of Government, Philemon coffee and tea in Cameroon. This information was contained Yang, on February the 7th, 2013. in a press release published in the Cameroon Tribune on Fe- bruary the 20th, 2013. The company’s current undertakes in Yaoundé employ ap- Besides, there are also plans to transform Cameroon cocoa proximately 200 personnel since 2005, the DG disclosed. here, and the company will reinforce cooperation with cocoa farmers to secure the needed amount for their planned fac- M. Schettino also disclosed that the group is committed to im- tory, said Giovanni Schettino, the General Manager. proving the living conditions of the people in the areas where Opened in Yaoundé in 2005, IMSOFAR produces Kinder, Tic it operates. The Ferrero Group has factories in South Africa, Tac and Ferrero Rocher, products found in local stores and ap- Cameroon and India. JM preciated by Cameroonians, according to the press release. AE
March 2013 / N° 2 -9- business in cameroon Agriculture
AfDB Offers Price of Irish CFAF 314 Potatoes Soars Million to IRAD for Seed Production
Potatoes on display at the Mfoundi market
In markets around Yaoundé, the price of a 120-kg bag of Irish potatoes, now sells for between CFAF 32,000 and 34,000, a sharp increment from the 24,000 francs CFA of last November. Meanwhile, buckets of 5L and 10L sell at CFAF 1,500 and 2,500 respectively, instead of 1000 and 2000 francs CFA. Worse, the heap costing CFAF 200 no longer exists. The objective of the African Development Bank (AfDB)’s pac- kage is to enable the Institute of Agricultural Research for De- “It’s a seasonal problem: Irish potatoes are farmed mostly during velopment (IRAD) to boost the production of maize, cassava, the rainy season,” explains the Coordinator of the government- yam, Irish potato, cocoa, palm oil, and fingerlings. run Irish Potatoes support programme, Eveline Ouokam, thus linking the price increase to a cut in supplies. “Consumers Expected to boost agricultural production and productivity, to should not expect an immediate drop in prices,” she warns. reduce the cost of seeds and to alleviate poverty, the funding was raised thanks to the support of the bank’s major stakehol- Vendors also blame the increase on transports costs. “Farmers der, Nigeria also Cameroon’s leading trade partner. have difficulties due to lack of water, plants are also attacked by diseases and insects, and this reduces production,” according to In 2004, AfDB funded part of the rehabilitation and equipping Honore B. a vendor in the Mfoundi market. “April, May and of IRAD’s soil laboratory and computer centre. June are the months of optimal production, because of the heavy rains,” he adds. Meanwhile, 10 executive directors are expected in Cameroon as from March the 10th, 2013, to inspect projects the bank has Irish potatoes are farmed in the North-West and Western re- sponsored in the country, AfDB’s executive for the Central gions of the country. Africa Group Emmanuel Ngoy-tha told Cameroon Tribune. JM JV
-10- March 2013 / N° 2 Environment business in cameroon
Over CFAF 3 Billion to Save Mangroves in Cameroon
Authorities want a sustainable manage- 2500 hectares of mangrove have di- ment and conservation of the mangrove sappeared annually during the last ecosystem. Of the 3 billion francs CFA, two decades. Cameroon has preserved the World Environment Fund, grouping 195,000 hectares of its mangrove eco- 182 countries, will give 800 million francs systems. CFA to the project dubbed, “Community sustainable management and conserva- According to a 2009 study by Ulrich tion of the mangrove ecosystem in Camer- Waffo of Yaoundé I University, 5000 oon.” The government of Cameroon will tons of fish is fished in the mangroves – give 700 million francs CFA. Cameroon bossu, bar, mulet, machoiron are some Wildlife and Cameroon Ecology will do- of the types most sought after by consu- nate 445 and 350 million francs CFA res- mers. pectively. Meanwhile, the United Nations Food Agricultural Organization (FAO) Regrettably, local inhabitants use the will give 200 million francs CFA, while mangroves as fuel, thereby degrading FAO-Cameroun will finance preliminary the resource. studies. AE Climate Change Impacts Water Availability in Cameroon The Minister of Environment, Nature Protection and Sustainable Develop- ment, Pierre Hele says that climate change, a nagging problem for the go- vernment, has a negative effect on the conservation of water. He made the sta- tement in Yaoundé, as he chaired com- memorative activities ahead of the 2013 World Wetlands day in February, on the theme, “Wetlands: Protect our waters wet.”
A challenge facing Cameroon and other countries, according to him, is the worldwide phenomenon of climate The Minister of Environment, Nature Protection and Sustainable Development, Pierre Hele change, which is affecting all spheres of life, including water resources. trees, which is a good step in managing Water is a determinant factor in the “This means that as we are struggling to water. It seeks to stop the desert from country’s fragile ecosystem and must conserve our current resources, climate advancing, but also to retain some water be constantly protected for posterity, change comes in to reduce the volumes of in the soil by covering the surface,” the according to the Focal Point of the Ram- water that we have around the world,” the Secretary General at the Ministry, Akwa sar Convention in Cameroon, Serge On- Minister said. Patrick Kum Bong revealed. doua. Local councils need to integrate water management in their commu- To combat this, efforts are ongoing to “The challenges are there, the initiatives nal plans in order to curb the ravaging make water adequately available in dry are also there, but we don’t have the effects of climate change, advised Mr and wet regions. “In the north, we have means to act as we would have wanted,” Ondoua. a Green Sahel Project for the planting of he added. JV
March 2013 / N° 2 -11- business in cameroon Telecom
ART Rejects MTN and MTN Backs Orange Interconnection Professional Tariffs League with In the catalogue presented by MTN to CFAF 654 the Telecommunications Regulatory Board (ART), the company proposes the Million following rates: 32 F/min during normal time and 30 F/min during the night and On Wednesday, January the 30th, 2013, 10 F for an SMS, the same as Orange. MTN, a mobile telephone company in But ART fixed the cost for a voicemail Cameroon, and the National Professio- at 25 F and a significant upper limit for nal Football League, signed a conven- the cost of SMS. ART also wanted the upper limit of the cost to be at 27 F, in comparison to the international rates. Rates that the mobile telephone opera- tors failed to respect, hence the rejection by the regulatory authority on telecom- munications. AE Canal Sat Connects to Orange Money tion on the sponsorship of football clubs. The convention, which concerns D1 and D2 clubs, will see these clubs receive a total of 654 million francs CFA.
Each club of the MTN Elite One will receive CFAF 24 million, while clubs of MTN Elite Two will be given CFAF 14 million francs each. Part of the sponsor- ship agreement concerns sports equip- ment that clubs will receive from MTN. Karl Toriola, the Director General of MTN signed the convention on behalf of his company, while General Pierre Semengue, President of the National Football League, signed on behalf of his Canal Sat subscribers in Cameroon can sales points to pay their bills. institution. now pay their bills through their mobile The two general managers of Orange phones, a revelation made at a press Cameroun and Canal Sat Cameroun, Among other things, the convention conference at Akwa Palace Hotel in Jean Bardet and Jackson Njike were pre- stipulates the attribution of three excel- Douala on January the 29th, 2013. sent at the ceremony. lence prizes to be awarded to clubs that Through Orange Money, clients of the Orange Money is a service launched in will have distinguished themselves in two structures will be able to dial a September 2011, and has about 700,000 the area of sports performance and pro- simple code, #150*35# from any loca- clients spread across the country, served fessional organization during the foot- tion, thus saving significant time com- by 400 agencies and licensed partners. ball season. pared to the visiting of various Canal sat JV JV
-12- March 2013 / N° 2 Energy business in cameroon
Katsina Ala Dam Project Enters Second Phase
After pre-feasibility studies that end- of construction work.” states Mark ed in 2012, the project’s executor, Green, President of Joule Africa Ltd Joule Africa Ltd, is about to enter the and Director of operations. second phase of the project, follow- ing an agreement of development Although the development agree- recently signed with the govern- ment is already in place, the major ment. The dam is to be built over challenge facing the various parties the river Katsina Ala, located in the is the access road to the project. Furu-Awa sub division, Menchum This catch could soon become a division of the North-West region. nightmare for the completion of The dam Likewise, the company is also con- feasibility and bankable studies. will be cerned with the project’s benefits construc- The project’s development agree- ted by to the local community. “Consul- ment follows a memorandum of For the building of infrastructure, Joule Africa tations were carried out with the over the understanding signed in January Joule Africa Ltd, an international Katsina local communities of the Furu-Awa 2012, and the completion of “sat- company with offices in London, Ala river in and Fungom divisions (areas to be isfactory pre-feasibility studies,” ac- Yaoundé and Freetown, would northwes- affected by construction) in order tern Came- cording to a joint press note from work in partnership with the Cam- roon establish a social programme,” reads the Ministry of Water and Energy eroon government (represented by the communiqué. and Joule Africa Ltd. the Ministry of water and energy, MINEE), and its technical consult- Authorities are confident that this The river which runs near the Kpep ant in hydraulic engineering, Lah- project would resolve the energy village has a total capacity which is meyaer International (GMBH), to shortage equation currently facing estimated at 850MW, with 450MW carry out these new studies. the country. At the moment, in- expected after the first phase of the dustries function under capacity, project, according to pre-feasibili- During the last 12 months, Joule the country fails to attract large in- ty studies, and would cover out as Africa Ltd has carried out several vestors, and many households are much as 40% of the present na- field trips to the project site. The without electricity. “We are happy tional needs. The second phase of enterprise intends to evaluate the with the rapid progress made by Joule Africa this far, and this new agree- ment would establish a solid base for The River found near the Kpep village has a the next phase of the project … we total capacity of 850MW with an additional are confident that this new project (the Katsina Ala hydroelectric dam) 450MW expected after the first phase of would be a major drive for the produc- tion of electricity for the nation,” Dr the project. Basile Atangana Kouna, the coun- try’s Minister of Water and Energy the project is expected to end this needs of the population affected said in a statement about the project. year, and if the situation remains by the project. A recent evaluation unchanged the project could be of the zone’s needs helped the con- Joule Africa Ltd specialises in the completed by 2017. tractor to “identify social activities development of renewable energy which offer additional advantages projects. Working in Sub-Saharan “We will subsequently start final- in terms of development of project Africa, the enterprise is also pres- izing the legal and financial instru- area surrounding supported by the ently working on a 200MW exten- ments with the government of Cam- enterprise,” the communiqué fur- sion of the Bumbuna hydroelectric eroon in order to allow for the start ther states. project in Sierra Leone. JV
March 2013 / N° 2 -13- business in cameroon Energy A 20 MW Modulation Plant in Douala is Imminent Basile Atangana Kouna, Minister of Energy and Own and Operate”, declared the Minister, if the Water, made the announcement during a New project in the economic capital yields the desi- Year ceremony on Tuesday, February the 19th, red results. 2013 in Yaoundé. Furthermore, the Ministry of Energy and Wa- Although the project is still in the pilot phase, ter will undertake a project to reduce the use the Douala plant will ensure the rational use of of electricity in public buildings, distribute 9.6 Basile Atangana Kouna, scarce energy, and will be extended to other ci- low consumption bulbs and 3.2 million solar Minister of Energy and Water ties in the country, based on the model “Build, lanterns to Cameroon households in 2013. JM
300,000 Liters of Gasoil to Kick Start 72 Generators of Yaoundé-Ahala Thermal Plant Tradex trucks carrying gasoil crossed the threshold of the thermal plant, on Wednesday February the 12th, 2013 in late afternoon, the Cameroon Tribune said quoting, Issac Minyee, the manager of the plant. Bringing an additional 60 megawatts to the table, “this plant will be operational by this evening,” he confirmed. “After this supply, Tradex will continue to produce the needed gasoil,” he added.
The Ahala plant, which stopped functioning by December 2012, will no longer function only from 4 to 10pm, but will run during the whole day, until the Kribi gas-powered plant becomes operational this year, the newspaper stated.
Since 2011, when the plant was first put into use, it has already consumed eight million liters of gasoil. AE A Tradex gas station in Cameroon
-14- March 2013 / N° 2 Energy business in cameroon
Adulteration WAICO Ltd of Fuel in Wants to Build Yaoundé an Oil Pipeline Drops by 58 to Inter-Connect Percent in Cameroon’s Cities Two Years The West African partner of the Petroleum products transpor- tation investors, grouped under Petroleum Product Pipeline S.A, wants to connect Limbe-Douala-Edea-Kribi-Yaounde- Bafoussam and Bamenda with an oil pipeline.
Authorities from these companies, accompanied by the Hono- rary Consul of Korea to Cameroon, Mohamadou Dabo, brie-
Sayyu Dantata, Chairman of WAICO Ltd with prime minister of In 2010, a Non-Governmental Organization, Bonne Nouvelle, Cameroon Philemon Yang carried out a study in 12 neighbourhoods suggesting that fuel sold in Yaoundé was adulterated. But in 2012, through efforts fed the Prime minister, Philemon Yang about the project on by government, civil and the anti-graft commission (CO- Monday February the 18th, 2013. NAC), the percentage dropped to about 22 in 2012, the State media indicates. Sayyu Dantata, Chairman of WAICO Ltd, said the project would cost between 200 and 300 million dollars, depending After the publication of the 2010 Bonne Nouvelle report, CO- on geographical features. NAC went to the field to verify the allegations, and according to the state radio, found evidence of heavy fuel adulteration. This project will “make life more meaningful and reduce acci- dents involving trucks on roads,” explains Mr Dantata. Fuel manipulation is carried out mostly during the nighttime by truck drivers in complacency with operators of petrol sta- When the project becomes operational, Cameroon will save tions, who reap about 5 million francs CFA weekly with these more than CFAF 300 billion per annum, according to the illegal activities. JM consortium. JV
March 2013 / N° 2 -15- business in cameroon Infrastructure
CFAF 85.75 Billion to Build Kumba - Mamfe Road
State (Nigeria) to Cameroon. Nige- with the Economic Community of ria remains the country’s number West African States (ECOWAS). one trade partner. From here, Ca- JV meroon could easily do business
A loan to Cameroon by the African Development Bank (AfDB) and the Central African Development Bank (BDEAC), will be used to tar CFAF 500 Million to the road in the South-West region of the country. The Minister of the Economy, Planning and Regional Repair Flood Damages in Development, Emmanuel Nganou Djoumessi, signed two financial agreements with the institutions on Northern Cameroon February the 8th, 2013 in Mamfe, Named “emergency works”, part of other works, the military will also according to the Cameroon Tribune. the repair will be carried out by the construct the earth road between civil engineering service of the mili- Yagoua-Pouss and Pouss-Guirvi- Work is expected to begin on the tary, and the other part by the rice dig. These projects are to be com- 150km stretch of road by the se- cultivation company, SEMRY, loca- pleted within the next two to three cond quarter of the year, and ten- ted in Yagoua, Far-North region. months. der documents for the contract are The Ministry of Economy¸ Regio- being prepared by the competent nal Planning and Territorial Deve- Meanwhile SEMRY is expected to authorities. lopment signed a collaboration reconstruct the Maga dyke of one agreement and convention with metre high and 27 km long, and The new road will end a nightmare these two structures in Yaoundé on other secondary works with a bud- situation for the 1,500,000 million February the 13th, 2013. get of 150 million francs CFA. inhabitants, and will facilitate ac- cess to the area. The military, funded by an enve- According to the Minister of Eco- lope of 350 million francs CFA, will nomy, Emmanuel Nganou Djou- The Kumba-Mamfe road will link rehabilitate the Longone dyke, des- messi, “the military has the task to the South-West to the economic troyed on a range of 5 km between control the quality of work carried capital, Douala, and the Cross River Pouss and Begue-Palam. Among out by SEMRY.” AE
-16- March 2013 / N° 2 Infrastructure business in cameroon
Rehabilitation Work on Yaoundé- Bafoussam-Bamenda Road at 35 Percent
respectively of the execution and the done on the Yaoundé-Ebeba road will control of the project. be repeated on the Bafoussam-Bamenda stretch. The first phase of the 370 km project running from Yaoundé to Ebeda is still However, engineers say that the pothole ongoing, and the preparatory works for filling is only a cosmetic solution, which second and third phase from Ebeda to is done because the 27 billion francs Bafoussam and Bafoussam to Bamenda CFA allocated to the project is insuffi- are in gestation. cient for heavy maintenance required by the 25-year-old road. According to Bertrand Emane Ntyam, Director of the Razel construction site, The allocated amount is just a third of speaking to the State radio, 26 km of the what would have been necessary for a 69 km Yaoundé-Ebeda road is already proper maintenance, according to the Part of the 100-billion-francs CFA refurbished, and now needs only to be Ministry of Publics Works. emergency works ordered in 2012 by covered with a new coat of tar. the Head of state, Paul Biya, this por- Patrice Amba Salla, Minister of Public tions of the road is at 35 percent of For the Ebeda-Bafousaam stretch, only Works visited the field on February the completion, according to engineers of potholes will be filled, to render the 13th, 2013, to inspect the ongoing work. Razel and Egis Companies in charge road death-trap free, while what is being JV CFAF 32.8 Billion for Yaoundé Municipal Lake Makeover Emmsa is also planning on constructing an abattoir estimated at approximately the same amount. Here, the transformation of beef and poultry etc will take place.
Meanwhile, an account for the finan- cing of these projects has been opened at Caïca Bank. According to Juan Manuel Gallego, re- presentative of the Emmsa group, the projects will employ young Cameroo- nians and could be completed within three years. Municipal Lake of Yaoundé The Minister of the Economy, Planning, A financial convention was signed in begin the makeover of the lake, accor- and Regional Development, Emmanuel Yaoundé last Thursday, February 7, ding to government sources. Nganou Djoumessi, signed for Came- 2013, to this effect. In the future, the roon while Marcellino Cabanas Anso- lake is to become a tourist attraction. A hotel, green belt, library and shops are rena, Spain’s Ambassador to Cameroon, Spanish consortium Emmsa will soon some of the planned infrastructure. signed for his country. AE
March 2013 / N° 2 -17- business in cameroon Investment
Biya Giant Projects in Cameron Projects Cost 23.22 Billion Dollars 200,000 Jobs in the Formal Sector this Year
Cameroon’s President Paul Biya says the formal sector of the economy will create this amount of jobs in 2013.
“The recovery of our economy, driven by the implementation of our major projects and our agrarian revolution will inevi- tably generate new job opportunities. For instance, 200,000 formal sector jobs will be created in the year 2013,” he said in his 18 in number, the giant projects expec- on course or soon to be completed, for address to the youth on the eve of the ted to generate 200,000 jobs referred to example the Kribi Gas-Powered Plant. 47th edition of the national youth day by President Paul Biya in his message to celebrated yearly on February the 11th. the youth on February the 10th, 2013, The bauxite exploitation project in will cost the state and its partners 23.22 Minim-Martap and Ngaoundere will In his message at the end of the year billion dollars, according to The Spark’s cost 6000 million dollars, about 3000 2012, on December 31, 2012, he stated, of February the 18th, 2013. billion francs CFA, and is the most “Cameroon’s economy created about 160 costly project. Other projects include 000 jobs in the modern sector in 2012.” The project spanning from energy pro- the extension of the National Oil Refi- jects such as Lom Pangar, Memve’ele, to nery (SONARA), as well as the building “There is reason to hope that with the transport projects like the Kribi deep of the Yaounde-Douala highway, of a pick-up of economic activity, the trend seaport, to the mining of diamond in second bridge over river Wouri, and the will increase,” he added. AE Mobilong or exploitation of bauxite in completion of the backbone optic fibre Minim-Martap and Ngaoundere, are all project. JM
-18- March 2013 / N° 2 Investment business in cameroon
South African Company, NEF has Ruhanique PTY Ltd to Invest Helped CFAF 12 Billion in Cameroon About
On the bans of private/public partner- 240,000 ship (PPP), the University Housing Cor- poration (UHC) and their financial par- tners, Ruhanique PTY Ltd, will build a Youth 2500 bed hostel at the University of Buea (UB), South West region. The foundation stone of the project was laid on February to Find the 7th, 2013, and follows an initial Proto- col Agreement between the two partners signed last November 2012 in Buea. Salaried The structure, according to the Vice Chan- cellor, Prof Nalova Lyonga, will accommo- Jobs date 1000 boys and 1500 girls and is under of Ruhanique PTY Ltd, Madame Hen- the Build Operate Transfer (BOT) plan. neke Strauss, will foster the evolution of academic institutions in Africa as a According to Dr Donald Ngundam, Ge- whole. neral Manager of UHC, the project will “deliver results in 24 months… our collec- “This is a felt need for us in UB,” the Vice tive presence here today is eyewitness of our Chancellor told her audience, noting determination to match words with action.” that the current 100-bed capacity being multiplied to 2500 beds will create an Estimated at a cost of 12 billion francs immeasurable impact. CFA, the project, according to the CEO JV Camille Mounte à Bidias, General Manager L’Edifice Capital Prepares of NEF The National Employment Fund (NEF), has since 2002 helped 240,000 youth an Investment Envelope to find jobs, 46,488 persons to receive funding and employed 79,534 persons in projects. Camille Mounte à Bidias, of CFAF 130 Billion for General Manager of NEF, revealed the figures during the 15th edition of the Cameroon “Youth Employment Week” organized between the 7th and the 9th of February Former French Minister of Tourism across the country. Olivier Stirn made the declaration in L’Edifice Grouping students from colleages, a press conference on Friday the 14th Capital, higher education institutes, state uni- of February, 2013, among “Enterprise a French versities and other schools, NEF, the days,” organized by GICAM (Cartel of invest- Ministry of Youth and the Ministry of ment Cameroon Businesses). Mr Stirn, one of office Vocational Training handed out to the the five shareholders of L’Edifice Capi- youth publications and other support tal, a French investment office, said the for the production of drinks) farm to documents on how to find work. funds will be allocated to agriculture provide 5000 jobs is also previewed. This According to Le Quotidien de l’économie, and infrastructure. plant could allow six harvests per annum. since its creation in 2002, NEF, has re- A medical dialysis centre and the The third project concerns garden pro- ceived, evaluated and oriented 403,191 Ngaoundere-Ndjamena railway are pro- duce, and Mr Stirn confirmed there is persons. It has also been associated with posed recipients. already a market for farmers of these 10,000 enterprise, and trained 78,000 A 10 000 hectares Stevia (a raw material products. JM persons. AE
March 2013 / N° 2 -19- business in cameroon Industry
G Power Cement Starts an 800,000 Tons Cement Plant in Limbe from March 2013
On Friday the 15th of February, 2013, In stating the figure of 150 direct jobs The factory will provide the cement the cement producing company, G to be created initially, as a reason, needed for giant projects such as Power Cement, signed an agreement Bernd Stiehl confirmed that govern- roads, railways, dams and other in- with the Cameroon government to ment will grant his company exone- frastructural projects, according to build a cement factory in Limbe with ration from taxes on imported raw Fuh Calistus, Secretary of State in a yearly capacity of 800,000 tons. materials from the cement factory. the Ministry of Mines and Indus- trial Development. Bernd Stiehl, CEO of G Power Cement On the choice of the site of Limbe, says effective construction work will Mr. Stiehl said the town’s deep-sea There is a high demand for cement begin in March 2013, with the laying port will enable large vessels to in the country and in external mar- of the foundation stone, and the first bring in imported raw materials kets in the neighboring countries cement bags are expected to be pro- like clinker, with more local raw of Chad, Central African Republic, duced between 24 to 36 months. materials will become available. confirmed Mr. Stiehl.JV Local Real-Estate Developers Ready to Use Local Materials in Construction Alain Mougang, President of the with the government-owned Local Association of Real Estate Deve- Materials Promotion Authority lopers (APIC) says his group will (MIPROMALO). raise the awareness of its member to the use of local materials which For her part, the Director of MI- are cheaper and long-lasting and PROMALO, Uphie Chinje Melo, said thus ideal for the construction of her structure will train members of buildings and social housing. APIC on how to use local materials and will also put its machines at the His statement comes after the si- disposal of real-estate developers. gning of a partnership agreement AE
-20- March 2013 / N° 2 Industry business in cameroon Price of CICAM Fabrics Doubles All products of the Cameroon fabric manufacturing com- pany CICAM have witnessed at least a 50% increase in price, depending on the type of fabric. Buyers from company stores across the nation now have an additional CFAF 1000 or 2000 to the prior price to pay.
The price increase is a direct consequence of the increase in the price of cotton, the main raw material used in manufacture of textiles, according David Moun- joutouyi, the CICAM regional delegate for the Centre and East regions.
The price of a kilogram of cot- ton has seen an increase from CFAF 600 in 2011 to CFAF 1800 in 2013. JV Work at Customs Collects Ebolowa Tractor CFAF 50.6 Billion Assembly Plant in January Reviewing the activities of the cus- tom directorate, its Director General, Advances Minette Libom Li Likeng, stated that as of January the 30th, 2013, they have Located in Akak-Essatolo, the Ebolowa industrial complex collected 50.6 billion francs CFA, re- work is in steady progress, according to the Minister of Eco- presenting an increment of 19% com- nomy, Emmanuel Nganou Djoumessi, who paid an evaluation pared to January the 30th, last year. visit to the worksite on February the 18th, 2013. Mr Nganou Djoumessi recommended that the tiled floor of 638 billion francs CFA is the target budget expected from cus- the warehouse should be completed by the March 3, 2013. The tom duties, compared to last year’s 550 billion. warehouse for the storage of equipment, the administrative block, and the building to host the assembly unit, are at about To attain this objective, “every month, at the central services of 70% complete. customs, we will hold a meeting where will examine reports of As of now top priorities remain, the rehabilitation of roads, our activities to ensure that we are moving towards the objec- the supply of water and electricity and the site’s security, re- tive of 638 billion,” Libom Li Likeng told attendees in one such ports the Cameroon Tribune. AE meetings, held last Thursday the 14th of February, 2013. JM
March 2013 / N° 2 -21- business in cameroon Insurance
Insurers Focus on Compensation Gaps at 37th General Assembly of FANAF
The general assembly of the Federa- extend their policies to cover the less Insurance penetration in Cameroon is tion of African Insurance Companies privileged. just of 1% annually, and only 10% of opened on Monday February 26, 2013 Cameroonians have health coverage, but in Yaoundé with a special focus on the “Discuss are to be held on better ways to with a planned increase to 20% by 2020, a compensation of victims of accidents, cover victims of accidents, natural catas- percentage still judged insufficient by the illness, and natural disasters. trophes, and illness... on how to improve Head of State, Paul Biya during his end of their condition of living which is already year address to the nation on December The assembly entitled, “insurance and very difficult,” Yang told insurance pro- the 31th, 2012. social risk,” under the distinguished fessionals and observers. The African patronage of Paul Biya, President of insurance companies, confirmed Pro- More so, insurance experts will discuss Cameroon, was opened by the Prime tais Ayangma, President of FANAF, will ways of making compensation equi- Minister, Philemon Yang, last Mon- work on universal medical coverage in table, just, total and timely. “We want day. He urged insurance companies to Africa. to emphasise the important topics like ...
-22- March 2013 / N° 2 Insurance business in cameroon
are supposed to provide financing and without this infrastructure platform, it Christophe Mien would be impossible for the continent to grow much faster.” He also lamented the Zok Becomes number of days taken to start up a busi- ness, up to 100 days in some countries; consequently there are “no local enter- Director General prises that can buy insurance.” of Yaoundé Other experts blame the lack of political Martin Foncha, President of ASAC. will regarding the poor coverage of risks Conference by insurance companies. Taking the ... health for all, accidents and, above all, example of war-torn Mali, the experts compensation which remains a major said properties destroyed during the cri- Centre preoccupation for many. Each time we sis will not be compensated, thus under- A journalist and mayor of Angos- meet, we challenge members to honor the mining development efforts. sas, Haut-Nyong division, since 2002, claims of victims, our major role,” Mr Christophe Mien Zok was appointed Ayangma said. Cameroon’s insurance market is the by a presidential decree on Friday, second in the Inter-African Conference February 15, 2013. He replaces, Ndi- Challenges facing the insurance sector on Insurance markets (CIMA) zone, fontah Nyamndi who has been DG for abound, and “experts in the sector are in according to ASAC figures published in close to 26 years. Yaoundé to dissect” these challenges, ac- July 2012. Meanwhile, in 2011 insurance cording to Martin Foncha, President of companies in the country had a turno- Until his appointment, Christophe ASAC. One such challenge is the auto- ver of 141.04 billion francs CFA, a 9.6% Mien Zok, 53, has been the Director of mobile guarantee fund. progression, organisers said, referring to the information and propaganda service a 2010 report. “It’s a constant progression of the Cameroon People’s Democra- Another major axis of reflection of the over the years, and we are optimistic that tic Movement (CPDM) since October conference bears on how insurance the figures of 2012 will show a considerable 1992. He will be assisted by Tabe née companies can contribute to the deve- improvement,” projects Alexandre Boya, Ebeng Céline Nchong. lopment of Africa. This role was dis- general inspector at Colina Insurance. cussed in a conference on Monday by The conference centre inaugurated in guest speaker Paulo Gomes, founder FANAF as of December the 31th, 2012, 1981 has halls, auditoriums, and plays and CEO of Constelor Investment Hol- counts 164 members, insurance and hosts to events of international repute dings. Mr Gomez told the participants assurance companies, and two Automo- such as the Africa 21 conference in 2010. that “insurance plays a central role in bile Guarantee Funds spread across 27 In 2013, the centre will run on a budget the development of infrastructure... you African countries. Jude Viban of 1.3 billion francs CFA.
Yaoundé to Host International Institute of Insurance ASAC (Association of Cameroon be held in the Fandena neighbo- Insurance Companies) officials rhood, close to the Amadou Ahi- made the declaration during a djo Stadium in Yaoundé. press briefing in Yaoundé, on Quizzed on the number of hec- February the 13th, 2012 in antici- tares it would occupy, officials pation of the FANAF (Federation failed to give the details, but said of African Insurance Companies) that both land and funding was assembly to take place in Yaoundé already available. later this month. At a planned cost According to the officials, all mem- of 2.5 billion francs CFA, the foun- bers of Inter-African Conference dation stone of the institute will be on Insurance markets (CIMA) laid on the 27th of February 2013, zone are funding the project. on the sidelines of the assembly to JV Protais Ayangma Amang, President of FANAF.
March 2013 / N° 2 -23- business in cameroon Insurance
Chanas AGC Insurance Assurances Sacks Wants to Increase General its Social Capital Manager
Leopold Nguiffo was sacked by the Board of Directors of AGC Assurances, in 2013 th on January the 11 , 2013 during the board’s meeting. After six months of company’s board meeting on February service, Mr Nguiffo was shown the door the 26th, 2013. by his employer, millionaire, Joseph Ka- As of now the company’s capital stands dji Defesso. at 2.3 billion francs CFA, but the com- munique failed to state other 2013 ob- The reasons for the dismissal of the jectives for the company, to be discussed young insurance cadre, licensed on the during the board meeting. 14th December, 2012 by CIMA (Confe- Established in 1999 by its shareholders, deration of Inter African Insurance the company’s social capital was the Markets) remain unclear as the com- most pronounced in the central African pany made a healthy profit during the sub region at the time. course of last year. Jacqueline Casalegno, General Manager of Two shareholders provided more than Chanas Assurances half of the company’s capital. Casalegno The insurance company’s business is The objective, contained in a press Group, major shareholder, founder and steadily growing. According to the Asso- release published in the Cameroon tri- technical partner of the company with ciation of Cameroon Insurance Compa- bune, and signed by the General Mana- a 41% participation and the National nies (ASAC), the company made just 360 ger, Jacqueline Casalegno, will be one Hydrocarbons Corporation (NHC) million francs CFA in 2006 compared of the main items on the agenda of the with 20%. JM GMC that made 3,6 billion francs CFA. JV NSIA Becomes Camair-Co’s Automobile Insurer After an emergency tender launched on published in the Cameroon Tribune on December the 27th, 2012, NSIA insu- February the 13th, 2013. rance company has been selected to insure the vehicles of Camair-Co, for a Created in 1995 by Ivorian born Jean sum of 19,9 million francs CFA. Kacou Diagou, NSIA implanted in Cameroon in 2008, and also operates The decision is contained in a com- in other countries like Benin, Gabon, munique signed by the General Mana- Senegal, Congo and Togo. Jean Kacou Diagou, founder of NSIA ger of Camair-Co, Matthijs Boertien, JM Insurance
-24- March 2013 / N° 2 Bank business in cameroon
Cameroon Creates a “Guarantee Fund” for SMEs (SME) was created following a de- The mechanism is controlled by the cision signed on January 23, 2013 administration of technical com- by the Minister of Finance, Alamine mission with the Director General Ousmane Mey, on the creation, of Treasury, Financial and Mone- organization and functioning of a tary Cooperation as president. transitory mechanism for financing Furthermore, the government SMEs. announced the kickoff of the SME bank, and according to the Minis- Authorities are attempting to fi- ter of Finance, license application nance investments of SMEs within documents were forwarded to the the context of a private/public par- constable of banking of COBAC tnership between the state, microfi- (Central African Banking Commis- The fund of 5 million francs CFA, nance institutions and SMEs. sion) of the Central African Region. placed at the Bank of Central A feedback is still awaited. African States (BEAC), is single- The fund is expected to grow handedly contributed by the state through funding by bilateral and Figures from the National Institute of Cameroon. multilateral partners of Cameroon, of Statistics suggest that SMEs make taxes from a beneficiary SMEy, the 1 up 90 percent of enterprises in Ca- Long awaited, this fund for small percent commission on loans gua- meroon, and employ 70 percent of and medium-sized enterprises ranteed by the mechanism, etc. the active population. JV CBC Bank in Restructuration The decision goes on to add that the cannot be published.” restructuration of CBC is to be exe- The Central African Banking Com- cuted in conformity with the plan mission (COBAC), Bank of Central the shareholders of the bank voted on May the 10th, 2012, at an extraor- dinary general assembly. This is an
According to article 4, the dead- attempt to bring line for the plan’s execution is three CBC back to its months counting from the date of publication of the decision – Janua- normal state of ry the 28th, 2013. business.
To assist the bank, government has A recently signed decision of the exonerated the institution from African States and a judge could Minister of Finance, Alamine Ous- some fiscal obligations, the decision nevertheless have access to the plan, mane Mey, placed the Commer- further states. continues the article. cial Bank of Cameroon (CBC) in a restructuration process on the However, it is difficult to say This is an attempt to bring CBC recommendation of the provi- exactly what the plan looks like, back to its normal state of business, sional administrator, appointed because article 5 says that, “taking concludes the document. in November 2009, reads the first into consideration banking secrecy, article of the document. details of the restructuration plan JV
March 2013 / N° 2 -25- business in cameroon Bank
Cameroon Will Borrow CFAF 250 Billion from the Capital Market in 2013 The Minister of Finance, Alamine more in the government. a source of funding for projects, Ousmane Mey, stated that in 2013 In 2012, a total of 130 billion francs and government repays them the government will issue 250 bil- CFA worth of securities was issued, promptly. “The government of lion francs CFA worth of treasury and at maturity the reimbursement Cameroon has got a very valid sig- bonds and bills. He was speak- of 50 billion francs FCA was paid nature,” confirms Mathieu Man- ing at an event organised by his for bonds issued in 2011. deng, General Manager of Stan- Ministry in Douala on February dard Chartered. the 22nd, 2013, aimed to convince With the recovery of the econo- investors to place their trust once my, treasury bonds have become JV AfDB Lobbies for a Drop in International Transfer Charges
The African Development Bank sentative of AfDB in Cameroon. Racine Economic Co-operation and Deve- Kane, (AfDB) made the plea on Friday Commissions can be of up to 20% resident lopment, and is used to build infras- February the 22nd, 2013, Douala at of the money to be sent. Also, the represen- tructure, to satisfy the needs of the a workshop on money transfer ser- money of immigrants is subjected tative of immediate family and much more. AfDB in vices. Transfer charges on money to fluctuating exchange rates. Cameroon. of immigrants to their countries Huge sums of money are trans- of origin, according to AfDB, are According to the French Develop- ferred yearly to less developed still too expensive. “Commissions ment Agency (AFD), a partner of countries. In 2012, over 203 000 that international money trans- AfDB, by 2014 the commissions billion francs CFA was transferred fer agencies receive, in Africa or in should be fixed at 5% of the amount to developing countries, meanwhile countries from where the money is sent. According to a study carried in 2011, this amount was of 175 500 sent are high…It is a risk for persons out by an NGO, Epargne sans fron- billion francs CFA, an 11% surge who use other informal channels,” tière, money transferred by immi- from the 2009 figures, according to the Cameroon Tribune said, quo- grants represents 2.5 times more the World Bank. ting Racine Kane, resident repre- than aid from the Organization for JV
-26- March 2013 / N° 2 Microfinance business in cameroon
BDEAC Gives CFAF 500 Million for Refinancing of MFIs to FOFIDES
Miheal FOFIDES and BDEAC. Ecobank Adande, President will not only secure the funds but of BDEAC also ensure the payment to MFIs accorded refinancing.
BDEAC gave an additional 35 mil- lion francs CFA for FOFIDES to construct a head office building. According to Miheal Adande, Pre- sident of BDEAC, the loan is non- refundable.
FOFIDES, which has as mission to refinance MFIs, covers the Grand North of the Republic of Came- The Bank of Central African States between the two partners was sig- roon. (BDEAC) has given a non-refun- ned on Wednesday the 13th, 2013, in dable loan of 500 million francs Douala. Created in 2000 by BDEAC, the ins- CFA to the Fund for Financing titution finances exclusively agro Social Development (FOFIDES Ecobank, will secure the funds, pastoral and artisanal projects, do- S.A), an institution that guarantees and accordingly Mr. Moustapha minant sectors in the north of the the refinancing of Microfinance Fall, Director General of the bank, country. Institutions (MFIs). A convention signed another convention with JM “La Regionale Microfinance” Celebrates its 20th Birthday Events to mark the anniversary CFA annually, for transfers ranging were launched on Wednesday, the from 1 franc to 1 million francs 7th of February, 2013, at the Hilton CFA. hotel in Yaoundé. FESS Cameroun savings, intro- Under the distinguished patro- duced to finance secondary and nage of its CEO, Reverend Charles higher education, is one of the hall- Rollin Ombang Ekath, the MFI Named “Club Mandat,” clients of Josephine marks of the company. Introduced Ndagnou announced that in the years ahead all sorts will be able to adhere to the benefited in 1993, Josephine Ndagnou, is one its customers will be able to transfer offer by paying a symbolic amount, from the amongst many who have benefited money without charges. between 2000 and 20,000 francs MFI from the offer. AE
March 2013 / N° 2 -27- business in cameroon Tourism/Transport
Onomo, the International African Hotel Chain, Opens Kribi Unit Soon
Onomo After Onomo Dakar Airport and hotel in Onomo Libreville in January 2012, Dakar, Senegal followed by Onomo Abidjan Air- port hotel, two Onomo hotels are under construction in Lomé (Togo) and Bamako (Mali), and a dozen other projects are under study in Nigeria, Chad, Guinea, Mauritania and Burkina Faso, Onomo Kribi being one of them.
The Onomo concept is based on accessible, durable, and modern Phillippe Colleu, President of Ono- the Pavillon Gabriel in Paris, France. hotels in principal destinations. mo International, says his company Onomo International has purchased In Dogon mythology, the figure is soon to build a hotel in the seaside a ten thousand square-metre parcel of Nommo or O’Nommo is often resort town of Kribi, South of Came- of land in Kribi, according to Mr. present in creation stories. Son of roon. He made the statement during Colleu, the planned construction of Amma, he was sent to the Earth to the Cameroon-France Forum on a top class hotel of over one hundred bring order and harmony, after the Thursday the 31st of January, 2013, at and twenty rooms. creation of Ogo, his brother. JV Qatar Airways Robert Nkili Promises Preselects 120 Female Tough Sanctions Against Cameroonian Hostesses Inter-Urban Travel Agencies Dicko Bello, a pilot of Boeing Cameroon’s Minister of 777 with the Asian airline, Transport, Robert Nkili, af- says “all the postulants could ter a three hour visit to four be recruited because there is transport agencies in some Young and beautiful girls an urgent need for female hos- neighbourhoods in Yaoundé alighted from private cars tesses as female nationals are on February 15, 2013, said and taxis on February 3rd at not allowed to work.” what he had seen will force the Douala Aviation Acade- him to take “drastic deci- my, location of the preselec- The monthly pay stands at sions.” Guarantee, Centrale, tion test. 5,000 US dollars, close to 2,5 Binam and Super Comfort million francs CFA. are the agencies the Minister and various other conditions “I learned of the recruitment Qatar Airways counts about visited. Norms are not res- that leave much to be desired. from the internet, and a friend 170 aircrafts, with approxi- pected, especially by agen- Faced with the ugly situation, later confirmed the informa- mately 50 more expected. In cies involved in inter-urban Mr. Nkili said he will “close tion. I just needed to send my a standard flight, two pilots transport. down the agencies and give CV, with my photo and other and 16 cabin crew are used. Apart from the Guarantee them time to improve.” attachments. I later received a express in the Nsam, which “We are disappointed with mail informing me of my pre- “The hostesses are employees had no first aid box, Binam, these agencies that make a lot selection,” said Esther Njoya, of the Qatar Airways and Centrale and Super Comfort of money, but are unwilling to an applicant. Two officials of as such they will be based in agencies have dirty waiting invest in order to improve the the airline were in Douala to Doha,” confirms Mr Bello. halls, no rooms for drivers to conditions their clients travel interview the candidates. JV rest, no restaurants, toilets, in,” Robert Nkili added. AE
-28- March 2013 / N° 2 Resources business in cameroon
Six New 2500 Cameroon and EU Horse Power Locomotives on Train Independent CAMRAIL Rails On Tuesday February the 26th, 2013, the Cameroon Railway Company (CAMRAIL) will present to the public Auditors on Logging its new fleet of six wagons, indicates a Communiqué from the office of the Board Chair, Hamadou Sali. Owned by With a special interest in the different the French consortium Bollore Group, control mechanisms and the role of in- CAMRAIL will use the locomotives to dependent auditors, according to team serve the Douala-Ngaoundere line. leader, Caroline Duhesme, the objective of the workshop is to ensure that the Built by the National Railways Equip- national legality verification system that ment Company (NREC), a United issues FLEGT export licenses is credible States entity, the locomotives cost the and reliable. company 19 billion francs CFA.
A workshop grouping independent au- Although illegal exportation of Cam- On December the 1st, 2012, Mr Sali, ditors selected to check the legality and eroonian wood to EU countries is a Board Chair of CAMRAIL, received ensure the transparency of the Govern- reality, the inspector General No. 1 at two locomotives of 2500 horsepower ment-European Union Voluntary Part- the Ministry of Forestry and Wildlife, each, with a capacity of 114 tons. This nership Agreement (FLEGT) on logging Ebia Ndongo says, “Government will not brought to six the number of locomo- activities in the country, took place in spare any effort to ensure that the FLEGT tives acquired by CAMRAIL in 2012, Yaoundé on Thursday, February the process is voluntarily signed and applied.” after four received on October the25th of 14th, 2013. JV the same year. JM World Bank Launches Cameroon Mining sector Technical Assistance Project A ceremony to launch the leader of the project, “Came- project in Cameroon took roon is not yet an industrial place on Thursday, January mining country, but it’s rapidly the 31st, 2013, in Yaounde at becoming one. However, there Hilton Hotel. Through this is no tradition in managing the project, the World Bank aims sector, and international expe- to “improve the efficiency and rience shows that it is not an transparency of the mining easy sector to manage.” sector management, and “You need to build capacities frame works for sustainable in institutions and that’s what mining development,” says a we are doing in the short term, statement on the bank’s web- but in the much longer term the site. Costing around 15 bil- project will also be financing lion francs CFA, the project, geological data acquisition, be- which was approved by the cause there are areas in the ter- World Bank on December the ritory that remains unknown”, 15th, 2011, will end on June he also said. the 30th, 2017. According to Remi Pelon, team Jude Viban
March 2013 / N° 2 -29- business in cameroon Local economy
AFD Disburses CFAF 5 Billion for Agriculture, Fishing, and Livestock Activities in Rural Areas Coming from the debt relief and deve- been granted 5.1 billion francs for its and of livestock. It concerned three do- lopment contract fund (C2D), a conven- second phase. mains: planning chain, budgeting and tion for the said amount was signed in the follow-up of activities, data collec- Yaoundé on the 22nd of February, 2013 To Philippe Chedanne, Deputy Direc- tion and activity of localized services. between authorities of the agency and tor of the French Development Agency Cameroon. The second phase of C2D (AFD) in sub-Saharan Africa, this sup- JV in Cameroon mostly concerns the rural port is crucial. “Supporting agricul- regions, with an envelope of 130 billion tures does not only contribute to the fight francs CFA, 60% of the total sum. against hunger, but also supports develop- ment,” he said. Among the programs sponsored with PNDP to this money is the support program During its first phase, AMO received 6.9 for the management of tender boards billion francs to reinforce the capacities in the rural sector (AMO), which has of services in the ministry of agriculture Grant CFAF 11,489 Billion to Councils in 2013 The National Participatory Develop- ment Programme (PNDP) will distri- bute, in the course of the year, 11,489 billion francs CFA to 329 local councils. The effort is part of the budget adopted during the 13th session of the Piloting and Orientation Committee (CNOP), on February the 6th, 2013 in Yaoundé. Representing 61.48% of the total com- mittee’s budget, the money will support local development and decentralization projects.
18,688 billion francs CFA is the total budget for the PNDP in 2013 (income and expenditure), and the programme will use the money for the coordination, management, follow-up, evaluation and communication of PNDP-sponsored projects carried by the councils.
With Marie Madaleine Nga as coordi- nator, PNDP aims to transform councils into pools of development and compe- tition. JM
-30- March 2013 / N° 2 Business in Cameroon .com Daily business news from Cameroon iPhone, iPad, and Android applications (coming soon)