The 4th edition of the Cameroon Investment Forum, a flagship biennial event that brings together high-level government officials, development partners, and various business stakeholders from around the world, opened on Wednesday in the commercial hub of Douala.

Organized by the state-run Cameroon Investment Promotion Agency (CIPA), the forum aims to intensify the import substitution dynamic in Cameroon by mobilizing and directing investments into niche sectors such as rice, maize, fish, milk, and palm oil, said CIPA Acting General Manager Donatus Boma.

“It is a platform for high-level consultations and exchange of experiences. It is an excellent opportunity for investors to understand why Cameroon is an investment destination,” Boma said during the opening ceremony, which was attended by African, Chinese, Russian, and European investors.

“The main objective is to encourage local investors and attract foreign direct investment in products aimed at increasing local production and processing. This initiative should help reduce Cameroon’s deficit caused by the importation of staple foods in large quantities,” he added.

The forum, held after years of postponement due to the COVID-19 pandemic, will end on Friday.

Source: Xinhuanet

Cameroon’s brewing companies saw a significant boost in their beer exports in 2022. According to data from the National Statistics Agency (INS), exports surged by 73% over the period to 12,602 tons, bringing in a total of CFA5.7 billion. The previous year, beer exporters sold 7,285 tons of beer and collected CFA3 billion.

Soft drink shipments have followed a similar trend. INS reported that these beverages generated CFA3.5 billion in 2022, from exports totaling 7,124 tons. This represents increases of 46.6% in volume and nearly 61% in revenue compared to 2021, when the country exported 4,860 tons for CFA2 billion.

Although neighboring countries of Cameroon have brewing facilities that are often owned by the same multinationals operating in Cameroon, the beers and beverages from this CEMAC country are highly sought after, especially in countries like Gabon and Equatorial Guinea.

Source: Business in Cameroon

The Ministry of Mines, Industry, and Technological Development of Cameroon has officially opened the country’s first enclosed gold ore processing unit in the town of Kana, Eastern region. This groundbreaking facility, a first for Central Africa, was announced on April 5 by the acting head of the ministry, Fuh Calistus Gentry. The project, spearheaded by the companies Codias, Yucam, and Xin Wang, represents a significant leap in mining technology and practices within the region.

Boasting a maximum processing capacity of 500 tons of ore per day, the innovative gold processing system set up at the Shunda Mining site is expected to increase production efficiency to over 90%, boost national reserves, and ensure greater transparency in actual production figures. In addition to being profitable for both the state and operators, it is also lauded for its environmental benefits and as an effective solution to combat child labor in mining operations.

“This system for processing mineralized gravel in a closed tank will significantly reduce the waste of resources, marking a significant change from the precarious situation that currently prevails in the East and Adamaoua regions. It will also significantly reduce the environmental footprint of the mining industry as it is practiced today using methods that are three centuries old,” said Minister Fuh Calistus Gentry, as reported by Cameroon Tribune.

Traditionally, gold ore processing in Cameroon has been done using open systems, which experts say results in a mere 30% average gold recovery rate. This method leads to a 70% waste of resources, which end up being released into the environment. The new system triples the metal recovery rate from 30% to as high as 90% or even 95%. Moreover, what used to be discarded as waste is now seen as a potential deposit for further gold extraction.

The government aims to establish 10 such enclosed system operations across the country. Companies Codias SA, Yucam, and Xing Wang are fully committed to meeting the activity schedule for setting up an enclosed mining system by August 2024 at the Colomine small gold mine project site and at the Batouri-East site for semi-mechanized artisanal mining. Moreover, two more installations are planned at the mining sites in Bétaré-Oya, also in the East, alongside the inauguration of an enclosed system designed by a French company later this month and another by a Canadian company in June 2024.

The government’s goal is to completely abandon artisanal methods. Previously, some semi-mechanized artisanal operators used chemicals like mercury and cyanide for gold recovery, leading to uncontrolled environmental effluent discharge and exposing local populations to heavy metal contamination risks.

In July 2023, Fuh Calistus Gentry urged mining operators to adopt enclosed processing units (or closed circuits) to eliminate any risk of accidental effluent discharge into the environment. On April 5, he reiterated his call for operators in the sector to transition “as soon as possible” to this system or face the withdrawal of their exploration permits. Gentry emphasized that it will no longer be possible to issue a semi-mechanized mining exploitation permit without an enclosed system installation plan or partnership with a company that has such a system. He also gave a six-month deadline for existing permit holders to comply with the new requirement.

Source: Business in Cameroon

During the significant electoral meeting on April 9 in Douala, Célestin Tawamba was elected with an overwhelming majority as the first president of the Cameroon Business Consortium (Gecam), garnering more than 98% of the vote. He was the only candidate. Tawamba, who leads Cadyst Invest, takes on the presidency in the aftermath of a highly debated merger. This merger brought together the Inter-Patronal Group of Cameroon (Gicam), the nation’s premier business organization, and the smaller, yet significant, business group Entreprises du Cameroun (Ecam), which itself was born out of dissent within Gicam.

The merger treaty between Gicam and Ecam was signed on April 5, 2023, and ratified on July 11, 2023, amidst attempts by some Gicam members opposed to the merger to block the assembly. These dissenters, who also initiated legal proceedings, suspected Tawamba of seeking to dissolve Gicam for personal gain. Critics argued that Tawamba, having served two terms as the president of Gicam and ineligible for a third term, orchestrated the merger to head the nascent organization.

Despite opposition claims, the decision for a merger-creation rather than a merger-absorption was made, a choice that did not alleviate suspicions surrounding Tawamba’s motives. This led to the establishment of Gecam, effectively dissolving Gicam despite reservations from both the council of elders and the board of the then-leading business organization in Cameroon.

Tawamba has faced criticism since the inception of his merger proposal but maintained that his goal was simply to unify the business community for a more effective representation of corporate interests. On January 29, 2024, in a letter to the members of the newly formed organization, he responded to the widespread call for his leadership, stating, “I must, in truth, confess that there are requests that duty compels one to accept, lest one commits betrayal. Many of you, individually or collectively, have asked me to take my share of responsibility by continuing beyond just the entry point in the process of solidifying this important edifice that we have built together.

As Tawamba takes the helm of Gecam, numerous legal challenges initiated by members of Gicam opposed to the merger, which resulted in Gecam’s creation, are still pending in court.

Source: Business in Cameroon

The Bank of Central African States (BEAC) has successfully withdrawn a total of CFA63 billion from the banking system in two operations. This move is part of the central bank’s efforts to combat monetary inflation, which accounts for 20% of the inflation in the region.

The first withdrawal operation took place on March 28, when the central bank targeted CFA50 billion through the issuance of 14-day BEAC bonds at a 2.5% interest rate. However, it only managed to attract an offer of CFA15 billion, resulting in a relatively low demand coverage rate of just over 30%.

On April 2, BEAC launched another operation for CFA230 billion but only one bank participated, allowing the central bank to withdraw CFA48 billion at an interest rate of 1.25%. In total, the central bank managed to collect CFA63 billion from commercial banks in a week.

Let’s note that the escalation of liquidity withdrawals, including increasing the amounts sought by the BEAC and issuing BEAC bonds, are among the strategies employed by the CEMAC central bank to fight soaring inflation within the region. In addition to these measures, the BEAC has recently increased its key interest rates multiple times to slow down the refinancing pace of commercial banks and has suspended its liquidity injection operations into the banking system.

The central bank’s goal is to drain the banks and thus restrict economic agents’ access to credit. According to the BEAC, injecting significant financing into economic circuits contributes to inflation, especially in countries like those in the CEMAC region, where most goods and services are imported.

Source: Business in Cameroon

The government of Cameroon has announced a 10% reduction in the taxable value of newly imported tires. This move, reported by the Minister of Finance -Louis Paul Motazé, aims to lower the cost of new tire imports into the territory. It is set to last for six months, with the possibility of an extension if required.

Minister Louis Paul Motazé stressed that the decision was taken following “the very high instructions of the Head of State… prescribing additional support measures after pump fuel prices were adjusted,” starting from February 3, 2024. These presidential directives were communicated to him in a letter from Ferdinand Ngoh Ngoh, the Secretary-General of the Presidency of the Republic, dated February 23, 2024.

Beyond the official reasons provided by the Finance Minister, the reduction in the cost of importing new tires in Cameroon also aims to encourage the use of quality tires in the land transport sector. This sector often experiences road accidents caused by the use of poor-quality tires. However, although the decision by Minister Motazé appears to be a temporary measure, it emerges amidst the implementation of an import-substitution policy, which is designed to reduce imports while introducing incentives to foster the development of local production.

In this context, several projects for tire production facilities are in the pipeline. An example is the Cameroon Tyre Factory (CTF), a subsidiary of Neptune Holding owned by Cameroonian business operator Antoine Ndzengué. Currently marketing “Double Star” tires from the German company Double Star Industry, CTF plans to establish a production unit in Bomono, a suburb of Douala, for an investment of CFA400 billion. With an annual production capacity of 4.6 million units, the factory is expected to create about 2,500 jobs.

Such a project could potentially reduce consumer prices for new tires and narrow the country’s trade deficit caused by the massive importation of both new and used tires. According to a report on Cameroon’s external trade by the National Institute of Statistics (INS), the country spent CFA32.6 billion to import 23,164 tons of new tires in 2022. This expenditure represents a decline of approximately CFA1.2 billion from the previous year, as revealed by the INS report.

Furthermore, the INS document disclosed that Cameroon imported 6,596 tons of retreaded or used tires in 2022, costing just over CFA2 billion. The previous year saw imports of 6,913 tons of such tires, amounting to CFA1.8 billion. Contrary to popular belief, the INS data indicates that new tires, despite being more expensive, are more marketed and used in Cameroon than so-called second-hand tires.

Source: Business in Cameroon

MTN Cameroon reported a robust revenue of CFA325.7 billion for 2023. According to data released on the Johannesburg Stock Exchange in South Africa, this figure marks a 10.9% increase from 2022, showcasing a notable acceleration in growth and performance.

Analysis by Business in Cameroon reveals that revenues rose by 8.7% in 2022, 2.2% less than last year. MTN Cameroon’s revenue substantially outpaced the CFA312.9 billion reported by its main competitor, Orange Cameroon, highlighting the company’s dominant market position. A significant driver behind this growth has been internet connection services, which accounted for nearly 38.4% of total revenues. For the first time, these services have overtaken direct call services as the leading contributor to MTN’s revenue in Cameroon.

The company also saw significant strides in its fintech services, including credit lending, which surged by nearly 44.5% to reach CFA57.5 billion, based on the conversion rate at the end of the financial year. This is a sharp increase from the 10.2% growth in 2022.

Data and fintech services combined have formed 52.13% of MTN Cameroon’s total income, up from 51.4% in 2022, 47% in 2021, and 40.6% in 2020. By the end of December 2023, MTN boasted a record 5.8 million active internet subscribers and 5.6 million active Mobile Money users in Cameroon, marking the highest levels in five years. The average revenue per user in Cameroon reached a new high of CFA2542.02 in 2023.

Amidst this positive trajectory, MTN declared a pre-tax and depreciation profit of CFA123 billion in Cameroon, constituting 37.8% of its revenue, the best margin recorded since 2019. However, despite these favorable outcomes, challenges persist. The internet market faces ongoing consumer grievances regarding service quality across all providers. Furthermore, the South African company is currently embroiled in legal proceedings where its bank accounts were frozen due to a dispute involving Baba Danpullo’s holding company, Bestinver, and its South African banker, First National Bank (FNB), a subsidiary of FirstRand Bank (FRB), one of MTN’s shareholders.

Source: Business in Cameroon

During a collective cocoa sale on March 5, 2024, in Abong-Mbang, a key cocoa-producing area in Eastern Cameroon, producer prices per kilogram soared to a new record of CFA4,225, marking the highest rate both nationally and globally. Following this milestone, on March 6, 2024, Cameroon’s Minister of Trade, Luc Magloire Mbarga Atangana, issued an official statement celebrating the remarkable achievement of the Cameroonian cocoa market, attributing its global prominence to favorable international market dynamics and the consistent improvement in the quality of the nation’s cocoa beans.

Indeed, the continued improvement in beans quality, coupled with the current favorable conditions of Cameroon’s cocoa sector, which has seen producer prices rising for months, is a result of the international market’s situation. This includes projected production declines in Côte d’Ivoire and Ghana, the world’s leading producers, mainly due to climate-related issues and aging plantations. According to forecasts by the International Cocoa Organization (ICCO), global production for 2023-2024 is expected to fall by 11% to 4.45 million tons. This is anticipated to lead to a market deficit of 374,000 tons by September 2024, a significant increase from the 74,000 tons recorded during the 2022/2023 cocoa season.

International price surge

The adverse conditions in the international market have led to a surge in cocoa prices, translating into better remuneration for producers in countries like Cameroon. As reported by Ecofin Agency, “since the start of 2024, cocoa has been the best-performing agricultural commodity on the markets, gaining 56.4%, or more than $2,300 per ton annually. After breaking the July 2, 1977 record of $5379 in early February, the price of the benchmark cocoa contract for March delivery on the Intercontinental Exchange in New York broke the $6000 barrier, reaching a daily high of $6929. On February 26, 2024, prices closed at $6884 per ton. All in all, this is a real breakthrough for brown gold, which only a year earlier was trading at $2,668 a ton”.

Beyond the favorable international context, Cameroonian producers are also benefiting from the strategy of collective sales, which enhances their bargaining power against buyers. This sales method, fostering competition among buyers and subsequently increasing producer remuneration, coupled with the robust demand, explains the surge in prices for Cameroon’s distinctive red-brown cocoa beans since the start of the 2023-2024 campaign. Furthermore, the battle between exporters, typically affiliated with major international traders, and local processors vying for control over the increasingly scarce beans has intensified.

As exporters continue to make massive purchases, the country has welcomed three new local processing plants in less than three years (Atlantic Cocoa, Neo Industry, and Africa Processing), with combined capacities approaching 100,000 tons.

Several operators are prepared to increase their bids to acquire beans, aiming to maintain operations in their frequently idle factories caused by a shortage of raw materials.

Source: Business in Cameroon

The National Institute of Statistics recently issued a statement, providing data on Cameroon’s trade exchanges in 2022. According to the document, Cameroon imported goods worth CFA775.8 billion FCFA from China over the period, representing 15.8% of its total imports.

Even though China maintained its leading position, it did lose a bit of its market share, dropping 1.2% from the previous year. In 2021, China’s share was at 17%, the same as in 2020. The report highlighted that Cameroon mainly imported items like machinery, metals, chemicals, plastics, transport equipment, stone works, and insecticides from China. This variety shows the range of goods Cameroon gets from one of its key trading partners. Cameroon’s imports come from 190 countries, totaling CFA4911.4 billion in 2022.

However, when it comes to exports, China ranks as the 6th biggest buyer of goods from Cameroon, purchasing CFA173.2 billion worth of Cameroonian products in 2022. This accounts for only 5% of Cameroon’s exports, a significant drop from 25.8% in 2021. The Netherlands has taken over as the top buyer, importing goods worth CFA932.1 billion from Cameroon, 26.8% of total Cameroon’s exports. The Netherlands gained 14 percentage points, while China lost over 20 points compared to the previous year.

Source: Business in Cameroon

For years now, the cost of living around the world has left many people in difficult financial times. The rising housing cost in the country has left many people around the world homeless while escalating food and oil prices have left many hungry and desperate. To gain a better understanding of the tough financial times in which the increasing fuel prices have dumped Cameroonians, Cameroon Concord News sent its Douala-based reporter to the streets of the city where he talked to ordinary citizens who did not hide their pain and frustration with the government following the recent fuel price increase. To protect the identities of the speakers, Cameroon Concord News prefers to use their first names. This is what they had to say.

Jean Mark (Taxi driver): We are really dying in silence. The recent fuel price increase is going to kill us. Business is not as lucrative as it used to be. The roads are untarred, and we are already spending a lot on car maintenance. Following the government’s decision to increase pump prices, we too have decided to download the price increase on passengers. This is threatening our bottom-line as many young men and women now prefer to walk as a means of cutting down on their transportation cost. The government must do something. Cameroonians are hurting. Car owners require us to bring more money, but with this type of fuel prices, how do we balance our bosses. To cope with the new situation, I drive for almost 16 hours a day just to go home with something for my family. Things are deteriorating and if support measures are not taken, the economy will take a nosedive.

Marie-Irene (Housewife): I am happy that you have come to interview me right in the market. As you can see, the “Bonassama Market” is almost empty. The market women are complaining that they cannot sell their produce because the buyers do not have the money. Take a look at my market basket and you will see that it is almost empty. With CFAF 50,000 I could only buy a few items. A few years back, CFAF 50,000 could feed a family of five for almost ten days, but with increasing fuel prices, CFAF 50,000 cannot take us anywhere. We are straining. It is hard for us to make ends meet. My husband is the bread winner. For more than five years, he has not received any salary increase but food and fuel prices have been on the rise. The inflation has eroded our net family income, pushing us into poverty. What is even more annoying is that the government does not seem to care. Since the cost of living increased, the government has not taken any reasonable supporting measures. The best it has done is to announce a 5% increase in the salaries of civil servants. 5% is simply nothing. With average salaries in Cameroon standing at CFAF 200,000, a-5% increase will imply that someone with CFAF 200,000 will earn an additional CFAF 10,000. What can that buy for a typical Cameroonian family? The government seems to have put us on a diet, and we are losing weight amazingly fast.

Edimo (civil servant): Honestly, things are falling apart for me. As you can see, I am heading to work on foot. I am a civil servant but look at the way I am dressed. It is as if the government is punishing us for agreeing to serve our country. I am overwhelmed. With a family of six, my salary of CFAF 220,000 cannot carry us. My wife also works but we are still under enormous stress. When you look at Cameroonians, you can easily figure out that they are under pressure. Many Cameroonians are on high blood medication. Stressed-induced diabetes is taking down Cameroonians. Escalating prices are hurting us and our families. Many Cameroonians no longer go to shops to shop. The prices there are well beyond their purchasing power. We all now do purchase our clothes from the second-hand market. We are finished! The government is clearly indifferent to our plight. Many Cameroonians can no longer get the health care they need because of high care cost. This is not the country we all hoped for in the early 80s. And this explains why many people are leaving the country.

Peter Martin (Teacher): I am a government teacher. Times are hard and they will continue in for many years. Prices are constantly moving upward while salaries are stagnating. I have parked my car following the recent increase in fuel prices. I cannot afford to run a car with such a meagre salary. To make ends meet, I must organize extra classes in my home. There are many students who are missing classes because they cannot afford to take taxis to school. Cameroon has not got a real mass transit system, and this makes life challenging to the poor. In a few years’ time, drop-out rates in our schools will be high. Literacy levels are also bound to decline as many parents are instead pushing their children into small businesses. The government must take a look at the situation to ensure that rising fuel prices do not have very serious adverse effects on the economy.

By staff man Alain A. Ebot