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Business in Cameroon N°87: May 2020 BUSINESS IN May 2020 / N° 87 MAJOR PROJECTSCAMEROON - AGRICULTURE - ENERGY - MINING - INDUSTRY - SERVICES - FINANCE Roads, dams, fiber optics, markets... Cameroon’s big projects toward integration «Central Africa is facing Cicam gets an unexpected enormous challenges» - AfDB second chance FREE - CANNOT BE SOLD 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 Bank Office - Distribution Cameroon Cameroon Albert MASSIMB, [email protected] Tel : 00 237 694 66 94 59 Free – cannot be sold www.businessincameroon.com - [email protected] 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 West Africa (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. Benin to Togo 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.
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