enormous challenges» - AfDB «Central Africa isfacing MAJOR PROJECTS-AGRICULTUREMAJOR -ENERGYMININGINDUSTRYSERVICESFINANCE Roads, dams, fiberoptics,

projects toward May 2020 / N° 87 ’s big CAMEROON BUSINESS IN BUSINESS integration markets... FREE -CANNOT BESOLD second chance Cicam getsan unexpected BUSINESSIN CAMEROON .COM Daily business news from Cameroon

Compatible with iPads, smartphones or tablets Yasmine Bahri-Domon,

The time for integration is now or never

As it was barely recovering from shocks lead to the creation of a powerful African resulting from the 2008 financial crisis financial market. which had broken the growth cycle it had sustained for decades, Africa is now “The future of our countries depends on facing the Covid-19 pandemic which is our capacity to tackle strong headwinds plunging the world into a deep recession. opposing the structural transformation and emergence of economies, together,” However, though the African conti- Solomane Koné, Managing Director nent seems far less affected by the of the AfDB office in Central Africa, Coronavirus than other continents, it declares in this magazine. That is will not be spared its economic reper- exactly the path taken by Cameroon as cussions. Private investment will fall, it expands its road network to neighbo- global trade will restart slowly, prices of ring nations such as Congo with which it commodities will stay down for months, shares a big hydropower dam project or even years maybe. Asian countries, food Chad to which it is extending its railway exporters, will prefer keeping their food network. Other integration-oriented stocks and reduce exports. projects initiated by Cameroon include the construction of dry ports, border These circumstances should ring the markets, an Inter-States university, or a alarm urging Africa to focus all its efforts project to interconnect the sub-region on achieving integration. This would with fiber optics. help the continent to become less affec- ted by external shocks, establish a conti- While unfortunate, the current Covid-19 nental strategy for agricultural produc- crisis is indeed a painful reminder that tion, boost intra-African trade, tap into integration is the only path for Africa to the numerous opportunities brought up achieve stability and security which are by digital technologies, and ultimately much needed to develop.

N° 87 / may 2020 3 CONTENTS FOCUS INTERVIEW

08 • Cameroon strides toward African regional 13 • Solomane Koné : “Besides the pandemic, integration Central Africa is facing enormous challenges which we must deal with” 09 • Delivery of 322km road linking Cameroon to Congo expected for late 2020 09 • Cameroon, Congo to build trans-border Publisher Chollet Dam (600 MW) Stratline Limited Publication Director 10 • Central Africa Backbone: Cameroon deployed Yasmine BAHRI-DOMON additional 105 km of fiber in 2019 Contributors Brice R. Mbodiam, Sylvain Andzongo, Idriss Linge, 11 • Cameroon, Nigeria agree to build 443 km Muriel EDJO. road to boost trade Operator 11 • Cameroon creates five border markets to Médiamania Sàrl www.mediamania.pro increase trade with Nigeria, CAR, Gabon, and Maquette : Jérémie FLAUX, E. Guinea tenfold Corrections : Souha TOURE Advertisement [email protected] LEADER OF THE MONTH In Cameroon Albert MASSIMB, [email protected] 34 • Cameroonian Tel : 00 237 694 66 94 59

Éric Valéry Zoa Printing becomes MD of Rotimpres, Aiguaviva, Espagne

Atlantic Office - Distribution Cameroon Cameroon Albert MASSIMB, [email protected] Tel : 00 237 694 66 94 59

Free – cannot be sold

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4 N° 87 / May 2020 NEWS IN BRIEF

PUBLIC MANAGEMENT P 19-23 INDUSTRY P 29

FINANCE P 24-25 TRANSPORTATION P 30-31

AGRIBUSINESS P 26-27 ITC & TELECOM P 32

ENERGY P 28 SERVICES P 33

N° 87 / may 2020 5 COMPANY OF THE MONTH

Covid-19: Cicam plans to boost performance by producing 15 mln facemasks monthly

On April 13, 2020, the government’s the framework of its XAF13.2 billion from China (which represents 88% coronavirus prevention measure im- contract-plan with the government) of the market officially) and from posing facemasks wearing in public plans to cash in on the opportunity (6%) that flood the spaces came into effect in Cameroon. presented by the coronavirus to reco- Cameroonian market at very compe- That same day, textile company ver from a difficult start of the year. titive rates. Cicam promised to put its first load of sterilized facemasks made with Due to numerous challenges, Cicam With the sometimes unfair compe- African prints into the market. was unable to meet its production tition (ed.note: most of the textile forecast for the wax prints dedicated products competing against CICAM’s Indeed, we learn, on April 8, 2020, to the International Women’s Day, production are contraband), the during the visit of Cameroon’s which is its major production every state-owned textile company was Minister of Industry Dodo Ndocké year. showing a deficit of XAF3.9 billion on at the company’s plant, Cicam and December 31, 2018, official sources the whole textile sector took on the The company’s difficulties do not reveal. At the same time, its equity challenge to produce 15 million face- date from Q1-2020. From being the was negative (-XAF1.7 billion) while masks every month to protect the flagship of the textile industry in its cash-flow was in deficit of over population against the Covid-19. Cameroon and the overall Central XAF2 billion. African region, Cicam progressively With an initial production of 5,000 plunged and now controls barely 5% Brice R. Mbodiam pieces per day, Cicam (which recently of the local textile market. The reason received a batch of equipment in for this is the wax prints imported

6 N° 87 / May 2020 MONTHLY STATISTICS

20,000 litres

Under the supervision of the French Ambassador to Cameroon, Christophe Guilhou, four French companies XAF58 billion operating in the country recently handed 20,000 litres of hydroalcoholic gel to the Cameroonian Prime Minister in There is now a little more information about the volume the framework of the fight against the coronavirus. of financial resources Cameroon plans to put into its They include the brewing group SABC, the oil operator Covid-19 response plan. On April 16, speaking before the Total, the CFAO group, and the leader of the Cameroonian National Assembly, the Minister of Public Health, Malachie sugar market, Sosucam, a subsidiary of Somdiaa group. Manaouda (photo), revealed that this envelope is estima- ted at XAF58 billion. The French ambassador also announced the forthcoming contribution of these French companies to the Solidarity Thanks to the envelope, the country will deploy all the Fund set up by the Head of State for the fight against awareness and prevention measures currently ongoing in Coronavirus. the country, treat infected people free of charge, acquire test kits, respirators, and all other equipment involved in the care of the infected, and set up field hospitals.

6 million

This year, Cameroon plans to distribute 6 million cocoa 17% seedlings to producers who want to create new farms or expand their existing ones, the Ministry of Agriculture and Rural Development (MINADER) indicates. By December 31, 2019, 8.5 million tons of goods had been handled at the two terminals (container and multipurpose) Depending on the variety, these plants will go into produc- of the Kribi Deep seaport commissioned in March 2018. tion after a period ranging from 18 to 36 months. According to figures published by the Port Authority of For years, the aging plantations have been obstacles to an Kribi (PAK), this volume is up by 17% compared with the 7 increase in the country’s cocoa production and have had million handled by the port by the end of 2018. significant impacts on yield. The PAK also informs that thanks to the dynamism at the These new seedlings will somehow reduce those impacts. port, revenues of the southern customs constituency were increased in 2019. Overall, from XAF9.7 billion in 2018, the customs revenues of that constituency went up by XAF24 billion in 2019.

N° 87 / may 2020 7 FOCUS

Cameroon strides toward African regional integration

In Africa, the issue of integration has Congo from Cameroon (which shares tions, and roads, among others. been lingering since the times of in- a long border), is not as easy. At Many of these projects have been dependence. This is despite the many times, Cameroonians flying to Gabon mentioned for years, but nothing efforts made in that regard. The latter (Central Africa) even have to transit has been done to bring them to include the African Union pass- through Lomé (West Africa), or Addis life. Others, fortunately, have been port, or more recently the African Ababa in Ethiopia (East Africa). launched or are being finalized. Continental Free Trade Agreement. To overcome the various infrastruc- Regardless of how far advanced these According to various experts, one of ture-related challenges which slow projects are, they all feed the vision the major roadblocks to integration integration in Africa, many countries of an integrated African continent. across the continent is the lack of or community groups all over the In our monthly dossier, our team infrastructure. continent have started -with the takes a look at some of the projects While this may not be quite evident support of financial partners- various underway in Cameroon, a country in West Africa, where it is for inclusive projects in the past years. that is determined to contribute to example possible to travel from In Cameroon, these projects were integration in Africa. to or Nigeria by car, doing launched in different sectors such Brice R. Mbodiam the same in Central Africa, going to as power, railways, telecommunica-

8 N° 87 / May 2020 FOCUS

Delivery of 322km road linking Cameroon to Congo expected for late 2020 The 322 km road linking Cameroon to Congo is expected to be fully delivered by November 2020, a note signed by the Cameroonian Minister of Public Work, Emmanuel Nganou Djoumessi, informed. This is part of the trans- border road that will connect Sangmélima in Cameroon to Ouesso in Congo to ease trade between the two countries. While the Congolese side has already The 4 others are Sangmelima-Bikoula 38km Bikoula-Djoum section. been completed with the last section (65 km), Bikoula-Djoum (38 km), Financing for the project was (Sembé-Souanké-Cameroonian bor- Mintom-Lélé (67.50 km) and Lélé- mobilized by the two countries from der) inaugurated on March 6, 2020, by Ntam-Mbalam (53 km). the African Development Bank, the President Denis Sassou Nguesso, the To ensure good quality of work and Islamic Development Bank, the Arab Cameroonian side is still lagging. especially the respect of deadlines, the Bank for Economic Development Of the 5 sections to be constructed (in Cameroonian government has given in Africa, the Saudi Fund for Cameroon), only one is completed: formal notice to the company Arab Development, and the Kuwait Fund. the 98 km Djoum-Mintom section. Contractors, which is active on the Cameroon, Congo to build trans- border Chollet Dam (600 MW) The governments of Cameroon and Chinese company Sinohydro. instructed the project director to Congo planned to launch a call for The two partners have also planned continue the same operation on the tenders to recruit a partner for the to establish a procedure manual and Congolese side. At the end of the construction of the 600 MW Chollet provide their contribution to the work, the parties reaffirmed their dam over the Dja River bordering project. In January 2017, Cameroon interest in making the Chollet hy- the two countries. This followed had allocated to this project CFA1.09 droelectric development project the a meeting on May 12, 2017, of the billion for the years 2015, 2016 and foundation of the electricity inter- Interstate Committee for the Chollet 2017. Congo, for its part, contributed connection between the two States Hydroelectric Development Project CFA950 million for the 2017 financial and, possibly, with other neighboring in Yaoundé. year. This makes a total of CFA2.04 countries (an electricity intercon- The project will be developed on a billion available. The budget for the nection project between Cameroon Public-Private Partnership basis, year 2017 was set at CFA1.9 billion. and Chad is underway, ed) within especially since the hydropower Concerning the recruitment of the framework of the Central African plant is set to cost between CFA354 experts, the interstate follow-up Power Pool (CAPP) agreements. and CFA670 billion depending on the committee, after taking note of the development option adopted by the recruitment of Cameroonian experts,

N° 87 / may 2020 9 FOCUS

Central Africa Backbone: Cameroon deployed additional 105 km of fiber in 2019

Last year, as part of the AfDB- committee of the CAB project, Congo The project that normally expired financed Central Africa Backbone and the Central African Republic on December 31, 2019, is expected (CAB) project, Cameroon deployed were cited as beneficiary countries of to be extended until 2021, following an additional 105 km of optical fiber this interconnection with Cameroon. a request submitted by Cameroon for the cross-border interconnection, The CAB project is aimed at building to the AfDB. “The procurement plan according to an official document a high-speed optical fiber telecom for the 2020-2021 period, submitted from the Ministry of Posts and network in the Central African on September 30, 2019, obtained the Telecommunications. region. Structured into regional and favorable opinion of this institution Although this document does not national components, this project (AfDB, ed) on December 26, 2019,” specify the neighboring countries started in Cameroon in 2016, but Minette Libom Li Likeng, Cameroon’s targeted by this interconnection, entered into its development phase Minister of Posts and Telecoms, it should be reminded that on in 2018, and particularly in 2019, with revealed during the 8th meeting of December 30, 2019, during the 8th the completion of the above-mentio- the national steering committee of meeting of the national steering ned interconnection works. the CAB project.

10 N° 87 / May 2020 FOCUS

Cameroon, Nigeria agree to build 443 km road to boost trade Following the 6th session of the Joint Cooperation Commission between Nigeria and Cameroon, which ended on April 11, 2014, in Yaoundé, Nuruddeen Mohammed, and Pierre Moukoko Mbonjo, then respectively Minister Delegate for Foreign Affairs of the Nigerian Government and Minister of External Relations of the Republic of Cameroon, initialed a series of cooperation agreements, including a formal trade agreement which will govern trade between the two countries. This agreement comes at a time Since it entered into service, this mained Cameroon’s largest supplier when the two partners were ready road infrastructure has allowed to over the period. In 2012, Cameroon to inaugurate the 443 km Bamenda- further intensify trade, which was bought 17.8% of Nigerian exports Enugu road, 203 km of which is already very dynamic, between (22.6% in 2011), ahead of on the Cameroonian territory. In Cameroon and Nigeria. According to (12.8% in 2011 and 11.8% in 2012) addition to contributions from the the Economic Affairs Office (EAO), and China (10.8% in 2011 and 10.4% countries, the project was financed in 2012, Nigeria absorbed 3.5% of in 2012). by the African Development Bank Cameroon’s formal exports, far These statistics do not take into (CFA128 billion), the World Bank behind China, which consumed 15% account the huge smuggling acti- (CFA12 billion), and the Japan of Cameroonian exports. vity through the 1,400 km poorly International Cooperation Agency However, the same source revealed, controlled border between the two (CFA18 billion). Africa’s most populous country re- countries.

Cameroon creates five border markets to increase trade with Nigeria, CAR, Gabon, and E. Guinea tenfold In 2015, the Cameroonian govern- Before these new markets, the should follow in the coming years, ment issued a call for tenders for the government had already initiated the sources revealed. The government control and supervision of construc- construction of two other markets. wants to capitalize on the country’s tion works in some border markets One in Abang-Minko and the other geographical position to Nigeria, in the towns of Fotokol (in the Far in Kyé-Ossi, both located in the the leading economy in Africa, North bordering Nigeria), Ekok southern region of Cameroon, which the six CEMAC countries and the (in the south-west also bordering are the main places of trade with 10 countries of the ECCAS, which Nigeria), and Garoua Boulaï (in the Gabonese and Equatorial Guinean cumulatively represent a market of eastern region bordering the Central traders. 300 million consumers. African Republic). Other projects of the same type

N° 87 / may 2020 11 FOCUS

Cameroon and Chad kick off construction of Bongor-Yagoua Bridge

After a first bridge connecting the two countries, Cameroon and Chad are taking another step forward to further boost their trade rela- tions. On Feb 27, 2020, the Chadian President Idriss Deby Itno and Cameroon’s Prime Minister Joseph Dion Ngute officially launched the construction of the bridge connec- ting Bongor (Chad) to Yagoua in Far- North Cameroon. The 620m infras- tructure will cross the Logone River. tium Razel Cameroun-Razel Fayat- km at the Cameroonian side. It also Financing for the project, valued at Sotcocog was selected to conduct the includes related works mainly consti- CFA74 billion, will be raised with works for over 36 weeks. tuted of socioeconomic infrastruc- the African Development Bank and According to the AfDB, the project tures (border crossings and warning the European Union. Cameroon also includes the construction of 14.2 devices), bringing the total cost of will repay 58% of the and Chad km of driveways, 7.4 km of which this construction project to about will handle the rest. The consor- will be at the Chadian side, and 6.8 CFA92 billion. Extension of Cameroon’s railway network to Chad: Feasibility studies still awaited after 3 years The feasibility studies for the project initiation of the above-mentioned Public Debt Committee (CNDP), to extend the Cameroonian railway selection process is more of an before being transmitted to the to Ndjamena (Chad) from the railway anticipatory mechanism, pending Presidency of the Republic. terminal in Ngaoundéré, the regional the removal of obstacles erected on Since then, we learn, the decree that capital of Adamaoua, seem to have the way to the implementation of should authorize the government hit a dead-end. Yet, on October 24, this integrative project. The launch to sign the loan agreement with the 2019, in Yaoundé, during the 32nd of these feasibility studies is being AfDB is yet to be issued. session of the Inter-Ministerial awaited, for 3 years now. On the Chadian side, however, eve- Committee on Railway Infrastructure Well-informed sources reveal that rything is ready for the AfDB’s fun- (Comifer), the Minister of Transport, after the African Development Bank ding and the launch of the feasibility Jean Ernest Ngallé Bibehé, indicated (AfDB) approved financing (about studies of the project. These delays that they were about to complete CFA4 billion) for the studies in 2017, led Chad, which has not turned the selection of consultants that will the Ministries of Economy and away from the project, to explore carry out those studies. Transport compiled a dossier, which alternatives in Sudan and other West According to good sources, the was defended before the National African countries.

12 N° 87 / May 2020 INTERVIEW

Solomane Koné “Besides the pandemic, Central Africa is facing enormous challenges which we must deal with”

For our exclusive interview this month, the new managing director of African Development Bank (AfDB) for Central Africa assesses the impact of coronavirus on the region, and especially in the CEMAC (Cameroon, Central African Republic, Congo, Gabon, Equatorial Guinea, and Chad). He also tells us his projections for the region. Interview with Sylvain Andzongo

Business in Cameroon: To which In Central Africa, countries that will of reservation and hotel services. The extent will the Covid-19 pande- suffer the pandemic the most are the institution also pointed out slumping mic affect Central Africa, and the CEMAC States, since they are net oil foreign direct investments and lower CEMAC especially? exporters, in a context where global traffic on financial markets, as well Solomane Koné : Covid-19 is a pan- oil prices are currently lower than as the pandemic’s impact on health demic that is affecting all countries benchmark prices these countries and education budgets. However, worldwide, indiscriminately, but the have set in their respective budgets. regarding the last two sectors, they most fragile economies suffer a grea- The AfDB has identified at least five were not better off even before the ter toll. Most African countries are major areas that will be impacted crisis, despite efforts made through among the latter and Central African by the pandemic in Africa. First is some reform programs. countries, especially the ones with a the fall in prices of commodities and Beyond these assessments, many weak social, economic, and security subsequent effects on export and of which are only optimistic projec- environment, are most affected. The international trade. Then, there is a tions, the AfDB is presently working International Monetary Fund (IMF) reduction in tourism activity, due to on producing numerical forecasts of predicts a deep economic recession. restrictions on travel and suspension the impact that the crisis could have

N° 87 / may 2020 13 INTERVIEW

on African economies. In the mean- At the level of public finances, budget have a support plan for countries of time, the CEMAC’s efforts give us an balances should decrease substan- this region, but it also has one for all idea of quantitative losses that may tially. According to the pre-Covid-19 54 countries of the continent. We are arise due to this pandemic, in terms forecasts for 2020, the whole Central responsible and must show solida- of growth rate loss, degradation of African region should have recorded rity to our regional member States public finances (budget balance), a budget surplus of 0.5% of its GDP, (RMS). and external trade (current balance). against 0.9% for the CEMAC. Now, The Bank has recently introduced At the real sector level, the growth forecasts for the CEMAC alone, post- a new financing tool, the Covid-19 rates of the region’s economies Covi19, predict a negative budget rapid response facility (CRF), to allow should reduce. Truth is, before the balance of -6.6% of GDP, down 7.5% all 54 RMS to face the coronavirus Coronavirus pandemic, the medium- compared to initial projections. The pandemic. This is a USD$10 billion term growth outlook in Central regression should result from lower fund for both the African States and Africa was in the green. The AfDB, for budget revenues (due to the fall in the private sector. Coordinated by example, had forecast 3.4% and 3.5% prices of commodities paired with local initiatives and various techni- growth rates of real GDP for the CE- lower tax revenue as economic acti- cal and financial partners, this tool MAC and Central Africa respectively, vity slows drastically), and higher should help mitigate the social and in 2020. Central Africa includes CE- public spending (as needs for health economic impacts of the pandemic MAC and the Democratic Republic of services may increase and support to on populations. The cash resources Congo. These projections may have sectors that are most affected by the will help beneficiaries deal with worsened due to the pandemic. New pandemic is augmented). urgent and immediate needs and forecasts for the CEMAC, in the best- Regarding the external sector, the keep essential public services ope- case scenario, set the region’s short- current balance for the region should rational, in a particularly fragile and term growth rate at -1.6% for 2020, also, obviously, deteriorate more. unfavorable context. which is 4.9% down from the initial Initially, the AfDB had forecast a Through the fund, the AfDB supports 3.3% pre-Covid-19 projection. For the current balance in deficit at 2.8% African economies at three levels. DRC, the World Bank said the eco- of GDP in 2020, for Central Africa, First, it helps countries stabilize their nomy should slump by 2.8% against and 2% for the CEMAC. With the macroeconomic situation by pro- pre-Covid-19 forecast, to stand at Covid-19 pandemic, the current ba- ceeding to rapid disbursements for 0.4% in 2020. The decrease could lance of the whole region is expected budget support. Next, it will support result from a lower output, spurred to deepen by 8.6%, to stand at 10.3% the private sector, especially SMEs. by the fall in prices of commodities, of GDP. This would be spurred by a Last, the fund will accelerate ongoing especially oil’s since the whole region deterioration in trade, lower exports investment projects, which have a is a net exporter of black gold. and a potential rise in imports. The strong social impact on sectors like increase in the current deficit could agriculture, water, and the private BC: Concretely, will the situation lead to a significant fall in foreign sector. affect the economy? reserves. Also, the fall of export and In the case of Central Africa, which SK: The region could record many bu- budget incomes could impair the includes all six CEMAC States and siness shutdowns and job losses. The capacity of Central African nations to the DRC, the AfDB has provided the government should take measures service external debt thus the perti- region an immediate grant of about in this framework with special atten- nence of the proposals submitted by $11 million for a regional emergency tion. Regarding prices, there could be some G20 governments and multila- project which is aimed at supporting a double impact, depending on how teral institutions for the rescheduling the various responses, regional and disturbed supply chains are, both at and cancellation of debts. national, against the Covid-19, as the international and national levels. well as to help the Organization for The first impact concerns inflatio- BC: Does the AfDB have a plan to the Coordination of the Fight Against nary pressures as internal demand support CEMAC and Central Afri- Endemic Diseases in Central Africa shrinks, and the second could be the can countries? If so, how will it be (OCEAC) in its coordination efforts exacerbation of these pressures in implemented? across the CEMAC. the event supplies of goods and ser- SK: The answer is yes, with absolute vices are not well handled. certainty. Not only does the Bank BC: Will the Bank’s policy change

14 N° 87 / May 2020 INTERVIEW

“Concerning potential short and medium-term economic strategies that Central Africa should adopt in the current context, they should mainly focus on taking ade- quate sanitary and economic measures to contain the impacts of the coronavirus pandemic” due to the pandemic? If yes, in solidarity, mutual responsibility, and has recorded major amendments to what way will it change? transparency. Dealing appropria- adapt to States’ new priorities amid SK: The Bank’s policy remains driven tely with the current pandemic has the current crisis. Also, the institu- by its “Top 5” or “High 5” operational become the top priority. It is there- tion, while not losing sight of structu- priorities. These include “Lighting fore normal for the Bank to adapt, ral limitations that remain relevant, Africa,” “Feeding Africa,” Industrialize to better support the economies it will reassess them with governments, Africa,” and “Improve Africans’ living covers. As it is confronted with this as well as its various technical and standards.” Of course, these priorities external shock and its impacts, the financial partners. Given the present align with the strategic priorities of Bank must take rapid and strong context, both flexibility and effi- countries and regions concerned, actions to provide an adequate and ciency are key assets. The impacts all laid in the regional and national timely response. In this regard, it has of the Coronavirus on jobs, public documented strategies. decided to prepare and carry out all finances, foreign reserves, and the The Covid-19 has changed the order operations designed to tackle the private sector are already significant of priorities in all countries around pandemic more rapidly. It was in this and could get worse if the pandemic worldwide, including obviously framework that it reduced its delays is not contained very rapidly. Talks Central African nations. Right now, for approvals to a few days only. between the Bank and each of its we must face the crisis by showing As a result, the AfDB’s work program member States should lead to the

N° 87 / may 2020 15 INTERVIEW

shifting of new resources that will be business climate are also major conomic framework, the business provided by the institution, and re- challenges. Settling imbalances and environment, and promoting econo- sources initially allocated to ongoing keeping macroeconomic frameworks mic diversification. Public policies projects to sectors that have become stable is crucial for tackling budge- should also increase investments key due to the current situation. tary slippages and the region’s debt in infrastructures, boost internal At the same time, talks with other crises. resource mobilization, mitigate cli- development partners are ongoing Another factor that fragilizes econo- mate change effects, develop human to get a coordinated and efficient mies in the region is their dependen- capital, and create decent jobs. response to the health crisis, and cy on natural resources. Therefore, it The good news is that the African its economic, social, and financial is necessary to make efforts that will development bank is aware of all consequences. lead to the structural transformation these challenges and is ready to help and diversification of these econo- Central African countries overcome BC: Is there any sort of Marshall mies, for them to be more resilient them. The Bank will do this through Plan for Africa, and the CEMAC to shocks. Concerning structural policies laid under its country paper zone especially? transformation, it is hampered by strategies (CPS) as well as in its Cen- SK: As part of the response against the absence, poor state, and insuffi- tral Africa regional integration stra- the Covid-19 pandemic, the Bank will ciency of infrastructures (transport, tegy paper. The latter was adopted in rapidly set up a $10 billion fund and water, electricity, ICT, etc.) needed February 2019 and covers the 2019- while the much-awaited Marshall to support production. This lack of 2025 period. At the moment, four out Plan for Africa is yet to be concre- infrastructure, added to relevant tax of the region’s seven-member States tized, it remains on the table. issues, does not put businesses in the are preparing future CPS which will Besides the pandemic, Central Africa ideal conditions to grow and be com- cover the 2021-2025 period. These is facing enormous challenges which petitive, and this ultimately causes are Cameroon, Gabon, Chad, and the we must deal with. So, the issue is production costs to rise. And since DRC. not really about having a Marshall public resources are not enough to Plan with no clear strategy, but meet existing needs, public-private BC: Could the crisis deepen in rather to be aware of the challenges partnerships should be considered to the Central Africa region since and weaknesses of the region, and improve the situation. Other factors some of its member States are subsequently find appropriate solu- impairing production in the region borrowing more to fight the pan- tions. Truth is, the medium-term include epidemics, climate change, demic? outlook for the region could be nega- and environmental issues. Beyond all SK: We believe that with the contri- tively affected by both external and these, one of Central Africa’s greatest bution of each and everyone, Central internal factors. challenges is its weak human capital. Africa, just like other parts of the At the external level, the anticipated In this regard, the Covid-19 crisis is world, should come out of this health slowing of global growth in 2020 and a real wake-up call that should urge crisis. Concerning the debt issue, 2021, especially in China which is a us to tackle key issues plaguing our serious talks, revolving around a major partner of the region and the health, education, and social protec- moratorium or a relief, are indeed epicenter of the Coronavirus pan- tion systems. taking place in this regard at the mo- demic, should be paired with lower Concerning potential short and me- ment, for the most fragile countries investments in Central Africa and dium-term economic strategies that especially. This is a legit concern and a fall in the region’s exports, which Central Africa should adopt in the the AfDB, being aware of it, is taking would weaken its growth. At the current context, they should mainly part in these talks. For now, however, internal level, insecurity and political focus on taking adequate sanitary we are making sure that our regional instability in some countries could and economic measures to contain members have the resources they also hamper economic growth in the the impacts of the coronavirus pan- need to fight the Covid-19 pandemic. region, making it more difficult to demic. Also, efforts should be made The close coordination between handle things during and after the to maintain peace, security, and development partners and States pandemic. stability, while improving economic guarantees the provision of efficient Issues related to economic gover- governance by sustaining initiatives and appropriate support to the latter. nance and the deterioration of the aimed at strengthening the macroe- New contributions by development

16 N° 87 / May 2020 INTERVIEW

“As part of the response against the Covid-19 pandemic, the Bank will rapidly set up a $10 billion fund”

partners to countries in the region the Bank integrates short, medium, emergence of economies, together, as take into account their macroecono- and long term priorities of States. recommended by States’ respective mic and financial situation before the The Bank provides not only resources strategies for economic develop- current crisis. Results that countries to these countries, but also coun- ment. achieved by leveraging economic seling, in coordination with other Dr. Akinwumi Adesina, president of reforms falling under the CEMAC’s development partners as this is vital the AfDB, has given clear instruc- economic and financial reforms in times of crises such as this. tions in this framework. Where they program (PREF-CEMAC) deserve to are needed, changes are being made be consolidated and amplified. As a BC: Will the AfDB’s projects for to optimize resources and accelerate result of this program, which is stee- regional integration, especially approvals and fund disbursements. red by the IMF and backed by various those related to agriculture and We must efficiently and responsibly institutions like the African Develop- infrastructures, be maintained? meet the immediate needs of our ment Bank, some of the economies What is the size of your active member States while keeping in in the region experienced a return to portfolio? mind the structural challenges that growth, reduction of the budget defi- SK: Indeed, now more than ever, our we must overcome together. cit, and a boost in foreign reserves. regional projects will be pursued and We support the Central African Apex In Cameroon for example, the PREF- our teams are doing everything to Bank’s single financial market pro- CEMAC helped inject €410.4 million, minimize the impacts of this crisis jects through various programs. Also, which equals around XOF269.2 bil- on their respective implementa- under the regional emergency pro- lion, into the economy between 2017 tion timetables. The future of our ject, the Organization for the Coordi- and 2019. countries depends on our capacity nation of the Fight Against Endemic Though we face an emergency at the to tackle strong headwinds opposing Diseases in Central Africa (OCEAC) moment, the global plan of action of the structural transformation and should benefit from emergency

N° 87 / may 2020 17 INTERVIEW

“…now more than ever, our regional projects will be pursued and our teams are doing everything to minimize the impacts of this crisis on their respective implemen- tation timetables. financing enabling it to develop a rapidly deal with the Covid-19 crisis lines(Cameroon/Congo/Gabon/ regional epidemiological surveillance together, responsibly, with solidarity, CAR). system. This is paired with targe- to preserve previous achievements. 8. Electricity interconnection ted support to national emergency In detail, we are focused on the fol- between Cameroon and Chad. responses to Covid-19 in CEMAC lowing 12 regional projects underway 9. Fiber-optic interconnection countries and the DRC. Moreover, in the CEMAC: between Cameroon and other the AfDB is leading an initiative to 1. Construction of a bridge over the CEMAC countries. support the CEMAC’s repo market. Ntem river and the facilitation of 10. Construction of Beloko dry port This initiative should allow non-bank transport as well as improvement (Douala – Bangui corridor). stakeholders access to the money of security on the transnational 11. Construction Dolisie dry port market at favourable costs, increase road Kribi-Campo-Bata, linking (Gabon – Congo corridor). commercial ’ cash reserves, Cameroon and Equatorial Guinea. 12. Congo-Cameroon Inter-State and support the bond market while 2. Construction of the Lolabe-Campo University. raising foreign reserves. (40 km) expressway, connecting Overall, these projects are estimated In parallel, the AfDB is preparing Cameroon to Equatorial Guinea. to cost XOF2,819.2 billion, of which and developing big infrastructure 3. Construction of the Ndende-Dous- XOF255.8 billion have already been projects, with greenlight of relevant sala (144 km) road, between Gabon raised by member States, financial African Union bodies. We want, with and Congo. and technical partners. Remaining other partners and the private sec- 4. Construction of the Kogo-Akure- monies, XOF2,563.4 billion exactly, tor, to complete the mobilization of nam (Equatorial Guinea-Gabon). should be secured from more of necessary financing. We must stay 5. The Brazzaville-Ouesso-Bangui- these financial and technical par- on course if we wish to preserve Ndjamena corridor (Congo/CAR/ tners. It is worth noting that some of these partners’ commitment. Popu- Chad). the projects, in the sector of power, lations living in areas hosting these 6. Construction of the Mbaikoro- fiber optics, and port infrastructures, infrastructure projects have great Bendja-Bekoninga road (109 km) should interest investors since they expectations regarding the positive (Chad/CAR). are based on public-private partner- impacts on their living standards. We 7. Construction of Chollet hy- ships - an option adopted to limit owe them that. However, we must droelectric dam and power borrowing.

18 N° 87 / May 2020 PUBLIC MANAGEMENT

Cameroon to receive XAF135.56 bln under IMF’s RCF to mitigate Covid-19 shocks

Managing Director and Acting Chair of the IMF, after the discussions. According to the IMF, Cameroonian authorities are taking measures to contain the spread of the disease, increase health and social protection spending, and provide support to affected businesses and households. However, due to a significant deterio- ration in the macroeconomic outlook and a weakening fiscal position, driven by declining revenues associa- ted with additional direct health and social spending, urgent external and fiscal financing needs have emerged. In that regard, it indicates, the IMF’s support under the RCF will help The IMF executive board approved “Cameroon is facing serious challenges Cameroon meet immediate external the disbursement of $226 million ( from the twin Covid-19 pandemic and needs and preserve fiscal space for XAF135.56 billion) under the Rapid terms of trade shocks. Weak global essential health expenditures related Credit Facility (RCF) to support demand, depressed commodity prices, to COVID-19 and “catalyze additional Cameroon’s “urgent balance of and domestic containment measures donor support.” payment needs stemming from the weigh on the outlook and are causing An IMF instrument with a zero COVID-19 pandemic and the terms of significant adverse economic and interest rate, the RCF allows low-in- trade shocks from the sharp fall in oil social effects. The shocks have given come countries facing an immediate prices.” This was revealed in a press rise to substantial fiscal pressures and balance of payments problem to release published on May 4, 2020, on an urgent balance of payments need,” obtain a loan repayable over 10 years. the institution’s website. said Mitsuhiro Furusawa, Deputy

XAF15 bln available to repay companies’ VAT credits, Finance Minister says XAF15 billion is already available the release signed by Prime Minister the axle tax are already effective. Also, for the repayment of VAT credits Joseph Dion Ngute on April 30, a circulars are currently being elabo- decided by the government on April special envelope of XAF25 billion was rated to specify the conditions for the 30, the Minister of Finance Louis to be released “to support compa- implementation of the other business Paul Motaze (photo) reveals. nies’ cashflow by clearing VAT credits support measures taken by the Head of This means that the government awaiting reimbursement.” S t a t e ,” Minister Paul Motaze adds. still needs to raise XAF10 billion for “The exemptions relating to the the stated purpose. According to visitor’s tax, the withholding tax, and

N° 87 / may 2020 19 PUBLIC MANAGEMENT

Cameroon’s 1st 10-year T-bond on BEAC market oversubscribed at 120% On May 6, 2020, Cameroon issued 10- signed by the stakeholders per the terms convergence criteria (inflation rate, year fungible treasury bonds (T-bonds) stipulated.» debt level, budget deficit, outstanding on the BEAC’s government securities According to the note, the zero wei- debt, etc.) it is sanctioned. market. This was a first since the crea- ghting not only applies to the T-bonds These sanctions take the form of a tion of the market in 2011. issued on May 6, 2020 but also to all of weighting (an increase of the risk level) According to sources close to the case, the securities issued by Cameroon in on transactions concerning the said the issuance was oversubscribed at the framework of the series of T-bonds government’s securities. 120%. While Cameroon was reques- issuance it launched on April 8, 2020. Since 2017, the weighting on ting XAF25 billion, investors offered Thanks to this series, the country plans Cameroon’s long-term securities has XAF26.7 billion and the country retai- to raise XAF220 billion for infrastruc- exceeded 80% because of the accu- ned the whole amount. ture projects but to date, the amount mulation of expenditures budgeted This oversubscription was notably raised is XAF166.7 billion. but not implemented and the accu- spurred by the attractive interest rate According to specialists, this decision mulation of budget deficits above the (7%) and the zero weighting Abbas is based on information guaranteeing CEMAC standard. Mahamat Tolli, president of COBAC the repayment of the funds raised by To put it plainly, a connoisseur of the (regulator of CEMAC region’s banking Cameroon at maturity. It reassures money market confides, this means sector) agreed on for Cameroon’s bank and non-bank investors active in that “with the 80% weighting, an inves- T-bonds. this market and also waives the man- tor who wanted to invest XAF10 billion In a note he sent to the country’s datory cash advance rules. on T-bonds issued by Cameroon had to Prime Minister on May 4, 2020, Abbas The 0% weighting “works a bit like the make a cash advance payment of XAF8 Mahamat Tolli, who is also governor points-based permit: the more mistakes billion. However, with the 0% weighting of the Central Bank (BEAC), agreed you make, the more points are deducted requested by the government and «to apply a zero weighting on T-bonds from your ranking,» an authoritative granted by the Cobac, this provision is no issued by Cameroon. This agreement is source explains. longer required. This is less constraining subjected to the prior transmission of the In the CEMAC zone, if a country fails for the investor and gives him more room special deposit account agreement duly to comply with the various Community for maneuver on the market.»

The IMF asks for “strict budgetary controls and transparency” in the use of the XAF136.5 bln RCF

On May 4, 2020, when granting $226 twin shocks. (...) Strict budgetary for the fight against coronavirus, but million (about XAF135.6 billion) to controls and transparency will be «the IMF does not tell us how to use it.” Cameroon under the Rapid Credit needed to ensure that the assistance «We say: these are our problems, these Facility (RCF), the International under the RCF meets its intended are our goals and this is what we want Monetary Fund (IMF) indicated that objectives,” said Mitsuhiro Furusawa to do in the health sector,” he added. it would keep an eye on the use of (photo), Deputy Managing Director Motaze further indicated that he these facilities provided for the fight and Acting Chairman of the IMF. would assist the Minister of Public against the coronavirus. On May 6, during an interview Health in the elaboration of the «IMF emergency financing under the on public channel CRTV, Finance reports on how the resources are RCF will support the government’s Minister Louis Paul Motaze said that used. efforts to mitigate the impact of the the money was indeed earmarked

20 N° 87 / May 2020 PUBLIC MANAGEMENT

Impact of the measures issued by the government to support the economy will be low, Gicam estimates On May 4, 2020, employers’ grou- ping GICAM published a release assessing the 19 measures issued by Cameroon, on April 30, 2020, to support the economy affected by the coronavirus. In the release, the employers’ grou- ping notes that «its proposals have been partially taken into account» but they are not satisfied with the various measures. «While we welcome the decision to clear the VAT credit balance to help restore the cash flow of businesses, we deplore the absence of customs measures, the non-repayment of the However, there is still a long way to go only be possible with the implementa- domestic debt, and the failure to mobi- since we can already notice the low tion of economic stimulus measures lize banking levers (…) Overall, we foreseeable impact of these measures, combining fiscal, monetary, and finan- consider that this first set of measures given the deterioration of the economy cial policies, as well as unprecedented is a start towards the objective that and the impoverishment of house- policies to support businesses and we are calling for namely, containing holds. (…) The effectiveness of the first households,» GICAM writes. economic slippages and dysfunctions. measures taken by the government will PPRD-NoSo: Cameroon signs over XAF8.5 bln funding agreement as an initial contribution to the reconstruction programme Declared economically depressed the reconstruction and development of published a report revealing that the zones by the government in 2019 the Northwest and Southwest regions dead cities, insecurity, various forms because of insecurity maintained (PPRD-NoSo). of destruction, and the halt in public by armed groups, Cameroon’s According to Luc Stalon, this investment projects due to three North-West and South-West (No/ financing agreement represents years of the security crisis in No/ So) regions could soon rise from Cameroon’s initial contribution to So significantly affected businesses’ their ashes thanks to a partnership the implementation of the PPRD- turnover. between the state and the United NoSo. This initial funding (represents «By focusing on 10 sectors of acti- Nations Development Programme 10% of the overall budget) will be vity only, these losses are estimated (UNDP). released to the UNDP which has at nearly XAF800 billion after three On May 5, in Yaoundé, Luc Stalon, been designated by the government years. The distribution sector is the the representative of this UN agency, as the implementation partner of the most affected, with insecurity having signed a XAF8.9 billion financing programme. The PPRD-NoSo, which favoured informal supply channels, agreement with Alamine Ousmane will last two years, is a component of several of which are fed by smuggled Mey, the Minister in charge of the 10-year National Development products,» Gicam revealed. Economy (Minepat), in the fra- Programme (NDP). mework of the Presidential plan for In 2019, employers’ grouping GICAM

N° 87 / may 2020 21 PUBLIC MANAGEMENT

“SMEs remain the least favoured because no special measure was taken” to help them cope (Protais Ayangma) SMEs remain the least favoured be- Although he is «delighted the govern- part, the real problem has not been cause no special measure was taken ment has finally thought of supporting addressed, including the problem of for them.” This was said by Protais businesses deal with the impacts of corporate cash flow,» he notes. Ayangma (photo), the president of the Coronavirus,” Protais Ayangma According to this economic operator Ecam, minutes after the release of expressed «a slightly mixed feeling.” well known in the insurance sector, the measures issued on April 30, “Nineteen measures have been «the only measure that could have 2020, by the government to relaunch enacted. They may seem numerous in been interesting for companies is the the economy affected by the corona- quantitative terms but, on the qualita- reimbursement of VAT credits.” virus prevention measures. Ecam is tive level, I am not satisfied,” he said. “However, the modest amount the the Cameroonian employers’ asso- «While we can be pleased about some government proposes to release for ciation whose actions are focused interesting support measures for some that purpose (XAF25 billion, editor’s on the promotion and protection of sectors, such as transport and hotels, note) is largely insufficient,” he SMEs. the fact remains that for the most concluded.

CEMAC: Cameroon and Congo were the main catalysts of the increase of community inflation rate in 2019 (BEAC) In the CEMAC region, the inflation CEMAC countries but in Cameroon and Equatorial Guinea (mainly rate declined to 2.0% in 2019, against and Congo, it increased by 1.2 points because of disruptions in the supply 2.2% of 2018. According to the Beac, and 0.3 points respectively, according chain), the decline in the supply of beef the Central bank of the six CEMAC to the Beac’s March 2020 monetary and food products in Cameroon (be- countries, the contribution of all policy report. cause of the floods in the northern part member countries declined except According to the report, this rate, of the country), and the Anglophone for Congo and Cameroon.» which was below the community crisis, as well as speculation by some During the period under review, threshold of 3%, was mainly due to retail traders, mainly in Cameroon.» this indicator decreased in other «the rise in food prices in Cameroon

The EU plans to create a chamber of Commerce in Cameroon to defend Europeans’ interests The Delegation of the European It explains that the information ga- Chamber of Commerce. Union to Cameroon recently thered during the survey will be used The cooperation between the EU launched an online survey to identify to pinpoint the needs of the private and Cameroon is 56 years old. In European businesses active in the sector, better adapt public-private 2019, the EU’s active portfolio in private sectors in Cameroon and the dialogue, and also help better map Cameroon was about €600 million various business opportunities avai- the presence of European companies (over XAF400 billion), according to lable in the country. «Do you manage in Cameroon. the EU Delegation to the country. a company based in Cameroon? Are The survey will help single out the By adding the project portfolio of you planning to invest there? Have obstacles those companies face as the Union’s member countries, this Europeans invested in your company? well as the opportunities available to active portfolio exceeded €2.5 billion Participate in the mini-survey!» the them to better defend their interests (over XAF1,600 billion) during the diplomatic representation invites. after the creation of a European said period.

22 N° 87 / May 2020 PUBLIC MANAGEMENT

Cameroon extends its ECF programme with the IMF by 3 months for a strong post-covid recovery

On May 4, 2020, the Executive Board and ensure a strong recovery,” explai- rephasing of objectives. of the International Monetary Fund ned Mitsuhiro Furusawa, Deputy By way of illustration, the pro- (IMF) finally approved a 10-year inte- Managing Director and Acting Chair gramme required Cameroon to rest-free loan of XAF135.56 billion for of the IMF. reduce its budget deficit to less than Cameroon. This loan was approved On January 22, 2020, Cameroon 2% in 2020. However, though the after two successive postponements received an additional envelope of country has set a target of 2% in its (22 and 28 April 2020) of the review XAF44 billion ($76.1 million) after the 2020 finance bill, with the Covid-19 of the country’s case and it paves 5th review of Cameroon’s three-year crisis, Cameroon expects its budget the way for Cameroon’s access to economic and financial programme balance to deteriorate further. the debt moratorium offered by G20 (2017-2020) with the IMF, which is Approved on June 26, 2017, the three- countries. accompanied by the Extended Credit year programme with the IMF will In addition to that support, the Facility (ECF). This new disburse- enable Cameroon to benefit from Bretton Woods institution “also ment brought the amount already overall budget support of $666.1 approved the [Cameroonian] autho- released to Cameroon under this million (nearly XAF400 billion). The rities’ request for an extension of the programme to $590 million (about programme aims to support the ECF arrangement, due to expire on XAF344 billion). country’s efforts to restore external June 25, 2020, to September 30, 2020, According to the initial schedule, and fiscal sustainability and lay the with a rephasing of access.» Cameroon should benefit from a final foundations for more sustainable, “Given the sudden and pressing nature disbursement of over XAF44 billion inclusive, and private sector-led of the shocks, accommodative fiscal from the IMF by the end of May 2020. growth. and monetary policies are warranted This financing is however subjected According to Cameroon’s Finance to mitigate the human and economic to the positive conclusion of the 6th Minister, Louis Paul Motaze, after impact of the outbreak. However, and final review of this three-year its expiration in September 2020 the authorities remain committed to adjustment programme. (instead of June), this programme their reform agenda under the ECF Considering the current economic will be replaced by a new instrument arrangement. They plan to undertake situation, it is not sure the country that will focus on the fight against adjustments to return to the fiscal will meet the initial objectives set by poverty in the country. consolidation path once the crisis the programme. Hence the impor- abates to safeguard debt sustainability tance of that postponement and the

N° 87 / may 2020 23 FINANCE

Prudential Beneficial offers clients free guarantees against Covid-19

lization allowance of XAF5,000 over 30 days (i.e. XAF150,000). In case of death due to Coronavirus, benefi- ciaries will receive an indemnity of XAF1million. Also, all persons eligible for this guarantee benefit from a waiver of premium rider for 3 months. The company explains that all current and new clients will fully benefit from this new free coverage. However, the coverage for all additio- Clients of Prudential Beneficial the Covid-19 for free. nal insureds listed on the contracts Life Cameroon, up to date with the According to this insurance compa- and children benefiting from the payment of their premiums on April ny, with the new guarantee, if the in- «School Education» product will be 1, 2020, will be offered a 45-day (pos- sured is hospitalized due to Covid-19, 50%, it adds. sibly renewable) guarantee against he/she will receive a daily hospita-

Swiss investments in agricultural and renewable energy with Counterpart funds currently amounts to XAF5.6 bln, Development Agency SDC says

The Swiss Agency for Development billion),» SDC reveals in the note. ments with three Cameroonian and Cooperation (SDC) recently It adds that the Swiss Embassy in SMEs (Sawel Water Sanitation published a note concerning Yaoundé offers support to Swiss and Environment, Experience Switzerland’s economic cooperation companies operating in Cameroon Incorporated Cameroon, and with Cameroon. (negotiation of a double taxation SolarHydrowatt) operating in the «In partnership with the Ministry of agreement for instance). agricultural sector and renewable the Economy, the State Secretariat for The latest investments of the Swiss energy. These grants, worth XAF3.4 Economic Cooperation is supporting Confederation in Cameroon pre- billion, were signed within the agricultural and renewable energy sented to the public date back framework of the Swiss Counterpart projects with counterpart funds to to March 2020. At that time, Funds programme. the tune of CHF 9 million (XAF5.6 Switzerland signed grant agree-

24 N° 87 / May 2020 FINANCE

Cameroon takes the first step to improve management and client protection in microfinance institutions Cameroon’s Ministry of Finance has mance, client protection, and gover- the Ministry of Finance at XAF839.14 sent a restricted international call nance of these financial institutions billion (22.90% bank ) at the for tender to four firms from Benin, and the development of a roadmap end of 2019, the microfinance sector , Nigeria, and Spain for the for the implementation of measures plays a key role in financing the recruitment of «technical assistance to improve them. Cameroonian economy, especially in specialized in social performance According to the ministry, the firms rural areas. management, client protection and pre-qualified to carry out these However, these institutions are governance in microfinance institu- services have a period of two months confronted with major management tions (MFIs).» following receipt of the tender problems as the numbers- that have The expected deliverables include a documents to send their bids to the stopped operations in recent years comprehensive diagnostic study of Cameroonian government. due to such problems- can prove. the sector in terms of social perfor- With a loan portfolio estimated by

Alexis Megudjou becomes MD of new local bank CCA-Bank On April 28, 2020, Alexis Megudjou, mutation from a microfinance insti- previously Deputy Managing tution into a bank, CCA Bank posted Director of CCA Bank, was appoin- a 20% increase in deposits. ted Managing Director of the said Overall, the deposits recorded by the banking institution operating in newest bank in the Cameroonian Cameroon since its licensing in May ecosystem rose from XAF174.3 bil- 2018. lion in May 2018 to XAF209.3 billion According to CCA Bank, per the regu- at end-May 2019. Following the same lations in force, work is underway to trend, credits rose by 35% year-over- obtain a new license that will enable year, up from XAF79.5 to XAF107.3 the new appointee to perform his billion. new duties. Alexis Megudjou replaces «Although the number of ATMs Charlotte Chekep Kouecheu, who and branches have not changed, it has officially «reached the end of her should be noted that despite the great term.» performance achieved in financing A well-known manager of the economy, CCA-Bank closed its Community Credit Africa (CCA), the 12thmonth of activity with an impres- microfinance institution that became sive over liquidity, with a cash/deposit CCA Bank, Alexis Megudjou inherits ratio of 51% as of May 31, 2019,» the a fast-growing credit institution. bank said. In late May 2019, one year after its

N° 87 / may 2020 25 AGRIBUSINESS Cameroon offers bags of fertilizers to boost coffee production in the Northwest

Nearly 35,000 coffee producers, grou- These bags are offered by the govern- been forced to leave their villages and ped into 13 agricultural cooperatives ment in a crisis context marked by se- plantations to escape fights between in Cameroon’s North-West region, paratist demands in the Anglophone separatists and the regular army recently received a shipment of 1,000 regions since 2016. deployed in those regions. bags of fertilizers and other inputs to The violence perpetrated during the boost coffee production in this part of crisis has had significant impacts on the country. agricultural activities as farmers have The EU provides XAF1.6 mln grant to improve the production of Penja pepper and facilitate its access to international markets To improve the production of the Indication of Penja Pepper (IGPP) (PGI) in sub-Saharan Africa. It is Penja pepper and facilitate its has obtained, thanks to the technical grown in the Njombé-Penja area (the access to international markets, support of the Cameroon Chamber country’s coastal region) and is a the European Union (EU) represen- of Commerce, Industry, Mines major source of rural employment. tation in Yaoundé will support a and Handicrafts, a grant from the With the completion of its labeling development project led by Coleacp Standards and Trade Development process in 2018, the price per kilo- (Liaison Committee Europe-Africa- Fund (STDF) (...). The STDF and its gram of Penja pepper has risen from Caribbean-Pacific) with €720,000 partners selected Coleacp to imple- XAF2,500 to XAF14,000. However, for (about XAF471.6 million). ment the project [until 2022],» says the producers, its production is gradually «To meet the sanitary and phytosa- project’s term sheet. turning into a nightmare because of nitary challenges in a sustainable Penja pepper, considered one of the pests that have taken over the land in framework that respects traditio- best peppers in the world, is the first the locality of Penja. nal know-how, the Geographical protected geographical indication

26 N° 87 / May 2020 AGRIBUSINESS

Banana exports up by 2,700 tons YoY in April 2020, despite coronavirus health crisis

In April 2020, Cameroon exported subsidiary of Compagnie fruitière All these performances, despite the 16,102 tons of banana, according to de Marseille, whose exports rose health crisis, can be explained by the the banana exporters association by 2,538 tons year-over-year (from rainy season which started after a Assobacam. Compared with the 12,427 tons in April 2019 to 14,965 harsh dry season. Because of that dry 13,381 tons it exported in April 2019, tons in April 2020). season, the country’s banana exports this represents an increase of 2,721 The same uptrend performance was fell year-over-year in Q1-2020, tons year-over-year despite the coro- achieved by Boh Plantations. This notably with a cumulated decrease navirus health crisis affecting almost local company exported 1,137 tons of 12,000 tons in February and March all of the country’s economic sectors. of banana during the period under 2020. This increase is notably due to the review, up from the 954 tons shipped performances of PHP, the local in April 2019 (+183 tons). A new phytosanitary regulation disrupts Cocoa and coffee exports In Cameroon, cocoa and coffee cation fees. Because of this situation, institutes new operations, such as the exports have been blocked since the cocoa and coffee exports are now at a inspection of empty containers and entry into force of “the joint order No. standstill at the port of Douala,» the their fumigation, whose costs will be 00022/Minader/Minfi of 4 April 2019 GEX explains. borne by the exporter. setting the costs of health inspection According to the GEX, the time The GEX further indicates that the and certifications as well as the moda- required for administrative proces- congestion caused by this order lities of management of income from sing, which already represented on impacts the quality of the products. these operations.» This is disclosed in average 70% of the time needed to Exporters need to respect interna- a letter sent on April 23, 2020, by the complete phytosanitary formalities tional contractual commitments, the local association of cocoa and coffee (about 30% for actual processing), has costly management of counterparty exporters GEX, through its perma- increased considerably. The reason risks, and the repatriation of funds. nent secretary Jean Dikoume, to the is that collection operations backed «Given the seriousness of the exposed Minister in charge of Agriculture by treasury receipts are now carried situation, we request your involvement (Minader). out before the proper checks and the in this matter to urgently provide an «The impacts of this new procedure stage receipts in the files are verified appropriate response. We would be are currently very detrimental to the for the documents to be signed. particularly grateful for any instruc- cocoa and coffee sectors in our country For the increase in inspection costs, tions you may wish to give with a view [Cameroon]. For some time now, we GEX explained that since the entry to (...) suspending the collection of phy- have been receiving complaints from into force of that order on April 1, tosanitary inspection and certification our members about the significant 2020, for the exportation of a 20-foot fees for the cocoa and coffee sectors,» delays in processing their files at the 25-tonne cocoa container, the overall the association continues. phytosanitary police station in the port cost of phytosanitary inspection The Minader has not yet officially res- of Douala and the major difficulties and certification has increased to ponded to this complaint but credible in coping with the sharp increase in XAF100,500, i.e from 87% to 175% sources indicate that he received the inspection and phytosanitary certifi- in relative terms. Also, the order note on April 24.

N° 87 / may 2020 27 ENERGY Cameroon seeks new partner for the construction of 350MW Limbe thermal plant

MW, the Limbe gas-fired power station is expected to improve the supply of electricity in the Littoral, West, and South-West regions, the government indicates. Does this call for expression of inte- rest put an end to the collaboration between the Cameroonian govern- ment and Eranove group on this project? Indeed, on 22 April 2014, Cameroon signed a memorandum of understanding with this group controlled by the investment fund Emerging Capital Partners (57%) for the implementation of this project. On March 5, 2015, Eranove even launched a call for expression of On May 7, the Cameroonian of a gas-fired thermal power plant in interest to recruit a design and engi- Minister of Energy and Water, Limbe, Southwest Cameroon. neering firm to evaluate the project. Gaston Eloundou Essomba (photo), Bidders have till July 10, 2020, to This evaluation was to determine the launched a call for expression of inte- submit bids for this project, which financial viability of the project. This rest to pre-qualify partners for the must be completed by 2024 (official evaluation seems to have repelled study, construction, and operation schedule). Eranove. (Built Operate and Transfer mode) With a production capacity of 350

Eneo announces “very encouraging” Q1-2020 operating results Our operating results for the first in Cameroon,» said the CEO of this Eneo, who blames this situation on quarter are very encouraging. Let’s company controlled by the British «the insufficiency of fuel in some ther- continue our efforts.” This is one of investment fund Actis. mal power stations, due to enormous the main messages addressed to the «After its stabilization in the second cash constraints.» electricity utility company Eneo’s quarter of 2019, distribution yield is At the same time, he notes, the staff by its Managing Director, Eric now following a clear upward trend waiting time for clients who request Masuy, during the Labour Day cele- since January 2020, remaining slightly connection to the network has been bration on May 1, 2020. above the 70% mark, pending the decreased by half compared with the «In general, production performance results of April,» he says by way of level in 2019, he indicated. Although is holding up well, with innovations illustration. this performance is appreciable, and a promising dynamic. Eneo did In terms of quality of service, he said, «an improvement is needed well in ensuring the coverage of a disruptions have persisted on the here, as well as in the number of new demand that has evolved since the Eneo network. «There has been a lot connections. Teams must focus on this beginning of the Coronavirus epidemic of rationing,» confesses the CEO of objective.»

28 N° 87 / May 2020 INDUSTRY Brewers will continue operations despite health crisis, Producers association CAPA assures

supermarkets, and hypermarkets as well as consumers that the produc- tion and distribution of beverages will be done in strict compliance with the instructions and rules adopted by the State of Cameroon, barrier gestures, and social distan- cing notably. In Cameroon, the brewing industry is controlled by three companies: Société des brasseries du Cameroun (SABC - Castel group), Guinness Cameroon (Diageo group), and Union camerounaise des brasseries (UCB - Kadji group). They achieved a Despite the coronavirus health crisis, Cameroon, UCB, Sofavinc, and cumulative net turnover of XAF457.2 beverage producers will continue Fermencam) are “essential partners billion in 2018. During the period their operations, the Cameroonian in the development of several sectors under review, the total beer sales Association of brewers CAPA in the country and they intend to of all brewers in Cameroon were informs. continue to fulfill their roles as actors estimated at 6,500,000 hl (650 million According to the association, its of development, as they usually do.” litres), promotions excluded. member companies (SABC, Guinness It reassures distributors, retailers,

Cameroon plans actions, including tax relief, to boost local pharmaceutical industry Cameroon is currently planning to and Essential Medical Consumables demand, estimated at XAF200 billion boost the still embryonic local phar- (CENAME). The second axis is focused on average. The remaining demand is maceutical industry through two on the densification and diversifi- covered by imports. lines of action. This was revealed by cation of the local pharmaceutical He explained that the most signi- Gabriel Dodo Ndocké, the Minister industry, through the development of ficant constraints hampering the of Industry, during the April cabinet wood and non-wood resources in the development of the pharmaceutical meeting. production of medicines,» the release industry in Cameroon are the high «The first axis consists of the impro- after the meeting indicates. cost of production factors, mas- vement of the competitiveness of the According to the official, Cameroon sive and fraudulent drug imports. pharmaceutical industry. This will currently has fifteen industrial These are coupled with inadequate notably be done through updating and units for the production of medical materials and equipment as well as reduction of the tax burden on existing consumables and liquid, dry or injec- difficulties in accessing the necessary industrial units and the strengthe- table medicines. However, national funding for the development of a true ning of the financial capacity of the production of essential drugs covers local pharmaceutical industry. National Supply Center for Drugs less than 5% of annual domestic

N° 87 / may 2020 29 TRANSPORTATION

Cameroonian haulers once again allowed entry into the Central African Republic

On May 1, 2020, Milan Trojanovic, Cameroon and the CAR to deliver the will be agreed between the two govern- Director of Mission Support, UN cargo to Bangui. ments,» he continued. Multidimensional Integrated According to the May 1 release, The 1,500 km long Douala Stabilization Mission in the Central only contractors transporting (Cameroon)-Bangui (CAR) corri- African Republic (MINUSCA), issued MINUSCA goods were concerned dor is served by a little over 5,000 a new release in which he implicitly by the April 28 release. The fact trucks. According to the agreement announced that Cameroonian truc- that all Cameroonian haulers have between the parties, 60% of the kers are once again allowed to enter been included is just an obvious carriers would be Cameroonians, the Central African territory. misunderstanding, Milan Trojanovic and 40% CAR citizens. However, in a This decision, therefore, cancels that explains. Hence, the May 1 release to study published in 2019, the African of 28 April 2020 by MINUSCA, which cancel the previous decision. Development Bank (AfDB) reveals prohibited Cameroonian haulers «All the issues raised in the decision that only five CAR drivers are active from entering the CAR. are null and void,» wrote the Director along the corridor. This means that «Due to the emergency caused by the of Mission Support in the May 1 out of the 5,000 drivers who supply Convid-19 pandemic, as of today, release. the Central African Republic with no driver or any other passenger «Concerning the transport of goods and other commodities, 4,995 from Cameroon will be allowed to MINUSCA goods, you will comply with are Cameroonians. enter the Central African Republic,» the procedures, rules, and regulations According to figures from the MINUSCA announced. At the in force- agreed bilaterally between Cameroonian customs, apart from same time, the UN mission invited the governments of Cameroon and the logistics of the UN security Cameroonian haulers to organize the Central African Republic- for the mission, about XAF55 billion worth their cargo deliveries so that drivers management of movements of the of Central African goods transit on the Central African Republic side transport sector across the border. Any through Cameroon every year. can take over at the border between modification of the existing procedures

30 N° 87 / May 2020 TRANSPORTATION

Coronavirus: Trade flows on the Douala- Ndjamena and Douala-Bangui corridors dropped by 80% YoY in March 2020

Cameroonian authorities’ decision ver, come from foreign countries many economic operators to divert to maintain trade with other CEMAC whose borders have also been closed their goods from the port of Douala countries, despite the border clo- for several weeks because of the to Beninese and Sudanese ports, sures it decided as part of the fight Coronavirus crisis. according to the analyses made by against Covid-19, does not seem to In 2013, Cameroonian customs those in charge of the port of Douala. have prevented the collapse of trade revealed that XAF340 billion worth Consequently, since 2014, the volume flows on the corridors serving Chad of Chadian goods transit through of goods circulating along the corri- and CAR. Cameroon every year and XAF55 dors in Cameroon has been reduced Customs sources, quoted in a report billion for Central African goods. by 600,000 tons, causing port actors broadcast by Cameroonian public But before the Coronavirus crisis, and transporters a loss estimated at television CRTV, say that trade things had already changed a lot. nearly XAF200 billion. These figures flows on the Douala-Ndjamena and Not only because of the economic were revealed on July 11, 2018, in Douala-Bangui corridors fell by 80% slowdown in Chad, since the fall in Douala by Cyrus Ngo’o, the Managing year-over-year in March 2020. the prices of crude oil in 2015, but Director of the Port Authority of This drop is all the more unders- also because of the insecurity in the Douala (PAD) during a 3-day seminar tandable since traffic on these two CAR, triggered by the fall of President on the implementation of the recom- corridors is mainly due to Chadian François Bozizé in 2013. mendations of the 2nd tripartite and Central African goods, which Also, there were police and admi- Cameroon-Chad-CAR forum on port transit through the port of Douala nistrative harassment along the issues. in Cameroon. These goods, howe- corridors. Those harassments forced

N° 87 / may 2020 31 ITC & TELECOM The Minpostel suggests creation of digital economy development centre to boost telehealth During the cabinet meeting held on help solve that problem while the April 30, in Yaoundé, the Minister country will focus on solving confi- of Posts and Telecommunications dentiality problems related to the use (Minpostel), Minette Libom Li of health information systems as well Likeng, suggested the creation of as the unavailability of electricity and a Digital Economy Development the internet. Centre to increase the integration During the cabinet meeting, the of information and communica- Minpostel also indicated that the tion technologies (ICT) in health government has adopted a 2020-2024 practices. Strategic Plan for Digital Health, The Centre should focus on the to support ongoing initiatives, production of digital solutions and such as the National Emergency «Made in Cameroon» applications as Telecommunications Network well as the large-scale interconnec- project. Also, many ambitious tion of health facilities, she explained. initiatives are being developed in According to the Minpostel, this telehealth startups. These include will resolve Cameroon’s problems in online consultations with a doctor or integrating ICT to the health sector online analysis of cardiology para- since the country currently faces a meters and the search of available shortage of local applications and pharmacies. digital terminals. The centre will thus Camtel’s wholesale segment gets ISO 9001/2015 certification monstrated its ability to consistently provide products and services that meet customer requirements and comply with legal and regulatory requirements. The ISO 9001/2015 standard was created to increase customer satis- faction through the effective appli- cation of a standard management system. This certification of confor- The wholesale segment of Camtel wholesale department of the public mity is valid for three years and a [Cameroon Telecommunications] is telecom operator complies with the surveillance audit is carried out once now ISO 9001/2015 certified,” the pu- requirements of this standard. a year in the certified organization or blic telecom operator announced on The certification shows that Camtel’s company. May 6. This certification means the quality management system has de-

32 N° 87 / May 2020 SERVICES Cameroon has 900 tourist sites, tourism operators reveal Cameroon has a potential of 900 Thanks to this potential, tourist rism and accommodation sector is recommendable and visitable tourist arrivals have doubled over the last the most affected by this pandemic. sites. The estimate was presented 10 years from 500,000 in 2010 to 1.1 As proof of this forecast, the opera- by operators of the tourism sector million at end-2019, the operators tors indicate that since the confirma- during a meeting on April 30, 2020, disclosed. tion of the first case in early March, in Yaoundé, to find solutions for the Due to the coronavirus, they expect two-thirds of the hotels in Douala revival of the sector hit by the coro- this increase in the number of arri- have stopped operations. navirus pandemic. vals to come to a halt since the tou- Pub house operators promise to reduce seating capacity by half to fight the Covid-19

In Cameroon, the syndicate of seating capacity in drinking establish- houses, and restaurants to reopen pub house operators (Synedeboc) ments during the pandemic.» It also is a way to support the brewing promises to implement measures to pledges to ensure that drinking areas sector which “is important in the combat the coronavirus. are ventilated as much as possible. Cameroonian economy and provides According to a note from its natio- The union will make sure that par- direct and indirect jobs.” nal coordinator, Valéry Ntendie, the ticular measures are implemented If respected, these measures could measures include the installation of by organizing controls, the note silence the criticism the government hand-washing devices, the manda- informs. is facing for softening the coronavi- tory wearing of gloves and masks Synedeboc believes that the govern- rus preventive measures by staff, and «the 50% reduction of ment’s decision to allow bars, pub The hotel and accommodation sector is struggling because of the coronavirus In Cameroon, the transport, restau- After the closure of Cameroon’s public hotel in the Cameroonian rant, hotel, and accommodation borders on 17 March 2020, ban on capital, 1,050 overnight stays were sectors are the most affected by the tourist arrivals and the prohibition of canceled in March 2020, according Coronavirus crisis, according to ceremonies (conferences, seminars, to the managing director Nicolas various official reports. While some banquets, etc.) the hotel chain simply Tchobang. At the same time, 600 of those sectors are still operating closed its doors. foods ordered could not be served albeit slowly, the hotel and accom- Other hotels, whose managers are a because of the cancellation of ban- modation sector has come to a little optimistic, continue to operate, quets, he adds. complete standstill. but the few employees still at work Due to that sharp decline in activi- The most striking example is the La are most of the time idle. As soon as ties, the managing director decided Falaise hotel chain, which is one of the restrictions decided on March 17 to provide paid leave to about 60 the most prominent in the country to curb the spread of the coronavirus employees. For the entire sector, with four establishments in Douala were imposed, hotel reservations things are not getting any better. and Yaoundé, Cameroon’s two main sharply slumped cities. At the Hotel Mont-Fébé, a four-star

N° 87 / may 2020 33

LEADER OF THE MONTH

Cameroonian Éric Valéry Zoa becomes MD of Atlantic Bank Cameroon

Éric Valéry Zoa, who spent his whole career at Atlantic Bank group, replaces the Ivorian Olivier William Bene Sammarie, after 6 years as the Deputy General Manager of Atlantic Bank Cameroon. He is appointed head of a bank that operates in an ecosystem of 15 credit institutions that compete fiercely with one another. At the end of 2019, Atlantic Bank Cameroon posted a provisional net profit of CFA7 billion, up 17% year-on-year. At the same time, it indicated deposits amoun- ting to CFA250 billion (up 44% year- over-year) and about CFA206 billion of loans granted to clients (+29% year-over-year).

Comforted by these performances, the bank believes “it has taken off for good” in the local banking market and plans to be counted “among the largest” in the country this year. This will be the main task to be tackled by Eric Valery Zoa, apart from digita- lization, which is also an important part of the missions.

Atlantic Bank Cameroon, which recently welcomed a new share- holder («Société civile First Group Investment») manages a network of 20 points of presence spanning over 7 out of the 10 regions of Cameroon. Officially, the bank has over 120,000 Cameroonian Eric Valéry Zoa (49) Cameroon. His appointment was active clients. is, since April 1, 2020, the new decided during the board meeting Brice R. Mbodiam Managing Director of Atlantic Bank held on March 31, 2020.

34 N° 87 / May 2020 LEADER DU MOIS Be a part of building tomorrow’s Cameroon Each month, learn about Cameroon’s economic progress

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