Insights on the fiscal laws and how to make them more conducive to business

In America it is said that there are two things you can count on; death and taxes. Whether you want to or not, it is a civic duty to pay taxes on earnings. In return, the government provides needed services, security, public schools, hospitals, roads and bridges to name a few. While it is acknowledged that the government’s most significant revenue stream is taxes, what is not acknowledged is where the money goes?

Doing Business sheds light on how easy or difficult it is for a local entrepreneur to open and run a small to medium-size business when complying with relevant regulations. It measures and tracks changes in regulations affecting 10 areas in the life cycle of a business: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
In a series of annual reports Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time. The data set covers 46 economies in Sub-Saharan Africa, 32 in Latin America and the Caribbean, 24 in East Asia and the Pacific, 24 in Eastern Europe and Central Asia, 18 in the Middle East and North Africa and 8 in South Asia, as well as 31 OECD high-income economies. The indicators are used to analyze economic outcomes and identify what reforms have worked, where and why.

“ACCESSING FINANCE”

When : September 25, 2012 at 7 pm
Type of Event : Dinner /Debate
Where :  Akwa Palace Hotel Douala

As the first AmCham event of this new season, your tickets as valued members are available (2 tickets per member) for CFA 70’000 (CFA 35’000 per ticket) or tables of 10 at 300 000CFA .
The tickets will be distributed to you on Monday September 17, 2012 during business hours with your invoices against a cash or check payment. For those members who need more space, please book and remit payment early enough to ensure we can accommodate you. Ticket sales begin Friday September 14, 2012 for Members only. Tickets for the general public will be released Tuesday September 18th.

This year’s all black everything gala was brilliantly laid back. Roland Abeng, Master of Ceremonies set the tone and kept it at a fever pitch commanding an energized  crowd set to make it a night to remember. Breaking from tradition of galas past, President Eddie Brown declared it an evening free of pomp and circumstance which would ultimately mark the coming out party for the new Board elect. So after a heartfelt original poem and remarks, he raised his glass and made a toast.
Cheers!

In his first appearance at AmCham, Managing Director Akin Dada addressed the members on the Euro zone crisis and its implications for Cameroon.  Before launching his presentation Mr. Dada disclaimed being an expert but encouraged questions even though he believes no single person can give a universally acceptable answer. Here’s the gist: the defining area is  the EU European union in which the euro zone is used as currency of 332 million people. Initially the euro was adopted as a way to boost Europe’s flagging productivity. The EU is made up of 27 countries who have adopted the EURO  following the signing of the  Maastricht treaty  as  a European means for greater  economic and monetary cooperation.

Thus, the one size fits all currency was born. Criteria to qualify for the euro included a budget deficit of less than 3% of GDP and a debt ratio of less than 60%. While countries scrambled to meet the criteria, today 14 of the 27 countries exceed debt to GDP by 66%. The inherent danger with rising levels of debt is the unwelcome interference by the government who in turn exposes the banks to their own debt whose relationship to financial institutions, a primary source of lending, is inextricably linked.Let’s examine the GIIPS (commonly referred to as PIGS) case study. Greece tips the scale with a structural deficit by borrowing to build infrastructure with the hopes that a ROI would appear in the short term, but tax evasion compounded the problem.
Ireland’s large real estate exposure in the first year after adopting the euro was suspect in the bubble bust and having borrowed at 24% proved to be a case of biting off more than they could chew according to Mr. Dada. Italy the 4th largest economy of the EU was overridden with public debt. Spain simply lost competitiveness backed by increases in housing and family indebtedness. Overall, public debt, low growth, bank bailouts even demographics as in the aging pensioners who rely totally on government support all contributed to the crisis.
“Skeptics about the euro insisted that its members did not constitute an optimal currency area and foresaw the drawbacks of a one size fit all monetary policy, particularly without a corresponding fiscal policy. What are the implications for Cameroon? Since Europe is the base from which come remittances back “home”, job cuts and reduced income could have an effect. Cameroon’s ample liquidity helps stave off collapse. However, business owners should ask who Is their supplier, how long will they be around and how much longer can France defend the cfa.
Reluctance to lend will spill over to euro zone therefore must reduce risk assets in order to survive.

We can thank Attorney Erik Martini for greater coordination with the Embassy. The ex-oficio board member hit the ground running with a way forward for AmCham. Membership value, increased resources and greater Embassy engagement were his top priorities. Erik’s presentation on the FCPA- foreign corrupt practices act wherein he illustrated” foreign business people being taken off the plane at US ports of entry even if those executives had no intention of setting foot on US soil.”Is still referenced and was one of many his presentations given from a legal perspective. Erik was also instrumental in introducing our members to Johnnie Carson, US Assistant Secretary of State for Africa.

Erik represented AmCham Cameroon at the South African and Tanzanian AmCham summits respectively. His unique legal perspective and embassy view provided acute and indispensible insight to our Chamber.

Best wishes.

In an address to sponsor members, friends and members of the press President of Beneficial  Insurance Group and owner of former Immeuble SOCAR, Eddie Brown welcomed those present for the groundbreaking that represented an important day for AmCham Cameroon.  The program was simple and straightforward as sponsor members looked on with pride at what their extra contribution has allowed AmCham to accomplish. This giant leap to increase organizational capacity came from a board recommendation during the strategic planning session in Kribi.

The typical election process unfolded with a recap of  eligibility requirements which include but are not limited to; one year membership in good standing, a viable US interest and being recognized as a voice in business in Cameroon. While those indicators certainly help, they are not enough to secure a board seat. New this year is the increase from8-to 12 board seats including the ex-oficio seats who have no voting rights but who serve a pertinent purpose as the Ambassador’s representatives. Thus under the stewardship of EBO director Ed Gallagher and Erik Martini, the elections proceeded.

June 8, 2010 marked our final business luncheon before adjourning for summer. It also heralds farewell to U.S. Ambassador Janet Garvey for her three years as Honorary Board President of Amcham and senior ranking U.S. official in Cameroon.

Ambassador Garvey’s first speech centered on the ensuing global financial crisis in November 2007. The second keynote address in June 2009, shed light on the role of Amcham in society with a historical overview. And the final speech summarily addressed the potential albeit missed economic opportunities for Cameroon.

As the name implies, the Agency for the Promotion of Investments is an institution of promotion and facilitation of investments. The API will play a role in the orientation of investors, be they foreign or national, in the implementation of investment projects. The API is tasked with collecting information relative to opportunities of investment in Cameroon and diffusing them to the business community. The API should therefore promote an improved image of Cameroon to attract foreign direct investment.

Mrs. Angeline Minja, General Manager of the API along with Deputy General Manager Boma Donatus presented on the objectives as well as the roles and responsibilities of this new program. The principal theme of the luncheon was the structure and the grants and incentives the API has to offer to foreign investors among which: