Air Transportation: 561 Companies Vying 561 Companiesvying to Do Government to Do Government Emergency Plan

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Air Transportation: 561 Companies Vying 561 Companiesvying to Do Government to Do Government Emergency Plan MAJOR PROJECTS AGRICULTURE ENERGY BUSINESS IN MINING INDUSTRY SERVICES FINANCE July/August 2015 •N° 29/30 July/August 2015 CAMEROON Air transportation: a battle for Cameroon’s skies 561 companies vying Indo-Chinese to do government consortium seeks to 925 billion FCFA build two auto assembly emergency plan plants in Cameroon BUSINESS IN CAMEROON Yasmine Bahri-Domon A smooth economic take-off Who could still have any doubt about the imminent of airlines at the nation’s four international airports take-off of the Cameroonian economy at a time when (Yaoundé, Douala, Garoua and Maroua). Highly the State has just granted 90% of contract opportu- profitable for companies there and those who plan to nities to local businesses to execute the government’s come, the airline industry is undergoing a spectacu- three-year emergency plan scheduled to run from 2015 lar metamorphosis even while, in other destinations, to 2017? Announced in late 2014 by President Paul planes are gathering dust on the tarmac and custom- Biya, the three-year emergency plan represents a total ers are becoming scarce. In Cameroon, the scene is of 925 billion FCFA and essentially lies with the pri- quite the opposite. Commercial flights are taking off vate sector. The emergency plan is a kind of exponen- much like the Cameroonian economy, which they have tial performance accelerator that aims to increase the been supporting and pushing higher. Since 2013, we efficient usage of investment loans and boost the coun- have been seeing a virtual competition unfold in the try’s economic growth in only three years. To achieve skies above Cameroon. Once rare, airlines have been these economic and social objectives, the Camerooni- supporting the business haven’s economic growth. Air an government chose to increase the performance of France, Brussels Airlines and Camair-co top the ranks, SMEs, create jobs and added value necessary in the sharing 45% of the international market, of which 97% fight against poverty for the well-being of the Cam- involves flights to Europe, the Americas and Asia, com- eroonian people. Local investors are delighted with the pared to 3% of the customers on domestic flights. In 500 Cameroonian companies that are pre-qualified this competitive, open environment, Turkish Airlines compared to the 60 foreign businesses, many of which has entered with the offering of regular flights. This have been snatched up by Chinese, rival and compet- shows Cameroon’s increasing appeal over the years. It itor companies. Isn’t the expression “charity begins at is remarkable that African companies are also rushing home”? Certainly, a strong economy cannot rely sole- to fill Cameroon’s skies. Royal Air Maroc, Air Nigeria, ly on foreign investment as China itself learned after Sky, Air Ivoire, Rwand’air are also doing well in this resting its economic success in the hands of the joint growing sector, which promises the arrival of other ventures it established between foreign investors and companies such as Air Algérie, ECair and Tunisair, Chinese businessmen. There, this formula produced all attracted by the cosmopolitan customers who live miraculous results as local businesses know the reality in and travel to Cameroon. Chartered jets and planes of the domestic market. The construction sector has are not lagging behind. Afric Aviation and Equaflight been in significant need of efficient companies as it Service now rival Air Affaire Afrique in Cameroon. is known that, since 2012, Cameroon has been work- This is an obvious sign of the economic vitality of a ing on major projects. Those who go there can see for country which has been holding its head high while themselves as cranes are visible throughout cities and standing firmly on the ground. Indeed, land based pro- the concrete of hydroelectric dams shines in forest jects are picking-up speed and hint at the future pos- clearings. The country is a major construction site at sibility of manufacturing cars in Cameroon thanks to the moment and it is precisely the enticing investments an Indo-Chinese consortium in Douala and Kribi. Yes, available, thanks to Cameroon’s open, business-friend- things are certainly looking up… ly environment that have resulted in the long lines Bravo to the Indomitable Lionesses, our heroines who made their mark at the Women’s World Cup held this summer in Canada. July-August 2015 / N° 29-30 -3- BUSINESS IN CAMEROON CONTENTS 154In 2014, Royal Air Maroc flew 40,000 passengers on 084561 companies vying the Cameroonian market to do government 925 164Equaflight Service and billion FCFA emergency Afric Aviation have now plan landed in Douala 104Hydraulic crisis slumps 164Air Algérie to fly BUSINESS IN CAMEROON electricity production in Cameroon’s skies starting Publisher Cameroon in 2016 Stratline Limited 124Air transportation: a 174Airport tax collection Publication Director battle for the skies Yasmine BAHRI-DOMON assigned to airlines since March 1, 2015 Contributors 134Air France, Brussels Beaugas-Orain DJOYUM, Ayissi LE BEAU, Airlines and Camair Co Mamadou CISSÉ, Muriel EDJO, 174Cameroon is signing an Brice R. MBODIAM. dominated Cameroon’s air cargo agreement with skies in 2014 Operator Gambia to facilitate the Médiamania Sàrl 134 transport of goods and www.mediamania.pro Domestic flights Design : Jérémie FLAUX, represent only 3% of air services Web : Christian ZANARDI, traffic Translation : Craig BLOOMFIELD 184Cameroon now has a 4th international airport Advertisement 144State employees [email protected] mandated to make In Cameroon 184Cameroon ratifies two Albert MASSIMB Camair Co their first airport transportation [email protected] choice Tel : 00 237 94 66 94 59 agreements with Congo 00 237 77 75 13 98 144After Douala, ECAir to and Kingdom of Spain Printing service Yaoundé 194Daniel Kalbassou: “We Rotimpres, Aiguaviva, Espagne 154Rwand’Air makes have 12 billion FCFA Circulation worth of credit, with Albert MASSIMB air offensive on [email protected] Cameroonian market two thirds for rural Tel : 00 237 94 66 94 59 ou communities” 00 237 77 75 13 98 154“Since the arrival of Free – cannot be sold Turkish Airlines, prices 664Freddy Tchala is the new Managing Director of www.businessincameroon.com have declined by 30% in [email protected] construction sector” MTN Côte d’Ivoire -4- July-August 2015 / N° 29-30 BUSINESS IN CAMEROON 23 29 PUBLIC MANAGEMENT P 28 AGRIBUSINESS P 35 36 42 FINANCE P 41 TIC P 46 47 55 ENERGY P 54 TRANSPORTATION P 57 58 65 BUSINESS FEATURE P 64 MINING P July-August 2015 / N° 29-30 -5- BUSINESS IN CAMEROON THE CAST MIREILLE KABAMBA The administrative and financial head of Canal+ Cameroon since 2014, Mireille Kabamba, has just been ap- pointed as Managing Director of the cable network’s Cameroonian sub- sidiary. She replaces Frenchman Jean Testemale, who held that position for almost two years. A graduate of the University of Liège in Belgium, Mireille Kabamba worked in banking in that country for six years before joining Airtel Congo in 2006. The 42 year-old, newly appointed Managing Director joined the Canal+ group in 2014. Mireille Kabamba will be working to build the company’s distribution network, expand methods of payment and, especially, increase the company’s profitability. JEAN-PAUL MISSI Crédit foncier du Cameroun (CFC) has just granted the Foyo group in Canada the status of representation office in order to attract the Cameroo- nian diaspora community in Canada to use the public housing bank. Led by the company’s Managing Di- rector, Jean Paul Missi, a CFC delegation held a conference on May 19, 2015 in Montreal to inform the Cameroonian diaspora about its partnership with the Foyo group. The Crédit foncier’s mission was also presented, which consists of implementing products to facilitate Cameroonians ac- cess to decent housing. According to Foyo’s mandate, the partner will essentially act as the bridge between the housing bank and Cameroo- nians living in Canada who wish to purchase CFC prod- ucts. -6- July-August 2015 / N° 29-30 BUSINESS IN CAMEROON ADOLPHE MOUDIKI BERNARD CAZENEUVE The Pipeline Steering and Monitoring French Interior Minister, Bernard Ca- Committee presided over by the SNH’s zeneuve, arrived in the Cameroonian Managing Director, Adolphe Moudiki, capital, Youndé, on May 14, 2015. The has just announced that the government French government cabinet member, of Cameroon has cleared all its debts who went to Niger and Chad, was re- contracted with international lenders in ceived on May 15, 2015 at the Yaoundé order to finance its counterpart in the Unity Palace by the President of Cam- Chad-Cameroon pipeline construction project which cov- eroon, Paul Biya. According to various credible sources, ers 1,070 km between Komé (Chad) and Kribi (Cameroon). Bernard Cazeneuve’s trip to Africa focused on security as Within the framework of this project, the Cameroonian the three countries visited by the French Interior Minister government had contracted a loan of 53.4 million dollars have been facing barbaric attacks by the Islamist Nigerian (around 27 billion FCFA) from the IBRD and another loan sect, Boko Haram. of 5.7 million dollars (around 3 billion FCFA) from the After almost two months of calm, a few days ago in the IDA, the concessional body of the same financial institution. Mayo Tsanaga department in Extreme-North, Cameroon, The Chad-Cameroon pipeline, which transports Chadian a skirmish between members of the terrorist organisation oil for export, was built between October 2000 and October and Boko Haram and the Cameroonian armed forces which 2003 when it became operational. The largest private invest- patrol along the border with Nigeria, left 60 terrorists dead ment in Sub-Saharan Africa, the pipeline cost 4.2 billion while the two Cameroonian soldiers lost their lives. dollars or approximately 2.1 trillion FCFA, most of which was financed by a consortium of Exxon Mobil, Petronas and Chevron.
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