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President of the Financial Market Commission and other officials during the 2 days symposium enabled by UCCC on reviewing the financial mart in Cameroon at the Hilton Hotel in Yaoundé under the leadership of the Minister of Finance HE Alamine Ousmane Mey and the participation of all major banks, investors and other players within the financial market
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The transportation sector is increasingly given a place in the implementation of growth revival strategies in Cameroon. The objective is to rehabilitate and develop major, build new ports, revitalize air transport nationally and in the region.
Road Network
Cameroon has a road network of more than 50,000 km comprising a priority network of 28,600 km with 4950 km of tarred roads, 11,670 km of earth roads and 123,553 km of rural roads; as well as a transit network serving the CEMAC zone of 6080 km with 3297 km of tarred roads and 3300 km of roads to be tarred. Moreover, the government of Cameroon has been implementing a series of deterrent and repressive measures over the past years to protect road infrastructure. These measures are geared towards respect of the authorized legal loads and the respect of rain gates.
Air transport
Cameroon has about ten airports that meet the standards of the International Civil Aviation Organization (ICAO), including three Class A airports in Yaoundé, Douala and Garoua.
Airlines: the government of Cameroon has initiated a process for the restructuring of the national airline which led to the establishment of CAMAIR CO. Other airlines operate in Cameroon alongside CAMAIR CO, namely Air France, SN Brussels, Kenya Airways, Ethiopian Airlines, Swiss International, West African Airways, Air Gabon, Toumai Air Tchad, Air Ivoire, Lina Congo, Air Guinea Cargo, LHU (Germany), Benin Golf Air, Africa West Cargo, Iberia (Spain), etc.
Rail network
This sub-sector is currently managed by CAMRAIL, through the concession signed in 1999 with the government. The overall rail network stretches over 1016 km of main tracks. It includes 33 railway stations of which the Bessengue railway station in Douala is the largest.
Railway lines: The rail network is broken up as follows:
Maritime transport
Cameroon has a large seaboard which confers on the country a strategic position in the Gulf of Guinea. Most of Cameroon’s foreign trade transactions are by sea. The country has four ports at present: the Douala port which is functional, and three other ports under rehabilitation namely Kribi, Limbe and Garoua ports.
The Douala port authority: this port controls most of the maritime transport of Cameroon with 95 per cent of shares representing 5,503,623 tons broken down as follows: 5.4 million tons for international traffic, 140723 tons for cabotage traffic, including 1215 ocean vessels and 2147 cabotage ships. Wood and lumber products account for 65 per cent of the total volume of exports excluding cabotage.
Shipping lines : the liberalization policy initiated by the Cameroon government in 1998 in the port sub-sector led to the privatization of the National Shipping Line CAMSHIP in which the State had 67 percent of capital. The Cameroon Handling and Stevedoring Company (SOCAMAC), and the Cameroon Container and Transit Transport Company (CAMTENER) which were under State-control were also privatized.
Legal framework:
The government has made remarkable efforts to reduce the costs and time spent in ports particularly at the Douala port authority which manages the bulk of maritime traffic in Cameroon. The establishment of the One-Stop-Shop for Foreign Trade (GUCE) has contributed to the significant reduction of the period of treatment of goods.
TourismCameroon is recognized as one of the most popular tourist destinations in the world. The country has great tourist assets which only need to be developed. In this respect, the government of Cameroon launched an important project for the promotion of its tourist potential which hinges on the following objectives:
Furthermore, the government undertook the following actions:
Since 2008, Cameroon has reached the number of 500,000 visitors per year, which is the World Tourism Organization’s standard to become a tourist destination. Cameroon tourist potential offers a remarkable variety of attractions to tourists.
Safari and hunting
There are seven national parks in Cameroon which abound in animal species: elephants, lions, gorillas, chimpanzees, monkeys, buffalos, antelopes, giraffes, hippopotami, etc.
There are also 5 km of earth roads that are maintained and give access to hunting zones. The hunting season is launched in December and closed in May. Protected species cannot be hunted.
Beach tourism
The coastal line of Cameroon is over 400 km. It is open on the Atlantic Ocean. It is a great attraction for beach tourism in Limbe and Kribi.
Mountain tourism
The high plateaux of the West region have a pattern which is favorable to mountain tourism thanks to the range of mountains and hot springs that stretch from North to South.
Cultural tourism
The high plateaux of the West region have a pattern which is favorable to mountain tourism thanks to the range of mountains and hot springs that stretch from North to South.
Cultural tourism
Several sporting activities are developed in Cameroon alongside the popular football, notably big game fishing in the Wouri estuary, golf practice in Yaoundé and Tiko, horseback riding in Yaoundé, Garoua and Douala, climbing and hiking on Mount Cameroon, the cycling tour of Cameroon, etc.
Ecotourism
Special sites are favorable to ecotourism in Cameroon, notably the Dja forest and wildlife reserve, classified world humanity heritage, the Korup park rich in rare plant species, the Mount Cameroon flora, etc.
Information TechnologyThe Information and Communication Technologies sector is fast-changing due to the 1999 liberalization. Several private firms operate in the sector alongside Cameroon Telecommunications (CAMTEL), the incumbent. In addition, the rise of the Internet and the penetration of mobile devices have enabled the creation of new online services in banking, communication and healthcare.
Telephone operators
The Cameroon government has granted two licenses to private operators, namely ORANGE and MTN to operate the mobile telephone; while the land line telephone is still monopolized by CAMTEL, the public operator. Cameroon Mobile Telecommunications, a branch of CAMTEL, was established in 2006. Competition became stiff after the arrival of the new operator in the sector resulting in a considerable drop in communication costs.
Community telecenters
The development of an information society in the context of globalization spurred the government to implement a project on the enhancement of the population’s means of access to information. Multimedia community centers were set up in the ten regions of the country to enable the population to have access to useful information in the domain of education, health, agriculture and environment using the Internet and the radio. Community telecenters are set up primarily in the rural areas. They aim to promote local development by providing ICT services in order to raise the standards of living of the rural population, to create income-generating activities and combat the rural exodus.
Internet
The Cameroon government is fully aware of the key role played by the Internet in development as well as its importance in bringing people together. In this regard, the government has reduced or abolished certain customs duties and taxes for the import of computers and accessories. This has helped expedite the expansion of the Internet nationwide. In 2002, the National Information and Communication Technologies Agency (ANTIC) was set up to promote and al at the Douala seaport Kribi Deep Sea Port. Investing in Cameroun pursue government action in the ICT sector.
E-Government
E-government appears to be a tool for governance efficiency since the advent of the information society. With the use of ICTs, the government has a valuable tool for the exchange of information within a short period of time thereby having a close eye on the functioning of government services and on the relations with its social and international partners. In concrete terms, e-government also referred to as “online governance” offers brighter prospects for the enhancement of governance, notably:
The infrastructure sector occupies a primordial position in the Cameroon vision of Emergence in the year 2035. The sector program was elaborated in 2008 and is in the Growth and Strategy Paper (ECSD) adopted in 2009. Since the adoption of these documents, the Cameroon Government has committed itself to the implementation of several development projects, such as the construction of Kribi Deep sea Port and fixing of Lom Pangar, Memve’ele and Mekin hydroelectricity dams etc. These developmental projects are implemented with the assistance of technical and financial partners in the framework of bilateral and multilateral cooperation or under contracts of public-private partnership (PPP).
Building AND Construction
Many building construction projects and public buildings are undertaken by the Government to provide the country with public service utility equipment and ensure the development of populations. There are the construction of hospital, school and university infrastructure, civil construction and hotels and construction of stadia, gymnasia and multi sports platforms.
Some of these works are carried out within the framework of bilateral cooperation, notably first-class hospital facilities, football stadia, technical training centers etc.
Public Works
In public works sub-sector, the Government has built and continues to build many roads to facilitate transportation of goods and people. These works are carried out on the public investment budget and external financing established with the technical and financial partners: World Bank, African Development Bank, European Development Bank, European Development Fund, Islamic Development Bank etc., or in the framework of bilateral cooperation.
Railway
In view of exploiting the mining deposits and extension of railway lines, construction projects are under studies and some concession contracts for studies, financing, construction and operating are in negotiation with private investors FO RTHE FOLLOWWIGN RAIL ROUTES:
Building material Industries
The development of the infrastructure sector had led to the development of industries producing construction materials: cement, rebar, zinc, wood and aggregates i.e., in the cement industry, the monopoly thus far held by CIMENCAM company, with its two production plants (one in Douala and one in Figuil), is now competing with Major Chains that currently import cement i.e., FOKOU, QUIFEYROU and SOCSUBA. Currently, a Nigerian-born investor is about to install a new factory in Douala. Korean investors are also planning to build another cement plant in Limbe.
Privatization of quarries for producing aggregates has led to the availability of aggregates in different regions of the country. However, production is insufficient and we are witnessing the proliferation of manual stone crushers. Other materials are imported or locally manufactured including rebars and zinc.
Civil engineering equipment
The only structure that has Civil Engineering Equipment is the National Equipment Pool (MATGENIE), under the supervision of the Ministry of Public Works. However, the number and quality of equipment available in this structure do not satisfy the demand. So, this organization is looking to acquire a number of equipment in the near term.
The industrial sector is one of the priority sectors for the revival of economic growth and fight against poverty. The industrial fabric is fast expanding and is quite diversified and includes the following industries:
Given the constraints associated with the liberalization of the economy and globalization, the government of Cameroon has readjusted its industrial policy to adapt to the new economic order. In concrete terms, this was translated by the improvement of the business climate through effective implementation of the Investment Charter of 22 July 2004. This Charter provides for the establishment of economic zones which will grant a number of tax incentives to investors according to the investment regime. For instance, under the reinvestment regime, the investor will benefit from a tax reduction equal to 50 per cent of reinvestments and an exemption from duties and taxes for the purchase of locally manufactured products.
This is in an attempt to take advantage of the strategic position conferred on it by a potential market of 200 million consumers in Central Africa, including Nigeria; the manufacturing industry accounts for 26 per cent of the GDP. More than 55 percent of industrial production is realized by about twenty companies which employ more than 5,000 workers, and account for 75 per cent of salaries, 65 percent of the turnover of the sector and more than 50 percent of exports.
Agro-industry
Agro-industry comprises two sub-sectors: agro-food industry and export agro-industry. The brewing industry plays a leading role in the agro-food industry sub-sector. Cameroon is among the biggest brewers in Africa with an average production of four million hectoliters. Four breweries are active in the sector. Meanwhile, export agro-industry is led by large corporations such as CDC which is specialized in the production of banana, palm oil and rubber; SOSUCAM (sugar); SODECOTON (cotton); SOCAPALM (palm oil); HEVECAM (rubber) ; PHP and SPM (banana) ; SAFACAM (crude and refined palm oil).
Extractive industry
It is specialized in exploitation, processing and supply of oil and mining products. This industry has a large expansion potential.
Textile industries
The sector is led by Cameroon Cotton Industry Corporation (CICAM) which produces 7,500 tons of cotton yarn and 32 million meters of printed fabric. Its branch, SOLICAM, manufactures terry cloth earmarked for exportation.
Metallurgical industries
ALUCAM is the leading company in the metallurgical sector. The company is specialized in the transformation of alumina into aluminum. ALUCAM produces 90,000 tons of aluminum ingots on average. The government, in partnership with RIO TINTO ALCAN, has implemented a vast project on the extension of ALUCAM in order to increase the production capacity of the company to 300,000 tons per year.
Engineering industries
A good example of engineering industries is shipbuilding. The leading company is the Cameroon Shipyard and Industrial Engineering Ltd (CNIC). Initially the CNIC focused on ship repairs but is now involved in shipbuilding. In 2008, CNIC built the first drill barge in Africa. Other companies specialized in hardware and boiler engineering operate alongside CNIC
Chemical industries
There are a few companies in this sector which manufacture detergents, perfumes, soaps, painting, pharmaceutical products, etc. The soap industry is highly developed; it is led by the Complexe Chimique Camerounais (CCC).
Electrical industries
In Cameroon, the sector still lags behind. The firms that operate in the sector are focused on the production of batteries (PILCAM) and storage batteries, assembly of household appliances and radios, and rewind of engines, etc.
EnergyTo date, the energy sector constitutes a highly strategic production factor. The development of this sector depends on implementation of major projects to revive growth.
Electricity:
Electricity is supplied in Cameroon by AES-SONEL whose generation capacity is estimated at 935 MW, with 722 MW of hydroelectric capacity and 213 MW of thermal capacity. This potential is expected to increase thanks to the construction of the Yassa heavy fuel plant at Dibamba with a capacity of 85 MW.
The Rural Electrification Agency (AER) has been set up alongside AES-SONEL to promote electrification in the rural areas.
Hydroelectricity:
Cameroon’s hydroelectric potential is the second largest in Africa after that of the Democratic Republic of the Congo. This potential is estimated at 995 Terawatts/h. Cameroon’s generation capacity can reach 20.000 megawatts in the few years provided adequate means are mobilized for the development of the sector.
Agriculture – The IndustryAgriculture is the backbone of the national economy. The sector employs ~60% of the labor force. In terms of exports, Cameroon’s agricultural output accounts for more than half of non-oil export earnings. Many factors contribute to the success of the agro sector including:
Our potentials
To corroborate this, we quote the Head of State, PAUL BIYA in a speech to the diplomatic corps on January 10 2014, “I would like to state before you all that Cameroon will always be pleased to welcome private foreign investors. We are offering them mutually beneficial partnerships”.
International partners have supported Cameroon in driving transformational and sustainable change in the Cameroon Agricultural sector with increased focus on the value chain in order to foster the creation of value-added cooperatives as engines of local economies. In addition, the goal is move toward building strong linkages between agricultural production and institutions incl. private sector entities, agro-industries…Our approach is market oriented and demand driven in order to ensure that we meet market needs.
Opportunities in developing and upgrading value chains
Expectations for agriculture development
The development of the agro industry in Cameroon is expected to lead to the following:
The national agricultural investment plan (PNIA)
To enable the development of the agricultural sector, the Cameroonian government recently approved its National Agricultural Investment Plan (PNIA), which aims to invest 3.35billionFCFA in the development of agriculture for the seven year period 2014-2020. Out of this, over 1.5billion (42% of the full amount) are to be raised from lenders. The PNIA aims to:
This agricultural investment plan is a direct result of Cameroon signing the Detailed Program for Agricultural Development in Africa (PDDAA) pact, implemented by the NEPAD. By joining this pact, Cameroon is committed to devote10% of its national budget to agriculture.
Cameroon has a varied portfolio of both food and cash crops. Food crops include cereals, plantains, roots and tubers, fruits, vegetables. Cash crops include cocoa, coffee, palm oil, banana.
Cereals:
Maize output reaches 1,085,000 tons. The aim of the government’s policy is to increase this production to 1,960,000 tons in 2015. Projects to achieve this objective include the following
The production of rain-fed and irrigated rice stands at 60,000 tons. The objective is to increase this production to about 170,000 tons in 2015. The Upper Noun Development Authority (UNVDA), Rice Extension and Modernization Corporation (SEMRY) are also very significant actors in the rice sector.
Plantain:
The production of plantain stands at 1,350,000 tons. The objective is to increase this production to 2,700,000 tons in 2015 and develop the value chain within the framework of the Program for the Revival of the Plantain Sub-sector (PRFP).
Roots and tubers:
he objective is to increase roots and tubers (cassava, Irish potato, sweet potato) production to 6,319,000 tons in 2015 as against 3,836,000 tons through the Agricultural Investment and Development Market Project in Cameroon (PIDMA), Program Pioneer and the Grass field Project.
Fruits & Vegetables:
A diagnosis of this sector has been financed by the European Union. The study concluded that Cameroon has a strong potential for growing fruits especially citrus varieties in the Littoral, West, Centre, Far-North and South. Tomato production stands at 430,000 tons and onion at 80,000 tons.
The government through the Support Project to the Development of the Agric Sectors (PADFA) and IFAD is working to boost the production of onions. The Ministry of Agriculture and Rural Development has initiated a project to export citrus and mango products by the year 2020.Furthermore, pineapples are envisaged for export to the United States market through the African Growth and Opportunities Act (AGOA). Cameroon seeks to attract Foreign Direct Investments (FDI) to push the country’s ambition and potential to embark on a structural transformation process in this sector.
Cocoa:
Production stands around 180,000 tons and should be increased to 280,000 by 2015. The Arabica and Robusta coffee production stands at 10,000 tons and 50,000 tons respectively. Two projects are being implemented to boost cocoa and coffee productions through efficient production and improved plant material.
According to statistics provided by the inter-Professional Cocoa and Coffee Council (CICC), Cameroonian producers exported 187 tons of “washed coffee” in 2013 – a flavor that is valued by “niche” markets. Cameroon has been one of the pioneers in washed Robusta coffee. Robusta coffee-washing factories have opened in Santchou (West), Mouambong (between the coastal and south-western regions) and Angossas (in the east).
There are Arabica coffee-washing factories in the west and north-west. But Cameroonian coffee roasters process only 5% of national production of Arabica and Robusta coffees so there is great potential for investment and growth in this sub-sector.
Palm oil :
Production is expected to rise from 130,000 tons to 166,000 tons in 2015. This will be achieved through the Program for the development of small-scale palm groves. Industrial Palm oil production is undertaken by the Cameroon Development Corporation (CDC), PAMOL Plantations and the Société Camerounaise des Palmeraies (SOCAPALM).
Cotton fiber:
Production stands at 83,000 tons. This sub-sector is facing a drastic drop in international prices due to western subsidies.
Natural rubber:
Production stands around 62,000 tons. An average 7% increase is expected by 2015 thanks to the rise in international prices.
Tobacco:
Production stands at 260,000 tons. The main producers and exporters are the Cameroon Development Corporation and the Plantations du Haut Plateau Penja.
Forestry/Logs:
Cameroon’s forests cover 40% of the national territory representing 22.5 million hectares. Loggers are increasingly interested in Cameroonian forests with their more than 600 marketable species. The most prized species include iroko, akki, sapelli, mohabi, sipo, swetenia, movingui.
Log production stands at about 2.3 million m3. Initiatives to maintain this production volume are centered on the Forest and Environment Sector Program (PSFE). The Program aims to promote reforestation and sustainable management of forest and wildlife resources. It seeks to ensure biodiversity conservation and promotes community management of the forest and wildlife heritage to improve living conditions of the population. The National Forest Development Support Agency (ANAFOR) has been set up to assist in the implementation of the National Program for the development of private and community forest plantations. More specifically, the aim is to provide training services and supervise grassroots communities within the development of forest plantations.
Livestock:
livestock plays a prominent role in Cameroon’s economy. In order to meet the nutritional needs of the population, Cameroon plans to double meat production by 2015, exporting any surplus. The size of cattle production is expected to move from 5,600,000 head to 15,746,277 head in 2015.
Several Programs and projects are being implemented to enable this growth including the Pan African Program for the Control of Epizooties (PACE) and the Support Project for the Control of Animal Trypanosomiasis and their vectors (PALCTAV). These projects will improve the animal production environment by strengthening the capacity of producers and improving veterinary services for the epidemiological surveillance of trans-border diseases.
The government is also seeking to increase dairy production and create employment in pastoral communities, through the Small Holder Dairy Development Project. In the pig breeding sector, increased production is projected at 3,374,202 head in 2015 compared to the current 1,200,000 head through the Program the Development of the Pig Sub-sector (PDFP). Poultry production stands around 20 million.
There is a huge potential in the animal feed and milk transformation industry.
Fisheries:
With an expansive seaboard, Cameroon is endowed with enormous halieutic assets for local demand and also for agro industry which remains under-exploited. Fisheries production is estimated at 173,000 tons with 93,000 tons produced by small-scale maritime fishing, 75,000 tons from continental fishing and 5,000 tons from fish ponds.
Several projects are being implemented to improve fisheries production namely:
In this sector, the aquaculture and shrimp industry present a huge investment potential.
Such incentives are applicable to companies that invest in certain government priority sectors including:
Special incentives which could be cummulated with common incentives:
Export oriented companies shall benefit from:
Existing companies engaged in an investment program aimed at expanding its production capacity renewal of its assets or increasing its performance can benefit for a maximum of a 5 years period from the common incentives mentioned above if their investment program ensures increase in the production of goods or services, or Cameroonian employees by at least 20%.
Financial and administrative incentives.
Additional government’s commitments to facilitate private investments.
Investors approved in this sector benefit from the following special incentives:
During the installation phase that cannot exceed 5 years, they benefit from:
During the 1st ten years of exploitation the following benefits apply:
The government of Cameroon issues two types of permits:
Holders of exploration permits benefit from:
Holders of mining permits benefit from the following incentives:
Activity should be in compliance with rules and regulations in force and must meet one of the 4 following conditions:
Tax and customs incentives are granted to the investor during the set-up and operational phases per the below:
Incentives during the installation phase (validity: 5 years)
Incentives during the operational phase (validity: 10 years, maximum)
The investor may enjoy exemptions from or reductions on payments of the following taxes, duties and other related fees subject to the scale of the investment and the expected economic returns thereof:
The investor may also enjoy the following benefits
An investor can benefit from tax credit provided he hires at least five (5) graduates of higher education per year; fight against pollution; promote sporting, cultural or social activities; promote public interest activities in rural areas. Some of the above incentives may be extended to shareholders, promoters and local contractors based on the magnitude of the project.
See more details on agro opportunities
