A Publication of the Political and Economic Section, US Embassy Yaounde, Cameroon SYNDICATED RSS FEED February 2015 Vol. 1 - Issue 1 ……. 1st Quarter, February 2015 Special points of interest: U.S. Cameroon Relations…... Page 2-4 Cameroon Budget 2015 Page 6-7 Cameroon must roar (Oped) Page 12- Oil and Gas Page 119-21 Mining …..Page 12-23 Agriculture Page 25-25 Tourism… Page 22-31 Zoom of Cameroon Infrastruc- ture Projects… Page 34-40 Companies in This Issue Market Woman Inc (USA) P. 13 Ex-Im Bank (USA) P. 17 General Electric (USA) P. 18 “With one of the largest economies in sub-Saharan Africa and a landscape rich in natural resources and biodiversity, Cameroon has the potential to ECC (USA) P. 18 become an economic stalwart and serious regional player.” Ex-Im Bank China (China) P. 18 SHN (Cameroon) P. 20 Ambassador Michael Stephen Hoza Senate Foreign Relations Committee September 24, 2013 Contact: Embassy of the United States, Political and Economic Section, Section Chief: Bianca Menendez │ Deputy: Dr. Derrin Smith Address: 6050 Avenue Rosa Parks, P.o.Box 817 Yaoundé, Cameroon Editor: Mamouda Mbemap http://yaounde.usembassy.gov/political_and_economic_section.html Tel: (+237) 2220-1500 (ext 4491) Fax: Fax: (+237) 2220-1605 Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015 Highlights Cameroon Economic Review—C.E.R. Page 2 Cameroon-U.S. Relations - Brighter Economic Prospects https://www.cameroon-tribune.cm/index.php?option=com_content&view=article&id=83432:cameroon-us-relations-brighter-economic-prospects-&catid=2:economie&Itemid=3 YAOUNDE (Reuters) and aviation. For instance, an American firm, Geovic, is currently in- vesting over 400 billion dollars in mineral development in the East Re- Cameroon 05 Août 2014 By Godlove BAINKONG gion of Cameroon. This is said to be the highest investment by an Amer- ican firm in Sub-Saharan Africa. Other American companies like AES or over 60 years now, the two countries have moved places in Sonel, Coca Cola, and SG Sustainable Oils Cameroon have made and trade and investment, but they could do better. Economic co- continue to leave their mark in Cameroon. Efforts have been underway operation between Cameroon and the USA dates as far back to make the investments reciprocal. For instance, in 2013, International F as 60 years with much to show in terms of mutually-beneficial Multiracial Shared Cultural Organization's CEO, Fanck Weston led a trade, investment and the improvement of the business climate. Although delegation to Cameroon to present America's investment opportunities to statistics show that trade between the two countries over the years has potential investors here. been negative for Cameroon, as it imports more than it exports to USA, the exchanges have however been stable. 60 years of economic cooperation, even though the ratio of gain is not one: one, is time ripe enough to draw a balance sheet, celebrate where Cameroon, reports say, does not figure yet on the list of first ten African need be and strengthen cooperation for more gains. And the first-ever countries that have tapped maximum benefits from the 2000 American U.S.-Africa Summit currently going on in Washington DC is a forum par legislation, the Africa Growth and Opportunity Act (AGOA), owing to excellence to chart the way forward. Fortunately, it is holding on the its inability to produce quantity and quality products highly needed in theme, "Investing for the next generation." And for the future genera- the American markets. Experts say the absence of a regular consultative tions to reap more benefits from the cooperation therefore, there is need framework between the two countries led to the reticence of America to surmount challenges like local processing of products before exports, which would have otherwise facilitated the clearance of certain hinder- improvement of the business climate which has been a persistent con- ances to the smooth flow of goods and services. cern of the Americans and the easing of administrative procedures for investment. In return, the American government could seize the oppor- Reports in 2011, show, an improvement in trade between the two coun- tunity of the rich natural resources and the country's socio-political sta- tries as their volume of trade grew by 26 per cent. Today, there is notice- bility to start business for win-win cooperation. able interest of American companies in Cameroon notably in sectors like Yaounde Embassy Highlights Embassy Yaounde mining, agriculture, telecommunications, hotel management, agriculture Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015 Highlights Cameroon Economic Review—C.E.R. Page 3 Cameroon U.S. Relations: Untapped Opportunities (Source: Original New African, http://www.ipsos.co.ke/NEWBASE_EXPORTS/Tullow%20Kenya% President Paul Biya, Ambassador Hoza, Gregory Thome (Deputy Chief of Mission), John P. Scudi (Defense Attaché). Dr. Charles Morrill (Management ith a strong increase in the volume of bilateral trade over the which remains its main trading partner and it is France's second largest past three years, US exports to Cameroon have now more customer in the Franc Zone, after Cote d’Ivoire, France is Cameroon's than doubled, the number of Cameroonian exporters entering number one supplier, with a market share of 30%. the U.S. market has risen exponentially, and trade relations W However, U.S. private investors in Cameroon are showing increasing between Cameroon and the U.S. are strengthening. Yet there are many interest in the country because it serves as a vital gateway to accessing more untapped opportunities, Cameroon is the largest economy in the not only the regional market of the CEMAC, but also, as a crossroads six-nation Central African Economic and Monetary Community (CEMAC), leading to West, East and Southern Africa, to the entire continent. There with a population of over 19 million. are new opportunities emerging for Cameroon, which is already party to According to U.S. International Trade Commission estimates, the volume strong partnerships with Europe and Asia. of bilateral trade between Cameroon and the U.S. in 2011 increased by VOLUME OF BILATERAL TRADE UP BY 26% 26% compared to 2010. Two-way trade between the two countries was almost $700 million in 2013. 'That is good news, but it could be a lot bet- Trade relations between Cameroon and the U.S. continue to go from ter still. strength to strength and the U.S. and Cameroon governments are work- ing closely towards improving and increasing trade between the two This is precisely the view of the Cameroonian and US governments. To countries. date, Cameroon's strongest trade rela- tions have been with France, Cameroon Economic Review, 1st Quarter, Vol. 1 Issue 1 █ █ █ February 2015 Highlights Cameroon Economic Review—C.E.R. Page 4 ……...Gregory Thome, the deputy chief of mission in the U.S. Embas- emerging economy by 2035. sy in Yaounde said, "There are many other huge untapped opportuni- ties and the Embassy remains on hand to help the Cameroonian peo- BUSINESS OPPORTUNITIES ple to find opportunities through the African Growth and Opportunity Act (AGOA), as well as other available tools." The next AGOA summit Either on the U.S. Chamber of Trade's (AmCham's) initiative, or by is in 2015 [The Summit will be held in Gabon]. Implemented in 2002 national governments' invitation, delegations of U.S. Investors visit during the Clinton Administration, and last renewed in 2004 (although Cameroon under the framework of an exploratory mission that culmi- revised subsequently), this trade agreement allows some African nates in the signing of partnership agreements with the local busi- Source: Agoa.info products in the artisan, textile and agri-food industries to enter U.S. ness community. Gregory Campbell, who led one of these delegations, territories without customs tariffs. Around 40 countries have been summarized that the interest in Cameroon held by U.S. investors is recognized as eligible for AGOA, including Cameroon. Even though explained by the mix of "business opportunities, the dynamism of the Cameroon has not yet seized all the opportunities in this law, the US Cameroonian economy and the institutional and political stability that and the Cameroonians are working on it together. Cameroon enjoys". The first technical workshop on support for businesses trying to pen- New Cameroonian laws provide Incentives to further encourage in- etrate the U.S. market was held in April 2014 in Yaounde. The goal was vestors, and improve the business climate. "We want to facilitate to help local businesses meet U.S. standards in order to get the most investment between the U.S. and Cameroon and ensure that they out of the business opportunities AGOA presents, which is likely to be understand one another," says Eddie Ford Brown, President of the given new impetus in 2015, according to President Obama's wishes. Cameroonian branch of AmCham. Total trade between the U.S. and Furthermore, the AGOA summit next year is to be held in Yaounde. Cameroon has steadily increased, and Cameroon can expect a regu- Cameroon organized a U.S.-Cameroon economic forum in July 2013 in lar increase in U.S. investors in the near future, the AmCham pro- New York. It was a broad marketing campaign aimed at promoting jects. Among the most attractive sectors are infrastructure, agricul- Cameroon's image in the U.S., its strengths and opportunities ture, construction, energy and, above all, mining. (notably in agri-industry, tourism and infrastructure); seeking oppor- tunities for national companies and producers through setting up For example, the bauxite reserves of Minim-Martap are the target for business contacts; and finally, boosting U.S. investments in Came- US investors to invest CFA3,000 bn ($6.2m) according to Janet E.