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BUSINESS IN
November 2020 / N° 93
CAMEROON
MAJOR PROJECTS - AGRICULTURE - ENERGY - MINING - INDUSTRY - SERVICES - FINANCE
Cashew,
Cameroon’s new
source of revenues
Covid 19 : “Making the team’s Money transfers to support
health a priority” NoSo residents
FREE - CANNOT BE SOLD
BUSINESSIN CAMEROON .COM Daily business news from Cameroon Compatible with iPads, smartphones or tablets
Yasmine Bahri-Domon,
Shame to their supporters
At last, NGOs and international media as political opponents of an “African
are acknowledging anglophone separa- power,” they rapidly get a flock of sup-
tists for what they are - terrorists, just porters who legitimize their actions
like Boko Haram or AQMI, among others. claiming they are the victims. When an
Unfortunately, this had to take the mas- uncontrolled member of the national
sacre of school kids in their classrooms. army engages in unacceptable violence,
all the country’s security forces are soiled
Like other terrorist groups, these extre- and roles are reversed. Yet who can claim
mists who fuel the Anglophone crisis in for sure that there were no mishaps or
Cameroon terrorize civilians, racketeer, collateral damages during the wars in
plunder, and sow desolation. Woe to Iraq, Libya, Syria, or elsewhere?
people who fall into their hands.
Cameroon is currently fighting armed
When jihadists do the same, the inter- separatists in the West, Boko Haram’s ji-
national community is quickly moved. hadists in the North, and within the East,
Because this extremism also affects the army has to deal with looters from
developed nations. There is a common the Central African Republic. These are
fear in such cases. just different heads of a monstrous hydra
and anyone defending them, whoever
However, when these same people pose they are, should be ashamed.
N° 93 / november 2020 3
CONTENTS
FOCUS INTERVIEW
08 • A gribusiness: Cameroon makes a decisive 13 • T homas Crabett : “Covid-19 has confirmed that
entrance in the cashew segment resilience is not an empty word in Cameroon”
09 • 1 00,000 hectares of cashew plantations
eyed to assume leadership in global cashew
production Publisher
Stratline Limited
10 • C ashew sector: A segment with over 150,000
potential jobs by 2023 Publication Director
Yasmine BAHRI-DOMON
11 • S odecoton mulls over a cashew development Contributors
project Brice R. Mbodiam, Sylvain Andzongo, Idriss Linge,
Muriel EDJO.
11 • M
rs. Hayatou, an A-player in Cameroon’s
Operator
cashew sector Médiamania Sàrl
www.mediamania.pro
12 • C ameroon aims to produce 50, 000 tons of Maquette : Jérémie FLAUX,
cashew nuts a year by 2025 Corrections : Souha TOURE
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4 N° 93 / november 2020
NEWS IN BRIEF PUBLIC MANAGEMENT P 16-19 TRANSPORTATION P 28 FINANCE P 20-23 INDUSTRY P 29 AGRIBUSINESS P 24-26 TIC & TELECOM P 30-32 ENERGY P 27 SERVICES P 33 N° 93 / november 2020 5
MONTHLY STATISTICS
CFA87 billion
19 387 tons In 2019, CFA87 billion worth of rice imported for consump-
tion was fraudulently re-exported, according to the natio-
nal accounts 2019 recently published by the National
Banana exporters in Cameroon exported 136,048 tons of Institute for Statistics (INS).
banana between January and September 2020, according
to data compiled by the Banana Exporters’ Association of The Institute reveals that during the period, the natio-
Cameroon (Assobacam). Compared with the volume of nal production was about 217,280 tons and the natio-
bananas the country exported over the first nine months nal demand was 757, 000 tons. Based on the hypothesis
of 2019, the 2020 performances are down by 19,387 tons. that household consumption habits remained the same
between 2018 and 2019, INS deduced that there was a
This drop in performance is mainly due to the decrease 332,300 tons gap between the supply and demand. For the
in the exports of Plantations du Haut Penja (PHP), lea- institute, these 332,300 tons represent the volume of rice
der of the local market. Indeed, the company’s exports fraudulently re-exported to neighboring countries and
slid by 21,033 tons during the period ( from 142,621 tons amounts to CFA87 billion.
in January-September 2019 to 121,588 tons in January-
September 2020).
35.1%
80 Cameroon raised CFA2,516.8 billion of budgetary re-
sources in the first half of 2020. Year-to-year, this repre-
sents a rise of 5.7% or CFA136.5 billion.
The Ministry of Public Procurement recently terminated
80 contracts signed, between 2018 and 2019, by state sub- According to the government, this rise was mainly due to
divisions and companies for either the supply of goods and the performance of institutions in charge of the collection
services or the construction of infrastructures, an official of internal revenues.
release indicates. According to the release, the contracts The revenue was also spurred by the external donations
were terminated because of significant delays in the deli- and loans captured by the government during the said
very or because the works were abandoned. period in the framework of the coronavirus response stra-
Over 95% of them were signed by state subdivisions in the tegy. Indeed, external donations and loans secured by
North, the East, and the West. Cameroon in the first of this year amount to CFA1,000.3
billion. This is up by 35.1% compared with the CFA740.3
billion the country mobilized in H1 2019.
Besides losing those contracts, the concerned companies
are forbidden from submitting offers for public procure-
ments for two years, according to the regulation, except for
a special waiver. An authorized source explains that such
failing companies usually circumvent such regulation by
simply changing their corporate names.
6 N° 93 / november 2020
COMPANY OF THE MONTH
Camair Co resumes operations, after 8 months of
suspension, thanks to a CFA16 bln financial assistance
from the state
On October 18, 2020, Camair Co salary arrears owed to the staff, the tance (which is an umpteenth) would
resumed its operations by only offe- premium of the aviation insurance be used by Camair Co to send one of
ring domestic flights per the Head of and the SITA reservation system, its Boeing 737-700 NGs for servicing,
State’s wish. The resumption occur- the customs duties on spare parts acquire two Dash Bombardier Q400s
red after two consecutive postpone- bought for the MA60 as well as some (better suited for short-distance
ments (the first on October 12 and costs associated with the activity flights), and lease two engines for the
the second on October 16, 2020). For resumption. second Boeing 737-700 NG.
the airline to restart activities, the
government disbursed a substantial 42 weekly flights… These planes will complement
amount, official sources indicate. This new financial assistance in- Camair Co’s fleet (ed.note: that fleet
cluded, the volume of funds released includes two currently grounded
Indeed, a letter sent on October 16, by the public treasury for Camair Co MA60s) by the end of 2020. This
2020, by the Minister of Transports over the period between July 14, 2020, period coincides with the end of the
(Jean Ernest Ngallé Bibehé, who is to October 16, 2020, exceeds CFA16 lease agreement for the only Boineg
also chairman of the board of direc- billion. Indeed, on July 14, 2020, in a 737 currently used by Camair Co
tors of Camair Co) to the managing letter sent to the Prime Minister, the for its 42 weekly flights between
director of the airline, reveals that general secretary of the Presidency Yaoundé, Douala, Garoua, and
the Ministry of Finance has once announced the disbursement of Maroua. The Boeing 737 leased for
again disbursed CFA1.050 billion to CFA15 billion for the reorganization three months with a Ukrainian crew
ensure the operations are success- of Camair Co in preparation for its was delivered in September 2020.
fully launched. privatization.
Brice R. Mbodiam
According to the letter, the said At the time, the general secretary
amount should cover part of the indicated that this financial assis-
N° 93 / november 2020 7
FOCUS Agribusiness: Cameroon makes a decisive entrance in the cashew segment In 2019, Cameroon cashed out 86% was the year Côte d’Ivoire star- ANAFOR plans to develop additional of its export revenues from the sale ted producing cashew nuts. It has hundreds of hectares in Sanguéré, of eight (8) products, the National since become the leading producer where Gic Ribaou has over 100 hec- Institute for Statistics (INS) informs. worldwide with an annual output tares of cashew plantations (started These include cocoa (and its derived of 750,000 tons and CFA500 bil- in 2002). products) as well as raw cotton. lion distributed to cashew farmers However, this year, a new cash crop throughout the period, according to Thanks to a cashew seedlings pro- could join the list of agricultural pro- Commodafrica. duction program launched by the ducts that generate export revenues Cameroon planted its first cashew Institute of Agricultural Research for the country: cashew. trees in 1975, during a reforestation for Development (IRAD), all the On October 17, 2018, the country campaign in Sanguéré, not so far actors and many others interested validated a national development from Garoua, in the North. in cashew production now have the strategy for the cashew value chain. At the time, the country was plan- opportunity to acquire plant mate- The document tries to grasp all the ning to plant the trees on over 10,000 rials. According to various sources, socio-economic and environmental hectares of land in the region and the lack of plant materials was one opportunities offered by the crop. build a cashew juice production of the obstacles to the development Since its validation, the government plant and sell cashew nuts, which are of the sector in Cameroon. Besides, has multiplied initiatives to help luxurious appetizers when roasted. many were unaware of its economic potential producers enter the global However, 45 years later, cashew trees opportunities. Now, Cameroon wants cashew market by 2023. are planted on only 650 hectares to actively invest in the sector and The initiatives also aim to revive nationwide, including 60 hectares make it a major economic driver. cashew production in the country - a developed in 2017 in the framework goal the government has been targe- of an operation carried out by the ting since 1975. National Forestry Development Brice R. Mbodiam It is worth reminding that 1975 Agency (ANAFOR). 8 N° 93 / november 2020
FOCUS 100,000 hectares of cashew plantations eyed to assume leadership in global cashew production About two years ago, Cameroon’s develop 100,000 hectares of cashew where cotton was the only cash crop. Institute of Agricultural Research plantations in the country. Let’s note that the first cashew trees for Development (IRAD) launched IRAD informs that to support the were planted in Cameroon in 1975, at a program to distribute cashew program, which is aimed at making about the same time as Côte d’Ivoire. tree seedlings in the three northern Cameroon the leader in cashew pro- However, Côte d’Ivoire is now the regions and the East. duction worldwide, the Head of State leading cashew producer worldwide For this purpose, 500,000 seedlings ordered the disbursement of CFA1.5 while Cameroon only produced are currently being produced in billion for seedling production. 108 tons of cashew nuts in 2017. A IRAD’s centers, according to reliable By promoting cashew production, sizeable portion of that production sources. The institute (which plans the government is thus paving the was realized by Gic Ribaou, a group to reach a production of 10 mil- way for the development of a second of passionate people committed to lion seedlings by 2021) intends to cash crop in the three northern re- reviving cashew production in the distribute ( for free) the seedlings to gions whose climate is better suited North. Cameroonian farmers to help them for such an agricultural product and N° 93 / november 2020 9
FOCUS
Sodecoton mulls over a cashew
development project
Cameroon’s cotton development Under its strategy, Sodecoton, which d’Ivoire and Ghana, where cashew
corporation (Sodecoton) is on its collaborates with about 250,000 processing is still low.
way to becoming one of the pillars farmers in Northern Cameroon, ini-
of the government’s national cashew tiated a study trip to Benin and Côte “We have made enough progress
development initiative. d’Ivoire, two West African countries with potential partners. We have a
where cashew does well. strategy, therefore the funds should
“Sodecoton has been considering the follow,” said an optimistic executive.
cashew nut sector for long, to diversify Thanks to the knowledge acquired Cashew farming and the context in
the revenues of farmers with whom we during the mission, and the various the Far North are both attractive for
already collaborate: producing crops expertise sought by the cotton com- investors.
such as corn, groundnut, or sorghum. pany, Cameroon could soon welcome
But, we need an alternative crop in its very first cashew farms. Sources Indeed, investors want to participate
whose downstream value chain we can within the company said Sodecoton in the reconstruction of economic
also operate,” said an executive of the plans to develop 50,000 hectares over infrastructures in this region which
cotton company. 10 years, mainly in the Far-North. has been devastated over recent
This makes a quarter of areas cur- years by the Boko Haram terrorist
“We started with soya at first but, we rently dedicated to the white gold. group. Also, cashew farming, besides
were confronted with the fact that improving farmers’ revenues and
the oil derived from the crop failed to According to reliable sources, creating jobs, contributes to refo-
position itself in the market. Also, the Sodecoton also wants to “take over restation which is much valued by
commercialization of soybean meals the value chain with maximum lenders.
faced many challenges (…) We, there- processing,” a segment that could
fore, turned to cashew,” he continued. allow the Cameroonian agribusi- BRM
ness industry to do better than Côte
10 N° 93 / november 2020FOCUS Cashew sector: A segment with over 150,000 potential jobs by 2023 Thanks to cashew production, value-chain development strategy created in the cashew nut shelling 150,000 jobs could be created in the elaborated by the government in segment, 70% of which will be for three northern regions of Cameroon collaboration with Germany, apart women. Also, 550 others could be and the East. According to experts, from the 150,000 jobs that may be created in the cashew juice produc- these regions meet the required created in the production chain, over tion sub-segment. Overall, these jobs climatic conditions to grow the cash 1,000 more could be created in the in the transformation segment will crop whose potential is largely unde- transformation chain. only be available if 150,000 hectares rexploited in Cameroon. The strategy indicates that between of cashew plantations are grown over According to the national cashew 2019 and 2023, 550 jobs could be the 2019-2023 period. Cameroon aims to produce 50, 000 tons of cashew nuts a year by 2025 The government of Cameroon is the annual conference of heads of (CICC); a group of cashew producing striving to achieve a national produc- central and decentralized services of countries committed to developing tion of 50,000 tons of cashew nuts per his department, Gabriel Mbairobe the cashew industry. Since 2019, year by 2025. According to Gabriel said Cameroon wants to position cashew nut producers in the country Mbairobe, the Minister of Agriculture itself on the international market for have benefited from various govern- and Rural Development (Minader), this cash crop as of 2023. The plan is ment incentives, one of them was this ambition is part of the implemen- to sell at least 8,000 tons of good qua- the free distribution of thousands of tation of the national strategy for the lity products beyond borders. seedlings. This year, the government promotion and development of the As a reminder, Cameroon joined has set aside a little more than CFA1 cashew nut sector. on July 10, 2019, the Consultative billion for cashew nut projects. Speaking on February 2, 2020, during International Cashew Council N° 93 / november 2020 11
FOCUS Mrs. Hayatou, an A-player in Cameroon’s cashew sector The Djamboutou district in Garoua, airlines to their business class cus- years. “The plantation was not pro- the regional capital of the North, is tomers. In 1994, during a trip to the ducing much. IRAD (the Agricultural home to Cameroon’s first cashew nut northern region of her home country, Research and Development Institute, shelling unit. This investment is the she noticed a tree bearing a fruit that ed) advised me to plant more trees. work of Gic Ribaou, an association resembled the delicious peanut- That’s how we ended up planting more founded by Mrs. Hayatou to promote like snack that she has become a than 100 additional hectares,» she cashew nuts, a crop still unknown big fan of. “I knew the fruit, not the reports. in Cameroon, but which is already tree. When I asked about the tree I Running on equity, Gic Ribaou, doing well on West African markets. saw, people told me it was the tree which she founded and manages, “Here in Cameroon, people eat the that produces the cashew nut,» she was able to produce 33 tons of cashew apple and throw away the nut recalls. cashew nuts in 2017. A production without knowing that it is the most «I later found out that the government mainly intended for export, for the important part,” said Hayatou, who had launched a cashew develop- time being. But, thanks to its shelling considers the nut as an excellent ment project that never blossomed,» unit in Djamboutou, which is strug- supplement for cotton, the only cash Hayatou said. However, the project gling to run at full capacity (1.5 tons crop grown in the three northern made it possible to plant 650 hec- per day) due to a lack of raw mate- regions of Cameroon so far. tares of cashew trees in the locality of rial, Gic Ribaou intends to start local According to her, she discovered Sanguéré, near Garoua. marketing. «We are going to design cashew nuts during her many travels Mrs. Hayatou managed to take over small bags of nuts for local consump- around the world. She said the nuts this unachieved project and secured tion,» the project owner said. were offered as appetizers by some an operation authorization for 30 12 N° 93 / november 2020
INTERVIEW Thomas Crabett “Covid-19 has confirmed that resilience is not an empty word in Cameroon” In this interview, we discuss with the managing director of the Cameroonian subsidiary of Belgian firm BIA Group, which supplies equipment for major construction projects. The executive shares with us the lessons learned from the pandemic and he believes Cameroonian companies were very resilient to the crisis it induced. Interview by Idriss Linge and Jean Christian Nselel Business in Cameroon: Covid-19 construction, transport, industry, agencies, given that the risk of conta- has affected many countries, in- and energy sectors had to halt their mination with covid-19 increases cluding Cameroon where you ope- activity. The equipment we supply with physical contact. We wanted to rate. How did you feel its impacts them is an investment requiring a restrict contact as much as possible. at BIA Group’s local subsidiary? long term vision. However, for some We followed the measures prescri- Thomas Crabett: The global health months, the future was uncertain. bed by the government, relating to crisis did not spare Cameroon. The We adopted a battery of measures, social distancing and hygiene. BIA economic situation was indeed such as remote working, vacations, Cameroon had masks made on a difficult for some time and our all to limit the number of people at large scale and shared with our staff. customers, who operate in the our main site and in our regional Wearing them is now mandatory, for N° 93 / november 2020 13
INTERVIEW
our employees and those visiting our CEO, Vincent BIA, was: “Take care BC: Do you have any recommen-
offices. We also distributed sanitizers of yourselves.” That was impressive dations for the authorities to
in all our offices and put in place a and our teams felt it here. We were improve things?
protocol to access our facilities. At shaken by this period but also came TC: From an economic perspective
our workshops which are more open, out stronger. Economically, we faced exclusively, the government took
the measures were easier to imple- some challenges, but we gained a lot many steps. For some time, the
ment even if wearing a mask is cum- in terms of human relationships. port of Douala benefited from some
bersome for our technicians, both incentives. We are importers so we
in our workshops and in the field. BC: Many experts affirm that benefitted as well. They helped us
Regardless, we didn’t hesitate. The uncertainties similar to that of the continue our operations. We found
instructions given by the headquar- pandemic could recur frequently out that our business could keep
ters were strong and clear: “Making in the future. How is your com- running normally with simplified
the teams’ health a priority.” pany preparing to tackle these procedures. And personally, I don’t
predictions? think the port or customs office had
STC: There has been a paradigm any complaint about this. Today, the
BC: Today, everyone is slowly lear- shift. We operate in various countries main question is to know how useful
ning from the Covid-19 pandemic. where stability is, I must say, uncer- these measures would be in a normal
What lessons did you learn from it tain at times. I am referring to our period. It is no secret, and credible
and how are they reflected in your collaborators in Mali or Guinea for media outlets such as yours can
activity in Cameroon? example. At BIA Group, we are a little testify to it, that the port of Douala
TC: I believe there are two main used to that. We have been active is losing shares in the regional mar-
things here. First, we are a Belgian for 120 years and we were born in ket and that is very damaging. The
company with a strong presence in Congo. However, things are different measures introduced by the govern-
Africa. I spent all my career in Africa with this health crisis. We now have ment were much appreciated by
and it was interesting to see that this action plans to handle specific crises. businesses like ours and I would like
continent was the best prepared and We have also reached out to health them to be maintained or accelera-
the one that reacted best. I think that agents to take care of our teams ted even.
is a wonderful lesson, one that sur- worldwide. We have improved the I believe this could benefit the autho-
prised all observers. Some foreigners hygiene component of our Quality rities of the Autonomous Port of
even panicked and fled Cameroon Hygiene Security and Environment Douala (PAD), and the Cameroonian
but the truth is that resilience is not policy. In short, the way we react to economy also. Trade creates wealth
an empty word in this country. It is crises has changed and the same and a fluid trade is a good thing.
a very strong state of mind. Though goes for the way we evaluate the Another point is that the ministry of
the Cameroonian business owners health conditions of our teams and finance has put on hold the auditing
sometimes stumble and fall, they at our operations. There is one last of business accounts. As a result, for
always get back up. That has greatly point. We have understood that some months we had a break from
impressed me and it proves that BIA everything could stop at any time. the many controls we had been going
made the right choice by choosing Against that, we cannot prepare in through; we were able to focus on
Cameroon as its door to Central any specific way, other than being something else. Throughout this
Africa. flexible. This means we must be able period, we paid as much taxes and
The second thing, and that is a life to grow, but also to retract when the duties as we used to previously. In
lesson that can be both general and economic situation calls for it. It is this regard, I would like to urge the
specific to humans, is about how difficult since we have to mobilize authorities to focus on the positive
fragile life, things, relationships, substantial material and human aspects of their incentives and conti-
and families can be. The covid-19 resources in our line of work. Never- nue in that direction. Furthering
has reset our values. In this regard, theless, flexibility is one of the things these simplification measures is
and I’m very happy to say it, the we are working on. in the interest of businesses and of
first message we received from our Cameroon.
14 N° 93 / november 2020INTERVIEW “We found out that our business could keep running normally with simplified procedures. And personally, I don’t think the port or customs office had any complaint about this” N° 93 / november 2020 15
PUBLIC MANAGEMENT 10,500 households received cash transfers in October 2020 in the framework of the social program “Filets Sociaux” In October 2020, money was assistance in the framework of the Successfully tested between 2013 transferred to the 6,500 households project. But the two Anglophone and 2016 in the communes of identified in six communities in regions, where a sociopolitical crisis Soulédé-Roua (Far North) and Ndop Bamenda (Northwest) and Limbé is raging (since 2016), are the main (Northwest), the project is now being (Southwest) in the framework of the beneficiaries of the urgent cash implemented all over the country. It project «Filets Sociaux» co-funded transfers. consists of three programs: a regular by the World Bank, the AFD, and the This initiative, which targets the and unconditional cash transfer state of Cameroon to fight poverty. poorest households in the country, program (XAF360,000 transferred to This was revealed by Michelin Njoh, is aimed at transferring money every beneficiary within 24 months), coordinator of the said project. (XAF180,000 to each household wit- an emergency cash transfer program Four thousand (4,000) households in hin a year) to help them tend to their (XAF180,000 within 12 months), and the remaining regions also received families’ needs (children’s school fees, High labor-intensive (HIMO) public benefitted, we learn. This means healthcare, and foods) and create work programs. 10,500 households received financial income-generating activities. 16 N° 93 / november 2020
PUBLIC MANAGEMENT IMF praises Cameroon’s transparency in the attribution of COVID-19 procurement- related contracts On October 21, 2020, when the second butions to the national solidarity fund challenged by some political figures of disbursement under the rapid credit for the fight against the pandemic, the the opposition who denounce ‘opacity’ facility (aimed at helping countries country also published the amounts in the use of the Covid-19 funds. MP deal with the coronavirus pandemic) allocated to each ministry and a 26- Jean-Miche Nintcheu (a member of was approved for Cameroon, Mitsuhiro page document detailing all the public the Social Democratic Front) even Furusawa (Deputy Managing Director procurement contracts it awarded in suspects some embezzlement. The and Acting Chair of the IMF) praised the framework of the fight against the same accusations are made by some the country’s transparency in awarding pandemic. civil society organizations, including contracts related to the pandemic to The document, signed by Alim Human Rights Watch (HRW). companies. Hayatou (the Minister of Public Health) Meanwhile, the semi-annual report ‘The authorities have reiterated their provides the purpose, amount, name that will reveal the government’s firm commitment to the effective and of the winning company, name of expenditure for the fight against transparent use of public funds and the promoter of the company, as well the coronavirus pandemic and its to ensuring that RCF financing and as the status of the execution of the economic consequences has not been resources freed up by the DSSI are awarded contract. published yet. This report will detail all efficiently spent on addressing the Also, according to an authorized the financial operations performed. pandemic crisis. In this context, steps source, teams from the Accounts According to the circular issued on taken by the authorities to publish the Chamber of the Supreme Court are July 22, 2020, setting the rules for the beneficial ownership of companies currently visiting some ministries to operation and monitoring-evaluation receiving COVID-19 procurement- audit the use of the financial resources of the solidarity fund, the report will be related contracts are important,» he allocated to them in the framework of published by the Minister of Finance commented. the fight against the pandemic. Louis Paul Motaze. Indeed, besides publishing the contri- This transparency appreciation is N° 93 / november 2020 17
PUBLIC MANAGEMENT 70% of public investment budget dedicated to the completion of old projects In 2021, 70% of the public investment will be given to special projects like «To ensure the smooth execution of the budget will be used to finalize on- the 3-year urgency plan, the 2020 selected projects, the public investment going projects to «allow Cameroon to African Nations Championship, projects maturation rules have been meet its growth and emergence goals.» the AFCON2021, the coronavirus scrupulously applied, notably the ob- This was disclosed by the Minister of response strategy, 1st generation tention of the maturation endorsement Economy Alamine Ousmane Mey du- structuring projects, and the presi- before the registration of any project in ring the October cabinet council held dential plan for the reconstruction the public investment budget,” official on November 3, 2020, in Yaoundé. of the Southwest and the Northwest sources indicate. According to the minister, priority ((PPRD-NW/SW) … Only 23.3% of companies are up-to-date with their social security contributions (CNPS) Only 7,000 (23.33%) of the 30,000 extent that only one-fourth of the while 15% of companies with 6 to 20 companies operating in Cameroon companies operating in the country employees are not up-to-date. As for are up to date with their social secu- are up to date,” the CNPS indicates. companies with 21 to 100 employees, rity contributions. This was disclosed The companies either fail to register the percentage of defaulters is 3.1% by the National Social Insurance their employees with the CNPS or while for companies with over 100 Fund (CNPS) in a recent briefing they avoid paying the social security employees, that percentage is 0.2%. note. contributions even though those To recover the contributions it was «There are about 16,000 socially insu- contributions have been deducted owed, the fund launched an exten- red persons we can’t cover because from the employees’ salaries. sive campaign in 2016. At the time it their employers own a hefty amount The CNPS explains that 81% of com- was estimating the amount of social of social contributions to the CNPS. panies with 1 to 6 employees owe security contributions it was owed at The situation has worsened to the social contributions to the CNPS, a little over XAF60 billion. 18 N° 93 / november 2020
PUBLIC MANAGEMENT Sinking fund estimates public debt at XAF10,164 bln, or 45.8% of GDP at end-Sep 2020 Cameroon’s Sinking Fund (CAA) scope of public debt has gradually domestic debt, it is estimated at informs that on September 30, expanded to include the entire public XAF3,019 billion, including XAF208 2020, the country’s public debt was sector (including the debt of public billion of over 3 months old outstan- XAF10,164 billion, representing companies and institutions) when ding debts. 45.8% of GDP. the information is available. Overall, 61.3% of Cameroon’s bila- According to the sinking fund, the In detail, the public sector’s external teral public debt is owed to China debt is up by 1.3% year-over-year but debt is estimated at XAF7,110 billion (which is its main bilateral partner) down by 0.1% quarter-over-quar- (including XAF6,681 billion for the and 28.5% to France. As for the mul- ter. Meanwhile, compared with its central government and XAF429 tilateral debt, 30.1% is owed to the December 2019 level, it is up by 5.7%. billion of direct external debt not AfDB, 30% to the World Bank, and It explains that since July 2020, the endorsed by the state). As for the 17.1% to the IMF. Forestry companies hid XAF38.5 bln from the tax administration in 2018-2019 Forestry companies operating in Specifically, 30 forestry companies companies (over 158 with at least Cameroon hid a total of XAF38.5 were identified as having declared one forestry exploitation permit) billion revenues from the tax admi- lower turnovers during the 2018-2019 as having possibly omitted paying nistration between 2018 and 2019, financial years. In 2018, the amount annual forestry taxes between 2018 according to the October 2020 report of undeclared turnover was XAF11.4 and 2019. It also estimates that the on forestry revenues published by the billion while in 2019, it was XAF16.7 volume of the unpaid taxes was Ministry of Finance. billion, making a total of XAF27.8 XAF5.2 billion in 2018 and XAF5.5 According to the report, these hid- billion over the two financial years, billion in 2019, making a total of den revenues include the difference the report explains. XAF10.7 billion of unpaid annual between the turnover they declared Also, by comparing the annual forestry tax during the two fiscal and the FOB value of their exports as forestry tax paid by the companies years. well as the annual forestry tax they and the amount stated in their finan- did not pay. cial offers, the ministry identified 75 N° 93 / november 2020 19
FINANCE Cameroon plans fiscal measures to encourage companies to get listed on the Bvmac In the framework of the 2021 finance Bvmac bond market will benefit from region were listed on the exchange. law, the Cameroonian government a 25% reduction of the corporate tax. They are namely Cameroonian com- plans to initiate numerous fiscal Companies that are reputed for panies SEMC, Socapalm, Safacam, measures aimed at encouraging issuing public initial offerings per the and Gabonese company SIAT Gabon. companies to get listed on the regio- provisions of the Ohada Uniform Act This means that many companies are nal stock market. The government relating to commercial companies still reluctant to get listed on stock will suggest the measures during the and economic interest groups, and exchanges. coming parliamentary session, which agree to list or exchange all or part of Let’s note that on the equity segment, will start on November 12, 2020. their equity or debt securities on the the market capitalization of securi- According to the draft government Bvmac listing will benefit from a 25% ties listed on the Bvmac represents text, companies that list their ordi- of corporate tax. This reduction will only 1.1% of Cameroon’s GDP while nary shares on the Central African start from the date their securities in Côte d’Ivoire and Nigeria, it Stock Exchange (Bvmac) will benefit are admitted on the stock exchange. represents 15.7% and 7.7% respec- from a 25% reduction of corporate As of July 31, 2020, the market capita- tively, according to the Absa Africa tax and a 1.5% reduction of the lization of the Douala-based Bvmac Financial Markets Index 2020. alternative minimum tax. Also, com- was XAF149.5 billion. Only four panies that issue securities on the companies operating in the CEMAC Cameroonian startup Adwa partners with Gabonese counterpart Fedha to launch fully digital bank in Central Africa On the sidelines of the 3rd edition of gion, we learn officially. they will combine their strength Douala Fintech Tour, Cameroonian «Through this new partnership, the and experience gained in Gabon startup Adwa announced the signa- Central African sub-region (with and Cameroon to boost access to ture of a partnership agreement with over 70% of the population excluded financial services on the African Fedha, a Gabonese startup. from the banking system) will be continent, we learn. According to its promoters, this able to facilitate access to financial It is also worth reminding that Adwa agreement is aimed at meeting three services for these dynamic men and is the promoter of payment solution main objectives over the next five women who are eager to contribute AdwaPay. Also, Douala Fintech Tour years. They are namely, to digitalize to the development of our continent,» is an exchange platform bringing all and monetize 10,000 companies in the two partners said in an official the digital finance players together. the Central African sub-region, bid statement. It will be held on November 5-6, 2020 in tandem for fintech solutions from As a reminder, both Adwa and on the premises of Cercle Municipal large companies and organizations Fedha are leaders in their domestic in Bonanjo, Douala. in Africa, and develop a fully digital markets and are focused on financial bank for the Central African sub-re- inclusion. Thanks to the agreement, 20 N° 93 / november 2020
FINANCE Cameroon plans to raise its bancarization rate to 80% by 2030 Cameroon intends to boost its For the time being, the country’s bancarization rate from 12.2% to 80% bancarization rate is lower com- by 2030, according to the 2020-2030 pared to the African average of national development plan. 29% (this rate is almost 100% in To achieve this, the country plans industrialized countries). Moreover, to initiate measures to substantially with the ratio of loans to economic increase the volume of bank loans actors being 15.9% of GDP (in 2018) to economic actors from 15.9% of and money supply being 23.5%, the GDP (in 2018) to at least 70% of GDP current financial system is inade- in 2030. The measures are namely quate for industrialization in the tailored towards the improvement country, the development strategy of offers from the Central Bank, informs. Indeed, in some South Asian commercial or retail banks, micro- countries, the ratio of loans to econo- finance institutions, and Islamic mic actors is 119.4% and the money banks. supply is 124%. Government and decentralized authorities still have XAF976 bln in Commercial banks despite the single treasury account reform (MINFI) In late August 2020, Cameroon’s between 2017 and 2018, it resumed already observed during the trans- central government and the decen- its steady rise in 2018. Indeed, in fer of additional municipal taxes by tralized local authorities still had 2017 it peaked at XAF1129 billion but the public treasury would extend to XAF976 billion in commercial banks, dropped to XAF935.4 billion. It then other communal resources once they according to figures published by rose again to reach 958.8 billion as of start lodging their resources in that the Ministry of Finance. This high December 31, 2019. single account. volume points to the reluctance According to the Ministry of Finance, Meanwhile, to avoid undermining of many public actors to embrace this reluctance of state entities and the banking system, which is expec- the reform instituting the Single their territorial divisions to integrate ted to lose a significant volume of Treasury Account, created to cen- the Single Treasury Account is due deposits following the adoption of tralize all the public resources for to the fear of losing control over the single account, the Cameroonian efficient management. their resources. The most rebellious government has announced a sche- While the financial envelope held ones include state-owned firms, dule for the gradual repatriation of by the central government and the public institutions, and decentra- public entities’ assets, held by com- decentralized local authorities in lized territorial authorities. For the mercial banks, to the single Treasury commercial banks decreased sharply local authorities, they fear the delays account. N° 93 / november 2020 21
FINANCE CAA estimates Sonara and Camair Co’s debt at XAF826 bln as of Sep 30, 2020 Camair Co and Sonara are the This means that the final estimate Camwater, Electricity Development most indebted public companies in of public companies’ debts on Corporation, and Sodecoton were Cameroon, according to the recent September 30, 2020, would be higher the five most indebted public com- note on public debt published by the than the current estimate given the panies. Sonara’s debt was XAF763.2 National Sinking Fund (CAA). problems they encountered lately billion, XAF554.5 billion for Camtel, The note explains that out of the and given their history of underper- XAF352.4 billion for Camwater, XAF833 billion of public companies’ formance. For instance, the Technical XAF140.4 billion for Electricity provisional debt, XAF826 billion is Commission for the Rehabilitation Development Corporation, and owed by the two companies. With of Enterprises in the Public and XAF113.1 billion for Sodecoton. XAF704 billion of provisional debt, Para-public sectors recently revealed On October 11, 2019, U.S. rating Sonara owes the majority (as it has that in 90% of the public companies, agency Moody’s published a report been doing for years now) while employment costs exceed 30% of on Cameroon’s economy. In its Camair-Co owes XAF122 billion. yearly turnovers and sometimes go report, the rating agency estimated The CAA indicates that the provi- as high as 70%. that public companies’ debts were sional estimate is not complete yet, In 2017, the Ministry of Finance weakening the government’s efforts since it is still collecting information estimated the 37 public compa- to consolidate public finances. to evaluate the real extent of public nies’ debts at XAF2,624.4 billion. companies’ and institutions’ debts. At the time, Sonara, Camtel, 22 N° 93 / november 2020
FINANCE Cameroon plans to boost financial service offers by increasing the number of banks and microfinance institutions by 2030 Cameroon plans to increase the num- the rules on the minimum guaranteed increasing the number of microfi- ber of banks and microfinance institu- banking service,» the development nance institutions. In that regard, the tions operating in its territory twofold, strategy informs. government will help them develop according to the 2020-2030 national Also, in light of the rising popula- their activities in all of the 10 regions, development strategy. «The offer of rity of Islamic finance worldwide, ensure their financial stability (boost financial services will be boosted by the the country plans to encourage the their agency networks) and streng- implementation of a program aimed at central bank (BEAC) and the banking then their supervision. transforming microfinance institutions commission (COBAC) to regulate The number of institutions operating into commercial or retail banks to in- Islamic finance to diversify the finan- in the country could rise from 500 crease the number of banks from 16 to cing offer. in 2017 to 750 in 2030, the strategy 30 by 2030. The program will also make Besides, the strategy expects to boost projects. sure all the retail banks comply with financial inclusion by developing and AFG C&EA’s local branch increases capital by XAF5 bln On October 29, 2020, the ging director of the branch, Moore AFG C&EA is part of pan-African Cameroonian branch of pan-African Stephens CA as the statutory auditor, holding Atlantic Financial Group Atlantic Financial Group Central & and Prosper Robert Nken as the founded by Ivorian businessman East Africa (AFG C&EA) announced alternate auditor. Also, the holding Koné Dossongui (photo) in 1978. It its decision to increase its capital amended its statutes in compliance has stakes in various sectors in Africa from XAF1 billion to 6 billion. with the OHADA uniform act (2014) including bank, insurance, telecom, The branch headquartered in Douala and the law N°2014/007 of April 23, and agribusiness. In Cameroon, did so by issuing 500,000 new shares 2014, on share dematerialization in AFG C&EA operates in the bank and of XAF10,000 each. It also appoin- Cameroon. finance sector via Banque Atlantique ted Ivorian Daniel Toure as mana- and Atlantique Assurances. N° 93 / november 2020 23
AGRIBUSINESS
The EU boosts daily milk processing capacity
by 2k liters in the north with a XAF6.5 bln
program
quality of beneficiaries will be impro-
ved thanks to the local production
and sales of pasteurized milk, yogurt,
table butter, fresh and ice cream, and
cheese. It will therefore provide subs-
tantial added-value to the local cattle
breeding and significantly reduce
the importation of dairy products.
Also, the program will create about
120 permanent jobs and hundreds of
indirect jobs in four regions.
The European Union delegation in
Yaoundé explains that the dairy
support program is the last compo-
nent of an Agricultural Productivity
Enhancement Program (SAPEP)
funded by the EU to the tune of
On November 5, 2020, Dr. Taïga Meiganga mini-dairies financed by XAF13.11 billion. The two other
(Minister of Fisheries and Animal the European Union to the tune of components are aimed at crop diver-
Industries) and his peers in charge XAF6.5 billion in the framework of a sification in cotton production areas
of Agriculture and Economy inaugu- dairy sector development program. and reviving the cocoa-coffee sector.
rated a mini dairy plant in Maroua, According to the European Union, The launch of those mini diary plants
northern Cameroon. the program will boost milk proces- marks the successful completion of
This event marked the launch of sing capacity by 2,000 liters daily in the SAPEP program.
Maroua, Garoua, Ngaoundéré, and the country. Also, the nutritional
Ex-MP Mohamadou Gassimou becomes
Director-General of the National Cereal Board
Mohamadou Gassimou was recently of the republic. The same day, the in the three northern regions where
appointed Director-General of president signed a second decree the climate is harsh and cereals are
Cameroon’s National Cereal Board. appointing Nana Djibrilla as Deputy the staple foods.
The official who previously served at Director-General of the cereal board. The board buys cereals in production
the Port Authority of Douala and has Mohamadou Gassimou replaces areas and sells them at affordable
also been an MP for the ruling party Gilbert Gourlemond, who spent over prices when there is a shortage or
was appointed by a decree signed on 20 years at the board which is a key during hunger seasons.
November 5, 2020, by the President institution in the fight against hunger
24 N° 93 / november 2020AGRIBUSINESS Felling tax: Cameroon recorded a revenue shortfall of XAF9.9 bln in 2018-2019 In Cameroon, 68 forest operators shortfall caused by those operators FOB value of the logs felled. But, probably do not pay felling taxes and to be XAF9.9 billion between 2018 in June 2020, local wood exporters’ at least 29 of them do not even have and 2019. association GFBC suggested the tax identification numbers, accor- The tax is either paid by the client or government should reduce the felling ding to PSRF, the national program withheld at the source (by the PSRF tax to the level it was in 2018 (2.5% set up by the Ministry of Finance to or by the large companies division of of the FOB value) because of the secure forest revenues. the general tax directorate) for logs negative impacts of the coronavirus Based on that assumption, the purchased from third parties. Since pandemic in the sector. program estimates the revenue 2019, the rate of the tax is 4% of the Banana exports rose by 581 tons YoY in Oct 2020 Cameroon exported 16,534 tons of Development Corporation (CDC), 14,650 tons of banana during the banana in October 2020, according the state-owned agribusiness which reference period, down by 45 tons to data compiled by the Cameroon resumed operations in June 2020 year-over-year. Banana Exporters Association after about two years of cessation The banana exports of Boh (Assobacam). These exports were (it stopped operations in September Plantations, the minions in that mar- up by 581 tons compared with the 2018). In October 2020, CDC expor- ket, dropped by 155 tons, going from 15,953 tons the country exported ted 781 tons of banana, against 1,312 1,258 tons in October 2019 to 1,103 during the same period in 2019. tons a month earlier. tons a year later. The rise is notably due to the Plantations du Haut Penja (PHP), activity resumption of Cameroon leader of the local market, exported N° 93 / november 2020 25
Safacam’s caoutchouc sales dropped by 746 tons YoY in H1-2020 due to the coronavirus pandemic BVMAC-listed company Société to the coronavirus pandemic still af- platform in Cameroon). africaine et forestière agricole du fecting the world. Indeed, apart from Safacam explains that the drop in Cameroun (Safacam) annunced the the confinement that affected the its caoutchouc exports has had no sales of 2,502 tons of caoutchouc in demand for commodities worldwide, significant impact on its financial H1-2020. Year-over-year, the perfor- the confirmation of the first case in performances: high palm oil sales mance was down by 746 tons compa- Cameroon in March 2020 forced the namely. During the reference period, red with the 3,248 tons of caoutchouc implementation of restrictive mea- Safacam’s palm oil sales rose by 2,641 the company sold in H1-2019. sures that caused loading problems tons, from 9,787 tons in H1-2019 to The company’s drop in sales was due at the port of Douala (the main port 12,428 tons in H1-2020. GIZ seeks farm equipment supplier for a cocoa development project The German Agency for International Cooperation (GIZ) recently issued a call for tenders to select a company that will supply farm equipment in the framework of a cocoa develop- ment project (Projet d’appui au déve- loppement du cacao-PAD-cacao). The interested candidates are expec- ted to submit their applications at GIZ headquarters in Yaoundé, by November 17, 2020, while the winner will be announced on November 30, 2020. Born from the restructuration of the Ministry of Agriculture and Rural Development’s projects and pro- grams in early 2020, PAD-cacao is one of the government initiatives funded by the public investment budget, the cocoa-coffee development fund (Fodecc), and development partners. 26 N° 93 / november 2020
ENERGY ENERGY Cameroon intends to increase installed energy production capacity to 5000MW by 2030 Cameroon plans to increase its lities through the implementation of ment’s development strategy called installed power generation capacity ongoing dam construction projects. «Vision 2035,» Cameroon’s installed to 5,000MW by 2030 to meet local Priority will be given to projects capacity increased from 933 MW to energy demand and even export the being implemented via public-pri- 1,650 MW. Compared to the 3,000 excess production to neighboring vate partnerships or by independent MW target for 2020, this is down by countries. This was revealed in the power producers. The said projects 1,350 MW. In urban areas, the electri- country’s 2020-2030 national deve- include the Upstream Nachtigal city access rate reached 90%, against lopment strategy. Hydroelectric Project (420 MW), the 20% for rural areas. Nonetheless, In that regard, the country will carry Bini A Warak (75 MW) Menchum (72 there are recurrent outages that on its energy mix development policy MW), Song Dong (270 MW), Grand- deprive customers of energy. The ou- by boosting hydroelectric, solar, ther- Eweng (1,800 MW), Katsina-Ala tages are caused by the obsolescence mal and biomass energy production (485 MW), Makai (350 MW), Mouila- of energy transport and distribution capacities. Mogue (420 MW), Kikot (450 MW), networks due to which 40% of the As far as hydroelectric energy is Njock (200 MW), Ngoila (84 MW) and production is lost. concerned, the government will Cholet (600 MW) projects. continue to develop production faci- During the first phase of the govern- N° 93 / november 2020 27
ENERGY INFRASTRUCTURES Camship-CLGG launches its 1st Kribi-Douala maritime cabotage line On November 3, 2020, the first Touenguene, Assistant General Director-General of Camship-CLGG. container ship of the Cameroonian Manager of Camship-CLGG. In addition to helping avoid the company Camship-CLGG berthed According to the operations sche- transportation of goods via the off the coasts of Mboro, home to the dule, every Tuesday, a ship will road network, cabotage (which has deep seaport of Kribi, in southern depart from the container terminal been highly expected since the start Cameroon. According to official of the deep seaport of Kribi. Another of operations at the deep seaport sources, the 600 TEU ship was thus ship will depart every Saturday from of Kribi in early 2018) allows large performing the inaugural trip of the Port of Douala, which is currently vessels that are unable to access the the weekly Kribi-Douala cabotage the main gateway for goods entering port of Douala (because of the low line recently launched by the local the country. draught of the inland waterway) to company. Camship-CLGG is a merger between unload goods in Kribi. These goods «Cabotage is the transport of goods Camship (Cameroon Shipping Lines will then be transported to Douala or passengers between two ports in - the state-owned shipping company through the cabotage service. the same region in a given country. that was privatized in 1997) and Port authorities intend to extend Camship-CLGG chose to launch a Consignation et logistique du Golfe the service to the Port of Limbé, in cabotage service for containerized de Guinée (CLGG). the Southwest. To this end, Patrice goods between the ports of Kribi and «Cameroon Shipping Lines chose Melom, Managing Director of the Douala, at the constant request of the trade name CLGG for port trades Port Authority of Kribi (PAK), and his our importing and exporting clients, during the economic crisis that lasted counterpart Cyrus Ngo’o of the Port and even major shipping lines. Road until 2007. Camship-CLGG is now Authority of Douala (PAD) reached a transport was no longer sufficient first the trade name chosen to mark the joint decision on 24 August 2020. This because of volume issues (we could not return of the state-owned shipping line decision was aimed at reorganizing transport many containers per trip) in the port industry. By reviving the the project team “whose objective is and secondly because of the security company, we are returning to our core to coordinate and optimize the actions (roads have become less secure due business within the maritime trans- carried out for the implementation of to the rising number of vehicles and port industry. We are also launching a a maritime cabotage service between trucks). There is also the issue of service that was inexistent: cabotage the ports of Kribi, Douala, and Limbé,” costs, which are not always affordable of containerized goods between the the official announcement indicated. when it comes to road transporta- ports of Kribi-Mboro and Douala- tion,” explains Angélique Béatrice Bonabéri,» says Georges Njoya, the 28 N° 93 / november 2020
INDUSTRY Government announces strategic merger between Sodecoton and Cicam to create an industrial cotton-textile pole by 2030 In the framework of its 2020-2030 cotton-textile industry. Grand Corps of the State (the military, national development strategy, In that regard, the national cotton police, civilians, etc..) with clothing Cameroon announces that there production will be raised to 600,000 that uses at least 60% of the local will be a strategic merger between tons/yearly by 2025. The strategy cotton. Société de développement du also plans to increase the volume of Also, the government will explore the Coton (Sodecoton) and Cotonnière cotton fiber transformed to 50% of the potential for the revival of tanneries Industrielle du Cameroun (Cicam). production by 2030, develop clothing and leather products manufacturing According to the development stra- (sports notably) manufacturing industries. tegy, this merger will create an inte- industry able to meet about 50% of grated industrial pole in the country’s the national demand, and supply the SME promotion agency APME supports a XAF5.2 bln project in the metal sheet production sector Groupe Sylvano SARL recently signed will benefit from various tax-customs, scrupulously respect the about XAF5.2 an accompanying agreement with the administrative, and financial facilities billion investment plan agreed upon, SME promotion agency APME for the through the APME’s single window for accept periodic inspections and extension of its sheet metal production investment incentives. publish annual activity reports, APME’s plant. But, to access all these incentives, General Director explained during the Thanks to this agreement, the project Groupe Sylvano SARL will have to agreement-signing ceremony. Cameroon plans to build its 2nd oil refinery in Kribi Cameroon plans to build another large refinery in Kribi.» Thanks to the built to launch Cameroon’s LNG pro- refinery. Indeed, SONARA (which was about 5 million tons/year refinery, duction before the construction of an the only refinery in the country) was the government plans to at least sup- LNG production plant, not far from the victim of a fire outbreak on May ply the CEMAC region. The financing the Kribi deepsea port. 31, 2019. Therefore, the country plans model chosen for the project is a Hilli Episeyo, which is the result of to create a duopoly in the hydrocar- public-private partnership. a XAF700 billion investment from bon sector. Kribi was chosen to host the refinery Golar LNG, also produces 30,000 tons For that purpose, in its 2020-2030 because of the presence of the floa- of domestic gas every year and 5,000 national development strategy, the ting LNG plant Hilli Episeyo. With a barrels of condensate daily. government introduced a «viable pro- yearly production estimated at 1.2 ject for the construction of a new and million tons, the floating unit was N° 93 / november 2020 29
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