Business

18, May 2023

BEAC increases weekly withdrawal operations to CFA100 billion ⁰

The Bank of Central African States increased its weekly withdrawal operations to CFA100 billion, according to a statement made public yesterday May 16.

The monetary institute has specified that only “credit institutions authorized as primary dealers on the monetary market” are eligible for this 7-day offer with a remuneration rate of 0.75%. Usually, the central bank’s withdrawal operations involve an amount of CFA70 billion, but Beac has increased the volume to comply with the tightening of its monetary policy, which began in December 2021.

After raising its key rates four times, the bank decided on February 21 to suspend its weekly liquidity injection operations. The objective is to fight inflation, which is expected to reach 6.4% this year, more than double the 3% threshold tolerated within the Cemac region.

Source: Business in Cameroon

15, May 2023

Yaoundé: African central banks meet to find solution to climate change ⁰

The Association of African Central Banks (AACB) kicked off today in Yaoundé a three-day workshop to discuss the impact of climate change on the continent. The theme is “Impact of climate change on food security and Inflation in Africa: the role of the Financial Sector in Financing Agriculture and the Green Economy”.

“The vulnerability of food production to climatic conditions creates a strong dependence of African countries on imports, which leads in turn to their high exposure to imported inflation,” the Association said, pointing out that in such a context there is an urgent need to boost agricultural financing while remaining respectful of environmental standards.

In this vein, the ongoing workshop will work to “identify the main climate shocks in Africa and the new challenges related to food security; take stock of food insecurity and inflation, while highlighting the main factors that cause them; contribute to a better understanding of the role of central banks in stabilizing prices and the role of the financial system in a context marked by climate change”.

With about 40 members to date, the AACB is a framework for dialogue on monetary and financial issues. Among other objectives, the association aims to “promote monetary, banking and financial cooperation in Africa; contribute to strengthening efforts to establish and maintain price stability and financial stability in Africa; consider the advent of a single currency and a single central bank for the whole continent”.

Source: Business in Cameroon

13, May 2023

Yaoundé: Road users express concerns following Touristique Express’ suspension ⁰

Several users of the Maroua-Yaoundé transport line expressed concerns following the decision announced by Transport Minister Jean Ernest Ngallé Bibéhé to suspend the operator Touristique Express.

As a reminder, the company was suspended after being involved in a fatal accident that killed 14 people and injured several others on May 9 on the road between Garoua-Boulaï and Ngaoundéré. Physical damage, material losses, and loss of life were also reported.

Users fear that Danay Express, Touristique’s only competitor, will not be able to handle the flow of passengers on its own and will soon be overwhelmed. “This measure will put great pressure on Danay. And that may cause other accidents. I don’t know if Danay has enough buses to carry everyone,” said Arthur Akoa, a civil servant in Maroua. Journalist and media owner Guibai Gatama said the suspension decision could leave room for “inexperienced occasional carriers and could cause even more damage to travelers.”

For now, the measure taken by Jean Ernest Ngallé Bibéhè on May 11 is in effect. It should last one month but may be renewed. Minister Ngallé Bibéhè also prohibits the rental or transfer of the company’s rolling stock. The license of the driver involved in the accident will also be suspended for two years.

Source: Business in Cameroon

12, May 2023

Yaoundé: Commonwealth and ITFC partner to empower women business owners ⁰

Thirty-four women from across Cameroon have benefitted from a three-day digital business bootcamp designed to equip them with the skills necessary to scale up their businesses globally.

The Commonwealth Secretariat partnered with the International Islamic Trade Finance Corporation (ITFC) on the bootcamp, which ran from 2 May to 4 May 2023 in Yaoundé, focusing on upskilling women business owners in Cameroon.

Research reveals that women entrepreneurs are at a disadvantage in accessing digital infrastructure and participating in e-commerce platforms. The bootcamp aimed to help address that deficit by providing skills and resources in entrepreneurship, financial literacy and digital know-how.

One of the entrepreneurs attending the bootcamp, Buma Emeline from the Fonds Régional Pour la Promotion de Santé du Centre – an organisation working in Cameroon to ensure patients are offered quality medication and health facilities – said the workshop would help her better market her products and medical advice, and learn how to engage more partners to reach more citizens.

Opening the bootcamp, Secretary General of Cameroon’s Ministry of Trade, Brusil Miranda Metou, said:

“To better leverage the benefit from e-commerce, you need to master its contours… The training that you will receive over the next three days will enable you to diversify your activities and facilitate your inclusion in the national, regional and international value chains.”

Ms Metou thanked the Commonwealth Secretariat and the International Islamic Trade Finance Corporation (ITFC) for organising the bootcamp, which, she said, would strengthen the role of women in the e-commerce process and development of Cameroon.

The bootcamp was part of a wider initiative of the Commonwealth Secretariat and the ITFC, which has been supporting the Government of Cameroon with technical assistance and capacity building on trade opportunities.

Under the initiative, the Secretariat and ITFC facilitated the development of an e-commerce strategy for Cameroon, produced a training manual on leveraging e-commerce capabilities and hosted two training sessions for women entrepreneurs in Cameroon. With this bootcamp, 100 entrepreneurs have been trained through the initiative, with the goal of training at least an additional 50 women.

Speaking at the bootcamp, Opeyemi Abebe, Head of the Commonwealth Secretariat’s Trade Competitiveness Section, said:

“To facilitate trade and e-commerce, our focus should not only be on developing modern digital infrastructure and restoring the financial systems but also on embracing skills development.

“The lack of knowledge of business management, marketing, finance and logistics particularly impedes the progress of women entrepreneurs. Bridging this gap will enable women entrepreneurs to succeed and grow their businesses exponentially and this is what we collectively aim to achieve through the bootcamp.”

Nasser Al-Thekair, General Manager of Trade and Business Development at ITFC, said:

“E-commerce is widely acknowledged as a significant instrument for innovation, competitiveness, job creation, and growth. This bootcamp will provide women entrepreneurs in Cameroon with a chance to broaden their horizons and enhance their involvement in the global e-commerce trade.”

Micro, small and medium-sized businesses constitute a significant percentage of Cameroon’s private sector. The contribution of these businesses to job creation and poverty reduction in Cameroon is substantial. Their impact on the economy could be significantly greater if these businesses are able to take full advantage of domestic and export market opportunities and participate in global supply chains through e-commerce.

The initiative’s goal is to make it easier for more Cameroonian entrepreneurs to expand their market reach and make their goods and services available globally. The entrepreneurs will leave the bootcamp with concrete skills and resources, including how to attract an international audience, navigate payment systems, advice on supply chain management and a mock-up for their website.

Source: The Commonwealth.org

10, May 2023

Biya regime keen to attract more Chinese investment at trade expo ⁰

Cameroon hopes to attract more Chinese investment when it takes part in the upcoming third China-Africa Economic and Trade Expo, said a Cameroonian trade official on Tuesday.

Joseph Mutomby Ndumbe, director of foreign trade at Cameroon’s Ministry of Trade, made the remarks during a promotional conference organized in the capital Yaounde to invite the Central African nation to participate in the expo to be held in China.

Cameroon hopes to export more to the Chinese market and attract more Chinese investors, Ndumbe told Xinhua at the close of the conference.

“We are going there (trade expo) to seek to have the possibility of having fruitful partnerships with Chinese companies that are ready to come to Cameroon,” he said, adding that the country will exhibit made-in-Cameroon products including Penja pepper, Oku White Honey, cocoa and coffee.

The expo, under the theme “Common development for a shared future,” will run from June 29 to July 2 in central China’s Hunan Province.

Yang Zhihua, deputy mayor of Yiyang, a city in Hunan, said at the conference that the province and Cameroon have vast space for cooperation in modern agricultural development and the construction of transport, energy and communication infrastructure.

“We wholeheartedly hope for the participation of the Cameroonian government, think tanks, enterprises, trade associations and financial institutions, with China-Africa Economic and Trade Expo as a platform,” Yang said.

Source: Xinhuanet

8, May 2023

Director of Timezone Marine Ventures says EU red card is pushing Cameroon toward China ⁰

A European Union ban on seafood from Cameroon is prompting local fleets to look toward China for investment, according to Edwin Ngwafor, who is the director of Timezone Marine Ventures, a Yaoundé-based firm with a permit for 40 vessels.

Ngwafor, who is also the deputy managing partner at a Cameroonian law firm, wants to attract a Chinese partner who can bring money and expertise to a joint venture project that would aim to sell species including barracuda, sole, tuna, and shrimp to local markets and abroad in Asia.

This comes as the E.U. in January 2023 designated Cameroon a “noncooperating country,” barring its fishery products from entering European markets because the country continues to register fishing vessels operating outside its waters without sufficiently monitoring their activities.

SeafoodSource spoke with Ngwafor about how Cameroonian fishing efforts aim to respond and adapt to the red card ban and what he personally aims to accomplish with his own fishing ventures.

SeafoodSource: Why do you seek new access to Asia? Would it not be better to fix the problems highlighted by the E.U. and retain access to that valuable market?

Ngwafor: The economic relationship between China and Africa is not a secret, and this is true across all sectors. China has played active roles in Africa in infrastructure projects, trade and commerce, telecommunications, defense, and security. Many fishing companies in Cameroon have focused on partnerships with China, especially following the unfortunate sanction meted out recently against Cameroon by the E.U.

Following the E.U. ban, local fishing companies in Cameroon have found the necessity to adapt and survive irrespective. They provide employment and sources of income to hundreds of thousands of people, and this is crucial for the local economy. Local companies believe the fostering and advancement of their partnerships with Asia in general, and China in particular, provide a viable commercial alternative which will, in turn, enable the realization of their business objectives.

This by no means implies that the Cameroonian government is resting on its laurels in the process to restore its credibility and relationship with the E.U. To address the problem, the [Cameroon] Ministry of Livestock, Fisheries and Animal Industries is collaborating with other organizations to launch a project entitled “Stop IUU [illegal, unregulated, unreported] fishing in Cameroon.”

The project is implemented in collaboration with other institutions, such as Global Fishing Watch and the Food and Agriculture Organization of the United Nations, along with Cameroon’s Ministry of Transport and the National Navy. There have also been several consultation meetings for the revision of the Cameroonian law on the governance of fishing and aquaculture and an inventory of the Cameroonian fishing fleet.

SeafoodSource: What is the opportunity for Chinese companies for fishing in Cameroon?

Ngwafor: There are wide-ranging opportunities in the sector for international fishing companies, including Chinese companies, especially given the fact that Cameroon continues to be unable to meet the nutritional needs in fishery products of the population, which are estimated at nearly 500,000 tons annually. Also, Cameroon is situated in a unique geographical location, which provides a varied diversity in fishery products and is favorable to quick export through the Douala Seaport, the main seaport in the CEMAC [Economic Community of Central African States] subregion.

Cameroon has a global reputation for the quality of its shrimp, which is highly prized in international markets. In addition to all these, there are several investment opportunities in niche areas, such as setting up industrial units for shrimp and fish, distribution chains, manufacturing fishing equipment, processing, and packaging units for fisheries products, as well as assembly plants for fishing vessels.

SeafoodSource: Are you worried about various controversies in Ghana and Senegal featuring Chinese fleets overfishing and illegally fishing?

Ngwafor: The court cases in Ghana are an example such as the cases in the Spanish courts in Europe. These cases are specific in their own facts. Our company is not discouraged by the events in Ghana, as we believe these are unique and not wholly reflective of the general ethos of Chinese fishing companies.

There are thousands of Chinese companies engaged in fisheries partnerships all over the world, and if a fraction of these are naughty, it must not taint the image of those who are ethically sound. Our company is open to do business with responsible partners, including Chinese companies, and commits to adhere to local and international requirements against IUU fishing as we seek to establish a strong and respected global reputation.

SeafoodSource: Don’t you think it would be far more valuable for you to catch and market the fish as a local firm rather than selling or renting licenses to a foreign investor?

Ngwafor: It will be …

Culled from SeafoodSource

1, May 2023

World Bank Group Launches Business Ready Project ⁰

The World Bank Group has begun work to assess the business and investment climate in up to 180 economies under its flagship Business Ready project—a key instrument of its new strategy to facilitate private investment, generate employment, and improve productivity to help countries accelerate development in inclusive and sustainable ways.

Business Ready improves upon and replaces the World Bank Group’s earlier Doing Business project. It reflects a more balanced and transparent approach toward evaluating a country’s business and investment climate—one that has been shaped by recommendations from experts from within and outside the World Bank Group, including governments, the private sector, and civil society organizations. The first annual Business Ready report, covering 54 economies, will be published in the Spring of 2024.

Today, the World Bank Group published two key documents: the Business Ready Manual and Guide, specifying the detailed protocols and safeguards it has put in place to ensure the integrity of the assessments; and the Business Ready Methodology Handbook, detailing the project’s indicators and scoring methodology. Data collection on the business environment of the initial 54 economies is being done through extensive consultations with regulatory experts and nationally representative World Bank Enterprise Surveys, collected by competitively selected survey companies.

“The World Bank Group is bringing back a fuller and sharper measure of the investment climate of countries—something that is badly needed in a global economy in the midst of a generalized slowdown,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President for Development Economics. “Governments that do more to make their economies business-ready will do better in reviving private investment, creating jobs, and quickening the transition to cleaner energy.”

The World Bank Group has long been a leader in spurring business-regulatory reforms across the world. Its assessments of the business-enabling environment worldwide helped spur nearly 4,000 regulatory reforms in developing and developed economies over the past two decades. They also significantly advanced academic research in this area, resulting in 4,000 peer-reviewed research papers and at least 10,000 working papers. Countries, moreover, often use these assessments to shape their development strategies.

“The ‘Business Ready’ project represents a new approach to assessing the business and investment climates,” said Norman Loayza, Director of the World Bank’s Indicators Group, which leads the project. “The ‘Business Ready’ approach aims to establish a better balance between the ease of conducting a business and the broader implications for society as a whole. It gives a more positive role for governments, advocating for better public services for businesses. In addition to experts’ assessments, it includes direct information from entrepreneurs and managers on their experience navigating the economy’s business environment.”

Business Ready focuses on 10 topics covering the lifecycle of a firm in the course of starting, operating, or closing or reorganizing its activities: Business Entry, Business Location, Utility Services, Labor, Financial Services, International Trade, Taxation, Dispute Resolution, Market Competition, and Business Insolvency. Over the next three years, the project will grow to cover about 180 economies worldwide annually, starting with 54 economies in 2023-24, 120 economies in 2024-25, and reaching 180 economies in 2025-26.

The project’s objective is reflected in its name—to make each country’s economic environment ready for a dynamic private sector. The name highlights the fact that economies exist in different stages of readiness, and that governments play a key role in creating a business environment that is conducive for sustainable development.

Transparency will be a key feature of Business Ready’s safeguards for data integrity. All information collected by the project—raw granular data, scores, as well as the calculations used to obtain the scores—will be made publicly available on the project website. Moreover, all results presented in the reports will be replicable using straightforward toolkits available on the website.

29, April 2023

CPDM Crime Syndicate: Public debt estimated at CFA12.203 billion over first three months of 2023 ⁰

The public debt of Cameroon was estimated at CFA12.203 billion over the first three months of 2023. Compared to the same period last year, the amount is up 5.2%, and now represents 43.7% of the country’s GDP, according to data published by the Autonomous Depreciation Fund (CAA).

This debt level remains bearable and in line with the government’s 2023-2025 strategy, which aims to keep it below 50% of GDP, the threshold for the CEMAC region being 70% of GDP. The large part of Cameroon’s outstanding public debt during the period under review was incurred by the central government. The outstanding direct debt of the central government grew by 5.6% YoY over the period to CFA11,314 billion, representing 40.5% of GDP.

“The direct debt of public enterprises and entities, at the end of March 2023, is estimated at CFA879 billion, or 3.1% of GDP. This amount is up 0.9% YoY, but down 1.1% MoM and 1.9% QoQ,” the CAA said.

At the same time, the outstanding debt of decentralized local authorities reached about CFA10.2 billion in Q1 2023. It was mainly driven by the Urban Community of Douala. “Work to evaluate this category of debt is ongoing, in collaboration with the Ministry of Finance and the Ministry of Decentralization and Local Development,” the Autonomous Depreciation Fund explained.

Source: Business in Cameroon

27, April 2023

World Bank says commodity prices to register sharpest drop since the pandemic ⁰

Global commodity prices are expected to decline this year at the fastest clip since the onset of the COVID-19 pandemic, clouding the growth prospects of almost two-thirds of developing economies that depend on commodity exports, according to the World Bank’s latest Commodity Markets Outlook report.

The drop in prices, however, is expected to bring little relief to the nearly 350 million people across the world who face food insecurity. Although food prices are expected to fall by 8% in 2023, they will be at the second-highest level since 1975. Moreover, as of February this year, annual food price inflation is at 20% globally, the highest level over the past two decades.

“The surge in food and energy prices after Russia’s invasion of Ukraine has largely passed due to slowing economic growth, a moderate winter, and reallocations in the commodity trade,” said Indermit Gill, the World Bank’s Chief Economist and Senior Vice President for Development Economics. “But this is of little comfort to consumers in many countries. In real terms, food prices will remain at one of the highest levels of the past five decades. Governments should avoid trade restrictions and protect their poorest citizens using targeted income-support programs rather than price controls.”

Overall, commodity prices are expected to fall by 21% in 2023 relative to last year. Energy prices are projected to decline by 26% this year. The price of Brent crude oil in U.S. dollars is expected to average $84 a barrel this year—down 16% from the 2022 average. European and U.S. natural-gas prices are forecast to halve between 2022 and 2023, while coal prices are expected to decrease 42% in 2023. Fertilizer prices are also projected to fall by 37% in 2023, which would mark the largest annual drop since 1974. However, fertilizer prices are still near their recent high last seen during the 2008-09 food crisis.

Ayhan Kose, the World Bank’s Deputy Chief Economist and Director of Prospects Group, said: “The decline in commodity prices over the past year has helped reduce global headline inflation. However, central bankers need to remain vigilant as a wide range of factors, including weaker-than-expected oil supply, a more commodity-intensive recovery in China, an intensification of geopolitical tensions, or unfavorable weather conditions, could push prices higher and reignite inflationary pressures.”

Despite the large declines expected this year, prices of all major commodity groups will remain well above their 2015-2019 average levels. European natural gas prices will hover at almost three times the average in 2015-19. Energy and coal prices will also remain above the pre-pandemic average.

“Metal prices, which increased slightly early in the year, are expected to fall by 8% relative to last year, primarily because of weak global demand and improved supplies,” said Valerie Mercer-Blackman, Lead Economist in the World Bank’s Prospects Group. “In the longer term, however, the energy transition could significantly lift the demand for some metals, notably lithium, copper, and nickel.”

A Special Focus section of the report evaluates the performance of a wide range of approaches used to forecast prices of seven industrial commodities (oil and six industrial metals). A key finding of the study is that futures prices, which are widely used for price forecasts, often lead to large forecast errors. Econometric models based on multiple independent variables tend to outperform other approaches as well as futures prices. The analysis suggests that augmenting model-based forecasting approaches—by incorporating the dynamics of commodity prices over time and controlling for other economic factors—enhances forecast accuracy.

27, April 2023

Marguerite Fonkwen Atanga is new director of CCA Bank ⁰

Marguerite Fonkwen Atanga became the new managing director of CCA Bank, a former microfinance institution that obtained its banking license in 2018. Her appointment to replace Alexis Megudjou was announced at the end of the board meeting held last April 24 in Yaoundé.

Before she became the new CCA Bank’s head, Marguerite Fonkwen Atanga was the deputy executive director of the local subsidiary of the Nigerian banking group UBA. She was promoted to this position in 2018 when she was UBA Cameroon’s Director of Retail & Transaction Banking. The newly appointed director thus becomes the second woman to hold this position within CCA. The first was Charlotte Chekep Kouecheu, who was replaced in April 2020 by Alexis Megudjou.

Marguerite Fonkwen Atanga will be assisted in her new position by Ibrahim Oumarou Sanda, the deputy executive. The latter was also part of the UBA team.

Source: Business in Cameroon