This week in business on The Morning Call, Amelia Martha Nakitimbo looks at Nigeria’s call for a delay in the launch of the West African single currency.

The Nigerian Presidency in a tweet sent out on Monday “the convergence criteria between states” which have “not been met by the majority of countries.”

Meeting the convergence criteria has been a sort of glass ceiling hindering the realisation of this single currency over the last twenty years.

Also this week, Ghanaian President, Nana Akufo-Addo assured his counterparts that the Secretariat of the African Continental Free Trade Area will be operational by the 31st of March, 2020.

In a closed door session during the during the 33rd AU Summit in Addis Ababa, Ethiopia, President Akufo-Addo indicated that the premises have been already been furnished based on the specific requirements agreed with the AU Commission including the installation of critical Data and IT Infrastructure facilities and Security Systems.

The summit voted South Africa’s Wamkele Mene to be the first head of the AfCFTA Secretariat.

Source: Africa News

London-listed Tower Resources has started the site survey at its Thali license offshore Cameroon, ahead of the planned drilling operation at the NJOM-3 well.

Tower Resources said Tuesday that the Geoquip Marine geotechnical drillship vessel MV Investigator was at the proposed site for the NJOM-3 well, and was conducting the site survey.

The MV Investigator is expected to complete its boreholes in a few days, Tower said, adding that analysis of the data and preparation of final reports “will take a little longer, but should allow the Company to move to more concrete scheduling of the NJOM-3 well on the Thali block later in February.”

Tower was last month given a one-year extension to the initial period of the exploration phase of the Thali PSC.

The company then said that, once the MV Investigator survey is complete, it would discuss the survey results with the drilling company COSL before finalizing arrangements for the well itself.

Tower and COSL in August 2019 signed a letter of intent for the supply of the COSL Seeker rig to drill NJOM-3 instead of the Topaz Driller jack-up previously agreed with Vantage Drilling.

The NJOM3 well is planned to be drilled to a total depth of 1,100 meters intersecting at least three reservoir zones already identified by the NJOM1B and NJOM2 discovery wells drilled on the Njonji structure by the previous operator Total.

The well is designed to confirm the greater reservoir thicknesses observed on the reprocessed 3D seismic in the up-dip area of the structure, and also evaluate additional reservoirs that were not present in the areas where Total’s wells are located.

The NJOM3 well is designed to supplement Total’s well data with a suite of measurement and logging tools and drill stem test (DST) flows to surface. The company’s intention is then to suspend the well with a view to subsequent completion as one of four initial production wells on the structure.

Source: oedigital

The representatives of Cameroon’s top employers are calling for the sacking of Cameroon’s tax chief, a sign of deteriorating relationships across the business and government sectors as the economy underperforms.

The president of the Groupement Inter-Patronal du Cameroun (GICAM), Célestin Tawamba, in a letter dated 16 January and addressed to President Paul Biya, complained about the attitude of the current head of the Direction Générale des Impôts (DGI), Modeste Mopa Fatoing.

An observer of the country’s economic environment, summed up the letter, saying it was “an indictment and, above all, an explicit demand for [Fatoing’s] dismissal”.

In what was obviously a deliberate leak, the letter made the front page of the economic newspapers. One headline dated 22 January, stated: “Consummate breakdown of relations between the Directeur Général des Impôts and companies”, and carried substantial extracts from the letter. Naturally, this ignited activity on social media.

Gicam’s tax reform in question

According to a copy of the letter, seen by Jeune Afrique, the bosses’ boss openly criticised the DGI boss for, among other things, “his inability to engage in dialogue and to deal with contradiction, the refusal to issue administrative documents which has led to considerable delays in making investments, his inability to devise a short- and medium-term fiscal policy likely to boost growth while ensuring an appreciable level of revenue for the state, his lack of knowledge of the reality for companies”.

For Tawamba, it seems, the straw that broke the camel’s back was Fatoing’s “hostility to a GICAM tax reform proposal in which he [Fatoing] thought he perceived an attempt by the private sector to replace the state, despite instructions from his superiors”.

The cornerstone of GICAM’s 300-page tax reform proposal, submitted in 2018, was to reduce the minimum collection rate on turnover from 2.2% to 1.1%. This would provide companies with a tax break worth 51bn CFA francs ($8.7bn). Tawamba, who is also the founder of the Cadyst Invest Group, has continually advocated abandoning taxation based on activity in favour of a tax based on profit.

Cameroon and the IMF

DGI Fatoing dismissed the complaints. “The DGI is not opposed to anything,” he said.

A tax administration official said: “Arbitrations in budgetary and fiscal matters are made by the presidency” and pointed out that 71% of GICAM’s proposals were validated by a steering committee set up in 2018 by finance minister Louis Paul Motaze, most of which are gradually being implemented.

“The remaining 29% of the proposals, which include the issue of minimum collection, require in-depth studies of their impact, all this while Cameroon is under a programme with the IMF. Moreover, the minister of finance had made this known to employers on 3 November 2018, in Douala,” said our source.

Recipient of the letter, President Paul Biya, has remained silent.

Culled from The Africa Report

Cameroon’s state-owned Société Nationale des Hydrocarbures du Cameroun (SNH) has launched a tender for a feasibility study for a 3D seismic shoot, onshore in the Douala/Kribi-Campo Basin.

Interested parties must acquire the tender file by February 14 with a meeting to be held on February 17, followed by a site visit. Bids, in French or English, must be submitted to the SNH’s contracts unit by March 6, at 1 pm. The feasibility study is expected to take a maximum of four months.

Bids will be opened that day, with a first phase looking at administrative and technical bids. For those companies that get through this step, the bids will then be scrutinised on a financial basis. Bidders may attend the comparison, which will be carried out by the Special Committee for the Award of Contracts relating to Petroleum Operations.

Bidders must pay 763 euros ($840) to secure the tender file and 4,574 euros ($5,038) as a bid bond.

SNH expects to pay for the study from its 2020 budget.

Work will consist of collecting data and information from official agencies; mapping the various challenges that will need to be overcome; identify stakeholders; make recommendations on design and operational planning, including security and logistics; estimate the cost of the survey; prepare terms of reference for a quality assurance expert and for the selection of a seismic contractor, and finally submit the full report.

SNH is offering nine blocks for direct negotiations, of which six are in the Douala/Kribi-Campo Basin. CGG is offering data packages for areas in the country and is assisting with the licensing. The seismic company has 7,637 square km of 3D seismic in the basin, with another 12,571 km of 2D seismic.

Source: Energyvoice.com

The Executive Board of the International Monetary Fund (IMF) today completed the fifth review of the arrangement under the Extended Credit Facility (ECF) for Cameroon. The completion of the review enables the disbursement of SDR55.2 million (about US$76.1 million), bringing total disbursements under the arrangement to SDR427.8 million (about US$590 million).

The Executive Board also approved the authorities’ request for a waiver of nonobservance of the continuous performance criteria on the non-accumulation of new external payments arrears, based on the corrective actions taken by the authorities.

Cameroon’s three-year arrangement was approved on June 26, 2017 for SDR 483 million (about US$666.1 million, or 175 percent of Cameroon’s quota— The arrangement aims at supporting the country’s efforts to restore external and fiscal sustainability and to lay the foundations for a more sustainable, inclusive and private sector-led growth.

Following the Executive Board discussion, Mr. Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair, made the following statement:

“Cameroon’s performance under the ECF-supported program has been mixed. All end-June 2019 performance criteria have been met but four out of the five indicative targets for end-June were missed. Structural reforms are advancing but with delays.

“Cameroon is supporting the CEMAC’s regional external and financial stability through fiscal consolidation and enforcement of foreign exchange regulations. It will be important to also fully align the new Petroleum Code with the BEAC’s foreign exchange regulation.

“Staying the course on fiscal consolidation is essential for building fiscal and external buffers. The authorities are encouraged to broaden the non-oil revenue base, reduce discretionary tax exemptions, combat tax fraud and evasion, and enhance tax and customs administration. Completion of the Treasury Single Account reform and reduced recourse to direct interventions and exceptional spending procedures will help improve cash management and budget execution and strengthen fiscal transparency and budget credibility.

“Urgently addressing financial and fiscal risks associated with the National Oil Refinery (SONARA) is critical. SONARA’s corporate restructuring should be based on a thorough cost-benefit analysis of all available options. The planned audits of four large state-owned enterprises (SOEs) and the clearance of government cross-debts with state-owned enterprises and of government arrears will help mitigate contingent risks.

“Cameroon is at high risk of debt distress. To safeguard debt sustainability, it is important to strictly adhere to the disbursement plan for contracted-but-undisbursed loans and to limit nonconcessional borrowing to macrocritical projects for which concessional financing is not available.

“Enhancing the business climate and governance is key to promoting private sector-led and inclusive growth. Bold actions must be taken to strengthen contract enforcement, improve compliance with the Extractive Industry Transparency Initiative (EITI) recommendations and AML/CFT standards, reduce nonperforming loans, and resolve ailing banks. Further steps to diversify the export base and enhance investment efficiency remain essential to unlock Cameroon’s growth potential.

“Cameroon’s program continues to be supported by policies and reforms by the regional institutions in the areas of foreign exchange regulation and monetary policy and a recovery in regional net foreign assets that is critical to the program’s success.”

IMF Communications Department

The United Kingdom is positioning itself to be the ‘investment partner of choice’ for Africa, holding a summit with leaders of 21 African countries on Monday, days before it leaves the European Union (EU).

Britain’s prime minister, Boris Johnson, who secured the country’s January 31st departure from the EU trading bloc is determined to enter into new agreements with other countries.

British companies run several projects on the African continent including smart street lighting in Nigeria and environmentally friendly breweries in Kenya. They have reportedly signed deals worth more than $7.8 billion ahead of Monday’s summit.

The UK government says it has signed 11 trade agreements with African countries, and is expected to unveil a new strategy for development in Africa, focusing on infrastructure and trade.

The Department for International Development says it is now focusing on digital technologies, green energy and women entrepreneurs.

Source: Africa News

MTN Group announced that Gordian Kyomukama has been appointed as the new MTN South Sudan CEO, effective 21 January. Kyomukama is a seasoned telecoms executive, with close to 30 years of experience in the sector, most of which has been with MTN. He started at MTN Uganda as part of the operator’s pioneer team and has also undertaken secondment opportunities in Rwanda, Cameroon and Ivory Coast, in the course of his tenure. Prior to returning to Uganda, he was Chief Technology and Information Officer of MTN Liberia.

In other changes, MTN Cameroon CEO Hendrik Kastee, will be leaving MTN at the end of March, due to personal reasons. He will serve out his notice over the next two months, and a successor will be announced when finalised. 

Source: Telecompaper

Tower Resources has been given more time to explore at the Thali license in Cameroon.

Tower said Wednesday that the country’s authorities had granted it a one-year extension to the initial period of the exploration phase of the Thali PSC as requested by Tower.

AIM-listed Tower further said that it has spent the last couple of weeks with finalizing preparations with Geoquip Marine for the MV Investigator geotechnical drillship vessel to conduct the site survey on the NJOM-3 drilling area prior to the start of drilling operations.

The MV Investigator vessel is already in Cameroon, where it has been performing some routine maintenance, and the vessel is expected to start work on the survey shortly, Tower said.

“When the survey report is complete the company will discuss the survey results with the drilling company COSL, with whom it executed an LOI announced on 28 August 2019, before finalizing arrangements for the well itself,” Tower added.

Jeremy Asher, Chairman & CEO, added: “We would like to thank His Excellency the President of the Republic, His Excellency Prime Minister Dr. Joseph Dion Ngute, His Excellency the Minister Gabriel Dodo Ndoke, together with their respective staffs, and of course the Société Nationale des Hydrocarbures, for their continued commitment to us and to the Thali project.”

The NJOM3 well is planned to be drilled to a total depth of 1,100 meters intersecting at least three reservoir zones already identified by the NJOM1B and NJOM2 discovery wells drilled on the Njonji structure by the previous operator Total.

The well is designed to confirm the greater reservoir thicknesses observed on the reprocessed 3D seismic in the up-dip area of the structure, and also evaluate additional reservoirs that were not present in the areas where Total’s wells are located.

The NJOM3 well is designed to supplement Total’s well data with a suite of measurement and logging tools and drill stem test (DST) flows to surface. The company’s intention is then to suspend the well with a view to subsequent completion as one of four initial production wells on the structure.

Source: Oedigital

The Kuwait Fund for Arab Economic Development (KFAED) sealed a loan agreement worth KD 5 million (around $17 million) to Cameroon yesterday. KFAED’s Deputy Director-General Nedhal Al-Olayan and Cameroonian Minister of Economic Alamine Ousmane Mey signed the agreement.

The deal was signed in the Cameroonian capital of Yaoundé, and the loan will be used in bankrolling a road project in this African country, the fund said in a press release. The project is intended to spur and stimulate economic and social development in Cameroon by means of revamping the road network in central and southern provinces, it said.

The loan makes up roughly 19 percent of the project’s total costs estimated at KD 26 million ($88.4 million), according to the release. It is the eighth loan provided by the KFAED to Cameroon as it had offered seven loans valued at a total KD 33 million ($78 million), it said, adding that the duration of the loan is 22 years with a grace of five years.

Kuwait Fund for Arab Economic Development (KFAED) is the first institution in the Middle East that took an active role in the international development efforts. The Kuwait Fund extends Loans on concessionary term to finance development projects in the developing countries. The Fund also provides technical assistance to finance the costs of the feasibility studies of projects, as well as the training of nationals of the borrowing countries.

Source: Kuwaiti Times

Cameroon has bowed to pressure from truckers and is dismantling illegal roadblocks and check points from the country’s port city of Douala to the Chadian capital of N’Djamena.  For more than a week, truckers refused to drive the route because of extortion at the checkpoints. Drivers have resumed full activity now that officials are listening to their complaints.

Cameroonian truck driver Ngaibai Bassirou drives his semi-trailer carrying building material out of the Ngaoundere truck stop in northern Cameroon on his way to the Chadian capital.

Ngaibai said after grounding his truck for 10 days he and 90 other truck drivers decided to resume deliveries because authorities in Cameroon are dismantling some of the illegal check points that extort money from him and his peers.

He said what made them very angry and stop transporting only basic goods like food and medication to Ndjamena was that they were spending up to $500 to pay their way through the many Illegal check points between Douala and Ndjamena and a similar amount on their way back.

Bassirou said truckers were surprised that after complaining to the government several times last year, the number of check points increased, and the money collected from truckers skyrocketed.  

The truckers began their protest on January 2.

Aashir Issa, vice president of Chad’s National Trade Union of Truck Drivers, said Cameroon should not only dismantle the illegal check posts but should also make sure people who create such posts are punished.

He said the government should make sure the police, gendarmes and customs officers who mounted the illegal check points answer charges in courts of law. He said the dismantling of 15 unauthorized control posts in a distance of 70 kilometers within 12 hours indicates how truck drivers were severely exploited and that they are ready to indicate to the governor so many other illegal check points where transporters are harassed to give money without receipts.

Kildadi Tagueke Boukar, governor of Cameroon’s Adamawa region, where Ngaoundere is found, supervised the clearing of the check points. He said some of them were created by Cameroon security services for what they described as strategic reasons, but that such reasons cannot undermine a decision taken by Cameroon and Chad to regulate transport between the two countries.

In January of last year, Chad and the Central African Republic dispatched senior customs officials to Cameroon to look into the problem of the illegal checkpoints.

Chad and C.A.R. businesses threatened to start importing and exporting goods through Cotonou in Benin, although Douala is the nearest ocean gateway for the landlocked countries.

In March 2019, the transport ministers of Cameroon and Chad signed an agreement recognizing only one security check point on the road between Douala and Ndjamena.

Cameroon’s ministry of transport said it has reduced the number of check points along the road by 75 percent, and officials have promised to dismantle the rest. 

Source: VOA