Data Collection Survey on Investment Promotion in the Republic of Cameroon
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Japan International Cooperation Agency Project on Supporting Investment Promotion in Africa Data Collection Survey on Investment Promotion in the Republic of Cameroon January 2017 KRI International Corp. Ernst & Young Sustainability Co. Ltd. Disclaimer This report is solely for informational purposes. The information contained herein is current as of September 2016 and is subject to change without notice. It does not purport to contain all of the information users may desire. It is not and should not be construed as advice or as a recommendation regarding any particular course of action. In all cases, users should conduct their own investigation and consult their own professional advisors. In no event shall Japan International Cooperation Agency, KRI International Corp., and Ernst & Young Sustainability Co. Ltd. be liable for any direct, indirect, incidental, special, or consequential loss or damage whatsoever arising out of or in connection with the use of this report, including without limitation negligence. Japan International Cooperation Agency, KRI International Corp., and Ernst & Young Sustainability Co. Ltd. assume no responsibility or liability for any loss or damage even if Japan International Cooperation Agency, KRI International Corp., and Ernst & Young Sustainability Co. Ltd. are advised of the possibility of such damages. Project on Supporting Investment Promotion in Africa Data Collection Survey on Investment Promotion in the Republic of Cameroon Project on Supporting Investment Promotion in Africa Data Collection Survey on Investment Promotion in the Republic of Cameroon Table of Contents Summary Chapter 1 Outline of the Project and the Study .......................................................... 1-1 1.1 Background of the Project ................................................................................... 1-1 1.2 Objectives of the Project ...................................................................................... 1-1 1.3 Implementation Structure of the Project ........................................................... 1-1 1.4 Scope and Methodology of the Study on Investment Promotion in Cameroon1-2 Chapter 2 Outline of the Republic of Cameroon .......................................................... 2-1 2.1 Land ...................................................................................................................... 2-1 2.2 Political Situation ................................................................................................ 2-2 2.3 Social situation .................................................................................................... 2-4 2.4 Economic Situation.............................................................................................. 2-7 Chapter 3 Investment in Cameroon ............................................................................. 3-1 3.1 Investment Trend ................................................................................................ 3-1 3.2 Impact of the article IV consultation by IMF .................................................... 3-4 3.3 Foreign Investment ............................................................................................. 3-4 3.4 Major Foreign Investment .................................................................................. 3-7 Chapter 4 Analysis of Investment Potentials .............................................................. 4-1 4.1 Current overview of industry in Cameroon ....................................................... 4-1 4.2 Current Status of Factors Which May Influence Investment Potentials ..... 4-13 4.3 Potential of Foreign Direct Investment based on the Present Industry Situation in Cameroon ...................................................................................... 4-16 Chapter 5 Investment Policy in Cameroon .................................................................. 5-1 5.1 Investment Policy in Cameroon ......................................................................... 5-1 5.2 Coherence of Investment and Other Economic Development Policies ............ 5-1 5.3 Transparency of Legal System for Business and Investment .......................... 5-8 5.4 Analysis on the Investment Promotion Related Legal System ...................... 5-10 5.5 Policy and Regulation regarding Investment Promotion ............................... 5-12 5.6 Coordination among Stakeholders Regarding Policy Making Process and Policy i Project on Supporting Investment Promotion in Africa Data Collection Survey on Investment Promotion in the Republic of Cameroon Implementation, and Current State of their Effectiveness............................ 5-24 5.7 Evaluation of Investment Promotion Policy, Regulation, Initiatives and Coordination Mechanisms among Stakeholders ............................................. 5-28 Chapter 6 Analysis of Investment Climate in Cameroon ........................................... 6-1 6.1 Overview of Investment Climate in Cameroon and Method of Analysis ........ 6-1 6.2 Current State of the Business Environment ..................................................... 6-3 Chapter 7 Analysis on IPA and its Function in Cameroon ......................................... 7-1 7.1 Organization and Function of API ..................................................................... 7-1 7.2 Overview of API’s investment-promotion activities .......................................... 7-6 7.3 Evaluation of API’s Organization and Function and Investment Promotion Activities ............................................................................................................ 7-10 Chapter 8 Conclusion..................................................................................................... 8-1 8.1 Overall Evaluation of the Situation for Investment Promotion ...................... 8-1 8.2 Entry Path of Foreign Investment and Observed Problems ............................ 8-5 8.3 Suggestions for Promoting Foreign Investment ............................................... 8-9 List of Tables Table 2-1 Main Social Development Statistics....................................................... 2-5 Table 2-2 GDP share by industry ............................................................................ 2-9 Table 2-3 Exports by product ................................................................................ 2-11 Table 2-4 Imports by product ................................................................................ 2-12 Table 2-5 Imports and exports of crude oil ........................................................... 2-14 Table 2-6 Share of Imports and Exports by region .............................................. 2-14 Table 2-7 Export and Import Value by Major Trade Partner (2011) .................. 2-15 Table 2-8 Export and Import Value by Major Trade Partner (2014) .................. 2-15 Table 2-9 Progress of Regional Integration in RECs ........................................... 2-16 Table 3-1 Breakdown of the Gross Capital Formation .......................................... 3-1 Table 3-2 Approved investments by investors ....................................................... 3-2 Table 3-3 Investments Approved by Sector ............................................................ 3-3 Table 3-4 Foreign Direct Investment by Sector (Jan. 2003-Jul. 2015) ................ 3-5 Table 3-5 Foreign Direct Investment by industry (Jan. 2003-Jul. 2015) ............. 3-6 Table 3-6 Foreign Direct Investment by Country of Origin (Jan. 2003-Jul. 2015) .............................................................................................................................. 3-6 Table 3-7 Patterns of Companies’ Expansion to Abroad ....................................... 3-7 Table 3-8 Foreign Investment by Sector and Country .......................................... 3-8 Table 4-1 Annual turnovers by the secondary industrial sector .......................... 4-3 ii Project on Supporting Investment Promotion in Africa Data Collection Survey on Investment Promotion in the Republic of Cameroon Table 4-2 Secondary industrial establishments by region and sector (2009) ...... 4-4 Table 4-3 Secondary industrial establishments by sector (2009) ......................... 4-4 Table 4-4 Number of employees by industrial sector (2009) ................................. 4-5 Table 4-5 Company list of the SNI portfolio ........................................................... 4-6 Table 4-6 Labor Wage in Cameroon and Other Asian and African Countries ... 4-14 Table 4-7 Power Tariffs between Cameroun and African and Asian Countries 4-15 Table 4-8 Power Outage in Cameroon and Other African and Asian Countries 4-15 Table 5-1 Investment Charter Law 2002/004 ........................................................ 5-5 Table 5-2 Priority Industries for Investment Promotion ...................................... 5-8 Table 5-3 Major Incentives Regarding Tax and Customs under the Investment Incentives Law (Loi no 2013/004) ......................................................... 5-13 Table 5-4 Outline of the organizations for the Development of Industrial Land ................................................................................................................ 5-18 Table 5-5 Roles of Each Organization for the Development of Industrial Land 5-18 Table 5-6 Outline of Industrial Zones in Cameroon ............................................ 5-19 Table 5-7 Special Industrial Zones by Location and Sector