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BUSINESS IN
MAJOR PROJECTS
AGRICULTURE
CAMEROON
ENERGY
MINING
October 2018 / N° 68
INDUSTRY
SERVICES
FINANCE
African expansion
of Cameroonian companies
Mirabell Mayack: Camair Co:
“A dream come true“ The comeback
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3
Yasmine Bahri-Domon
It is time for women to take
a seat at the Cameroonian
political table
Nine candidates running for the Cameroonian presidential
elections and only men… So unfortunate! Truly, with women
running for the position, Cameroon’s political environmental
would surely be more peaceful and fair-play.
Indeed, with women involved, political battles would go beyond
a mere challenge to see who pees the farthest, with futile
boasting, and in the worst cases, incitation to violence and even
murders.
With women engaged in politics, half of the country’s voters’
population, the women, would have the power to change things
and defend another conception of dialogue and democracy.
This would also be a good way to gradually teach men to engage
less into petty brawls.
Taking Rwanda as example, it is currently considered as a
true economic model; a feat often attributed to one man only.
However, what most people are not aware of is that Rwanda is a
nation mostly managed by women. They constitute more than
60% of the country’s parliament, half of the government itself
and 40% of the high administration. Coïncidence or?
My dear Cameroonian sisters, our country needs you now more
than ever; it needs your courage, your sensibility, your finesse,
your sense of dialogue so get more engaged in the political
debate, speak up, take action and show all these men the path
toward a more peaceful and constructive democracy.
N° 68 / October 2018 BUSINESS IN CAMEROON
4
CONTENTS
FOCUS INTERVIEW
10 • M
irabell Mayack : “Cameroon has a lot to offer
06 • C ameroonian firms set to conquer Africa to investors, in terms of opportunities and
projects”
07 • E xpress Union expands money transfer service
to Central and West Africa
07 • E mergence of La Régionale d’Epargne et de BUSINESS IN CAMEROON
Crédit in Gabon Publisher
Stratline Limited
08 • T he Quifeurou hardware chain builds Chad and
Central African Republic Publication Director
Yasmine BAHRI-DOMON
08 • C osmetic manufacturer Biopharma to open a Contributors
branch in Côte d’Ivoire Brice R. MBODIAM, Sylvain ANDZONGO, Idriss LINGE.
08 • C ameroonian Elegance Pressing on the path to Operator
Médiamania Sàrl
conquer the Gabonese market www.mediamania.pro
Design : Jérémie FLAUX, Web : Christian ZANARDI,
09 • O
il Company Tradex does well in Chad, Translation : Schadrac AKINOCHO
Equatorial Guinea and the Central African Advertisement
Republic regiepub@investiraucameroun.com
In Cameroon
09 • A friland First Bank present in 10 African Albert MASSIMB, almassimb@yahoo.fr
Tel : 00 237 694 66 94 59
countries, China and France also
Printing
Rotimpres, Aiguaviva, Espagne
LEADER OF THE MONTH Office - Distribution Cameroon
Albert MASSIMB, almassimb@yahoo.fr
34 • J oseph Kadji Defosso: Tel : 00 237 694 66 94 59
Tribute to a bold and
Free – cannot be sold
forward-thinking
entrepreneur www.businessincameroon.com - info@businessincameroon.com
BUSINESS IN CAMEROON N° 68 / October 2018
5 NEWS IN BRIEF PUBLIC MANAGEMENT P 16-19 TRANSPORTATION P 27-28 FINANCE P 20-23 INDUSTRY P 29-30 AGRIBUSINESS P 24-25 MINING P 31 ENERGY P 26 ITC & TELECOM P 32-33 N° 68 / October 2018 BUSINESS IN CAMEROON
6 FOCUS
Cameroonian firms set
to conquer Africa
Finance, petrochemical industry, services, trade… Entrepreneurship spreads to all economic sectors in Cameroon.
Cameroon is a net importer of goods Cameroon, across the Central als) and finance, especially under the
with an outward-looking economy. African Economic and Monetary banking and microfinance segment.
However, while some local entrepre- Community (CEMAC) preferably, They are the proof of a rising drive
neurs struggle against competition then in West Africa, in Ivory Coast towards entrepreneurship in
with better-structured and wealthier notably. Cameroon. Unfortunately, very few
multinationals which dominate Most of these successful local busi- turn towards the Nigerian market
whole sectors of the economy, via nesses operate in sectors such as the which offers many opportunities.
their subsidiaries, others are thriving. petrochemical industry (distribution Here, we look at some Cameroonian
In addition to withstanding foreign of finished petroleum products), businesses that are faring well out-
competition, these local firms services (cleaning services), trade side the country.
even succeed in expanding outside (distribution of construction materi- Brice R. Mbodiam
BUSINESS IN CAMEROON N° 68 / October 2018
FOCUS 7 Express Union expands money transfer service to Central and West Africa Expression Union is present in all CEMAC States except Equatorial Guinea. With more than 750 outlets spread 2015, acquiring a 45% stake in Qash money transfer. across the country, Express Union Services. According to reliable sourc- Thanks to its extensive network in Finances SA has been leading es, the transaction helped the firm Cameroon, Express Union became Cameroon’s local money transfer enter markets like Benin, Burkina a point of contact and cash deposit market (Mobile money service Faso, Guinea, Togo, Mali and Niger. for Société Générale Cameroun, a excluded) for years now. The firm’s In all markets where it operates, be it bill payment point for the power footprint however extends beyond Central or West Africa (the company company Eneo; and a social benefits Cameroon’s borders, as it is very ac- actually eyes the Great Lakes region payment point through a partnership tive both in Central and West Africa. now that it has set foot in Rwanda) with the national social security fund In the first region, it operates in all Express Union is doing well, chal- (Cnps). Diversifying this wat helped CEMAC countries except Equatorial lenging international money transfer the company thrive amid a rude Guinea. giants such as Western Union and competition with mobile operators In West Africa, after suspending MoneyGram, especially since it part- that operate in Cameroon’s money its activities in Côte d’Ivoire due nered with other operators including transfer sector which was initially to the 2010 election crisis, Express the British WorldRemitt which is Express Union’s main activity. Union returned to the country in July seen as the global leader in digital Emergence of La Régionale d’Epargne et de Crédit in Gabon “La Régionale d’épargne et de credit”, There, the firm has positioned itself experience in Cameroon’s financial a Cameroon-based microfinance as a sustainable business in savings and monetary system, “La Régionale” institution, was officially opened July collection, bancarization, project thus contributes to a greater financial 8, 2016, in the presence of its CEO financing through loans, money trans- inclusion in Gabon, a country where Charles Rollin Ombang Ekath, its first fer and electronic banking. the bancarization rate is estimated at branch in Libreville, Gabon’s capital. Leveraging its more than 25 years of only 20%. N° 68 / October 2018 BUSINESS IN CAMEROON
8 FOCUS
The Quifeurou Cameroonian
hardware chain Elegance Pressing
builds Chad and on the path to
Central African conquer the
Republic Gabonese market
Created in 1983 with a first office opened in Bafoussam,
the regional capital of West Cameroon, Quifeurou
(Quincaillerie du Feu Rouge) is a major building materials
firm in the country. According to its owner, Emmanuel
Peughoui, the firm operates 56 outlets over 35 cities in
Cameroon, the Central African Republic and Chad.
Tired of importing cement, the Cameroonian firm entered Elegance Pressing, a dry-cleaning company which owns
into a partnership with the Turkish Eren Holding and numerous branches in the main districts of Yaoundé and
launched the Medcem Cameroon cement plant in 2016, Douala, opened its first branch in the Gabonese capital
thus becoming the first Cameroonian economic operator early this year, official sources reported.
to invest in local cement production. The firm’s decision to expand to Gabon is attributed to a
Valued at CFA20.3 billion, the facility has a production rising competition in Cameroon where many similar busi-
capacity of 600,000 tons of cement per year which can be nesses are popping up. Though the newcomers cannot
extended to 1 million tons. Besides Cameroon, Quifeurou boast of the experience and service quality of Elegance
sells its Medcem cement in Chad and the Central African Pressing, the company which led this market for years
Republic. had its shares dwindled following their arrival.
Cosmetic manufacturer Biopharma
to open a branch in Côte d’Ivoire
Biopharma Laboratories, a In the mid-term, the company also Started with an initial investment
Cameroonian company that controls plans offices in Nigeria, the conti- of about CFA30 billion, the firm
about 20% of the country’s cosmetics nent’s largest economy, and in the now employs about 500 people and
market, will soon open a subsidiary Republic of Congo. In addition, it dominates Cameroon’s cosmetics
in Côte d’Ivoire, in order to broaden seeks opportunities in DR Congo, industry, which is officially valued at
business in West Africa, sources at Angola and some Southern African about CFA150 billion.
the firm revealed. countries.
BUSINESS IN CAMEROON N° 68 / October 2018
FOCUS 9 Oil Company Tradex does well in Chad, Equatorial Guinea and the Central African Republic Subsidiary of Cameroon’s national oil and gas company (SNH), Tradex spe- cializes in the trading, bunkering and distribution of finished petroleum products. It is present in three other countries namely the Central African Republic, Chad and Equatorial Guinea. The Cameroonian firm significantly contributed to the growth of Chadian economy, especially before the construction of the Jermaya refinery. Tradex now operates several petrol stations and storage facilities for oil products, and plans to build a domestic gas filling center in the country. In the Central African Republic, Tradex owns 20 petrol stations and in Equatorial Guinea, under a con- with oil products at the port”. From even succeeded in rivalling with tract signed with Luba Oil Terminal its Equatorial Guinean subsidiary, French giant Total. Recently, however, Equatorial Guinea (LOTEG). Through Tradex plans, soon, to supply “bun- the company’s activities have slumped this partnership, “the Cameroonian kers, fishing trawlers and other vessels due to political unrest in the country. company stores its products in deploying in the Gulf of Guinea”, the On November 3, 2015, the oil compa- LOTEG’s facilities at the Luba Free company announced. ny had officially launched activities Port and exclusively supplies buildings Afriland First Bank present in 10 African countries, China and France also Leader of Cameroon’s banking mar- The Cameroonian lender headed Afriland First Bank which was found- ket, ahead of multinationals such as by Afriland First Group, a holding ed by Cameroonian billionaire Paul Société Générale, or BICEC, the local company based in Switzerland, has Kammogne Fokam is even present in subsidiary of BPCE group, which is subsidiaries in Côte d’Ivoire, Zambia, France and China. being transferred to the Moroccan Liberia, Equatorial Guinea, Guinea Just like in Cameroon, it dominates group Banque centrale populaire Conakry, Southern Sudan, Benin, the market in Equatorial Guinea, via (BCP), Afriland First Bank is firstly a Democratic Republic of Congo and its subsidiary, CCEI Bank. pan-African banking group. Sao Tome and Principe. N° 68 / October 2018 BUSINESS IN CAMEROON
10 INTERVIEW
Mirabell Mayack :
“Cameroon has
a lot to offer to
investors, in terms
of opportunities and
projects”
Here, the founder of London-based
consulting firm “Le Petit Event” tells us how
she perceives business environment in Africa
and in Cameroon where she plans to open a
subsidiary.
BUSINESS IN CAMEROON N° 68 / October 2018INTERVIEW 11
We have a strong team and collab-
orators for all online enquiries and
jobs. My role is the management of
the company, acquisitions of new
clients and public relations. This can
be client management , relations
management and I personally have
to attend a lot of conferences and
meetings worldwide.
Meanwhile, I also overlook all
activities and concepts that we are
planning and realizing for our clients
including our own concepts.
BIC : Why did you decide to start
this business?
MM : I owned a commercial property
and it was used by my company
for another business activity. That
commercial property was used in the
daytime only and was closed from
6pm. So, one day I decided to try a
pop-up restaurant in the premises
after 6pm.
The idea at first was to maximise the
profits and use of the commercial
property.
As I had an event background and
am naturally a people’s person I
used my skills and my passion to
create that pop-up restaurant. We
had a few of these at the property
as they were very successful and I
decided to run a reception called
“African Night - a taste of Cameroon”.
This was attended by many British
guests looking forward to discover
Cameroon. The event was attended
by the High Commissioner, other
diplomats, business men and women
and Cameroon diaspora to support
the efforts to promote Cameroun in a
very positive way.
“My father was a very proud Cameroonian and he took us, his wife and children, back to Cameroon. He has
always instilled in us to be proud of our African and of our Cameroonian heritage in particular” Guests were invited to a culinary
travel with gourmet Cameroon food
where all their senses were charmed,
accompanied by Cameroon Jazz
Business in Cameroon : In 2015, team has grown to 8 people that music and art. The guests enjoyed
you opened, in London, Le Petit work for Le petit Event. amazing conversations and discov-
Event, a firm that is very active in Our day-to-day is consultations with ered this beautiful country without
the segments of public relations, our clients on how to communicate the hassle of traveling.
communication and marketing and identifying their needs and From there, I acquired many African
between Africa and Europe. coming up with a strategy, enquiries, embassies as clients and commer-
Exactly, what is your business networking and hitting targets for cial cooperation’s that required our
about? the campaigns and connecting the services and it was the beginning of
Mirabell Mayack : Over the time, our dots as in people. Le petit Event.
N° 68 / October 2018 BUSINESS IN CAMEROON12 INTERVIEW
“As for virgin investors who have unfortunately not yet dealt with the African continent, they often see Africa through the stereotype of instability, wars, chaos and
poverty.”
BIC : It is true that Le Petit Event has always been my passion and Africa is a different continent, with
promotes African in Europe, but bringing back investment to my its own values and customs which
you seem much interested in country was a dream come through. they must respect. That is why they
Cameroon. What are your ties with Being home in both cultures often must study the market or at least
the Central African nation? allows me to be the bridge between trust this task to some that under-
MM : I was born in Germany from a the cultures and the continents. This stand both markets well. Once this
German mother and a Cameroonian is one of our unique selling points at condition is met, and when one takes
father. My father was a very proud Le petit Event. time to study and respect African
Cameroonian and he took us, his values, it is a great place to invest at.
wife and children, back to Cameroon. BIC : What knowledge do you have I do not stop teasing our European
investors, telling them to spend less
time drinking coffee and instead
“What Europeans must understand is more investing in Cameroon.
that Africa is a different continent, with its BIC : What image do the inves-
own values and customs which they tors you meet have of Africa, and
Cameroon specifically?
must respect.” MM : We have two types of investors.
Experienced investors and virgin in-
He has always instilled in us to be of Cameroon’s business environ- vestors as we call them. Experienced
proud of our African and of our ment and what do you think about investors are already used to Africa.
Cameroonian heritage in particular. it, since you are supposed to pro- British investors indeed have more
We spoke one of the local languag- mote this destination to European knowledge of countries like Nigeria,
es at home and I have kept a very investors? Ghana, Kenya and other English-
positive image of Cameroon when MM : Cameroon has a lot to offer speaking nations. This is because of
I moved to Europe and America. to investors, in terms of opportu- the huge lack of communication be-
I come back regularly, and I love nities and projects. However, what tween English and French speaking
Cameroon and the people. Cameroon Europeans must understand is that countries. What we do therefore is
BUSINESS IN CAMEROON N° 68 / October 2018INTERVIEW 13
introduce British to French-speaking
markets. As for virgin investors who
have unfortunately not yet dealt with
the African continent, they often
see Africa through the stereotype of
instability, wars, chaos and poverty.
However, by building trust with
them, through events to promote
the continent, organized in France,
Germany, Switzerland and UK, we
“Investors unlike
banks invest
not only in the
company but in
the person that
owns and runs
the company.”
try to change their image of Africa.
Instead we show them how beautiful
it is, introduce them to our meals
and potential partners, with the
support of various chambers of com-
merce. Mostly, when we first talk to a
potential investor of Cameroon, what
comes to his mind is football and
Roger Milla. That said, our efforts
make a good start.
BIC : Your firm just successfully
raised a little more than half a bil-
lion CFA (£750,000) to open offices
in Douala (Cameroon), Abidjan
(Côte d’Ivoire) and Kinshasa (DR “I do not stop teasing our European investors, telling them to spend less time drinking coffee and instead
Congo). How did the fundraising more investing in Cameroon”
occur?
MM : We are based in one of the
financial hubs of the world, so
talking investment and money is database that are equally always on an African high commission to which
daily bread in London. London is a the look out for good projects and they noticed the enormous positive
very business-minded and very open projects to invest in. difference. My tireless efforts and
environment. With Brexit looming In London you network , say straight that Le petit Event is a woman led
and Africa on the rise we have con- away how much you are looking to company has had another positive
tinuously worked on our reputation, fundraise and what you are looking impact. They have mostly appreciat-
on our network and have made our for. ed that we have a true international
plans known around town. Our investors have heard from us skill set and therefore understand
We have a good amount of High and liked the concept and the vision, both worlds of opportunities.
networth individuals in our customer have attended one of the events for Our investors have a company
N° 68 / October 2018 BUSINESS IN CAMEROON14 INTERVIEW
BIC : The fundraising took place Having an international skillset and
in the framework of a project you knowing both markets was a good
entitled “Bringing Skills to Africa”. foundation and that is what investors
What is this project about? are looking for more and more.
MM : The fundraising was something
that concerned the company and our BIC : Now that you have success-
expansion on the African markets. fully raised these funds, what are
But being part of the diaspora living your short, mid and long term
in the UK or Germany or France, I goals in Cameroon, for example?
wanted to tell the world that coun- MM : We have a dual plan for
tries like Cameroon need our skills Cameroon. First, we have to work
and that we should start to come on our HR, our HR training and HR
back and transfer our skills. Our solutions, introducing British work
skills are much needed and much ap- culture to local workers. Once we
preciated. I am a woman and if I can have finished renovating our office
go back to the continent and work in space to a very modern and afro
a male dominated environment then fusion British office, (creative break
others could do the same and follow room, modern kitchen, interactive
my example. social media corner, tech hub
“Cameroon has always been my passion and corner), accomplished training with
bringing back investment to my country was a
dream come through.”
BIC : How did you convince inves- the new team and established a
tors to get the funds you needed? routine, we will have a once in a life
MM : We have opened 3 years ago time official launch and this will be
and have gradually grown and a beautiful showcase of how to bring
portfolio managing more than $5 continuously grown our turnover. skills back to your country and infuse
billion worth of assets and an annual We have made our impact in the an international and modern flair.
turnover of 60 million Euro. corporate world as with institutions. Our mid-term goal is to make the
We have received an equity finance There has been a growing interest Douala office and team commercially
which was the best option in our case in Africa. Companies like ours have viable.
and I am looking forward to learn
from our investors.
There are many options of invest- “British investors indeed have more
ment and the UK is the place to be in
terms of fundraising.
knowledge of countries like Nigeria,
Ghana, Kenya and other English speaking
BIC : Why did you pick these three
African capitals, two of which are nations. This is because of the huge lack
in the central part of the conti-
nent, while most people would
of communication between English and
have picked at least one city in the French speaking countries.”
southern African region?
MM : Our firm focuses on emerging
Francophone countries. We truly become more sought after then ever. In the long term, we are aiming for a
benefit from the knowledge of these The investors had growing interest team that will be ready to train locals
markets and being the bridge be- in my company and there has been a and teach them their skills and so
tween Europe and Africa. Cameroon mutual interest in working together. forth.
and Congo will strategically cover Advertising the company with a One of the long-term dreams is to
central Africa and Ivory Coast will be strong German (Guetesiegel) was a incorporate more social structures
our door into West Africa. very strong and positive convincing and employee benefits into the
When it comes to public relations argument, based on the work and the office environment such as an office
and their image, these countries network we have already established. canteen run and owned by one of
are still in the developing stages Also, investors shared our vision and our former employees, an in house
and present a lot of potential for liked my passion as an entrepreneur. subsidized nursery for mums and an
a company like ours, in terms of Investors unlike banks invest not in-house financial service provider.
the impact it can have on a given only in the company but in the per-
market. son that owns and runs the company. Interview by Brice R. Mbodiam
BUSINESS IN CAMEROON N° 68 / October 201816
PUBLIC MANAGEMENT
Government recruits 1,000 kindergarten and
elementary school teachers
The Cameroonian minister of Yaoundé. Eligible applicants must of Civil Service or at the regional
civil service Joseph LE, launched be at least 17 and 40 years old at civil service delegations until
September 20 the recruitment by most by January 2018 (born between November 23. Are required, among
competition of 1,000 nursery and 1 January 1978 and 1 January 2001), other documents, a certified copy
primary school teachers under the and hold the Certificate of Teacher of the Capiemp diploma, a diploma
Labor Code on behalf of the Ministry of Nursery and Primary Education presentation certificate, a criminal
of Basic Education for the 2018 (Capiemp) issued by a national record, a medical certificate, a
budget year. training establishment. payment receipt of CFA15,000, two
Written tests are scheduled for Applications will be deposited in photos in 4X4 format, and a stamped
December 1 at the unique center in exchange of a receipt at the Ministry envelope at CFA500 FCFA.
China donates CFA3bn for refugee care
China has just approved to The beneficiaries include victims Let’s recall that a few months ago,
Cameroon a donation worth CFA3 of Boko Haram exaction in Nigeria, the Chinese government contributed
billion mainly made up of foodstuffs, and the 2013 political instability CFA1.7 billion to the implementation
to support refugee care. The grant in Central African Republic who of the humanitarian assistance plan
was given to the head of World Food escaped to Cameroon. According for the two Anglophone regions of
Program (WFP) for Cameroon, to UNHCR statistics, there are now Cameroon plagued by separatists’
Abdoulaye Baldé, by the Chinese 365,000 such refugees, mainly in the violence.
Ambassador to Cameroon, Wang Far North and East regions of the
Yingwu, we learnt. country.
BUSINESS IN CAMEROON N° 68 / October 2018PUBLIC MANAGEMENT 17 Camrail condemned for “manslaughter, accidental injuries and dangerous activities”, on Eséka rail accident Yesterday September 26, the Court of also in legal proceedings for personal of the overturning of the train was First Instance of Eséka (Cameroon’s reasons against Camrail, since 10 an excessive speed of 96 km per hour central region) issued a verdict years”, Bolloré said in a statement. in a section of track where the speed condemning Camrail, the nation- Let’s recall that, during a correc- is severely limited to 40 km/h,” the al rail carrier, of “manslaughter, tional hearing last March 14, Jean document said. Experts observed “an accidental injuries and dangerous Pierre Morel, who was then Director overloading, inappropriate extension activities”, over the case of a tragic General of Camrail, revealed that in of the train, use of passenger coaches accident. Back on 21 October 2016, the aftermath of the Eséka disaster, several of which had failed braking the town was the scene of a deadly the company had set up a commis- devices, use of a power unit whose rail accident which killed 79 persons sion of inquiry to identify the causes. braking was out of service, lack of seri- and injured 600 others. According to him, the experts com- ous verification of the continuity of the However, this local subsidiary of mitted to this task concluded that train’s braking before leaving Yaoundé, Bolloré group “rejected” the court’s the overspeed of the train, from some refusal by the Camrail hierarchy to decision denouncing “the absence of point along the route, was the cause take into consideration the suggestions any qualified and competent expertise of this accident, without being able expressed by the train driver due to the which should help identify, in an objec- to explain the reasons why the train above-mentioned anomalies”. tive way, the true causes of this tragic suddenly took an abnormal speed. For now, Camrail gives no detail on accident, and definitively limit them In need of in-depth assessment, Jean whether it will appeal this court deci- in order to make the Cameroonian Pierre Morel had suggested an “inde- sion which, the company said “does railway more secure”. pendent international expertise”. not provide a clear explanation of the “Camrail expresses, along with its On 23 March 2017, the government real causes of the derailment of train 1,600 employees, its total misunder- issued a statement on the results 152”. It may be awaiting the court to standing in the face of a decision clear- of investigation conducted by the specify the sanctions resulting from ly based solely on the assessment of a national committee of injury set the verdict. few former non-specialist employees, for this purpose. “The investigation non-sworn but declared experts, and report concluded that the main cause N° 68 / October 2018 BUSINESS IN CAMEROON
18 PUBLIC MANAGEMENT
Public deficit to fall by over 3 points in 2018
In 2018, Cameroon will cut public either record a surplus or a balance. 2017),” the bank said.
debt by more than 3 points to only In detail, “surpluses would be recorded The general improvement in CEMAC
-1.2% of GDP against -2.1% of GDP in Equatorial Guinea (+2.1% of GDP, zone is attributable to “the increase
initially forecasted and -4.6% in 2017. compared to -6.5% of GDP initially in revenues from hydrocarbon
This was revealed by the Bank of forecasted and -2.3% of GDP in 2017) exploitation, following a higher than
Central African States (Beac) in an and Chad (+0.6% of GDP, against expected increase in crude oil prices
economic outlook. -0.4% of GDP initially and -1.2% of combined with the upward revision
According to the document, the GDP in 2017); A balance would be of oil production in some countries;
country will be, alongside Gabon observed in Congo (+6.1% of GDP, and the continuing downward trend
(-0.4% of GDP in 2018, against an after an expectation of +1.5% of GDP, in budgetary expenditure” in some
initial forecast of -0.5% of GDP, compared to -5.1% of GDP last year) countries such as Cameroon which
and -1.9% in 2017), one of the two and in the Central African Republic has a program with the IMF.
CEMAC countries to remain in defi- (+1.0% of GDP, rather than +0.6% of
cit while the other four countries will GDP, compared to -1.2% of GDP in
Government reauthorizes access to armories
in some regions
The Cameroonian government local market, will be subject to a September 4 and 5, armory owners
has just lifted the temporal ban on territorial authorization, valid for six or their agents must submit, every
armories in some regions namely months”. week, to the relevant territorial
Adamaoua, Central, Coastal, Western, Moreover, the Minister of Territorial administrative authority (prefect and
North-Western and South-Western Administration will allocate an sub-prefect), the exhaustive list of
regions. This was revealed by the annual order quota to each operator. weapons and ammunition purchas-
Minister of Territorial Administration No importer will be allowed to open ers, along with the corresponding
(Minat), Paul Atanga Nji. armories in more than four regions, authorizations.
However, the official said, in order to or to have more than two stores in Let’s recall that the measure of
avoid a resurgence of slippages and the same region. Any attempt to closing the armories was decided on
other dysfunctions that led to this open an agency under a nominee will 4 April 2018, due to “the proliferation
measure, the government put the expose the promoter to permanent and illicit circulation of firearms of all
sector under a rigorous supervision withdrawal of its authorization. calibers and ammunition”. More than
and control. In this wake, “any order Mr. Nji recalled that, according to 23,000 weapons are illegally circulat-
of arms and ammunition, whether the commitment made by the sector ing Cameroonian territory, according
through import or purchase on the players during meetings of last to the Minat.
BUSINESS IN CAMEROON N° 68 / October 2018PUBLIC MANAGEMENT 19 Net receivables grew by 25.9% in H1 2018, partly due to drawdowns in Cameroon Over the first six months of 2018, net Central Bank (BEAC) revealed. tory advances ceiling”. Other reasons receivables on the six countries of This growth, the bank said, is partly are “the increase in credits from the the Economic Community of Central due to Cameroon which, at the end International Monetary Fund (IMF)” African States (CEMAC) increased of 2017, drew down “the residual and “the decrease in public deposits” by 25.9% to CFA2950.7 billion, the margin (CFA276.5 billion) on its statu- with banks. CEMAC: Beac welcomes the positive impacts of the monetary policy’s new operational framework The Bank of Central African States (Beac) welcomes the positive effects of its new operational framework for the monetary policy within the CEMAC zone. In a memo published September 24, the bank indicated that the innovations established this year cover various areas including the money market intervention instruments and procedures, meth- odologies for setting intervention volumes, minimum reserves, as well as data collection, analysis and ani- mation system of the money market by the Central Bank, etc. “The overhaul of Beac’s interven- tion instruments entailed a greater consistency between them and a better consideration of the various liquid- ity issues, in particular through the modernization of the main refinancing operation, the introduction of fine-tun- ing operations, standing facilities (loans and deposits), operations with longer maturity periods (1, 3, 6, 9 and 12 months) and finally, structural op- erations (temporary or firm purchas- es/sales of securities and Beac Bonds issuance),” the note stated. ly conducted under the national terms of liquidity forecasts. Moreover, the bank said that the refinancing objectives, the multiple “By making market actors more main liquidity injection operation, rate tender has the advantage of responsive to monetary policy since 11 June 2018 when the new encouraging credit institutions to guidelines, this approach should make operational framework entered into boost their cash management. Since it possible to recycle idle resources be- force, is now conducted through the proposed weekly volume can be tween the guidelines and contribute to a multiple rate tender. Therefore, modified from one week to the next, the interbank market’s development,” unlike fixed-rate tenders previous- this approach is more demanding in Beac pointed out. N° 68 / October 2018 BUSINESS IN CAMEROON
20
FINANCE
Cameroon: Moroccan group to acquire
BICEC
The French banking group Banque the 68.5% shares BPCE has in BICEC. country’s 4th largest bank.
populaire Caisse d’épargne(B- “We are looking for a partner who al- Let’s note that BPCE also holds 4.5%
PCE), announced September 24 in ready knows Africa very well and has shares in the Moroccan BCP. The
Paris that it will sell its shares in an African development project,” said latter is a shareholder of the Ivorian
Cameroon’s International Bank of Jean Pierre Levayer, Managing group Banque Atlantique which
Savings and Credit (BICEC) to the Director of BPCE International. owns a subsidiary in Cameroon.
Moroccan group People’s Central The Moroccan group which fits this Cameroon’s International Bank of
Bank (BCP). profile well will therefore become a Savings and Credit (BICEC) is the 3rd
The transaction’s completion is market competitor for its compatriot largest operator in the Cameroonian
subject to required approvals and Attijariwafa Bank which controls banking sector behind Afriland First
authorizations. Once completed, the Société commerciale de banque au Bank and Société générale.
Moroccan banking group will hold Cameroun (SCB Cameroun), the
In 2017, only 10% of Cameroonians aged
15 and older had bank accounts (Minfi)
In Cameroon, just 10% of the pop- assessing the levels of access to and Cameroon. Indeed, people widely
ulation aged at least 15 had a bank use of financial services across the preferred informal credit (11%) over
account in 2017. This was revealed country. formal credit (3%). In addition about
by the finance ministry (Minfi) in a According to the document, finan- 10% of the focus population received
“FinScope” survey, which aimed at cial inclusion is relatively low in credit from relatives or friends.
“Consumer education and financial
education are serious concerns in
Cameroon, mainly in the insurance
sector, where most adults lack finan-
cial literacy,” the study said. About
51% of adults surveyed pointed out
the need for financial education
training, mainly on how to save and
the benefits of financial products.
Meanwhile, 45% do not seek finan-
cial advice although due to lack of
financial information.
“Only 29% of those aged 15 and over
use mobile money service while the
mobile penetration rate was 76%. This
means, the digital financial inclusion
can still be improved. This is all the
more important, because Mobile
Money is a relatively new financial
product with huge potential,” the
FinScope mentioned.
BUSINESS IN CAMEROON N° 68 / October 2018FINANCE 21 UNICEF partners with UBA to promote children’s rights The United Nations International (CSR) and awareness-raising activi- structures. Children’s Emergency Fund ties between the two parties on HIV/ UNICEF Cameroon targets collabo- (UNICEF) and the United Bank for AIDS, nutrition, health, education, ration with private sector partners Africa (UBA) signed, September 27 child protection and social inclusion. to increase their role in promoting in Yaoundé, a partnership agree- “UBA agencies will thus become children’s rights and ensure their ment to promote children’s rights in child-friendly spaces where informa- effective participation in the respect Cameroon. tion and awareness-raising messages of these rights. On the other hand, According to Unicef ’s representation on respect for children’s rights will UBA sees this opportunity to develop in the country, the cooperation pro- be disseminated,” said the UN body, its social responsibility for children vides for a training of UBA employees mentioning that the partnership in Cameroon, and for the most on corporate social responsibility is part of the missions of both vulnerable children, in particular. Bdeac adopts new operation texts to comply with international standards The Development Bank of Central and define new rules of ethics and enable it to make a fresh start,” the African States (Bdeac) announced it professional conduct for directors, bank statement indicated. adopted new operation texts to com- managers and staff. As well, they In a forward-looking approach, the ply with international standards. This include an expansion of the insti- Board approved the 2019 budget followed an ordinary board session tution’s area of intervention and of CFA28.35 billion. The objective held September 24 in Brazzaville, the establishment of new forms of during this financial year is to inten- Congo, we learnt. intervention. sify the Bank’s activities in terms of The texts aim to strengthen the “These reforms, expected by all the resource mobilization, through the bank’s governance, improve its institution’s directors, shareholders diversification of financial partners, functional and operational efficiency, and partners, confirm its renaissance signature credibility and the reorgan- modernize personnel management, and are a historic fact, in that they will ization of accounting. N° 68 / October 2018 BUSINESS IN CAMEROON
22 FINANCE
The once-poor interbank market is getting
more dynamic, boosted by repo mechanism
CEMAC’s interbank market is getting “Between June and July (this year), 75 mechanism compensated for the
more dynamic thanks to the deliv- framework agreements were signed, lack of secure financial products that
ered repurchase agreement (repo) including between local and foreign were leading the market, insofar as
mechanism which is a financing banks,” he said during a “Capital the repurchase agreement allows
technique characterized by an markets in Central Africa: challenges the lender to automatically transfer
exchange of marketable securities and opportunities” seminar recently ownership of the securities served
with cash for a fixed period of time organized by the International as collateral by the borrower, once
under a framework agreement Finance Corporation (IFC) in the repayment date of the debt has
between parties. This was announced Yaoundé. “In July 2018, there was a expired. “We don’t even need to go
by Aboubakar Salao, member of proliferation of transactions on the to court to get this transfer of owner-
the audit committee of the Bank of interbank market,” he added. ship,” concluded Aboubakar Salao.
Central African States (BEAC). Indeed, explained M. Salao, this
AfDB bans Geo Sciences International for
“fraudulent practices”
The African Development Bank vices for the Agroforestry Development pany will not be eligible for contracts
(AfDB) announced last September Support Project in the Democratic financed by the African Development
20, it has excluded Geo Sciences Republic of Congo,” the bank said in an Bank. Under the agreement on the
International from companies eligible official statement. mutual application of exclusion orders,
to submit calls for applications. The While applying for a tender for tech- this sanction against Geo Sciences
Yaoundé-based consulting firm will be nical, biophysical and cartographic International can also be applied
banned for 48 months. study services, “the company made by the Asian Development Bank, the
“An investigation conducted by the false statements concerning its expe- European Bank for Reconstruction and
African Development Bank’s Office of rience in conducting similar studies Development, the World Bank Group
Integrity and Anti-Corruption revealed and the remuneration of its experts. In and the Inter-American Development
that the consulting firm has engaged in addition, Geo Sciences failed to disclose Bank,” the AfDB said.
numerous fraudulent practices, as part a potential conflict of interest.”
of a bidding process for consulting ser- “During the exclusion period, the com-
BUSINESS IN CAMEROON N° 68 / October 2018FINANCE 23 Baloon Assurance opens a branch in Douala The Digital insurance brokerage firm Baloon Assurance which leads the African market has just opened a subsidiary in Cameroon last September 20 in Douala, we officially learnt. This occurred a few months after the company launched activi- ties in Côte d’Ivoire and Senegal. Approved since July this year by the Cameroonian Ministry of Finance, Baloon Cameroon will first offer automobile insurance solutions from two major companies on the Cameroonian market, namely AXA and Saham. Then, the broker aims to extend products to other domains with a focus on health insurance, in partnership with other companies operating in the country. “No more queues, no more long and complicated forms to fill out! With Baloon, the customer simply connects to the website www.baloon.cm via his mobile or computer, takes a picture, chooses his formula, signs and pays by mobile money. And that’s it! Easier and simpler than ever,” explained the pan-African start-up founded by Bertrand Vialle, former director of Gras Savoye in Africa. Moreover it committed to boost insurance pen- Let’s recall that, Cameroon’s insur- development of insurance through etration rate in Cameroon, claiming ance penetration rate is officially digitalization, “digitalization could that “in other countries where it is barely 2%. According to Protais increase fivefold insurance revenues implanted, 40% of its customers were Ayangma, founder of Assuretech and improve contribution to GDP” in not previously insured at all”. which is an initiative to boost the Cameroon. BDEAC’s commitments reached CFA279bn, in late June 2018 The Development Bank of Central to transport and energy sectors. also supported the construction African States’ (BDEAC) investments In the energy sector, the bank dis- of the Sangmélima (Cameroon- in Cameroon reached CFA279 billion bursed CFA20 billion to support the Ouesso Congo) road, an inclusive late June 2018, the institution said in Lom Pangar dam’s construction, the project whose completion on the a statement released September 17. largest infrastructure of its kind ever Cameroonian side has been facing According to the document, the built in Cameroon with a storage difficulties in recent years. latest financing granted to the capacity of 6 billion m3. Let’s note that the Development country (CFA7.2 billion) concerned In transport, the CFA25 billion Bank of Central African States is a the completion of a private project to injected targeted the construction of sub-regional institution which oper- set a cocoa processing unit in Kribi Kumba-Mamfé road in the South- ates alongside both governments and (Southern part). In recent years, Western region, which links Douala private sector operators. BDEAC’s commitments mainly went to neighboring Nigeria. BDEAC N° 68 / October 2018 BUSINESS IN CAMEROON
24
AGRIBUSINESS
World Bank grants $190M to support
agricultural colleges in six African countries
including Cameroon
The World Bank will disburse, via sities and the regional agricultural of Regional Anchor University (UAR)
the International Development sector, to develop competent human with the main mission to shut off
Association (IDA), $190 million capital needed to accelerate agribusi- skills and knowledge loopholes in
(about CFA106.43 billion) to support ness system transformation in the agriculture in sub-Saharan Africa.
agricultural colleges in six African countries. The Shaea initiative complements
countries, including Cameroon. Early this month, the six states’ the African Development Excellence
As part of the project to Support governments, the World Bank Centers (CEA-Impact) project,
Higher Agricultural Education in Group and the Regional Universities but focuses exclusively on higher
Africa (Shaea), the financing also Forum for Capacity Building in agricultural education and particu-
includes Côte d’Ivoire, Ghana, Kenya, the Agricultural Sector (Ruforum) larly on its relations with the regional
Malawi and Mozambique. The whole launched a call for proposals to agricultural sector.
project aims to strengthen relation- higher education institutions. The
ship between selected African univer- institution selected will play the role
BUSINESS IN CAMEROON N° 68 / October 2018AGRIBUSINESS 25 Cameroonian cocoa to be labeled “pure origin”, in collaboration with French chocolate makers Cameroon is kicking off the “pure fermentation, drying and storage) Facebook, and asked him to buy origin” labelling process of the cocoa approved by the Confédération des her produce. “When I agreed, she produced at post-harvest processing chocolatiers et confiseurs de France”. dared to do it. She sent me 250 kg, excellence centers in the country’s The latter committed to buy beans borrowing €700 (about CFA460,000); production areas. This will follow a at higher prices than usual. The which is equivalent to almost a whole meeting between the Confédération label “will be awarded to cooperatives year’s salary in Cameroon”, reported des chocolatiers et confiseurs de that have a women-included Board”, Christophe Bertrand, impressed by France, the Cameroonian cocoa and the parties said. For the record, the determination of the woman who coffee inter-professional council, Cameroon has three excellence will then become his trading partner. the trade minister and the French centers for post-harvest cocoa pro- Since then, Mr. Bertrand has visited Ambassador to Cameroon on cessing in Mintaba, Si-Manyaï and Cameroon several times along with September 30 in Nkog-Ekogo, the Nkog-Ekogo, in the Central region. members of the Confédération des Central region. Christophe Bertrand, a French chocolatiers et confiseurs de France, According to official sources, the master chocolate maker, recalled whose partnership with cocoa process will guarantee Cameroonian that back in September 2016 producers in Cameroon has grown producers “support in the working Aristide Tchemtchoua, a local cocoa stronger over time. methods (harvesting, cracking, farmer got in touch with him, via N° 68 / October 2018 BUSINESS IN CAMEROON
26
ENERGY
Cameroon: Energy supply grew by 550MW
in 2011-18
Between January and July this year, as the Ahala (60 MW), Mbalmayo During the seven-year period ending,
Cameroon increased energy supply (10 MW), Ebolowa (10 MW), and Cameroon also improved the popula-
by about 550MW while the installed Bamenda (20MW) thermal power tion’s access to electricity, connecting
capacity grew from 900MW to 1442 stations; the Kribi gas thermal power 400,000 more people (800,000 to
MW. This was announced by the station (216 MW); the Lom Pangar 1,200,000), representing an increase
Ministry of water and energy (Minee) hydroelectric dam with a 6 billion by 50%. Let’s mention that over the
as part of its seven-year assessment. m3 water reservoir; the Memve’ele period, the electricity price rose once
This increase in installed capacity hydroelectric power station (211 in 2012.
was achieved thanks to the construc- MW) and the Mekin hydroelectric
tion of several energy facilities such power station (15 MW).
BUSINESS IN CAMEROON N° 68 / October 201827 TRANSPORTATION AFCON 2019: Yaoundé-Nsimalen airport upgrade infrastructure to comply with CAF’s requirements Aéroports du Cameroun (ADC), the national airports’ management company announced it is renovating the Yaoundé-Nsimalen airport to comply with the specifications of the African Football Federation (CAF) in preparation for the 2019 African Cup of Nations (AFCON). In detail, infrastructures will be upgraded to provide for the suita- ble comfort of official delegations and airport passengers during the event (June-July). “There is no more low iron chairs in waiting areas. We planned comfortable black airport chairs with grey armrests out of which 2,000 are already installed and we are waiting for 2,000 others. All rooms are equipped with new monitors that constantly screen security information, flights, customs, etc.,” ADC informed adding that duty free shops are also being developed. carts have been acquired and the the paint and the acquisition of new In addition, in collaboration with the airport already has a fully function- equipment. As well, the runway is now police and customs services, ADC is ing ventilation system. ready to accommodate any aircraft considering the creation of corri- “In the coming months, we are plan- type on an aircraft tarmac,” the com- dors for airport formalities, sorting, ning the refurbishment of escalators, pany indicated. screening and baggage handling. 800 the eight elevators, the refreshing of DIT paid CFA185.3bn in taxes over 13 years The concessionaire of the container on the popularization of container loading ships, four gantry cranes, 18 terminal at the port of Douala, removal procedures in the port. park cranes for loading and unload- DIT, announced it has paid the The company managed by Bolloré- ing containers, etc. Cameroonian government CFA185.3 APMT, also indicated that it had The volumes handled by DIT at the billion in taxes over 13 years of invested around CFA45.559 billion Douala container terminal increased activity. This translates into an over the period. Currently DIT has from 131,994 twenty-foot equivalent annual payment of CFA14.25 billion. 393 employees with 4,790 hours of containers (TEUs) at the beginning The news was recently disclosed at training. Its equipment includes five of the concession in 2005 to nearly a meeting with economic operators quayside cranes for unloading and 386,500 TEUs in 2017. N° 68 / October 2018 BUSINESS IN CAMEROON
28 TRANSPORTATION
Cameroon: Camair Co airline expands
domestic service
Cameroon’s public airline, Camair tween Ngaoundéré and Garoua, two above the 100 usually handled. Since
Co, will expand its domestic service. northern cities. Let’s note that until it launched a recovery plan in 2016,
Indeed, the company announced now, the company serves the north- the air transporter has served seven
it will increase the number of daily ern region through direct flights of Cameroon’s 10 regional capitals
flights from three to four between either from Douala or Yaoundé. (Bafoussam, Bamenda, Douala,
Yaoundé and Douala. This new organization brings the Garoua, Maroua, Ngaoundéré and
In addition, it will also open a line be- number of weekly flights to just Yaoundé).
BUSINESS IN CAMEROON N° 68 / October 201829 INDUSTRY Sic Cacaos, Neo Industry and Atlantic Cocoa could lose CFA11 billion, on Anglophone crisis In Cameroon, cocoa processing com- raw materials from the North-West time. panies are currently facing a contin- and South-West regions are likely to GICAM said, the discontinuity in ac- uing decline in activities, mainly due shut down activities over five weeks. tivity could make the companies lose to the ongoing crisis in Anglophone These include Douala-based Sic around CFA10.8 billion. However, regions. This was revealed by the Cacaos with a processing capacity of there is room for recovery. “The recov- national inter-employers’ group 55,000 tons, as well as Neo Industry ery of activity lies, in the short term, on (Gicam) in a recent report on the (based in Kekem) and Atlantic Cocoa the possibility of finding other sources crisis’ economic impact. (in Kribi), which will respectively of supply and in particular using spot According to the group, three commission a 32,000-ton plant and imports,” the group mentioned. companies which mainly source a 48,000-ton unit in a few months’ Veneers export to Europe grew by 29% in H1 2018 During the first half of 2018, According to the organization, this growth by 14% while Gabon, on the Cameroon’s veneers export to the uptick occurred amid an overall other hand, witnessed a decline by European Union (EU) increased drop by 17% in EU’s tropical wood 32%. “The drop in Gabon’s wood by 29%, the International Tropical veneers import over the period. In export is probably linked to the Timber Organization (ITTO) said in Africa, Cameroon outperformed Côte financial difficulties faced by Rougier a memo. d’Ivoire which recorded a slighter group this year,” ITTO mentioned. N° 68 / October 2018 BUSINESS IN CAMEROON
30 INDUSTRY
60-80% of agribusinesses are out of reach in
North-West and South-West Cameroon due
to unrest (Gicam)
Due to the ongoing Anglophone beverage industry witnessed a loss of directly or not with them have been
crisis, 60% to 80% of agribusinesses up to CFA40 million in turnover since set on fire. This implies a significant
located in the North-West and South- the unrest started in October 2016. decline (5% to 40%) in deliveries to
West regions are now inaccessible, Theft and vandalism have already customers namely bakers and other
the Cameroonian inter-employers’ cost the industry more than CFA500 wholesalers; the impact differing
group (Gicam) said in a recent report million in material losses, in addition from one company to another. The
on the crisis’ economic impact. to sums paid by employees to escape shortfall for the entire sector is
The document indicated that many robberies and other threats. valued at around CFA4.9 billion.
companies in these regions have Though milling industries own no Let’s mention that if the situation
been forced to dismantle logistics flour mill in these regions, their activ- worsens, total job cuts could reach
and marketing infrastructure to ities also suffer from the climate of up to 15% of employees.
avoid vandalism and destruction. insecurity. Delivery trucks belonging
One of the most affected sectors, the to them or to third parties that work
Sawn wood exports to Europe fell by 8% in
H1 2018
During the first six months
this year, Cameroon’s sawn
wood exports toward
Europe dropped by 8%
despite a 5% increase in
imports on the European
market. This was revealed by
the International Tropical
Timber Organization (ITTO)
in an economic outlook.
Over the period, Côte d’Ivo-
ire also witnessed a decline
by 7% in sawn timber export
to the market. However,
upward trends were
observed in Gabon (+16%),
Congo (+6%), Ghana (+16%),
Malaysia (+19%) and Brazil
(+4%). Indonesia was atop
the list with shipments up
186% compared to the same
period in 2017.
Let’s note that Cameroon’s
overall wood exports to
the EU increased by 7% in
H1 2018, boosting its market
share to 16.6% from 15.7%,
ITTO indicated.
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