Cameroon: Investing

FDI in Figures

Cameroon receives very little foreign direct investments. Between 2007 and 2008, FDI recorded a net flow of approximately 1.2% of the GDP for each year. The extraction industries remain the most targeted sector, oil drilling in particular. France is the country's primary investor.

From 141 countries, Cameroon ranked 101^st, in terms of FDI attractiveness. Cameroon has to improve and to simplify its administrative procedures in order to boost the creation of  new companies. As a fact, the country possesses several natural resources (oil, forestry and fishing) on which it can rely.

The business climate in the country deteriorated in 2008-2009. According to the classification of  the World Bank's  "Doing Business 2009", which rates the countries based on the ease of doing business indicator, Cameroon ranks164^th, among 181 economies.

Cameroon needs to attract foreign investors in order to finance its future projects of developing infrastructures and notably, the exploitation of gas.  Large French companies are well-placed in these developing sectors.  It is important to mention that Cameroon has attracted China's attention, since China has projects of investing in the African continent and notably in Cameroon.

Why You Should Choose to Invest in Cameroon

Strong Points

The country's strong points are:
- A cheap workforce; and
- Abundant natural resources;
The 2010-2011 economic plan contains measures likely to attract direct foreign investments, particularly in high capital areas (mining, food industry, energy and construction). In particulrar, the Cameroonian government is working on the establishment of a one-stop shop for the creation of companies.

Weak Points

The country's main weaknesses are:
- The cost and length of time required to create a company: 37 days for a cost of nearly 150% of the per capita income;
- Tax liability;
- Corruption; and
- The lack of infrastructure.

Government Measures to Motivate or Restrict FDI

The Cameroonian government has targeted certain sectors as priority sectors for investment: transport, food industry, tourism and rural development. In order to attract more investors, significant programs are being implemented by the public authorities, with the support of financial backers, in order to improve judicial decisions, increase energy supplies, reinforce economic information, simplify procedures, support companies, and ensure the protection of the economic area against illegal threats. Cameroon also has free trade zones in which all export companies can set themselves up, that is to say, companies that produce goods and provide services meant exclusively for export. There are a many advantages for companies: exemption from all licenses, authorization or quota limitation for both export and import, possibility of being able to open a foreign currency account, no restrictions on sales operations, purchase of foreign currency, right to transfer profits abroad (however 25% has to be re-invested in Cameroon), tax and duty exemption for a period of 10 years from the beginning of operations and taxation at a general rate of 15% on profits from the 11th year.

Procedures Relative to Foreign Investment

Freedom of Establishment

In Cameroon, there is freedom of starting a trade.

Acquisition of Holdings

Foreign nationals can be 100% owners of a company.

Obligation to Declare

The World Association of Investment Promotion Agencies in the country gives information on the authorizations necessary for implantation.

Nevertheless, the candidate has to satisfy, according to the circumstances, the following conditions :
- to be registered either with the Registry of Commerce or with the Communal Repertory ;
- to have made a declaration of existence ;
- to possess a professional trader's card ;
- to dispose of property and material installations when they are necessary ;
- to respect other professional obligations, especially in tax matters ;
- to obtain a prior authorization (for foreign nationals)

Competent Organization For the Declaration

Cameroon Info
Invest in the Franc Zone
Government Portal

Requests For Specific Authorizations

For more information, click on Invest in the Franc Zone.

Investment Opportunities

Investment Aid Agency

Invest in the Franc Zone

Tenders, Projects and Public Procurement

ARMP, Public Oversight Body - Cameroon
AUF - Agence Universitaire de la Francophonie, Tenders, in French
Tenders Info, Tenders in Cameroon
Globaltenders, Tenders & Projects from Cameroon
DgMarket, Tenders Worldwide

Other Useful Resources

The International Finance Corporation (IFC) a group of the World Bank, finances projects in a variety of sectors; agro-industries, tourism.
La Caisse Commune d'Epargne et d'Investissement (CCEI) (The Bank for Loans and Investments)
The Cameroon Banking Corporation (CBC)

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