decentralization contributor to FEICOM, amajor COCOA, COFFEE, BANANA, SOYBEANS, COTTON, WOOD best buyers? Who are Cameroon’s

December 2018-January 2019 / N° 70-71 CAMEROON BUSINESS IN FREE -CANNOT BE SOLD sites AFCON : Visiting construction MAJOR PROJECTS MAJOR AGRICULTURE INDUSTRY SERVICES FINANCE ENERGY MINING BUSINESSIN CAMEROON .COM Daily business news from Cameroon

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Yasmine Bahri-Domon

Decentralization, chapter II begins

As many claim that decision makers intention- relationships between key players have to be ally slow down the decentralization process clearly defined; same goes for skills which are to keep central power, the government of to be transferred. One of the major pillars of Cameroon just accelerated the implementa- decentralization will consist in ensuring that tion of its decentralization program. territorial units easily access financings of development partners and rationally distribute Back in 2004, the foundation stone for “decen- skills and powers between the State, territo- tralization” was laid as the government created rial units and the Special Fund for Municipal the position of minister delegate of the minis- Assistance (Fonds spécial d’équipement et try of Territorial administration, in charge of d’intervention intercommunale - FEICOM). decentralization, and also laws applicable to This partnership must help create new eco- decentralized territorial units and municipali- nomic development poles, for a more balanced ties. Adjusting the decentralization process to distribution of investments across the country, the basis of social and economic development while taking into account development goals took some time. However, on December 12, and challenges specific to each municipality. 2018, during the second ordinary session of Cameroon’s economy is gradually structuring the national decentralization board this year, itself, causing decentralization to rapidly Philémon Yang, Cameroon’s Prime Minister expand. The process will increase the power who chaired the session, announced that of concerned authorities and spur social and concerned authorities have been ordered to economic growth at the base. The main issue speed up the process. in relation to this transformation however is to know if the concerned communities have the This initiative results from a commitment capacities to support businesses, implement made by President Paul Biya, during his strategies to boost training and employment, swearing in last November 6, at the National and also if they can efficiently act on key sec- Assembly. “Appropriate measures will be tors directly impacting the people, for example taken in the shortest time to improve the skills roads, transport, health, land development and of decentralized territorial units hence giving construction of major infrastructures, etc. In them the means to be more autonomous,” the this issue of our magazine, for our readers, we President had then said. In the long run, it is tried to collect as much detail as possible re- expected that decentralization will impact garding these questions, from none other than Cameroon’s economy by fostering coherence the managing director of the FEICOM. Here, and territorial governance and subsequently the head of this institution which is known enabling powers to be shared between the by most as the “bank of municipalities” gives State and decentralized areas. To achieve this, details about challenges to decentralization many challenges must be overcome but first, and progress made in the process so far…

We, the whole staff of Investir au Cameroun and Business in Cameroon, wish you a happy new year, health, prosperity, and many great projects for Cameroon.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 4

CONTENTS

FOCUS FOOT 20 • AfCON project: situational analysis

LEADER OF THE MONTH 66 • Cameroonian Christian Ngan who built a XAF1.2 billion beauty product factory in Cameroon now 08 • Cameroon’s leading trade partners on eyes West African market the cash crops segment 09 • Cameroon has entered more than 10 new BUSINESS IN CAMEROON international coffee markets, since 2015 Publisher 10 • Côte d’Ivoire, Cameroon’s biggest rival in terms Stratline Limited of banana exports to the European Union Publication Director Yasmine BAHRI-DOMON 11 • Despite Netherlands remaining its largest Contributors buyer, Cameroon’s cocoa exports to China Brice R. MBODIAM, Sylvain ANDZONGO, Idriss LINGE.

soared 113% in 2013 Operator Médiamania Sàrl 11 • Cameroon’s cotton exports to China on the rise www.mediamania.pro Design : Jérémie FLAUX, Web : Christian ZANARDI, 12 • Local soybeans processing industry in difficulty Translation : Schadrac AKINOCHO due to exports to Nigeria Advertisement 13 •  [email protected] European Union and China battle for In Cameroon Cameroon’s wood Albert MASSIMB, [email protected] Tel : 00 237 694 66 94 59 INTERVIEW Printing Rotimpres, Aiguaviva, Espagne 14 •  Philippe Camille Akoa : Office - Distribution Cameroon “The FEICOM is more Albert MASSIMB, [email protected] than ever engaged in Tel : 00 237 694 66 94 59 the development of the Free – cannot be sold local production sector” www.businessincameroon.com - [email protected]

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 5

NEWS IN BRIEF

PUBLIC MANAGEMENT P 26-35 INDUSTRY P 49-50

FINANCE P 36-38 MINING P 51

AGRIBUSINESS P 39-40 TRANSPORTATION P 52-56

ENERGY P 41-46 COMMERCE P 57-58

INFRASTRUCTURE P 47-48 ITC & TELECOM P 59-60 WWW.STOPBLABLACAM.COM Rumours, preconceived notions, clichés, superstitions, urban legend: What is real? What is fake? P 61-65

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 6

COMPANY OF THE MONTH

Swiss Sika pumps over CFA1bn in a production unit in Douala

and Africa (EMEA). According to the latter, Sika Group achieved “a record result in 2018, with a turnover of around 7 billion Swiss francs and now holds more than 100 subsidiaries all over the world”. As a reminder, the company officially announced the opening of its two new branches in Cameroon and Djibouti on August 23, 2016. Thanks to its implementation in Cameroon, Sika contributes to “various con- struction projects of stadiums and accommodation structures, concrete In 2018, Sika Group generated a turnover of about 7 billion Swiss francs and now has more than 100 subsidiaries all over the world. plants and resin floors in several factories [...]”, according to Pedro Lopes, Managing Director of Sika Cameroon. Swiss construction company Sika ing and offers so much potential Sika group is specialized in markets officially inaugurated last December with infrastructures such as dams, such as concrete, waterproofing, 1 its production plant which allowed bridges, ports or residential projects roofing, flooring, sealing and bond- the introduction of 19,700 tons of including shopping stores and ing, refurbishment and industry. products on the market this year, in buildings,” said Ivo Schadler, Sika Douala, the Cameroonian economic manager for Europe, Middle East BRM capital. Next year, the equity-funded facility valued at more than XAF1 billion (80% by Sika AG and 20% by Sika The production capacity of Sika’s plant in Finanz AG), will see its capacity improved to 29,700 tons; this with Douala will increase from 19,700 tons to the announced entry into production of a mortar production unit, manag- 29,700 tons in 2019 with the announced ers said. entry into production of a mortar “We believe that it’s important to be very close to our customers to production unit. better understand and satisfy their needs. Cameroon is very interest-

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 7

One million MONTHLY STATISTICS tons Speaking during a press conference held December 5, in Yaoundé, Jacquis Kemleu Tchabgou, the Secretary General of the national oilseed refiners association (ASCROC), said XAF1.8 billion the rise in investment in the palm oil processing sector China recently donated emergency supplies to Cameroon significantly increased demand for the product, in recent to help residents fleeing combat between the army and years. Actual demand stands at more than 1 million tons, secessionists in the anglophone regions of the Northwest while local supply is just 300,000 tons per annum, a deficit and Southwest. of 700,000 tons. This Chinese assistance aligns with the XAF12-billion “The structural deficit of 130,000 tons that we always men- Humanitarian Emergency Plan launched June 20 this year tion is a nominal deficit which is different from actual deficit. by Cameroon to support the victims of what is known in This nominal deficit is calculated on the basis of 50% of the the country as the anglophone crisis. Started out as a sim- plants’ processing capacity. When we consider real capaci- ple corporatist demand from teachers and lawyers, this ties, the gap is indeed way wider,” said Emmanuel Koulou crisis then turned into violent separatist claims aimed at Ada, Head of the Oilseed Sector Regulatory Committee. separating Cameroon from its two anglophone regions.

90% 2022 Local investors have once again trusted Cameroon during According to its managing director, Johnny Malec, its 2018-2023 bond issue aimed at raising XAF200 billion. Cameroon Oil Transportation Company (Cotco), the com- According to the geographic distribution of underwriters, pany that manages the Chad-Cameroon pipeline, the vol- XAF196.3 billion out of the XAF204 billion overall raised ume of crude oil transported via this pipeline could double during the operation were provided by investors residing by 2022. in Cameroon. This represents more than 90% of the re- Indeed, Chadian oil fields, that produced the 680 million quired XAF200 billion. barrels of crude oil exported via the pipeline since 2003, Official results showed that this operation, which is the have seen the arrival of new operators in recent years; op- fifth organised by Cameroon since 2011, has been ignored erators who should boost oil production. by foreign investors. Chadian investors provided just over Moreover, although the project was not much evoked in XAF4 billion while Equatorial Guineans brought XAF2.2 recent months, Niger’s authorities have not abandoned the billion and Central Africans subscribed XAF1.275 billion. idea of building a pipeline linked to the Chad-Cameroon Meanwhile, Congolese investors granted XAF450 million oil pipeline in order to export Nigerien crude oil via the and France gave only XAF1.6 million. seaside resort of Kribi, southern region of Cameroon.

57 workers 10% Cameroonian minister of employment and vocational The national rail company Camrail, managed by the training, Zacharie Perevet, has just rejected the “validation Bolloré group, announces it dedicates about 10% of its an- of employment contracts for Viettel Cameroon’s Vietnamese nual health spending to combat AIDS; a disease that still employees”, a mobile phone company operating under the affects Cameroonian population in general and the corpo- name Nexttel. rate world in particular. This decision, the minister says, lies in the fact that some On December 1st 2018, which is the world AIDS day, the of the 57 employees concerned “hold temporary visas”, and company closed a vast awareness raising and free testing Cameroonian regulations stipulate that “any employment campaign for employees and their relatives, subcontrac- contract of a foreigner residing in Cameroon with a tempo- tors and surrounding populations, official sources reveal. rary or tourist visa, is automatically rejected”. As well, he Activities were coordinated by the anti-AIDS department suggests Nexttel’s top management to “stop all professional set by Camrail since 2003, two years before the company relations with the persons concerned, in case they have al- became a partner of the national anti-AIDS committee ready started working”. in 2005.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 8 FOCUS

Cameroon’s leading trade partners on the cash crops segment

Much like Africa, Cameroon is still a minor player in the global trade. However, many of its cash crops, mostly exported in their raw form, weight in the economy of certain developed countries. Based on their importance and bilateral partnership with the country, there are China, France and Italy, according to a ranking presented by the finance minister Louis Paul Motazé, in November 2018, while presenting the 2019 Finance Act in front of the parliament. Louis Paul Motazé says China- Cameroon trade significantly grew in recent years, with the Middle Kingdom alone now capturing 15.2% of aggregate volume of Cameroon’s foreign trade. Yet, Cameroon’s first trade partner remains the European Union (EU), with 39.7% of this volume. Let’s note that the Central African country now exports cash crops all over the world; sometimes in the most unlikely regions, showing local producers’ desire to broaden their reach. Which countries import Cameroonian products and what specific products do they purchase? That’s the question we will try to answer, by mainly focusing on prod- ucts that contribute the most to the improvement of Cameroon’s trade balance, which has been negative for decades. These products are cocoa, coffee, bananas, wood and cotton. Cocoa, coffee, banana, wood and cotton are the main exports products that attract investors… Brice R. Mbodiam

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 FOCUS 9

Cameroon has entered more than 10 new international coffee markets, since 2015

At the end of the 2016-2017 campaign, Cameroon entered nine new international markets.

Although the Cameroonian coffee Croatian and Indonesian buyers. The Valorization of Agricultural Products suffers from decline marked by an largest share (77.8%) however was (AVPA), Cameroon won 5 out of 9 uneven production growth and a shipped to Russia (27.6%), Germany prizes. strong downturn over the past five (25.7%), the United States (13.1%) In detail, Cameroon’s focal associa- years, it is still attractive to consum- and Indonesia (11.4%). tion of western agricultural cooper- ers around the world. As proof to Back in the 2014-15 season, the atives (UCCA) received the gourmet this, at the end of the 2016-17 season, Cocoa-Coffee Interprofessional prize for its “Force 2” coffee brand, in in addition to the traditional export Council (CICC), had already present- the “powerful sweet” category, and destinations, Cameroon succeeded ed, in its campaign synoptic report, the gold medal for its “Café Délice” in entering nine new international China, Holland and Malaysia as “the brand in the “powerful aromatic” markets, the National Cocoa and new destinations for Cameroonian category. Three other Cameroonian Coffee Board (ONCC) informed. Arabica coffee”. roasters including the “Constant In ONCC’s report, 72% of the Robusta According to coffee experts, this Ngako” brand which competed in output was spread between Algeria attractiveness of the Cameroonian the “powerful bitter” category, and (25.5%), Portugal (22.9%), Italy coffee lies in its unique taste and the “Ménage à deux” brand in the (13.2%) and the USA (10.4%). This aroma; a particularity that won it “powerful” category, all won Medals variety also went to six new mar- awards during major international of Honor. Gabonese and Ivorian kets including Denmark, Georgia, roasters’ competitions. For instance, roasters won 2 awards while their the Netherlands, Poland and on April 4, 2018, during the 4th Togolese counterparts also received Turkey. During the same campaign, edition of Awards des cafés torréfiés 2 medals. Cameroon sold, for the first time, à l’origine, an annual event organ- its Arabica variety to Polish, Swiss, ized in France by the Agency for the

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 10 FOCUS

Côte d’Ivoire, Cameroon’s biggest rival in terms of banana exports to the European Union

Cameroonian dessert banana However, the arrival of two new com- after oil which accounts for more growers exported 249,610 tons of panies, namely Société ivoiro-antil- than 40% of total exports, and timber the product to the European Union laise de production agricole (Siapa) (logs and sawn) that represents (EU) in 2016, the national banana and Bananes Antilles-Côte d’Ivoire about 15% of exports. This situation association (Assobacam) informed. (Banaci) in Côte d’Ivoire in 2016, has changed considerably since 2016, According to statistics from the revived the sector and boosted out- when the Anglophone crisis broke national port authority (APN), this put to 280,000 tons, Commodafrica out in the southwest and northwest represents a 30,000 tons compared to revealed. This volume exceeds regions; a socio-political tension the 279,493 tons shipped in 2015. Cameroon’s output by 30,000 tons. that has significantly hampered the Due to this, Cameroon dropped to During the period under review, activities of CDC, Cameroon’s second the second place in the ranking of Société des Plantations du Haut largest banana producer. EU’s African dessert banana sup- Penja (PHP), Cameroonian unit of According to a report issued by the pliers, after a short-lived first place Marseille fruit company, remained inter-employers’ group of Cameroon

Cameroon has become the 2nd African supplier of dessert banana to the European Union after a short-lived first place grabbed from Côte d’Ivoire in 2015.

grabbed from Côte d’Ivoire in 2015. the country’s largest dessert banana (Gicam), some of CDC’s production That year, the West African country, exporter with 124,875 tons shipped, sites have become training camps for the continent’s leading banana pro- Assobacam said. Meanwhile, the armed secessionists, causing workers ducer for years with an average annu- second largest exporter, Cameroon to flee. As a result, Cameroon al production of nearly 300,000 tons, Development Corporation (CDC), Development Corporation (CDC) saw its output fall to 254,000 tons shipped 113,574 tons and the minor witnessed a drastic drop in the due to heavy rains that caused the player Boh Plantations shipped production, and consequently, overflow of Agneby River, flooding 11,161 tons. Cameroonian exports plummeted 1,300 hectares of banana plantations Until two years ago, banana was considerably. between 28 and 30 June 2014. Cameroon’s third largest export item,

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 FOCUS 11

Despite Netherlands remaining its largest buyer, Cameroon’s cocoa exports to China soared 113% in 2013

In 2013, Cameroon exported 2,605 That year, Chinese cocoa imports 2014 campaign according to official tons of cocoa to China, a volume were mainly from Ghana (22,000 figures. up by 113% compared to what it tons, +89% compared to 2012 vol- By the way, Cameroon’s cocoa ship- exported to that same country in ume), Indonesia (8,953 tons, +32%), ments to the Netherlands rose during 2012, according to Commodafrica. Côte d’Ivoire (7,331 tons, +89%) the 2016-2017 campaign to reach So, that year, Cameroon supplied and Cameroon. In view of those 68% of national production, way about 5.3% of China’s cocoa imports figures, China is still a small client ahead of other destinations such as estimated at 48,943 tons (up by 45% for Cameroon’s cocoa, far behind Indonesia (13.5%), Belgium (10.6%) compared to the volume imported the Netherlands, which was the and Malaysia (8.7%). by that country during the previous destination of 65.7% of Cameroon’s campaign). cocoa production during the 2013-

Cameroon’s cotton exports to China on the rise While cotton exports from Benin (-75.3%), Burkina Faso (-82.3%), Côte d’Ivoire (-18.08%), Mali (-22.5%), Togo (-42%) and Chad (-5%) to Chinese markets have decreased between January and October 2015, those from Cameroon rather experienced a 17.6% rise to reach 35,094 tons. Hence, Cameroon was the sixth cotton exporter to China during the period, behind the United States of America (500,837 tons), India (189,810 tons), Australia (175,793 tons), Uzbekistan (122,626 tons) and Brazil (85, 212 tons). The largest volume of cotton exported by Cameroon to China was shipped in October 2015 and, it was 5,034 tons (against 2,496 tons for the United States of America), representing a 99% increase on The largest volume of cotton exported by Cameroon to China was shipped in October 2015 and, it was 5,034 tons. a year-to-year basis.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 12 FOCUS

Local soybeans processing industry in difficulty due to exports to Nigeria

Local processors are requiring the government’s help.

During a visit in oilseeds production firm to get raw soybeans for process- provide them inputs, they do not hes- basins, Yves Kollo Atangana, manag- ing due to their exports to Nigeria. itate to sell their output to Nigerian ing director of Soyobeans Processing According to the official, despite the buyers who scour Cameroonian Industry of Cameroon (Soproicam), investments realised by this agro-in- markets, offering more attractive denounced difficulties faced by the dustry to support producers and prices. “It is a good thing for the farmer but, the country is losing money. Soybeans must be processed; the local market Nigerian buyers who scour Cameroonian needs it. The government wants to markets offer prices more attractive than promote breeding and to do so, soy meal, which is greatly used in feeding those offered by Soproicam. livestock, is needed”, said Yves Kollo Atangana who required the govern- ment’s help in tackling the problem.

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 FOCUS 13

European Union and China battle for Cameroon’s wood depend on it for some activities. Indeed, talking on November 6, 2018 in Yokohama, Japan, during a yearly meeting on the global wood market, Eric de Munck, director of Centrum Hout, revealed that Cameroon and Gabon “play a par- ticularly important role in the supply of long-lasting hardwood for civil engineering works” in his country. However, according to NGOs, since the enforcement of the FLEGT agreement known as more stringent about the traceability of woods entering into the European Union, this part of the world is increasingly deprived of woods from Cameroon for the benefit of China where conditions for timber trade are deemed more flexible. For instance, during the first eight months of 2018, wood exporters operating in Cameroon unloaded 135,491 m3 of wood at Cameroon’s sawn wood exports to the European Union were particularly dynamic in the third Zhangjiagang port in China, ac- quarter of 2018. cording to figures published by the ITTO, which cites Chinese customs’ sources. The financial value of the volume Cameroon’s sawn wood exports to tons), Gabon (+19% to 70,800 exported by Cameroonian wood the European Union were particu- tons), Congo (+6% to 34,800 tons), exporters during that period is larly dynamic in the third quarter Indonesia (+82% to 12,700 tons), estimated at $47.3 million, a little of 2018, according to a report on Ghana (+8% to 11,000 tons), DRC more than XAF27 billion. During the global wood market published (+7% to 9,700 tons) and Myanmar the period under review, Chinese by the International Tropical (+64% to 6,900 tons) were not equal customs reveal, Cameroon was Timber Organization (ITTO). “A to Cameroon’s shipments by the the fourth exporter of wood to significant amount of tropical sawn end of September 2018. China, behind Papua New Guinea wood arrived into the EU from Cameroonian wood is all the more (1.51 million m3), Solomon Island Cameroon in the third quarter of strategic for the European Union (1.07 million m3) and Equatorial 2018, taking the total import from that some countries in the union Guinea. that country in the first nine months to 186,500 MT, almost exactly equiv- alent to the same period in 2017”, Cameroonian wood is all the more revealed the ITTO whose figures confirms Cameroon’s leadership in strategic for the European Union since the market. Indeed, it is revealed that though some countries in the union, such as they are higher on a year-to-year the Netherlands, depend on it for some basis, the exports of other coun- tries such as Malaysia (+14% to activities. 81,600 tons), Brazil (+20% to 73,700

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 14 INTERVIEW

Philippe Camille Akoa : “The FEICOM is more than ever engaged in the development of the local production sector”

In the present interview, this trained magistrate who heads the Special Fund for Inter-Municipal Intervention and Equipment (FEICOM) provides details about the operations and missions of what most known as the “Bank of Cameroonian municipalities”.

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 INTERVIEW 15

Business in Cameroon: The porate tax and the value added tax trusting the task to the FEICOM Special Fund for Inter-Municipal (VAT). In our country, they are levied while the bank was already in charge Intervention and Equipment since 1952, in various ways. Until of financing municipal projects. (FEICOM) is often called the bank recently, each municipality could This way, all municipalities could, of Cameroonian municipalities, receive surchages collected across in addition to their own resources, since it collects and redistributes its fiscal territory, in accordance have access to resources gathered by municipal surcharges but what are with the laws in place. This system the State as well as to the FEICOM’s actually municipal surcharges? which had been in place for long has funds, more easily. Philippe Camille Akoa: First, I would however shown some shortcomings like to emphasize that in Cameroon, as it was big cities, knowingly Douala Business in Cameroon: What are and everywhere else, decentraliza- and Yaoundé which are respectively the criteria determining how mu- tion involves a transfer of skills and the economic and political capitals, nicipal surcharges are shared and resources to decentralized territorial that received most of the surcharges, what is the distribution grid for all units. To ensure that these skills are about 75% to be exact. The left-over of the country’s municipalities ? well exploited, Cameroon’s justice then went to other municipalities. To Philippe Camille Akoa: Mostly, the surchages are distributed based on demographic attributes. The most populated municipalities which are supposed to require the most for their populations, in terms of basic social services, are the ones to get the most resources. Let me however emphasize that even before proceeding to the distribution based on the above-mentioned criterium, 10% often goes to the State, to cover collection and recovery costs, 20% goes to FEICOM for its functionning and own investments, and the last 70% goes to municipalities. Of the portion (70%) allocated to municipalities, 40% or 28% of total municipal surcharges is levied for the town hosting the taxed firm. It is the remaining 42% that is pooled at the FEICOM and later redistributed to the country’s 360 municipalities and 14 urban communities, based “The uniqueness of the Cameroonian model is with no doubt the FEICOM, an institution whose funds are on demographic attributes. Out mainly raised internally and transfered to loacl communities via an equalization scheme that mixes equity, solidarity and sustainability.” of the pooled remainder, more is levied. This includes a 3% minimal deferred levy applied for the benefit of municipalities that produce some made plans for financial resources, to correct this “injustice, foster national goods, services or riches, but pay tax be provided either as endowments or solidarity and inter-regional balance, and duties outside their territory. By a tax transfer, or both. Now, back to th State decided to introduce under applying this deferred levy, public your question, municipal surcharges the 1993/1994 law of finances a authorities wanted to resolve an fall under the tax transfer category system that centralizes munipical injustice that these municipalities and they are transferred to decentral- surcharges and redistributes them suffered from. Indeed, though they ized territorial units. In effect, there to the various beneficiaries, which host firms generating municipal are an additional tax percentage are the State itself, FEICOM and surcharges, they do not profit from levied with the government’s approv- municipalities. deductions at the base due to the fact al for the benefit of the people. This At the time, this task, pooling and that these firms’ social headquarters system is not exclusive to Cameroon redistributing municipal surcharges, are located in other places. and is used in other parts of the was performed by the Treasury. Also, the government established world, like Japan, France, Belgium, However, once again, this system has another 4% levy for border or disas- Denmark, Italy or Switzerland. also quickly shown its limitations. ter-striken communities. Since 2011, In Cameroon, municipal surchages Hence, to proceed more efficiently, under the system of distribution represent 10% of some taxes such the State decided on August 12, 1998, municipal surcharges, authorities as the general income tax formerly date at which the Prime Minister introduced a new principle that known as the income tax, the cor- signed the decree n°98/263/PM takes into account demographic

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 16 INTERVIEW

inequalities, since they penalize the necessary to think of new ways to European Union and the KfW €28 least populated areas. A 20% minimal raise funds. However, while fund- million for a program that aims at levy is deduced on all funds to be raising on financial markets is very ensuring socio-economic develop- distributed and shared equally to all well regulated, by rules set by the ment of secondary towns exposed to municipalities and urban communi- Central African Banking Commission instability factors (PRODESV). ties. Only the remainder is distribut- (COBAC), the FEICOM is not legally In terms of local support, Crédit ed based on the size of communities. a bank, even though is it called by Foncier du Cameroun (CFC) pro- Truth is, Cameroon’s equalization most the “bank of municipalities”. vided the FEICOM a CFA10 billion payments are quite complex but As a result, it cannot raise funds on credit line to develop social housing original. financial markets. This institution via the municipal city construction was established to be “more humane” program (PCCM). All these are ex- Business in Cameroon: Beside or “social” than traditional lenders. amples showing efforts made to help municipal surcharges, what Regardless, after the introduction of the FEICOM have access to more other sources are used to finance the decree 2006/182 of May 31, 2006, resources to fund local development. FEICOM’s operations ? which amends and complete some However, concerning fundraising on Philippe Camille Akoa: Beside measures of the decree 2000/365, the financial markets, we should wait municipal surcharges that represent FEICOM has been enabled to seek for the institution’s reform, in line almost 85% of the FEICOM’s resourc- and manage national and interna- with the law N°2017/010 of July 12, es, the entity gets 20% of permits and tional resources reserved for commu- 2017 on the general statute of public licenses fees; of real property tax ; nity projects. For example, the institutions. property transfer fees (lease) ; prop- African Development Bank (AfDB) erty transfer fees (sale) and parking has provided the institution a CFA3.5 Business in Cameroon: Overall, charge. The FEICOM can also borrow billion grant to finance drinking wa- most of the FEICOM’s actions are or benefit from gifts and bequests, ter supply and sanitization programs focused on building socio-eco- as well as from resources yielded in semi-urban (PAEPA-MSU) and nomic infrastructures (markets, through national and international rural zones (PAEPA-MRU). bus stations, land development, cooperation that are dedicated to Additionally, subsequent to an etc.) but only a few are carried out local development. institutional audit conducted in in the productive sector. What explains this ? Philippe Camille Akoa: Since 2007, “The FEICOM wished to change how the FEICOM has obtained various types of funding tools to improve it is perceived by people, a company its actions near populations. Under that only finances infrastructures, and the intervention code (CIF) that the institution equipped itself with, make sure it truly is seen as a promoter financial support covers five major categories of municipal projects. of development that helps communities These include social projects (roads organize and structure economic actors and bridges, infrastructures to supply clean water, electrification, schools, and sectors.” health centers), providing collective facilities for institutional support in local communities (townships, town- 2011 and financed by the KfW and ship facilities or other administrative Business in Cameroon: the French Development Agency facilities), providing utility equip- Considering how enormous the (AFD) ; an audit that concluded that ment (liaison vehicles, trucks, public needs of Cameroon’s municipal- FEICOM met necessary condi- transport and agricultural machin- ities are, will the FEICOM pos- tions to act as an intermediate for ery), developing commercial projects sibly raise funds on the capitals loan and grant provision, the KfW and/or wealth-generating projects market (which lacks dynamism provided the institution €15 million (markets, bus stations, guesthouses, in Cameroon and Central (CFA10 billion) as funding for its slaughterhouses, municipal housing, Africa), to boost its activities in decentralization program in medi- allotments, agro-processing units, municipalities ? um-size towns (PDFVM). In detail, municipal forests, stake acquisition Philippe Camille Akoa: It is true that this program focuses on financing in firms’ capitals), providing oper- FEICOM’s resources often reveal revenue-generating projects in 12 ating loans and grants (loans to pay too insufficient compared to the municipalities. Beside this funding, wage arrears or arrears on power populations’ needs. This is why it is the FEICOM also received from the bills, payment of counterpart funds,

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 INTERVIEW 17

“Enabling the FEICOM to pool together all municipal surcharges ensured that all municipalities could, in addition to their own resources, have access to resources gathered by the State as well as to the FEICOM’s funds, more easily.”

State financing, among others). stake acquisition in firms’ capitals, develop a program that would foster Financing commercial equipment etc. With the support of the German the development of local economy. and lucrative projects are indeed cooperation, this tool is currently I would like to thank some of our funded by the FEICOM. Projects being reviewed. Also, since 2014, the partners for the interest they have falling under this category aim to FEICOM has launched “Métropole”, shown; but also our technical team, boost productive sector, promote another tool that provides treasury concerned ministry departments, local growth and employment. In facilities to communities to develop for contributing to the development response to the needs of the popu- economically-viable projects. of this program. You understand lations and in line with standards Yet, the FEICOM plans to go even very well that that the partnership of the quality management system further. Indeed, in December 2017, a with the ministry of SMEs, Social (SMQ) to which it has adhered since division in charge of studies and local Economy and Craftsmanship 2009, the FEICOM has put in place prospection was established to put in (MINPMEESA) will be valorized other financing tools to boost wealth place socio-economic development under this program. To put it bluntly, creation and local economies; with programs. By doing this, the FEICOM the FEICOM is more than ever en- as a main goal to meet both the de- wished to change how it is perceived gaged in the development of the local mand and align with the Growth and by people, a company that only production sector. Employment Strategic Document finances infrastructures, and make (DSCE). sure it truly is seen as a promoter of Business in Cameroon: A few Similarly, since 2009, a specific in- development that helps communities years ago, the FEICOM and others vestment framework was established organize/structure economic actors financed municipal assets in for urban communities and high-po- and sectors. This also involves creat- the Eastern region, as part of tential municipalities (CAPIC). This ing synergies with these players, civil an agro-industral sugar project tool is used to finance projects that society organizations and support in Batouri ; a project developed can enhance growth, such as the the structuring of groups of econom- by Justin Sugar Mills. While this construction of commercial spaces ic interest (GIE), etc. specific project did not have an and processing units, quarrying, To this end, the FEICOM decided to happy end, isn’t that the kind of

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 18 INTERVIEW

projects that the FEICOM should such a project. A few years back, mu- tive board. I would indicate that invest more in to really improve nicipalities of Moungo, in the coastal Cameroon’s equalization payments living standards of people in region, reached out to the institution and community financing model, municipalities? for a stake acquisition in the share- which focuses on tax transfers Philippe Camille Akoa: As I told holding of Société camerounaise de and endowements, interess some you earlier, the FEICOM has put in palmeraies (Socapalm). partnering institutions. However, place an investment framework in what makes the FEICOM’s model so high-potential municipalities, exactly Business in Cameroon: For some original is the fact that it is a mix of because it believes that such initia- years now, various institutions in equity, solidarity and sustainability. tives are necessary for local growth. charge of financing local commu- In a study carried out by the German Unfortunately, beyond maturation nities in other African countries cooperation on African local commu- issues, municipal councilors are not have been visiting the FEICOM to nity financing institutions, it was much interested by such projects learn from its experience. What revealed that the public institutions due to their complexity and related are the particularities of the have distinct statuses, missions and financing conditions and terms. municipality financing model in intervention mechanisms and all Usually, FEICOM’s investments in Cameroon ? their activities must be understood such projects are loans, fully repay- Philippe Camille Akoa: Indeed, many depending on the institutional con- text of the State that created them.

Business in Cameroon: What “FEICOM’s financial support covers five are the main challenges that the major categories of municipal projects. FEICOM faces while carrying its missions ? What should be done to These include social projects, providing overcome those? Philippe Camille Akoa: Since its collective facilities for institutional support restructuring in 2006, the govern- in local communities, providing utility ment has put a lot of efforts into the development and good functionning equipment, developing commercial of the FEICOM. Means provided to this institution to carry out its projects and/or wealth-generating projects activities were sufficiently increased and, providing operating loans and grants.” and the government pays more attention to it. However, there are some delays in the provision of resources to municipalities and firms able. Truth is, the councilors often institutions financing local commu- developing projects that are financed prefer social projects that benefit nities have visited the FEICOM in the by the FEICOM, due to its return from an 85% subsidy. I would also past six years, as part of study and to the treasury’s single account. To emphasize that such projects, to be experience-sharing trips. It would be tackle this issue, the minister of sustainable, require quite a strict presumptuous of me to affirm that finances has put in place a treasury management. these institutions came to learn. The committee. The FEICOM is part of Concerning the Justin Sugar Mills visits were more like meetings for an this committee. project that you mentioned, both exchange of good practices in line Another challenge is misunder- the populations and municipal with specific missions led by the for- standings between the FEICOM and councilors expected a lot from it, eign institutions. In fact, the FEICOM municipalities, especially during especially in terms of value creation itself had to carry out study trips payment of municipal surcharges. in the Eastern region. The FEICOM to Morocco, Senegal, Mali, Burkina Actually, some councilors often believed in this project which was a Faso, South Africa, France and often contest deductions made in the good example of inter-municipality Kenya, at the headquarters of the framework of the repayment of loans to boost local growth and employ- United Nations Agency for Human contracted. Finally, there are some ment. I think municipalities should Settlement (UN-Habitat). issues in the development of local engage more in such initiatives, but Most of the above-mentionned visits projects which impacts the con- first appropriate preliminary studies were facilitated by the Network of sumption of the budget dedicated to should be conducted. Sadly, this African Local Community Financing municipal investments. To overcome step is still considered as optional by Institutions (RIAFCO) which was all these challenges, a reform of the relevant actors. This is not the first created by the FEICOM, one of its treasury’s single account could help. time that the FEICOM has backed member and head of its execu- Additionnally, the capacities of hu-

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 INTERVIEW 19

“Concerning the Justin Sugar Mills project that you mentioned, both the populations and municipal councilors expected a lot from it, especially in terms of value creation in the Eastern region.”

man resources across decentralized still firmly believe that the FEICOM quality management system, pro- territorial units could be reinforced. has a major role to play in the gram-based budgeting, processing acceleration of decentralization customers’ complaints, improving Business in Cameroon: Given the prescribed by the President. The risk management, conducting pro- greater focus on a rapid decen- State could soon trust some of the spective studies, establishing a local tralization, how do you foresee the new missions falling in line with this development observatory, etc. All FEICOM’s future ? objective to the institution. Beside, a these allow the institution to be more Philippe Camille Akoa: The FEICOM short-term reform of the institution performant and be better informed was created to ensure a harmonious is planned to make it the effective towards developing an intervention and balanced local development, in secular arm of the State, for the strategy that fits decentralization’s the framework of decentralization. successful realization of the decen- new needs. Taking all these into Meanwhile, decentralization only has tralization process. consideration, I would say that the meaning if decentralized territorial Other actions initiated by the institution has quite a bright future units perfectly fulfill their mission, FEICOM will continue. These include ahead of it. knowingly improving populations’ the reform of its accountability, user living standards and environment. I satisfaction surveys regarding its Interview by Brice R. Mbodiam

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 20 AFCON

AfCON project: situational analysis

Last November 30th, Cameroon was dealt a heavy blow as the CAF decided to from the country the organization of AfCON 2019.

This is in a context where it had for long been paying the efforts to build the necessary infrastructures required to cost of conflicts and displacement of populations, in the host the major African football event; Efforts that failed to north striken by attacks from Boko Haram terrorists, in please the CAF apparently. the east by expanding conflicts in the Central African Republic and in the west with the armed rebellion of Here is a review of work progress at the time the CAF Anglophone separatists. decision came out, in the hope that the nation’s efforts are Amid these challenges, Cameroon still made significant finally recognized and rewarded as they should.

STADE OLEMBE

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 AFCON 21

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 22 AFCON

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 AFCON 23

STADE JAPOMA

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 24 AFCON

STADE DE LA RÉUNIFICATION

STADE DE BAFOUSSAM

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 AFCON 25

STADE MBAPPE LEPPE

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 26 PUBLIC MANAGEMENT Government facilitated the creation of 437,653 new jobs in 2018 Presenting the government’s economic, financial, social and cultural program for 2019 before the parliament on November 21, Prime Minister Philemon Yang reported that the state pulled efforts to pro- mote decent employment by creating 437,653 new jobs in the modern sector of the economy. “This performance was achieved thanks to the many opportunities offered through various recruitments in the civil service, defense and decided by the President of the worksites, including those of the 2019 security forces, and decentralized local Republic. African Cup of Nations,” Mr. Yang authorities,” the Prime Minister said. “The promotion of decent work has concluded. In addition, Mr. Yang pointed out, the also benefited from the combined However, compared with the 473,303 feat was motivated by the implemen- action of government programs and jobs created in 2017 (according to tation of the three-year Emergency projects, as well as the workforce President Paul Biya), the figure is Plan to Accelerate Economic Growth monitoring in various major public down 35,650 jobs.

Medcem, Perenco, Sogea, BVS, Buns,... suspended from customs activities for non-payment of taxes and default interest owed to the Treasury Fongod Edwin Nuvaga, the Managing Medcem, the oil company Perenco muniqué signed November 4 by the Director of Cameroonian customs, Rio del Rey, the construction Customs MD and the Taxation MD, signed December 5 two memos specialist Sogea Satom SAS, the Modeste Mopa Fatoing. On that date, suspending a total of 59 companies brewer BVS SAS, the company Buns, the two officials publicly announced from customs duty. Health and Hygiene Cameroon the entry into force of a new proce- “The administration and users are in- (Hysacam), SARL Green Oil, dure for the recovery of tax debts formed that as of the date of this mem- Maersk Cameroon, Sugar Company from customs collectors. orandum, the following companies are of Cameroon (Sosucam, subsidiary To this end, Mr. Fongod and Mr. suspended from all customs activities of Somdiaa), Global Petroleum, Mopa invited importers who were for non-payment of duties, customs the state printer, Egis Cameroon, in debt to regularize their situation taxes and default interest owed to the Cameroon Oil Company, Northwave and avoid any inconvenience when public treasury,” Mr. Fongod wrote. Sarl, etc. importing their goods. Both MDs Are listed major companies such These decisions by the customs have now moved on to the repressive as the cement manufacturer administration follow a joint com- phase.

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019

28 PUBLIC MANAGEMENT

Women take control of two public institutions in Cameroon (2004-2017), then deputy director Committee and Effectiveness of of the same company for one year Public Company Boards in Africa”, (December 2017-December 2018), Judith Yah Sunday replaces David the lady thus becomes the very Nkoto Emane who served 14 years as first woman to hold the position of head of this state-owned company. Managing Director of an oil company Mrs. Judith took control of a com- of this size in Cameroon. pany in serious financial difficulties This accountant by training takes (heavy indebtedness, non-payment control of a company that has been of various social benefits to employ- involved in a program to broaden ees for years, cash flow tensions...), its storage capacity for several years which has only managed to pay the now, and which generated a net salaries of its employees, several profit of XAF536.18 million in 2017. times, thanks to regular financial On a daily basis, SCDP contributes supports from the State, its sole to supplying oil and gas products to shareholder. a network of service stations, which This bad situation is the result of mis- grew from 287 at the end of 2000 to management coupled with manage- Recently, Deputy Director of the 742 operational outlets in 2017. rial orthodoxy, as proved by reports Hydrocarbon Price Stabilization On the same date of December 14, prepared in 2016 by two institutions Fund (CSPH), Ms. Moampea Mbio President Paul Biya signed a decree namely the Superior State Audit Manzoua Véronique (photo) was appointing Judith Yah Sunday as the and the National Anti-Corruption appointed, last December 14, as Managing Director of Cameroon Commission (Conac). the new Managing Director of Telecommunications (Camtel), Results from the audit of Camtel’s mixed-capital Cameroonian Oil the country’s incumbent telecom management over the period 2010- Deposit Corporation (SCDP), operator. 2015, have led to a ban on the depar- specialized in hydrocarbon storage. A senior executive at Camtel for ture of about ten Camtel executives This followed a board meeting of the nearly two decades, an expert in from Cameroon since March 2018, company. governance and development of including the now former MD and First, head of the oil exploitation public companies and the author his deputy, Richard Maga, who was department at the CSPH for 13 years of a doctoral thesis themed “Audit also dismissed on 14 December 2018.

President Paul Biya appoints 32-year-old Pierre Bertrand Soumbou Angoula as new MD of ENAM Through a presidential decree a contractual administrative officer which there were young elites in December 14, Cameroonian pres- assigned to the Ministry of Finance decision-making positions with an ident Paul Biya appoints Pierre and then to the Presidency of the average age of 30 years. Bertrand Soumbou Angoula, 32, as Republic. After that, he competed in Mr. Soumbou Angoula will be the new Managing Director of the the Enam competition, unsuccessful assisted by Mr. Harouna, appointed National School of Administration for the first time, before succeeding the same day, as Deputy Managing and Magistracy (Enam), one of the the following year. Upon his gradua- Director. Let’s mention that the new country’s most prestigious schools tion, he was assigned to the Chamber Enam-MD replaces Linus Toussaint that trains the administrative and of Accounts in 2017. Mendjana, appointed in March 2012 judicial elite. His appointment reminds of the who recently stepped down. The new manager is from the 2014- aftermath of independence in 2016 class of magistracy. He was first 1960 in Cameroon, a period during

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 PUBLIC MANAGEMENT 29

The announced bridge over Ntem River linking Cameroon and Equatorial Guinea to soon be erected

Cameroonian Minister Delegate of Public Works, Housing and Urban to be constructed on the basis of for economy Paul Tasong (photo), Planning. the results of the preliminary study chaired December 14 in Kribi, pres- Once completed, the Cameroonian and proposals of the Joint Technical entation of the results of the feasi- Minister Paul Tasong said, the facility Committee for project monitoring. bility study carried out to construct will “strengthen and increase traffic Let’s note that the African a bridge over the Ntem River, on of people and goods between the two Development Bank (AfDB) has the Kribi-Campo (Cameroon)-Bata States, ease and promote trade, and agreed in principle to provide XAF2 (Equatorial Guinea) corridor. finally ensure the safe crossing of the billion for this project, since 2013. The Equatorial Guinean side was river”. Also, in 2016, a contract was signed represented by Baltasar Engonga The two countries agreed on a meet- with the ECTA BTP/Tractebel con- Edjo’o, Minister in charge of Regional ing in Douala, the economic capital sortium for the technical study. Integration, and Reginaldo Asu of Cameroon, on 1 February 2019, to Mangue, Deputy Minister in charge select the location and type of bridge

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 30 PUBLIC MANAGEMENT

World Bank gives Cameroon $84mln to assist refugees from Nigeria and CAR

Cameroonian Minister of Economy million) will be pumped as additional the healthcare system. A total of $36 (Minepat), Alamine Ousmane Mey, financing into the third phase of million was approved under this signed December 17 in Yaoundé, the National Community Driven component including $30 million as four financing agreements worth $84 Development Program (PNPD a grant and $6 million as a loan. million, or about XAF50.4 billion, III); $40 million as a grant and the Statistics of the UN High with the World Bank. Documents rest ($8 million) is a loan. Commissioner for Refugees were signed by Issa Daw, coordina- Actions to be carried out under the shows that as at October 31, 2018, tor of the sustainable development PNPD III will support local develop- Cameroon housed nearly 372,542 unit, on behalf of the Bretton Woods ment through the financing of infra- refugees; 369,217 of them being from institution. structure sub-projects in education, Nigeria and Central African Republic. Funds, Minister Alamine says, will health, water and sanitation sectors. This high number of refugees in substantially support Cameroon’s It also targets the construction and the country, most of whom stay in response to the humanitarian rehabilitation of rural markets, com- host villages, threatens resources consequences of the strong influx munity storage facilities, rural roads availability and subsequently affects of Nigerian and Central African and small irrigated areas. the living conditions of local popu- Republic refugees following military The other part of the World Bank lations, particularly those in the Far and political crises. fund will be used for the project for North, North, Adamaoua and East In detail, part of the money ($48 reinforcement of the performance of regions.

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 PUBLIC MANAGEMENT 31

AfDB grants CFA98bn to partly fund 2018 State budget

Alamine Ousmane Mey, Cameroonian economy minister signed December 3 with Solomane Koné, AfDB’s country manager, a financing agreement relating to the second phase of the compet- itiveness and economic growth support program (Pacce II). This agreement will see the African Development Bank grant Cameroon €150 million, about CFA98.39 billion, to partly finance the 2018 budget. Pacce II is expect- ed to strengthen bases for a rapid, resilient and inclusive economic growth through better public financial management, improved governance and competitiveness of productive sectors (transport, energy and agriculture). So far, AfDB’s investments in Cameroon amount to 1.27 billion Units of Account (UA), about CFA1,000 billion; a sum spread over 24 projects. In 2018 alone, the bank approved five projects valued at UA 221 million (about CFA177 billion) in water and sanitation, agriculture, transport and social development.

In Cameroon, ministries suffer from lack of financial resources, the World Bank notes In its recent report on Cameroon’s and indicators (two to three per to the ministries’ program budgets public expenditure management, the program). However, World Bank said, are incomplete. For example, salary World Bank revealed that the institu- most indicators are not suitable or management remains centralized tional mechanisms to implement the operational. within the program of the finance program-budget approach launched Moreover, the reporting chains are ministry. However, an Integrated in 2013 is still far from achieving not transparent and reliable enough System for the Management of the expected results. to inform the program manager in Personnel and Payroll (Sigipes II) According to the report, since 2013, due time and allow him to adjust has been developed to improve the the Parliament has approved each implementation. In some cases, the management and transparency of year a program-centered 3-year programs and activities do meet the payroll costs. However, its deploy- budget for all departments. Each ministries’ missions. ment in line with ministries has not department develops its own pro- Finally, the Bretton Woods institu- yet occurred due to a lack of financial grams (about 3) and sets objectives tion notes that the funds allocated resources.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 32 PUBLIC MANAGEMENT

Cameroon allocates 2 to 4 times more resources to general administration costs than most countries The Cameroonian government comparison) such as Senegal, Kenya the share of general government dedicated an unevenly part of its and Mali spent 6.1% (2014), 9% expenditure in Cameroon’s total budget to general administration (2010) and 10% (2015) of their public expenditure is characteristic of and financial functions compared budgets on this category of expendi- oil-exporting countries, particularly to most comparable countries, the ture respectively, compared to 19% in in the sub-Saharan African region. World Bank said in a recent report Cameroon (2015). Angola, for example, spent 20.4% of on Cameroon’s public spending. “The Armenian government is the total public expenditure on general The Bretton Woods institution said only non-oil exporting country among public services and administration Cameroon granted 2 to 4 times more the countries of comparison whose in 2015. Côte d’Ivoire spent a very resources for general administra- general administration expenses are large share of GDP (36.4%) on general tion and costs than the other oil similar to those of Cameroon,” the and financial public administration exporters. Bank points out. in 2014. For example, countries (in regional However, the report indicates that For the same position, administrative contract workers receive 20 to 30% less pay than civil servants 37% of public servants. However, the bank wrote, although they represent a large share of public service staff, the contract workers do not benefit from “the same level of job security and incentives, since their salaries and bonuses are significantly lower than those of their civil service counterparts”. Also, the state agents benefit from internal training that are not offered to contract agents. In an equivalent position, the latter receive a 20 to 30% lower salary. As a result, according to the World Bank, the survey on personnel man- agement in the Cameroonian civil In 2016, Cameroonian civil service ernment hires a significant number service confirms that 90% of staff, employed 226,076 people, including of contract agents in addition to particularly those that are not in 140,533 civil servants (grades A to D) the technical workforce, mainly in management positions and contract and 85,543 contract agents (cate- category 8, which equates to grades agents, are not satisfied with their gories 1 to 12), representing 2.2% of B1 or B2 of the statutory law. level of remuneration. the population. This was revealed by In 2012, contract workers made up “This situation can only be detri- the World Bank in a report on the 42% of the public service workforce. mental to the quality of the services country’s public expenditures. In 2015, following the tenure of some provided and the results,” World Bank According to the document, the gov- contract teachers, they represented concludes.

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 PUBLIC MANAGEMENT 33

China grants CFA1.8bn to support populations in southwest and northwest regions

China granted Cameroonian govern- This Chinese assistance aligns with Started out as a simple corporatist ment, last weekend, a batch of emer- the Humanitarian Emergency Plan demand by lawyers and teachers, gency equipment and materials to valued at CFA12 billion, launched this crisis then turned into violent assist people fleeing conflict between June 20 this year by the Cameroonian separatist demands, with the aim of the army and secessionists in the government, to support the splitting the country. northwest and southwest regions. Anglophone crisis-related victims.

Prison food budget grew to CFA CFA3.070M in 2017 The food budget in Cameroonian Ebolowa jail, southern region, the The Commission suggests, among prisons slightly grew from CFA2.570 daily ration is valued at less than others, that the Ministry of Justice million in 2016 to CFA3.070 million CFA200 per person. The inconsistent, focus on the autonomous production in 2017, improving the daily cost per unbalanced and little varied menu of food for prisoners, through the op- prisoner from CFA250 to CFA273, for consists mainly of corn couscous timal use of prison workforce and the the 30,701 prisoners. with soy sauce, rice with peanut creation of agricultural areas, as in “This increase didn’t produce the sauce and corn with beans. The same production prisons in the Northwest expected results in terms of food applies to Mantoum central prison, and Southwest regions. quality and the quantity reserved western region, where main meal is In addition, Cndhl recommends for each inmate during the reference couscous with vegetables, one meal restoration of the system of advance y e a r,” the National Commission for a day. funds, which allows prisons to stock Human Rights and Freedoms (Cndhl) Cndhl says although prisoners eat up with food without intermediaries said in the 2017 report on the state of meat and fish on celebration days in at market prices, instead of the com- human rights in Cameroon. Yaoundé central prison and in the mitment voucher procedure, which Cndhl pointed out that the food ra- main prisons of Mokolo and Mora cuts funding for food by a significant tion in 2017 does not meet inmates’ (Far North), the main menu is either amount allocated to taxes and profit nutritional needs. For example, at corn, beans or rice. margins of providers.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 34 PUBLIC MANAGEMENT

Nearly CFA1,050bn detected in money laundering circuit over the 2006-17 period

Over the 11-year period from 2006 with the government daily Cameroon priated by state agents are often to 2017, the National Agency for Tribune. re-injected into the economic circuit, Financial Investigation (Anif) discov- Mr. Hubert said despite government’s through equity investments in ered nearly CFA1,050 billion in dirty measures to combat this practice, local or foreign companies; or huge money, Hubert Nde Sambone, head launderers still find ways to thwart investments in real estate in and out of the agency, reports in an interview the system. Public funds misappro- the country. Tax office sets the public procurement tax for 2019 The Cameroonian tax authority is is set in the 2019 Finance Act under to or greater than CFA5million and redefining public procurement tax consideration by parliament since less than CFA50 million. for 2019. In that regard, it plans to November 16. Another 3% tax is planned on “public collect a 7% tax on “public pur- In addition, a 5% tax is planned procurements” which include public chase orders” which include public on “order forms” defined as public orders of CFA50 million or more, contracts and orders worth less than contracts and orders ranged between paid from the budget of the State, CFA5 million paid from the budget CFA5 million and CFA50 million, decentralized local authorities and of the State, decentralized local paid from the budget of the State, public institutions. authorities and public institutions, decentralized local authorities and regardless the source of funding. This public institutions. The value is equal

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 PUBLIC MANAGEMENT 35

Cameroon to adopt a food security law to ensure protection of consumers Cameroonian Parliament is passing down regulatory principles and foun- through this law to comply with in- in coming days a framework law dations for food, feedstuffs for human ternational food safety standards, as on food security. After the National consumption as well as food additives defined by the WHO, FAO, WTO and Assembly, the Senate has been and supplements, to ensure higher the World Organization for Animal examining this text since November protection of consumers’ life, health Health. 13, we learnt. and environment” in Cameroon. The law, as presented, “aims to lay Specifically, the government plans

US General Electric reaffirms ambition to diversify activities in health and transport sectors

The Cameroonian government men discussed ways to strengthen come US companies in Cameroon announced that US General Electric partnerships. and provide them with good business (GE) is planning to diversify ac- As a reminder, President Paul environment. tivities in health and transport Biya previously met with Peter Mr. Barlerin said focus areas include sectors, mainly targeting railways Henry Barlerin, US ambassador to air transport (Boeing) and railways construction. This follows a meeting, Cameroon, last May 17. A meeting (General Electric). Between 2014 and in Yaoundé, between President Paul at the end of which the US diplomat 2017, US investments in Cameroon Biya and Farid Fezoua, the company’s announced that President Paul Biya amounted to $2 billion (about MD for Africa, during which the two agrees on the importance to wel- CFA1,114 billion).

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 36 FINANCE IFC partners with Atlantic group to boost digital financial inclusion The International Finance Corporation (IFC), World Bank’s private investment arm, announced November 21 it has signed a $1.6 million (nearly CFA1 billion) agree- ment with Atlantic Financial Group Central and East Africa (AFG C&EA) to increase access to digital financial services for low-income people, small entrepreneurs and rural populations in Cameroon. “Access to formal credit can boost small entrepreneurs and farmers, and the development of financial inclusion is an essential component of inclusive economic growth. Digital financial services are increasingly available in Cameroon, but more needs to be done to develop financial inclusion,” said Mehita Sylla, IFC representative in Cameroon. Thanks to this three-year consulting project, IFC will help Digital Business Solution (DBS), AFG C&EA’s digital arm, to develop a broad network of agent banking services and launch digital savings, loan and insurance products. financial services”. generations. It will pave the way for IFC said, AFG C&EA, which is active “The initiative will support emerging similar developments of the Atlantic in the country via two subsidiaries entrepreneurs and contribute to the Group in other African markets,” said Banque Atlantique and Atlantique sustainable and inclusive economic Koné Dossongui, Chairman of the assurances, “will thus become a growth needed to meet today’s chal- Board of Directors of the Atlantic top-tier provider of integrated digital lenges and ensure the future of coming Group.

CEMAC: Beac seeks an insurer for the transportation of valuables The Bank of Central African States Applicants, it is reported, must en- XAF2 million. (BEAC) has just launched an sure that they have a bank guaran- Bidders must submit complete international tender to select an tee of XAF50 million, and participa- files to the BEAC headquarters in insurance company to cover the tion in this tender is subject to the Yaoundé, the Cameroonian capital, transportation of its assets in 2019. payment of a non-refundable sum of by 24 January 2019 at the latest.

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 FINANCE 37

Four local banks to raise CFA120bn for Nachtigal Dam construction

A group of four local banks includ- World Bank. “It’s a rather complex Built on the Sanaga River, which is ing SCB Cameroon (Moroccan guaranty that made it possible to home to 75% of Cameroon’s hydro- Attijariwafa’s local branch), Standard expand the facility to 21 years, since power potential, the Nachtigal dam Chartered Bank Cameroon, BICEC it’s not possible in Cameroon to have will improve the current electricity (French BPCE’s local subsidiary) and facilities of more than 7 years,” the production capacity by 30%. The pro- Societe Generale Cameroon, mobi- manager said. ject is promoted by Nachtigal Hydro lized CFA120 billion to contribute “The guaranty enabled us to have a Power Company (NHPC), 40% owned to the construction of the Nachtigal 21-year maturity period, three times 7 by Electricité de France (EDF) and Dam (420 MW) in the Central region. years, in a way that at the end of each the remaining equally owned by the The fundraising was part of an 7-year period, each of the banks could Cameroonian government and the operation arranged by the local unit end the deal when it needs liquidi- International Finance Corporation of Societe Generale (SG) which alone t y,” he further explained. (IFC). After completion, the infra- injected CFA50 billion, about 50% Agreements relating to the dam’s structure will be operated by NHPC of overall amount, we learnt last construction were signed November over a 35-year period, according to November 29 in Dakar, Senegal dur- 8 in Paris, France, with 15 interna- agreed terms. ing a “structuring financing” round tional lenders and the 4 bank consor- “The Nachtigal project, is one of table organized by the SG group. The tium. A total of CFA786 billion has the rare public-private partnership operation aimed at improving its been raised, it is officially reported. agreements in sub-Saharan Africa’s financing commitments in Africa by The government said the 57-month hydropower sector. It will speed up the 20% over 3 years, as part of its “Grow works will begin in December 2018. achievement of Cameroon’s devel- with Africa” plan. Construction is entrusted to Besix opment targets, especially regarding According to Mohamed El Fadel kane Goup, a Belgium construction firm, poverty reduction,” said Elisabeth who manages the group’s structuring in partnership with French NGE Huybens, World Bank’s operations financing hub in West Africa, the (Nouvelles générations d’entrepre- manager in Cameroon. resource mobilized by these four neurs, grading leading company in local banks is fully guaranteed by the France) and Morrocan SGTM.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 38 FINANCE

Apesa Fund enters crowdfunding segment, amid gloomy market environment in CEMAC

Jean Calvin Mbayen Mbayen, the country in the sub-region to be repre- Jean Calvin Mbayen Mbayen assured Managing Director of microfinance sented in crowdfunding in Africa, that Apesa complies with prudential company Apesa announced the with 4,421 projects financed in 2017 ratios. Moreover, it reports that the company is entering the crowdfund- for a total of CFA1.1 billion. This company benefits from the support ing segment. This was during the represents 0.74% of the funds raised of serious investors such as the opening of a new branch in Yaoundé in 2017 on the continent. Cameroonian oil company Gulfin November 29. “We’re working on this service that and the multinational Sofimar. The announcement of the company, will allow you, as an investor, to After it completes expansion to 65% owned by Cameroonians, occurs finance projects online. The entre- the Far North, East, West and in a context marked by the fragility preneur can also benefit from online South West, Apesa plans to grow to of the business sector. According to financing,” the MD said. ultimately become a bank like Crédit the Bank of Central African States When asked about the soundness of communautaire d’Afrique became a (BEAC), Cameroon is the only the financial institution he manages, bank on June 11, 2018.

Cameroon: BGFI Bank achieved a net profit of over CFA5 billion in 2017 In 2017, the local subsidiary of BGFI the end of 2015. tion strengthens the competitiveness Bank achieved a net profit of CFA5.1 “In terms of activity, the total balance (digital banking, specialized services). billion reflecting “a strong perfor- sheet increased by 12% in 2017, to In terms of performance, net banking mance despite a contrasting economic exceed the symbolic threshold of income (NBI) grew by 13%, thanks in environment”. CFA300 billion. This evolution is the particular to the increase in average This indicator thus exceeds for the result of sustained growth in the loan outstanding loans over the year,” the first time the symbolic threshold of portfolio, up 19% over the year. As for bank reveals. CFA5 billion from CFA4.6 billion at deposits, they increased by 9% in a the end of 2016, and CFA3.5 billion at market where technological innova-

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 39 AGRIBUSINESS Port of Kribi to take part in Cocoa-Coffee Revival Plan The Autonomous Port of Kribi (PAK) is organizing November 29-30 a workshop with cocoa-coffee players to discuss ways to stimulate a sector in crisis. Actions to be carried out, says PAK’s MD Patrice Melom (photo), include the valorization of the industry’s potential by assessing the market size and volumes based on the seg- mentation of products (beans, cocoa powder and butter), the identifica- tion and referencing of all actors in the cocoa-coffee value chain, starting from bean production to processing. According to Mr. Melom, this is not just a simple marketing offensive for a port that is looking for customers but a fundamental approach that consists, for PAK, in being part of an cocoa beans were exported through Anglophone crisis mainly in the overall effort and a global dynamic the port of Douala at the end of May southwest which is one of the to stimulate the country’s general 2018, two months before the end of largest bean production basins in productivity, through the gradual the 2017-2018 cocoa season. This Cameroon. reversal of its trade deficit. reflects a decline by 10% compared Cocoa is a key industry in Cameroon This commitment by the auton- to the 249,573 tons exported over the which is the world’s fifth largest omous port of Kribi comes in a same period during the 2016-2017 producer of the crop. The sub-sector context where the cocoa-coffee cocoa season. is the country’s second largest export sector is experiencing some diffi- The core reason of this drop in item, after oil with just over CFA400 culties. Indeed, only 23,413 tons of exports is the violence due to the billion as annual revenues.

Price per bag of Onions escalates in Yaoundé, reaching CFA150,000 against CFA25,000 a few months ago

Since October 2018 which marked dropped causing sellers huge losses Far-North, the two major produc- the arrival on the market of the as the crop quickly rot. They said tion areas. This season’s production off-season onion, the price of this the situation is predicted to last till supplies both the local market and crop has surged reaching CFA150,000 December 2018. Prices are expected neighboring ones including Gabon per bag from CFA25,000. to fall in January 2019, as onion and Equatorial Guinea, traders said. Subsequently, demand significantly harvesting will start in the North and

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 40 AGRIBUSINESS

Actual demand for palm oil exceeds 1mln tons, driven by accelerated investments by refiners

Leveraging the 2013 law that “The structural deficit of 130,000 tons 970,000 tons; 520,000 for Ghana which encourages private investment that we always mention is a nominal outperformed Côte d’Ivoire (480,000 in Cameroon, oilseed processors deficit which is different from actual tons). Cameroon followed with 300,000 (production of refined oil, laundry deficit. This nominal deficit is cal- tons ahead of DR Congo. So we need and toilet soap etc.) have speeded up culated on the basis of the 50% drop to boost production. Stimulus package investments in the sector ; amount in the capacity of processing plants. measures do not lay on the rise in now peaks at XAF630 billion with When we consider the real capacities price per kilogram of crude palm oil, 60,000 jobs created, the national oil- of processing plants, the gap is indeed but rather on the improvement of seed refiners association (ASCROC) way wider, since, as the ASROC-SG national production”. reported. said, the actual demand exceeds one In need to offset the gap, some local Speaking during a press conference million tons,” said Emmanuel Koulou processors now set up palm oil held December 5, in Yaoundé, the Ada, Head of the Oilseed Sector plantations. This is the case of Nana body’s Secretary General, Jacquis Regulatory Committee. Bouba group, which launched a pro- Kemleu Tchabgou, said the rise in Jacquis Kemleu Tchabgou, ject in 2016 to plant 30,000 hectares investment significantly increased said: “there is a need to increase of oil palm trees in the coastal region demand for oil palm, in recent years. production. Cameroon which once to supply its Azur SA refinery, which Actual demand stands at more than was Africa’s largest oil palm producer specializes in refining palm oil and 1 million tons, while local supply is is now 4th and is facing stiff compe- producing household soap. just 300,000 tons per annum, a deficit tition by the Democratic Republic of of 700,000 tons. Congo. Nigeria’s output now stands at

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 41 ENERGY

SNH recognized as best African national oil company in 2018, in London

Cameroon’s national oil company SNH announced it won the Best African national oil company award for 2018, last November 22 in London, UK, at a “Big five board award” (BFBA) ceremony hosted by the African Petroleum Club of the Frontier Communication (FC) group. The latter organizes international flagship events that showcase oil and gas sector in America, Europe, Asia, Saudi Arabia, the Maghreb and sub-Saharan Africa. This new award comes after the Extractive Industry Transparency Initiative’s Board (EITI) hailed the SNH’s effort towards better transparency and accountability in the extractive sector, last June 29. Efforts focused on “the increased regularity of publications issued by the national oil company, the National Hydrocarbon Company, particularly on oil sales”. The SNH is now one of the over 100 BFBA recipients since the prize was incepted in 1997.

BEI plans investment in Cameroon-Chad Power Interconnection Project The European Investment Bank (BEI) “Cameroon has a huge potential, one transmission line linking Ngaoundéré plans to invest in the Cameroon- of the strongest in Africa. The Sanaga and Maroua, in Cameroon, to Chad electricity interconnection River alone generates over 6,000 Ndjamena, in Chad will be set. As project, Andrea Pinna, BEI’s Head of MW. This project is an opportunity well, a 250 km link road between Regional Representation for Central for the country to become a power Maoua (Cameroon) and Mogrom and Africa, announced. exporter and it implies the need for Ndjamena (Chad) is planned. Back in This was during a recent site visit to interconnection lines with neighboring 2013, the African Development Bank the Lom Pangar dam, Eastern region; countries. One of BEI’s focus lines is (AfDB) partly funded the project’s a facility funded with nearly CFA20 the Cameroon-Chad project,” he said. feasibility studies. billion by the European bank. Under this project, a 700 km power

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 42 ENERGY

Oil production forecasted to reach 24.5 million barrels in 2019

Cameroon plans to produce 24.5 mil- despite the decline, oil revenues are billion is from oil and CFA36 billion lion oil barrels in 2019, the Finance projected at CFA450 billion against from gas, based on a barrel price Minister (Minfi) Louis Paul Motaze CFA362 billion for 2018, thanks to the of $68.8 with a discount of $3.5. This announced November 21 during a increase in barrel price. is equivalent to $65.3 per barrel in presentation to Parliament. Oil revenues in 2019 include both Cameroon, an exchange rate of $1 for Compared to 2018 forecast (26 the royalty from the National Oil CFA555.1. The average price per bar- million barrels), the volume reflects and Gas Company (NHC) and the oil rel in 2018 is $41, thus between 2018 a slight decrease by 1.5 million corporate tax. Royalty is expected at and 2019, the barrel price is expected barrels. However, the minister said, CFA357.7 billion, of which CFA321.7 to improve by $24.3.

Oil and gas sales revenue rose by 20.31% to CFA283.71bn, in late September 2018 Cameroonian national oil company and CFA7.4 billion in taxes to the In addition, the company deliv- (SNH) announced December 4 that Treasury. These sums come from the ered 8,785.29 million cubic feet oil and gas sales between January sale of crude oil between the period (248.80 million m3) to Kribi Power and September this year amounted reviewed, 9.176 million barrels Development Company, the man- to CFA283.71 billion, production cost (-21.21%). Meanwhile liquefied ager of the Kribi thermal plant. This excluded, reflecting a 20.31% growth natural gas (LNG) shipments, which figure, higher than the minimum compared to the same period last started May 17, allowed 7 offtakes, as daily volume of 28 million cubic year. at September 30. Of this volume, SNH feet, reflects that the plant operates SNH reports it has paid the gov- sold 258,775 million m3, 5,958.46 69.97% of its installed capacity (216 ernment CFA6 billion in dividend billion BTU (British thermal unit). MW).

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 ENERGY 43

Africa50 acquires 15% stake in Nachtigal hydro plant (420 MW)

Africa50, the pan-Africa infrastruc- with private capital. It will have a Africa,” according to Elisabeth ture investment platform, has just ac- strong demonstration effect under the Huybens, World Bank Country quired 15% of stake in the Nachtigal government’s sector reform process, Director for Cameroon. project (420 MW). paving the way for similar projects in Following this transaction, the On the occasion of the signature the future”. shareholding of NHPC is now com- of the related agreement, Koffi The project is all the more interesting prised of EDF (40%), IFC (20%), the Klousseh, the platform’s Director of as it will increase Cameroon’s power Cameroonian State (15%), Africa50 project development, said: “Nachtigal capacity by 30%. It is “one of the very (15%) and STOA Infra & Energy will be the largest hydropower plant few public-private partnership (PPP) (10%). in Africa that is primarily funded hydropower projects in Sub-Saharan

Three multinationals control 46% of gas station networks in Cameroon In Cameroon, the number of service Though the majority of the 38 More specifically, Total remains stations has almost tripled over the station operators are locals, statis- atop the list although the company past 15 years, from 300 in 2000 to tics showed, 46% of the network is has lost some market shares due to 814 currently, according to internal controlled by three multinationals competition in recent years. statistics from the Ministry of Water namely Total, MRS Corlay and and Energy. Oilibya.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 44 ENERGY

Cameroon produced 18.82mln barrels of crude oil, in January-September 2018

Over the first nine months of this producing fields. sults achieved under the deployment year, Cameroon’s crude output stood Meanwhile, natural gas output of its Action Plan, in a contrasting at 18.82 million barrels, the national reached 1.188 billion m3 with a environment. This helped revive oil company (SNH) announced at the year-target of 1.864 billion m3, up operation/production activities that end of a Board meeting December 4, 373.99% compared to 2017. The were once affected by the decline in in Yaoundé. increase, SNH said, is the result of oil prices. According to the company, the the entry into production of FLNG SNH forecasts related investments to whole year’s target was 25.50 million Hilli Episeyo located offshore Kribi, stand at $324.29 million, an increase barrels, down 8.04% compared to Southern region. by 65.62% compared to 2017. last year, due to normal decline on The company welcomes positive re-

At the end of 2017, 500 Eneo smart meters were activated in Douala and Yaoundé In its latest activity report, the sition system that makes it possible service of Medium Voltage custom- electricity company Eneo announced to read the meters remotely. ers who have industrial meters. In that at the end of 2017, 500 smart “This system allows a regular and reli- 2016, this platform was enhanced meters were activated in Douala and able consumption measurement […], to include high value Low Voltage Yaoundé and deployment continued ensures a permanent bill distribution, (LV) customers before been further this year. limits disagreement risk,” explains improved this year to allow faster in- The devices are linked to the Eneo. terventions in case of meter defects. Metering Management System The MMS platform was acquired by (MMS), a remote meter index acqui- the company in 2009 and put at the

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 ENERGY 45

Average rate of fuel pollution in 2018 reduced to 1.97% compared with 3% in 2017 (Minee)

Presenting his ministry’s activities period and 42 cases of pollution were of waste oils. before the parliament on November recorded, corresponding to an aver- A total of 56 companies were 25, Gaston Eloundou Essomba, age pollution rate of 1.97% compared licensed in Cameroon to operate the minister of water and energy with 3% in 2017. in the downstream oil sector as at (Minee), reported that the quality According to the official, the distri- October 31 this year. The government control of fuels served in Cameroon bution sector is under control, with has facilitated the construction and covered a volume of 1.28 billion seven new licenses granted over commissioning of 14 new service liters of marked products as at 30 the period. These include one for stations since the beginning of the September 2018, the whole year’s the distribution of oil products, two year, in order to improve people’s target being 1.6 billion liters. for the sale of marine bunkers, one access to oil products and domestic In addition, 2,136 inspections were for imports, two for the exclusive gas, bringing the total number of carried out at service stations and distribution of domestic gas and one such stations in the country to 818. consumer points during the same for the treatment and regeneration

Cameroon imported 79,428 tons of domestic gas over the first 9 months this year During the first 9 months this year, In need to meet local demand, domestic gas consumption rose from Cameroon imported 79,428 tons of Csph says, storage capacities were 84,164 tons, compared with 76,121 domestic gas (LPG), compared with improved from 6,488 tons to 7,488 tons the same period in 2017, an 71,068 tons the same period last year, tons in 2018, with two new spheres of improvement by 10.6%. As well, Csph an increase by 11.8%. “Proof that the 500 tons each, built by the National said it spent more than CFA32 billion LPG market is far from saturated”,the Hydrocarbon Company (SNH) in the on product consumption in 2018. Oil and Gas Price Stabilization Fund Bipaga seaside area, southern region. (Csph) reports. Over the period under review,

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 46 ENERGY

Cameroon produced 221,236 m3 of oil products for the local market in 2018

The national oil refining company 63,666 m3 of Super, 112,674 m3 of 31, split into 354,0546 m3 of Super, (Sonara) announced it produced a diesel, 30,570 m3 of Dual Purpose 458,619 m3 of diesel, 129,559 m3 DPK total of CFA221,286 m3 of oil prod- Kerosene (jet A1 and kerosene) and (jet A1 and kerosene) and 21,669 m3. ucts for the local market during the 14,376 m3 of Fuel. Meanwhile, marketers imported 2018 financial year. This volume, the During the above-mentioned 411,520 m3 of oil products, including company said, was produced prior shutdown, Sonara imported a total 166,365 m3 of super, 175,770 m3 of to the technical shutdown of refining of CFA963,559 m3 of oil products diesel, 62,705 m3 of DPK and 6,680 m3 units in April this year. It included on the local market as at October of fuel, as at 30 September 2018. Cameroon exported 1.03 million m3 of liquefied natural gas via the Kribi floating unit, in late September 2018

Cameroon’s entry into the close “The test phase was completed since of 150,000 tons and 1.3 million tons circle of liquefied natural gas (LNG) May 31, 2018. As at September 30, 2018, of LPG and LNG, respectively, per an- producers since 12 March 2018 a total volume of 1,035,020 m3 of LNG num as well as 70 million cubic feet has so far gone smoothly. Indeed, was exported,” Minee said, stressing per day of natural gas transported by sources within the Ministry of Water that a 25-year gas agreement has been pipeline to shore and 30,000 barrels and Energy (Minee) reveal that the signed between the government and per day of condensate, among others. project to build a floating LNG plant CMLNG SA to deploy and operate a The project is expected to create aimed at producing 1.2 million tons floating natural gas liquefaction plant more than 350 direct jobs and more of LNG and 30,000 tons of liquefied in the Etinde block. than 3,000 indirect jobs for local petroleum gas (LPG) per annum has This agreement, whose operation nationals. been fully completed. starts in 2023, will see the production

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 47 INFRASTRUCTURE African Development Bank approves €17.96 million Ring-Road project to improve socio- economic growth in the North-West province The African Development Bank has approved a €17.96 million loan to the Republic of Cameroon to finance the construction of a Ring-Road Project in the North-West Province of the country. The Ring Road project, which falls under phase three of the coun- try’s Transport Sector Support Programme, aims to improve the movement of goods and people. It will also strengthen the foundations for strong and sustainable growth by promoting domestic and regional trade. The loan for the 365 km Ring Road is the Bank’s third intervention in the of the Country Strategy Paper (CSP) the Transport Sector Support implementation of this important 2016-2020 for Cameroon, which Programme is estimated at €255 road network rehabilitation and focuses on strengthening infra- million (XAF 167.270 billion). It will upgrading project. The loop road structure to support agricultural be implemented from December crosses five of Cameroon’s seven di- value chains for inclusive growth 2018 to June 2024, with the Bank’s visions of the North West Region and and aligns with the Bank’s High 5 co-financing loan of €179.60 million, includes several links to the Nigerian priorities. an Africa Growing Together Fund border. Cameroon’s northwestern region has (AGTF) loan of €42 million and the The project will also include insti- enormous economic potential, par- Government’s counterpart funding tutional support for the transport ticularly in agriculture, which stands of €32.84 million. sector and related works such as to benefit from the road. Other lu- At the end of August 2018, the Bank’s the development of rural roads, the crative sectors include livestock and portfolio in Cameroon comprised rehabilitation of socio-economic fisheries; tourism, particularly the 24 operations (18 national and infrastructure for improving women spectacular natural landscapes such five multinational operations) for and youth’s living conditions. as the Menchum Falls, Lakes Awing, total net commitments of €1,369.02 The road project is in line with Oku and Nyos, the Mbengwi Caves. million. The public sector accounts the government’s Growth and The project is also expected to have for €1,218.03 million for 19 oper- Employment Strategy Paper (GESP) a positive impact on transporta- ations, while the private sector 2010-2020, to build an integrated and tion - greatly reducing travel time ; accounts for four projects valued efficient transport network at low- increase in traffic of passenger and at €150.99 million (Transport and cost that covers the entire country goods; foster job creation for women ICT sectors account for 63% of the opening the country to neighbouring and lead to work for 30,000 youths. portfolio). countries to effectively enhance eco- The road will result in savings on Since 1972, when the Bank started nomic growth and reduce poverty. vehicle operating costs; increase in operations in Cameroon, it has par- The Transport Sector Support household income and reduction in ticipated in financing 28 transport programme under which the project post-harvest losses. sector operations. falls is also consistent with Pillar I The total cost of phase one of

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 48 INFRASTRUCTURE

Cameroon: 317.6 km roads constructed in 2018

This year, the Cameroonian govern- of new asphalt roads and 144 linear is developing at a significant rate ment pulled efforts to develop and meters of bridges,” Mintp said, stress- increasing from 5,240 km to 6,760 km upgrade the national road network, ing that through the adoption of of asphalted road between 2010 and the ministry of public works (Mintp) an adequate regulatory framework, 2016. The government is targeting featured in the year-end review several works have been carried out 9,558 km by 2020. Structuring axes submitted to parliament. by local workers in order to compen- currently under construction cover “In the Public Works sector, significant sate for traffic disruptions. over 2,883 km of national and munic- efforts have been made. Many projects The ministry said the linear density ipal roads. have seen the construction of 317.6 km of Cameroon’s asphalt network

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 49 INDUSTRY Switzerland’s Sika Group pumps over CFA1bn in a production unit, in Douala Swiss construction company Sika Cameroon is very interesting and Djibouti on August 23, 2016. Thanks officially inaugurated last December offers so much potential with infra- to its implementation in Cameroon, 1 its production plant in Douala, structure such as dams, bridges, ports Sika contributes to “various con- the Cameroonian economic capital. or residential projects including shop- struction projects of stadiums and The plant generated 19,700 tons of ping stores and buildings,” said Ivo accommodation structures, concrete products, during this year. Schadler, Sika’s manager for Europe, plants and resin floors in several Next year, the equity-funded facility Middle East and Africa (EMEA). factories [...]”, said Pedro Lopes, Sika valued at more than CFA1 billion, According to the latter, Sika Group Cameroon’s MD. will see its capacity improved to achieved “a record result in 2018, with Let’s mention that Sika group spe- 29,700 tons; this with the announced a turnover of around 7 billion Swiss cializes in markets such as concrete, entry into production of a mortar francs and now holds more than 100 waterproofing, roofing, flooring, production unit, managers said. subsidiaries all over the world”. sealing and bonding, refurbishment “We believe that it’s important to be As a reminder, the company officially and industry. very close to our customers to better announced the opening of its two understand and satisfy their needs. new branches in Cameroon and

Cameroon: SABC suspends draft beer distribution due to plummeting sales Cameroon’s brewer SABC has stopped distributing draft beer since it decided to not renew its contract with La Fontaine à Bière (FAB) due to plummeting sales. The decision “is an initiative from the Castel group’s headquarters in Paris, and not that of the current managers of SABC,” says an author- ized source. “The decision might be motivated by the lack of economic profitability of the contract for SABC, since the industry has been facing a decline in performance since FAB was awarded the contract for draft beer exclusive sale. We remind the principle that, in law, no one can be forced to remain in a contract indefinitely. Perpetual commitments are thus prohibited,” explains the same source, without giving more details.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 50 INDUSTRY

Somdiaa announces the retirement of its local subsidiary’s CEO Louis Yinda

Next month, Louis Yinda, 70 yo, CEO Drouin and Cameroonian Samuel ing which it targets nearly 130,000 of Cameroon’s sugar firm (Sosucam), Libock. According to internal tons of sugar. More than 7,000 direct local subsidiary of Somdiaa, is sources, the move was foreseeable jobs will be generated, co-contract- retiring after 18 years of service. This since the decision had already been ing with SMEs. The harvest campaign was announced November 27 during announced November 14 to manag- covers 22,000 ha of the two sites of a Board meeting in Yaoundé. ers in Paris. Mbandjock and Nkoteng; a total of Alexandre Vilgrain is appointed new The retirement of Mr. Yinda comes 1.4 million sugar canes will be cut, Managing Director along with two at the time when the company just transported and ground on the two Deputy Managers, French Gilles launched a new sugar campaign dur- plants.

The wood-energy industry achieved a CFA152bn profit in 2018 Net profits made by fuelwood wood-energy consumption in urban revenues remains low, while parafiscal operators in 2018 are valued at areas is estimated at 2,203,496 tons tax on the sector reaches up to CFA1 CFACFA117.42 billion for charcoal, for fuelwood and 356,530 tons for billion,” the minister said. with figures peaking up to CFA152 coal. Turnover is valued at CFA188.33 Minfof suggests the development of billion if personnel costs and wood billion per annum. In rural areas, economic strategies in need to boost sales in urban areas are added, the consumption is 4 million tons a year the sector, giving it a significant ministry of forestry and wildlife at CFA77.8 billion. place in the forest-fauna sub-sec- (Minfof) informed. However, “the contribution of tor, the forest law and the forest According to Minfof, the annual wood-energy industry to government administration.

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 51 MINING Mining revenues grew to CFA5bn in 2018

Actions pulled in the mining sector possible to make some progress, par- rutile deposit (500,000 tons) for by the government this year helped ticularly in revenue terms. Moreover, which an international call for inter- increase revenues from CFA4 billion this year has seen the direct purchase est has been launched. In addition, in 2017 to nearly CFA5 billion, the of gold from artisanal miners, with the State is currently negotiating department of industry, mines projections of 40 kilograms by the three mining agreements for the ex- and technological development end of the year and 120 kilograms ploitation of the Akom II iron, Kribi (Minmidt) said in an internal note. from operators in the semi-mecha- iron and Colombian gold deposits. According to the Minmidt, these nized craft sub-sector. A research permit was also issued actions mainly concerned the further Minmidt is optimistic for the coming for the bauxite deposit (provisional dissemination of the Mining Code, months thanks to the development potential of 554 million tons) at implementation of which has made it of mining sites, such as Akonolinga Ngaoundal and Minim-Martap.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 52 TRANSPORTATION Congo Airways to fly in Cameroonian skies starting December 4, 2018

DRC’s national airline, Congo The new line Kinshasa-Douala- direct flights. Congo Airways will be Airways, is scheduled to make first Cotonou-Kinshasa, set under this the only airline to serve this route, flight to Cameroon on December 4, move, will thus allow Beninese and which is expected to boost trade 2018, Défis Actuels revealed, citing Cameroonian travelers to reach the between Cameroon, Benin and DR internal sources within the company. Congolese capital twice a week by Congo, managers said.

Cameroon to head the General Assembly of the African Airlines Association Ernest Dikoum, the Managing Mr. Dikoum called upon aviation (Boeing, Airbus, Bombardier, ATR, Director of national airline Camair- stakeholders to pool efforts to effec- Rolls Royce, Party & Chutney, General Co, was appointed as the Chairman tively respond to the industry’s con- Electric, IATA...) and more than 50 of the General Assembly of the stant changes. Next general meeting African airlines, is the clear proof that African Airlines Association (Afraa) is going to be hosted in Cameroon in our country enjoys great credibility,” on November 27 in Rabat, Morocco, November 2019. said Mr. Dikoum who just started his during the body’s 50th general “This umpteenth international victory one-year term as Afraa’s Chairman. meeting. for Cameroon, which will see the Delivering a speech on the occasion, participation of aviation players

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 TRANSPORTATION 53

EIB to finance the refurbishment of Bélabo- Pangar-Ngaoundéré railway

The European Investment Bank construction of this line. Africa, during a recent site visit to the (EIB) announced it will finance the “Currently, this railway is seriously de- Lom Pangar dam, East region. refurbishment of the railways linking graded. We are working jointly with the Let’s mention that the bank financed the localities of Belabo, Pangar government to totally renovate it,” said the dam project with up to CFA20 and Ngaoundéré, in the East and Andréa Pinna, the head of regional billion and plans investment in the Adamaoua regions. EIB financed the representation of EIB for Central rural electricity industry.

Cameroon issued 1,640 approvals to ease traffic within the CEMAC area, in 2017 Cameroonian transport ministry created about 4,920 direct jobs. Also, Yaoundé, that red tape is the main (Mint) announced that, as part of the the monitoring of the permanent obstacle to agricultural trade on facilitation of transport and transit in compliance with these approvals’ CEMAC corridors. The consequence the CEMAC area (Cameroon, Central specifications contributes to making is that product prices “are systemati- African Republic, Chad, Congo, transports more efficient and more cally higher than official tariffs”. Equatorial Guinea, and Gabon), it fluent,” the Cameroonian Ministry of The World Bank then suggests issued about 1,640 permits in 2017. Transport said. a cross-sectoral collaboration In detail, these include 1,484 approv- Despite Cameroon’s performance in and strong political leadership to als for the transport of local goods, the transport sector, the World Bank overcome the inevitable political 141 for the transit of general cargo revealed in a “breaking agricultural economy resistance from those who and 15 for exceptional transport in trade barriers in Central Africa” currently collect incomes at the the Cemac zone. “This industry has report, presented August 30 in expense of the poor.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 54 TRANSPORTATION

Cameroon: Rail travels dropped 45% in 2017

In 2017, Cameroon’s rail transport Report, Mint also noted a decline in The single-track railway is just over sector recorded 850,000 travelers, freight traffic from 1,088 million ton/ 1,000 km long and has a metric down 45% compared to the nearly km to 806 million ton/km in 2017. gauge. It has three lines: Transcam I: 1.5 million passengers in 2016. The No reason for the decline was given Douala-Yaoundé (262 km); Transcam transport minister (Mint) said the however. II: Yaoundé-Ngaoundéré (662 km) sector performed well from 2013 to Till now, Mint says, Camrail, the local and the western line which has two 2015 with 1.4 million and 1.6 million subsidiary of Bolloré, is the only oper- sections Douala-Mbanga (74 km) and travelers respectively, during the two ator charged with the management, Mbanga-Kumba (27 km). years. marketing, operation and mainte- In its 2017 Transport Statistics nance of the Cameroonian railway.

Cameroon secured CFA24.36 billion in transit rights on the Chad-Cameroon pipeline, in late October 2018 Adolphe Moudiki, Chairman of the Pipeline Steering and Monitoring Committee (PMC), has just presented the committee’s activities between January 1 and October 31 this year. These mainly cover the monitoring of crude oil offtakes at the Komé-Kribi (KK1) terminal of the Chad-Cameroon pipeline. A cumulative volume of 33.90 million bar- rels of crude oil was recorded, compared with 30.052 million barrels during the same period in 2017, generating a transit duty of CFA24.36 billion compared to CFA22.94 billion for the same period last year. “Transit duty revenues have thus increased significantly, mainly due to higher volumes of crude oil transported over the period r e v i e w e d ,” explains Adolphe Moudiki. In addition, according to the provisions of Amendment 2 to the Establishment Agreement of the Cameroon Oil Transportation Company (Cotco) that operates the Chad-Cameroon pipeline, the transit duty rate was updated on 30 September 2018, from $1.30 to $1.32 per barrel. This discount rate applied to the vol- umes of crude oil took off at the KK1 terminal from 1 October 2018 to last till 30 September 2023, the date of the next discount.

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 TRANSPORTATION 55

Cotco plans to double the volume of oil transported on the Chad-Cameroon pipeline by 2022 Cameroon Oil Transportation of crude oil exported via the Chad- Nigerien authorities have not yet Company (COTCO), which manages Cameroon pipeline since 2003, has abandoned the idea of building a the Chad-Cameroon oil pipeline, seen the arrival of new operators in pipeline to connect to the Chad- plans to double the volumes of crude recent years, which should boost oil Cameroon oil pipeline in order to oil transported through the line by production; a production channeled export Nigerien crude oil from the 2022, MD Johnny Malec announces. via the pipeline. seaside resort of Kribi in the south- Indeed, Chadian oil fields, which Moreover, although the project is ern region of Cameroon. produced the 680 million barrels not much evoked in recent months,

Belgian BIA launches German MAN’s truck distribution, in partnership with lessor Alios Finance

MAN-branded trucks, manufac- Douala, the economic capital. Sources said, for a better deployment tured by German company MAN This new step will see BIA broad- of activities, BIA’s local subsidiary has Truck, fully owned by Volkswagen, en its footprint for MAN’s truck entered into a partnership with the are now officially distributed in distribution in Africa. The group is lessor Alios Finance, which recently Cameroon. Distribution will be also present in Côte d’Ivoire, the launched a bond issue worth CFA8 handled by the local subsidiary of Democratic Republic of Congo, Niger, billion on the Douala Stock Exchange the Belgian group BIA, we learnt Chad, Equatorial Guinea and the (DSX), the country’s stock exchange. during the launching ceremony in Central African Republic.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 56 TRANSPORTATION

Cameroon: 8,669 people killed in 22,314 road accidents, over the past 8 years

Over the past eight years, 22,314 road one city to another without waybill sectorial administrations involved accidents occurred in Cameroon or requested transport note. Plus, in road transport especially the with a death toll of 8,669, an average they ride outside authorized areas. transport ministry and the territorial of 1,000 killed per year. This was “Without any doubt, the charac- administration ministry. The goal is reported by Issa Tchiroma (photo), teristics of these vehicles are to be to conduct a vast communication the communication minister and questioned amid this rise of road campaign to raise awareness among government spokesperson, during a accidents and death toll due to the shareholders and populations about press conference held December 5, in higher number of vehicles of that the public and societal dangers of Yaoundé. sort,” Issa Tchiroma argued. illegal road transport. Persons involved in accidents are In the face of such situation, the One of the main objectives is to mostly drivers without license or minister calls upon the national bring at least 80% of sector players to other transport passes, conducting anti-illegal road transport unit comply with requirements that run “clandos” (local private cars used for to take all necessary corrective the Cameroonian transport sector, public transport) and “opeps”, some- measures. The Cameroonian Prime by December 2020, to significantly times without registration plates etc. Minister plans collaboration with the reduce illegal transport-related Generally, “clandos” travel from communication department and all accidents.

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 57 COMMERCE Wood: The volume of Cameroonian and Gabonese exports puts pressure on global FOB prices In its timber market memo issued late November, the International Tropical Timber Organization (ITTO) reported a pressure on FOB (Free on board) prices for sawn timber and logs from buyers in the Middle East, particularly China. “Middle East prices are under pressure, according to produc- ers, due to the large volumes shipped from Cameroon and G a b o n ,” the organization wrote. A reason for this increase in Cameroon’s wood exports is the launch of timber shipment operations at the deep-water port of Kribi, an infrastructure larger than the port of Douala, which has so far handled timber shipments.

Algeria plans investments in Central Africa, starting from Cameroon Algerian economic operators African countries to scout markets products that can be sold on the aim to enter the Central African […]. Algerian economic operators Cameroonian market, particularly market starting from Cameroon, have now a clear vision of the market’s agri-food products and home appli- Hocine Boubtina (photo), Secretary needs and the level of competitiveness ances, which are competitive; just General of the National Agency for they provide compared to foreign as there are Cameroonian products Promotion of Foreign Trade businesses already implanted in the that can be exported to Algeria, (ALGEX), announced. This was market […]. Cameroon is an open especially agricultural products and during an information day organized, door towards the Central African w o o d ,” said the senior adviser to the December 5, in Algiers, to showcase Monetary and Economic Community Cameroonian ambassador to Algeria, business, partnership and export (CEMAC), which has up to 120 million Dairou Bouba, who took part in this opportunities offered by Cameroon customers, and we see that as a huge information day. and other Central African countries. potential,” the Secretary said. “In recent years, we toured various “There are indeed Algerian finished

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 58 COMMERCE

Cameroon remains largest sawn wood exporter to the EU (186,500 tons), in late September 2018

Cameroonian sawn wood exports towards the European Union (EU) kept a strong pace in the third quarter this year, the International Tropical Timber Organization (ITTO) revealed in this September 2018 report. “A significant amount of tropical sawn wood arrived into the EU from Cameroon in the third quarter of 2018, taking the total import from that country in the first nine months to 186,500 MT, almost exactly equiv- alent to the same period in 2017,” the report read. Meanwhile tropical sawn wood im- ports from nearly all other leading suppliers were stronger in the first 9 months of 2018 compared to the same period last year, including from Malaysia (+14% to 81,600 MT), Brazil (+20% to 73,700 MT), Gabon (+19% to 70,800 MT), Congo (+6% to 34,800 MT), Indonesia (+82% to 12,700 MT), Ghana (+8% to 11,000 MT), DRC (+7% to 9,700 MT) and Myanmar (+64% to 6,900 MT). These gains offset declining imports from Côte d’Ivoire (-9% to 21,000 MT) and Suriname (-20% to 4,100 MT).

Veneer exports to EU grew by 30% between January and September 2018 Over the first nine months this year, EU’s tropical veneer imports fell by exports, ahead of Côte d’Ivoire (+14% Cameroonian wood veneer’s exports 6% to 103,800 tons over the period to 22,700 tons) while Congolese and towards the European Union rose by reviewed, primarily driven by a 17% Ghanaian exports stabilized at 7,800 30% to 14,200 tons, the international drop in imports from Gabon (45,000 tons and 4,000 tons respectively, over tropical timber organization (ITTO) tons). the period. reported. Cameroon thus achieved the strong- Yet, the international body said, est performance in tropical veneer

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 59 ITC & TELECOM Carrefour partners with Jumia for e-marketing in Cameroon Adialea, a joint venture between Cfao and the mass-market retailer Carrefour, announced November 26 it is partnering with Jumia, Africa’s larg- est E-commerce player, to ensure the online distribution of its products in Cameroon, Côte d’Ivoire and Senegal. “Carrefour brand products are highly appreciated by consumers in our vari- ous Carrefour or Carrefour Market out- lets in Abidjan and Douala. Today, we are pleased to offer a new distribution channel to our customers and benefit from the development of e-commerce in Africa,” commented Jean-Christophe Brindeau, CEO of Cfao Retail. The new agreement will see the distri- bution of Carrefour products via Jumia platform starting in 2019, according to an official statement. For the time being, Carrefour has only one outlet in Douala, the Cameroonian economic capital, and aims to open a second space in Yaoundé the capital.

Orange and MTN launch a Mobile Money joint venture Mobile operators MTN and Orange sub-Saharan Africa’s 46 markets,” in- scale digital financial services across inked last November 22 the creation cluding Cameroon where this market Africa, faster, to everyone-including agreement of Mowali (mobile wallet segment is presented a new growth the poor,” said Kosta Peric, deputy interoperability) to allow interopera- driver for the local subsidiary of director of Financial Services for the ble payments across Africa. Orange group. Poor, at the Bill & Melinda Gates This means, MTN’s mobile money The initiative is expected to Foundation. users can soon transfer money to reduce the service cost in Let’s mention that the joint venture Orange’s MoMo subscribers in real Cameroon. “Interoperability of digital announcement occurs a few months time, and vice versa. “Mowali will payments has been the toughest hurdle after the Bank of Central African immediately benefit from the reach for the financial services industry Countries Beac authorized the of MTN Mobile Money and Orange to overcome, in support of financial mobile operator Nexttel to launch its Money, bringing together over 100 inclusion. With Mowali, Orange and MoMo service called Nexttel possa, million mobile money accounts and MTN deliver a solution that will in partnership with the local branch mobile money operations in 22 of enable them, and other companies, to of Nigeria’s UBA group.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 60 ITC & TELECOM

Bolloré finances a start-up incubation project

Ecolia Labs, an association of to orient young people towards a Tech hub in the Cameroonian Cameroonian startup owners, signed digital entrepreneurship. In concrete economic capital. on November 23, a CFA10 million terms, Ecolia Labs and its partner According to its promoters, the financing agreement with the Bolloré aim to train (at the end of the 1st initiative targets students and job group in Douala, official sources year) 1,000 young people in digital seekers. It is part of Cameroon’s reported. professions, incubate 100 start-ups, digital economy development. It covers the first phase of a project create 500 direct jobs, and install

Cameroon: 15% of youth aged 15+ own a Mobile Money account, compared to 6% in Nigeria 15% of young Cameroonians aged at least 15 have their own Mobile Money (MoMo) account, making the largest Central African economy a top-list- ed country in terms of financial inclusion through e-money on the continent. Cameroon comes behind South Africa where 19% of the focus population own a MoMo account, against 6% in Nigeria. Launched in Cameroon in 2011 by mobile operators in partnership with local banks, the MoMo service is increasingly expanding with thousands of outlets on the territory. Let’s mention that the Cameroonian tax author- ities planned to use the MoMo service for property tax payment. This year, the Ministry of Secondary Education used the service for the payment of fees related to official examinations.

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 STOPBLABLACAM.COM 61

Yes, this December 2018, the defence ministry launched applications for training in French military schools

A release allegedly published by The French schools where successful successfully completed at least two Cameroon’s defence ministry is applicants are to be trained are the years in a higher education institute. being shared on social media since Special Military Institute of Saint Cyr The written pre-screening exams will December 13, 2018. According to the in Coëtquidan, and Lanvéoc-Poulmic be held on January 15-16, 2019 at the said release, Cameroonians (both naval school. examination centre in Yaoundé at 7 male and female) willing to join the Applicants must be Cameroonian, AM. The screening tests will be held defence forces are invited to submit single without dependants, enjoy on March 12-14, 2019 at the examina- an application for a competitive citizen rights, be free from infectious tion centre and only applicants who examination to be admitted into diseases, be deemed fit by a military passed the pre-screening test will be French officers training schools. The doctor and be proficient in English. eligible to participate. The complete said document is accurate. A check In addition, they must be at least 18 application files should be received at the defence ministry helped us years old and 23 at most by January at the human resources management confirm that this examination would 1, 2019. They should also hold a bac- of the defence ministry by January indeed be organised on March 12-14, calaureate (the major does not mat- 10, 2019 at 4 PM the latest. 2019 at Yaoundé defence college, ter) or a GCE/AL with at least two which is the only examination centre. subjects (religion excluded) and have

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 62 STOPBLABLACAM.COM

No, government didn’t increase wages for public servants this month December 2018

Since the evening of December 11, revealed that the document is clearly failed to ensure consistency 2018, social media users have been indeed fake. There was no salary between the subject of the order and sharing a document dated December hike. In terms of form, we can note the imaginary articles. 10 and reportedly signed by Prime an asymmetry between the title of As for the substance, in practice, it Minister Philemon Yang. the “ministerial order establishing is the President of the Republic who “This decree sets the framework for a the professional framework for the proceeds with the salary increase 20% increase in the base salary of civil special recruitment of teachers in and not the Prime Minister. Further, servants in the Republic of Cameroon State universities for the 2019-2021 specialists at the Ministry of Finance as of February 2019,” the document financial years” and article 1 of the explain that wage increases in the stated, making many state agents false document, which refers to “the Cameroonian civil service are made very happy. 20% increase in the basic salary of on basis of the index point and not However, a careful examination civil servants”. The fake document the base salary.

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 STOPBLABLACAM.COM 63

Yes, it is now forbidden to slaughter cattle less than 24 months old in Cameroon

Up till now, Cameroonians were According to the decree n°2018759 slaughterhouse in case of an accident, used to the sight of herdsmen of December 10, 2018, signed by the sterility or disease deemed incurable, leading their herds of young cattle. president Paul Biya, “the slaughter confirmed by a sanitary certificate de- Cameroonians are also accustomed or the commercialization of beef livered by a livestock services division to seeing those herdsmen taking cattle less than 24 months old is agent”. their herds to slaughterhouses. prohibited”. According to the ministry of live- However, for those who do not know, But, there is an exception. Article 47 stock, the production of meat in since December 10, 2018, slaughter- (2) of the same presidential decree Cameroon rose by 9.78% from ing young cattle is now banned by stipulates that “bovine less than 313,000 tons in 2011 to 344,000 tons the law 24 months old can be admitted in a in 2016.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 64 STOPBLABLACAM.COM

No, SDF is not changing its name

John Fru Ndi’s Social Democratic Front (SDF) is not changing its name. The ambition of the party (whose motto is “Power to the people”) is just to become “the Original SDF (OSDF)”. “The party must return to the population and not remain at the business of an elite where you pay for so and so position”, the party’s communicator explained. “SDF must not be considered as a party for friends. Let every member favor field works”, the communicator added. SDF renowned as the main opposition party in Cameroon is obviously going through hard times with a decrease of its political power. Internal battles within the party were accentuated by the poor score of its candidate during the presidential election of October 2018.

Excuses According to the results announced by the constitutional council, Joshua Osih was the fourth out of nine can- didates with 3.35% of the votes. This represents a poor performance for the eternal number 2 for presidential elections. Because of this result, in- ternal meetings were conducted and a press conference was organized on November 21, 2018. During this meeting with the media, the general secretary of that party was blunt. “Let me on behalf of the party and the executive national committee ask for the forgiveness of millions of Cameroonians, who always believe in SDF, for the poor performance during this presidential election”, he said. By announcing SDF’s return to the roots, the party is committing “to solve the anglophone crisis, establish federalism as the new form of state, federate electors to guarantee altern- ance at thehead of the state”.

BUSINESS IN CAMEROON N° 70-71 / December 2018-January 2019 STOPBLABLACAM.COM 65

Yes, Lady Ponce got married last month

Singer Lady Ponce (Adèle Rufine Ngono) just celebrated her wedding this Wednesday November 21, 2018 in France. The couple wanted a most intimate and almost secret ceremony. After the announcement of the happy event on her Facebook account, her press agent (in Cameroon) deleted the post imme- diately afterward, leaving many fans without concrete news. However, several credible sources confirm that the singer indeed got married to a business man and cultural promoter named Youmbi Tsafack Aloys AKA “Dieu Cyclone”. We learn that guests were not allowed to use mobile phones to preserve confidentiality. This explains the absence of “pa- parazzi” images.

N° 70-71 / December 2018-January 2019 BUSINESS IN CAMEROON 66

LEADER OF THE MONTH

Cameroonian Christian Ngan who built a XAF1.2 billion beauty product factory in Cameroon now eyes West African market

Madlyn Cazalis, the company According to the Chairman & CEO of promoter’s own equity and funds founded some years ago by a young Madlyn Cazalis, this production unit raised from private investors. In 2019, Cameroonian, Christian Ngan, has spans over 2000 m² and currently the production capacity of the new just built a beauty product produc- employs 30 people. The plant plant will increase and it will employ tion plant on the road leading to represents an investment of about about 200 people, Chirstian Ngan Mfou, not so far from Yaoundé. XAF1.2 billion funded by both the announces. He also reveals that additional investments are planned starting from 2020 to “consolidate operation and fund international expansion”. “The goal for his Madlyn Cazalis and Kiana brands is to reach a production capacity of 3 million products per year and recruit a hundred collaborators by 2020”, the company explains in an official statement announcing the launch of the Mfou plant. For the time being, Madlyn Cazalis distributes 25 products via 200 sales points in Cameroon. The company also operates in Libreville (Gabon) and has a network of partners in a dozen countries; in Africa and Europe notably. “We have even shipped products to Hong Kong already”, says, with delight, the young promoter who was once listed on Choiseul’s “100 African economic leaders for tomorrow” ranking. In the short term, this manufacturer of beauty products aims to enter the Ivorian market. By the way, within three years, Madlyn Cazalis plans to invest XAF8 billion ($15 million) with its partners for the construction of a second production unit in West Africa. Madlyn Cazalis distributes 25 products via 200 sales points in Cameroon. Brice R. Mbodiam

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