Reasons to invest

1.GEOGRAPHICAL POSITION

With an area of 475,442 km2, Cameroon is located in the heart of Africa, in the Gulf of Guinea.

Opened on 600 km of coast with the Atlantic and sharing to the west along the border with the Federal Republic of Nigeria, a member of the Economic Community of West African States (ECOWAS), Cameroon is part of the Central African Countries and is bounded to the east by 5 (five) countries of this vast economic zone (Chad, Central African Republic, Congo Gabon and Equatorial Guinea). It is, therefore, a privileged strategic crossroads between Central and West Africa.

2.ECONOMIC RESILIENCE

.The desire of the State of Cameroon to become an emerging country by 2035 translates into:

• Structural reforms of the economy and public finances that began in the 1990s;
• Putting in place a favourable framework and incentive for businesses;
• Developing the human capital through the promotion of training and capacity building;
• Prioritizing investments in infrastructure and production sectors;
• creating and making use of new sources of growth by creating competitiveness poles;
• The ongoing need to accelerate economic growth to improve people’s well-being and meet international commitments.

3.A LIBERAL ECONOMY

Cameroon’s considerable natural resources (climates, land, soils and ecosystems, which is why it is called “Africa in miniature”) are undeniable assets in the promotion of private investment. Cameroon has the following advantages:

• 17 million hectares of exploitable forests, making Cameroon the second largest forest in Africa. In this area, 9.7 million hectares of land is arable and only 19.5% are occupied (approximately 1.9 million hectares);
• A dynamic population estimated at 23.25 million in 2017, 75% of whom are young people under the age of 25;
• Sustained economic growth, with an average annual growth rate of about 4% since 2013;
• Reforms to improve the business climate and promote private investment;
• A diversified economy.

4.OPPORTUNITIES TO INVEST

The desire to improve the attractiveness of the Cameroon destination for investors has led to:

• The creation of entities dedicated to improving the attractiveness of the Destination Cameroon, such as the Investment Promotion Agency, the Competitiveness Regulatory Council, the Cameroon Business Forum, the Business Integration Centres, the Foreign Trade One-Stop Offices, etc.;
• The organisation of international meetings such as the International Economic Conference in Yaounde on 17 and 18 May 2016, which enabled the government, local and regional authorities and private businessmen to present their projects to donors;
• The organization of the Cameroon Investment Forum (CIF) by the Investment Promotion Agency, with an investment market;
• Strengthening good governance and transparency in the management of public finances through the creation of supervisory institutions such as the National Anti-Corruption Commission (NACC), the Supreme State Control, the Audit Court, the National Agency for Financial Investigation (ANIF), etc.

5. INCENTIVES

Governed by law 2013/004 of 18 April 2013 laying down incentives for private investment in the Republic of Cameroon, these incentives provide the opportunity for local and foreign investors to access indiscriminately, for the benefit of tax, financial and administrative incentives.

6. SECTOR-SPECIFIC REGIMES GOVERNED BY SPECIFIC TEXTS

In the hydrocarbon sector

The law of 25 April 2019 governing the new oil code in force in Cameroon, grants incentives of all kinds. These incentives help mitigate the risks investors take in the oil sector and improve the economy of their projects.

Taxwise, this oil code offers tax consolidation measures, periods of tax exemptions, a tax rate reduced to 35%, incentives to acquire seismic data, exemption from the payment of signing bonuses, etc. The text also specifies that specific investment programmes aimed at increasing production, such as tertiary recovery, can benefit from incentives.

Mining

Incentives in Law No. 2016/017 of 14 December 2016 under Mining Code have been improved to promote the sector in Cameroon. Important tax and customs benefits are offered to research or mining companies, including exemption from the patent, free registration of company deeds, VAT exemption on local purchases and imports of mining equipment and equipment on the mining list, admission to the temporary customs regime for mining equipment and machinery, etc.

Sector Opportunities

1.AGRICULTURE

Cameroon’s economy remains resilient at a growth rate of 4.1% despite the unfavourable economic conditions observed in CEMAC. The development of activity is driven by the tertiary sector, which contributes 2.3 points to real GDP growth. The primary and secondary sectors each contribute 0.9 points.

Cameroon’s economy remains resilient at a growth rate of 4.1% despite the unfavourable economic conditions observed in CEMAC. The development of activity is driven by the tertiary sector, which contributes 2.3 points to real GDP growth. The primary and secondary sectors each contribute 0.9 points.

EXPORT CROPS:

• Cocoa
• Coffee
• Natural rubber
• Banana
• Cotton
• Crude palm oil

FOOD CROPS

• Maize
• Millet / Sorghum
• Pady rice
• Roots and tubers
• Banana, fruits, vegetables and legumes

2.ENERGY

Cameroon’s energy balance shows a clear predominance of renewable energy sources (biomass). Although Cameroon is an oil-producing country, the share of imported petroleum products in domestic consumption increased significantly between 1990 and 2000, with imports exceeding 56% in 2000, before falling again in 2003. Oil imports, which account for the country’s total energy imports, totalled 2,356 ktoe in 2007.

Access to energy has steadily improved in Cameroon. Estimates of urban access suggest that between 65% and 88% of the urban population has access to electricity. Thus, access to electricity in urban areas in Cameroon is more substantial than in most low-, medium- and rich-resource African countries.

3.LIVESTOCK AND FISHERIES

In 2016, the value-added growth of the livestock industry was 4.9%, down 2.4 points from 2015. The value added of fishing and fish farming increased by 4.3% after 3.1%. In 2016, the cattle herd grew by 8.7% to 7.5 million head. The amount of meat from slaughter is 122,732 tonnes compared to 112,909 tonnes in 2015. The increase in meat production is linked to the construction and equipment of slaughterhouses and slaughter areas and, to the intensification of traceability of meats for consumption.

Fishing production is estimated at 218,191 tonnes in 2016, an increase of 3%. In terms of fisheries development, the key actions concern: the construction of 3 fish sales halls, a smokehouse and 3 wharves; the fight against illegal, illegal and undeclared fishing carried out in collaboration with MINDEF.

4.INDUSTRY

The government is taking action to strengthen the industrial fabric and improve the contribution of industries to growth. These include: the enactment in December 2016 of the new mining code; ownership of the new industrialization master plan; carrying out an audit, with a recovery plan from the National Investment Corporation.

• MANUFACTURING 
• EXTRACTIVE INDUSTRIES 
• CHEMICAL INDUSTRY
• MECHANICAL AND METALLURGICAL INDUSTRIES
• TEXTILE AND LEATHER INDUSTRIES

5. MINING

In 2016, gold production from artisanal mining companies was 542.1 kg compared to 795.3 kg in 2015. This decrease follows the reduction in the number of operating positions from 129 to 78. CapAM (Centre for Support and Promotion of Mining Activities) has channelled 36.6 kg of gold into the formal circuit, and returned 53.4 kg to the public treasury. In addition, the evaluation of gold mining activities has enabled the mapping and geo-referenent of 101 active mining sites in the eastern and Adamaoua regions.

6.HYDROCARBONS

CRUDE OIL

Crude oil production in 2016 was 33.7 million barrels compared to 34.9 million barrels in 2015. This decrease can be explained in particular by the decline in production from mature oil fields.

NATURAL GAS

In 2016, natural gas production remained almost stable at 12.6 billion cubic feet. Natural gas shipments to industries were up 22% from the previous year. In the first half of 2017, natural gas production was 6.9 billion cubic feet, an increase of 7.8% compared to the same period in 2016.

DOWNSTREAM PETROLEUM PRODUCTS

In 2016, production of white petroleum products was 1,360,150 metric tons, up 1.7% from 2015. Per product, there were increases of 3.5% for super, 2.8% for kerosene and 0.2% for diesel. Fuel production increased by 15.8%, while butane and distillate production fell by 5.8% and 1.1%, respectively.

7.FORESTRY

Cameroon holds the second largest forest in Africa. The country’s forest area is estimated at 22 million hectares, or 46.3% of the country’s territory. The mineable area is 79.6% and consists of protected areas and production forests. The government’s actions remain focused on:

• The development and renewal of the forest resource;
• Securing and enhancing wildlife resources in protected areas;
• The development of woody and non-woody forest resources.

8.HANDICRAFT

Cameroonian handicrafts are part of small and medium-sized business. It has the characteristic of being the expression of the country’s cultural richness and the mark of an exceptional know-how inherited from the past and passed down from generation to generation. For example, Cameroon has nearly 35,000 artisans in the country’s 10 regions, grouped in some forty organizations and nearly 300 groups and associations. The umbrella structure of the sector is the national body of artisans in Cameroon. Crafts are divided in Cameroon into three sectors: crafts; production craft and craft service. and this craft is divided into several types of activities, including:

• Wood carving;
• Bronze sculpture;
• ceramics work;
• leather work…

9.Tourism

Stretching more than 1,200 kilometres from north to south, Cameroon lies in the heart of the geographical regions of West, Central and Northern Africa. It has an extraordinarily contrasting terrain where alternating high and lowlands, a variety of climates, landscapes and unusual animal species.

10.TELECOMMUNICATIONS

This sector is developing in Cameroon and the main growing markets are: mobile telecommunications, business digitization and infrastructure equipment. In 2016, telecommunications revenues were $543.4 billion, an increase of 1.6% over 2015. The number of telephone subscribers was 20,657,519, an increase of 16.9%. Mobile phone subscribers increased by 17.5% and those on landlines by 7.9%.

More Projects in IMPORTANT PROJECTS Section

https://www.investincameroon.net/sectors-profile/

Investment Promotion Agency Cameroon

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