and jobcreation potential, bothforrevenues Cashew, asector withgreat digitalization goes through rapid ’s finance sector

November 2018 / N° 69 CAMEROON BUSINESS IN FREE -CANNOT BE SOLD Ola Energy Oilibya rebranded, becomes MAJOR PROJECTS MAJOR AGRICULTURE INDUSTRY SERVICES FINANCE ENERGY MINING BUSINESSIN CAMEROON .COM Daily business news from Cameroon

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Yasmine Bahri-Domon

Cameroon goes through digital transformation

Digitalization is spreading more and human resources will be necessary more to many sectors in Cameroon. to overcome issues arising from this It has become vital for any business modernization. The latter must align wishing to get closer to its customers with social fabric and structure. I and actually is the perfect tool for client believe that the transformation must retention. This is the exact case in other be gradual but also take into account African nations where digitalization direct employment, or this might lead is a boost palliating shortcomings in to an imbalance that will affect social quality of service provided. economy. Cameroon’s technology is going As said earlier, fact remains that digi- through a transformation as various talization helps financial institutions sectors indeed migrate toward digital- process their transaction and serve ization. This silent transformation is clients more rapidly. gradually taking shape and imposing There are “Made in Cameroon” apps itself to various targets. It is positive that currently let users conduct finan- evolution and it has today become a cial transactions or operations safely, must for financial institutions. It ap- using mobile devices such as phones or pears that customers have adapted to tablets. These innovations of startups the change which is both cost-effective like Iwomi Technologies enabled the and time-saving for them. “Digitization Commercial Bank of Cameroon to is the future of Cameroonian banking,” open the very first ATMs to receive said Bouchra Geawhari as if predicting deposits. Another example is that actual events. However, seeing how of United Bank of ’s subsidiary things are moving, digitalization will which launched an online banking not only be banking’s future but it will service in the country. These are just a impact also all other financial services few examples. Beyond this, digitaliza- and sectors of activity in Cameroon as tion fosters new partnerships as both the latter will have to take this path to businesses and financial institutions improve their services and boost their understand its importance for their activities. profits. The concern now is to know if Digitalization is now a reality in these firms will rely on the expertise of Cameroon’s finance industry. Its impact Cameroonian youth to tackle job losses on interactions between banks and resulting from the irreversible change. their clients cannot be denied. They Will they trust Cameroonian startups become permanent and instanta- whose performances will surely impact neous. The question however is to the GDP while creating new jobs? know if digitalization is a threat to Well, readers will have the opportunity employment? Truly, modernizing tools to get all related information in the and services will surely take its toll on following pages… jobs. Therefore, a re-appropriation of

N° 69 / November 2018 BUSINESS IN CAMEROON 4

CONTENTS

FOCUS INTERVIEW 14 • Hope Sona Ebai : “The strategy we worked on aims to make Cameroon a visible player on the cashew market five years from now”

LEADER OF THE MONTH 34 • Cameroonian Joël Embiid becomes the highest-paid NBA center, on a contract with Under Armour

BUSINESS IN CAMEROON 08 • Digitalization takes over finance industry Publisher Stratline Limited 09 • Zenithe Insurance becomes the first digital firm Publication Director across all 15 CIMA countries Yasmine BAHRI-DOMON

10 • Baloon, Africa’s leading insurance brokerer Contributors arrives in Cameroon Brice R. MBODIAM, Sylvain ANDZONGO, Idriss LINGE. Operator 10 • United Bank of Africa’s Nigerian subsidiary Médiamania Sàrl launches online banking service www.mediamania.pro Design : Jérémie FLAUX, Web : Christian ZANARDI, 11 • In partnership with a local startup, Commercial Translation : Schadrac AKINOCHO Bank of Cameroon launches the country’s very Advertisement [email protected] first ATMs enabling cash deposit In Cameroon Albert MASSIMB, [email protected] 11 • Ecobank’s ATMs allow cash withdrawal no card Tel : 00 237 694 66 94 59

12 • Digital is the future of Cameroonian Printing banking - Bouchra Geawhari, Consultant Rotimpres, Aiguaviva, Espagne at Adria Business Office - Distribution Cameroon Albert MASSIMB, [email protected] 13 • Activa and Orange launch micro-insurance offer Tel : 00 237 694 66 94 59 accessible via mobile Free – cannot be sold 13 • Afriland First Bank and MTN team up to allow www.businessincameroon.com - [email protected] transactions between bank and mobile accounts

BUSINESS IN CAMEROON N° 69 / November 2018 5

NEWS IN BRIEF

PUBLIC MANAGEMENT P 18-23 TRANSPORTATION P 30

FINANCE P 24 INDUSTRY P 31-32

AGRIBUSINESS P 25-27 INFRASTRUCTURE P 33

ENERGY P 28-29

N° 69 / November 2018 BUSINESS IN CAMEROON 6

COMPANY OF THE MONTH

At Nexttel, Cameroon’s third mobile operator, stakeholders are having a dispute over allegations of unilateral management

Viettel Global Investment SA of uni- lateral management. This was after the Vietnamese firm refused to allow a dual-signature system for account- ing documents. The Cameroonian stakeholder also accuses Viettel Global Investment SA of massively importing workforce, thus leaving out Cameroonians marginalized in the process. Defending against these allegations, the Vietnamese group declared in statement dated October 1, 2018 that: “Over the one thousand employ- ees working at Viettel Cameroon SA, 94% of the staff are Cameroonians and they represent 85% of the man- agement. The Vietnamese personnel At the root of the conflict opposing Nexttel’s two shareholders are allegations of unilateral is working side-by-side with their management of the firm… local peers and are trying to train and transfer technology to them.” According to well-informed sources, the conflict between both sharehold- Once again, it appears that a 30% of Nexttel’s capital via Bestinver ers who are suspected of attempting dispute has arisen between share- Cameroon SA, while on the second to mutually get each other out of holders of mobile operator Viettel side, there are those backing Viettel the firm’s shareholding, is due to Cameroon which operates under the Global Investment S.A, Nexttel’s the company performing well in brand Nexttel. According to internal majority stakeholder (70%) which the last few years. In the first half of sources, the company is divided into operates under Vietnam’s defense 2016, Cameroon became Viettel’s two camps. The first camp regroups ministry. most profitable market in Africa as supporters of Baba Danpullo, These dispute was sparked as the firm had recorded a turnover of Cameroonian billionaire who owns Bestinver Cameroon SA accused CFA21 billion ($35.9 million) over the period; this was against $25 million for Halotel (Tanzanian subsidiary The company is almost divided into two of Viettel), $33 million for Movitel in Mozambique and $18.26 million sides, on one there are supporters of Baba for Lumitel (Burundi). In addition, at the end of June 2018, Nexttel to- Danpullo who owns 30% of its capital, taled about five million subscrib- and on the other are supporters of Viettel ers, against 6.6 million for MTN Cameroon and 6.5 million for Orange Global Investment S.A who holds 70% Cameroon, two competitors which entered the Cameroonian mobile of Nexttel. market 15 years ago. Brice R. Mbodiam

BUSINESS IN CAMEROON N° 69 / November 2018 7

MONTHLY STATISTICS

71.28% That is the voting score recorded by Paul Biya during the CFA 238 Billion recent presidential elections, allowing the leader to win a new seven-year mandate during which he will continue This is the amount Customs authorities of Littoral I and leading the country as he has been doing since November II, ambition to mobilize during the ongoing quarter (Q4 2, 1982 when he first took office. While outstanding, the re- 2018). It represents more than 70% of the overall amount cent score is below 2011’s when the leader had won 77.99% that the national customs authority expects during the pe- of the votes. riod. These customs departments cover Cameroon’s eco- nomic Capital. Overall, the customs general directorate of the ministry of finance expects to raise CFA261.5 billion during the said period.

713% This is the exponential progression rate of the volumes of grade I cocoa beans exported by Cameroon between the 25,000 2016-2017 and 2017-2018 cocoa campaigns, according to From October 26, 2018, to January 4, 2019, a little more the official figures published by the government. Between than 25,000 civil servants are invited to clarify their situ- those two campaigns, the volumes of grade I cocoa ex- ation with the ministry of finance. The call is addressed to ported grew from 1,099 to 8,933 tons (713%), thanks to the workers who have not been counted during the last phys- establishment of a quality bonus to get cocoa farmers to ical counting operation and those whose data have been produce better beans. The bonus which farmers should get invalidated after exploitation of the first data gathered. in the coming years amounts to a billion CFA. According to the ministry of finance, this prelitigation phase will not only allow latecomers to register themselves but also make things difficult for absentee civil servants who by various tricks were able to present themselves for the physical counting operation of April 2018.

1,533 ha This is the number of cocoa trees planted since 2012 by the nuggets of New Generation, a program initiated by the Cameroonian coffee-cocoa council to rejuvenate the pro- 130,000 tons duction workforce in the cocoa sector. This programme, After culminating at around 100,000 tons per year, the which stems from a study revealing that the average age structural shortfall in crude palm oil experienced by of Cameroonian cocoa producers was over 60, focuses on Cameroon is now 130,000 tons, according to the regulato- recruiting young people interested in cocoa-farming for ry agency of the oilseed cropping sector. The same source a three-year training. At the end of the latter, the trainees reveals that this is due to the acceleration of investments will be freely provided input needed to begin production. made by refiners after local production has been stagnat- ing for years now.

N° 69 / November 2018 BUSINESS IN CAMEROON 8 FOCUS

Digitalization takes over finance industry

These are the innovations spurred by banking’s digitalization over the past few years in Cameroon. The transformation now allows people with a bank account to travel all over the country having access to their accounts, via their smartphones and tablets. Well, briefly put, digitaliza- tion gets populations closer to banks. The same goes for insurance firms which are not left out. Indeed, for a long time, these firms’ used their website as a marketing tool or an interface. However, today, the plat- forms have become more of a virtual account manager where it is possible to get information on insurance products and even subscribe to those as efficiently as in any physical agency. According to experts, the transfor- mation, which is actually global, will, in Cameroon, push up penetration Digitalization could multiply the turnover of insurance firms fivefold! rates of insurance and banking. The latter, let’s recall, respectively stand at 2% and 20%. The most important thing however For ten years now, the young man tellers or account managers for other is that digitalization is a key factor behind the following story has had transactions. for growth in the insurance sector. an account at one of the banks However, the hassle ended two years According to Protais Ayangma who operating in Cameroon’s capital. ago when his bank launched an App led various insurance companies Throughout the first six years of enabling the young civil servant to and initiated “Assuretech”, a project this period, he suffered long queues perform multiple transactions from which aims at boosting Cameroon’s in front of tellers to get his salary. his smartphone or tablet. Wire trans- insurance industry leveraging on However, things got a little better fers, money transfer from current digitalization, “digitalization could when numerous ATMs were placed to savings account, from current increase the turnover [of insurance in various neighborhoods. Despite account to mobile money account companies] fivefold”; An evidence this major development, apart from and vice versa, submit a checkbook which all Cameroonian financial cash withdrawals from his bank request, check account statement, institutions appear to have well account, he was still forced to bear get instant notifications about trans- comprehended. the not always so cheerful face of actions, etc. Brice R. Mbodiam

BUSINESS IN CAMEROON N° 69 / November 2018 FOCUS 9

Zenithe Insurance becomes the first digital firm across all 15 CIMA countries

Users of the Zenithe Insurance digital platform can request and receive quotations, subscribe to and pay insurance policies online…

Launched in May 2017, Zenithe to execute any service contract with Japan, aimed at dematerializing pro- Insurance’s digital portal through the Cameroonian State ; this via the cedures for procurements’ provision which users can request and receive insurance firm’s digital portal. in Cameroon. quotations, subscribe to and pay Zenithe Insurance’s executives added In addition to saving time, money insurance policies online, is a true that with their newly launched on- and being safer for business owners, revolution in Francophone Africa’s line platform, the guarantees, which guarantees provided by Zenithe insurance sector. This was declared could take weeks to get before, are Insurance will be directly certified by the Cameroonian firm’s managing now delivered in an hour, at a lower on the platform by the ministry of director general, Maxwell Ndecham. cost also. public procurements once the latter “We are the first in the CIMA zone Better even, says Nchedam, the launches its e-procurement service. (Ed. Note: CIMA is the insurance insurance firm has launched the According to Mirabelle Dassé, head regulatory organ of Francophone “Zenithe Executive Club” whose of development at Zenithe Insurance, Africa), which covers 15 Central and members, after meeting a few by dematerializing subscription West African countries. I do not know requirement while joining, freely get to its various insurance offers and about Anglophone Africa,” he had said all guarantees needed to execute enabling online issuance of guaran- in Yaoundé, June 15, 2017. contracts with their partners. tees for firms, the company aims to That day, top executives from Zenith The new online platform can be improve insurance’s penetration rate Insurance met with economic accessed using a smartphone, a in Cameroon (only at 2% now). Most players of the construction sec- tablet, or any other connected mo- importantly, the firm’s goal is to triple tor to show them a new tool that bile device. By launching its portal, its turnover over five years. Already, allows to request, receive and pay Zenith Insurance took a leaf of the this turnover almost doubled in (using MasterCard, Visa or Orange government’s book in regards to its 2014-2016 from four to 7.9 billion Money) various guarantees needed e-procurement project, financed by CFA, official data shows.

N° 69 / November 2018 BUSINESS IN CAMEROON 10 FOCUS

Baloon, Africa’s leading insurance brokerer arrives in Cameroon

A few months after launching acquisition by South African epony- his mobile phone or computer, take a its activities in Côte d’Ivoire and mous group), two major insurers in picture, pick his offer, sign and pay via , Baloon, Africa’s leading Cameroon. mobile money. That’s all! It couldn’t get online insurance brokering startup, Later, the startup, founded by any simpler and faster”, the startup has officially opened a subsidiary Bertrand Vialle, former head of Gras declared adding that it intends to in Cameroon, last September 20, in Savoye Africa, plans to diversify its significantly contribute to the boom Douala to be exact. offers eying health insurance next, in of insurance in Cameroon. An un- Accredited since July 2018 by partnership with more firms operat- derstandable move considering that Cameroon’s ministry of finance, ing in Cameroon. “40% of its clients in other countries Baloon Cameroon will initially sell “No more queues, no more long forms were not insured before”. car insurances for AXA and Saham to fill! With Baloon, the insured only (which later became Sanlam after its needs to access www.baloon.cm on United Bank of Africa’s Nigerian subsidiary launches online banking service On 7 June 2018, UBA Cameroon launched in Douala, Cameroon’s economic capital, an online banking offer named “Leo”. This, the lender reveals, is “a software built to simu- late chats with users online”. Since the day it was launched, UBA’s clients can expose all their banking issues to Leo on Facebook. Leo’s role is to satisfy, as best as possible, the needs of customers of the Nigerian banking group’s subsidiary. Thus, Leo can help with account opening, wire transfers, topping-up call credit, issuing partial and full account statements, checking bal- ance, customer support, submitting complaints, requesting a checkbook, approving and rejecting issued checks, etc. UBA Cameroon therefore joins Ecobank on the online banking segment. The latter’s after deciding to go digital had closed many of its branches in Cameroon, as its operating costs had fallen drastically as a result.

BUSINESS IN CAMEROON N° 69 / November 2018 FOCUS 11

In partnership with a local startup, Commercial Bank of Cameroon launches the country’s very first ATMs enabling cash deposit Commercial Bank of Cameroon (CBC) has just opened at its new agency in Kribi, Southern Cameroon, the country’s very first auto- mated teller machine (ATM) allowing cash deposit. This bank thus is the first to have this type of ATM in the country. This was possible with an app developed by Cameroonian startup Iwomi Technologies. The fintech which is based in Douala provides to general public and financial institutions “innovative, revolutionary and safe digital solutions making banking and finan- cial services more accessible, affordable and available”. “We, at Iwomi, are grateful to CBC’s management for trusting us with the execution of this major project. We are still opened and wish to help other banks or financial insti- tutions interested in develop- ing a similar solution,” one of Iwomi Technologies provides to general public and financial institutions innovative, revolutionary and safe digital the fintech’s executives said. solutions. Ecobank’s ATMs allow cash withdrawal no card Ecobank is the first bank in Back in May 2017, Ecobank had economic and financial inclusion Cameroon to enable cash withdrawal already announced it would leverage which is one of the main factors im- at ATMs without a banking card. on digital services. It then launched pacting the growth of our economies. “With Ecobank Xpress cash, send Ecobank Mobile App, an online Ecobank will therefore be able to reach money to anyone, withdrawable, banking solution for individuals and and serve more people in Cameroon, without a card, at any Ecobank ATM,” businesses. even those without a bank account,” the Pan-African bank said. “Our digital strategy fosters people’s the bank had said.

N° 69 / November 2018 BUSINESS IN CAMEROON 12 FOCUS

Digital is the future of Cameroonian banking - Bouchra Geawhari, Consultant at Adria Business

From June 26 to 28, 2018, Douala hosted the 10th Africa Banking Forum.

Adria Business & Technology, IT en- 26 to 28, 2018, for the 10th Africa lution, Cameroon’s banking industry gineering specilized in editing and Banking Forum. On this occasion, would have to take into consider- integrating softwares in financial Bouchra Geawhari, consultant for ation many new factors that will sectors was in Douala from June the firm, said that with digital revo- drive it to adapt and rethink its economic model. “In Cameroon, digitalization of bank- With digital revolution, Cameroon’s ing services helps improve the rate of bancarization, carry out various banking industry would have to take operations, safely and remotely, while saving both time and cost. The into consideration many new factors transformation benefits both banks that will drive it to adapt and rethink and their customers. Digital is the future of Cameroonian banking,” the its economic model. consultant declared.

BUSINESS IN CAMEROON N° 69 / November 2018 FOCUS 13

Activa and Orange launch micro- insurance offer accessible via mobile monthly cost of CFA600 (€0.91) in return for a minimum total month- ly capitals guarantee of CFA70,000 (€106.71) and CFA105,000 (€160.07) after five months of successive subscription. The second offer, “Makala Plus” involves a monthly subscription of CFA1000 (€1.52) in return for a minimum total monthly capitals guarantee of CFA140,000 (€213.42) and CFA210,000 (€320.14) after five months of successive subscription. Richard Lowe, CEO of Activa, explained that Mobile Money was picked as a payment mode because of the high penetration rate of mobile in Cameroon. “We noticed that in all of Africa, insurance had a Payable via Mobile Money, Activa Makala intends to leverage on Cameroon’s high mobile penetration rate. penetration rate of 2% while mobile’s is far greater, about 70% across the continent and more than 80% in Cameroon. We therefore thought that Since 2015, Activa group and favored. It can be subscribed to via the obvious decision was to opt for mobile operator Orange Cameroon, Mobile Money. mobile, our old partner Orange in entered into partnership to launch Activa Makala includes two distinct this case, as a mean to better reach “Activa Makala”, a new insurance offers. The first is “Makala Classic” our target”. policy exclusively for the less which can be subscribed to at a Afriland First Bank and MTN team up to allow transactions between bank and mobile accounts For some years now, Afriland First mobile industries. to banking services. This is already a Bank’s clients who have an MTN With MAC, the Cameroonian bank reality in where mobile money Mobile Money wallet can check their “moves on with its multi-channel (M-Pesa) represents about 40% of to- bank accounts from their mobile strategy by migrating to mobile whose tal bancarization rate which is 70%. phones and even carry out financial development will improve bancariza- MAC, a “highly secure offer” accord- transactions between their bank and tion level in Cameroon and the whole ing to its promoters, is the second mobile accounts. This was made Central African region”. service of the kind to be launched in possible with the bank’s Mobile Indeed, according to experts, in Cameroon as Ecobank and Orange Account Connected (MAC) offer, a countries with a low bancarization Cameroon launched a similar service service jointly launched by Afriland rate like Cameroon, mobile, whose on July 9, 2015. First Bank and MTN, the respective penetration rate stands around 80%, leaders of Cameroon’s banking and can help substantially boost access

N° 69 / November 2018 BUSINESS IN CAMEROON 14 INTERVIEW

Hope Sona Ebai : “The strategy we worked on aims to make Cameroon a visible player on the cashew market five years from now”

Well known in Africa’s cocoa industry, the head of Globalru-Urban Consultants Inc, based in Ghana, is one of the experts who elaborated Cameroon’s national development strategy for the cashew sector. Here, he discusses opportunities that the sector holds for the Cameroonian economy.

BUSINESS IN CAMEROON N° 69 / November 2018 INTERVIEW 15

“What should be done is plan large scale production of cashew seeds since the sector cannot be truly developed with backyard plantations only.”

Business in Cameroon: Following demand for cashew nuts in the elaboration of the national and exporters flooding production BC: Some people wish to start strategy to develop value chains of areas, the sector is now considered a growing the crop in Cameroon the cashew sector in Cameroon, profitable one. but have to deal with the lack what is your review of the or unavailability of seeds. How industry? BC: Cashew trees which produce does the national development Hope Sona Ebai: Cameroon’s cashew cashew nuts grow in specific strategy plan to overcome these industry is still at the embryonic agro-ecologic zones. In Cameroon, challenges? stage. It is true that cashew trees where are the main production HSE: What should be done is plan have been planted in the country basins? large scale production of seeds since since 1975 but the sector is yet to be HSE: Identified basins are mostly in the sector cannot be truly developed fully developed, from production to the far-North, Adamaoua, the North, with backyard plantations only. For processing, including production and the East, and part of the Central example, to get 10,000 tons of cashew distribution of improved seeds. region, in the department of Mbam nuts per year, 11 million seedlings are which has a dry weather to be exact. needed. We must therefore produce BC: In Sanguéré, in the North, Well, cashew grows in hot regions, so high-yield seeds since there will also there is a plantation of more than the more the rain, the less the yield. be losses to take into account. For 100 hectares that dates back from the 70s. So how is it that the sector hasn’t taken off in so many years? HSE: At the time, cashew trees were planted only to reforest. I am well acquainted with the Sanguéré project as I had just returned to Cameroon after my studies abroad when it was launched. It was funded by the National Fund for Rural Development –FONADER. So, the fact was that even if cashew was consumed by the people, it was not seen as an agricultural commod- “Cashew is an agricultural industry that has so much more to offer rural areas, beyond revenues.” ity. However, today, with a rising

N° 69 / November 2018 BUSINESS IN CAMEROON 16 INTERVIEW

“Cameroon’s cashew industry is still at the embryonic stage.”

cocoa for example, seeds’ mortality know their origin. From what I know This is done to get farmers interested rate reach 35% for traditional seeds. however, IRAD must first genetically in the crop, get them to fully engage characterize the seeds and then pick in the sector, while implementing BC: Currently, the Agricultural those that are suited for agro-eco- actions that will help obtain more Research Institute for logic zones where cashew can be interesting yields. Development (IRAD) is carry- grown. It will take some time and ing out a program that aims to that is why those in need of the seeds BC: In Côte d’Ivoire, cashew is produce 10 million cashew seeds have to be a little patient. Even if we known as “grey gold”, due to by 2021. Are these seeds efficient, import seeds from West Africa, we its impact of economic growth genetically ? first need an adaptation assessment of rural areas. What economic HSE: Unfortunately, I do not know of Cameroon’s micro-climates. assets could this sector offer in anything about the genetic compo- Seeds that are currently distributed Cameroon? sition of these seeds since I don’t don’t surely ensure optimal yields. HSE: I believe cashew is an agricul-

BUSINESS IN CAMEROON N° 69 / November 2018 INTERVIEW 17

”Under the national strategy, the whole sector is taken into account, both production and processing.”

tural industry that has so much more and will be able to see and appreciate does the national development to offer rural areas, beyond revenues. available products and determine strategy plan for in this regard? For example, in cotton-farming zones what fits best their expectations. HSE: Indeed, the strategy looks at in the north, cashew is an additional this issue. We have exchanged on source of revenue, besides cotton. BC: Just like it is the case with co- how to build bankable projects and Today, Côte d’Ivoire is far more coa, we might end up in a situation attract investments in the sector, advanced in this sector but it started where small farmers are excluded both from banks, States and foreign just like us now. However, after five from the processing chain because investments as well. to seven years, Ivoirians noticed they lack means to purchase that some cashew seeds were not equipment, unlike major players… BC: According to you, when could good varieties. That is why we must HSE: Today, in the cocoa industry, Cameroon become an actual be careful and provide our research we have small equipment that can cashew producer, if the national institutions with adequate means to take a good start.

BC: In West Africa, cashew-farm- “Identified basins are mostly in ing is well integrated in popula- the far-North, Adamaoua, the North, tions’ habits and helps farmers generate significant revenues. the East, and part of the Central However, in this region, process- ing is a bit ignored. In Cameroon, region…” what does the cashew sector national development strategy plan in this regard? fit in a room. This is also possible in development strategy for the sec- HSE: Under the national strategy, the the cashew sector. With technology tor is effectively implemented? whole sector is taken into account, evolving, there are more and more HSE: The strategy we worked on aims both production and processing. processing equipment that meet to make Cameroon a visible player Actually, in this regard, a major fair small farmers’ needs. on the cashew market five years from will take place in Côte d’Ivoire this now, by 2023 that is. The emphasis month, November 2018, a fair where BC: In terms of agro-industrial here is becoming visible, no more for will be showcased processing equip- development in Africa, one of the the moment. ment. Actors of the Cameroonian main challenges is the difficulty to cashew industry will attend the event access financing. Once again, what Interview by Brice R. Mbodiam

N° 69 / November 2018 BUSINESS IN CAMEROON 18 PUBLIC MANAGEMENT CEMAC Heads of State reiterate their commitment to a coordinated response to crisis Gathered for an extraordinary strategy, the recovery of the CEMAC the economic program with the summit October 25 in Ndjamena, economies and the maintenance of International Monetary Fund (IMF) the capital of , the Heads of monetary and financial stability. to efficiently implement reforms State and Government of the Central The CEMAC Commission was crucial to economic recovery. African Economic and Monetary required to strengthen the prudential Let’s mention that the IMF’s econom- Community (CEMAC), reiterated supervision of credit institutions in ic program started since December their commitment to a coordinated order to ensure the stability of the 2016, following a growth decline to exit from the crisis in the sub-region. sub-regional banking system. -0.4% during the year, a level never To this end, they encourage the In addition, the Conference of Heads reached in the last 15 years. As well, region’s central bank to pursue apply- of State instructed ministers in budget balances were all in deficit. ing measures necessary to the crisis’ charge of negotiating or monitoring

Cameroon seeks additional over CFA40bn to assist refugees

Cameroon is having issues mo- bilizing necessary funds to assist the 363,710 Central African and Nigerian refugees identified across the country. This was revealed late September by the United Nations High Commissioner for Refugees (UNHCR) in a brief. According to the UN body, out of an estimated $86.7 million (over CFA50 billion) required, the country has so far only raised $18.2 million (just over CFA10 billion). A gap of $68.6 million, or more than CFA40 billion. Let’s note that, in addition to the 263,206 Central African refugees and 100,504 Nigerian refugees, respective- ly in the East and Far North, UNHCR also plans humanitarian assistance for internally displaced persons flee- ing the abuses of Boko Haram. This brings to 696,097 the total population targeted by the UN agency’s actions in Cameroon.

BUSINESS IN CAMEROON N° 69 / November 2018

20 PUBLIC MANAGEMENT

CFA150bn bond issue: Cameroon secures CFA121.5bn from nine local financing institutions Nine local banks and financial insti- Investment) and the underwriting This new Cameroonian government’s tutions have guaranteed CFA121.5 syndicate group made of BICEC, bond issue, the 5th since 2010, is billion of the CFA150 billion bond Ecobank, UBA, BGFI, SCB Cameroun intended to finance some 40 ongoing which Cameroon is to issue on the and Financia Capital. Thanks to the projects in the country’s ten regions. Douala Stock Exchange, as to ensure underwriting of these nine financial Annual interest rate is 5.6% through- a successful fundraising operation. institutions, the amount sought now out the maturity period (2018-2023). This followed a roadshow launched is only CFA28.5 billion. The bond costs CFA10,000, and yesterday October 25 in Yaoundé, However, the institutions said, part of the minimum to subscribe is which continues today in Douala. these underwritings could be placed CFA300,000, or 30 bonds. Called The bond is to be subscribed from with the general public if, individuals “ECMR 5.6% net 2018-2023”, this next October 29 to November 9. and companies show interest in sub- bond will then be listed on the DSX, The nine institutions include the scribing to this public offering by the as part of the secondary market, in three arrangers of the transaction Cameroonian government; for which order to allow securities exchanges (Société Générale Cameroun, an over-allotment is not excluded, in between investors. Afriland First Bank and EDC the event of oversubscription.

Cameroon suspends wage and pensions for over 600 deceased people, after the physical count Following the first phase of the According to the Ministry of Finance, are irregularly discharged from it, cash register physical counting of the purpose of this census is to due to an unjustified absence, resig- Cameroonian civil servants and state identify and clean off from the State nation or undeclared death. agents, initiated in April 2018, the balance file all public officials who Ministry of Finance has already sus- pended salaries and pensions of 645 officials declared deceased, sources close to the matter revealed. For the record, in addition to this measure, which will allow the Public Treasury to make some savings in the coming months, just over 25,000 other Cameroonian officials are invited to clarify their situation with the ministry, as part of a pre-litiga- tion procedure, which will take place from 26 October 2018 to 4 January 2019. The move includes public administration officials who were not properly registered during the physical counting, or those whose registration was invalidated after the first data provided were used.

BUSINESS IN CAMEROON N° 69 / November 2018 PUBLIC MANAGEMENT 21

Government securities’ return rates on Beac market were between 2.6-7.5% in September 2018 In September 2018, government week Treasury bills, which are the Cameroonian government has lim- securities issued by Cameroon on the most issued by the Cameroonian ited itself to issuing public securities Central African States Bank (Beac) Treasury on this market, achieved with a maturity of up to 52 weeks (1 securities market provided investors return of 2.6%, 2.7% and 3.3% respec- year), following the limited success with return rates ranging from 2.6 to tively. The rate reached 5% for 3-year for 2-year Treasury bond issuance, in 7.5%, depending on maturity period, maturity securities and up to 7.5% for past years. an official Beac analysis revealed. 5-year maturity securities. The document said, 13, 26 and 52- Let’s recall that since 2017, the

Moody’s maintains negative outlook on sovereign rating said prior to the election, which was finally won by ruling president Paul Biya with over 71% of the votes. Elisa Parisi-Capone, vice president and sovereign analyst for Cameroon at Moody’s, said this negative outlook also reflects “a rising likelihood of the country’s fiscal strength continuing to weaken and the ongoing conflict in its Anglophone regions”. “As well as the humanitarian costs, the conflict is increasingly having an economic cost especially in the cocoa and agro-processing industries which experienced significant production and export declines recently,” Parisi- Capone said. “A rating downgrade could occur if pressure on the government’s fiscal strength and liquidity risk increase or if political unrest intensified with negative spillovers on economic activity,” the U.S. agency points out. Yet, Moody’s said, outlook would probably be stabilized if fiscal consol- idation and financial governance re- U.S. rating agency Moody’s on months, investors would most likely forms were broadly aligned with the October 5 maintained its B2 grade not subscribe, or would subscribe by three-year Extended Credit Facility (highly speculative) with a negative charging very high interest rates. (ECF) program agreed between the outlook on Cameroon’s long-term “Domestic political risk is the main IMF and Cameroon. Also, a resolu- foreign currency borrowings. driver” of this negative outlook rat- tion of tensions in the Anglophone This means, if the country completes ing, “given mounting succession risks regions would help secure credit. a Eurobond issue in the coming ahead of the October 7 polls,” Moody’s

N° 69 / November 2018 BUSINESS IN CAMEROON 22 PUBLIC MANAGEMENT

CEMAC commission forecasts a CFA81.44 bn budget for 2019

Fatima Haram Acyl (photo), Vice should be valued in terms of revenue forecasts will be submitted to the President of the CEMAC Commission and expenditure at CFA81.44 billion Council of Ministers of the Central presented on October 19 in Malabo, for the 2019 financial year. Revenues African Economic Union (UEAC), Equatorial Guinea, the community’s from the Community Integration Tax which is being held today October 23. 2019 draft budget. (CIT) are expected to reach CFA57 Yet, “expenditure forecasts are expect- This presentation, before the mem- billion, despite its potential estimat- ed to remain relatively stable in 2019 bers of the Inter-State Committee, ed at CFA99.7 billion. compared to the current year,” Fatima showed that the budget forecasts Following talks on this draft budget, Haram Acyl stressed.

Anglophone crisis and 3-year IMF scheme stall 4th General Population Census Initially scheduled for April this Economy, Alamine Ousmane Mey, Monetary Fund (IMF), as part of its year, the 4th general census of the according to whom the first hurdle three-year program with the country, Cameroonian population could not was linked to insecurity, particularly which do not allow, for the time be- take place. Worse, it now appears the unrest in Anglophone regions. ing, to include this population census clear that the operation will not also According to the ministry’s internal in priorities. be launched in the coming months. sources, a second reason is the con- This was revealed by the Minister of straints imposed by the International

BUSINESS IN CAMEROON N° 69 / November 2018 PUBLIC MANAGEMENT 23

Cameroon: economy grew by 3.9% in Q2 2018

Over the second quarter this year, In the secondary sector, thriving Major drivers are trade and repair Cameroon’s economy growth stood businesses include construction and activities, professional business at 3.9%. This was read in a recent other manufacturing industries, in services and transport. report published by the National particular wood processing, beverage On the demand side, the improve- Statistics Institute (INS). During the manufacturing, crude oil refining ment in economic growth is mainly first quarter, the figure was 3.2%. and rubber production. On the other driven by final consumption expendi- “With regard to supply segment, all hand, the decline in crude oil extrac- tures and private investment. This primary sector industries performed tion and agribusiness slowed growth trend is slowed by a 10.8% decline in well, with the exception of industrial in this sector. exports volume against 8.3% increase and export agriculture,” the document All tertiary sector’s businesses in imports volume. said. positively contributed to the growth.

Cameroon and Congo reach agreement to boost trade The General Customs Directorate randum of understanding will have ment. The ultimate goal is to boost (DGD) inked October 9, on behalf of a greater impact on their respective trade and strengthen sub-regional the Government, a draft cooperation economies,” said the DGD. integration. agreement on land transport of The office said, given the importance Let’s note that back in December goods with the Republic of Congo. of transport for development and the 2012, President Paul Biya signed a “Cameroon and Congo will soon be need for close cooperation between decree ratifying the air transport linked by a 651 km paved road linking the two nations in order to control agreement concluded with Congo. the city of Sangmélima in southern passengers and goods transport Cameroon has also carried out simi- Cameroon to the city of Ouesso in issues, both parties agreed on the lar actions with Chad and CAR. northern Congo, so the new memo- guidelines in this reference docu-

N° 69 / November 2018 BUSINESS IN CAMEROON 24 FINANCE Sonara is the main source of risk for Cameroon’s banking system (IMF) The International Monetary Fund main culprit responsible for the lose 85% and 50% of their respective (IMF) has just carried out a study direct risk to the banking system from excess equities,” the study reveals. on Cameroon’s economy suggesting state-owned enterprises, in terms of However, IMF added, the decline in that the National Refining Company large exposure and liquidity and credit debt (nearly CFA1,800 billion) with (Sonara) is the main source of risk r i s k s ,” the Bretton Woods institute suppliers between 2014 and 2016 for the country’s banking system. said. is subsequent to a collapse in oil Indeed, explains the IMF, Sonara “Of the 6 banks with positive net prices. As well, the investment of accounts for 65% of the deposits of exposure to Sonara, one has negative CFA100 billion of the CFA750 million public companies and 62% of loans; equity, three will not meet the mini- Eurobonds issued in 2015 helped 87.9% of its debt is due within one mum capital requirement in the event repay government bonds held by year. This made the company “the of Sonara’s default and two banks will Sonara in 2016.

Cameroon’s law sanctions financial institutions guilty of concealment or false information on movable property used as collateral Under the implementation of an online system of a “national prop- erty security directory” (RNSM) in Cameroon, the government announces that there are sanctions against financial institutions guilty of concealment or false information on movable property put as security by borrowers. “Without prejudice to the sanctions provided by the regulations in force, the situation within eight days. the account of the credit institution the omission, refusal to report or com- Article 13 (1) provides that, for credit concerned in the books of the Bank munication of inaccurate, false and/or institutions, after the expiry of eight of Central African States (Beac). erroneous information is punishable days, and in the event of non-compli- With regard to microfinance institu- by penalty payments,” indicated ance by the institution in question, tions, after the expiry of eight days, the article 12 of the decree signed the application of periodic penalty and in the event of non-execution October 9 by the Finance Minister, payments shall be CFA50,000 per day of the microfinance in question, the Louis Paul Motaze. These penalties of delay during the first 10 days. The application of the penalty payments shall be applied after warning by any penalty increases to CFA75,000 per is CFA25,000 for the first 10 days. means in writing, accompanied with day of delay as of the 11th day. The As of the 11th day, it increases to an unfollowed-up injunction to the amount of these penalty payments CFA50,000 per day of delay. reporting institution to regularize shall automatically be debited to

BUSINESS IN CAMEROON N° 69 / November 2018 25 AGRIBUSINESS Cameroon forecasts 150,000 new jobs in cashew sub-sector over 2019-23 The promotion and development of cashew could help create 150,000 jobs in the three northern regions and in the East of Cameroon; areas that best meet the crop’s weather requirements. Yet, the creation of these jobs is condi- tioned by the establishment of 150,000 ha of cashew plantations over the focus period, the document on the national strategy for the crop’s value chain development indicates. For the record, this document was set with technical support from German cooperation body GIZ. The target is all the more achievable in Cameroon, as the Agricultural Research Institute for Development (Irad) is currently deploying a program with the aim of producing 10 million cashew tree plants by 2021, equivalent to about 100,000 hectares of plantations. Let’s note that the cashew sub-sector offers still unexploited opportunities across the country, it is officially reported.

Cameroon launches registration for cocoa quality premium selection for the 2017-2018 season Cameroonian cocoa producers allowing them to be identified as pro- this new strategy “the volumes export- have the period from October 16 to ducers, present a “document attesting ed in grade I increased from 1,099 to November 16 this year to register to the marketing of a grade 1 or good 8,933 tons between the 2016-2017 and with the relevant departmental fermented cocoa”, sources said. 2017-2018 marketing years, reflecting delegations of the trade ministry in As a reminder, the cocoa quality pre- an increase by 713%,” revealed Trade order to qualify for the cocoa quality mium was introduced in Cameroon Minister Luc Magloire Mbarga premium for the 2017-2018 season. during the past season to encourage Atangana on August 8 in Yaoundé, According to a statement from the local producers to produce quality at the opening of the 6th edition of trade ministry, applicants for this beans. Indeed, for more than ten the Cameroon International Cocoa premium valued at CFA1 billion years, the country has exported over Festival (Festicacao). will have to, in addition to elements 90% of grade 2 beans. But, thanks to

N° 69 / November 2018 BUSINESS IN CAMEROON 26 AGRIBUSINESS

Cameroon: SEMRY to secure CFA1bn government financing Once the CFA150 billion which the Though officials said the money beginning of the year, in the alloca- Cameroonian government is to will be used to upgrade equipment, tion of state subsidy on which the raise on the Douala Stock Exchange it could rather serve to ease the company mainly depend, making (DSX) is mobilized, the Yagoua rice very tense social climate within the employees accumulate between five development company (SEMRY) will company. and six months’ salary arrears. receive a financing of CFA1 billion, it According to internal sources, the is officially reported. situation is due to a delay, since the

Socapalm reported a CFA3.8bn decline in turnover, in H1 2018

During the first half this year, explained, is the result of the in- believe all of our production will be Société camerounaise de palm- creasing oil import in the country, sold before the current year ends, and eraies (Socapalm), local branch of raising the company’s crude palm oil our annual turnover should be around Luxemburg Société financière des stock. “Crude palm oil stock rose from CFA62 billion,” it said. caoutchoucs (Socfin), experienced a 16,481 tons as at 30 June 2017 to 30,959 Let’s note that the agribusiness ex- decline by CFA3.8 billion (-11.45%) in tons on 30 June 2018, an increase by pects the result of its pre-tax activity turnover compared to H1 2017. This 87.8%,” Socapalm said. for the 2018 financial year to be about was revealed by the auditors’ report. Nevertheless, the company remains CFA15 billion. The situation, the company optimistic about the future. “We

BUSINESS IN CAMEROON N° 69 / November 2018 AGRIBUSINESS 27

Nigeria absorbs 70-80% of Benue River’s fish products

Nigeria is the first consumer of market and prices are more profita- their countries. fishing products from the Benue ble. It should be noted, however, that What however contrasts is, fish con- River, in the northern region of Nigerians also fish intensively on the sumption in Cameroon continues to Cameroon. This was revealed by the Benue River. be largely dominated by imports. The region’s delegation at the ministry Not only the north region’s fishing country spends more than CFA100 of livestock, fisheries and animal production is exported to neighbor- billion a year to import fish, official industries (Minepia). ing countries. Officially, most of the estimates showed. “Authorities “I note that neighboring Nigeria fish products from the Littoral and must ensure that the local market is absorbs more than 70% to 80% of the Southwestern regions are also sold to sufficiently supplied before authorizing local fish production in Benue,”said a Nigeria. As well, out of the over 5,000 exports,” the above-mentioned official delegation official. fishers operating in Lom Pangar suggested. According to local sources, there is dam’s reservoir, eastern region, more a higher demand on the Nigerian than 80% are foreigners and supply

N° 69 / November 2018 BUSINESS IN CAMEROON 28 ENERGY Cameroon: SNH paid the State over CFA2,000bn in 2013-17 Cameroon’s national oil and gas company (SNH) reported it paid CFA2,016.65 billion, collected from oil sales, to the State during the period 2013-2017. However, we noted, the amounts paid do not follow a steady trend. Indeed, the revenues were CFA553.047 billion in 2013, then declined to CFA444.738 billion in 2014. In 2015, there was yet another decline to CFA378.537 billion, further to CFA291.244 billion in 2016, before an improvement to CFA349.084 billion in 2017. The company attributed the trend to the variation in the Brent price. In 2013, the price of a barrel of Cameroonian crude oil was $107.13 while the international market price was $108.66. In 2014, it was respec- tively $97.01 and $98.95. In 2015, the price stood at $49.70 for the Cameroonian crude oil com- year for Cameroon, the country Cameroonian crude oil was traded pared to $52.39 per barrel interna- sold its crude oil at $39.38 while the at $53.27 per barrel while the price tionally. In 2016, which was the worst market price was $43.73. In 2017, on international market was $54.19.

Gas producer VOG seeks new opportunities, pending deal resumption with major customer Eneo In Cameroon, the natural gas pro- October 22 by Natural Gas World. they have undertaken to purchase a ducer Victoria Oil & Gas (VOG) has The company, however, remains op- minimum volume of gas guaranteed still not resumed deal with its main timistic that a solution will be found, for 10 years. customer, the power utility Eneo. though progress has been delayed by Let’s note that the 50-MW Eneo ther- As a result, the company started the recent presidential election. In mal power plant in Douala stopped moves in searching for new clients addition, VOG said that more than operation since January this year due in the country and is considering 30 existing and new customers, most to debt problems, seriously affecting selling minor stake in Medvezhye of whom are on its gas network, have VOG’s financial results. gas discovery upstream in Russia. expressed interest in building a mini The information was reported today industrial power plant. In exchange,

BUSINESS IN CAMEROON N° 69 / November 2018 ENERGY 29

Fuel distributor Oilibya renamed Ola Energy

Ola Energy becomes the new network across the continent. our firm’s very essence as a modern identity of fuel distributor Oilibya According to the manager, in player in the energy sector across in Africa. This was announced addition to Cameroon, the move also our entire activity scope in Africa. It October 12 in Tunis by Ibrahim covers 7 other countries including features the dynamism, determination Bugaighis, CEO of Libya Oil Holding, , Côte d’Ivoire, , Kenya, and ambition within our Group during the pan-African oil company that , Reunion Island and this key phase of its development,” ex- manages Oilibya’s service station Senegal. “This new brand perfectly fits plains Ibrahim Bugaighis.

Bowleven completes second drilling on Etinde permit, ahead of schedule British oil and gas company finally completed faster than Cameroonian acreage,” said Eli Bowleven announced October 18 expected (just over a month). Work Chahin, CEO of Bowleven. it has completed the drilling of was conducted by Schlumberger Let’s note that the company holds a second well named IE-4 on its firm. 25% of the Etinde permit, in part- 2,316-km² Etinde permit, offshore “The preliminary test results from nership with New Age and Lukoil Cameroon. IE-4 suggests a very interesting set which holds 37.5% of the assets This operation announced, early of results and will add a broader each. September, to last 90 days was commercial dimension to our

N° 69 / November 2018 BUSINESS IN CAMEROON 30 TRANSPORTATION Cameroon meets international aviation security standards (ICAO) Cameroonian minister of transport, an improvement by 16.70%. The the implementation of civil aviation Jean Ernest Ngalle Bibehe (photo), implementation of the Convention security standards are paying off”, announced that the International on International Civil Aviation is Jean Ernest Ngalle Bibehe said. “They Civil Aviation Organization (ICAO) 70.96% compared to 63.38% in 2015, (results) are all the more encouraging has transmitted the confidential an improvement by 7.58%. Security as they are obtained in a context of aviation security audit report, con- and facilitation standards are 46.79% transition where corrective actions are ducted in Cameroon last April 18-27 met compared to 31.31% in 2015, an only completed at Yaoundé-Nsimalen as part of the universal security audit improvement by 15.48%. International Airport and are being program (Usap). “These positive results, achieved implemented at Douala, Garoua Results showed that the country has thanks to the significant human, and Maroua-Salak International achieved 68.85% effective implemen- material and financial resources Airports,” he added. tation of an aviation safety oversight implemented [...] shows the actions system, compared to 51.12% in 2015, undertaken by Cameroon to improve Aéroports du Cameroun commits to ISO 9001 and 14001 certification Aéroports du Cameroun (ADC), the public company charged with airport platforms management announced it kicked off ISO 9001 and 14001 certification processes. In this wake, the company is finalizing a quality and environmental management system. This is “a strategic approach to improve the company’s overall performance and provide a solid basis for initiatives that would ensure the sustainability of the quality and environmental management system,” said ADC. The outcomes of this new management system, which should lead to ISO 9001 and 14001 certification, aimed at providing ser- vices that meet the requirements of custom- ers and stakeholders, including airlines, sup- pliers, operators, the national civil aviation, the Agency for the Safety of Air Navigation in Africa and Madagascar (ASECNA), etc. To achieve its goals, ADC must monitor, measure and analyze satisfaction through marketing surveys, meetings, committees etc. The ISO 9001 and 14001 certifications, it should be noted, cover the quality and environmental management system.

BUSINESS IN CAMEROON N° 69 / November 2018 31 INDUSTRY Source du Pays grows equity from CFA1.2bn to CFA3bn

Florence Njongue Etame, notary This increase in capital of the mar- Only Source du pays, through the at the headquarters of the Court keter of “Supermont” and “O’Pur” acquisition in 2016 of Nabco (former of Appeal of the Littoral in Douala, brands comes amid a stiff competi- producer of O’Pur) formerly owned announced via local media that she tion that already caused the once-hot by Cameroonian billionaire Nana received, October 2, the minutes of a “Semme” brand owned by Seme Bouba, still maintains its leadership combined general meeting of Source Noungon to almost disappear on the in the mineral water market with du pays. market in 2017. As well, according to 61.7% of market share. According to the minutes, the the 2017 report of the Brasseries du In 2017, Cameroon’s mineral water company has decided to raise its Cameroun (Sabc), “L’eau Sano only market was estimated at 1.2 million share capital by CFA1.750 billion, owes its survival to a permanent hectoliters, up 6% compared to 2016, from CFA1.250 billion to CFA3 promotion of its products”. Sabc itself according to the Nielsen agency. billion, by offsetting the debts of all reported sales narrowed by 21% over shareholders. the period.

Chinese Hebei Huatong deploys activity in Cameroon, upon a CFA5bn investment Chinese group Hebei Huatong has produce and market twisted over- industrial complex in Tiko, in the just opened a branch in Cameroon, head, domestic, industrial and un- southwest. after Tanzania and South Africa. The derground power cables. Subsidiary Meanwhile, aiming to source raw newly launched -Everwell Cameroon CEO Wang Hong Yang said 90% of materials such as aluminum from Cables and Engineering S.A.- is employees are locals. local firms, the Chinese group also located in Bonabéri-Ndobo, Douala, According to Hebei Huatong, the partnered with the industrial compa- the country’s economic capital. Douala plant is just the first phase ny Alucam. With this facility valued at CFA 5 of a vast project that includes the billion, the Chinese company will construction, as of 2019, of a 30-ha

N° 69 / November 2018 BUSINESS IN CAMEROON 32 INDUSTRY

Dangote reports 0.9 million tons of cement sold in Cameroon, in late September 2018

Nigerian industrial giant Dangote performance is motivated by the tons at the end of September 2018, says it sold 0.9 million tons of cement brand strength, improved sales and up about 8.6% compared to the same over the first nine months this year, marketing strategies and processes, period in 2017. roughly the same volume the same greater visibility through trade Let’s mention that market growth is period in 2017. shows, sponsorship and advertising, mainly driven by the construction Compared to the first quarter of improved relations with key distribu- sector, infrastructure projects such 2018, sales grew slightly by 0.3 mil- tors and better analysis of customer as roads, dams, sports stadiums, lion tons as the group reported 0.6 needs. hotels and hospitals in preparation million tons of cement sold in Q1. It estimates the country’s total for the African Cup of Nations, sched- According to Dangote group, good cement market at nearly 2.3 million uled for June-July 2019 in Cameroon.

BUSINESS IN CAMEROON N° 69 / November 2018 33 INFRASTRUCTURE Cameroon to pump 70% of soon-to-be-issued bonds in AFCON-related infrastructures

Cameroon intends to inject CFA107 As well, the Reunification Stadium in fulfil contracts, due to cash flow billion out of the CFA150 billion Douala will receive CFA8 billion for constraints. soon to be mobilized on the Douala rehabilitation work. In the Western region, where a brand Stock Exchange into infrastructures, In Garoua, the only northern city to new stadium has already been erect- in preparation for the 2019 AFCON. host games, CFA20 billion will be in- ed in the locality of Kouékong, CFA17 This equates to 70% of the amount, vested, including CFA8 billion for the billion will be invested to build a the government said in the opera- rehabilitation of the Roumde-Adja secondary stadium and rehabilitate tion’s information note. stadium and its access roads, and four other training stadiums in the In detail, CFA62 billion will be CFA12 billion for the rehabilitation of cities of Mbouda, Bafoussam and used to fund final works at the four training stadiums. Bandjoun. Olembe sports complex (a suburb This latest financing will benefit the Let’s recall that the coming CFA150 in Yaoundé), its secondary stadiums company Prime Potomac, which is billion bond issue received ap- and access roads will receive CFA36 leading works on these four stadi- proval from the Financial Markets billion; CFA26 billion for the Japoma ums, and was recently accused by Commission (CMF) last October 19. complex (suburb of Douala), its sec- employees and other subcontrac- ondary stadiums and access roads. tors for failure to pay wages and

N° 69 / November 2018 BUSINESS IN CAMEROON 34

LEADER OF THE MONTH

Cameroonian Joël Embiid becomes the highest-paid NBA center, on a contract with Under Armour

U.S firm Under Armour trusts Joël Embiid to help impose the brand in the NBA.

After his contract with Adidas best-paid center of the famous NBA Philadelphia Sixers by 5 years, for expired September 30, Cameroonian team. total revenues of $148 million (just basketball player Joël Embiid, who “Basketball has given me over CFA82 billion). He said a large plays for Philadelphia Sixers with everything, but it has to be bigger than part of the amount will be invested the American NBA team, announced basketball. That was the first thing in the Foundation managed by his October 10 on his Twitter account that I said to Under Armour” said the parents in Cameroon. The same goes that he signed a contract with U.S. 24-year-old player. for revenues generated through the footwear, sports, and casual apparel “I want to use this partnership to do collaboration with Under Armour, manufacturer Under Armour, Daily something real. I want to do something which relies on the Cameroonian Nation said. that would make my brother [Arthur, basketball player to impose the No detail was disclosed but, accord- who passed away in a car accident in brand in the NBA. ing to the U.S. media, thanks to this 2014] proud,” he added. 5-year deal with the Baltimore-based As a reminder, on October 10, 2017, Brice R. Mbodiam company, Joël Embiid becomes the Embiid extended his contract with

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