NEWSLETTER APRIL 22 – MAY 05, 2013
Douala receives American entrepreneurs
The exchange with the business community in the economic capital aimed at rebooting business ties between both countries.
A delegation of 17 American entrepreneurs and officials of the State of Pennsylvania were in Douala for a two-day business and entrepreneurial trade mission. Made up of heads and representatives of the African and Caribbean Business Council (ACBC), Pennsylvania Department of Community and Economic Development, alongside the USA-Cameroon Chamber of Commerce, the mission’s overall objective was to reboot already existing as well as create new socio-economic ties in the cooperation between Cameroon and the United States.
Their first stop was at the Douala City Council on Thursday April 25, where they communed with the council officials. The relevance of this encounter is situated in the Twinning Agreement that exists between the city of Douala (Cameroon) and Philadelphia (USA), masterminded by the then Ambassador of Cameroon to the USA, His Excellency Paul Pondi and the then Mayor of Philadelphia, Wilson Goode on November 12, 1985. The Twinship Act proper was signed in September 1986 in Philadelphia with the then Government Delegate to the Douala City Council, Christian Tobie Kuoh and the then Minister of Town Planning and Housing, Abdoulaye Babale representing Cameroon; while Mayor Wilson Goode signed on behalf of the city of Philadelphia. Thus began a history of multisectorial collaboration in sectors like public administration, education, industrial and economic relations, and socio-cultural exchanges. Though, activities drastically dropped in 2004, which met with the exchange of letters of reminder between both cities. Addressing the august visitors, the Government Delegate, Fritz Ntonè Ntonè, on behalf of his community, expressed the desire of re-launching activities.
In return, the head of the American Delegation, Alain Mortha and the President of ACBC, Azuka Anyiam, were unanimous in their declarations that their presence marked a sign of long lasting relationship and business ties. This was concretised the following day, April 26, at the Chamber of Commerce, Industries, Mines and Craft where over 300 business contacts were made with home-based entrepreneurs, during a working session. The exchange featured varying services in the domains of agriculture, mining, healthcare, education, law, banking and finance, entrepreneurship, technologies, amongst others.
Azuka Anyiam explained to CT that about seven MOUs were expected from both government and private sectors. He equally announced the team’s descent to Limbe in the South West Region for a similar exercise, though with a higher proportion. This includes the inspection of an ongoing low cost housing project, in view of financing a similar programme in Douala, as a major fallout of this memorable encounter.
Source: Cameroon Tribune
Wide-range legal incentives available for enhancing private investment
The move is to attract productive investment for a sustainable and shared economic growth.
Cameroonians or foreign natural or legal persons, resident or not in Cameroon, conducting business therein or having shares in Cameroonian companies will hence have a wide-range of incentives through which they can develop their businesses for a sustainable and shared economic growth in the country. The private investment incentives are contained in an April 18, 2013 law deliberated by the National Assembly and promulgated by the Head of State. The law improves the November 8, 1990 ordinance and its subsequent amendments which hitherto guided investment in the country and which has been considered insufficient given the development vision of the State wherein the private sector is a key player.
Tax, Customs Incentives
During the establishment and operation phases, investors shall be exempted from stamp duty on establishment or capital increase, ease of immovable property used exclusively for professional purposes, transfer taxes on the acquisition of immovable property and stamp duty on contracts for the supply of equipment and construction of buildings. They will equally have full deduction of technical assistance fees in proportion to the amount of investment made, exemption from business license tax as well as immediate removal of equipment and materials related to the investment programme.
During the operation phase, which may not exceed 10 years, the investor may also benefit reduction or exemption of payment of some taxes, duties and fees. These include minimum fee, corporate tax, tax on profit, stamp duty on loans, borrowings, overdrafts and guarantees, among others.
Financial, Administrative Incentives
An investor who respects the exchange rate regime and the tax legislation shall enjoy the right to open in Cameroon and abroad local and foreign currency accounts and carry out transactions therein. He also has the right to cash and freely keep abroad funds acquired or borrowed abroad and directly pay abroad non-resident suppliers of goods and services.
Obligations
It’s usually said that where there are rights, there are also obligations. And for an investor to enjoy the aforementioned and other benefits provided for in the law, he must among others employ during the operation phase and according to the size of the enterprise and sector, at least a Cameroonian by tranche ranging between FCFA 5 million and FCFA 25 million of planned investment. He must also have an annual export of 10 per cent to 25 per cent, net of taxes, use local natural resources of 10 to 25 per cent of the value of inputs as well as contribute 10 per cent to 30 per cent to value added of turnover.
Source: Cameroon Tribune
Cameroon's exports to the U.S. fell by 2 billion XAF in 2012
According to Dooh Collins, the regional representative of the Chamber of Commerce for the Littoral region, speaking during a meeting with U.S. traders visiting Cameroon, Cameroon exports to the United States fell by 2 billion XAF in 2012, moving from 56 billion XAF in 2010 to 54 billion XAF last year.
At the same time, there is a rise in imports of U.S. products in Cameroon. They moved up from 145 billion XAF in 2010 to 150 billion XAF in 2012, hereby an increase by 5 billion.
Source: translated from the article titled « Les exportations du Cameroun vers les Etats Unis chutent de 2 milliards de FCFA en 2012 » , Investir au Cameroun
A budget of 21 billion XAF francs to boost the microfinance sector
The national microfinance strategy the Cameroonian government adopted on April 30, 2013 in Yaoundé will cost 21 billion XAF. According to officials of the Ministry of Finance who wish to then refine the major role the microfinance sector plays in Cameroon, funds required for the implementation of this national strategy will be used to train developers and employees of microfinance institutions, the control and supervision of the financial institutions, the automation of payment methods used in these organisations.
According to the Ministry of Finance, 500 microfinance institutions are operating in Cameroon. They employ about 15,000 people, have the trust of 1.5 million customers, against 1 million for conventional banks. Their contribution to the financing of the economy is, according to the Finance Minister, Alamine Ousmane Mey, about 15% of all loans granted by the Cameroonian financial sector.
This sector is so dynamic that as at December 31, 2011, it claimed 356 billion XAF of deposits, while lending rose from 170 billion XAF in 2009 to 231 billion XAF in 2011.
Source: translated from the article titled « Un budget de 21 milliards de FCFA pour dynamiser le secteur de la microfinance», Investir au Cameroun
Markets as at May 5, 2013
Against XAF (Indicative only)
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XAF |
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USD |
501.36 |
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EUR |
657.48 |
Source: Bloomberg
