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COUNTRY ANALYSIS CAMEROON

2009

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CHAPTER I GLOBAL VIEW OF CAMEROON

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FACTS AND FIGURES ABOUT CAMEROON

Official Name The Republic of Cameroon Capital Yaoundé Population 18,500,000 people (2008 ) Area 2,381,741 km2 3 Ethnic Division · Cameroon Highlanders: 31% · Equatorial Bantu: 19% · Kirdi: 11% · Fulani: 10% · Northwestern Bantu: 8% · Nigritude: 7% Religion · Muslims: 22% · Christians: 53% · Traditional religions: 25% Languages · French and English (official), Climate Varies with terrain, from tropical along coast to semiarid and hot in north Natural resources Oil, timber, hydro-electric power, natural gas, cobalt, nickel, bauxite, iron ore, and uranium. Poverty level (Percentage of people 48% living under the poverty line) GDP/Capita based on PPP US$2,300 (2008 est.) Inflation rate 2.96% Currency and currency convertibility CFAF: € 1 = XAF 655.957 US$1 = XAF 496.07 ≈ US$500: on the 24/04/09 Monetary Policy Final objective: Internal and external stabilisation of money Intermediary objective: stabilisation of inflation Inflation target: 3% The rating scale for each criterion here varies from -2.5 (weak performance) to 2.5 high performance (Source: Africa Development Indicator) Control of corruption -1 Political stability and absence of violence -0.3 Rule of law -0.1

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THE TAXATION SYSTEM

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Source: African Development Indicators: 2008/2009

World Ranking Cameroon Tax Components out of 181 Ease of paying Tax payments Time to comply Total Tax Rate countries taxes

Cameroon 171 131 180 134

Source: Doing Business: World Bank 2009

CORPORATE TAXES IN CAMEROON

BASIS NORMAL RATE SPECIAL TREATMENT 1 – Corporate tax rate · 35% . · · Residents are · 38.5% if the 10% · The alternative minimum tax is taxed on their surcharge is taken applicable where a company posts world-wide into account. a tax loss or where 1.1% of income · 30% for companies turnover amounts to more than · Non residents during their first 38.5% of taxable profit. are taxed only on three years of listing Cameroon- on the national stock

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source income exchange. · 10% surtax levied over the 35% 2 – corporate rate Alternative minimum tax · 1% of the turnover 5 minimum tax payable annually. · 10% local surcharge payable bringing effective rate to 1.1% · No foreign tax credit · No holding company regime

Capital gains tax · Capital gains are · Capital gains realised on the treated as ordinary disposal of a fixed asset in the business income and course of trading may de excluded taxed at normal from income for a period of 3 3 – company rates. years if the taxpayer reinvests the gains in new fixed assets for the business.

· Capital gains arising from the

gratuitous allocation of shares or

debentures o the merger of limited

liability companies or limited

partnerships with share capital also

are excluded, provided the

company resulting from the merger

has its registered office in

Cameroon or another CEMAC

state.

· Upon the assignment, transfer or

cessation of a company within 5

years following its creation or

purchase, net capital gains will be

assessed at half their value ()one-

third of their value after more than

5 years

· Losses: may be carried forward for up to 4 years but may not be 4 – carried back Withholding tax · Dividends 16.5% as follows: Unless reduced under applicable

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(applies to dividends · 15% withholding doubled tax treaty with foreign paid to both and countries residents and non · 10% local residents) surcharge

· Interest 16.5% as follows The rate is reduced under an (applies to interest · 15% withholding applicable double tax treaty with 6 aid to non residents) tax foreign countries. · 10% local surcharge · Royalties 15% Unless rate reduced under an (applies to non (10% local surcharge is applicable double tax treaty with residents) not applicable) foreign countries. (SEE THE INVESTMENT CHAPTER FOR COUNTRIES WITH WHICH CAMEROON HAS A DOUBLE TAXATION TREATY WITH). Other taxes on corporations · Capital duty Between 2% and 0.25%, regressive duty depending on the amount of the capital. · Real property tax 0.1% of assessed Tax holidays may be provided for new property value buildings and those located in + 10% local surcharge specified development areas · Social security · 11.2% of employees (Paid monthly to the basic pay, National Insurance allowances and Fund) benefits paid by employer · 1.75%, 2.5% or 5% of total salaries contributed by employers depending on the risk category of activities performed by employees · Stamp duty · 1% to 15% (range). (apply to contractual · Fixed stamp duties obligations and are levied on motor transfers or leases of vehicle licenses, property) advertising materials, passports, visas and bills of

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lading. · Transfer tax · 15% for the sale of a business · Other · 15% withheld on payments made to suppliers of services located abroad 7 · Taxes are imposed on the sale of petroleum products, liquor and business licenses. · Payroll tax · 2.5% monthly (paid to the Housing contributions of the Loan and total amount of Employment Fund) salaries and fringe benefits of employees paid by employers

Incentives: · Under a reinvestment regime, eligible companies may benefit from tax reduction of 50% of qualifying investment, provided the reinvestment does not exceed 50% of the profits declared during the relevant fiscal year. · 25% reduction for enterprises in the information and communication technologies sector of qualifying reinvestment, provided the reduction does not exceed 25% f profits declared during the relevant fiscal year. · Enterprises that create jobs in the agriculture, energy, and tourism and social housing industries through a structuring project regime may be eligible for tax benefits, including: o exemption from business license tax for the first two years of operation; fixed rather than ad valorem registration fees at US$100 for instruments of incorporation, extension and increase of share capital, and the transfer of real estate related to the establishment of the project; o a VAT exemption on local purchases of building materials and imports related to the establishment of the project; o an accelerated depreciation rate of 1.25 the normal rate for specific fixed assets required during the installation phase; and an extension of the loss carry forward period to 5 years. The processing of dividends received by corporate shareholders differs when the shareholder: · 10% of net dividends received where:

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o owns at least 25% of the shares in the affiliate o the head office of the shareholder and its affiliate are located in Cameroon or another CEMAC state; and o the shares remain registered in the name of the shareholder for at least 2 conservative yeas.

Where the payer and recipient disclose the dividends in their respective financial statements in the same year, the8 withholding tax paid by the affiliate may be set off against the withholding tax payable by the shareholder on any dividend distributions subsequently mad by such shareholder. Administration and Compliance

Tax year: The tax year is the calendar year that starts on the 1st of January and ends on 31st December

Filing requirements: Advance payments of company taxes are due before the 15th of each month. Any final balance of tax is payable on submission of the annual tax return by 15 March of each year.

Penalties: Interest may be imposed at 1.5% of the tax due per month for late filing or payment. Penalties are assessed at: · 30% (good faith) · 100% (bad faith) · 150% (fraud) Where the tax payer initiates the process to settle outstanding taxes, no penalties will be assessed

B - PERSONAL TAXATION

Residents are subject BASIS NORMAL RATE EXEMPTION MEASURES to tax on worldwide income. Taxable income or · Progressive tax from Deductions and Allowances: Non-residents are employment income 10% to 35%. · 30% for: subject to tax only on (net total income · + 10% surcharge of the o business expenses Algeria-source derived from various principal tax o Social security income. categories of income) contributions o professional expenses · 30% for real estate deductions Capital gains 11% for capital gains · Unrealised gains arising derived from the sale of from mergers are not shares subject to personal income tax if the new company has its registered office in Cameroon or another CEMAC state. Social Security · 2.8% of basic pay and

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allowances paid by employees, up to US$ 600 per month to the NSIF. · 1% of gross salaries for Housing Loan and Employment Fund 9 Other taxes on individuals · Capital duty Between 2% and 0.25% (formation of capital regressive duty depending and subsequent capital on amount of capital increases) · Stamp duty · 1% to 15% (range) (contractual obliations · Fixed stamp duties are and transfers or leases levied on motor vehicle of property) licenses, advertising materials, passports, visas and bills of lading · Real property tax · 0.1% of the assessed (payable annually on property value real estate for which an · +10% local surcharge ownership certificate or an administrative and judicial order has been issued). · Inheritance/estate · Progressive rates up to · The first US$ 1,000 is tax tax 10% on estates valued free. in excess of XAF 10 million. · Net wealth/net No Non-residents are subject to worth tax wealth tax with respect to (on a worldwide basis property deemed or actually for residents) located in Algeria. Administration and Compliance

Tax year: The tax year is the calendar year that starts on the 1st of January and ends on 31st of December

Filing payment: · The employer deducts tax on employment income and remits it to the tax authorities before the 15th of each month. · However, employers do not deduct personal income tax when the employee earns less than US$ 124 per month. · Tax on income from an individual’s business also is due at the same time. · The annual tax return and any balance of tax must be submitted by the 15 March of each year

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Penalties: · Interest may be imposed at 1.5% of the tax due per month for late filing or payment. · Penalties are assessed as: o 30% (good faith) o 100% (bad faith) 77215045 o 150% (fraud) 10 · Where a tax payer initiates the process to settle outstanding taxes, no penalties will be assessed.

VALUE ADDED TAX

BASIS NORMAL RATE EXEMPTION Taxable transactions o delivery of goods 19.25% as follows · Exports are zero rated o rendering of services · 17.25% VAT · Certain essential o importation of goods · 10% surcharge goods are VAT o real estate activities exempt o Construction and delivery of buildings by real estate (SEE ANNEPENDIX professionals FOR LIST OF o sale of second hand goods EQUIPMENT GOODS and equipment by EXEMPTED FROM professionals VAT) o transfers of non-exempt assets o leasing of underdeveloped and o unfurnished premises by real estate professionals

Registration: · All corporate businesses with taxable turnover are required to register. · Individuals are required to register if their taxable turnover is over US$ 30 000 · Non-resident VAT payers are required to appoint solvent resident representatives to be jointly responsible for the payment of VAT and the discharge of other VAT obligations

Filing Requirement: · VAT returns, and any tax payable, are due by the 15th of each month. · Late payment incurs interest penalties at a rate of 1.5% per month of the principal liability. · Fines are levied for various omissions in discharging VAT obligations

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STRENGTHS, OPPORTUNITIES, WEAKNESSES AND THREATS (SWOT ANALYSIS) IN CAMEROON

STRENGTHS WEAKNESSES

· Implementation of far-reaching structural · With government finance still to dependent 11 reforms allowed Cameroon to obtain in on oil production (30 percent of tax 2006 a 50 percent reduction of its foreign revenues) the projected decline of oil debt under the HIPC and MDRI resources has made rapid development of programmes alternative sources a necessity · The structural reforms have attracted · The poor business environment has investors and accelerated the process of hampered development of formal private diversifying the productive fabric sector contending with intense competition from informal sector · The growth still does not suffice to met the Millenium Objectives notably intended to cut poverty in half by 2015

OPPORTUNITIES THREATS

· Endowed with vast resources ranging from: · The political succession crisis looming in o agriculture and wood; the run-up to elections in 2011 could o mining and tourist potential jeopardize the country’s political stability o oil, gas, and hydroelectric energy, Cameroon can boost to be one of Central Africa's most diversified economy

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FOREIGN EXCHANGE CONTROL All transfer of funds All transfer of funds outside the Central African Economic and Monetary Community outside CEMAC must (CEMAC, consisting of Cameroon, the Central African Republic, Chad, the Republic of be declared and are 12 subject to special Congo, Equatorial Guinea and Gabon), including loans obtained by resident companies control measures for from abroad and the solicitation of foreign securities in the CEMAC zone, must be statistical purposes declared and are subject to special control measures for statistical purposes. Transfers of amounts in excess of US$ 100 000 must be lodged with an authorised intermediary (i.e. a bank authorised by the central bank). Documentation must be submitted to the authorities for currency transfers for the settlement of imports in excess of US$ 200 000 · Employees may Expatriate employees may apply for authorisation to repatriate part of their earnings on a repatriate 20% of regular basis. Employees may repatriate 20% of their net salary. However, if the family their net salaries. · 50% if their and dependents live outside the CEMAC zone, permission may be obtained to repatriate salaries and up to 50% of the net earnings. Any savings accumulated by expatriates may be dependents live outside CEMAC repatriated upon departure from Cameroon. All foreign direct investment exceeding US$ 200 000 is subject to prior notification to the Ministry of Finance.

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RESOURCES NEEDED FOR A COMPANY CREATED 1 - CAPITAL MARKETS AND PORTFOLIO INVESTMENTS Interest Rates:

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Interest rates are set by the BEAC, which is closely monitored and regulated by the French Treasury. Foreign investors are able to obtain loans on the local market, but usually prefer to borrow offshore due to very high domestic interest rates and the unavailability of long-term capital in the domestic market. The Douala Stock Exchange: The Douala Stock Exchange (DSX) was opened in April 2003, offering firms the opportunity to raise capital directly from domestic investors, but only one company (bottled water company Tangui) had been listed as of January 2008. Financial Institutions: Cameroon has 12 fully operational commercial banks, with aggregate assets of over 1,600 billion CFA francs. Commercial banks and a wide network of micro-finance institutions constitute the largest part of the financial sector. The amount of non performing assets they hold is unknown. Cameroon has a number of successful microfinance institutions, with 436 operational countrywide, making an average annual deposit of 500 billion CFA.

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INVESTING A- OPENESS TO The Government of Cameroon has sought to attract foreign investment in order to create FOREIGN much-needed economic growth and new employment. Nonetheless, the operating INVESTMENT environment remains one of the most challenging in the world, and implementation of The 2002 Investment investment incentives and a more inviting business climate remains problematic. Charter establishes 14 three procedures for The government has announced the creation of an Investment Promotion Agency investment screening: (intended to replace the Investment Code management Unit, or ICMU). · The automatic regime, which When the 2002 Investment Charter becomes operational, it will establish three permits procedures for government screening of both foreign and domestic investments. investment without prior · The “automatic regime” permits investment without prior government approval. government · The “returns regime” permits investment after an application and the passage of approval two days without government objection, while · The returns · The approval regime permits investment after an application and the passage of regime permits investment after fifteen days. an application and Pending issuance of implementing regulations, however it is unclear which process the passage of two days without applies to which kind of investment. government Cameroon continues to rank poorly (out of 181 countries) in the area of “Enforcing objection Contracts” in the World Bank’s annual Doing Business. · The approval Equity Ownership: regime permits investment after The 2002 Charter does not discriminate with regard to equity ownership, permitting 100 an application and percent foreign ownership. Nonetheless, and especially in such a challenging the passage of 15 days. operational environment, substantial local equity ownership may help facilitate the investment approval process. Investors who intend to make direct investments of 100 million CFA francs or more must declare their intent to do so to the Ministry of Finance (MINFI) 30 days in advance. B- PERFORMANCE Investment incentives are likely to change as the 2002 Investment Charter is REQUIREMENT implemented, until which time the relevant incentives for the 1990 Investment Code AND INCENTIVES remain in effect. Depending on the size and nature of the investment, investment will Under the Investment fall under one of the following regimes of the 1990 Code, each of which has specified Charter, investment falls under one of the eligibility and performance requirements.

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following regimes: · Under the “basic” regime, firms must export at least 25 percent of their annual

production, use natural resources for at least 25 percent of the value of their inputs, · The basic regime and create at least one local job for every 10 million CFAF francs invested. · The small- and Benefits from the regime include medium-scale enterprise regime o an initial three-year, 15 percent reduction on many establishment taxes and15 customs fees as well as an exemption on purchase taxes relating to · The strategic regime production and operational equipment. o eligible companies are entitled to a number of exonerations and other exemptions for the next five years of the operational phase. · Under the small- and medium-scale enterprise (SME) regime, which applies to firms having total assets of less than 1.5 million CFA francs, there is no requirement for job creation. SME will receive the same benefits as listed above if they fulfil the SME regime. · Under the strategic regime, firms must export at least 50 percent of their annual production, use natural resources of at least 50 percent of the value of their inputs, and create at least one local job for every 20 million CFA francs invested. The strategic companies will enjoy the same benefits as above for the first five years. C- TRANSPARENCY While Cameroonian business laws are clear in theory, implementation of these laws can AND REGULATORY be challenging. Under the current judicial system, local and foreign investors have SYSTEM found it complicated, time-consuming, and costly to enforce contractual rights, protect

property rights, obtain a fair and expeditious hearing before the courts, or defend Under the current judicial system, local themselves against frivolous lawsuits. and foreign investors Implementation of the OHADA law – in force since 2000 – in French speaking have found it complicated, time- Cameroon has proven to be reassuringly satisfactory for some investors. The consuming, and costly Anglophone regions of Cameroon, with business law inspired from common law, have to enforce contractual rights, protect sometimes shown some resistance to implementing OHADA. property rights, Cameroonian, and foreign country firms complain that tax audits and enforcement are obtain a fair and expeditious hearing predatory and prejudiced against the private sector, especially government efforts to before the courts, or compel companies to compromise on tax assessments, including blocking company defend themselves against frivolous law bank accounts for temporary periods. Under the 2002 Charter, taxation and customs

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suits. enforcement mechanisms apply equally to all taxpayers. The government plans to simplify tax assessment and collection procedures and to ensure that they are transparent and clear to investors, but still have not done so as yet.

F: PROTECTION OF Secured interests in property are recognized and usually enforced. The concept of 16 PROPERTY mortgage exists in Cameroonian law, and the title is the legal instrument for registering RIGHTS: such security interests. Cameroonian law provides foreign and domestic investors with Cameroonian law property rights protections that substantially comply with international norms and do not provides foreign and domestic investors discriminate between foreign and domestic firms. In practice, however, Cameroonian with property rights courts and administrative agencies often grant preferential treatment to domestic firms protections that substantially comply and have been accused of corrupt practices. In reality, there is no system of mortgages with international in Cameroon because lenders are concerned that they will be unable to enforce their norms and do not discriminate between claims on assets given as collateral. foreign and domestic Cameroon is a member of the 16-nation African Intellectual Property Organization firms. In practice, however, (OAPI in French), which is a member of the World Intellectual Property Organization Cameroonian courts and offers patent an trademark registration in cooperation with member states. Patents in and administrative agencies often grant Cameroon have an initial validity of 10 years. They can be renewed every 5 year upon preferential treatment submission of proof that the patent was used in at least one of the OAPI member to domestic firms and have been accused of countries. Without continued use, compulsory licensing is possible after 3 years. corrupt practices. Trademark protection is initially valid for 20 years with renewed possibilities every 10 years. Cameroon is also a party to the Paris Convention on Industrial Property and the Universal Copyright Convention. IPR enforcement is challenging due to the small size of the market, the cost of enforcement, rudimentary understanding of IPR among government officials and a lack of copyright culture among the populace

G-) RIGHT OF The government recognises the right to private ownership, but a dysfunctional judiciary, PRIVATE inadequate definitions of property rights, and widespread inconsistencies in government OWNERSHIP AND OF decision-making limit property rights in practice. The Ministry for Land Rights and ESTABLISHMENT Administration governs property issues. The procedures for obtaining land titles have

The government

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recognises the right to been simplified and the authority decentralized. These documents can now be obtained private ownership, at Divisional levels within a timeframe of six months. Foreign and domestic individuals but a dysfunctional judiciary, inadequate and firms are legally entitled to establish and own firms; engage in remunerative definitions of activities; and establish, acquire and dispose of interests in business enterprise. property rights, and widespread Inventors are permitted to dispose of their property via sale, transfer, or physical17 inconsistencies in repatriation of movable property. government decision- making limit property rights in practice. H- Foreign and domestic investors receive legal guarantees that substantially comply with EXPROPRIATION international norms, including full and prior compensation in the event of expropriation AND COMPENATION in the public interest. Undeveloped land is more at risk for local expropriation than Foreign and domestic developed property. There are no confiscatory tax regimes or laws that could be investors receive legal guarantees that considered detrimental to foreign other investments. The 2002 Investment Charter substantially comply recognizes property rights and facilitates land acquisition. Cameroon law does not with international norms, including full require local ownership of land. and prior compensation in the event of expropriation in the public interest. I: FOREIGN TRADE While Cameroon presently has no designated foreign trade zones or free ports, it has an ZONES /FREE Industrial Free Zone (IFZ) regime applicable to any location through “industrial parks” PORTS or single factory zones. Created in 1990 to promote internationally competitive export

industries, the IFZ regime creates certain broad regulatory and tax exemptions for Cameroon presently has no designated investors. It is unclear how the 2002 Investment Charter will affect the IFZ regime foreign trade zones or privileges. free ports, but has an Industrial Free Zone To qualify for IFZ status, the goods or services produced by an enterprise must not have (IFZ) regime detrimental effects on the environment, 80 percent of production must be exported. IFZ applicable to any location through firms receive 10-year exemption from taxes and are subject only to a flat tax of 15 “industrial parks” or percent on corporate profits beginning in the eleventh year. They have a right to tax-free single factory zones. repatriation of all funds earned and invested in Cameroon and are exempt from foreign exchange regulations. They are also exempt from existing and future customs duties and taxes, including those on locally purchased production inputs. The National Agency for Industrial Free Zones is the non-profit regulatory body established to oversee and

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administer Cameroon’s IFZ program. Though well-intentioned, the IFZ regime has never really been implemented since its original sponsor (the USAID mission in Cameroon) closed in 1994. At inception there was strong opposition to the program from one major European partner that feared the

IFZ would cut into its trade with Cameroon. Attempts to apply the IFZ to timber mills18 prompted strong opposition from the World Bank and an audit to determine whether timber mills are eligible for such preferential tax treatment.

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CHAPTER II AGRICULTURE IN CAMEROON OBJECTIVE The objective of this section is to analyse the agricultural sector of Cameroon and

present the opportunities offered to investors who wish to get into the sector. This19 is completed by a global analysis of the Cameroon investment climate. Agriculture is the Agriculture is the mainstay of Cameroon’s economy. 55.3% of the active population is mainstay of the involved in agricultural production, which accounts for 50% of total exports. Cameroon Cameroon economy with 5.3 percent of has great potentials. The climate, ranging from humid to semi-arid, allows growing of a the active population wide variety of crops. involved in agricultural production.

Source: Le Nouvel Observateur: Atlaséco, 2009

MAJOR FOOD AND AGRICULTURAL Rank Commodity Production Footnote Production (Mt) Footnote PRODUCTIONS (Int $ 1000) 1 Plantains 288,353 C 1,300,000 F Indigenous Cattle 2 173,006 C 83,647 F Meat 3 Cocoa Beans 138,632 C 180,000 *

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4 Taro (Coco Yam) 113,322 C 1,100,000 F 5 Bananas 112,583 C 790,000 F 6 Maize 110,390 C 950,000 F Groundnuts in 7 108,729 C 225,000 F Shell 8 Tomatoes 94,772 C 400,000 F Vegetables Fresh 20 9 88,195 C 470,000 F nes 10 Beans, Dry 87,132 C 200,000 F 11 Cassava 86,472 C 1,200,000 F 12 Game Meat 81,878 C 50,000 F 13 Sorghum 73,194 C 600,000 F 14 Yams 56,501 C 280,000 F 15 Coffee, Green 49,054 C 60,000 * Indigenous 16 34,933 C 29,949 F Chicken Meat Cow Milk, Whole, 17 34,572 C 130,000 F Fresh 18 Avocados 34,059 C 53,000 F Indigenous Sheep 19 32,404 C 16,380 F Meat 20 Sugar Cane 30,116 C 1,450,000 F

No symbol = official figure * = Unofficial figure F = FAO estimate C = Calculated figure

CAMEROON’S EXPORTS Cameroon Exports Commodities by Country Quantity Value (000 Unit Value US$) (US$)

1 Cocoa Beans 169773 230040 1355 2 Cotton Lint 97598 144427 1480 3 Coffee, Green 53674 76497 1425 4 Bananas 294886 74763 254 5 Cocoa Paste 15816 34942 2209 6 Rubber Natural Dry 27549 30222 1097 7 Food Prepared nes 6735 12717 1888 8 Natural Rubber 9115 12226 1341

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9 Oil of Palm 7623 8958 1175 10 Beer of Barley 4767 3686 773 11 Vegetables Prepared nes 3214 2867 892 12 Beverages Dist Alcoholic 1247 2354 1888 13 Sugar Confectionery 1032 1985 1923 21 14 Tobacco Leaves 486 1907 3924 15 Wine 3054 1669 546 16 Beans, Dry 4126 1587 385 17 Pyrethrum, Dried Flowers 1753 1580 901 18 Chocolate Products nes 389 1360 3496 19 Cocoa Butter 442 1227 2776 20 Sugar Refined 1200 911 759

F = FAO estimate | M = Data not available | T = Trend calculation | * = Unofficial figure | Mt = Metric Ton | P=trading partner estimations CAMEROON’S AGRICULTURAL Commodities by Country Quantity Value (000 Unit Value IMPORTS US$) (US$)

1 Milled Paddy Rice 299595 84794 283 2 Wheat 261253 68789 263 3 Malt of Barley 60328 36571 606 4 Chicken Meat 34397 27646 804 5 Sugar Refined 41950 26517 632 6 Food Prepared nes 10798 23361 2163 7 Dry Whole Cow Milk 6208 16368 2637 8 Oil of Palm 20843 11184 537 9 Oil of Soya Beans 11711 8767 749 10 Flour of Maize 11096 6491 585 11 Cake of Soya Beans 12640 5724 453 12 Wine 5249 5684 1083

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13 Pastry 7091 5627 794 14 Infant Food 985 4854 4928 15 Whole Milk,Condensed 2920 4801 1644 16 Flour of Wheat 9316 4480 481 17 Margarine + Shortening 3677 3928 1068 22 18 Food Prep.Flour,Malt Ext 3965 3539 893 19 Tomato Paste 2723 2858 1050 20 Food Wastes 2782 2522 907

F = FAO estimate | M = Data not available | T = Trend calculation | * = Unofficial figure | Mt = Metric Ton | P=trading partner estimations

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CAMEROONS IMPORTS BY COUNTRY – 2005, FAO STATISTICS

Commodity Canada France Germany Greece Paraguay Russian Ukraine United Federation States of America Wheat 52500 197447 3125 0 3500 4933 10697 26673 23

Argentina Australia Belgium Brazil Canada France Germany Ireland Italy Netherland Spain U.K. and s Northern Ireland Chicken 108 96 826 3213 50 154 134 27 175 1444 412 254 Meat

Belgium Brazil China, Congo France Germany Italy Kenya Morocc Saudi Senegal Switzerla U.K. mainland o Arabia nd Sugar, 2750 540 0 28500 9588 1057 1 1 5 1 1 0 44 Refined

China, Cote France German India Italy Lebanon Spain Turkey United mainland d’Ivoire y Arab Emirates Flour of 0 0 7880 9 2 0 0 3875 135 0 Wheat

Belgium France Germany Ghana Lebanon Netherlands Portugal U.S. Infant Food 68 757 4 10 0 61 0 0

Belgium Cote France German Netherland South Africa d’Ivoire y s Cow milk, 44 48 979 19 19 0 whole, fresh

Belgium China, France India Indonia Italy Japan Normay Pakistan Republic of Thailan U.S. mainland Korea d Rice milled 0 8 46 29668 0 1 743 60115 0 170020 31993

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Belgium Cote France Italy d’Ivoire Flour Maize 682 0 9825 0

Argentina France Italy Lebano Malawi South Africa U.S.A. n Maize 4935 2 0 0 17 2329 5500 24

Canada Chile France Greece Italy Portugal South Spain U.S. Africa Wine 1 10 1932 1 45 1 95 4168 44

Belgium France Malt 21969 33306

Belgium China, France German Netherland USA mainland y s Food 2251 4 14 147 107 476 Wastes

Belgium Cote France Indonas Malaysia Netherlands Singapore United d’Ivoire ia Arab Emirates Palm oil 2343 66 83 6976 7953 315 345 17

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CAMEROON’S EXPORTS BY COUNTRY – 2005 FAO STATISTICS

Commodity Belgium Canada France German Indonesia Iran Japan Malaysia Netherl Russian Spain Trkey UK y ands federation Cocoa Beans 16640 1229 3109 187 226 25 13 5729 117768 401 8895 6270 3210

Belgium Congo Denmark France Germany Italy Switzerlan UK 25 d Bananas 150684 11 19 9943 0 107 1 104693

Central African Rep Sugar, 150 Refined

Central Congo France Gabon Senegal African Rep. Sugar, 250 406 0 26 7 Confectione ry

Central Congo African Rep. Wine 86 1463

France USA Cocoa paste 8880 8238

Belgium Brazil Egypt France Germany Italy Netherlan Poland Spain U.K. U.S. ds Natural 1654 26 77 12 450 2453 52 361 540 9412632 284 rubber

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Belgium Brazil China, Colombi France Germany Italy Netherland Poland Portugal Russian Serbia South mainland a s federati and Africa on Montene gro Rubber. Nat 524 121 101 20 8583 2162 2330 383 363 323 464 3292 121 dry

Spain U.K. U.S. 26 Rubber, Nat. 2018 111 4496 dry

Algeria Belgium Bulgaria Denmar Ecuador Egypt France Germany Greece Italy Morocc Portugal Russian k o Federati on Coffe, green 1296 9178 19 118 54 180 4215 4451 108 15903 126 4167 162

Spain Tunisia UK U.S.

Coffee, 2253 648 33 477 green

Central Congo Gabon USA African Rep. Chocolate 79 426 80 10 paste

Belgium Canada Cent. Afr. Congo France Gabon Germany Ireland Netherl UK Rep ands Palm oil 12 4 81 7 8 2135 7000 23 15010 3002

Canada France Vegetables 7 3285 preserved Nes

France

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Cocoa 230 Butter

Congo France USA Beans, dry 2163 3 8

Bahamas Belgium Honduras Netherl Nigeria South Africa USA ands 27 Tobacco, 133 123 5 71 19 17 43 unmanufact ured

Units : Crop and livestock quantities are given in tons.

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AGRICULTURAL LAND AND LAND ACQUISITION IN CAMEROON

LAND AND In many parts of Cameroon, a limited base of high potential land excludes the option28 of INTENSITY OF significantly expanding the area under cultivation. Achieving food security in Cameroon AGRICULTURAL INPUTS IN commodities requires increasing the productivity and sustainability of the farming SELECTED SUB- system. SAHARAN AFRICAN COUNTRY LAND INTENSITY OF COUNTRIES AGRICULTURAL

Cameroon has quite INPUT an extensive piece of Sub-Saharan Africa Agricultural Irrigated Labour Mechanization agricultural land Land (000 Cropland (workers (tractors per (7,160,000 hectars as ha) 2002 as a per ha) 000 ha) 2001 of 2002) but a low Percent of 2001 level of mechanization Total 2002 of its agriculture (0.1 tractor per hectar as of 2001) Angola 3,300 2.3 1.27 3.1 Benin 2,815 0.4 0.68 0.1 Botswana 380 0.3 0.94 15.8 Burkina Faso 4,400 0.6 1.34 0.5 Burundi 1,351 5.5 2.40 0.1 Cameroon 7,160 .. 0.52 0.1 Central African Rep 2,024 0.6 0.63 0.01 Chad 3,630 0.4 0.76 0.05 Congo 240 0.1 2.60 3.0 Congo, Dem Rep 7,800 1.1 1.66 0.3 Cote d‘Ivoire 6,900 .. 0.42 0.6 Equatorial Guinea 230 4.2 0.59 0.7 Eritrea 503 1.8 2.87 0.9 Ethiopia 10,671 3.0 2.10 0.3 Gabon 495 0.8 0.42 3.0 Gambia 255 0.2 2.11 0.2 Ghana 6,331 6.2 0.95 0.6 Guinea 1,540 3.1 2.23 0.4 Guinea-Bissau 548 1.7 0.92 0.03 Kenya 5,162 0.3 2.34 2.4

Source: Food and Agricultural Organisation

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LAND PROCEDURES (GOVERNED BY DECREE No. 76/165 of April 1976 establishing the conditions for obtaining land certificates, amended and supplemented by decree no 2005/481of 16 December 2005) STATE LAND PROCEDURES A – CONCESSION 29 CONCESSION IN It is a procedure through which the State authorizes any person who wishes to develop a CAMEROON project to achieve it within a period of five years on a second category national land (land free of any effective occupation on August 5, 1974). DOCUMENTS IN A file containing the following information is deposited at the office of the divisional THE APPLICATION State land service Head. He issues a receipt after the deposit. FILE · A triplicate application on special forms; · Photocopy of national identity card; · statutes of the company with the name of its representative if necessary; · a quadruplicate plan of the land; · the exploitation programme of the land with the main stages to follow; · a descriptive estimate of the works to be achieved;

PROCEDURE OF There are two steps: THE CONCESSION · Provisional basis; · Definite basis;

A – Provisional Basis: · The divisional State lands service Head gets hold of the Senior Divisional Officer who summons a Consultative Board to work on the estate. · The Commission draws a report with a counsel’s opinion on the status of the land and the feasibility of the project. · The Commission then forwards the report to the Minister in charge of State lands file for the attribution of a provisional concession. PERSON ENTITLED · For an area less than 50 hectares: the Minister in charge of State lands TO GRANT A CONCESSION · For an area more than 50 hectares: the President of the Republic

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DURATION OF The applicant has five years to implement his project, according to the specifications PROVISIONAL CONCESSION ENDING PERIOD It ends as soon as the Commission ascertains that the project has been implemented or OF PROVISIONAL not in conformity with the specifications CONCESSION BENEFITTING As soon as the Commission ascertains that you have respected the clauses of 30the FROM A DEFINITE specifications, the Senior Divisional Officer proposes: CONCESSION · a definite concession if the person is a national or · a long lease if the person is a foreigner. The person can have a land title with a definite concession B - THE STATE LAND LAYOUT STATE LAND It is a parcel of land obtained from the lay-out (division in plots made by a legitimate LAYOUT IN land owner of his land, in conformity with regulatory procedures in force; also refers to CAMEROON the divided area itself) of a land belonging to the State private estate. ACQUISITION Any physical or corporate body, foreigner or national can acquire it. But foreigners are not allowed to acquire a State land plot in border regions. SALE BY AUCTION The 1974 legislation provides that it is a sale by auction It is implemented by a commission presided over by the Senior Divisional Officer thirty days after the posting of a notice to the public, which states the details of the sale. The report of the sale is then approved by the Minister in charge of State lands (land tenure) SALE BY MUTUAL It is an exception to the rule of auction sale and can be used only when the sale by AGREEMENT auction is liable to jeopardize the need of social equity. PROCEDURE OF · First, the person needs to obtain an authorization from the Minister in charge of SALE BY MUTUAL State lands, by forwarding an application through the Senior Divisional Officer. AGREEMENT · If the Minister agrees, he signs a decision to authorize the sale and fixes the sale price payable to the land revenue Collector. · After payment, the Minister signs an order to approve the sale. With this order, the person can obtain a land title. However, the owner of the land title cannot fully enjoy the ownership of this land as long as s/he has not developed it within a period of three years, in conformity with the specifications.

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DOCUMENTS · Quadruplicate application form with the original being stamped REQUIRED FOR THE APPLICATION · a power of attorney if the applicant is standing for someone else OF A SALE ON · a copy of the statutes of the title deed if the applicant is a company; MUTUAL AGREEMENT · the quadruplicate plan of the plot; · the notice of the competent SDO. 31 C – LEASING The State may allot non-allocated parts of its private land on leasehold to physical persons or corporate bodies who apply for it. This procedure generates the establishment of an ordinary lease or a long lease DOCUMENTS · a stamp application form; REQUIRED FOR APPLICATION · a copy of the National ID card; · a copy of statutes, in the case of a company · four plans of the land; · a planning of the development works stating the financial means involved. The file shall be forwarded to the Minister in charge of State lands, through the competent Senior Divisional Officer CHARACTERISTICS Maximum duration: 18 years OF AN ORDINARY Termination clauses: LEASE · Rent paid in advance with possibility of reviewing the terms of the lease; · Compulsory payment of land fees and other taxes; · possibility of agents of MINDAF to control the works; · prohibition of transferring the lease or sub-renting it without an authorization; · possibility for the State to get back on termination of lease with pre-emption rights on investments made on it. CHARACTERISTICS Maximum duration: from 18 to 99 years OF A LONG LEASE Termination clauses: (SAME AS THAT OF ORDINARY LEASE)

PUBLIC LAND OCCUPATION OF · By definition, nobody can occupy the public land because it is the property of the PUBLIC LAND IN public, and therefore cannot be private property. CAMEROON

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· However, the State may grant a provisional authorization of occupation. In this case, the occupant pays fees for occupying temporarily part of the public land, and must use only provisional material which can be dismantled. EXPROPRIATIONS AND COMPENSATIONS

O (GOVERNED BY LAW N . 85-09 OF JULY 4, 1985 ON THE EXPROPRIATION FOR PUBLIC INTEREST AND 32 MODALITIES OF COMPENSATION) THE DECREE OF The decree of expropriation states that your property rights have been transferred to the EXPROPRIATION State and if you have a land title, it is automatically transferred on behalf of the State. IN CAMEROON If your estate is declared of public utility by the State, the State is entitled to expropriate you and repair this prejudice by compensation in cash or in kind The declaration of public utility has a period of validity of 2 years renewable once. Then the estate recovers its previous status. COMPENSATION The law provides that compensation must be prior to the evacuation from the concerned land, except in case of emergency. AMOUNT OF A decree fixes the amount of compensation, as proposed by the assessment and COMPENSATION IN valuation commission presided by the Senior Divisional Officer which assesses the CASH damages and proposes the amount to be paid according to tariffs in force and the findings of the commission.

PRIVATE LAND PROCEDURES DIRECT REGISTRATION DIRECT It is a procedure of acknowledgement of land rights on estates of the national land of REGISTRATION IN first category, that is, land occupied, exploited and developed before 5 August 1974. CAMEROON COMPONENTS OF · Just a quadruplicate signed application form with the original being stamped. THE APPLCATION FILE · Any estate crossed by a watercourse or a road is subject to as many applications as there are distinct plots. The application form for land registration is obtained at the Divisional Office or the district office, or in the divisional service of land tenure of MINDAF. DEMARCATION OF · The land is demarcated as soon as the Commission ascertains that the occupation or THE LAND the development of the land is effective.

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· At the end of the process, a copy (duplicate) of the Land title can be obtained from the land registrar.

ROLES AND RSPONSBILITIES 1 - District Officer: 3 – Land Registrar: 33 · Receives application · Enters your land ownership rights in the Land · Issues receipt Record; · Transmits the file to the divisional office of Land · issues a copy of land title to the applicant or the tenure representative of the group of applicants · Presides at the proceedings of the consultative 4 - Role of Governor: board · Scrutinizes and settles litigations generated by the 2 – Divisional Service of Land Tenure: registration · Handles the files of direct registration 5 - Role of Minister in charge of lands: · Rapporteur of the Consultative Commission · Scrutinizes and settles appeals against the · Sees into it that the posting of the notice to the Governor’s decision public is effective 6 - Role of Supreme Court: · Participates in the settlement of litigations Scrutinizes and settles appeals against the · Updates the administrative file Minister’s decision.

ANNULATION OF Once issued, the land title becomes intangible, unimpeachable and definite. However, THE LAND TITLE its nullity can be ascertain by the Minister of State Property and Land Tenure if: · various land titles have been established on same piece of land · the land title has been arbitrarily established without any regulatory procedure · the land title has been established on the public property, on the State’s or any other public community’s private land.

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THE VARIOUS CHARGES PAYABLE FEES Opening of Land Registration File: US$6 payable to the land revenue collector Land Fees:

The various fees are 34 · Direct Registration: o US$0.01/m2 in urban area (minimum to pay is US$10) o US$0.002/m2 in rural area (minimum to pay is US$6) · Division of existing landed property: o 2% of purchase price if land has been bought o 1% of market value stated by the notary if land has been granted free · Transformation of a deed into a land certificate: o 1% of the estate value calculated on the basis of the value of existing State lands in the area. · Merging of Land Titles: o 1% of the actual value at the estates to be merged · Mortgages and Charters: o From US$200 to US$2 000: 1% o From US$2 000 to US$20 0000: 0,75% o From US$20 000 to US$1 million: 0,5% o From US$1 million: 0,3% · Full Transfers: o through sale: 2% of sale price o through death: 0,50% of market vale of the estate o through exchange: 1% of the value stated by the notarized deed o through share in company capital: 1% of value stated by notarized deed · Entry of Leases: o 1% of total amount of rent calculated on the duration of lease · Radiations, Prenotations, Commandments: o US$6 per land title (lump sum)

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· Certificates of ownership, deposit of acquisition visa, etc: o US$6 per file (physical persons); US$10 per file (legal person) · Estates Reports: o US$6F per land title · Entry and Scrutiny of Oppositions 35 o US$6 (physical persons); US$10 (corporate bodies)

AGRICULTURE AND CLIMATIC CONDITIONS IN CAMEROON CLIMATIC Cameroon has a tropical climate, humid in the south but increasingly dry to the north. CONDITIONS IN · On the coast the average annual rainfall is about 3890 mm (about 153 in). CAMROON · On the exposed slopes of the Cameroon Mountains in the west, rainfall is almost Cameroon has a tropical climate, constant and sometimes reaches 10,160 mm (400 in) a year. humid in the south · In the semiarid northwest annual rainfall averages about 380 mm (about 15 in). and increasing dry to the north · A dry season in the north lasts from October to April. · The average temperature in the south is 25° C (77° F), · On the plateau it is 21.1° C (70° F), · In the north it is 32.2° C (90° F). CLIMATE · The Cameroonian agricultural sector, a critical part of the local ecosystem, is VARIATIONS AND potentially vulnerable to climate change raising concerns about food security in the AGRICULTURAL PERFORMANCE country’s future.

Global climate change · Current climate variation is already altering the types, frequencies, and intensities of may be one of the crop and livestock pests and diseases, the availability and timing of irrigation water major challenges that will confront investors supplies, and the severity of soil erosion. in agriculture in · In March 2005 northern Cameroon was hit by food shortages, requiring external Cameroon intervention from international aid agencies. · The observed decline in rainfall in the region is thought to contribute to increasing desertification in northern Cameroon, leading to shifts in the ecological zones and an increasing exploitation of marginal ecosystems. · Global climate change may therefore be one of the major challenges that will confront investors in agriculture in Cameroon.

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REGIONAL LAND TYPE AND CROP PRODUCTION SOUTH: Cameroon is the sixth largest producer of cocoa in the world, most of it being grown in The humid and the humid, forested south of the country. Since 1994, farmers have sold their cocoa on forested nature of the zone allows the the international market. Processed cocoa products such as paste and butter account for growth of cash crops around 15% of cocoa export earnings. such as cocoa, oil palm 36 and rubber. Other cash crops grown in the south include oil palm and rubber. Yam, cassava, Yam, cassava, plantains and bananas are the main food crops. plantains and bananas are the main food crops. CENTRE The centre of Cameroon is dominated by the Adamawa massif, a sparsely populated

plateau and area of transition from the forests of the south to the savannah of the north. Crops grown in this It is chiefly used for grazing cattle. zone include oil palm, In the west it rises to high volcanic mountains with fertile soils, an area which has maize, groundnuts traditionally been the most densely populated part of the country. This pressure of and beans population is unfortunately leading to significant soil erosion. Food crops grown here include oil palm, maize, groundnuts and beans, NORTH · The north of Cameroon is most exposed to environmental degradation; droughts,

floods, locusts and elephants destroy harvests and make the area increasingly The most exposed region to dependent on outside aid. environmental degradation. · Rice, one of Cameroon's main food imports, is grown in the north by both Rice, millet, sorghum traditional and modern methods. Other food crops include millet, sorghum and and maize are the main food stuff maize. cultivated here. · Staple foods vary across the country according to ethnic group, but millet and Cotton is the most important cash crop sorghum are among the most widespread. in the North. · Cotton is the most important cash crop in the north, farmers receiving incentives and training to boost production. Cotton is the only agricultural industry still being run as a public monopoly. Livestock are also important in the region, particularly for the migrant cattle herders, the Fulani. NORTH WEST · The North West has a variety of soils alternating greatly within a relatively small

land area. The soil throughout is mostly red in colour due to high iron content, This region, just as the Western region has though that of the northwest is black or brown basalt. The region’s soils are the the most fertile

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climate of the country. richest and most productive in Cameroon. Foods crops grown · Temperatures average a cool 22o, and rainfall is moderate. The two major seasons here include: rice, beans, maize, are dry and wet. plantains, cocoyams, · The region supplies most of the country’s agricultural produce. Food crops include cassava, yams and rice, potatoes, beans, maize, plantains, cocoyams cassava and yams and groundnuts.37 groundnuts. Much palm wine is also produced in this region. Cash crops include; cocoa, coffee and tea · The major cash crop produced in this region is coffee. Tea is also cultivated in this area WEST · The soil varies greatly within a relatively small land area. Like in the North West

region of Cameroon, the soil throughout is mostly red due to high iron content, This area produces food and cash crops though that of the North West is black or brown in colour. identical to those of · The climate in this region is identical to that of the North West region. the North West region · Maize is the major staple, and farmers surround rows of it with cocoyams, plantains, beans, groundnuts, melons, and yams. Potatoes and rice are other crops grown in this region · Coffee is the major cash crop. Cocoa, tea and tobacco are also important · Robusta coffee, which constitutes 85% of Cameroon's coffee output, is grown in all provinces except the north, while arabica beans are grown in the higher altitudes of the west, northwest and east

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THE GOVERNMENT’S STRATEGY FOR DEVELOPING THE AGRICULTURAL SECTOR

The government of Cameroon has produced a “Strategic Document for the Development of the Rural Sector” (SDDRS). This document lays much emphasis on boosting the agricultural sector of the economy. 38 THE OBJECTIVES 1 -provide food security and auto-sufficiency to households and the nation as a whole; OF THE 2 contribute to economic growth especially the growth of external trade and STRATEGIC employment; DOCUMENT 3 increase the income of rural producers (farmers, breeders, pisciculturist, fishermen, and the nearby population of the forest zones); 4 improve the living conditions of the rural populations; 5 provide a better use and sustainable management of natural capital, which is the basis of production. THE CRITERIA According to the SDDRS, given the multiplicity of the different stakeholders and the FOR CHOOSING diverse nature of the programmes and projects to be implemented, a classification of PRIORITY programs and projects appear to be quite unrealistic. However, indications have been PROJECTS given to sub-sectoral Ministries to arbitrate between projects within a sub-program. Priority in terms of projects would therefore be based on criteria such as: · the existence of a potential market for projected production; · the creation of employment; · and the seriously of food insecurity. THE The supervisory Ministries are retained on the basis of the chosen projects. This does STAKEHOLDERS not however imply that they are the only stakeholders concerned with the activities to be Both public and carried out. private partners are The fundamental options and implementation principles of the strategy clearly indicate involved in the project that significant roles are provided for both realisation. · public partners and; · private partners. FINANCIAL NEEDS A realist estimate, based on the sub-sectoral Medium-Term Expenditure Framework (MTEF) was carried out.

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US$1.926 billions, an On the basis of the MTEF, the entire financial needs for the development strategy of the average of US$200 rural sector required a total of US$1.926 billions i.e an average of US$ 400 millions per millions per year for year for the next five years. the next five years is required for the For the internal financing of these needs, two scenarios were envisaged implementation of the - resource allocation on the basis of the central scenario of the PRSP (7,6 to 8.1%39 rural sector of expenditure) in favour of the rural sector; development strategy. - resource allocation on the basis of the Maputo Accord (10% of expenditure in favour of the rural sector). Whatever be the case, there will be a global deficit of internal resources by 2010 as the table below shows.

FINANCIAL NEEDS AND GAPS OF THE DEVELOPMENT STRATEGY OF THE RURAL SECTOR

2006 2007 2008 2009 20010 TOTAL Needs 117 250 242 213 142 964 SDSR Scenario 125 135 145 15 167 726 PRSP Gap PRSP 8 -115 -97 -59 25 -238 Scenario 168 170 181 193 206 913 Maputo Gap 46 -80 -61 -20 64 -51 Maputo

The indications given in the above table show that additional effort is needed for financing of the development of the rural sector, if the government has to attain the objectives she has set for herself.

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SUMMARIZED TABLE FOR GOVERNMENT’S STRATEGY FOR THE DEVELOPMENT OF AGRICULTURE

STAKES AND CONSTRAINTS STRATEGIC OBJECTIVES CHALLENGES

1. Fighting against 1. low production and productivity 1. Sustainable development of 40 poverty of exploitations productions 2. Providing food security 2. difficulties in accessing markets 2. Promotion of local and community 3. Succeeding in trade 3. low living standards development integration 4. weak organisation of actors 3. Sustainable management of natural 4. Striving for 5. rapid degradation of the natural resources performance environment 4. developing financing mechanisms, sustainability 6. environmental institution not which are adapted to the rural sector quite adapted 5. promoting employment and 7. insufficient credits professional training 6. developing the institutional framework

2 - HUMAN RESOURCES

Source: The Le Nouvel Observateur: Atlaséco, 2009

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Agriculture employs the majority of Cameroon’s workforce and it is generally felt that developing the agricultural sector will be instrumental in overcoming economic decline and on the other hand improve the well being in the rural areas.

EDUCATIONAL SYSTEM AGRICULTURAL Cameroon’s agricultural and rural development as well as education policies, are 41 TRAINING IN embarrassingly segmented, some times incongruent and at best not as effective as CAMEROON expected. This is because these policies are lodged in different ministries. The following Ministries are directly involved in agriculture and rural development in Cameroon: · Ministry of Agriculture and Rural Development · Ministry of Livestock and Animal Industries · Ministry of Forestry and Wildlife · Ministry of Environment and Protection of Nature The dilemma of agricultural education and training is further made worse by the segmentation of educational policy in Cameroon in four different Ministries · Basic Education for Nursery and Primary Education · Secondary Education for Technical and non-vocational education · Higher Education for all tertiary education. · Only one organisation (Inades-FORMATION), an international NGO operating in several African countries, provides non-formal distance education in agriculture to farmers in Cameroon. · Residential agricultural training and education is offered through the Ministry of Agricultural and Rural Development, the Ministry of Livestock and Animal Industries and the Ministry of Forestry and Wildlife. · The University of Dschang is the only higher education institution with a mandate to train agricultural scientists and engineers in the following specialisations: o Crop production o Agricultural Extension o Animal production o Agricultural Forestry o Agricultural Economics o Agricultural Engineering o Rural Sociology The Crop Production Speciality offers specializations in Soil Science and Crop

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Protection. SCHOOLS IN Cameroon has four colleges in Agriculture: AGRICULTURE · Bambili in the North West Province · Ebolowa in the South Province · Maroua in the Far North Province 42 · Bertoua in the East Province · They offer agricultural training for secondary school leavers SCHOOLS OF The Ministry of Livestock and Animal Industries runs and controls three schools VETERINARY · In Jakiri in the North West Province SCIENCE · In Foumban, in the West Province · In Maroua in the Far North Province They train veterinary nurses and livestock technicians. They admit 1000 students each year in the various schools WILDLIFE AND The Ministry of wildlife and forestry runs and operates two schools: FORESTRY · in Maroua in the Extreme North SCHOOLS · in Mbalmayo in the Centre Province The total residential capacity in both schools is 500.

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CHAPTER III TOURISM IN CAMEROON OBJECTIVE OF The purpose of this section is to come up with investment opportunities offered by the THE WORK tourism industry in Cameroon. We do this by: 43 · analysing the current state of tourism sector, and · bringing out its potentials as well as government’s efforts to boost the sector. TRENDS IN Tourism is now beginning to show signs of recovery after being in the doldrums for a TOURIST INFLUX long time.

With less than 500 000 arrivals a year, Cameroon is not yet a tourist destination. However, there have been signs of growth in the industry in recent years.

With 190,000 tourist arrivals in Cameroon reported by the UN World Tourism Organisation for 2004, Cameroon does not appear to be a cherished tourist destination in Africa .

In 1998, about 200,000 tourists flocked to the country against 92,966 in 1990, representing an increase of 125% in less than ten years. TOURISM LACKS Despite its huge potential, Cameroon has continued to lag behind the UNWTO target COMPETITION number of 500, 000 visitors per year to make it qualify as a tourist destination.

The potential of the The potential of the country is not sufficiently projected on a global scale, and this has country is not led to a small influx of tourists visiting the country. The industry has been unable to sufficiently projected

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on a global scale, and attract a permanent influx of tourists and generate substantial revenue, which in other this has led to a small countries, constitutes one of the main sources of national income. influx of tourists visiting the country. Therefore, by identifying and promoting niche areas in Cameroon, the country could soon become more attractive to travellers.

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Arrivals at Frontiers of International Visitors by Residence in 2006

Resident CEMAC Africans Germ. French Spanish Italians Swedish Swiss Holland Other USA Canada Russian Asian Middle Diverse Total Europe East

45 Number 108081 47234 17081 56358 15192 15684 13027 15956 15427 13935 22760 15762 13830 27578 16087 13606 451441

Source: Ministry of Tourism

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MAIN CONCLUSION OF THE DIAGNOSIS OF THE CAMEROON TOURISM INDUSTRY FROM THE SECTORAL STRATEGY FOR DEVELOPING TOURISM IN CAMEROON – 2005 · Poorly adapted institutional and judicial framework · absence of incentives · poor governance and global management of the sector · absence of appropriate financing mechanisms · absence of a communication plan · a deficit in the required infrastructure needed for developing the sector · qualitative and quantitative insufficiency of human resources · low performance of the statistical apparatus MAIN TOURIST ATTRACTIONS IN CAMEROON The immense tourist wealth is based on many attractions and highly diversified tourism products. The perfect blend of human, natural and cultural variety has brought about various forms of tourism, open all year round. SEASIDE RESORT With a 400 km coastline that is open to the Atlantic, Cameroon has a conducive TOURISM terrain for resort tourism. We are looking at the natural sandy beaches of Kribi and Limbe, the mangroves as well as the falls that empty directly into the sea (the only in the world). SAFARI-PHOTO Cameroon has 7 national parks, with Waza being the most famous and more AND HUNTING extensively developed. These parks are rich in animal species and representative of TOURISM the wildlife that is found in Africa. It has elephants, buffaloes, antelopes, hippopotamuses, gorillas etc. Hunting is forbidden in these national parks. However, there are 14 hunting zones comprising more than 500 km of serviced hunting tracks. Hunting is open from December to May in strict compliance with the convention on the protection of endangered species. CULTURAL Cameroon is a mosaic of different tribes with different customs and traditions. TOURISM Tourism also profits from the diversity in tradition architecture, religion, cuisine, handicrafts etc. The rich historical heritage also lends itself to tourism with monuments and vestiges from the country’s triple German, British and French colonial past. ALTITUDE The chain of mountains lying to the west offers a suitable environment with the (MOUNTAIN) Cameroon mountain which peaks 4092 m above sea level, Mt Manenguba at the TOURISM junction between the Littoral and South-West province and the Dschang Climatic

Cameroon 2009

Centre built on a plateau 1,800 m high. The Adamaoua region is also reputed for its thermal springs. ECO-TOURISM Eco-tourism is undertaken in protected sites and areas such as the KORUP national park, which harbours plant species which are many million years old, the DJA reserve, a global heritage of mankind, Mt Cameroon with its very rare flora and the fossil sites of Mayo-Rey. BUSINESS The quality of reception and intake facilities (international airports, Conference TOURISM Centre, World-class hotels), allows Yaounde and Douala every year to host congresses and conferences attended by businessmen and officials from the four corners of the earth. SPORTS TOURISM Apart from football on which Cameroon’s reputation is built, other tourist-related sports exist: · sports fishing off the coast of Douala; · gulf courses in Yaoundé and Tiko; · annual Cameroon mountain race; · horse-riding clubs of Yaoundé, Douala and Garoua; RESOURCES NEEDED TO DEVELOP THE SECTOR HUMAN The lack of hotel management and training schools in Cameroon has resulted in RESOURCES poor quality services in hotels. Faced with a shortage of trained manpower, hotel

Hotel services are proprietors are left with no option but to hire untrained personnel. poor as a result of the · The lone regional school for hotel management in Ngaoundere only trains senior lack of hotel management and staff to work in high echelon management positions in the travel and tourism training schools in industry. Cameroon · Only the privately-owned Buea-based Opportunities Industrialisation Centre (OIC) offers hotel management training courses for junior level personnel, which is grossly inadequate for a sector that is in rapid expansion. In an attempt to breach the gap existing in the lower rungs of his vital sector, the government recently created two high schools for hotel management and tourism in the coastal resort towns of Kribi and Limbe. These will train junior and intermediate professional staff to serve the growing needs of the travel and tourism industry in Cameroon. The newly created high schools are also expected to offer training in other important areas of tourism. TRANSPORT INFRASTRUCTURE

Poor transport

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infrastructure is an impediment to the development of tourism in Cameroon

The transport infrastructure in Cameroon is not fully developed and only allows for limited access in many instances. RAIL NETWORK

The rail network in Cameroon is very underdeveloped. With the exception of those commuting between northern and southern parts of the country, where the road network is poor, very few people take the train. This is because services are nonexistent in most localities and most trains are begging for renovation. Coaches are old, whilst the trains themselves are slow and irregular.

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In addition, high ticket prices make Cameroon an expensive destination, not only for international travellers, but also for domestic travellers. Airport taxes levied on tourists are also a concern for many tourist operators and tourism promoters. MINISTRY OF Cameroon’s Ministry of Tourism TOURISM Ministry, National Tourism Organization, Tel: +237 224411, 222137 Fax: 237 22 12 95 Email: [email protected] URL: http//www.camnet.cm/mintour/tourisme Currently, the Ministry of Tourism is solely responsible or marketing tourism in Cameroon. The government is looking at ways to set up a commercially driven organisation to promote tourism, which will be supervised by the Ministry, but wholly focused on commercial needs. The government is also planning to market the Cameroonian destination, presenting an attractive image of the country abroad through participation in international trade fairs.

GOVERNMENT’S PROGRAM TO DEVELOP TOURISM IN CAMEROON The Ministry of Tourism has been able to census 364 potential tourist sites in the 10 regions of Cameroon.

Region Region 1 67 in the Extreme North 6 61 in the South West 2 17 in the North 7 16 in the Littoral 3 33 in the Adamaoua 8 27 in the South

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4 18 in the North West 9 38 in the Centre 5 54 in the West 10 33 in the East

Source: Ministry of Tourism – 2007 DEVELOPED TOURISTIC SITES IN CAMEROON

In 2005 a team of Out of 223 potential tourist sites identified in 2005, 120 were visited by a team of GTZ experts had GTZ experts within the framework of the Inventory Study of Tourist Sites and the already visited 120 tourist sites and data Elaboration of a National Tourism Plan. had been collected on For each tourist site, information concerning its location, the state, accessibility etc, their usefulness for better exploitation were collected and registered in a data bank. The data collection enabled the authorities to classify the 120 tourist sites as a function of their usefulness, for better tourism exploitation. The classification is as follows: · internal tourist sites: these are sites that have already been visited by foreign tourists · international tourist sites: sites that can be interesting for international tourists if adequate value is given to them. · regional tourist sites: site which are interesting for national tourists · local tourist sites: sites interesting for tourists at the local level It is from the above data that the Ministry of Tourism focused its development policy of tourist sites. The classification of tourist sites carried out by GTZ, and government policy applied by the Ministry of Tourism since 1999 have not taken account of the dispositions of decree no99/443/PM of 25 March 1999 stating the modalities of the application of law no98/006 of 14 April 1998 linked to tourist activity. Article 34 of this law stipulates that tourist sites can be situated in developed priority, concerted or differed zones. These zones that are by Presidential decree, have not yet been identified for preliminary feasibility study to be carried out in order to classify them and determine development works to be carried out. An in-depth analysis of the following table shows that for the period running from 1999 to 2005, 60 tourist sites had started being developed for a global cost of US$ 3.2 million, that’s about 27 millions per tourist site.

When the Cameroon tourism development plan was designed it was expected that

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after identifying the tourist attractions, enough investment would be made by both the public and private institutions to enhance the sector. Tourist arrivals was expected to evolve as follows in between 2007 and 2009: Cameroon has not been able to achieve the targets it set for herself in terms of tourist arrivals programmed for the period 2007-2009.

However, in spite of all the potential, Cameroon fell short of the expected results in terms of expected tourist arrivals programmed for 2007-2009 due to inadequate investment in the sector: THE ROLE OF THE · lodging facilities; PRIVATE SECTOR IN ENHANCING · restaurants; THE TOURISM · leisure facilities and PROGRAM · travel agencies Private investors have These activities that depend on the private sector play an important role in an active role to play in enhancing the developing the tourism sector. Therefore, there is an opportunity for investors in tourism sector and these different branches in the tourism industry accompany the government in achieving her plan. Government has programmed to allot money to assist private investors who plan to invest in the sector

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FINANCIAL EVALUATION OF THE IMPLEMENTATION STRATEGY FOR TOURISM DEVELOPMENT The forecast and triennial total cost of the implementation of the strategy to develop the tourism sector is presented in the table below. It amounts to a total of US$328 millions

Total and forecast cost of the implementation of the tourism strategy Annual Expenditure Amount Amount Amount Total 2007 2008 2009 amount by Tourism Product product Cultural tourism 5.26 7.64 14.09 26.99 Hunting tourism 1.87 2.71 5.00 9.58 Safari picture tourism 6.33 9.18 16.94 32.45 Balneal tourism 1.59 2.30 4.24 8.13 Sport tourism 4.79 6.95 12.81 24.54 Health and cure tourism 0.48 0.69 1.28 2.45 Agro-tourism 1.89 2.74 5.05 9.67 Ecotourism 4.02 5.84 10.77 20.63 Business and congress tourism 8.05 11.68 21.54 41.26 Total 31.90 46.29 85.39 163.58

However, given the scarcity of resources, compared to the needs of the sector, the forecasted total cost of the programme of priority triennial public expenditure, was reduced to an estimated US$ 100 million

Annual Expenditure Amount Amount Amount Total 2007 2008 2009 amount by Tourism Product product

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Ecotourism 3.62 5.25 9.69 18.57 Cultural tourism 1.94 2.81 5.18 9.93 Business and congress tourism 1.61 2.34 4.31 8.25 Safari picture tourism 1.27 1.84 3.39 6.49 Hunting tourism 0.37 0.54 1.00 1.92 Sports tourism 0.48 0.69 1.28 2.45 Balneal tourism 0.16 0.23 0.42 0.81 Total 9.44 13.70 25.28 48.42

Source: MINTOUR THE MEDIUM-TERM EXPENDITURE FRAMEWORK (2008-2015) FOR THE TOURISM INDUSTRY IN CAMEROON The Medium-Term Expenditure Framework (MTEF) 2008-2015 of the Ministry of Tourism is the implementation of the Sectoral Development Strategy of Tourism. It is a sub-sectoral strategy within the development policy objectives of Cameroon, found in the second generation National Strategy of Poverty Reduction. The main objective of the MTEF is to: 1. promote and organise internal tourism; 2. receive at least 3 500 00 tourists from the year the required funds in the MTEF are mobilised. In order to attain these objectives, tourism products to be developed have been identified for each region of Cameroon:

Identification of Tourism Products by region in Cameroon No Region Identified tourism product Appreciation by order of decreasing importance of the contribution of the tourism product to economic and social development of the region 1 Adamaoua - Picture safari 1. Cultural tourism - Ecotourism 2. Ecotourism - Agro-tourism 3. Picture safari tourism - Cultural tourism 4. Agro-tourism - Health tourism 5. Health tourism 2 Centre - Business and congress 1. Business and congress tourism tourism - Health tourism 2. Ecotourism - Ecotourism 3. Sports tourism - Agro-tourism 4. Cultural tourism

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- Sports tourism 5. Agro-tourism - Cultural tourism 6. Health tourism 3 East - Ecotourism 1. Hunting - Agro-tourism 2. Ecotourism - Cultural tourism 3. Cultural tourism - Health tourism 4. Agro tourism - Hunting tourism 5. Health tourism 4 Extreme North - Picture safari 1. Picture safari tourism - Ecotourism 2. Ecotourism - Agro-tourism 3. Cultural tourism - Cultural tourism 4. Hunting tourism - Health tourism 5. Agro-tourism - Hunting tourism 6. Health tourism 5 Littoral - Business and congress 1. Business and congress tourism tourism - Agro-tourism 2. Ecotourism - Balneal tourism 3. Balneal tourism - Health tourism 4. Agro-tourism - Sports tourism 5. Sports tourism - Cultural tourism 6. Cultural tourism - Ecotourism 7. Health tourism 6 North - Safari picture 1. Safari picture tourism - Hunting tourism 2. Hunting tourism - Cultural tourism 3. Eco tourism - Ecotourism 4. Cultural tourism - Agrotourism 5. Agro- tourism 7 North West - Cultural tourism 1. Cultural tourism - Ecotourism 2. Ecotourism - Agro-tourism 3. Agro-tourism - Sports tourism 4. Sports tourism - Health tourism 5. Health tourism 8 West - Cultural tourism 1. Cultural tourism - Ecotourism 2. Ecotourism - Agro-tourism 3. Agro-tourism - Sports tourism 4. Sports tourism - Health tourism 5. Health tourism 9 South - Balneal tourism 1. Balneal tourism - Ecotourism 2. Ecotourism - Agro-tourism 3. Business and congress - Sports tourism tourism - Health tourism 4. Cultural tourism - Cultural tourism 5. Agro-tourism - Business and congress 6. Health tourism tourism 10 South West - Ecotourism 1. Ecotourism - Agro-tourism 2. Sports tourism - Balneal tourism 3. Balneal tourism - Cultural tourism 4. Agro-tourism - Sports tourism 5. Cultural tourism - Health tourism 6. Health tourism

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Source: Sectoral Strategy for the Development of Tourism in Cameroon/Nov. 2005

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CHAPTER IV MINING IN CAMEROON

INTRODUCTION Although largely under-explored, Cameroon’s mining resources are becoming

increasingly attractive to the world’s large mining companies. According to a report Cameroon’s mineral wealth has not yet on Cameroon’s mining sector presented by the prime minister’s office, while the been firmly country’s mineral wealth has yet to be firmly established with geological surveys, it established by geological surveys, can be confidently asserted that “Cameroon’s mineral wealth is extremely rich...one but it can be finds there at least a little of everything”. confidently asserted that Cameroon’s Over the last few years, the Cameroon administration has launched a charm mineral wealth is offensive to attract investment by the large international mining companies. They extremely rich. have identified that developing the mining sector can boost the country’s economic growth. Only the oil sector has previously recognized the potential of Cameroon’s extractive industries.

Source:

CURRENT ACTORS Cameroon’s mineral exploitation is mainly being undertaken by small-scale IN THE MINING enterprises that have been encouraged by the 2001 legislation that boosted artesian SECTOR.

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mining. Modern, large-scale mining will take time to get established, but with the Mineral exploitation collaboration of the French Bureau of Geology and Mining Research, exploration is mainly undertaken by small-scale activities have been stepped up to identify large deposits of minerals suitable for enterprises commercial exploitation. GOVERNMENT’S The government has launched an organisation to support and promote small-scale EFFORT TO mining called CAPEM. Its mandate is to: SUPPORT LARGE- · organise and develop the small-scale mining sector in Cameroon, and SCALE MINING · help integrate it into the formal economy. · improve the working conditions of small-scale miners. Government has The CAPEM programme was programmed to be implemented in 2 sites, in six of launched a programme-CAPEM Cameroon’s 10 regions, where small-scale mining had been established. to promote small- The government intends to inject US$ 11.13 million to finance the programme. scale mining and intends to inject Since CAPEM was inaugurated, the small-scale mining sector has already generated US$11.13 million to 5,000 new jobs and the government expects that number to reach 15,000 jobs by finance the programme. 2010. CAPEM should, through an efficient reorganisation of the artesian mining sector, put an end to the dangerous, clandestine exploitations of gold and other mining deposits.

THE MINING POTENTIAL AND LARGE-SCALE MINING

BAUXITE: International large-scale mining companies are showing increased interest in mineral

exploitation, especially for bauxite used in smelting aluminium. Bauxite reserves

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(some of the richest in Two main deposits are found in at Minim Martip and Ngaoundal (Adamoua), the world) estimated where reserves are estimated at about 2 billion tons, making it the sixth biggest at 2 billion tons have been identified at bauxite reserve worldwide. Minim Martip and Ngaoundal, making it the sixth biggest bauxite reserve in the world. Yet, Alucam produces more than 80,000 metric tons of aluminium yearly from imported bauxite

One of the largest single industrial enterprises in Cameroon is the aluminium smelting plant Edea, which produces more than 80,000 metric tons annually from imported bauxite. Exploitation of these bauxite deposits, is currently constrained by: o their distance from a seaport as well as o the absence of a rail link. The large investments required in transport infrastructure are being undertaken by the US Company Hydromin. According to Hydromin’s director general, Jean Pierre ongo Zanga, between US$6.18 millions and US$7.4 million will be invested in the construction of port infrastructure and the processing of minerals through a consortium made up of Hydromin working with the French group Bollore, the Japanese energy group Marubeni, Hndalco industries and aluminium producers Dubal. The latter has committed to purchasing 70% of future bauxite production. COBALT AND A number of studies have proven the existence of deposits of approximately 30 NICKEL mineral ores in Cameroon, which have yet to have exploited:

The Lomie cobalt- Cobalt reserves in Lomie are estimated at 52 million tons (25 years’ worth of nickel minefield production), located in a mountain range of 300 square kilometres. The Lomie which was supposed to begin production at cobalt-nickel project, which was scheduled to start production in 2009 the end of 2008 is one

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of the most important (postponed because of financial crisis), should provide: in the continent. It 4,200 tonnes of cobalt and has a capacity to o produce 4,200 tons of o 2,100 tonnes of nickel annually for at least 21 years. cobalt and 2,100 tons It is managed by Geovic Cameroon, a limited company incorporated under of nickel a year. Cameroonian law, with: Geovic would then § 60.5% pf its capital held by US investors, become one of the biggest producers of § 19.5% by a group of private investors cobalt in the world § 20% by Cameroon’s national investment company SNI This would make Geovic one of the world’s biggest producers of cobalt, a hard and durable metal used in aircraft engines and increasingly in batteries for hybrid cars.

The Nkamouna The firm’s Nkamouna project, a key element in Cameroon’s drive to attract US$ 10 project has been billion in investment into its nascent mining sector, is dependent on financing from slowed down by the U.S. financial crisis U.S. banks which are increasingly reluctant to lend money because of the global financial crisis. WORLD DEMAND Preliminary estimates for 2008 world demand are 64,000 tonnes, or a 6.8% increase AND SUPPLY OF from 2007 demand of 59,940 tonnes. On the supply side, the CDI estimates that COBALT 2007 cobalt production was essentially unchanged from that of 2006, at nearly 54,000 tonnes, and was unlikely to materially improve in 2008

Source: Actual supply and demand by USGS, The CDI and other independent research groups. Projections after 2008 were developed by Geovic.

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GAS, DIAMOND · Proven gas reserves amount to 156 billion m3, with potential reserves of 270 to AND GOLD 300 billion m3. · Diamonds are found mainly in the south-east region, around the regions of the boarders with Congo and Central African Republic. · Gold is also present in significant quantities in this region as well as the Adamaua plateau. Yet, the Ministry of Mining has identified fewer than: 140 gold targets and 19 diamond targets. NEW ENTRANTS · Camsa mining, a South African-Danish consortium has announced its intention INTO THE MINING to invest US$84.12 million in Cameroon’s mining sector, but has not revealed SECTOR what reserves it will exploit. In 2003, the country · Nu energy Corporation Cameroon, a 92% subsidiary of Canadian company had issued just two mining permits for Mega Uranium Ltd, has spearheaded that company’s first African operations and industrial mining began exploring for uranium in 2007 at the Kitongo and Teubang sites in the operations but today, 60 mining permits north of the country and Lolodorf in the central region. have been issued and · The Australian company Camlron has an exploration permit for Mbalam iron there is great activity within the mining field, located at the boarder region with Gabon and Congo. Mbalam is believed sector, reflecting the to contain 567 million tons of ore with 60% iron content and exploitation should strong global demand for mining resources. start in 2010, together with the construction of 498 km of railway line and a deep-water port at Kribi. The proposed total cost of this development is around US$2.6 billion · Finally, the limestone mines that feed the Lafarge cement plants in Cameroon are rapidly being depleted, but exploration has revealed promising new deposits on the country’s littoral to replace these aging reserves. As Paul Ntep Gwet, a director of CAPAM, explained to the local press: “In 2003, the country had issued just two (2) mining permits for industrial mining operations and the activities of the small-scale mining sector were not even monitored. Today, more than 60 mining permits have been issued and there is great activity within the mining sector, reflecting the strong global demand for mineral resources. CAMEROON’S MINING LAW

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(THE APRIL 2001LAW)

INCENTIVES AND The Ministry of Mines, Water and Energy is responsible for the administration of REQUIREMENTS the mining sector. In April, 2001, a new mining law was passed. The main change involved: · a move towards greater transparency in the regulations and Government officials dealing with investors on a face-come-first-serve basis. · a new investment incentive included a tax holiday on import duties during the exploration phase and on production equipment during the construction phase through to commercial production. · a new requirement included companies having to present an environmental impact assessment and signing a mining convention with the Government setting out and guaranteeing investment terms (Mining Journal, 2001) MINING CODE Law no.001-2001 of 16 April 2001 ELIGIBILITY · (Art. 8) Any physical or legal person, whatever the nationality of the person, can undertake an activity governed by the present law in the public or private domain of the State. However, any physical or legal person who wishes to exercise a mining activity has to first obtain an acknowledgment permit or a mining title that is delivered under the conditions previewed by the Law. · (Art. 11) The attribution of an exploitation permit can lead to a State participation of at least 10% of the shares of the operating company. The nature and the modalities of the participation are determined in a Convention that has to be signed before the starting of operation. GUARANTEES · (Art.13 and 14) Regularly established physical and legal persons who are in or desire to get into mining research or operation activities benefit from general guarantees and advantages prescribed by the present law. o Employers and foreign workers are subject to the same laws and regulations like Cameroonians (no discrimination) within the framework of their professional activities. o They partake in the activities of organisations dealing with the protection of professional interests within the framework of Cameroonian Laws o Moreover, foreign enterprises and their managers are represented in the

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same conditions as enterprises and individuals of Cameroonian nationality in consular assemblies and organisations that provide representation in professional and economic interest. · (Art. 15) Without any prejudice of international agreements and existing laws and regulations, the following elements are guaranteed to well established physical and legal persons: o the right to freely dispose of their goods and to organise their enterprise as they wish; o freedom of employing and laying off workers; o freedom to choose suppliers and service providers o free access to raw material and inputs o free circulation of their semi-finished and finished products. MINING In order to develop and exploit or to finance a mining discovery, a mining CONVENTION Convention has to be signed between the holder of the research permit and the State. The Convention comprises the following components: · the circumstance or the way in which the administrative authority exercises all functions conferred to him by Law: · the rights and obligations of each party · the feasibility study prepared by the holder and development proposals · the definition of the construction phase of the mine, commercial production the related fiscal regime; · the hygienic, security and environmental and cultural heritage protection rules specific to the proposed operations; · the relations with the community affected by the mining development; · obligations linked to employment, professional training and developments that are of a social nature; · relations between suppliers and sub-contractors; · dispute settlement linked to the Convention or the application of the above law by all legal means including international arbitrage; · the nature and modalities of an eventual participation of the State in the mining development covered by the operation permit. · any other element that the participants of the Convention deem to be of interest

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These are the general dispositions of the Mining Law. We also have common dispositions linked to mining title: FORBIDDEN AND Art. 62. – No prospecting, research or exploitation work can be carried out without PROTECTED the authorisation of the competent authorities: ZONES · on the surface of a zone less than fifty meters · around constructed buildings, villages, habitation groups, national parks, wells, religious edifices, sepulture, and sacred places without the consent of the proprietor; · in communication paths, water paths and generally, around public utility works and arts works; · in any national park which is the subject of an international Convention Art. 59- Operation authorisations can neither be ceded nor transmitted Art. 60. – The renunciation of an operation authorisation is at all moments authorised in conformity with the existing regulation. ENVIRONMENTAL Art. 85, - Added to the dispositions provided by the present law, all mining activities PROTECTION undertaken should respect the legislation and regulation in terms of environmental protection and management. TAX ADVANTAGES GRANTED TO ENTERPRISES IN THE MINING SECTOR CORPORATE, PERSONAL AND VALUE ADDED TAXES ARE BROADLY TREATED IN AN UPPER SECTION OF THIS WORK. HERE, WE CONCENTRATE OF THE SPECIFIC ADVANTAGES ACCORDED TO FIRMS IN THE MINING SECTOR. Art. 95. – Holders of research permits benefit from the following advantages; · exemption of registration rights linked to mining operations with the exception of those related to beams and areas of habitation; · exemption of the following taxes o company tax; o taxes of industrial and commercial benefits; o Proportional tax on movable capital o Special tax on revenue sent abroad o Value added tax Art. 96. – 1) Holders of an operation permit benefit during the construction phase of the mine from the following advantages specified by the mining Convention · exemption on taxes and custom duties on materials,

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· exemptions on inputs and equipments required for production as well as · exemptions on the first set of spare parts that should accompany the equipment used for starting up the business with the exception of o tourism vehicles o office equipments They also benefits from: · tax and customs exemptions of replacement equipments in case of any technical incident and equipments that should serve as an extension on imports. · total tax and customs exemptions on the imports of inputs until the date of the first commercial production observed by the joint decree of the Minister in charge of Mines and the Minister of Finance; · total tax and customs exemptions on the imports of materials necessary for the construction of buildings until the date of the first commercial production observed by the joint decree of the Minister in charge of Mines and the Minister of Finance; · total exemptions on taxes and customs duties on specific lubricants. All the custom duties exemption provided by the present law make abstraction of taxes on services rendered. Art. 97. – 1) With the reserve of specific advantages provided by law, the holder of a mining operation permit is subject to a fiscal regime common to all. However, up to the date of the first commercial production observed jointly by the decree of the Minister in charge of mines an the Minister in charge of finances, it is exempted from importation VAT on materials and equipments in the conditions provided for by Article 96 above Mining enterprises and companies are exempted from contributing to the “patent” 2) Mining enterprises and companies that are holders of an operation permit benefit from a spreading over a year, in the payment of registration rights on acts of enterprise creation and capital increase. The due amount can be divided as follows; · one third during the deposit of the act of the formality · the second and the last third, on a trimester and this in the months following the expiration of the deadline. 3) Products destined for exports are subject to zero tax on value added (VAT) when

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these products are supposed to face these taxes. However, products destined for consumption in the local market are liable to custom duties and markets imposed on similar imported products. 4) Are exempted from registration rights linked to mining operations, with the exclusion of those related to beams and accommodation locations.

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