An interviewwithIsaac Tamba of internationalcorporations of contributing tothesuccess 5 Cameroonians “Infrastructure remain remain “Infrastructure our priority until 2019” until priority our

June 2017 - N° 52 CAMEROON BUSINESS IN FREE -CANNOT BE SOLD management of miningdata management of Flexicadastre, forabetter MAJOR PROJECTS MAJOR AGRICULTURE INDUSTRY SERVICES FINANCE ENERGY MINING BUSINESSIN CAMEROON .COM Daily business news from Cameroon

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Yasmine Bahri-Domon

A bet on brilliant minds and infrastructures

As much as Cameroon wishes to attract foreign has been carefully structured and planned until investors to boost its industrial production in 2020. It focuses mainly on the development sectors like agriculture, infrastructures, mining and modernization of infrastructures. It is the and to modernize other profitable industries government’s permanent leitmotiv. Based on like telecommunications, services as well as the assertions of the managing director of the help its digital economy bloom, it is important department of economy, public investment to know that many Cameroonians are the pride planning at the ministry of economy, planning of the nation, which is the leading economy and land development (MINEPAT), our readers of the CAEMC (Central African Economic and will, in the pages of this edition, get to know Monetary Community) region, heading various the major infrastructure projects being devel- renowned international financial institutions. oped in the country. They will be able to truly High executives and top technocrats, trained grasp the importance of these projects towards in the best schools, both in Cameroon and Cameroon’s emergence in 2035. In a difficult abroad, they are many, young men and women, global economic context, the country has Cameroonians, to lead multinationals. Skillful developed a plan and acquired all the necessary and competitive, these made in Cameroon instruments to boost investments. For example, brilliant minds are the stars of the firms em- the nation is working to improve power trans- ploying them and subsidiaries they lead. They mission in order to connect populations and are well-known for their leadership, expertise, companies located in the remote areas to the inventiveness, creativity and sense of innovation. national grid, and also to insure actual power In this edition of Business in Cameroon, our sufficiency. A must for true industrial develop- team introduces you to some of these icons of ment which Cameroonians are expecting, in the Cameroonian private sector. Handpicked, line with President Biya’s greater achievements these self-made men are an anchor for investors or “Grandes réalisations” programme launched interested in profitable sectors of the economy… in 2011. Cameroon’s emergence depends largely on a greater power output expected starting It cannot be overemphasized enough, the from 2018 with the delivery the Lom Pangar, human factor is a true source of development. Memve’ele, Mekin hydropower dams and many Indeed, human resources in Cameroon are similar projects. highly selective and competitive. Having rapidly understood this, the government helps the You might have guessed by now. Power is one private sector face economic challenges such of Cameroon’s main economic challenges, both as State’s roadmaps, the implementation of the in the short and medium terms. Hundreds of DSCE (Strategic Document for Growth and millions of euros are being invested in new Employment) and the three-year emergency power projects. In the present edition, asides plan, which are the three main beacons of hydropower projects, gas and thermal power investment in Cameroon. Also, public spending plants are also covered.

N° 52 / June 2017 BUSINESS IN CAMEROON 4

CONTENTS

FOCUS INTERVIEW

08 • Cameroonians heads of multinationals 12 • Isaac Tamba “Infrastructures are our main 09 • Elisabeth Medou Badang, a Cameroonian mark priority until 2019” within the telecom group Orange 10 • Gwendoline Abunaw, a purebred banker at the head of Ecobank Cameroun BUSINESS IN CAMEROON 10 • Freddy Tchala, at the heart of the MTN network Publisher Stratline Limited 11 • Georges Wega, first African to manage the Publication Director Senegalese subsidiary of Sociéte Générale Yasmine BAHRI-DOMON

11 • Mathieu Mandeng presides over the future of Contributors Standard Chartered Bank in Mauritius Brice R. MBODIAM, Mamadou CISSÉ. Operator Médiamania Sàrl LEADER OF THE MONTH www.mediamania.pro Design : Jérémie FLAUX, Web : Christian ZANARDI, 34 • Issa Hayatou, former Translation : Schadrac AKINOCHO, Bérénice BAH CAF and FIFA President, Advertisement [email protected] becomes Chairman of In Cameroon the Cameroon Football Albert MASSIMB, [email protected] Tel : 00 237 694 66 94 59 Academy Printing Rotimpres, Aiguaviva, Espagne

Circulation STOPBLABLACAM.COM Albert MASSIMB, [email protected] Tel : 00 237 694 66 94 59 33 • Is there a Home Office tracking social Free – cannot be sold networks? www.businessincameroon.com - [email protected]

BUSINESS IN CAMEROON N° 52 / June 2017 5

PUBLIC MANAGEMENT P 16-19 FINANCE P 20-21

AGRIBUSINESS P 22-24 TRANSPORTATION P 25

ENERGY P 26-27 INDUSTRY P 28

MINING P 29 TELECOM P 30 SERVICES P 31-32

N° 52 / June 2017 BUSINESS IN CAMEROON 6 THE CAST

JAKOB SIDENIUS

The Cameroonian Minister of Transport, Edgar Alain Mebe Ngo’o, inaugurated on 18 May 2017 in Douala, the eco- nomic capital, the 3rd gantry crane of the port of Douala. This equipment, according to Jakob Sidenius, Managing Director at Douala International Terminal (DIT), the com- pany holding the concession for the container terminal at the port of Douala, this gantry crane “complies with the highest standards in terms of environmental protection: low CO2 emission and 30% less energy consumption compared to existing equipment”. According to the Managing Director of the Autonomous Port of Douala (PAD) Cyrus Ngo’o, “this equipment sched- uled in 2008, comes today mainly because of the necessary measures and the debates which took place, regarding the geo-mechanical stability of the dockside and its capacity to bear this third crane. This technical prerequisite having been completed in 2014, the application of the bill of specifica- tions, for this tool, was set in motion”.

HENRI EYÉBÉ AYISSI

The Cameroonian Minister of Agriculture, Henri Eyébé Ayissi,officially launched phase 2 in the Grassfields inte- grated participative development project in the North- Western region, valued at FCfa 29.4 billion; and the Mbappit Mount rural development project in the Noun, Western region, funded with FCfa 16.6 billion. This global funding of approximately FCfa 46 billion, which represents over 90% of the funding required for the implementation of the 2nd phase in these two projects, we learned, was provided by the Islamic Development Bank (IDB). Through various supports given to producers, these two projects aim to substantially increase the production of potato, maize, oil palm, rice and cassava in the North- Western and Western regions of Cameroon, to improve farmers’ income.

BUSINESS IN CAMEROON N° 52 / June 2017 7

MOHAMED ALAMINE KRISNI OUSMANE MEY

Appointed as Managing Director of the Société The Inland Revenue Administration of the Cameroonian Commerciale de Banque Cameroun (SCB Cameroun) Ministry of Finance will take a new step in June 2017 in the in October 2015, Mohamed Krisni is no longer in charge process to digitise its services, through the launch of the of this local subsidiary of the Moroccan bank group electronic tax declaration for the change of ownership for Attijariwafa Bank, we learned from reliable source. He was used cars, the Minister of Finance, Alamine Ousmane Mey replaced by his compatriot Mohammed Mejbar. announced in a press release. This the 2nd Managing Director to change in this In this regard, indicates Minister Alamine Ousmane Mey, Cameroonian banking institution since the dismissal of “registering operations for the import and local sale of used Jamal Ahizoune at the end of 2015. Logically, after his ap- vehicles will be done via a teledeclaration system on the pointment as head of SCB Cameroun, Mohamed Mejbar Inland Revenue Administration website. Related payments should have also joined the Board of Directors of Attijari will be done exclusively through bank transfers”. As a re- Securities Central Africa, an asset management company minder, the Cameroonian Inland Revenue Administration created by the Attijariwafa group and based in Cameroon, launched, a few years ago, a vast modernisation process, with a scope of action covering the Central African region. which includes digitising its services.

CYRUS NGO’O CHARLES METOUCK

During the commissioning ceremony of the 3rd gantry On 11 May 2017, the Special Criminal Court (TCS in crane of the port of Douala, on 18 May 2017, Cyrus Ngo’o, French), a special jurisdiction set up to judge those who the Managing Director of the Autonomous Port of Douala misappropriated public funds in Cameroon, issued a new (PAD), the public company in charge of managing this port ruling of adjournment and partial dismissal in the case infrastructure, announced that a coastal navigation service State of Cameroon vs. Charles Metouck, former MD of will be established between the port of Douala and the one Société Nationale de Raffinage (Sonara) and its co-accused. in Kribi, in the Southern region. In this new case, the former MD of Sonara, who is al- In other words, the deep-water port of Kribi (whose com- ready serving two prison sentences of 9 and 15 years, is missioning has been expected for at least 2 years now) be- accused, with some of his former colleagues, and mainly ing better adapted to berth larger vessel, which is not the the Chairman of this public company, John Ebong Ngolé, of case in Douala, will directly ship some goods to the port of allegedly embezzling over FCfa 60 billion, our sources re- Douala. As a reminder, also called short distance shipping, vealed. The case follows the use by the Cameroonian legal coastal navigation consists in transferring, on smaller ves- system of a report produced by the Contrôle Supérieur de sels, goods between two close ports. l’Etat, dating back to 2010, indexing Charles Metouck, and in which a first trial led to his conviction, on 21 October 2015, to a 15-year prison sentence.

N° 52 / June 2017 BUSINESS IN CAMEROON 8 FOCUS Cameroonians heads of multinationals

Some months ago, we revealed in Even more, it should be noted that virtuosos that the country produces this very magazine, the faces and these Cameroonian men and women for the pleasure of music lovers career paths of Cameroonians who all exert their leadership in the worldwide; but rather in sectors are excelling within international service sector, particularly finance which are at once sensitive and stra- financial institutions. At the end and telecom, which are certainly two tegic such as finance and telecoms. of the non-exhaustive inventory of of the most dynamic sectors and the In short, these crowned heads, these ambassadors flying high the main drivers in several economies sometimes trained in Cameroon, Cameroonian flag, emerged some these past years. who later enhance the visibility of interesting profiles, who are forging Simply put, through their responsi- multinationals beyond the borders of their paths, rather admirably, within bilities which they fulfil in a compe- their country, bring a sharp contra- multinationals, sometimes of global tent manner, these compatriots have diction to the belief that in Africa, standing. managed to board, without complex, in general, there are only “powerful These men and women from the high-speed train of innovation, men” in politics. Because, the profiles Cameroon, in addition to having effectiveness and efficiency, criteria you are about to discover prove that already succeeded in entering the which characterise multinationals in Cameroon, in particular, there are very closed and competitive circle of and just business in general, in this “powerful” women and men in the management in multinationals, ac- era of globalisation. As a result, these international private sector. tually became heads of subsidiaries managers elevate Cameroonian Brice R. Mbodiam which are for some of them, leaders expertise, not in football or music, in very specific sectors of activity. for example thanks to the bass guitar

BUSINESS IN CAMEROON N° 52 / June 2017 FOCUS 9

Elisabeth Medou Badang, a Cameroonian mark within the telecom group Orange On 31 May 2017 in the Maképé neigh- bourhood, in the suburbs of Douala, the Cameroonian economic capital, the Prime Minister, Philémon Yang, inaugurated the Orange Cameroun complex. An investment valued at approximately FCfa 16 billion, this complex is not only the location of the headquarters of the number 2 in the mobile telephony sector in Cameroon, but also the biggest data centre in Central and Western Africa. This jewel will certainly remain as the most important proof of Elisabeth Medou Badang’s time as head of the Cameroonian subsidiary of this French telecom group. “Orange chose Cameroon. I want to talk about what your country owes to Elisabeth Medou Badang, who fought so hard. When I lis- ten to the debates which often come up Since her arrival in the top management of Orange Cameroun, in December 2013, this Cameroonian has been taking on projects one after the other to better position the company she on respecting commitments, applying, leads on the local telecom market. drawing up bills of specifications, we must learn to appreciate this contribu- tion”, Bruno Mettling, CEO for Africa and the Middle East at Orange, even submarine cable; Elisabeth Medou known as Mobilis), being made a highlighted during the inauguration Badang is bursting with dynamism at Knight in the French National Order ceremony. the head of Orange Cameroun. of Merit. Indeed, following a decree Indeed, since her arrival in the top Dynamism and above all an array signed on 1st July 2013 by François management of Orange Cameroun, of Cameroonian skills that she also Hollande, the-then French Head of in December 2013, this Cameroonian asserts from 2010 to 2013 during her State, this ambassador of Cameroon has been taking on projects one after spell at the head of the Orange group received her medal from Anne de la the other to better position the com- Botswana subsidiary. Indeed, under Blache, then Ambassador of France pany she leads on the local telecom her direction, we read on the internet in Botswana, on 20 September 2013. market. From getting approval for 3G site of the French ambassador in On this occasion, Elisabeth Medou and 4G permits to rolling out these Gaborone, Orange Botswana “gained was presented as “a figurehead in the technologies the same year (March three points in profitability in two years telecommunications sector in Africa”, and December 2015), to the explo- and multiplied the launch of innova- whose “expertise and management sion of the Orange Money service, tive services, while contributing to the vision” have been tried and tested. An which today has close to 4,000 sales country’s development notably through opinion certainly shared by the jury points (and over 2.8 million users) a partnership with the University of of the Africa Telecom People Awards throughout Cameroon and a swipe Botswana, support to community (ATP Awards), 2014 edition. That year, card allowing its holders to use the organisations fighting against AIDs or indeed, the jury of this competition network of Visa-enabled automatic developing telecommunications access awarded the MD of Orange Cameroun teller machines in the country, for as many people as possible”. the trophy for Best Telecom Manager through the implementation of the All things which resulted in this in Africa. new brand identity of the company, or former Proparco manager, who joined BRM the ongoing deployment of the ACE Orange Cameroun in 1999 (then

N° 52 / June 2017 BUSINESS IN CAMEROON 10 FOCUS

Gwendoline Abunaw, a purebred banker at the head of Ecobank Cameroun 2017 the brand-new Managing Abunaw was fast-tracked to the po- Director of the local subsidiary sition of Deputy Managing Director of the Pan African banking group in 2015. Ecobank. Holding a MBA from the Since May 2017, this true banker London Metropolitan University, the inherited the management of a sub- newly promoted Director started sidiary of the Ecobank group which her banking career in 1998 as Risk has been posting rather laudable Analyst at Standard Chartered Bank. performances for the past 2 years, Between 2001 and 2003, she studied and which managed to leave the 5th in London, before joining the spot in the ranking of Cameroonian Ecobank Cameroun group upon banks, to become 4th bank in the her return, where she worked as country behind Afriland First Bank, Corporate Relationship Manager. A Bicec and Société Générale. year later, Gwendoline Abunaw is In February 2017, at the end of a recruited by Citibank, before return- general meeting of shareholders Former student in Banking and ing in 2011 to Ecobank Cameroun. held in Douala, Ecobank Cameroun Finance at the University of Buéa, Appointed Head of Corporate announced a net income before in the South-West regional capi- Banking and co-opted into joining tax of FCfa 13.8 billion in 2016, an tal of the country, Cameroonian the Board of the Cameroonian increase of 23% compared to 2015. Gwendoline Abunaw is since May subsidiary of Ecobank, Gwendoline Freddy Tchala, at the heart of the MTN network One year after his compatriot at the Orange group (Elisabeth Medou Badang), Cameroonian Freddy Tchala was chosen as Best Telecom Manager in African in 2015, by the jury of African Telecom People Awards. Though already at the head of MTN Côte d’Ivoire that year, the jury specified that the Cameroonian manager was rewarded for his work at the head of MTN Congo Brazza, which he had just left to lead the largest subsidiary of the South African group MTN International in francophone Africa. In Côte d’Ivoire since 2015, Freddy Catholic University of Central Africa market in Cameroon, coupled with Tchala is on his 3rd assignment as in Yaoundé, started his story with two stints as MD of subsidiaries MD of a subsidiary of MTN. He South African multinational. He was of the MTN group, which today was also MD of MTN in Guinea, also Marketing Director of MTN enable Freddy Tchala, former Brand from September 2008 to July 2011; Cameroon, from September 2005 to Manager at BAT (British American then in Congo Brazza, between October 2008. Tobacco) Cameroun (1999-2002), to July 2011 and June 2015. But it was Three years spent drafting up and still maintain MTN as leader in the in Cameroon, his country, where implementing marketing strate- Ivorian mobile market. this marketing graduate from the gies for the leader in the telecom

BUSINESS IN CAMEROON N° 52 / June 2017 FOCUS 11

Georges Wega, first African to manage the Senegalese subsidiary of Sociéte Générale In May 2016, the French banking it “finally celebrated an African as group, Société Générale, entrusted Head of a bank which remained very the management of Société Générale conservative in its senior manage- des Banques du Sénégal (SGBS) to ment”. Poached from UBA Cameroun Cameroonian Georges Wega. The in June 2014, where he was Managing latter, who until this promotion was Director, Georges Wega took charge Deputy Managing Director of Société of Operations at Société Générale Générale Cameroun, officially Cameroun in July 2014. took office a month later, after the A graduate of the University of validation of his appointment by the Quebec in Canada, Georges Wega regulatory body in the banking sector knows the financial world well. He in ECOWAS. successively worked for the financial Georges Wega’s promotion at SGBS branch of General Electric in Brussels was considered by the Senegalese and Amsterdam; for Barclays Bank aged the Cameroonian subsidiary press as a “mini revolution”, since, in London; then UBA, the Nigerian during 4 years, before joining Société as highlighted by local newspapers, banking group for which he man- Générale.

Mathieu Mandeng presides over the future of Standard Chartered Bank in Mauritius financial resources for the State, which led Mathieu Mandeng and Standard Chartered Bank to be appointed by the government, in early 2015, as co-arranger (with Société Générale) of a Eurobond of FCfa 750 billion, the very first in Cameroonian public finance history. But, aside from these actions with the State of Cameroon, Standard Former MD of the local subsidiary A former employee of Citibank, Chartered Bank was, during the of Standard Chartered Bank and Mathieu Mandeng left his mark Mandeng era, an important pro- former President of the Professional during his tenure at the head of the vider of funds for the Cameroonian Association of Credit Establishments Cameroonian subsidiary of Standard. economy, through important credits of Cameroon (APECAM), In 2013, year during which Standard granted to companies. This was the Cameroonian banker Mathieu Chartered Bank achieved “exception- case for the financial package creat- Mandeng leads, since September al” results as described by its MD, ed in the framework of the project for 2015, the Mauritian subsidiary of this same bank received from the the construction of the gas plant in Standard Chartered Bank. Recently, Minister of Finance, the prize for Kribi, which was then presented to he was even elected Vice-President “best seller of Cameroonian public se- the national banking world as a great of the association of bankers of curities” on the Central Bank market. first, considering the maturity of the Mauritius. An efficient contribution in raising loan which was 10 years.

N° 52 / June 2017 BUSINESS IN CAMEROON 12 INTERVIEW Isaac Tamba “Infrastructures are our main priority until 2019”

Managing Director of the Economy and Public investment planning department at the ministry of Economy, Planning and Land Development, this academic gives here his opinion on a recently released book on the DCSE (Strategic document for growth and employment), the government’s roadmap to achieve emergence by 2035. The official here also highlights choices made by the Cameroonian government in this framework, in a difficult global economic context.

Bisuness in Cameroon: Sir, after dedication, the minister shared with IT: I do not believe this is what the recently attending the dedication the audience some of its opinions books aims to achieve. If you read it ceremony for the book titled after the reading. We are indeed well, it is just a partial assessment “DSCE: how to achieve a two-digit satisfied because such contributions of the DSCE. It should be noted that growth?”, how do you perceive the are rare in our environment. Often, the DSCE is much more complex book? we get such contributions from our than it was presented in the book. It Isaac Tamba: As the minister of technical and financial partners, revolves around three main axes. The Economy said, we are very satisfied which are institutions such as the first is growth strategy. The second is about the book. Because any work, IMF, World Bank, the European employment strategy and the third is research or contribution which is Union or AFD. State’s strategic management. These likely to challenge our choices is three axes make a whole and the most welcomed. At the ministry of BC: Still in regards to the book, DSCE’s objectives must be under- Economy, we are willing to discuss do you believe there are things to stood with these axes in mind. economic matters. During the book’s change in the DSCE ? However, the book’s authors have

BUSINESS IN CAMEROON N° 52 / June 2017 INTERVIEW 13

Isaac Tamba, Managing Director of the Economy and Public investment planning department at the ministry of Economy, Planning and Land Development: “The first strategic pillar of its growth axis focuses of infrastructures. This axis was not picked randomly.”

focused only on the first axis and power outages. It is true that it is IT: This has nothing to do with the covered only two segments out of not in the past yet, but we have “big push” strategy. We based our five of the growth axis. We believe recorded some improvements. It strategy mainly on infrastructures. these two segments to be of minor is looking at these improvements 67% of the 2017 investment budget is importance. First there is the mod- that the President of Cameroon dedicated to infrastructures while 9% ernization of the production system. and his administration have goes into modernizing the produc- And here, it has also been partially decided to push on and invest tion system, which is the second covered. Next is regional integration more in infrastructures. We wished strategic axis. Other sectors, seven and diversification of exchanges. for the provision of an external over all under the DSCE, capture That is all I can say. Once more, I opinion regarding this initiative, to about 2%. You can see that there is sustain that the book provides only know if we are on the right track. no dispersion, what you see here is a partial and limited assessment of This would have helped question rather the concentration of efforts in the DSCE. ourselves about second-generation the sector which is most important projects on which the ministry of to us: that is infrastructures. That BC: So, according to you, what is economy is already thinking. Why ? is why I was wondering if what was the most important in the DSCE ? Well, because the first strategic axis being discussed here is really the IT: The DSCE combines politics, englobes first-generation only. DSCE, if they have actually read it? thinking and action or praxis as Therefore, a constructive criticism Or if they are confusing the DSCE’s it is known to Greeks. The first that informs us about our methods, objectives with the government’s strategic pillar of its growth axis sectoral choices, financing modes budgetary efforts? focuses of infrastructures. This axis is most welcomed. First, it should was not picked randomly. Indeed, be noted that that we have assessed BC: Considering all the crises if Cameroon is considered today first-generation projects, identified that Cameroon and other nations a resilient nation, it is because of our strengths and weaknesses in the region have experiences infrastructures. From 2010 up to and know that there is room for recently, should we not less focus now, infrastructures represented 67% improvement. on infrastructures and more on of the State’s budget as the govern- major sectors in order to achieve ment decided to focus on developing BC: Mr. MD, the book we are talk- by 2020, DSCE’s objectives ? infrastructures to bridge gaps that ing about puts into question the IT: We are progressing as we should. emerged after two decades of struc- government’s decision to opt for a Actually, the ministry of economy tural adjustment. “Big push” strategy which consists is the same in charge of the private In regards to power which is in investing in all sectors simulta- sector. This is an important detail, crucial, you might remember neously to insure growth… and you must consider it so to

N° 52 / June 2017 BUSINESS IN CAMEROON 14 INTERVIEW

Isaac Tamba: “Going even further, the minister of economy has decided to establish a policy to directly support the private sector.”

understand our priorities. From 2010 to 2017, we have put an accent on public investment. You may recall that in 2010, public spending’s share in the State budget was about 18%. Now, it is more than 30%. This falls under a voluntarist approach. The State has decided to boost growth which will later be spurred by private sector. And for the private sector to achieve that, some conditions must be gathered. I do not wish to discuss business tures sector to help private sector For example, in 2017, while forecast environment. You know very well bloom. We copied the model of coun- for economic growth in the region that Cameroon’s ranking the Doing tries situated in South-East Asia, stands at about 1%, Cameroon Business is not what we expected, which followed the same path we are stands out at around 4%. By invest- even if since 2016 there has been an on since 2010. A path which made ing in dams (Lom-Pangar, Mekin, improvement. The latter is mostly Cameroon an enviable economy in Membe’élé, etc.), it is so that private due to efforts made in the infrastruc- terms to growth. companies have access to power, and ensure that by 2018-19, all conditions are in place for the private sector to fully expand. We give them all our “That is why I was wondering if what support. Going even further, the minister of economy has decided to was being discussed here is really the establish a policy to directly support the private sector. DSCE, if they have actually read it? So let me reassure once again, choic- es made in the framework of DSCE Or if they are confusing the DSCE’s have nothing to do with dispersion. Infrastructures are our main priority objectives with the government’s until 2019. We are also developing key projects with some of our budgetary efforts?” partners. During political discussions

BUSINESS IN CAMEROON N° 52 / June 2017 INTERVIEW 15

“By investing in dams (Lom-Pangar, Mekin, Membe’élé, etc.), it is so that private companies have access to power, and ensure that by 2018-19, all conditions are in place for the private sector to fully expand.”

with these partners, we made sure objectives of the DSCE be revised? for national saving, it only needs that this decision will remain as it is. IT: The three-year emergency plan investment to boom. Presently, brain- developed by the President in 2014 storming is taking place to valorize BC: The main concern about was already in a way an adjustment national savings. We are working the DSCE has always been the to the DSCE. We are well aware of the with the ministry of finances to see mobilization of funding needed challenges we are up against since how to give life to the Douala stock to implement it. Indeed, aside 2014. We know they are not going to exchange. The oversubscription of that financing is getting harder vanish this year. During discussions bonds is proof that there is potential to obtain, Cameroon also has to with our partners, we received guar- which should be tapped into. deal with threats such as Boko antees that the funding gap present We need long-term resources and we Haram, a battle which costs a lot, since 2015 will be bridged between have Cameroonians who are willing a drop in prices of commodities, 2017 and 2019. We will then have to provide them to us. As done or the entry into force of economic some space to breath. elsewhere, why not negotiate with partnership agreements with the Also, the last bond sold by the State them to obtain these resources for European Union, which caused a was oversubscribed. Each time we 10 years, in order to rely less on the decrease in tax-custom revenues. sell a bond, it is oversubscribed. debt market? In sight of all these, shouldn’t the This means there is liquidity. As Interview by Brice R. Mbodiam

N° 52 / June 2017 BUSINESS IN CAMEROON 16 PUBLIC MANAGEMENT IMF insists on urgency to clean up public finance sector to put an end to the decrease in foreign exchange reserves in the CEMAC zone The International Monetary Fund create uncertainty, restrict invest- in the framework of a seminar (IMF), in its report on “Regional ments and could possibly generate addressed to media professionals Economic Outlook for Sub-Saharan even more important problems in in the sub-region, Kadima Kalondji Africa” published this month of May the future. assured that the community’s foreign 2017, notes that many countries, in “For the most affected countries, it exchange reserves were FCfa 6,000 2016, suffered from the sharp fall in is still urgent to clean up the public billion. But these reserves have commodity prices. finance sector to put an end to the since dropped to FCfa 2,000 billion, “This is particularly the case for decrease in foreign exchange reserves therefore an erosion of FCfa 4,000 countries exporting commodities, par- and offset losses in budget revenues, billion in 2016. ticularly oil exporting countries, such especially in the CEMAC countries”, The Representative of the IMF then as Angola, Nigeria and the countries repeats the IMF. The insistence of pointed an accusing finger at the fall in the Central African Economic and this global financial institution is in in revenues and oil exports as well Monetary Community (CEMAC)”, direct line with the alarm raised in as the explosion in public invest- indicates the IMF. According to this April by Kadima Kalondji, Resident ment expenditure in a difficult and report, the delays observed in the Representative of the IMF in unfavourable financial environment execution of necessary adjustments Cameroon. for oil-based economies. lead to an increase in the public debt, In 2010, while visiting Libreville Yaoundé and Paris are considering a meeting between Paul Biya and Emmanuel Macron Gilles Thibault, French Ambassador Biya addressed on 8 May a letter of to work, with him, towards maintain- in Cameroon was received, on congratulations to his counterpart. ing the goodwill between Yaoundé Tuesday 30 May 2017, by the The Cameroonian President then as- and Paris to open new horizons in President of the Republic, Paul Biya, sured his new peer of his availability their cooperation. for a meeting. On the agenda, an overview of the topics of common interest. Talking to the press after close to two hours of exchanges, Ambassador Gilles Thibault said that the election of President Emmanuel Macron and the parliamentary election sched- uled for mid-June 2017 were at the heart of the discussions with the Cameroonian Head of State. It should be noted that following the election of Emmanuel Macron on 7 May as President of France, Paul

BUSINESS IN CAMEROON N° 52 / June 2017 PUBLIC MANAGEMENT 17

In 1st semester 2017, France already granted 2.3 million Euros for humanitarian assistance in Cameroon The French Ambassador in young children. At Makary district Cameroon has just completed travel hospital, in Fotokol and Mafoufou, in the Far North. For his second trip they visited water, hygiene and in this region, Gilles Thibault went sanitation projects set up by the to Logone-et-Chari where he was NGO Solidarités International in accompanied by the Representative favour of Cameroonians displaced of the World Food Programme (WFP) by the conflict with Boko Haram, in Cameroon, Abdoulaye Balde. and vulnerable host populations. Gilles Thibault visited the border The trip of the ambassador ended post separating Cameroon from in Mayo-Kani, south of Maroua. At Chad as well as the fire station, Guidiguis, he went to meet young both benefiting from European people supported by the National Union funding. He also visited the Programme of Participative premises of food distribution set up Development (Programme National by the WFP in the town of Kousséri, de Développement Participatif - through a cash transfer system, that PNDP) in the development of their today allows assistance to be brought agricultural or animal breeding to 40,000 people throughout the projects, financed under C2D funds. region. A solution to promote employment The second day of the visit, the and reinsertion of young people French diplomat and Abdoulaye in the area. According to Gilles Balde went to the Goulfey district Thibault’s accounts, France has hospital, where nutritional activ- already allocated during the year ities set up by WFP and Action 2017, an amount of 2.3 million Euros Cameroon and Nigeria) to actions of Against Hunger (Action contre la (FCfa 1.5 billion) for humanitarian the High Commission for Refugees Faim - ACF) assist in the prevention assistance in Cameroon, besides (HCR) also to the tune of 2.3 million and cure of acute malnutrition in the regional contribution (Niger, Euros.

National Social Security Fund (Caisse Nationale de Prévoyance Sociale) wishes to achieve total paperless processes At the Assurtech forum, whose aim is operation. This should, at the end of number is called, he approaches the to put insurance providers in contact the 2013-2017 strategic plan, lead to computer with the high resolution with developers, Alain Noël Olivier total paperless processes, notably webcam and biometric terminal, to Mekulu Mvondo Akame, Managing archiving and courier. An integrated record his data in the Authentication Director (MD) of the National Social hospital management system has System. Security Fund (CNPS) explained in also been set up to significantly Finally, indicates the MD, thanks Douala on 31 May, how technological improve revenues. to its electronic address, as well as changes have contributed to mod- Furthermore, since December 2016, Facebook and Twitter accounts, the ernising the organisation he leads. highlighted Mr. Mekulu Mvondo CNPS can now handle its clients’ re- Since 2011, the MD indicated, elec- Akame, physical identification of quests quicker. During the year 2016 tronic management of documents beneficiaries of pensions are biomet- for example, 583 requests and claims and their automatic readability is in ric. Practically, when the pensioner’s were received and processed.

N° 52 / June 2017 BUSINESS IN CAMEROON 18 PUBLIC MANAGEMENT

Towards a 3rd trial against Charles Metouck, ex-MD of SONARA, condemned this time with Chairman of the Board, John Ebong Ngolé

of 15 years, for misappropriation of for 11 years, will face a 3rd trial. Since over FCfa 500 million of public funds. 23 April 2013, he is serving a 9-year The second case, whose pre-trial prison sentence for destruction of phase the TCS has just completed, documents. Some months earlier, he implicated not only Charles Metouck, had been surprised in his office, three but also among other high profile days after his dismissal, destroying people including John Ebong Ngolé, certain documents, concluded the Chairman of SONARA, expert in oil judges in the first Metouck affair. taxation Albert Léonard Dikoumé, Not only has the latter always or Ibrahim Talba Malla, MD of denied having destroyed company SONARA and MD of the National documents, but Mr. Metouck also Hydrocarbons Prices Stabilisation presented a document signed by the Fund (Caisse de Stabilisation des Prix Chairman of SONARA, John Ebong des Hydrocarbures - CSPH) at the Ngolé, which expressly authorised time of the facts. him to enter his former office on the According to the TCS referral and day of the incident, for a work meet- partial dismissal order dated 11 May ing with his replacement, Ibrahim 2017, the two last managers cited Talba Malla. On 11 May 2017, the Special Criminal benefit from a “dismissal” for “insuffi- Incarcerated in the Central Prison Tribunal (Tribunal Criminel Spécial cient charges” against them. Ibrahim of Buéa ever since, Charles Metouck -TCS), special court set up to judge Talba Malla, who benefits from this was transferred to Yaoundé central the purloiners of Cameroon’s public development by the investigating prison on 8 May 2013, following his funds, has issued a new order of judge of the TCS was serving on the summons to the TCS. This court had referral and partial dismissal in SONARA Board of Directors at the brought before itself the charges the case of the State of Cameroon time of the facts, in his capacity as against Mr. Metouck in the report of against Charles Metouck, former MD MD of CSPH. He had been suspected the Contrôle Supérieur de l’Etat on of the National Oil Refining Company in this matter, in company with other the management of SONARA. (SONARA) and his co-accused. members of the Board, of having Published in February 2013, this In this new affair, the ex-MD of wrongly received fuel expenses for report accuses the former MD of SONARA, who is already serving two having attended different sessions, SONARA of having caused a finan- prison sentences of 9 and 15 years, during the 2007-2010 period. cial prejudice of FCfa 26 billion to is accused, with certain former Regarding John Ebong Ngolé, still the Cameroonian refinery, through collaborators, and above all the COB COB of SONARA and Charles 20 management errors. For these of this public company, John Ebong Metouck, former MD of the only facts Mr. Metouck was stripped Ngolé; of alleged misappropriation of oil refinery in Cameroon, and the of his rights to run a company or a sum of more than FCfa 60 billion, co-accused who are Edinguele Cameroonian public service for reveals our sources. The first hearing Edinguele Jean Joule, Moue Mbeleck 7 years. of this new trial should take place in Michel, Yenwo Molo Godfrey and The 15-year prison sentence pro- the coming weeks. Nkengne Véronique, née Makamtse nounced on 21 October 2015 against The affair follows the use of a report Ngatcheussi; they see “sufficient Mr. Metouck by the TCS, only relates from the Contrôle Supérieur de l’Etat charges” gathered against them, “in to a part of this dossier, of which the dated 2010 by the Cameroonian legal a personal capacity and collectively”, second phase was completed last system, indexing Charles Metouck, for alleged misappropriation of more May, once again condemning Charles and whose first part led to his con- than FCfa 60 billion. Metouck, who this time finds himself demnation, on 21 October 2015 in In the coming weeks, Charles in the dock with the Chairman of Yaoundé, to a term of imprisonment Metouck, who managed SONARA SONARA.

BUSINESS IN CAMEROON N° 52 / June 2017 PUBLIC MANAGEMENT 19

Chadian oil The Cameroonian tax transit duties’ administration will launch in revenues in June 2017, the electronic tax Cameroon declaration for the change of drop by ownership for used cards

The Tax Authority at the close to Cameroonian Ministry of Finance will take a new step, in June 2017, in FCfa 2 billion its paperless services process, with the launch of the change of owner- ship electronic tax declaration for during used cars, the Minister of Finance, Alamine Ousmane Mey, announced st in a press release. 1 quarter In this regard, indicates Minister Alamine Ousmane Mey, “the registra- 2017 tion of import and local sales oper- which includes providing paperless ations for used cars will be done via services. This not only to facilitate a tele-declaration system on the Tax the process for taxpayers, by taking Authority’s website. Related payments advantage of the opportunities of- will be exclusively through bank fered by ICT; to secure revenues; and transfers”. reduce as much as possible physical As a reminder, the Cameroonian contacts between Tax agents and Tax Authority launched, some years taxpayers, which often open the door ago, a vast process of modernisation, to acts of corruption. During the first quarter 2017, revenues generated by transit duties for Chadian oil in Cameroon via the Chad-Cameroon pipeline peaked at Norway wants to intensify slightly over FCfa 9 billion, a decrease of FCfa 1.8 billion compared to the FCfa 10.8 billion collected over the economic cooperation with same period in the previous year. This drop in transit revenues is Cameroon, by opening a explained by the slowdown noted in the oil production in Chad, mainly due to the prices for this commodity consulate in Douala which have become less attractive The Cameroonian government not appear on the list of Cameroon’s on the international market for some just approved the appointment to main partners. months. Douala, the economic capital of the Incidentally, in addition to the Indeed, as highlighted by the Société country, of Mohamed Abdoulaye Norwegian actions in the educa- Nationale des Hydrocarbures (SNH), Diop as Honorary Consul of Norway tion and health sectors, particu- Cameroonian State-owned company in Cameroon, we learned from larly in Northern Cameroon, the in oil production, during the first authorised sources. The opening of a Cameroonian government signed in quarter of 2017, only 11.2 million Norwegian Consulate in Cameroon January 2017 a credit agreement of oil barrels of Chadian oil transited should help intensify exchanges FCfa 37.8 billion with the Norwegian through Cameroon, against a little between the two countries, whose bank Giek, to finance drinking water over 14 million barrels during the economic cooperation is rather tim- supply projects in the country. first quarter of 2016. id. Indeed, this Nordic country does

N° 52 / June 2017 BUSINESS IN CAMEROON 20 FINANCE BEAC disposes of more than FCfa 1000 billion of its investment portfolio in 2016 In its annual report 2016, the Bank This disposal was done three times. Finally, on 02 December 2016, a of Central African States (BEAC) ad- First on 29 June 2016 for an amount nominal amount of FCfa 243.3 was vises that the Trading Room Strategy of FCfa 380.65 billion. At the end of sold off. The nominal value of the Committee decided to sell about this operation, the nominal value of investment portfolio went, at the end FCfa 1,000 billion of its investment the investment portfolio went from of this operation, from 1,488 billion portfolio during the fiscal year. This 2,344 billion to 1,931 billion. Then, on to 1,304 billion. These different par- was done with a view of complying 30 August, it was a nominal amount tial disposals of the portfolio, claims with the requirement of the obligato- of FCfa 475.5 billion. The value of the BEAC, generated in total capital ry share of 50% of external net worth investment portfolio came down, gains of FCfa 230.65 billion. of the BEAC deposited in operating after the disposal to 1,488 billion accounts. against 1,931 billion previously. Ecobank bets on digital to boost financial inclusion in Cameroon partnerships with third parties. “The digital strategy in question directly promotes one of the main development factors of our economies, which is, fi- nancial and economic inclusion of the population. Ecobank will thus be able to reach and serve a greater number of clients in Cameroon, including those who do not have any bank account”, the bank explains. Already in 2016, the banking group highlighted, the digital transfor- mation enabled the company to consolidate its growth in 2016 with an increase of 23% in the earnings before tax (FCfa 13.840 billion) com- pared to 2015, and a rise in the equity yield ratio at 50%. In Cameroon, as in Africa in general, Ecobank is even The general management of Ecobank To exceed the rate of access to bank- considering merging a number of Cameroon announced in a press ing services of 20%, Ecobank indi- branches for a better digital opti- release that in 2017, the company is cates that it will capitalise on digital misation. The objective of the Pan focusing on digital channels to boost services such as “Ecobank Mobile African group is to serve 100 million the financial inclusion currently App”, internet banking for private clients by 2020 against the current estimated at 20% in the country, for a and corporate customers, the use of 11 million. population of over 20 million people. bar codes for payments, and banking

BUSINESS IN CAMEROON N° 52 / June 2017 FINANCE 21

The regulatory body in the Western and Central African insurance sector suspends the activities of Cameroonian insurer Samaritan The Regional Insurance Monitoring Commission (CRCA) of the CIMA (Inter-African Conference of Insurance Markets), the regulatory body in the insurance sector in Central and Western Africa, recent- ly suspended the operations of the Cameroonian company Samaritan. This suspension confirmed by the cancellation of the temporary au- thorisation granted to Samaritan in April 2016, as revealed by the pro-government daily, is a result of the indebtedness, which today peaks at roughly FCfa 4 billion, rendering it incapable of meeting its commitments towards insur- ance policyholders. As a reminder, the regional regula- tory body in the insurance sector has had its sights on Samaritan Insurance since 2012, year during which CRCA enjoined the share- holders of the insurance company to return the funds taken from the company’s accounts to develop other activities.

Compared to Gabon, Cameroonian Treasury bonds are popular on the BEAC market Cameroon and Gabon were present terest rate is 3.4% and the maximum, of Central Africa (CEMAC) had on the government securities market 4.1%. On its side, the State of Gabon already met on the BEAC market. of the Bank of Central African States was looking for FCfa 9 billion. Only, And that the favour of subscribers (BEAC), on 24 May 2017, to raise a the total amount of submissions was to the advantage of Cameroon, total amount of FCfa 14 billion. The was FCfa 3.7 billion. Thus, being a whose rate of subscription for the fact established at the end of this weak coverage ratio of 41.46%. And offer reached 266%, against 97% for raising of capital is that, compared paradoxically, the minimum interest Gabon. The Gabonese Treasury only to Gabon, Cameroonian Treasury rate proposed was 5.5% and the mobilised a little more than FCfa bonds are popular. Because, out of maximum, 5.8%. 6 billion out of the FCfa 8.5 billion the FCfa 5 billion sought, the country investiraucameroun.com already solicited, which moreover is, at an was able to raise FCfa 8 billion. noted on 24 May 2017 that, on last interest rate of more than 5%, against Being a coverage rate of the amount 10 May, these two countries of the 2.9% for Cameroon. auctioned of 160%. The minimum in- Economic and Monetary Community

N° 52 / June 2017 BUSINESS IN CAMEROON 22

AGRICULTURE

Dilapidated infrastructure and competition from China compromise cotton sector in Cameroon In the framework of the European Week, the town of Yaoundé just hosted a forum for experts to exchange about the cotton sector on the theme: “Development, challeng- es and perspectives of the cotton sector in Cameroon and support from partners”. The event organised by the European Bank of Investment, the European Delegation and the Support Unit to the National Payment Mandate Issuer of the European Development Fund was meant to not only highlight the value chain in the cotton sector and its contribution to the economy in the Greater North of the country. But also, to consider financing perspectives from development partners. This forum showed that the cotton sector in Cameroon is facing enor- mous challenges. With regards to the production, huge losses were recently registered due to the wetness of the cotton, depreciation of cotton seeds and soya stocks, and poor product sales. Sodecoton’s fleet of trucks and ton is currently processed in China importance for Cameroon and ginning and oil factories are dilapi- at much lower costs. especially in the northern areas, dated. There are frequent power cuts. Experts at the forum discussed about marked by high poverty rates and To find a solution to these failures, the lines of action to reorganise the suffering from lack of security. The Sodecoton’s financing needs were sector. These include increasing Cameroonian cotton area covers estimated at approximately FCfa production areas and improve 85,000 km2 with approximately 40 billion in the short term. mechanisation, intensifying the sus- 200,000 cotton producers, and a With regards to processing, the tainable management of soil fertility, production approaching 250,000 tons company Cicam is now the only tex- increasing cotton oil production per year. Over two million people tile industry in the CEMAC sub-re- capacities, promote cotton fibre and in Cameroon depend in one way or gion. While in 1985 it processed by-products such as refined oil and another on the cotton value chain. 85% of the cotton fibres produced cattle feed, investigate the creation The tax impact of the sector can be in the country, Cicam today only of a high-quality cotton brand “Made estimated at FCfa 30-40 billion/year represents 5% of the Cameroonian in Africa”. and the contribution to the GDP of market. Over 80% of the African cot- The cotton sector has a particular the northern regions is 8-10%.

BUSINESS IN CAMEROON N° 52 / June 2017 AGRIBUSINESS 23

Launch of the 2017 agricultural season in the North with a focus on reconstitution of the productive capital The Cameroonian Minister of by the Nigerian Islamist sect Boko about making available agricultural Agriculture, Henri Eyébé Ayissi, Haram, which, according to Henri inputs, various equipment and materi- just launched, in Maroua in the Eyébé Ayissi, disorganised “produc- als to enable the population to restart Far North, the 2017 agricultural tion systems” and caused “the dis- their activities, as we are heading for season in the three northern regions placements of the population” whose the provision of quality seeds, for farm- of Cameroon. This new season, main income-generating activities ers to be able to have sufficient quanti- specified Minister Eyébé Ayissi, is are farming and breeding. ties of seeds”, explained the Minister characterised by the “reconstitution of “In 2016 and 2016, we worked on of Agriculture, thereby revealing the the agricultural capital”. emergency solutions with the special actions which will enable, this year, Indeed, for over 2 years now, north- donation from the President of the the restoration of the agricultural ern Cameroon, particularly the Far Republic. We have now moved into sector in Northern Cameroon. North region, has been facing raids durable solutions. This is, in particular,

Cameroon will launch a development program for its horticultural sector with the support of the EU

The Cameroonian government Labelled “Fit For Market” (FFM), production dropped by 30,000 tons. will soon launch a development this programme is meant to support But according to Jeremy Knops, programme for its horticultural the horticultural sectors in African- Programme Director at Europe- sector, financed by the 11th European Caribbean-Pacific (ACP) countries, Africa-Caribbean-Pacific Liaison Development Fund (EDF), we whose main horticultural products Committee (COLEACP), in addition learned at the end of a workshop or- exported to European Union territo- to banana, Cameroon has other ganised in Douala on 16 and 17 May. ries are increasingly in demand. products such as sweet potato, The meeting, we learned, was meant These are particularly banana, with cassava, plantains, papaya or mango, to identify the levers on which it is Cameroon being the main producer which could also be exported to EU necessary to act, to give an impulse in ACP countries in 2015, before countries. to the development of horticulture in passing the leadership to Côte Cameroon. d’Ivoire in 2016, after the national

N° 52 / June 2017 BUSINESS IN CAMEROON 24 AGRIBUSINESS

PHP, leader in the Cameroonian banana market, is fearing “a disaster if prices do not increase”

Armel François, Managing Director Cameroonian bananas, is currently fuel allowances, car mileage, but also of Société des plantations du Haut over-supplied. Particularly due to the convenience overtime and other small Penja, subsidiary of Compagnie abundance of Latin-American dollar benefits taken from the company and fruitière de Marseille, which domi- bananas, whose producing coun- where senior management showed a nates in the production of banana in tries, this year, are not facing “any kindness which can no longer be the Cameroon, is visibly very concerned weather (el Niño, la Niña, cyclones case”, writes Armel François in the about the performance of PHP in and other tropical storms), tectonic editorial of PHP’s magazine. 2017. (earthquakes), volcanic, social or polit- As a reminder, according to statistics “(…) We have no option but to note ical phenomenon (…), which had not from the Association bananière that the banana market in Europe is happened for many years”, explains du Cameroun (Assobacam – largely below the figures used when the Armel François. Cameroon’s Banana Association), 2017 budget was being drafted. In oth- Therefore, to balance the company’s PHP exported 124,875 tons of banana er words, prices are low!”, announces accounts against this international in 2016, representing half the global the MD of PHP in the latest edition situation regarding banana prices, exports of Cameroonian producers of “Au Coeur de la PHP”, the quarterly the MD of PHP listed some austerity (249,610 tons). Beside banana, this bulletin of this agro-industrial unit. measures which are necessary to food company also produces Penja In this situation, the MD points out, implement. “The entire personnel of white pepper (approximately 40 tons “PHP’s margins are becoming very low PHP and each of us can and must per year), and just moved into cocoa, and the year could end up in disaster, contribute to the effort made by the with the creation of farms covering if prices do not increase and more company to adapt to these market 150 hectares and the construction of importantly if we do not do anything”. conditions. We will surely have to a processing unit producing choco- Indeed, we learned, the European forego some benefits without reconsid- late locally under the brand “Atelier market, main destination for ering the essential for the telephone, des cinq volcans”.

BUSINESS IN CAMEROON N° 52 / June 2017 25 TRANSPORTS

Japan releases FCfa 33 billion to start the 2nd phase of work on Yaoundé-Brazzaville corridor Louis Paul Motaze, Minister in of Cameroon. Especially since the “Above and beyond the fact that the charge of the Economy (MINEPAT), project was on hold, awaiting addi- said corridor will encourage trade be- proceeded, on 31 May 2017 in tional funding to start the second tween Cameroon and Congo, it should Yaoundé, with the signature of phase which comes to complete the be highlighted that it will equally exchange of notes which seals the construction of this corridor, whose contribute to facilitating economic mobilisation of FCfa 32.9 billion, first part was handed over at the integration in CEMAC and to the from the government of Japan for beginning of 2017. For a total amount economic development of Cameroon”, the development of the Yaoundé- of 104.7 billion, the co-financing declared Louis Paul Motaze. Who Brazzaville corridor (section of the African Development Bank added that, this trunk road would Mintom-Lelé, with a length of (FCfa 40.7 billion) in this project, improve projects already underway 67 Km). was raised on 15 April 2016. That of in agriculture and environmental Through this concessional loan, indi- the Development Bank of Central sectors among others, and produce cated the MINEPAT, Japan wishes to African States (20 billion) was on a synergetic effect in promoting rice show its desire to actively contribute 22 December 2016. As well as that of production and sustainable develop- to the socio-economic development Cameroon (13.9 billion). ment in the sub-region. Towards a partnership between Camrail and Italian company Italfer to modernise Cameroonian railways The concessionary train transport Manager of Development, visited the operator Camrail, subsidiary of work sites, by way of Ebaka quarry, to Bolloré, and the Italian company see what had been achieved. Italfer held a meeting on 31 May in The company Italfer S.P.A, for its Douala in respect of a partnership. part, represents a consortium of The final objective, according to Italian companies. It signed with the reliable sources, is that the tandem Minister of Public Works (MINTP), accelerate modernisation of the Emmanuel Nganou Djoumessi, railways in Cameroon. last April, an agreement linked During this meeting, Camrail indi- to renewing the existing railway cated that it has, for example, already lines (Douala-Mbanga-Kumba and renovated 175 km of lines between Douala-Yaoundé). The company has Batchenga, in the Centre, and Ka’a, in its specifications the supply of in the East region. In this regard, passenger rolling stock (passenger investment of an amount of FCfa 2.4 cars, railcars). It must also construct billion, enabled renovation of railway a passenger station at Yaoundé and ties, bi-blocks sleepers and ballast provide its support in the implemen- beds. In mid-May, Eric Melet, Bolloré tation of a training policy in railway Transport & Logistics General professions in Cameroon.

N° 52 / June 2017 BUSINESS IN CAMEROON 26 ENERGIE American Noble Energy will coproduce 47 billion m3 of natural gas and 18 million barrels of condensates on Yoyo block with SNH The Société Nationale des by Ernest Gbwaboubou (Minister Hydrocarbures (SNH – National of Mining) and Adolphe Moudiki Hydrocarbons Company) signed, on (Deputy MD of SNH), will increase 1st June in Yaoundé, with the Texan the visibility of the oil giant. The company Noble Energy, a production agreement between the State of sharing contract for 47 billion m3 of Cameroon and the American com- natural gas and 18 million barrels pany will run for 25 years, renewable of condensates on the Yoyo block, one time, for a period of 10 years. located in the Douala/Kribi-Campo Noble Energy is an important of the Gulf of Mexico. It additionally basin. American oil and gas company, carries out exploration and produc- Kelly Latter, Vice-President of with activities in oil and natural gas tion activities in countries such as Noble Energy, indicated that the production and exploration. It has Cameroon and Equatorial Guinea, signature of this contract with the onshore operations in the USA as and offshore operations in Ecuador, Cameroonian side represented well as operations in the deep waters China and Israel.

British Aggreko will install 10 MW of thermal power this coming July in Maroua, in Cameroon’s Far North Eneo, the public service conces- Cotonnière industrielle du Cameroun production, the Lagdo plant is now sionaire in the electricity sector in (Cicam), who have production units insufficient to supply in energy the Cameroon, owned by the British in this area of Cameroon; is the northern regions of Cameroon, investment fund Actis, recently reduction in electricity production by whose population has been experi- signed with Aggreko, an independent more than 50% on the Lagdo dam. encing a boom since 1982, when this power producer, a contract to install Indeed, according to authorised structure was commissioned. The from July 2017, a thermal plant of sources, the Lagdo dam plant, sole increase in the energy offer in the 10 MW in Maroua, in Cameroon’s Far major energy infrastructure in the country, for its part, officially grows North region. three northern regions of Cameroon, at an average rate of 5 to 6% every From official sources, this plant will only produces about 30 MW of elec- year. help in reducing the terrible energy tricity, out of an installed capacity of The hopes of the population in the deficit which the three northern 72 MW. Greater North regions of Cameroon regions of Cameroon are currently Experts attribute this decline to the are therefore focused on the an- going through, where almost all dam’s reservoir being choked with nounced construction of the Bini towns are without electricity two to sand, which is not able to retain dam in Warak, in the Adamawa three times a week, between 6am and enough water, and the unfavourable region, a structure which will be able 10pm. climate conditions, with limited to produce an additional 75 MW by At the origin of this detrimental rainfall as a consequence. the end of 2018. The construction situation for households as well as Incidentally, advised sources repeat, works are carried out by Sinohydro, companies such as Sodecoton and even in a situation of optimum based on a Chinese financing.

BUSINESS IN CAMEROON N° 52 / June 2017 ENERGY 27

State of Cameroon asks Chinese bank ICBC for financing to renovate ageing Lagdo dam During a visit in the North on 29 May 2017, Basile Atangana Kouna, Minister in charge of Water and Energy (Minee), declared that he was made aware of the obsolescence of the Lagdo hydroelectric dam. “I had a full renovation study of the Plant carried out, with the option of increasing its capacity from 72 MW to 80 MW. The estimated cost for this op- eration is FCfa 100 billion”, declared the government member. According the entire region. This will bring 75 MW to the to him, procedures are underway “But with the demand growing by 7.8% Northern grid, which exceeds the at the Ministry of Economy, to raise on a yearly basis, 72 MW of maximum current capacity needed at peak funding. The Minee revealed that, power has already been reached this times. Therefore, in reality, with the he recently supported the Prime year. This is to say that the infrastruc- upcoming commissioning of this Minister, Philemon Yang, in China ture has almost reached saturation structure, the RIN should have a large to present the Lagdo renovation at the electromechanical level, and excess in terms of installed energy project to a Chinese bank, ICBC additionally, at the operating level, capacity. (International and Commercial Bank filling the reservoir depends on the Apart from this solution, the Minee of China). vagaries of the weather and environ- announced that the concessionaire During this visit, Joël Nana mental hazards. Studies have shown Eneo would install and commission, Kontchou, General Manager of Eneo a silting which is natural, due to the at the latest by July 2017, a 10 MW Cameroon, the company in charge period of operation and geotechnics of thermal plant in Maroua. All related of the electricity sector explained the soil in this region”, indicated the contracts have already been signed that, since its commissioning in 1963, MD of Eneo. with the company Aggreko. In the Lagdo has been the main source of While the funds are being raised medium-term, Eneo will build two production in the Northern Grid to renovate the Lagdo dam, Basile solar power plants in Maroua and (Réseau Interconnecté Nord - RIN). Atangana Kouna mentioned short- Guider, with respective capacities of With an installed wattage of 72 MW and medium-term solutions. He 15 and 10 MW, thus 25 MW in total. and only one reservoir, it could in the talked for example about the Bini The tender processes are already past cover the electricity needs for project in Warak in the Adamawa. underway.

Cameroonian Nyong Power Plants Corp will generate 250 MW of electricity on the Nyong The Cameroonian company Nyong of 3.5 billion m3 storage capacity leader in the production of hydro- Power Plants Corporation (NPPC) which will connected further up to electric energy. This company was signed on 1st June in Yaoundé, an a back bone network from Edéa. represented by Charles Laurent agreement with the Cameroonian Concerning financing, this structure Mouvet and Baena Del Alberto government to produce 250 MW of will cost between FCfa 500 and 550 Carlos at the ceremony for the sig- electricity in the framework of the billion, with the associated power nature of the master agreement with “Song-Mbong/Kelempeck Hydro transmission lines. To accomplish Basile Atangana Kouna, Minister of Project”. Said project will be devel- this, the company NPPC said it Energy. Among other international oped on the Nyong River. will be working with a selection of partners, there is Finergreen France, According to the explanations of national and international partners. the financial consultancy firm for the Paulin Etoga, Project Coordinator, Paulin Etoga lists for example Swiss project. on the technical side, a reservoir Hydro Operations International, a

N° 52 / June 2017 BUSINESS IN CAMEROON 28 INDUSTRIE Société des Eaux Minérales du Cameroun posts net loss of FCfa 316 million as at 31 December 2016 The Water Company of Cameroon register the downward trend of the mances. And yet, the company indi- (Société des Eaux du Cameroun - first six months 2016. Indeed, the cated last year that it would develop SEMC), subsidiary of the Société subsidiary of SABC had experienced sales ex-works and reduction in final Anonyme des Brasseries du a significant decrease in net income: distribution costs in order to remain Cameroun (SABC), announces that it from FCfa 207 million as at 30 June competitive in the market. In other will table, to the Board of Directors, 2015 to -FCfa 66 million at 30 June terms, it would develop a system next 7 June in Douala, a resolution 2016. A decrease mainly attributed that would require customers to pay according to which, it posts a net to the hike in fixed costs of FCfa 132 all the costs of transport, customs loss of FCfa 315.9 million as at 31 million and depreciation of FCfa 128 charges and bear the risks linked to December 2016. million the transport of goods to their final The logical consequence of this During the Board of Directors’ meet- destination. Which, manifestly has loss, according to SEMC, is that the ing next 7 June, they are expecting not changed the declining trend of credit balance of FCfa 113.9 million the new impetus of SEMC which did performances. becomes a debit balance of FCfa not succeed, as promised in June 202.07 million. Performances which 2016, to reverse the negative perfor- Sodecoton in need of Fcfa 40 billion in investment to run at full capacity the European Union in Cameroon. To revert this downward trend in its activities, Mohamadou Bayero re- vealed, Sodecoton needs investments estimated at FCfa 40 billion, includ- ing FCfa 11 billion to be released in emergency by the shareholders of this company, with the most impor- tant being the State of Cameroon. The funding, we learned, will not only mainly help with the upgrade of Sodecoton’s industrial equipment, but also its mobile equipment which has become old and insufficient. Despite these difficulties, the Due to the obsolescence of its equip- 200,000 tons, against an installed ca- Northern Cameroon agroindustry ment, the Société de Développement pacity of 350,000 tons, Mohamadou giant is planning for a cotton produc- du Coton (Sodecoton – Cotton Bayero, MD of Sodecoton, revealed tion of 248,150 tons of cotton grains Development Company), agroin- recently. This was during a Forum during the current 2016-2017 season, dustry giant in Northern Cameroon, on the cotton sector organised on 10 against 258,000 tons produced had to lower the production capacity May 2017 in Yaoundé, as part of the during the previous season. of its nine cotton ginning units to activities celebrating the 60 years of

BUSINESS IN CAMEROON N° 52 / June 2017 29 MINES

Cameroon will launch “Flexicadastre”, an IT system to guarantee the management of mining data

The Ministry in charge of Mining Ultimately, this IT system should mining, agro-industrial … etc.), and Technological Development work to guarantee a good manage- mining permits encroaching on each (Minmidt) advises that it will launch ment of mining data and ensure that other, extremely long waiting periods online in July 2017, “Flexicadastre”, a awarding procedures are transparent for investors, the mining permit computerised version of the mining and reliable. registry not being updated, a lack of registry. Yet, Mr.Olinga Moantsoga notes mining registry map, etc. Based on the presentation of Georges that Cameroon is considered as a “Flexicadastre” was created with the Luc Olinga Moantsoga, Deputy geological scandal area due to the support of a South African consul- Director of the Mining Registry, great diversity of its mining potential. tancy firm, Spatial Dimension. This “Flexicadastre” is “the expression of There have however been many tech- firm set up this application in over the commitment of the government to nical and administrative weaknesses ten countries worldwide. Including promote and encourage investments in in mining its many deposits. These in Côte d’ivoire, Democratic Republic the sector, so as to further contribute to shortcomings include overlaps of Congo, Guinea Conakry, Kenya, the economic and social development”. between various permits (logging, Tanzania, Mozambique, Peru, etc.

N° 52 / June 2017 BUSINESS IN CAMEROON 30

TIC & TELECOM CRTV, the Cameroonian public television is getting ready to broadcast in streaming on internet Charles Ndongo, Managing Director He specified that this request for in line with CRTV’s policy in place (MD) of the public Cameroonian proposals is open to Cameroonian since 2016 as part of the digital move. broadcasting channel, CRTV, just companies. The deadline for submis- The public broadcasting channel launched a national open call for sion is set for 6 June 2017. is planning to move from “broad- tenders for the implementation of an Visibly going through a modernisa- casting”, open to the entire world internet TV streaming solution. tion process, CRTV, as announced by to “narrowcasting”, with targeted The projected cost of the operation Charles Ndongo in February, should viewership. The opening of a local ra- after preliminary studies is FCfa open, in 2017, two new specialised dio in Kribi, the Southern Cameroon 17 billion, according to the MD. TV channels. An expansion which is seaside town, is also expected.

Lagging behind compared to MTN and Orange, Express Union promises 40% commission on Mobile Money service charges The Cameroonian microfinance outfit Express Union (EU) which has lagged behind telecoms operators MTN and Orange in Mobile Money since 2011, has just launched an offensive aiming to entice. To this end, Express Union, is actu- ally inviting traders, credit retailers (call-boxes), dealers, hairdressers, shop keepers and economic opera- tors to join the network of franchise/ the different types of transfers. duopoly Orange-MTN. retailers of the service “Express Considerably more, Express Union As a reminder, the Telecoms Union Mobile Money”. The micro- Mobile is proposing a commission Regulatory Body in Cameroon finance company promises up to nearer to the 50% that the Union indicates that, since its launch in 40% in commission on charges in of Delegates and Commercial 2011, this sector recorded up until the form of micro credits to develop Distributors of Telecom Products in 2014 transactions totalling FCfa 72 subscriber activities. Cameroon (Syndicat des Délégués billion. This amount corresponds to The offer of EU appears enticing be- et Commerciaux Distributeurs des 9 million transactions via SMS. To cause it is higher than the percentage Produits des Télécommunications date, more than 6,000 Mobile Money of 5% that call-boxes, for example, au Cameroun - SYDECDIPROTEC) payment points exist throughout receive from MTN and Orange for claim, often through strikes, at the Cameroon.

BUSINESS IN CAMEROON N° 52 / June 2017 31

SERVICES Bureau Vallée, leader in the office furniture and discount stationery sectors in France, is coming to Cameroon furniture and stationery operator, who now has 22 branches outside France, including 16 in Spain and four in Belgium, can be explained by the opportunities offered in the sup- ply of office equipment in Cameroon, a service which represents a sizeable share in the operating budgets of companies and especially the public administration on a yearly basis. Bureau Vallée thus enters a market which at the same has potential for growth and is also competitive, where the French firm could quickly find a place, as it specialises, we learned, in offering discounted The Cameroonian office furniture market, who chose the city of Douala prices, which logically should be and stationery market just welcomed in Cameroon, for its first shop in extremely competitive compared to a new operator, and not the least. Africa, we learned from reliable the ones currently offered om the This is the company Bureau Vallée, sources. local market. presented as the leader in the French Choosing Cameroon, for this office

Issa Hayatou, former CAF President, appointed Chairman of the Board of the National Football Academy of Cameroon On 24 May 2017, the Cameroonian team of Cameroon, unfortunate to this academy are: initiation Head of State, Paul Biya, appoint- finalist at the latest edition of the and supervision of the youth in ed his compatriot Issa Hayatou AfCON organised in Yaoundé and the practice of high level football, as Chairman of the Board of the Limbé in 2016. initial and continuous education of National Football Academy (Anafoot) Unfortunate candidate to his own trainers in theoretical and practical of Cameroon. succession as Head of the African football education, development of This public institution, promised by Confederation of Football (CAF) national expertise in football-relat- the Head of State in his speech to the which he managed for 29 years, ed professions, collection, storage Cameroonian youth on 10 February Issa Hayatou, now honorary Vice- and distribution of documentation 2010, will have as its Managing President of FIFA; will bring his related to football, as well as primary Director Carl Enow Ngatchu, coach experience to Anafoot. and applied research in professions of the women’s national football As a reminder, the missions given linked to football.

N° 52 / June 2017 BUSINESS IN CAMEROON 32 SERVICES

Scientists develop Loascope, an instrument that measures the level of onchocerciasis infection Teams at the Institute of Research of serious secondary effects (which three minutes) of the level of Loa for Development (IRD) and the is the case in more than 95% of the loa infection with a drop of blood Centre of Research on Filariasis and population), treatment by the drug taken from the tip of a finger. This other Tropical Diseases (Centre de “Mectizan” can be administered. instrument, the Loascope, is made Recherche sur les Filarioses et autres On the other hand, if the person up of a small optical magnifying Maladies Tropicales - CRFILMT), presents a very high level of infec- device linked to a smartphone. It is have completed an innovative strate- tion, they are not given Mectizan and thus perfectly portable and adapted gy in Cameroon opening the door to an alternative individually-tailored to field usage conditions. In 2015, the the eradication of onchocerciasis in treatment protocol is proposed Test and Treat strategy allowed more the forest areas of Central Africa. (establishment of such treatment, than 15,000 people to be treated in The researchers thus developed be- which is spread over four weeks, the Okola health area, in the Centre tween February and May 2017 a tool cannot be envisaged for all the popu- region of Cameroon, without any that allows measurement in every lation). Thus, this strategy combining cases of serious secondary effects. individual, of the level of infection an initial test before treatment is This first phase showed the feasibility by Loa loa in order to ensure that called Test and Treat. of such a strategy in the framework the treatment is without risk. If the The project team perfected an of treatment on a large scale. infection is not found or if it exists instrument allowing precise and below a level where there are no risks quick measurement (in less than First contemporary art gallery opens in capital of Cameroon the renovation and construction of the building housing the new gallery were carried out as part of the Debt reduction and Development Contract (C2D) between Cameroon and France. According to the comments given by the French diplomatic representation, this new space now offers to young Cameroonian artists the possibility of exhibiting their works and a platform to exchange. Starting from 30 May and this until 31 July 2017, this gallery is hosting an exhibition entitled “Journey(s), contemporary art in Cameroon”, bringing together 23 Cameroonian artists. The event gathers the works of experienced artists and young talents, from every artistic discipline: painting, sculpture, photography, The first contemporary art gallery of and the French Ambassador in drawing, video. The forty-odd works the city of Yaoundé was inaugurated Cameroon, Gilles Thibault. on exhibition therefore offer visitors on 30 May by the Minister of Arts Undertaken by the Cameroonian the picture of a lively, diverse and and Culture, Narcisse Mouelle Kombi government and the French embassy, original artistic creativity.

BUSINESS IN CAMEROON N° 52 / June 2017 STOPBLABLACAM.COM 33

Is there a Home Office tracking social networks?

A message currently shared advises that all telephones are connected to a government device. Is there any truth to this?

A message shared on social networks is no measure taken to “connect all that the intelligence job is rather announces a new regulation from device to the system of a ministry” as taken up by the National Security the Home Office. It advises that all suggested by the message currently Agency (Direction générale de la communication platform are under shared. Sécurité nationale - DGRE) and is surveillance. Firstly, there is no Home Which brings about a wave of para- rather selective. “We cannot monitor Office in Cameroon. Philémon Yang’s noia. Especially as said message asks every Cameroonian”, says our source. government rather has a Ministry of to avoid “talking about everything Moreover, to counter terrorist at- External Relations and a Ministry of with your close relations on the tele- tacks, there is indeed a law regarding Local Administration. phone. All social networks are being communication content. And a source working for one the two monitored”. administrations indicates that there We learned from a reliable source M.N.M.

N° 52 / June 2017 BUSINESS IN CAMEROON 34

LEADER OF THE MONTH Issa Hayatou, former CAF and FIFA President, becomes Chairman of the Cameroon Football Academy During the past four decades, ucation; developing national exper- he was the most honoured tise in football-related professions, Cameroonian in Pan African and collecting, storing and distributing international institutions. documentation related to football; as well as primary and applied research On 24 May 2017, the Cameroonian in professions linked to football. Head of State, Paul Biya, appoint- ed his compatriot Issa Hayatou This roadmap, at first sight, suits as Chairman of the Board of the both young Carl Enow Ngachu National Football Academy (Anafoot) and Issa Hayatou, a real titan in of Cameroon. This public institution, the African and worldwide foot- promised by the Head of State in his ball sector, who over a period of speech to the Cameroonian youth 29 years, cumulated eight con- on 10 February 2010, will have as secutive terms at the head of the its Managing Director Carl Enow African Confederation of Football Ngatchu, coach of the women’s (CAF). On his curriculum, which national football team of Cameroon, he continuously developed within unfortunate finalist at the latest football institutions, is a period, in a edition of the AfCON organised temporary capacity, as Head of FIFA in Yaoundé and Limbé between (after the resignation of Sepp Blatter November and December 2016. in June 2015), under whom he was a long-standing Vice-President. Unfortunate candidate to his own succession as Head of the African The most honoured Cameroonian in Confederation of Football (CAF) in Pan African and international insti- Unfortunate candidate to his own succession as Head of the African Confederation of March 2017, Issa Hayatou, who has tutions during the past four decades, Football (CAF) in March 2017, Issa Hayatou will also just been appointed honorary several years after the likes of Nzo bring his long and vast experience to Anafoot, whose mission is to improve the practice and Vice-President of FIFA, the global Ekangaki (Secretary General of the management of football in his country. football organisation; will therefore African Union Organisation between bring his long and vast experience to 1972 and 1974) and William Aurelien Anafoot, whose mission is to improve Eteki Mboumouna (successor of Nzo the practice and management of Ekangaki at the OAU between 1974 ing in the World Cup to five teams, football in his country. and 1978), who also happened to the organisation of the first World be Vice-President at UNESCO from Cup in Africa in 2010, the negotiation To achieve this, he will contribute 1963; Issa Hayatou left his mark as of several sponsorship contracts for to the implementation of the main Head of CAF. African football by multinationals. missions given to this academy. The last one was signed with the These are, among other instructions Africa indeed owes him some French oil company Total, who from the Head of State, initiating and important reforms which enabled became in 2016 the sponsor of all supervising the youth in the practice the African football to enhance its major CAF tournaments for a period of high level football; initial and visibility at the global level. These of 8 years. continuous education for trainers in are in particular, the increase of the theoretical and practical football ed- number of African teams participat- Brice R. Mbodiam

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