in theCEMAC CFA: The debate isopen afro-optimists” Aurélie Chazai:
December 2019 - January 2020 / N° 82-83 CAMEROON BUSINESS IN ”We are are ”We FREE -CANNOT BE SOLD financial center Cameroon becomes CEMAC’s MAJOR PROJECTS MAJOR AGRICULTURE INDUSTRY SERVICES FINANCE ENERGY MINING BUSINESSIN CAMEROON .COM Daily business news from Cameroon
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By Brice R. Mbodiam
Decentralization, let’s go…
No sooner had they reviewed and approved the 2020 budget that the MPs were once again convened for a 15-day special session to review and vote the draft law on the code of decentralized territorial units. The session already started since December 13, 2019 and according the government explanatory statement, the focus law gathers all the legislative corpus for decentralized territorial units in a single document. Government says the drafting of this law is the concretization of “public authorities’ desire to speed up and deepen the decentralization process, reinforced by the recommendations resulting from the general meetings of communes, as well as those of the national dialogue”. Indeed, one of the outcomes of the national dialogue, initiated by the Head of State to find a way out of the Anglophone crisis that has been shaking the country since 2016, was to accelerate the decentralization process and grant a special status to the northwest and southwest regions. Decentralization was then chosen instead of federalism, supported by some of the participants, and the secession advocated by the separatists, who refused to participate in this great dialogue. It’s now effective that the country’s two Anglophone regions have a special status, “based on linguistic specificity, which is expressed through a particular educational and judicial system, the manage- ment methods of which are laid down by specific laws”. But, despite this measure, the law “emphasizes the need to respect national unity, territorial integrity and the primacy of the State”. This means that the government is not going for a partition of the country along linguistic lines. Beyond the decentralization acceleration vision that will also enable the direct transfer of financial resources to local authorities (mean- ing they will no longer be included in the budgets of ministerial departments); the special status for Anglophone regions; or the reaf- firmation of the country’s unity; the new law also meets a multi-year request which is the suppression of government delegates’ posts in major cities. They were kind of “super mayors” appointed to keep a firm grip on the management of large cities despite the presence of elected mayors. The fulfilment of this request was long awaited by many policy entrepreneurs who advocated for it. These significant changes contained in the draft law, which also specifies the functioning of the regions to be set up in the framework of the decentralization process, are to be commended despite the controversy which seems more like identity affirmations rather than real attempts to build a harmonious national community.
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 4
CONTENTS
FCFA INTERVIEW
08 • CEMAC: Challenges 18 • Mouna Kadiri : “The African and directions Continental Free Trade Area to accommodate will bring extraordinary monetary stability opportunities to this and development continent and its people” financing INTERVIEW
FOCUS 22 • Aurélie Chazai : “Returning to Cameroon might seem very surprising and risky to many” 12 • Cameroon and those foreign junior mining companies full of unfulfilled promises BUSINESS IN CAMEROON 13 • Geovic Mining could lose its permit for Publisher Nkamouna nickel-cobalt deposit Stratline Limited
15 • C&K Mining divests shares in Mobilong diamond Publication Director project to Sino-American investor, following Yasmine BAHRI-DOMON scandalous potential overvaluation Contributors Brice R. MBODIAM, Sylvain ANDZONGO, Idriss LINGE. 16 • After it failed the Minim Martap bauxite project, Operator Hydromine announces giant hydro project in Médiamania Sàrl Cameroon www.mediamania.pro Design : Jérémie FLAUX, 17 • Mbalam iron Project: Sundance relies on Translation : Schadrac AKINOCHO AustSino, after several unsuccessful extensions of Advertisement [email protected] its agreement with the government In Cameroon Albert MASSIMB, [email protected] 17 • Only a year after it acquired shares in the Nkout Tel : 00 237 694 66 94 59 iron ore deposit from Affero Mining, IMIC is Printing already seeking Rotimpres, Aiguaviva, Espagne a new buyer Office - Distribution Cameroon Albert MASSIMB, [email protected] LEADER OF THE MONTH Tel : 00 237 694 66 94 59
66 • EDF Pulse Africa 2019: Young Cameroonian Free – cannot be sold engineer wins the prize “Prix coup de cœur” with www.businessincameroon.com [email protected] off-grid power-generation solution -
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 5
NEWS IN BRIEF
PUBLIC MANAGEMENT P 27-39 ITC & TELECOM P 48-54
FINANCE P 40-43 ENERGY P 55-59
AGRIBUSINESS P 44-46 TRANSPORTATION P 60
INDUSTRY P 47 SERVICES P 61-62
WWW.STOPBLABLACAM.COM Rumours, preconceived notions, clichés, superstitions, urban legend: What is real? What is fake? P 63-65
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 6
COMPANY OF THE MONTH
Glass factory Socaver boosts production capacity with 5.3 bln CFA Francs investment
On November 15, 2019, Cameroonian different sizes and colors (35 cl, 100 cl, in Cameroon and neighbouring minister of industry Dodo Ndocké 150 cl, etc.),” SOCAVER explains. countries such as Equatorial Guinea, inaugurated the new facilities of local “This investment, made in a difficult Chad and the Central African glass-making company SOCAVER context, is part of SOCAVER’s strategic Republic. in Douala, the country’s economic plan launched in 2018 by the general In addition, thanks to its crate capital. management, in order to make the production workshop created in A subsidiary of SABC group, leader company a real expert in packaging 2014, SOCAVER, the company 28% of the brewing market in Cameroon, (Ed.note: glass bottles, plastic crates, owned by the Société Nationale SOCAVER invested the tune of 5.3 and preforms), oriented towards a d’investissements (SNI) and private billion CFA Francs for the renovation greater diversification of its business- Cameroonians, also has an annual of its oven number 2, and construc- e s ,” the company adds. production capacity of 2 million tion of a PET preform production By launching the production of PET plastic crates (12 and 24 holes). At workshop. preforms, SOCAVER, the only glass the same time, with the renovation of “With this investment, SOCAVER now factory in the CEMAC Zone, is thus furnace No. 2, SOCAVER’s yearly glass has a workshop with two preform completing its range of products melting capacity has increased from production lines with a capacity of (glass and PET) to satisfy the PET 32,500 to 38,500 tons. 300 million preforms per year. This beverage (soft drinks, mineral Brice R. Mbodiam will enable the production of bottles of water) segment’s packaging needs
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 7
MONTHLY STATISTICS
55%
The Cameroonian government, via the Ministry of Water and Energy, just launched a program to monitor, control and optimize electricity bills in the public sector. According to the program’s creators, it is aimed at reducing the coun- try’s electricity expenditures, which average 41 billion CFA 1300 Francs every year according to official reports. A study commissioned by the government reveals that public lightning represents more than 55% of the electrici- Jean-Bernard Levy, CEO of Electricité de France (EDF), a ty bills the government pays every year. shareholder in the Nachtigal dam construction project in Central Cameroon, was on the dam’s construction site on November 26, 2019. During this field trip, accompanied by Cameroon’s Minister of Water and Energy Gaston Eloundou Essomba, it was revealed that more than 1,300 employees are already working on this project, which was officially launched in February 2019. These employees, and many others to certainly be recruit- ed, are working to deliver, in 2023, a 400 MW dam repre- senting one-third of the country’s current power genera- tion capacity. 1,250 CFA Francs
In Cameroon, cocoa farmgate price has been ever increas- ing. Indeed, according to figures published by Système d’information de filières (SIF), a system that provides up- dated information about the coffee and cocoa sectors, the maximum price per kilogram rose from 1,220 CFA Francs in early November to 1,250 CFA Francs on November 21, 2019. This 30 CFA Francs increase recorded in the country’s pro- duction basins at the end of the rainy season announces an 11 300 tons improvement in sales towards the end of the year since it is a reflection of the growing demand due to the arrival of Between July and September 2019, Cameroonian log- new cocoa processors in the country. gers exported only 11,300 tons of logs to the European Union market. According to the International Tropical Timber Organization (ITTO), these exports are down 20% year-on-year. In Central Africa, this decline in log exports to the EU is also observed in countries such as the Central African Republic (-17% to 13,200 tons), the DRC (-35% to 10,600 tons) and Equatorial Guinea (-64% to 2 900 tons).
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 8 FCFA
CEMAC: Challenges and directions to accommodate monetary stability and development financing
During the extraordinary meeting, In December 2016, when CEMAC to strengthen foreign exchange on November 21-22, 2019, the presidents met in Yaoundé, these re- reserves. Heads of CEMAC member coun- serves were just over 50% of imports During an interview with Ecofin tries expressed a common desire needs, raising public concern about Agency, Gabonese Finance Minister to defend the stability of their the risk of currency devaluation. Roger Owono Mba, acknowledged currency (XAF). At the same time, According to a report published in this problem. He finds it legitimate to they indicated their will to see the November 2019, by the BEAC, the repatriate all the currencies resulting current monetary cooperation region’s foreign reserves at end July from the exports of resources but he agreements with the European 2019 reached CFAF XAF4272.7 billion also points out that discussions with Union and France evolve. (66.21% of import requirements), mining and oil operators have raised an improvement by a little over the concern that the Central Bank The CEMAC Commission and the XAF1,000 billion compared with the should upgrade to the standards for central bank BEAC were tasked with level it was a year ago. fund transfers. A requirement that “proposing, within a reasonable time has not yet been met because this frame, an appropriate plan leading to EXTERNAL POSITION implies going through international the evolution of the common currency.” STABILIZED BUT CHALLENGES clearing entities, whose access is To maintain domestic and external REMAIN TO BE ADDRESSED more demanding than the traditional stability, the Beac has pursued a To achieve this result, the Central SWIFT system (normal transfer restrictive monetary policy over Bank has taken many measures. mode). the past three years. Its actions are The most important, and the most In sectors other than oil and mining, aimed at maintaining the parity rate challenging to implement, is the new the implementation of this exchange between the CFA franc and its refer- foreign exchange regulation. Under rate policy has not been easy. The private sector, in Cameroon par- ticularly, put strong pressure on the “As for our monetary policy, it has so market, making the black market for currency exchange seize the oppor- far helped ensure financial stability in tunity. This change has highlighted many problems. These include the our sub-region. However, there is the alignment of commercial banks, human resources within the Central need to remain flexible for any reform Bank and its branches and even the adaptation of economic operators proposal” to the new procedures. However, the implementation of a permanent consultation and communication ence currency (the euro). According this regulation, all foreign currencies strategy has helped stabilize the to the monetary agreements with generated from exports by CEMAC situation. France, this monetary stability countries, including products of the So far, the BEAC has been unable to requires that the region’s foreign oil and mining sectors, which are overcome some problems. CEMAC reserves always represent at least the leading products exported by member countries have agreed to 20% of CEMAC’s imports. the sub-region, must be repatriated make oil and mining agreements
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 FCFA 9
available so that the BEAC can en- STABILIZATION OF THE considered that too much liquidity sure the revenues declared in these INTERNAL ENVIRONMENT IN represents a risk on foreign exchange sectors are in line with the signed PROGRESS… AT THE EXPENSE OF reserves and that this should guide contracts. However, according to DEVELOPMENT FINANCING the pace at which money is cut. our sources at the BEAC, no con- As far as domestic stability is However, in a context of economic tracts have been sent yet. The other concerned, Beac’s main focus is on diversification, States and investors challenge is that many non-bank reducing excess liquidity in the bank- in the subregion need cash to launch economic actors have not repatriat- ing sector and the monetary system. projects. Some analysts believe that ed their foreign currencies yet. It has reduced cash advances to pressure on the quantity of currency At the end of June 2019, the assets States, added new constraints to the in circulation is a problem for the of CEMAC residents held in foreign refinancing of commitments made financing of the subregion’s develop- banks still amounted to $5.2 billion by banks and undertaken the gradual ment. It would not take the econo- (XAF3,153 billion). The central reduction of cash injections into the my’s actual credit need into account, bank indicated in its discussions sub-region banking sector. It also but rather the willingness to solve a with the International Monetary announced an operation to reduce problem that has never arisen, name- Fund (IMF) that it had no details excessive liquidity for early 2020. ly the pressure on foreign reserves as on the nature of these assets but However, these actions, suggested a result of monetary creation. data collected by Ecofin Agency by the IMF, do not consider the fact At the Central Bank, there is also on the Bank for International on ground. They are based on the discomfort in pursuing this type of Settlements’ platform indicate that assumption that too much liquidity domestic currency stabilization pol- nearly $1.5 billion of these assets in banks could become a risk for icy. Challenges include the fact that are held by CEMAC households currency hedging if large volumes of excess liquidity concerns only a few while nearly $2 billion are owned transfer requests are made. Within banks, owned by foreign groups, with by businesses. the BEAC itself, experts have often restrictive lending policies. Another
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 10 FCFA
“THE NEW MONETARY COOPERATION MUST BE BUILT ON THE BASIS OF SOLIDARITY BETWEEN THE 6 COUNTRIES IN THE REGION” Benjamin Ngongang, Associate Director in charge of the Central African region at FinAfrique that specializes in advice and accompaniment for re- forms in the banking sector, was once the super- visor of Banque de France, CEMAC’s monetary partner. The native Cameroonian comments on CEMAC Heads of State’s decision on the evolution of monetary cooperation with France.
Analysts believe that a medium-term breach of the guarantee provided by France could dest- abilize CEMAC’s financial sectors and econo- mies. Do you share this opinion? BN: The termination of the CFA franc convertibility guarantee provided by France to the CEMAC zone for about 60 years now would obviously be a sig- nificant change for the zone. With such important from an accounting point of view, over this long reform, some may take a pessimistic view of the period and should be able to continue to do so with future and fear a destabilization of the economy the additional autonomy that this reform would and of the financial sector in particular. However, grant it. As long as the reform is carried out in an this break can also be seen as an extraordinary op- organized manner, by involving from the outset all portunity for the zone, which would then have the the stakeholders, there is no reason to fear a col- opportunity to choose a new convertibility regime lapse at the end. more adapted to its contemporary situation. Indeed, at the beginning of the 1960s, when this What do you think would be the best scenar- guarantee system was put in place, the countries io for the evolution of this monetary coopera- of the CEMAC zone were barely officially joining tion? the community of nations after their independ- BN: The new monetary cooperation must be built ence, the solution of a French guarantee for the on the basis of solidarity between the 6 countries young common currency undoubtedly reassured in the region, obviously strengthening the prin- the countries of the region and their trading part- ciples of economic convergence and shared fiscal ners, led by France itself, at the time. Today, the discipline, without losing sight of the structural context is very different. CEMAC countries have differences between the economies. On the oth- acquired experience in the joint management of er hand, as France is no longer the main trading their currencies and foreign exchange reserves; partner of the region, the new currency should trade partnerships have evolved with the arrival, be pegged with a basket of currencies that better in the early 2000s, of Chinese, Indian and Turkish reflect the region’s international trade, with an players which are gradually weighing heavily in autonomous target for the Beac, on the exchange the trade balance of the CEMAC zone. The French rate and price stability objective. guarantee no longer seems really essential in such Finally, we believe that this transformation should context. It is also worth mentioning that this guar- be achieved by strengthening governance and antee has almost never been used because, in 60 transparency within institutions. This must be years of existence, the operating accounts have done gradually, with clear milestones and the in- rarely been negative. Even during the sharp de- volvement of the region’s economic and financial valuation of 1994, the level of reserves had fallen actors so that they will be ready to implement the sharply without, however, becoming negative. new rules when the time comes. Beac has, therefore, managed its reserves well, Interview by Idriss Linge
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 FCFA 11
problem is that if the Central Bank A new development may lie in the African version of the euro), a parallel stops its liquidity injections, banks, stated desire to review monetary monetary mechanism called the dual whose failure would be a major cooperation with France and the currency system. This would unlock problem for the sub-region’s financial European Union. The definition the potential of productive sectors system, would find themselves in of the scope and content of this boosted by the dual requirement for difficulty while their balance sheets evolution has been entrusted to the external and internal stability of the and governance are quite good. CEMAC Commission and the BEAC currency. but already, we have felt a differ- Nigeria’s experience can also be WHAT ARE THE PROSPECTS ence in approach among the Heads inspiring. There, the Central Bank did FOR MONETARY COOPERATION of State. While Teodoro Obiang not limit itself to setting up mone- WITH FRANCE? Nguema of Equatorial Guinea sees tary policy mechanisms. It reduced In his closing speech, Cameroonian this as an opportunity to be free from banks’ access to foreign currencies President Paul Biya recalled the the long-standing monetary partner for the financing of basic needs. The need for flexibility. “As for our mone- (France), Denis Sassou Nguesso of other foreign exchange needs are tary policy, it has so far helped ensure Congo believes that they must take met by the money market (Nafex). In financial stability in our sub-region. more responsibility. addition, it prohibited commercial However, there is the need to remain There are plenty of avenues for reflec- banks from investing in treasury bills flexible for any reform proposal tion. One of them is defended by the and bonds. The objective is to reduce aimed at consolidating its action and Cameroonian statistician Dieudonné excess liquidity in the monetary ensuring the best conditions for an Essomba. The latter, who was already system while ensuring that produc- effective contribution of monetary predicting this crisis situation in the tive sectors are financed, to support policy to the development of the CEMAC region, had suggested creat- diversification. sub-region,” he said. ing, alongside the FCFA (which is the Idriss Linge
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 12 FOCUS
Cameroon and those foreign junior mining companies full of unfulfilled promises
In November 2019, two major events Codias commits to exploiting, at an have fallen on companies with just occurred in the Cameroonian mining industrial scale, the 480,000 tons promises but no actions. On close sector. Indeed, within days, the gov- Colomine gold deposit in the Eastern observation, these operators seem ernment signed iron and gold mining region. The overall investment for more concerned about the impact agreements with two local mining this project is estimated at XAF40 of speculation organized around companies. The first agreement was billion, according to official sources. Cameroonian mining licenses on signed with Cameroonian billionaire This is the first time the international stock exchanges than Dieudonné Bougne’s G-stones which Cameroonian government is placing about the effective development of plans to invest XAF900 billion in such high level of confidence in local the country’s mining potential. partnership with Canadian investors investors operating in the mining Consequently, the mining licenses for the exploitation of Akom II iron sector. Therefore, many observers the country attributed to them are deposit in the Southern region. The see in those conventions signs of the being traded but there are no bene- investment project includes the con- government’s hopelessness with the fits for Cameroon and the pompous struction of a steel plant in Fifinda, numerous unfulfilled promises of for- announcements of exploitation of also in the South, to process the ore eign mining companies that signed mining deposits, covered by those mined from the Akom II deposit. such agreements with Cameroon. licenses, are not followed by actions. The second mining company Indeed, from American Hydromine, Here is a look back at those mining Cameroon trusted for mining Australian Sundance Resources, projects that raised a lot of hope, but operations is Bonaventure Mvondo Canadian-American Geovic to have gradually led to despair. Assam’s Codias. Through the agree- Korean C&K International, the Brice R. Mbodiam ment signed on November 29, 2019, Cameroonian government seems to
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 FOCUS 13
Geovic Mining could lose its permit for Nkamouna nickel-cobalt deposit
In recent days, we learn more about authorities let him keep the mining sell the project’s shares to the highest the audience granted on February permit, which its local subsidiary has bidder,” a source said. 21, 2018, to William Alan Buckovic, held for 16 years but has produced founder of American-Canadian no concrete performance so far. PROJECT ABANDONED AFTER A Geovic Mining Corp, by the General What happened is, given Geovic FAILED ASSET TRANSFER Secretary of Cameroon’s Presidency, Mining’s inability to develop the According to local sources, there has Ferdinand Ngoh Ngoh. The company Nkamouna project since 2003, the been no activity on the Nkamouna has held, since 2003, Cameroon’s very Cameroonian government has been site since 2013, equipment at the first mining permit, granted for the considering, since late 2017, with- headquarters in Yaoundé have been Nkamouna nickel-cobalt-manga- drawing the permit and subsequently removed and it seemed clear that nese deposit, located in the Eastern launching an international tender to Geovic gave up on the project. This district of Lomié. recruit a new partner who, it hopes, happened after the junior mining During that meeting with the would succeed where Geovic failed. company failed to sell its assets on General Secretary, sources close to “Geovic cannot develop the Nkamouna the project to Chinese Jiangxi Rare the matter say, Buckovic announced mining project simply because it has Metals Tungsten Group Holdings his company is going to resume ac- no resources. The proof is that they Company Ltd (JXTC). tivity on the project following a dead have not done anything for 15 years On July 23, 2013, Geovic Mining Corp period of 6 years and pleaded that (16 years today, ed). They just want to had announced that it had signed
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 14 FOCUS
a “definitive agreement” with the National Investment Company (SNI), for non-compliance with the rules); Chinese company. “This final agree- which represented the local partners This is a real disappointment for the ment represented a significant pro- and controls 39.5% of the project was populations of the Lomié district, gress for the operation of the project not satisfied with the Chinese side. who have once dreamed that the in Nkamouna. The development of the This unsuccessful transaction is only town of Nkamouna would become project will start as soon as funds are one of many others either due to home to Cameroon’s first cobalt available and will allow the creation unfulfilled promises, hesitations, or a mine. “In any case, no one listens to of jobs and diversify the economy of constant revaluation of the potential them here anymore. The populations Cameroon,” said Michael Mason, CEO of the Nkamouna deposit. As a result, no longer believe in it,” Célestin of Geovic Mining Corp. sources say, the Geovic shares con- Assama Mbongo, former mayor of But what had been presented as a tinued to rise on the Toronto Stock Lomié, told Business in Cameroon in “definitive agreement” in July 2013 has Exchange in Canada (it was finally December 2014. not be respected by the parties. The excluded from this market in 2014
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 FOCUS 15
C&K Mining divests shares in Mobilong diamond project to Sino-American investor, following scandalous potential overvaluation
C&K Mining, which has held a permit for the Mobilong diamond deposit in eastern Cameroon since December 2010, has transferred the majority of its assets in this mining project to a Mr. Yang, a Chinese billionaire resid- ing in Hong Kong, who sources said is also a US citizen. In this regard, C&K Mining held a general meeting on November 19, 2014, in Yaoundé, after a board meeting in Seoul on November 2, and announced that Mr. Yang is the “new majority sharehold- er” of this mining company. C&K Mining was a joint venture between Koreans and Cameroonians. Following the transaction, the Korean partners who were previously majority shareholders with over 50% stake now only control “less than 10%.” The amount invested by the leading Korean public figures and According to our sources, Paul Ntep Sino-American investor has not been the heads of C&K International, the Gwet who has virtually worked on all disclosed but operations took place parent company of C&K Mining, took mining projects in his country was since “late 2013.” advantage of the opportunity, selling invited as witness on behalf of C&K The assets were sold after the at the higher price before it later Mining to reassure Korean justice on Mobilong diamond mine scandal in declined. the real existence of a world-class South Korea in December 2010. That diamond deposit in Mobilong in East year, C&K Mining, which explored QUESTIONED, BUT NEVER Cameroon. CAPAM has a 10% stake the deposit in 2006, was accused of DENIED in C&K Mining, a company he helped over-evaluating its potential (initially Legal action was taken against the to create with Korean partners and 736 million carats, or 5 times global Korean mining company whose other national operators. production, followed by a readjust- chairman, Deuk Gyun Oh, was Although the Mobilong diamond ment which brought the figure down arrested and jailed in Korea in deposit’s potential is questionable, to 420 million carats) in order to February 2013, before being freed no credible contradiction has so far speculate on the Seoul stock market. in September 2014. This occurred been made against C&K Mining’s Indeed, after receiving the mining following a long hearing (9:00 am 420 million carats estimate. But all permit in December 2010, and to 7:00 pm) in the Seoul Court of parties agree that this is a world- following the initial projection Justice on September 15, 2014, with class deposit. Especially thanks to being declared inaccurate, C&K Cameroonian Paul Ntep Gwet, its conglomeratic part, which is not Mining’s stock rose on the Seoul former Coordinator of the Small- estimated yet but considered more stock exchange, multiplying its scale Mining Support Framework important than the alluvial part, going selling price “by 4.6 in only 16 (CAPAM), a governmental program whose total potential is estimated at d a y s ,” stated Frederic Ojardias, an governing small-scale mining in only 230,000 carats of diamonds. RFI correspondent in Korea. Many production zones.
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 16 FOCUS
After it failed the Minim Martap bauxite project, Hydromine announces giant hydro project in Cameroon
US-based energy company of “any activity launched by businesses the joint venture created for this Hydromine said it has plans to build, in accordance to Cameroon’s legisla- purpose, developed the project until over a period of 5 years, a 2 billion m3 t i o n .” An objective which perfectly 2016. dam and a 1,800 MW power genera- fits the reputation of this firm in the For “failure by CAL to provide all the tion unit (higher than the 1,500 MW country. final preliminary studies on all the currently produced by the country, It should be recalled that Hydromine components of the project (baux- ed) in Cameroon. Projects will be de- somehow bluffed on a significant ite-alumina), with an integrated veloped in the Littoral region, and are project involving bauxite exploita- financial model, on the one hand, part of a bigger project called Grand tion in Minim Martap and Ngaoundal and Dubal Alumina’s feverish desire Eweng, initiated by the company. in the Northern part of Cameroon. In to continue to invest in the project, on Hydromine had already gotten the fact, Hydromine, which appeared, at the other hand,” the Cameroonian green light from authorities and the time, to be just a minor American government was unable to conclude an agreement was signed in that start-up with no offices, financial a mining agreement with CAL. regard on April 6, 2015, a month after resources or even mining expertise, Cameroon also withdrew the Peter Lionel Briger, the promoter of said it would invest around 5,000 licenses for the project from this Hydromine, established Hydromine billion FCFA in the bauxite project. company and sold them to Canyon Cameroon Ltd in Douala, with an Resources in 2017. Through its local initial capital of 1 million CFA Francs. WITHDRAWAL OF LICENSES unit Camalco, Canyon Resources The company claims, without any Unable to manage the Minim Martap committed, according to a source proof so far, that it has increased this and Ngaoundal bauxite project, close to the project, to mobilize more capital to 600 million CFA Francs and Hydromine eventually entered into than 6 billion CFA Francs to meet is considering bringing it to 1 billion a joint venture with Emirates Dubal specifications that extend over a CFA Francs. Alumina and India’s Hindalco, to 3-year non-renewable period. This firm is socially dedicated to the retain only residual shares in the establishment of energy projects and project. Cameroon Alumina (CAL),
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 FOCUS 17
Mbalam iron Project: Sundance relies on AustSino, after several unsuccessful extensions of its agreement with the government
Australian junior mining company Sundance Resources and AustSino decided on 22 October 2019 to ex- tend the deadline for finalizing their equity investment agreement for the Mbalam iron ore project in eastern Cameroon to 30 June 2020. The two companies expect that be- fore that date, Cameroon will reach a new agreement for this project rights on this iron project to June on track. Indeed, the agreement since the old agreement between the 2019 but its wish was not granted. between the two companies provides country and Sundance Resources’ Maybe, Cameroon was scalded by the for the transfer of majority shares subsidiary Cam Iron expired in Australian company’s inability to find in Sundance to AutSino, which will March 2019. financial partners for the project. then develop the Mbalam mining Sundance Resources, which was Anyway, Sundance Ressources sees project, which includes the construc- looking for investors, was hoping AustSino as the investor that will tion of a mine and a railway of more that Cameroon would extend its put the Mbalam iron project back than 500 km.
Only a year after it acquired shares in the Nkout iron ore deposit from Affero Mining, IMIC is already seeking a new buyer British company International CFA Francs each represent 49.5% of important in Cameroon, ahead of Mining & Infrastructure Corporation Caminex’s assets, IMIC specified in the Mbalam-Nabeba iron deposit (in (IMIC), which bought the shares its statement. This call for funds, the the east of the country), 2/3 of which of Affero Mining in the Nkout iron final results of which are still not yet is located in Congo. In December project, in Southern Cameroon, an- revealed 4 years later, reveals IMIC’s 2014, IMIC announced a revaluation nounced it has decided to sell 4,903 difficulties in developing the Nkout of the potential of the Nkout deposit shares of its Cameroonian subsidiary, iron project, in an international to 2.7 billion tons of iron resources, Caminex. The decision was taken context marked by the continuous with a 68% growth on DSO (directly during a general meeting held on 15 decline in the price of this metal. exportable ore). December 2015. As a reminder, the Nkout iron These shares with a value of 10,000 deposit is presented as the most
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 18 INTERVIEW
Mouna Kadiri “The African Continental Free Trade Area will bring extraordinary opportunities to this continent and its people”
Mouna Kadiri is the director of the Africa Development Club, which belongs to the Moroccan Attijariwafa bank’s group. She recently co-chaired with Cameroon’s minister of trade the third edition of the Africa Development Club’s conference, in Douala. In this interview, she talks about the Club’s actions to benefit African entrepreneurs; this is as the Continental Free Trade Zone is about to be launched.
Business in Cameroon : Recently, nies.” The theme was picked by SCB recent years. They are mostly due to the Africa Development Club Cameroon (subsidiary of Attijariwafa exchange regulations, key reforms held a meeting focused on trade, Bank) and the African Development introduced by the government, and a meeting which you co-chaired. Club in Cameroon. These two firms a will (of the government and the Why did you pick this topic are the most fit to identify the most private sector) to make them more particularly? relevant topics to foster investment visible. It was based on these changes Mouna Kadiri : This was a multi- and value creation, for both local and that the committee that worked sectoral mission around the theme international firms. Cameroon has on the meeting decided that trade “Trade as growth leverage for compa- recorded various transformations in would be a great theme, given its
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“Regardless of its origin or identity, any business that can contribute to the development of a community, create jobs, pay taxes, improve the lives of people or infrastructure, in Africa, is welcomed by the Africa Development Club.”
huge potential for value creation to your club to better profit from initiative to create economic val- through deals, joint ventures, etc. the African continental free trade ue, ---. Truth is, this zone marks the The main component of the meeting agreement (AfCFTA)? beginning of something big and with were the business meetings organ- MK : Long before the AfCFTA project it, we can achieve historical records. ized after discussions between key came up, we had been operating for We can affirm that this free-trade speakers. The latter included some 10 years, with no free trade zone. We zone is not only the materialization top officials such as the minister of had, as you may guess, to deal with of a strong political will but also a trade, who sponsored the mission, multiple challenges, related to infra- project aimed at bolstering econom- the deputy national director of the structure, administrative procedures, ic value since we already cooperate Bank of Central African States, and transport, and logistics. Over the pe- among ourselves, even without it. the chairperson of Telcar Cacoa, riod, we brought together more than Our role since the last edition of Mrs. Fotso. During these business 10,000 operators. This took us six the Africa Development Forum meetings, participants were able to editions of the Africa Development themed “When East meets West,” exchange on investment opportuni- International Forum, which generat- is to primarily inform, connect, ties, deals, and joint ventures. ed more than 22 business meetings. and get operators to engage in the They also visited the autonomous The latter yielded concrete deals, daily activity of businesses; raise port of Kribi, which is a major project investments, factories, among others awareness of economic operators considered as a hub in Central Africa. - transactions worth millions of about the African Continental Free They were able to appreciate the dollars. Trade Area, which is key to boosting enormous infrastructure, as well as The first challenge to tackle is to business opportunities, in line with its modern aspect. This helped build help businesses build a relationship the continent’s 2020-2025 strategic trust with economic operators and of trust with their partners. This plan for trade. that is mainly why we picked trade as way they will have an axis for value We also wanted to break from the our main theme. creation and that is exactly the old habit that African countries got purpose of the free-trade area. Our into since independence. Indeed, BC : So, the Club is not only an role is to be the flag-bearer of Africa’s we are used to North-South, South- organization but a real tool that private sector, tell the world: “Yes! South cooperation, as well as to is building tomorrow’s African It is possible, we create jobs.” Some France and UK centered trade. Well, trade industry. Concretely, how affirm that this free-trade zone is not we wanted to end this and connect do you help businesses affiliated only a political act, but also a strong major regions, large cultures, and
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“It is time we become real actors and take our responsibilities. It is not really obvious nowadays where given shareholders of a company are each located, so instead of focusing on origins of economic operators, we’ve decided to concentrate on creating added value across businesses in Africa.”
major cultural groups. To this end, We must preserve this dynamic. We Club, there is a great bank group we invited representatives from must protect it, and though this will like Attijariwafa. But you also said Kenya, Rwanda and Sierra Leone to be a long journey, we are convinced there were other banks such as be guests of honor of our forum. that the African Continental Free Spain-based Banco Santander, or We also had some from Nigeria, and Trade Area will bring extraordinary the Al Mada Pan-African Fund. Tell even China; all to break old habits, opportunities to this continent and us, how do all these institutions mix things up in the way we work. its people. plan to finance intra-African trade This sharing of experience must yield which you support? impressive insight on optimal coop- BC : Nowadays, trade and finance MK : First, let me tell you how our eration methods. It must help foster almost go in pairs in Africa and Club operates and the model we an intra-Africa collective mindset. behind the Africa Development have adopted. We have decided to connect and regroup all banks of the Attijariwafa Group, as well as communities it works with, “This helped build trust with both private and public. Next, we had support from a Pan-African investment fund, which is Al Mada, economic operators” Attijariwafa’s reference stakeholder. We were also among the founders of the Trade Club Alliance, which
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“Our role is to be the flag-bearer of Africa’s private sector, tell the world: “Yes! It is possible, we create jobs”
regroups 14 partner banks. The BC : While this idea is original, the This is a new path. We, Africans, don’t Attijariwafa Bank Group is the only Africa Development Club comes know one another enough and this African lender, besides a South behind others like China, Japan, brews clichés and in the worst-case African bank (Ed.note: Standard India, or Russia. These economies real social disasters. Based on this bank), to be part of this alliance are entering the African continent assessment, we focused on suppress- which currently covers 65% of leveraging similar initiatives. Do ing barriers, providing reliable data, global trade corridors. you consider them as potential connecting, supporting, encouraging, The alliance was created at the partners, rivals or maybe both? and nurturing the interest sparked by beginning of October 2019. It is a MK : Our vision is to contribute to African businesses. digital platform that helps entities Africa’s development, but this vision You may be aware that Africa does such as the Africa Development is not Afro-centered. Regardless of its not only consume what foreign part- Club operate better. It provides origin or identity, any business that ners decide they should. Recently, support, networking opportunities, can contribute to the development there have been some eloquent access to reliable market data, and of a community, create jobs, pay speeches in this regard. It is time we financial support to its members. taxes, improve the lives of people or become real actors and take our re- A key contributor to the alliance is infrastructure, in Africa, is welcomed sponsibilities. It is not really obvious Banco Santander. To date, the alli- by the Africa Development Club. nowadays where given shareholders ance gathers more than 16,000 busi- However, we are pragmatic and we of a company are each located, so nesses. It is our pride to have major know that out there, on the field, instead of focusing on origins of eco- international banks praising the African businesses come first. What nomic operators, we’ve decided to Africa Development Club, referring we do is tear down all invisible, psy- concentrate on creating added value to us as being extraordinary. They chological walls that exist between across businesses in Africa. not only praise us but all African Africans with different backgrounds businesses which we represent. and cultures, all over the continent. Interview with Idriss Linge
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Aurélie Chazai “Returning to Cameroon might seem very surprising and risky to many”
After working for many major law firms in France, this Cameroonian lawyer and legal advisor decided to return and serve her country in 2017. Chazai & Partners, is the firm she founded and a dream come true for a woman who dared to believe in her country. In this interview, she shares her very unusual story.
Business in Cameroon: Could you market shares in an environment a difficult business environment? tell us about your beginnings in where we were unknown. The main AC : As afro-optimists, we tend to Cameroon? When did you start challenge at first was to convince see the glass half full rather than your activity and under which prospects and clients to reach out half empty. However, operating in conditions? to us. Cameroon’s legal industry is quite Aurélie Chazai : We started in complex as many see this sector as November 2017 with a team of only BC : What pushed you to decide to corrupt. What we have therefore two people. No one knew about us return to set a business law firm in decided to do is provide a different in Cameroon so we had to secure a country which is known to have service, one based on good ethics,
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a structure that gives them access to the international market.
BC : Being at the centre of legal talks between investors and even- tually public authorities, what do you make of Cameroon’s business law? Do you think it enhances businesses’ competitiveness in its actual state? AC : Let’s not play ostrich here. Things can be improved in this area. Cameroon’s ranking in the latest edition of the Doing Business index is not really the best. We can make some improvements, in the govern- ance area, for example, to be more attractive to investors interested in Cameroon. We try to reassure foreign “Our goal was to provide a different economic offer: we wanted to make sure that economic operators investors by telling them that not all have access to local experts for their major transactions, instead of necessarily resorting to firms based in London or Paris.” is bad in Cameroon, that there are some people, both public authorities and civil servants who do their job very well. So, they can discuss with diligent work, and a reliable report to AC : It is true, looking at corruption serious and competent people, who our clients. That was what drove us, in the Cameroonian legal system, can support their investments in with a little naivety, to come back to that some things must be im- Cameroon. offer our services in Cameroon. proved in regard to management. We have success stories here in Regardless, there are real opportu- Cameroon, companies that came to BC : There were other lawyers nities in our daily activity, especially invest and were happy about their in- already established in the country. as more and more companies need vestments. Some of them have been What added-value did you bring structuring. Cameroon is not in Cameroon for more than twenty and what was, in your opinion, the isolated from the rest of the world. years. And though we tend to often factor that would be decisive to We are the driving force of Central talk about what is wrong, we should your success? Africa. We have business relations also talk about what goes well. AC : Our added-value compared to already established firms was that our associates already had some experience at the international “Returning to Cameroon might level. We had been trained and had seem very surprising and risky worked at major firms in Paris, and other places in Europe. Also, we had to many.” a different look on things. Our goal was to provide a different economic offer: we wanted to make sure that with other countries so, economic economic operators have access to operators in Cameroon need to have BC : What challenges did you face local experts for their major transac- a specific structure and that is where as you launched your firm? tions, instead of necessarily resorting legal advising comes in. AC : Our biggest challenge was to in- to firms based in London or Paris. There could be legal frictions if some vest in a sector which was not really decisions fail to be executed or are known. There were many obstacles BC : Tell us a bit about legal advis- executed poorly. Fortunately, there on this path. Talks with the adminis- ing in Cameroon. Do you believe are ways to avoid these, through tration, the fact that we had to find there are opportunities or things advising. We intervene before reliable partners are some of the to improve in this sector? conflicts by helping businesses adopt obstacles we had to overcome. Then,
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“We had no issues regarding human resources. There are a lot of very well trained lawyers and jurists in Cameroon”
there was the issue of trust. Being tend to go to much older lawyers, team. Another challenge was how a team of young people, securing a with more experience. We had to put other lawyers in the country treated spot on the market is not the easiest a lot of efforts into convincing our us at first, as they were not really in Cameroon. We, therefore, had to prospects and clients to trust us. On used to the innovative communica- convince clients and prospects to the other hand, we had no issues re- tion methods we practiced. All these trust their cases with us, even the garding human resources. There are actually forced us to build ourselves a most sensible involving millions of a lot of very well trained lawyers and spot in Cameroon. CFA francs. jurists in Cameroon. It was fairly easy In effect, in such conditions, people to put in place a reliable and strong BC : As a woman, what challenges do you face while running your business daily? AC :The only true issue here is trust. “As afro-optimists, we tend to Often, when a case is handed to a man, he is not asked for a cascade see the glass half full rather of references beforehand. However, than half empty.” when it comes to a woman, a young one, in addition, most people ask for more assurance than they would if
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“What actually pushed me to take action was realizing that most Africans flying abroad were flying third-class whereas foreigners coming to Africa would fly business class. This means that foreigners come here to make money while we go to Europe to survive.”
they were working with a man. This BC : You decided to leave France was realizing that most Africans is not specific to our profession, it to return to Cameroon in 2017 flying abroad were flying third-class happens in all economic sectors. while many Africans move to the whereas foreigners coming to Africa Regardless, instead of complaining Western part of the world seeking would fly business class. This means about it, I see this as an opportunity greener pastures. You have taken that foreigners come here to make for us, women, to do better than the the opposite path. Why did you money while we go to Europe to rest. Once you show how competent pick this path which may seem survive. I just thought there is really you are, everyone forgets that you surprising to many? something to do in Africa and also I are a woman. Women working in AC: It is true that my choice of believed that Africans must under- this field must be highly resilient and returning to Cameroon might seem stand that our continent is full of perseverant. very surprising and risky to many, opportunities. especially given that 2017 was a year BC : With such a demanding work, when things started getting difficult Interview by Idriss Linge how do you reconcile your job as in Cameroon. Regardless, I thought and Jean Christian Bernard Nselel legal advisor with your family life? that was the right move and what AC : Being a woman and having to actually pushed me to take action run a legal advising firm while also managing my family, it is crucial to have a support system. It is crucial to “What we have therefore decided have a caring, understanding, and at- tentive family. In my case, I am lucky to do is provide a different service, enough to have a very understanding husband who is also a very good one based on good ethics, diligent father. This allows me to be fulfilled professionally, without feeling guilty work, and a reliable report to our personally. That’s something I’m lucky to have. clients.”
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 27 PUBLIC MANAGEMENT Government submits penal code amendment, punishing tribalism, before parliament During the November 2019 budget from XAF5,000 to XAF500,000. This 3 million. If mitigating circumstances session, the Cameroonian parliament fine is increased to XAF20 million are admitted, the prison sentence will review a draft amendment to if the offence is committed via “the may be less than 3 months and the the Penal Code. The purpose of this press, radio, television, social networks fine XAF200,000. These penalties are amendment is to introduce provi- or any other means likely to reach the doubled when the offence is com- sions punishing racial, religious and public.” These penalties are doubled if mitted by a public official, a political tribal vilifications. the offence is committed to incite ha- party official, a media official, an According to the draft text submitted tred and contempt between citizens, NGO or a religious institution. to parliamentarians for consid- the draft indicates. This draft text appears as a response eration and adoption, racial and As far as tribal vilification is con- to the hateful and tribal speeches religious vilifications will now be cerned, the offence is punishable by in Cameroon, mainly on social punishable by prison terms ranging imprisonment of one to two years, networks, since the October 2018 from 6 days to 6 months, with fines with a fine between XAF300,000 and presidential election. Refugee assistance: Cameroon obtains over XAF77 billion from World Bank On November 19, 2019, in Yaoundé, four projects funded by the “the IDA18 regional sub-window for refugees and host communities” were officially launched. According to Abdoulaye Seck, Country Director of World Bank operations in Cameroon, the total financing amounts to $130 million (a little over XAF77 billion), includ- ing $86 million (Over XAF51 billion). “It is important to recall here that Cameroon was the first African coun- try to benefit from the IDA 18 special refugee window. This is in recognition of the country’s generosity and its long tradition of solidarity and hospitality income-generating activities for poor level, where the same organizations towards displaced people,” Abdoulaye and vulnerable households will enable and community relays can facilitate Seck said. them to bear the direct and indirect different activities. The objective is Specifically, in the framework costs associated with these services,” that the sum of the efforts should be of the projects launched, “basic the country director explained. greater than the fragmented efforts, services such as education, health “To this end, the four projects will and this, for a maximum impact on and nutrition will be provided to have to be implemented together at the communes and host populations,” populations, while cash transfers and all levels, especially at the communal he indicated.
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National dialogue: The AU, la Francophonie, and the Commonwealth inquire about the implementation of recommendations
Paul Biya, President of Cameroon, can count on the constant support It has been almost three years since received on November 27, in and accompaniment of the African a socio-political crisis broke out in Yaoundé, a joint mission of three Union, the Francophonie, and the northwestern and southwestern international organizations, led Commonwealth in its efforts to resolve Cameroon. The said crisis began with respectively by the President of the the crisis in the North-West and South- corporate demands from lawyers African Union Commission Moussa We s t ,” the Presidency reports. and teachers but turned into violent Faki Mahamat, the Secretary-General “We believe that we have an obliga- separatist claims with armed groups of International Organisation of tion to contribute modestly through spreading death and desolation. La Francophonie (OIF) Louise advice, interventions in mediation According to the United Nations Mushikiwabo and the Secretary- activities or on technical subjects such High Commissioner for Refugees, General of the Commonwealth as bilingualism and multiculturalism,” 21,291 Cameroonians fled violence Patricia Scotland. said Louise Mushikiwabo. Patricia and fights between secessionists According to the Presidency, this Scotland, for her part, said that the and the army, towards Nigeria. The mission came to inquire about Commonwealth is committed to NGO International Crisis estimates developments of the situation in the doing everything possible to support that about 2000 people died after English-speaking regions (North- the ongoing peace process initiated 20 months of fighting. The UNICEF, West and South-West) and on the through National Dialogue. “The on its part, indicates that the implementation of the recommen- President of the Republic has once widespread insecurity has forced dations of the National Dialogue again expressed his willingness to more than 4,400 schools to close in held from September 30 to October engage in dialogue and appeasement,” the English-speaking regions of the 4, 2019. “Overall, it appears from the president of the African Union country. their interventions that Cameroon Commission added.
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Cameroon: Inflation could rise to 2.7% due to currency crisis, insecurity and flood In Cameroon, according to a note will be an increased shortage of in the country. Currently, it is 2.3%, recently published by the national cereals (maize, rice, millet, sorghum), having gained 1.8% in H1 2019, 1.4% institute for statistics INS, inflation onions, beef, etc in markets. in Q1 2019 and 1.1% at end of 2018. could rise further at the end of the “In view of these factors, as the end of The three main components year. This is due to real threats of a the year approaches, and in the ab- responsible for this inflation are food slowdown in the economy due to the sence of measures taken to curb, in the products, restaurants, and hotels, as tightening of conditions for capital more or less short term, the currency well as clothing and footwear. Prices outflow, as well as persistent insecu- crisis and speculation, inflation could of imported goods are rising sharply, rity in some regions. reach around 2.7% by the end of 2019,” probably due to malfunctions in the In the Far North, in particular, the the INS notes. distribution chain, partly caused by INS indicates, because of floods The Institute points out that, on the currency crisis. that destroyed crops, hundreds of average over the past 12 months, livestock and grazing land, there inflationary pressures have persisted
Gender equality: Cameroon among medium countries in Africa with global score of 0.59 out of 1 (McKinsey)
On November 26, 2019, on the Mauritania, Mozambique, Tanzania, legal protection of women’s rights sidelines of the Global Gender Togo, Uganda, and Zambia are the in politics; 0.78 on protecting the Summit 2019 (November 25-27) in countries with medium inequality integrity of women; 0.62 on gender Kigali, Rwanda, the McKinsey Global between genders. Their scores are inequalities in society; 0.52 on access Institute, McKinsey’s independent improving towards parity at work to professional and technical occupa- research institute, presented its 2019 and in society, compared to other tions, etc. Cameroon’s final score for report on gender equality in Africa African countries. gender parity is 0.59 to 1. entitled “The Power of Parity.” Cameroon’s scores according to the The continent’s leading countries are According to the presentation, McKinsey Global Institute are 0.53 South Africa (0.76), Namibia (0.72), Cameroon, Democratic Republic out of 1 on parity at work; 0.71 on Rwanda (0.69), Zimbabwe (0.66) and of Congo (DRC), Ethiopia, Gabon, opening up the formal and infor- Lesotho (0.64). Ghana, Kenya, Madagascar, mal economy to women; 0.35 on
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Paris Peace Forum: Paul Biya explains the background of the Anglophone crisis
Invited by his French peer, different. So, we have had conflicts manitarian crisis has been worsen- Emmanuel Macron, to partici- that are being resolved at the moment ing, pushing more people into exile. pate in the Paris Peace Forum to keep the part of my country that Currently, there are nearly 42,000 2019 (November 11 to 13), was under British colonization under Cameroonian refugees in Nigeria and Cameroonian President Paul Biya a specific status,” Paul Biya explained. 530,000 internally displaced persons. actively participated in a debate “We had the possibility of integrating International Crisis, an NGO, session moderated by Mo Ibrahim the English speakers [Anglophones] reported nearly 2000 deaths after 20 on the theme: “Rise of the south: directly into the Francophone system, months of fights between pro-inde- towards a more balanced global which was predominantly used by pendence extremists and defence governance system.” 80% of our people but, I believe that forces. countries are now concerned about Despite the organization of a “My country is complex. We were affirming their identity and that is national dialogue on this crisis (from first a German colony. After the First why we are setting up a special status 30 September to 4 October 2019 in World War, Germany lost its colonies, that recognizes the specificity of the Yaoundé), the EU expresses its con- which were shared between Great English-speaking area, but it remains cern and strongly condemns the per- Britain and France, and my country an integral part of Cameroon,” the sistence of violence, against civilians was divided. Some were under British president added. particularly, and the level of insecuri- colonization and others under French ty in the North-West and South-West. colonization. The result has been a jux- PREDATORY CRIME “Many serious human rights violations taposition of culture and civilization Since October 2016, the Anglophone continue to be reported and predatory that makes things quite difficult. Well, regions (the North-West and South- crime has increased,” the European we have done everything we can to put West) of Cameroon have been going Union council indicated. the two languages, English and French, through a violent pro-independent SA on an equal footing but, the mindsets, socio-political crisis. According to as well as the judicial systems, are the European Union (EU), the hu-
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CEMAC: Central bank recorded 52% drop in its net free equity in 2018 According to official documents national treasuries as a loss. On the strong guarantees. obtained by Ecofin Agency on other hand, the vast majority of the The challenge is that these type the sidelines of the extraordinary investments made by the institu- of financial products, located in summit of CEMAC heads of state, the tion have expired and the capital developed markets, are so much in net free equity of the Bank of Central gains they generated are no longer demand by many investors that their African States (BEAC) has declined available. returns have fallen. For the institu- by 52% in 2018. The institution’s 2019 financial tion, there is a need to urgently think Two main reasons are put forward results should provide more detail about the issue. to justify this situation. On the and precision. But central bank The Beac is still being solicited by one hand, BEAC, which plans to officials believe that recovering free some CEMAC institutions to solve strengthen its existing cooperation equity capital to its pre-2018 level their financing problems. In addition, with international financial actors, remains quite difficult. This is due to it needs to reassure States that it can has optimized the way it calculates the decline in income from foreign effectively assist them in investing its exposure to States. Because of this assets. In accordance with its articles the surplus on their net foreign optimization, the BEAC recorded of association, BEAC is obliged to assets. XAF212 billion of receivables held in invest in financial products with
CEMAC: Heads of state committed to stable currency but open to “possible developments” in monetary cooperation At the end of the closed-door extraor- dinary meeting held on November 22, 2019, in Yaounde, CEMAC Heads of State expressed their commitment to a stable currency. This choice does not come as a surprise since in his opening speech, Paul Biya, the host of the event, indicated that a monetary adjustment was not on the agenda because of the improvement of the foreign currency reserve. Nevertheless, the Heads of State management of the refinancing of by the Heads of state, it seems that opened ways for “possible devel- securities issued by private compa- the presidents want to bring a dose opments” in policy and monetary nies operating in the non-financial of realism to the achievement of cooperation. Once again, they sector. There is a new point, however. budgetary consolidation objectives. entrusted the BEAC with the task of Indeed, the presidents indicated Countries whose economic pro- making proposals in that regard as that they were open to discussions grammes with the IMF have come to soon as possible. in the framework of the monetary an end may be able to renew it. As far as monetary policy is con- cooperation agreements between Let’s recall that these resolutions cerned, the BEAC is already explor- the subregion, the Euro and France take place in an uncertain environ- ing the field and should publish a re- but, it is difficult to know what the ment for the world economy and port soon. The report should include points of arbitration were during the less than 3% growth forecasted for actions to strengthen the stability session. CEMAC. of the banking sector, and also the As for the other issues discussed
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Douala and Yaoundé land XAF2.7 bln grant agreement for their “Sustainable Urban Mobility Plans” On November 22, 2019, Hans-Peter Schadek, Head of the European Union Delegation in Cameroon and Nikolaos Milianitis, Head of the European Investment Bank’s (EIB) Regional Representation in Central Africa, concluded a three-day work- ing visit to Douala. According to the European Union delegation, during his stay, Hans- Peter Schadek signed a grant agree- ment to support the urban commu- nities of Yaoundé and Douala, which are in partnership with the city of Bordeaux in France, for the imple- mentation of the “Sustainable Urban Mobility Plans.” The aim of these plans, supported by the European Union with a tune of XAF2.7 bil- lion, is to improve local govern- ance in the field of urban mobility particularly. cities (Yaoundé and Douala). In was suggested. The construction of The European Union supports these the framework of these plans, the feeder roads, penetrators and a series plans via the creation of a governing creation of a mass urban transport of roads are also planned in the body for the transport sector, an system in the form of a cross with a framework of the “Sustainable Urban urban mobility observatory and an North-South and an East-West axis Mobility Plans.” urban planning agency in the two as the main public transport axes Cameroon acquires software to check traceability information on a range of products The Cameroonian Ministry of wines and spirits in accordance the product on which it is stamped is Commerce informs that its fraud with Decree No. 2010/0483/PM of 18 considered to be of dubious origin. prevention and control units have March 2010, setting the procedures “At the end of this operation, a large just received smartphones and for labels on some manufactured quantity of wine and liquor was seized tracking software to improve control products. and transported to the Ministry of techniques for some manufactured With the said tracking software, Commerce. These operations reflect products, including wines and spirits. fraud prevention and control units public authorities’ commitment to These teams were deployed can trace the information on the fighting all forms of illegal trade and on November 14-15 in Douala, sticker from purchase to its final des- unfair competition,” the ministry Bafoussam, and Yaoundé to ensure tination. If there is no accurate trace- indicates. the conformity of the stamping on ability information on the sticker,
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 PUBLIC MANAGEMENT 33
Port of Kribi: French Navy command and supply ship BCR “Somme” docks in prelude to naval exercise in the Gulf of Guinea As a prelude to a naval exercise area. The exercise addresses several call at the port of Kribi is unprece- currently being prepared in the Gulf threats including pollution, piracy, dented because the port itself is new. of Guinea, the French Navy com- illegal trafficking and rescue at sea,” “This is a diplomatic stopover in mand and supply ship BCR “Somme” said Gauthier Dupire, Commander of prelude to commercial stopovers for recently docked at the port of Kribi. the BCR Somme. the transport of military equipment. “We docked at the port of Kribi as a Captain First Class Charles René Indeed, there is a number of military prelude to a major exercise that will Kontelizo, Commander of the Port of equipment that has hitherto transited take place throughout the Gulf of Kribi, said that as part of the marine through the port of Douala, which Guinea, from Angola to Senegal. It is a cooperation between Cameroon and will now pass through Kribi to the response to a process launched here in friendly States, Cameroonian ports Central African Republic, Chad and to Cameroon in 2013, dealing with mar- regularly receive military vessels. neighboring countries,” Commander itime safety in the above-mentioned However, he said, the French Navy’s Kontelizo added. Business death rate was 36% in 2009-2016, the INS reveals The Cameroonian national institute for statistics INS recently published a report on the second business census covering the 2009-2016 period. This report provided an up-to-date picture of the productive fabric and a complete basis for business surveys in the country. According to the report, out of 6,458 companies recorded at the start of the period, it appears that 2,316 ceased activity during the intercensal period. Almost all (approximately 95%) of those companies that ceased activity during the period had done so before 2014, the INS reveals. “This micro-companies. regions (12 in total) were grouped puts the overall cessation rate at near- The Littoral concentrates a little into six economic regions. Just over ly 36% over the period under review,” more than 64% (1,495) of the 60% of the companies that have the INS writes. companies that ceased operations ceased operations are located in The survey reveals three fundamen- during the period under review. Douala and nearly 20% in Yaoundé. tal causes of this cessation rate. In It is respectively followed by the The “West and North-West” eco- order of importance, the size of the Central (484), the Western (135) and nomic region has the third-highest company seems to be the variable Northwest (42) regions respectively. number of business terminations that most influences activity ces- On the other hand, the East (35), (7.4% of companies having ceased sation. Indeed, compared to Large Adamaoua (29), Southwest (24), operations). This result, according to Companies, medium-sized compa- North (23), South (21) and the Far the INS, is not surprising given that nies have almost 20% more chance North together represent nearly 8% these three regions concentrate most of ceasing operation while the risk is of the extinct units. of the country’s productive fabric. 31% for small businesses and 39% for For analytical purposes, the surveyed
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 34 PUBLIC MANAGEMENT
Legislative and municipal elections scheduled for February 9, 2020 In a decree published on 10 just over a year after the presiden- ing called in a context marked by the November 2019, Paul Biya, presi- tial elections of October 2018, have Anglophone crisis, which has led to dent of Cameroon, summoned the been postponed twice. Indeed, as the recent organization of a national Cameroonian electorate for a double authorized by law, in 2018 and June dialogue. One of the main resolutions vote, on 9 February 2019, aimed at 2019, the Head of State extended the of this great dialogue is the establish- electing town councilors for the mandates of deputies and municipal ment of stronger decentralization, country’s 360 municipalities and 180 councilors elected during the 2013 meaning the transfer of greater deputies for the National Assembly. elections. responsibilities to local authorities. These elections, which take place The February 2020 elections are be- FECAFOOT invited to elaborate draft scale for bonuses to be paid to national teams for major sporting competitions “Draft scale of bonuses to be paid to Cameroon’s national football teams”; This is the subject of the letter sent by the country’s minister of sports Narcisse Mouelle Kombi to the presi- dent of Cameroon’s football federa- tion (FECAFOOT) Seidou Mbombo Njoya (photo) on October 22, 2019. In the letter, the minister indicates that it is another request to establish scales of bonuses to be paid to teams for major competitions. These in- clude continental qualifying rounds, the African Cup of Nations (AFCON), the World Cup, the African Games, and the Olympic Games. “The proposed bonuses must be scaled proportionally so that they remain an additional element of motivation for the athletes concerned,” the official instructed. In addition, the President of Fécafoot is invited to present measures taken to avoid tensions, disputes, and claims related to sponsorship revenues. The Minister of Sports thus hopes to national team and the Fécafoot were were scheduled to play their first prevent the repeated crises observed unable to agree on the remuneration match because of unpaid bonuses. among Cameroon’s national football related to this competition. In addi- This has often had a negative impact teams regarding the payment of tion, in the past, Cameroon’s football on players’ individual and collective bonuses. At the 2019 CAF Africa Cup team was used to arriving in host sporting performance. of Nations in Egypt, for instance, the countries the very same day they
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 PUBLIC MANAGEMENT 35
Cameroon’s withdrawal from AGOA stems from “ignorance or deliberate desire to ignore” reality on the ground, minister Sadi says
On November 18, 2019, René desire of the United States govern- tains that Cameroon is only ensuring Emmanuel Sadi, Cameroonian m e n t ,” Sadi said. the safety of people and property in minister of communication, held According to the Minister of the regions concerned. a press conference in Yaoundé. Communication, the Cameroonian “How can one accuse Cameroonian During the press conference, the government can say that these defence and security forces of human official reacted to the decision reasons put forward to justify the rights violations (…) but remain issued, on October 31, 2019, by decision of American authorities insensitive and silent in the face of the Donald Trump, President of the hardly correspond to the reality on unspeakable atrocities committed on a United States of America, to ex- the ground. The reason provided daily basis by armed pro-independent empt Cameroon from the facilities stem, the Cameroonian government groups in the North-West and South- provided by the African Growth thinks, either from “ignorance or West” regions of the country, the and Opportunity Act (AGOA) as of unawareness of the real situation, as it government spokesman questioned. January 1, 2020. has prevailed and still prevails in the According to the official, the North-West and South-West; or from a Cameroonian government cannot This withdrawal, according to the US deliberate desire to ignore this reality.” hide its astonishment due to the president, is motivated by “persistent absence of any reference (let alone gross violations of internationally rec- TERRITORIAL INTEGRITY condemnation), in the US presi- ognized human rights” by Cameroon. In any case, says Emmanuel René dent’s release, to the “countless and “The Cameroonian government esti- Sadi, the main reasons that have innumerable” atrocities perpetrated mates that Cameroon’s eligibility for forced the Government of the by pro-independent armed gangs AGOA was a sovereign decision of the Republic of Cameroon to ensure a in the North-West and South-West, U.S. government, so much so that the significant presence of defence and against defence forces and innocent government’s decision to withdraw security forces in the North-West and populations, even though many Cameroon’s benefits from this law is South-West regions are to preserve images and videos, on media and an act of sovereignty that no one can Cameroon’s territorial integrity social networks particularly, con- dispute. However, what is questiona- against separatists who took arms stantly testify to this. ble in our view are the pretexts and against the Republic. In addition, the reasons given to explain or justify this Minister of Communication main-
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Cameroonian Joseph Belibi appointed acting speaker of OIF’s court of first instance
The Cameroonian high judge Joseph Advocate General at the General OIF’s court of the first instance is Belibi was appointed Acting Speaker Prosecutor’s Office of the Supreme composed of a President, appointed of the Court of First Instance of the Court of Cameroon and Judge at the by the permanent council of La International Organisation of the Court of Justice of the CEMAC. Francophonie, and two assessors of Francophonie (OIF). This was during Until January 2019, the said in- different nationalities, chosen from the 36th Ministerial Conference of stance was presided by another outside the Organisation’s staff and the Francophonie (CMF) held on Cameroonian: Jean Fouman Akame. appointed by the Secretary-General. October 30 and 31 in Monaco. After his death, the then substitute They are appointed for a renewable A renowned magistrate, Joseph Belibi assumed the offices of the president 4-year term. served as Secretary-General of the leaving the substitute Presidency Cameroonian Ministry of Justice, vacant.
The International Labour Office assesses the achievements of a Youth Entrepreneurship Promotion Programme it backed
François Murangira, the International Labour Office’s country director for Cameroon, Equatorial Guinea, and Sao Tome &Principe conducted a tour from October 29 to November 2, 2019, to assess the achievements of the Youth Entrepreneurship Promotion Programme (YEP), a government programme initiated by Cameroon. In the framework of the YEP programme, Cameroon requested ILO’s technical assistance for the implementation of two sub-components. These include improve- ment of the business environment in the agro-pastoral sector and strengthening the entrepreneurship competencies of the programme beneficiaries’ trainers and supervisors. According to the ILO, the field visit is aimed at reviewing the programme’s achievements and gather beneficiaries’ feedbacks. At the end of this tour, François Murangira, who was accompanied by officials from the YEP, the Ministry of Agriculture, the Ministry of Livestock and the Ministry of Economy, reaffirmed the ILO’s commitment to continue providing technical support for the promotion of decent work through youth agropastoral entrepreneurship.
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 PUBLIC MANAGEMENT 37
76% of export revenues generated by 6 products in 2018 Most of Cameroon’s exports are still According to the figures, crude oil and cotton. constituted of a reduced number helped the country generate 40.8% of Forestry products, on the other hand, of products. Indeed, according to its export revenues during the period accounted for 13.2% of Cameroon’s figures published by the national under review while LNG generated export revenues in 2018. In detail, institute for statistics (INS), in 2018, 5.9% of the said revenues. sawn wood accounted for 7.5% of the country generated 76.5% of its ex- Next, are agricultural products with those exports revenues, compared to port revenues from just six products 11.1% and 5.5% of export revenues 5.7% for raw log. Oil products are on the top of the list. respectively generated by cocoa Cameroon borrows XAF12.6 bln from Deutsche Bank Spain to develop the Yaoundé municipal lake
On November 4, 2019, Cameroonian President Paul Biya issued two decrees habilitating the Minister of Economy to sign two credit agree- ments for a total amount of XAF12.6 billion with Deutsche Bank Spain. In detail, the first agreement is a buyer credit. It involves an amount of XAF9.03 billion to fund the tourist and economic development project of the Yaoundé municipal lake. The second agreement is a commercial credit amounting to XAFF 3.6 billion, also intended for Phase 1 of the same project. Launched in 2016, the project con- sists, among other things, in cleaning up and sanitizing the lake’s waters, installing water sports equipment, developing its banks, and building a five-star hotel and world-class restau- rants, shops, as well as a relaxation and leisure area on its surroundings. All this work is being carried out by a Spanish company called Acciona. Let’s note that on 13 September 2016, Deutsche Bank Spain, represented by Antonio Navarro Escabias, signed two loan agreements in Yaoundé for a total amount of XAF21 billion for this Phase 1.
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 38 PUBLIC MANAGEMENT
Trade and Investments: The US largely outrun by China in Cameroon, in 2018
The task is likely to be complicated (African Growth and Opportunity es, China has also become the for the United States, which wants Act), the United States ranks 12th largest investor in the country of to become Africa’s leading eco- and 6th respectively with 2.6% of the Paul Biya. Data from the United nomic and trade partner, a rank country’s exports and 3.6% of im- Nations Conference on Trade and currently taken by China. The situ- ports. In 2018, Washington’s purchas- Development (UNCTAD), Yaoundé, ation in countries like Cameroon es and sales of goods and services indicated that “between 2000 and is a good example of the daunting in Cameroon was worth more than 2014, Cameroon captured XAF2750 task awaiting The United States of XAF122 billion and XAF107 billion billion in foreign direct investment America to fulfill its ambition in respectively. (FDI), including XAF1850 billion from Africa. China. This represents about 67% of INVESTMENTS the FDI entering Cameroon.” Today, China is both the largest cus- China is also the largest donor in “The other FDI came from countries tomer and supplier of Cameroon, a Cameroon. According to figures pub- such as France, the United States, pivotal country in the Gulf of Guinea, lished by the country’s debt amorti- a n d N i g e r i a ,” the presidency of the declared as a “zone of vital interest” zation fund (CAA), in April 2019, out Republic of Cameroon indicated. by the United States. According to of an outstanding external debt of In 2018, the FDI from the USA in the national institute for statistics XAF5772.8 billion, XAF1627.7 billion, Cameroon amounted to $14 million (INS), in 2018, China purchased and or nearly 30% of the total external (about XAF7.8 billion). According to sold goods and services worth more debt, was owed to China. the US Department of Commerce, than XAF469 billion and XAF628 In March 2018, the Presidency of the this figure is up by 55.6% compared billion in Cameroon. Beijing, there- Republic of Cameroon stated that the to the FDI in 2017. In that year alone, fore, controls 22.2% of Cameroon’s country “is the second-largest African China claimed to have invested $88 total export volume and 18.5% of its beneficiary of Chinese financing.” On million (XAF51 billion) in the same import volume. the other hand, the United States is country. According to the INS, despite the not on Cameroon’s list of bilateral trade facilities offered to African creditors. Aboudi Ottou countries, notably through the AGOA According to the same sourc-
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 PUBLIC MANAGEMENT 39
Cameroon to launch XAF18 bln water supply and sanitation project in 2020 to improve access to drinking water
In 2020, the rural water supply With a total budget of XAF18 billion, a period of 4 years, will help im- and sanitation project will launch this project will build 80 water towers prove access to drinking water in works to provide drinking water to with a combined capacity of 8900 cubic Cameroon. In 2018, a study by the na- 60 Cameroonian villages. This was metres, 995 standpipes and 242 km of tional institute of statistics indicated revealed during the first session of piping. There are also plans to install that this access ration was only 45% the government project’s steering solar panels in pumping stations. in rural areas, compared to about committee. This project, which will run for 77% in urban areas.
Vietnam moves to strengthen its presence in Cameroon Last week, Voung Dinh Hue, head of the Vietnamese delegation the first operator to obtain 3G in Vietnam’s Deputy Prime Minister, did not hide his country’s inten- Cameroon, has been at the centre led a large delegation of Vietnamese tion to strengthen its presence of a battle between the Vietnamese economic operators to Cameroon. in Cameroon, in the rice sector group Viettel Global, its majority On 1 November 2019, the delegation particularly. shareholder, and Cameroonian bil- met with Cameroon’s Prime Minister According to authorized sources, one lionaire Baba Danpullo, the minority Joseph Dion Ngute. of the main reasons for this visit is shareholder because each of the two Although no major announcements the Nexttel case. Indeed, for several partners wanted to take exclusive were made following this visit, the months, this mobile phone company, control of Nexttel.
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 40 FINANCE CEMAC: IMF and BEAC to discuss cooperation axis for regional capital market development From December 2 to 6, 2019, the reference, areas of interventions on revenues) that BEAC used to grant IMF’s Regional Technical Assistance which Afritac Centre could support to CEMAC member countries. The Center for Central Africa (Afritac BEAC’s efforts to develop the region- Bretton Woods institution encour- Centre) will conduct a mission at the al financial market will be identified aged the member countries to have Bank of Central African States (Beac) and agreed upon during the period. recourse to alternative financing headquarters in Yaoundé, Cameroon, Let’s note that this market is methods to fund their economies in the framework of its technical supposed to compensate for the and in that regard, it welcomed the assistance programme concluded discontinuation, at the IMF’s request efforts made by sub-regional au- with the BEAC for capital market in the framework of a sub-regional thorities to create a unified financial development. crisis response strategy, of the stat- market. According to the mission terms of utory advances (20% of their budget Morrocan Wafa Assurance extends its footprint in Cameroon with acquisition of Pro Assur On November 12, 2019, Moroccan insurance firm Wafa Assurance officially announced the finalization of the acquisition of the Life and non- life divisions of Cameroonian insurer Pro Assur. Thanks to this double transaction, which began in April 2019 with the signature of an agreement between the two parties, “Wafa Assurance Vie Cameroun, this company was footprint in the Cameroonian insur- acquires 65% of voting rights shares of solely operational in Douala. It ance sector. Pro Assur SA and controlling interest notably distributes its bancassurance Indeed, in March 2014, before Wafa representing 89.4% of the shares and products through the sales network Assurance’s arrival in Cameroon voting rights of Pro Assur Vie,” official of SCB Cameroun, a subsidiary in 2016, Moroccan insurer RMA sources report. of the Moroccan banking group Watanya had already acquired This operation, approved by super- Attijariwafa, which is also the parent 38% of the capital of the two local visory and regulatory authorities in company of Wafa Assurance. subsidiaries of Ivorian group Belife Cameroon as well as in Morocco, The acquisition of the Life and non- Insurance, Beneficial Life Insurance according to Wafa Assurance, life branches of the Cameroonian in- SA Cameroon and Beneficial General allows Wafa Assurance to strengthen surer Pro Assur not only allows Wafa Insurance SA Cameroon namely. its position in Cameroon. Assurance to start its coverage of the They were bought at XAF3.1 billion In operation since June 2016, through Cameroonian territory but also, and (about $6.2 million). its subsidiary Wafa Assurance above all, to strengthen Morocco’s
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 FINANCE 41
UBA promises more credit for female SME owners
During the ongoing Global Gender guarantees (...). There will be a 50% these loans. He also indicated that Summit (November 25-27, 2019) in increase in credits within a year,” UBA the interest rate will be lower than Kigali, Rwanda, Nigerian banking Group’s representative Babatunde the market rate so that risk will be Group UBA promised to increase Ajayi (photo) explained. “If for in- reduced. credits granted to female small stance, we give about $20 million The President of the African and medium business owners in loans a year, we want to increase it Development Bank (AfDB), Cameroon. This increase, according to at least $30 million the following Akinwunmi A. Adesina, commented to the group falls within the frame- year and $40 million the year after,” he on UBA’s commitment and deplored work of the launch of AFAWA, a fund added. that 70% of women in Africa are dedicated to women in Africa. Mr Ajayi also explained the mecha- not financially included. Yet, these “The risk will be shared with nism for granting and repaying these women, who represent the majority other partners [AfDB, Ecobank, loans: “You must review the cash flow of farmers, still face a financing gap Attijariwafa, African Guarantee and economic cycle of the projects to of nearly $16 billion. Fund]. We will, therefore, be able to be financed. That is how we decide That is why, he explained, the AfDB give more credits. By asking for fewer and it will not be too restrictive. For has launched AFAWA to initially guarantees, we will be very creative those who need up to one year for re- mobilize $3 billion of new loans that and will explore financing opportu- payments, we can give them two years,” banks and financial institutions will nities based on companies’ cash flow Mr Ajayi said explaining the mecha- provide to women in Africa. rather than depending solely on the nism for granting and repayment of
Crédit du Sahel-backed UNHCR programme plans to empower 2,500 refugees in Cameroon In Cameroon, the UNHCR has It is backed by Crédit du Sahel, a Let’s note that Cameroon hosts launched a refugee empowerment microfinance institution well-estab- about 340,000 refugees on its programme aimed at funding in- lished in Northern Cameroon. territory. This contingent is mainly come-generating activities initiated To date, according to sources close composed of Central Africans who by refugees living in Cameroon. This to the programme, 15 community have fled political instability in their programme plans to empower close initiative groups (CIGs) have already country, and Nigerians who have to 2,500 refugees so that they can received funding under this project left their villages due to abuses of cater to their needs and families’. in Yaoundé and Douala. Islamist sect Boko Haram.
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 42 FINANCE
Investment fund Africa50 interested in the Cameroonian gas and airport sectors On the sidelines of the 2nd Africa of gas; I raised the idea with authori- The commissioning of the first Investment Forum organized by ties to try to gasify the Cameroonian turbine at Nachtigal is scheduled the African Development Bank economy a little more because gas is for September 2022, and that of (AfDB), from 11 to 13 November in transitional energy. We have the ambi- the entire structure towards the Johannesburg, South Africa, Alain tion to invest in Cameroon as soon as end of 2023. The plant will produce Ebobissé (photo), Managing Director there are projects,” that meet stand- more than 2,900 GWh/year. The of the investment fund Africa50, said ards, the Africa50 executive said. investments for this project were that after the hydropower sector, Africa50 is an infrastructure invest- raised in the form of a public-private the organization he leads has new ment platform launched in 2014 by partnership with the participation of ambitions for Cameroon. the African Development Bank and Cameroon as well as internationally “We have an appetite to invest more in 28 African states, with an initial cap- renowned technical and financial various sectors in Cameroon. I spoke ital of $830 million (nearly XAF490 partners such as Electricité de to the Cameroonian authorities, on billion). In Cameroon, this fund France (EDF), International Finance the instructions of the President of the has already invested in the XAF786 Corporation (IFC), Africa50 and Republic [ed.note: Paul Biya]. Look billion Nachtigal dam construction STOA Infra & Energy. at the airport sector: it’s an area we’re project (420 MW), located 65 km interested in (…) Cameroon has a lot north-east of Yaoundé. Afreximbank to open its branch in Cameroon to cover the Central African region
The information has not received According to the minister, the companies and institutions. much publicity but, it means a audience was about the launch, in In January 2018, for instance, lot for Cameroon. Indeed, on Cameroon, of Afreximbank’s subsid- in partnership with the African October 29, 2019, Félix Mbayu, iary for the Central African region. Development Bank (AfDB), Minister Delegate at the Ministry He provided no further information Afreximbank provided a loan of of External Affairs in Charge of the but this subsidiary will probably be about XAF25 billon, with guarantees Commonwealth, received a delega- opened in Yaoundé. from the Cameroonian government, tion from Afreximbank led by Gérard Since its creation in 1994, the Cairo- to boost the activities of Société des Chihota, head of the secretary unit based Afreximbank has already plantations de Mbanga. of this financial institution’s board of approved several billion CFA Francs directors. of credit facilities for Cameroonian
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Cameroon confirms its status of CEMAC’s financial center The latest bond, whose issuance period ran from September 20 to October 2, 2019, by Gabon recorded a 126% subscription rate. With the authorization of the Central African Financial Market Supervisory Commission (Cosumaf), and at Gabon’s request, the additional XAF26 billion was also allocated to the borrower. The amount finally pocketed by Gabon at the end of the operation was XAF126 billion instead of the initial XAF100 billion it sought. According to the results revealed by Cosumaf, the success of this Gabonese 5-year (2019-2024) bond, with an interest rate of 6.25%, is mainly due to Cameroon-based investors who provided 60% of the required funds. In detail, three banks in Cameroon, including Afriland First Bank, UBA and SCB, provided 59.4% of the total amount through underwriting. The rest consists of subscriptions from physical and legal persons under Cameroonian law. financial institutions, companies, on the BEAC’s public securities mar- and other investors. ket, ASCA is also the lead arranger of CAMEROON, A FINANCIAL the syndicate of underwriters set up CENTRE SYNDICATE OF UNDERWRITERS for Gabon’s 2019-2024 bond issuance This bond issuance, the very first Beyond the subscriptions, the whole operation. on the unified financial market of fate of the last Gabonese public In addition, the asset manager of the the Central Africa region, allows issuance was decided in Cameroon. Attijariwafa Bank group in Central Cameroon to confirm its status as a It all began with the appointment Africa recruited three banks based strong financial centre in the CEMAC of Attijari Securities Central Africa in Cameroon (Afriland First Bank, region. (ASCA), created in Cameroon, in UBA and SCB), out of a total of Let’s recall, in December 2013, February 2016, by Morrocan banking seven to constitute the underwriters’ Cameroonian investors had provided group Attijariwafa Bank, as the ar- syndicate. XAF58.3 billion, nearly 70%, out of ranger of this fundraising operation. the amount sought by Chad during The main non-bank investor active Brice R. Mbodiam its 2013-2018 bond issuance. In addition, Cameroonians sub- scribed more than 50% of Chad’s first According to the results revealed by ever bond issuance aimed at raising Cosumaf, the success of this Gabonese XAF100 billion. At the same time, authorized sources 5-year (2019-2024) bond, with an interest at the Cameroonian directorate general of treasury indicate, 85% of rate of 6.25%, is mainly due to Cameroon- subscriptions to public securities is- based investors who provided 60% of the sued by CEMAC States on the central bank BEAC’s market since the end required funds. of 2010 are made by Cameroonian
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 44 AGRIBUSINESS Cameroon elaborates 29 mandatory standards for the agribusiness sector
Since November 10, 2019, the powder, frozen shrimps, canned For a better understanding of these Cameroonian Standards and Quality salmon, frozen gutted and uncut fish, standards and to raise operators’ Agency ANOR has been enforcing 29 fermented soybean paste, and hot awareness about them, the Inter mandatory standards for agri-food pepper-fermented soybean paste. Patronal Groupings of Cameroon products. ANOR indicates that it will hence- GICAM suggests a collaboration with These standards concern flavour en- forth participate in controls in ANOR for the organization of work- hancers, edible cassava flour, whole markets together with the adminis- shops and seminars to sensitize its corn flour, pearl millet flour, frozen trations concerned. “The products of members. In addition, the grouping whole grain corn, vegetable protein any company found not to be com- intends to talk about the standards products, durum wheat semolina plying with the said standards could to entrepreneurs and project leaders. and flour, couscous, gari, a mixture be withdrawn from the market,” the of skimmed milk and vegetable fat agency says. Cocoa: Farmgate prices rise to XAF1,250 According to figures recently revealed by Système d’informa- tion de filières (SIF), a system that provides updated informa- tion about the coffee and cocoa sectors, farm gate prices for cocoa beans in production ba- sins in Cameroon has reached a maximum of XAF1,250 per kilogram on November 21, 2019. At the beginning of the month, it was XAF1,220. This XAF30 increase in the country’s production basins comes at the end of the rainy season and announces an improvement in end-of-year sales. These prices reflect the growth in demand, with the arrival of new processors in the country. One of those processors is Neo Industry, which launched its activities in the Western region, and Atlantic Cocoa, which is preparing to launch its operations in the industrial zone of Kribi deep seaport in the Southern region.
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 AGRIBUSINESS 45
A 100-kg bag of onion now sold at XAF120,000 in Yaoundé, more than six times its former price
In Yaoundé, onions have become selling prices. in Yaoundé. luxury products. Indeed, recently, According to the said retailers, a Operators justify this price increase the price of this product has dou- 100-kg bag of onion previously sold with the end of the harvesting sea- bled and nearly reached triple of its at about XAF20,000 some months son. According to them, the current former price. Interviewed about the ago is now XAF120,000. This means price should remain within such matter, retailers indicate that this is that within months, the price of limits until March-April 2020, the because wholesalers have increased that product has increased six-fold next harvest season.
Cameroon provides XAF600 mln in the Western region to boost livestock productivity In Cameroon, XAF622 million has nancial support are poultry farmers, Let’s note that Prodel is a govern- been recently provided to poultry who are just recovering from the ment project funded to the tune of farmers, beekeepers, aquaculturists bird flu outbreak that struck a few XAF50 billion by the World Bank and other cattle and goat farmers in months ago in the Western region group. It is aimed at boosting pro- the Western Region in the framework (the country’s leading poultry pro- ductivity in the country’s livestock of the livestock farming development ducing basin that controls about 80% sector. project Prodel. of this activity, according to official The biggest beneficiaries of this fi- figures).
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 46 AGRIBUSINESS
Cameroon generated XAF72.5 mln of forest revenue surplus in 2016-2019 thanks to reports through the certified SNOIE scheme
From 2016 to 2019, reports of illegal part of their external independent ob- Bifa’a and their surroundings. logging made through the ISO 9001- servation (OIE) activities,” the SNOIE The development and deployment 2015 certified Standard External explains in an information note. of certified SNOIE in Cameroon Independent Observation System The said auctions took place follow- and its extension to Congo and the (SNOIE) helped the Cameroonian ing forest control missions triggered Democratic Republic of Congo (DRC) Ministry of Forests and Wildlife by five denunciation reports trans- were carried out with the financial generate a surplus of XAF72.5 million mitted by SNOIE coordination to the support of the European Union, of forest revenues. ministry of forests and wildlife (two FAO (through the FAO-EU-Flegt “This amount was obtained by adding reports transmitted in 2016, one in programme), the Department for up fines imposed on illegal forest op- 2018 and two others in 2019). International Development (DFID), erators and the proceedings from the The reported forest irregularities Rainforest Foundation UK (RFUK) as public auctions of illegally-cut timber were observed in Logbii, Bandevouri, well as the Centre for International seized following denunciations made Ngoum, Ina, Manja, Wassaba, Oue Development and Training and its by civil society organisations (...), as and their surroundings, as well as in partners.
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 47 INDUSTRY Local company Codias to develop Cameroon’s first industrial gold mine
On November 29, 2019, in Yaoundé, mining method and this exploitation tion, with the added value of creating the Minister of Mines, Gabriel is planned for 5 years, with a produc- gold smelting units (ingot produc- Dodo Ndoke signed an exploitation tion peak of 500 kg of gold/year in the tion) and jewellery factories, thus agreement with Codias S.A for the 2nd year; the first year being devoted strengthening the national industrial exploitation of the small Colomine to the development phase (construc- fabric. gold mine (located in the Eastern tion of the mine and other mining On a social level, the government region). facilities),” the Ministry of Mines expects the creation of many direct During the signing ceremony, indicates. and indirect jobs, which will help Bonaventure Mvondo Assam, pro- According to this institution, the reverse the youth unemployment moter of Codias S.A, indicated that Colomine gold project will be the curve and fight poverty. Local small his company is a mining company country’s first industrial gold mine, and medium-sized enterprises under Cameroonian law. It holds, thus guaranteeing the traceability of (SMEs) (subcontractors and other since January 5, 2017, a research per- the ore mined and making Cameroon local suppliers) will also have the op- mit called Colomine, valid for gold a gold-producing country known on portunity to deliver their goods and and related substances, covering the international mining scene. services. Another social advantage of an area of 309 km2 in the Ngoura Moreover, this project will allow this project is the capacity building district. the establishment of a mining value of local staff, the transfer of skills “The mining method envisaged for the chain around gold. It will range and technologies to local workers extraction of Colomine’s gold resource from on-site extraction to the local coupled with the training of students is underground mining by the pillar processing of at least 15% of produc- from universities and institutions.
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 48 ITC & TELECOM
Cameroon and Gabon ink legal framework for fibre-optics telecommunications networks’ interconnection On November 28, 2019, in Libreville, Cameroon and Gabon signed a mem- orandum of understanding for the interconnection of their fibre-optics telecommunications networks (CAB 4 and CAB 1 respectively). The document was signed for Gabon by the Minister of Communications and Digital Economy, Rigobert Ikambouayat Ndeka, and for Cameroon by the Minister of Posts and Telecommunications, Minette of understanding is to establish the gional cooperation and the mutu- Libom Li Likeng. This was done general and legal framework for alization of the two signees’ digital in the presence of representatives interconnection of the two countries’ infrastructures. of the supporters of this project electronic communications networks Let’s note that this interconnection namely, the World Bank Group, the and to set up a committee to imple- will reduce connectivity costs since African Development Bank and the ment and monitor the memorandum there will be direct telecommuni- International Telecommunications and subsequent agreements. cations exchanges between the two Union. It also constitutes the materializa- countries with no international The purpose of this memorandum tion of the strengthening of sub-re- submarine cables required.
With a turnover of XAF52 billion, MTN Cameroon became the leader of the market in Q4 2018 In Q4 2018, the combined turnover of billion from “other” services. “other” services. telecom operators in Cameroon was The second operator with the largest Viettel was third with a turnover of XAF131.9 billion, data provided by turnover generated during the said XAF15.8 billion, including XAF11.39 the telecom regulator ART indicates. quarter is Orange Cameroon. It billion from voice services, XAF4.16 MTN Cameroon realized the larger recorded sales amounting to XAF50.5 billion from data services and part of this overall turnover dur- billion. Its detailed turnover is as XAF249.7 million from “other” ing the period under review with follows; XAF29.29 billion from voice services. XAF51.92 billion generated. In detail, service, XAF1.2 billion from data Camtel, the state-owned operator the South African group’s subsidiary services (almost nine times less than was the last with a turnover of generated XAF25.38 billion from MTN’s income from this category) XAF13.62 billion generated from data voice services, XAF9.37 billion from XAF6.7 billion from Mobile Money and voice services. data, XAF4.14 billion from Mobile services (over XAF2 billion more than Money services and XAF13.024 MTN) and XAF13.39 billion from
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 ITC & TELECOM 49
Jumia is in a liquidation process in Cameroon Jumia, leader of the e-commerce sector in Africa, is in a liquidation process in Cameroon. This plat- form, operational in the country since 2013, is simply waiting to complete its customers’ final orders before packing up.
Without being more explicit, Jumia mentions the immaturity of the Cameroonian market for e-com- merce as the reason prompting its departure. Jumia’s departure comes only 3 years after Cdiscount’s. Indeed, the French e-commerce site, owned by the supermarket group Casino, launched its activities in Cameroon in December 2014 and stopped in 2016. To justify its departure, Cdiscount pointed out the long delays in the transit of goods at the port of Douala, as well as fierce competition from local sites offering counterfeit or low- end products at very low prices. With Cdiscount gone, Afrimalin, another e-commerce group, an- nounced the launch of its activities in eight countries, including Cameroon, on September 15, 2016. Three years later, despite the merger (in February 2018) of this classified ad site with the Cameroonian operator Kerawa, the results of Afrimalin’s expansion in Cameroon are not that tangible. The same goes for the French sources, investors withdrew from country to appear in the top 10 start-up Afrimarket, which, after Jumia, which also just threw in the of that index, owed its ranking to Côte d’Ivoire, decided to launch an towel recently. higher than average scores in the e-commerce business in Cameroon These departures of major e-com- four criteria on which this index following a fundraising operation merce operators are, however, at was based, the UNCTAD indicated. during which it raised €10 million the opposite end of the scale of These criteria are the number of (about XAF6.5 billion) from interna- Cameroon’s assets and even its online shoppers, the security level of tional investors. Unfortunately, since potentials in this sector. Indeed, in servers, ease of payment and the ease September 2019, Afrimarket has its 2018 E-Commerce Index, released of delivery. filed for its placement under judicial during the African E-Commerce All these advantages seem to be liquidation before Paris court. Week, which took place in Nairobi, hindered by many other structural Kenya, from 10 to 14 December 2018, realities that are clearly incompatible A GIANT WITH THE FEET OF the United Nations Conference on with the emergence of a real e-com- CLAY Trade and Development (UNCTAD) merce market in the country. Afrimarket’s adventure in Africa and reveals that Cameroon is now the in Cameroon particularly, lasted only 10th African E-Commerce Market. Brice R. Mbodiam a few years. According to credible Cameroon, the only Central African
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 50 ITC & TELECOM
Cameroon launches mobile money services’ aggregation platform to boost financial inclusion
Minette Libom Li Likeng, the the above-mentioned decree.” market. Let’s note that microfinance Cameroonian Minister of Posts and Therefore, Mr. Zo’o Zame invites company Express Union Finances, Telecommunications signed on network operators and electronic has regularly referred cases to the 26 November, a decree setting the communications services providers Ministry of Posts and telecommuni- conditions and operating rules of to interconnect to it, within 30 days cations accusing MTN and Orange the Unstructured Supplementary (by 26 December 2019) for the provi- Cameroon of “anti-competitive Service Data (USSD) for access to the sion of mobile financial services. practices.” According to the microfi- national electronic communications’ Since July 2017, the Cameroonian nance company, these practices are aggregation platform in Cameroon. government has been working on either through an increase of the This platform is aimed at notably the creation of a single USSD code prices for the use of the shortcode ensuring fair interconnection con- for Mobile Money services. Indeed, * 050# (which allows Express Union ditions, reducing the costs of mobile like telephone calls and other SMS, Finances’ clients make transactions financial transactions and promoting telephone operators operating in on their accounts with their mobile financial inclusion. It will also give Cameroon use different codes. For phones), or outright removal of access to mobile financial services instance, with Orange and MTN, Express Union Finances’ access to via a unique shortcode (#237#). #150# and *126# are the respective this USSD code. Philemon Zo’o Zame, Director of the codes to access mobile money servic- These accusations were outrightly Telecommunications Regulatory es. From now on, these operators will rejected by the two mobile opera- Agency (ART), explains that “the have to submit, for validation, the tors who claim that they are not in said platform is housed at Campost tariffs for access to the single USSD partnership with Express Union on [Cameroon’s state-owned postal code. the disputed USSD code. operator], which manages it, and is It could bring more transparency responsible for the implementation of to the mobile financial services
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 ITC & TELECOM 51
Cameroon: Decentralized territorial communities should help achieve digital revolution, Minette Libom Li Likeng says According to Cameroon’s Minister authorities to become more involved Minette Libom Li Likeng then wished of Posts and Telecommunications in the development of the digital to see these territorial entities “grad- (Minpostel) Minette Libom Li Likeng economy in Cameroon. ually take on the challenges of digital (photo), the vision of the Head of “Whether it is the development of ICT development.” “The digital revolution State, who has given the go for the infrastructure, access to the Internet should not be seen by communities country’s digital transformation in or provision of ICT services, the as a risk, but rather as a real oppor- recent years, is that “no one should be decentralized territorial community tunity. Digital tools save time and at left behind in the digital revolution.” is at the heart of the process when it the same time simplify and improve Minette Libom Li Likeng (photo), comes to reaching local populations. services offered to users. However, this who was speaking on November 25, In this context, digital development is transformation implies a cultural and 2019, in Yaoundé, at the opening of becoming a means of stimulating the behavioural evolution that must lead a two-day meeting between Camtel economic and social development of communities to rethink their operating (the incumbent telecoms operator) decentralized local authorities, thanks methods and managerial practices,” and players in the electronic com- to the opportunities it offers,” the she argues. munications sector, called on local official explains. Kiro’o Games reaches a cap of $600,000 raised from international investors since the opening of its capital Kiro’o Games, the first video (nearly XAF275 000). Each game studio in French-speaking new shareholder has a voting Africa created by a Cameroonian right and can participate in the start-up, is going from success to management of the company via success. a dedicated intranet. After the opening, on April 4, According to the Bank of Central of its capital, the volume of African States (Beac), Kiro’o subscriptions by international in- Games successfully raised vestors reached $600,000 (about XAF129.87 million (€198,000) XAF355 million) this month of through participatory financ- November 2019, according to an ing in 2018 to fund the largest announcement by the founder project in the French-speaking Madiba Olivier. African video game industry. According to the founder, 494 MTN (one of Africa’s largest people have subscribed. And telecommunications companies) between 2013 and 2019, Kiro’o’s is funding the development shares increased tenfold. The of Kiro’o games with a reve- current shares can also be nue-sharing partnership between “increased sevenfold by 2026,” 2019 and 2020. Indeed, during Madiba Olivier says. that period, the Cameroonian The young company uses its start-up’s games will be listed on famous “Equity Crowdfunding MTN’s gaming platform MTN Rebuntu” process which allows Game+ and Kiro’o Games will investors to buy shares from $500 keep the licenses of its games.
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 52 ITC & TELECOM
Cameroon: Mobile operators recorded XAF96 bln loss in 2018
For at least 4 years now, in Cameroon, the mobile telephony sec- tor has not been very successful after many years of success. According to an authoritative source, the recently created operators’ association is expected to take a formal position on this issue soon. To support the thesis of the tem- porary decline of the mobile sector in the country, a source close to the case reveals that over the last 4 years, the three operators operating in Cameroon (MTN, Orange and two English-speaking regions, the for several months to control the Nexttel) have lost 4% of their overall Northwest and Southwest. company. turnover. Indeed, like the agribusiness com- Nexttel, the most profitable African According to the same source, in panies operating in this part of the subsidiary of the Vietnamese group 2018 alone, the country’s mobile country, mobile operators (MTN, Viettel Global, as early as 2016, telephony companies recorded a loss leader of the Cameroonian operators only 2 years after the launch of of XAF96 billion. The environment in notably, ed.note) are facing a major its activities, was experiencing a the Cameroonian mobile telephony disruption of their activities, due decline in its performance. This has sector in recent years is such that in particular to the destruction of been the case since Baba Danpullo, a company like Orange Cameroon their equipment and the difficulty in the Cameroonian shareholder and has not distributed a dividend to its repairing them, due to insecurity. his Vietnamese partners of Viettel shareholders over the past 4 years. The gloomy situation the sector is Global started fighting before courts These losses have been exacerbated going through is also partly ex- and local authorities to take exclu- in the last three years by the so- plained by the battle that Nexttel (the sive control of this promising mobile cio-political crisis that has been on- country’s third-largest operator)’s operator. going since late 2016 in Cameroon’s shareholders have been waging
Cameroonian startup “Tout souffle compte” elected 1st winner of Orange Social Venture Prize for Entrepreneurs in Africa and the Middle East 2019 On November 12, 2019, during the went to Cameroonian start-up “Tout combat premature babies’ mortality AfricaCom held in Cape Town, souffle compte.” in Cameroon and Africa. South Africa, telecom group Orange Founded by Serge Armel Njidjou This award comes with a €25,000 announced the winners of the 9th (photo: far right), this start-up euros (about XAF16.5 million) grant edition of the Orange Social Venture manufactures interactive neonatal and personalized support from Prize for Entrepreneurs in Africa incubators, remotely controlled by Orange Group’s experts. and the Middle East. The grand prize the doctor’s smartphone, that help
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 ITC & TELECOM 53
State-owned postal firm Campost happy about initial impacts of the government- backed restructuration plan The 2019-2021 contract plan, retain the award of eight major con- security equipment for mailings as between Cameroon Postal Services tracts selected in the joint decree, from well as the acquisition of data centre (CAMPOST) and the government, for the ministry of posts and telecommu- security upgrading infrastructure. the restructuration of this state- nications and the ministry of finance, In the same vein, it was learned, owned firm, is being implemented of 27 January 2019, which concerns four financing windows have been in a rather “satisfactory” manner, respectively the organisational and hu- identified to support this XAF22.8 one year after its signature. This man resources audit of Campost,” said billion plan. For its part, the govern- was the comment of Minette Libom Pierre Kaldadak, Campost’s CEO. ment has committed, through the Li Likeng, Minister of Posts and According to him, contracts are also Ministry of Finance and the Ministry Telecommunications, during the being implemented for the acquisi- of Posts and Telecommunications, review meeting she chaired on 14 tion of an enterprise resource plan- with the support of the AfDB, to November 2019 in Yaoundé, the ning system, the supply and commis- provide XAF18.3 billion. The remain- country’s capital. sioning of 58 mailing machines, the ing XAF4.4 billion should be provided “With regard to rehabilitation, we can installation, and commissioning of by Campost.
Camtel turns to Russian Infinet Wireless for the modernization of its infrastructures Camtel, Cameroon’s incumbent telecom- munications operator, has chosen the technologies of the Russian company Infinet Wireless, which provides carri- er-class wireless network infrastructure solutions, for the modernization and extension of its telecommunications infrastructures. In that regard, an agree- ment was signed between the two parties in Sochi, Russia, at the Russia-Africa Summit held on October 23-24, 2019. A pilot zone will be created where Camtel will test Infinet Wireless products. According to Infinet Wireless’ CEO Dmitry Okorokov, Africa is of growing interest to the technology company in view of the many economic forecasts that make the continent one of the most promising markets for rapid growth. “The key areas for us are security and the development of a modern telecommuni- cations infrastructure. Infinet is ready to offer its expertise in this field through a range of proven products adapted to the African environment,” he said.
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 54 ITC & TELECOM
The telecom regulator plans to audit operators’ turnover
Philemon Zo’o Zame, managing ing, auditing, economic or engineer- auditor, telecommunications or director of Cameroon’s telecommu- ing competences in the electronic information system expert for one nications regulator, just issued a call communications sector. of the operators to be audited, their for expression of interest to recruit The aim of this audit (covering the subsidiaries or affiliated companies a firm for the audit of the revenues 2015-2018 period), which should not under another firm in the past three of mobile operators operating in the last more than three months, is to en- years in the country. country (MTN Cameroon, Orange sure the authenticity of the financial Seven copies of each bid, written in Cameroon, and Viettel Cameroon data transmitted to the regulator. French or English, must be sent to namely). The regulator stresses that each of the regulator’s procurement unit in Participation is open to national the individual experts suggested Yaoundé, by December 9, 2019. firms with proven financial, account- by firms should not have been an
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 55 ENERGY
Cameroon: Natural gas can contribute 20-30% of the energy mix , SNH says “The SNH has demonstrated, since of Cameroon (SNH) when asked how conversion of many diesel or oil-fired 2012, that gas can make a significant his company could contribute to the power plants, already being studied. contribution to the development of the diversification of the energy mix in As of July 2019, according to figures electricity sector in Cameroon by en- Cameroon. published by electricity distribution suring a continuous supply of the 216 According to an internal publication company ENEO, gas accounted for MW natural gas power plant built in (SNH Info), relaying the director’s 17.7% (representing 1,391.98 MW) of the coastal city of Kribi, the first-ever answers, the SNH remains faithful Cameroon’s electricity production. in Cameroon. Gas could contribute to its ambition to contribute to Hydro (55.8%) and oil/diesel (26.5%) between 20% and 30% of the energy the diversification of the country’s were the other energy sources while mix at the national level.” This was the electricity supply sources. the contribution of solar energy reply of Adolphe Moudiki, director This explains some of the projects, remains close to zero. and chief executive officer of the such as the installation of a 300 MW National Hydrocarbons Corporation gas power plant in Limbe and the Cameroon inks XAF10 bln funding agreement with the EU for rural electrification On November 26, 2019, in Yaoundé, the Cameroonian government, signed, via the Ministry of Economy, a €16.15 million (a little over XAF10 billion) funding agreement with the European Union. These funds will be used to partially finance the rural elec- trification and energy access’ im- provement Project PERACE. This project is being implemented in six regions of Cameroon, namely the Far North, Adamaoua, the North, the East, South West, and North West. Co-financed by the European Investment Bank and the World Bank, PERACE is the first phase of the Rural Electrification Master Plan developed by the Cameroonian government in 2016.
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 56 ENERGY
Nachtigal dam: Over 1,300 employees already active on site Jean-Bernard Levy, CEO of Électricité During this field trip, accompanied launched in February 2019. de France (EDF), a shareholder in the by Cameroon’s Minister of Water and These employees, and others to be Nachtigal dam construction project Energy Gaston Eloundou Essomba, recruited, are working to deliver, in in Central Cameroon, was on the it was revealed that more than 1,300 2023, a 400 MW dam representing construction site on November 26, employees are already working on one-third of the country’s current 2019. this project, which was officially power generation capacity. Cameroon: Public lighting takes over 55% of government’s electricity expenditures
The Cameroonian government, via XAF41 billion every year according to Cameroonian government’s electric- the Ministry of Water and Energy, official reports. ity expenditure is also the result of just launched a programme to mon- According to a study commissioned an overestimation of its real needs. itor, control and optimize electricity by the government, public lightning Indeed, according to the study, bills in the public sector. According represents more than 55% of the the state has subscribed for a total to the programme’s creators, it is electricity bills the government pays capacity of 40 MW, whereas the real aimed at reducing the country’s elec- every year. need is only about 11 MW. tricity expenditures, which average Overall, the study reveals that the
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 ENERGY 57
Due to security reasons, Eneo is unable to access forests in the Northwest to replace wooden poles
During his recent presentation be- decrease is due to the security crisis poles identified in the Western region fore the National Assembly to defend in the Northwest. (Baleng, Bazou, Bana) since the forests the budget of his ministerial depart- At the same time, he announced that of the Northwest are inaccessible due ment, Gaston Eloundou Essomba, 50,000 (including 13,500 concrete to security reasons.” the Minister of Water and Energy and 36,500 wood) and 40,000 poles According to the official, there is (Minee) addressed the issue of wood- will be replaced in 2020 and 2021 just over 1,300,000 poles in the en poles used to transport electricity respectively. Cameroonian distribution networks. to Cameroonian households. To achieve this performance, “it is Most of those poles are made from According to the Minee, only 20,000 necessary for the Ministry of Forests wood and face constraints that poles were replaced in 2019 by to grant an authorization to Eneo increase the frequency and duration Eneo compared to 40,000 in 2018. and the national agency for forest of power outages. According to the official, this 50% development to use the 55,000 wooden
Belgian and Czech delegations announce their interest in Cameroon’s energy sector On November 14, 2019, two Belgian in Cameroon. the financing and implementation and Czech delegations were received The Czechs, for instance, intend to of water supply projects, intend to at Cameroon’s Ministry of Water and seize the opportunities that exist play a role in the development of Energy. At the end of the two audi- in the renewable energy sector and projects in the electricity sector, in ences granted to these partners by contribute their expertise in the de- particular through the construction Minister Gaston Eloundou Essomba, velopment of hydroelectric projects. of mini-power plants in remote areas the delegations expressed interest in Belgians, who are already present in in Cameroon. the development of energy projects the drinking water sector, through
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 58 ENERGY
Cameroonian footballer Jean II Makoun partners with Upowa to promote solar energies On 13 November 2019, Cameroonian footballer Jean II Makoun signed a partnership agree- ment with the Franco- Cameroonian company Upowa to promote re- newable energies, solar energy particularly. “I was seduced by this company’s team spirit. Beyond the image, I am committed to going out on the field, wherever it is needed,” said the former player of Cameroon’s national football team, the Indomitable Lions. Upowa is a company spe- cializing in the supply of low-cost solar kits, which can also be purchased in successive installments over several months. This company mainly targets people in rural areas with poor access to electricity in Cameroon.
SONARA: Chairman and board members’ allowances to be adjusted Shareholders of Société Nationale de The monthly remuneration of the the chairman’s allocation is set at raffinage S.A. (Sonara), Cameroon’s chairman and the directors’ sessional 0.0012% of the lowest turnover of this only refinery ravaged by a fire allowances should, therefore, be category (i.e. XAF100 billion) and outbreak on May 31, 2019, are invited adjusted in accordance with the the sessional allowances of adminis- to a combined general meeting on Presidential Decree No. 2019/321 of trators, the chairman included, are Friday, November 22, 2019, in Limbe, 19 June 2019. capped at 0.0015% of XAF100 billion. the southwestern region. According to article 6 of this text, This corresponds to a monthly During the meeting, they will Sonara is classified as a first category allocation of XAF1.2 million for the deliberate on ten points. These public company because its average chairman and a sessional allowance include the “monthly allocation of the turnover over the last three financial of up to XAF1.5 million for each Chairman of the Board of Directors” years exceeds XAF100 billion. administrator. and the “directors’ duty allowances”. For this category of institution,
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 ENERGY 59
Security challenges and the May 2019 fire at Sonara slowed Cameroon’s 2019 economic growth (+3.9%)
On November 8, 2019, at the end war against the Nigerian terrorist non-oil sector (3.8%, compared with of the 5th review of its three-year sect Boko Haram in the Far North re- 4.4% in 2018) in 2019, the IMF points economic and financial programme gion and the deployment of the army out. Here, we learn, sectoral GDP (2017-2019) with Cameroon, the in the South West and North West grew to only 3.8% in 2019, compared International Monetary Fund (IMF) regions to contain the pro-independ- to 4.4% in 2018. expressed its satisfaction with the ent claims in the two Anglophone Nevertheless, despite the slowdown, Cameroonian government’s imple- regions since late 2016. economic growth in Cameroon will mentation of the said programme. In addition, the IMF said, the be much better than that of the The delegation also took this op- decrease in Cameroon’s growth is entire CEMAC region, making it the portunity to reveal some of the 2019 also due to the fire in late May 2019, economic driver of this community. key indicators on the Cameroonian at Sonara, the country’s only oil Indeed, according to figures released economy. refinery. This disaster caused the by the Bank of Central African States According to the institution, cessation of refining activities forcing (Beac), economic growth in the Cameroon will end the year with a Cameroon to import finished oil CEMAC region will peak at 2.7% in 3.9% growth, slightly down from the products. 2019, compared to 3% forecasted at 4.1% recorded in 2018. This decrease Moreover, despite the rebound the beginning of the year. is mainly due to security challenges observed in the oil sector with a 6% Let’s note that even though it is less- faced by the country since 2013, the sector growth rate in 2019, “after 3 er than forecasted, it is still higher IMF indicated. years of deceleration,” there was a than the 1.8% recorded in 2018. These challenges mainly relate to the slowdown in economic activity in the
N° 82-83 / December 2019 - January 2020 BUSINESS IN CAMEROON 60 TRANSPORTATION
Local startup plans to launch a carpooling app on December 2019 The co-founders of the start-up ToliCar announce the launch of a car- pooling platform on December, 2019. According to the startup, for a start, this carpooling platform will cover the Yaoundé-Douala-Bafoussam- Yaoundé axis. “ToliCar is an innovative platform, an economic and social community that brings together two categories of users: passengers and drivers. It is about connecting them. For instance, if a passenger wants to go from Douala to Yaoundé, he can easily meet a driver who is leaving the same point for the same destination on the same day,” explains Lucas Sigha, the startup’s managing partner. The birth of ToliCar is the result of an experience by the managing partner. “It’s really anecdotal. I was on my way to Yaoundé. Not being able to drive on the main roads of Cameroon, I asked to be accompanied and my cousin offered to do it. On the way Yaoundé. He also asked me if we could pushing one another, to be able to get back, we stopped at a gas station for take some of them in our car, which I into the vehicle. (...) That’s when the coffee. There were lots of people on the accepted. When he went to the waiting idea of setting up a platform came roadside then, my cousin told me they crowd and shouted ‘Yaoundé’, I saw from,” Lucas Sigha told the newspa- were all waiting for vehicles to get to dozens of people running towards us, per Defis Actuels. Douala-Bonabéri: Towards the dematerialization of ship calling procedures Starting from 1 January 2020, all dematerialised on the said platform,” Secretary-General of national port procedures related to ship calls at Cyrus Ngo’o, the port’s managing community Association de la com- the port of Douala-Bonabéri will director, indicated adding that call munauté portuaire nationale-port be carried out online via the web- requests will be taken into account synthèse for the necessary due site www.pad.cm only if manifests are sent in XML and diligence. For unmanned vessels, a “This measure, whose aim is to PDF formats. team, from the port, will be placed at optimise the information system of the For the implementation of this new drop-off points to record arrival and port of Douala-Bonabéri, will ensure measure, he added, all shipping departure times for billing purposes. that the ships call announcement and agents are invited to get in touch maritime conference will henceforth be with the port’s IT department or the
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 61 SERVICES
GICAM reorganizes its arbitration centre to adapt it to the international environment Today, November 7, 2019, Célestin centre. text. In addition to this adaptation Tawamba (photo), president One of these amendments is the work, it also seemed useful to mod- of Groupement inter-patronal du change of this centre’s name from ernize the arbitration centre’s offers in Cameroun (Gicam), Cameroon’ss Gicam Arbitration Centre to Gicam light of the international environment largest employers’ organization, is Mediation and Arbitration Centre. and the current state of alternative scheduled to give a press confer- “Following the revision of the Ohada dispute resolution methods. With this ence. According to a press release Uniform Act on Arbitration and the in mind, the arbitration centre has published by the GICAM, Célestin adoption of the Ohada Uniform Act reformed both its texts and services,” Tawamba will present the various on Mediation on 23 November 2017, Gicam indicates. amendments to the provisions of it was necessary to adapt the practice GICAM’s arbitration and mediation of the arbitration centre to this new Ivoirian Stéphane Soumahoro becomes new MD of BVS production Cameroon SA Wines and Spirits supplier BVS Cameroon informs that Ivorian Stéphane K. Soumahoro has just been appointed as the Managing Director of BVS production Cameroon SA. He now combines this position with the position of Managing Director of BVS Distribution Cameroon which he has held since October 1, 2018. “His roadmap is to create synergy between these two entities, in order to enable BVS Cameroon to become a major player in the production and distribution of beverages, wines, and spirits in Africa,” the company informs. Stéphane Soumahoro takes over the management of BVS, launched by Guillaume Sarra, former CEO of Société Anonyme des brasseries du Cameroun, after 13 years as CEO of Tradex, an oil distribution company owned by Cameroon with operations in various African countries. With its technical partner Castel Group’s support, Douala-based BVS’ ambition is to produce 10 million litres of wine every year and serve the CEMAC region in the meantime.
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Still another fire in a market in Douala In the night of November 23 to and other merchant counters. in the country’s markets. 24, 2019, fire broke out at Cité des The first research on the reasons for As a reminder, the same reasons had palmiers market in Douala, the this disaster, in a Cameroonian mar- led, in the night of February 23 to 24, Cameroonian economic capital. ket, points to a short circuit created 2019, to a fire that consumed more According to our sources, the flames by the anarchic electrical connec- than 150 shops in the Congo market, burned more than 50 shops, stalls tions, which are recurrent practices in Douala.
Next CAF African Nations Championship to be held in Cameroon on April 4-25, 2020
After some hesitation about the on 4 November 2019 by the Minister also worth mentioning that in 2021, date, following Cameroon’s request of Sports, Narcisse Moelle Kombi, Cameroon will host the African Cup to host the competition in June, the during the installation of members of of Nations (AFCON). The official logo Confederation of African Football the CHAN 2020 organising commit- of this continental championship (CAF) has finally decided to organ- tee, the competition will take place was, by the way, officially unveiled ise the next CAF African Nations in Douala, Yaoundé and Limbe. during the above-mentioned Championship from April 4 to 25, Let’s note that the draw for teams ceremony. 2020 in Cameroon. entering the competition will be held According to information revealed in January 2020, in Yaoundé. It is
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 STOPBLABLACAM.COM 63
No, Douala port’s general director Cyrus Ngo’o is not from the Anglophone region
There are social media posts that sents him as a civil administrator, allege that Cyrus Ngo’o, Director a graduate of the National School General of Douala autonomous port, of Administration and Magistracy was born in the Anglophone region. (Enam) and holder of an MBA from This is not true. Quebec. Indeed, according to the man’s He has been an advisor to the Prime official biography, he is a native of Minister on issues relating to the Messamena in Upper Nyong, Eastern monitoring and implementation of Cameroon. He is therefore not from public policies in the fields of land, the North-West or South-West, which energy, water, public works, mining constitute the Anglophone region of and especially ports. In addition, the country. he was coordinator of the Mbalam Cyrus Ngo’o was appointed on Iron Project and Chairman of the August 24, 2016, at the age of 50. Procurement Commission for the The Prime Minister’s office pre- Kribi Port Container Terminal.
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No, Chad and Equatorial Guinea are not providing assistance for the payment of Cameroonian civil servants’ salaries
A while ago, an Internet user pub- the funds deposited by the sub-re- to provide financial assistance to lished a note according to which, “the gion in the French operating account Cameroon for the payment of its civil salaries of Cameroonian civil servants in 2018 (XAF1,945.2 billion out of a servants’ salaries. are being paid, for months now, total of XAF3,359.8 billion). In addition, according to the Beac, thanks to the support of two CEMAC Gabon came second with assets the gross reserves of CEMAC’s countries: Equatorial Guinea and estimated at XAF 638.9 billion banking system, composed of free Chad,” notably. The information is as followed by the Beac that deposited and minimum reserves, increased by unbelievable as it is false. assets worth XAF350.4 billion. The 0.6% to XAF1,773.6 billion between Indeed, in the CEMAC region, immediate followers are Central December 2017 and April 2018. It Cameroon is considered the eco- African Republic (XAF200.7 billion), appears that the increase in that nomic leader. In terms of finances, Congo (XAF182.4 billion), and Chad indicator was spurred by Gabon (+5.8 Cameroon is the strongest country, (XAF74.4 billion). Equatorial Guinea’s points) and Cameroon (+1.9 points). even if the community is fragile. balance is downright negative (mi- Equatorial Guinea’s contribution was According to figures published by the nus XAF32.3 billion). -4.9 points, Congo and the Central Bank of Central African States (Beac), Based on those figures, Chad and African Republic -0.9 points, and Cameroon accounted for over half of Equatorial Guinea can not be able Chad -0.4 points.
BUSINESS IN CAMEROON N° 82-83 / December 2019 - January 2020 STOPBLABLACAM.COM 65
Yes, Cameroon imports the petroleum products distributed at gas stations
Unlike what some people might crude oil (Arabian light). However, age (77% against 23% for marketers). think, the petroleum products dis- Cameroon currently produces heavy Cumulative sales on the domestic tributed at the local gas stations are crude oil but the tools existing at the market (1,613,804 m3) in 2018 were indeed imported; they are not pro- refinery cannot be used to process imported products; and this will duced by the National Hydrocarbons the available crude oil, Sonara said. increase during this 2019 financial Corporation (Sonara). This situation led Sonara to resort year, as Sonara was ravaged by a fire Sonara qualified itself as a “topping to massive imports of white-label on 31 May 2019. reforming” refinery explaining it was products to supply the local market, initially established to process light where it provides most of the cover-
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LEADER OF THE MONTH
EDF Pulse Africa 2019: Young Cameroonian engineer wins the prize “Prix coup de cœur” with off-grid power- generation solution
support, including operational and financial advice, project develop- ment partnerships with incubators based in African countries, access to EDF’s innovation ecosystem includ- ing R&D, EDF’s internal creativity labs and the subsidiary specializing in support for EDF Pulse Croissance start-ups. Triomphant Tchulang and Clean Energy Services join, on the po- dium of this competition, other Cameroonian start-ups, winners of previous editions. These in- clude Fabien Kouatcha’s Save Our Agriculture, “Prix coup de cœur” from the 2nd edition of EDF Pulse Young Cameroonian engineer The kits sold by Clean Energy Africa in 2018, and Cameroonian Triomphant Tchulang who was rep- Services (composed of solar panels, start-up EduAir, 3rd prize of this resenting his country at the finals of adapted refrigerator and LED bulbs) competition in 2017. the EDF Pulse Africa 2019 innovation are sold on credit provided the buyer Created in 2017, the competition competition, organized on November pays an initial deposit of 20% of the EDF Pulse Africa challenge is aimed 21, 2019, in Paris by French energy kit’s value. at supporting entrepreneurial company EDF, won the prize “coup The solution is aimed in particular at dynamism in Africa with two main de cœur.” populations in isolated sites engaged objectives: identifying potential The Cameroonian engineer was in activities that require cold: cater- partners by finding the continent’s rewarded through his start-up Clean ing, sale of fresh products (meat, fish, technological nuggets and support- Energy Services, which sells Off-Grid etc.). ing innovation by involving local power generation solutions aimed at The five winners of EDF Africa Pulse entrepreneurs in the development of powering solar-powered freezers and 2019 won grants ranging from €5,000 innovative offers. refrigerators in remote sites. to €15,000, as well as comprehensive BRM
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