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BUSINESS IN

MAJOR PROJECTS
AGRICULTURE

CAMEROON
ENERGY
MINING
October 2017 - N° 56

INDUSTRY
SERVICES
FINANCE

The battle
of mineral
waters in
Cameroon
J. J. Aouda, an expertise in French firm Casino to open
the railway industry that 20 stores in Cameroon
goes beyond borders

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3

Yasmine Bahri-Domon

All united for development

T
he 66th edition of your ties and the fight against Boko Haram
Business in Cameroon in the North. As one may notice,
magazine is released in a despite swimming in quite tumultuous
particular context marked waters, the country remains afloat.
by the significant “Anglophone” crisis.
The “dead cities” (villes mortes) weekly Talking of waters, it is the theme of this
operations launched some months edition’s dossier. Markets in this sector
ago in the North Western and South are highly dynamic. Indeed, a rude
Western regions have led to the global competition is recorded in the profita-
slowdown of commercial activities and ble, and booming, sector which is that
trade with Nigeria. Losses are signif- of mineral waters. The liquid which is
icant for banks, businesses, artisans, extracted from the water tables and
and all those selling and buying on the volcanic rocks of Mount Cameroon,
two sides of the border. The economic makes more than one investor happy.
impacts of this crisis are obvious. As a result, consumers now have great
Review will surely show slumping access to mineral water whose prices
curves. Regardless, Cameroon moves are extremely competitive. Truly, on
on with its many projects and keeps the stalls of many stores and super-
tackling economic challenges as it markets are laid different types and
seeks to achieve a growth rate of more brands of the product. Mineral water’s
than 5.6% in 2018. consumption is continually growing as
statistics can attest. In 2016, volume of
Works are ongoing and structuring mineral water consumed in Cameroon
projects respect the schedules fixed stood at 2.2 million hectoliters, nearly
in 2011. A won bet! Power outages are a third more of the volume recorded in
decreasing with more hydropower 2015.
dams coming online while the second
bridge of the Wouri River was just par- Once considered as a luxurious
tially opened to traffic, this month of product imported exclusively from
October 2017, to the great satisfaction Europe, mineral water nowadays is
of the people of the economic capital sold everywhere in Cameroon, both in
and its surroundings. urban and rural areas. This shows that
despite economic, political and secu-
Credible, Cameroon pursues negotia- rity challenges, Cameroon is building
tions with the International Monetary itself and each and every one can feel it
Fund (IMF) to better cushion the im- in its daily life.
pact of the drop in prices of commodi-

N° 56 / October 2017 BUSINESS IN CAMEROON


4

CONTENTS
FOCUS INTERVIEW

08 • C ameroon drinks a big cup of mineral water 12 • J ean Joseph Aouda: “Cameroon can boast of
09 • S ource Tangui swims in troubled waters having the best experts there can be in the sub-
region, in the railway sector”
09 • S upermont: A new and hungry leader
10 • O
 pur, a strategic investment Source
du Pays BUSINESS IN CAMEROON
10 • A new brand… “Vitale” for Brasseries du Publisher
Stratline Limited
Cameroun
Publication Director
11 • V olcanic, Semme, Madiba and Pura drowned by Yasmine BAHRI-DOMON
competition Contributors
Brice R. MBODIAM, Sylvain ANDZONGO, Idriss LINGE.
11 • Imported products not much popular
Operator
Médiamania Sàrl
LEADER OF THE MONTH www.mediamania.pro
Design : Jérémie FLAUX, Web : Christian ZANARDI,
Translation : Schadrac AKINOCHO, Bérénice BAH

Advertisement
regiepub@investiraucameroun.com
In Cameroon
Albert MASSIMB, almassimb@yahoo.fr
Tel : 00 237 694 66 94 59

Printing
Rotimpres, Aiguaviva, Espagne

Circulation
Albert MASSIMB, almassimb@yahoo.fr
Tel : 00 237 694 66 94 59

Free – cannot be sold


34 • T o protect the environment, Ismaël Essome
makes pirogues with recycled plastic bottles www.businessincameroon.com - info@businessincameroon.com

BUSINESS IN CAMEROON N° 56 / October 2017


5

NEWS IN BRIEF

PUBLIC MANAGEMENT P 18-20 INDUSTRY P 29

FINANCE P 21-23 MINING P 30

AGRIBUSINESS P 24-26 ITC & TELECOM P 31-32

TRANSPORTATION P 27-28 SERVICES P 33

N° 56 / October 2017 BUSINESS IN CAMEROON


6

THE CAST
PIERRE
MOUKOKO
MBONJO
The former Cameroonian minister of foreign affairs (2011-
2015), Pierre Moukoko Mbonjo, was just appointed as the
Head of the African Union’s newly formed Institutional
Reforms Unit, official sources revealed. Professor at the
Institute of Foreign Affairs of Cameroon (IRIC), Pierre
Moukoko Mbonjo was also minister of communication
(2004-2006) and Director of Cabinet of the Prime Minister
(1996-2004).
Author of multiple articles, the newly appointed Head
holds a PhD in political sciences from the University of
Paris Pantheon I Sorbonne, as well as a Master of Advanced
Studies in economic sciences, with a specialization in eco-
nomic development.

VINCENT
BOLLORÉ

In a statement officially released on September 5, 2017, the


Bolloré Group, who is owned by French industrialist Vincent
Bolloré, denied taking over rights of the French logistics
firm Necotrans in the Kribi deep water port’s multipurpose
container terminal, which is yet to be commissioned, in
Southern Cameroon.
“Contrarily to what is said here and there, Necotrans’ shares
in Kribi’s container terminal were not taken over by Bolloré
Transport & Logistics,” reads the statement which however
confirms the takeover of “Necotrans’ minority shares” in the
Douala International Terminal (DIT), concessionaire of the
container terminal of the Douala port.

BUSINESS IN CAMEROON N° 56 / October 2017


7

PROTAIS ALAMINE
AYANGMA OUSMANE MEY

On September 19, 2017, Yaoundé, Cameroon’s capital city, Under the fiscal law in place, “tax stamps are exclusively sold
hosted an investment and trade forum which regrouped in tax offices, fiscal management offices, stamps revenues of-
60 business leaders from China, and many Cameroonian fices, general treasuries, pensions and revenue offices”. This
economic operators, including 80 who showcased their was revealed in a statement released by Cameroon’s minis-
projects to their Chinese guests, the event’s organizers ter of finances, Alamine Ousmane Mey.
said. The official’s announcement comes in a context where
The forum, according to Cameroon’s business leaders’ complaints from candidates to various civil service exami-
association which is led by Protais Ayangma, was held nations are resurging as their application’s documents are
ahead of the Cameroonian Economic, Industrial and rejected at submission, due to the use of fake tax stamps.
Commercial Days in China, which are to finally take place
from December 1 to 5, 2017 (They were to initially be held
on October 9-15, 2017, in Beijing).

MARTHE AUGUSTE
ANGELINE MBAPPÉ PENDA
MINDJA
On November 9 and 10, 2017, the Investment Promotion “Procedures and formalities for the clearance of import-ex-
Agency of Cameroon (API) will organize in Douala, the port goods in Cameroon’s ports”. That was the theme of the
country’s economic capital, the second edition of the capacity-building seminar which the National Council of
Cameroon Investment Forum (CIF). This was announced by Shippers of Cameroon (CNCC) just organized targeting
Marthe Angeline Mindja, Managing Director of API, during public authorities.
a press conference held in Yaoundé. The seminar aimed to sensitize the public administration’s
Around 300 Cameroonian, American and European compa- authorities about the need to respect deadlines set to clear
nies, are expected to attend the event and at the occasion, their goods at the Douala port, to avoid clogging at the in-
“Accent will be put on the new private investment incentive frastructure. Truly, says CNCC’s Director General, Auguste
framework in Cameroon, which exempts firms of customs and Mbappé Penda, “Statistics clearly indicate that many of the
fiscal taxes for 15 years, divided into 10 years corresponding containers stationed at the port over a prolonged period be-
to their installation and 5 years during the production stage,” long to various ministries”.
the MD stressed.

N° 56 / October 2017 BUSINESS IN CAMEROON


8 FOCUS

Cameroon drinks
a big cup of
mineral water
11.8% that year, total sales of mineral
water products in the country have
soared by 32.6% in 2016, reaching 2.2
million hectoliters.
This was due to the arrival of new op-
erators, competing with SEMC. Since
the latter held the monopole for
many years, mineral water products,
regardless of their producers, were
often called by the name of the brand
used by SEMC.
To change the trend, the newcomers,
despite being foretold a not-so-bright
future by analysts who based their
conclusions on previous experiences,
brought changes to the existent
economic model, leveraged on an
aggressive marketing. The innova-
tion, resulted, in less than 10 years, in
the decrease by more than 50% of the
price of bottled mineral water, from
CFA500 to CFA220 only now.
A great deal which Cameroon’s
populations rejoiced over as, it
should be noted, the country’s access
to drinking water is officially below
40%. Well, as the prices became more
affordable, Cameroonians in cities
In Cameroon, if there is a sector many firms operating in the sector. and in some remote areas even can
that is, like the telecommunications In fact, according to statistics now compensate the shortcomings
or cement, on the upward slope, from official financial reports of of the national water utility with
it is surely that of mineral water. Brasseries du Cameroon (Cameroon’s mineral water bottles.
Truly, the product which was once Breweries), whose unit in charge of Truly, a 1.5L bottle of mineral water is
considered as luxurious by many, mineral water production (Société sold cheaper than a kg of rice (which
has since the beginning of the 2010s des Eaux Minerales du Cameroon – is sold at FCFA300-FCFA400), which
significantly been democratized. This SEMC) has monopolized the market is the most consumed food product
is mainly to be attributed to a rude for decades, the drink’s consumption in Cameroon.
competition in this market, mostly level ceases not to grow since 2013. Brice R. Mbodiam
spurred by innovations driven by Indeed, after recording a growth of

BUSINESS IN CAMEROON N° 56 / October 2017


FOCUS 9

Source Tangui swims in troubled


waters Société Anonyme des Brasseries subsequently reducing their profit
du Cameroon (SABC), was just margins, including that of the mar-
dethroned by the Supermont brand, ket’s former leader.
which is produced by Source du Pays. Truly, with Supermont’s back in the
“With Supermont, Source du Pays has game, Societe des Eaux Minerales du
officially become the country’s leading Cameroon ended 2012 with a deficit
mineral water producer. Supermont of FCFA50 million which widened at
represents around 52% of the market the end of 2013, reaching FCFA319
shares against 36% for SABC,” Castel’s million, according to financial
Cameroonian subsidiary disclosed in reports of Brasseries du Cameroon,
its 2016 yearly report. parent company of SEMC.
Indeed, though it had disappeared However, in 2014, SEMC which is the
from the Cameroonian market for least performant DSX-listed com-
some years, the Supermont mineral pany was able to make profits again
water returned with a strategy ending the year with a net result of
which consisted in democratizing FCFA261.9 million; but still losing
After reigning on Cameroon’s miner- the product in the country, selling a significant market shares.
al water market for decades, Source 10L container for CFA1500 while six
Tangui, product of Société des Eaux traditional bottles of 1.5L were sold
Minerales du Cameroon (SEMC) for FCFA2400.
which is listed on the Douala stock This strategy was adopted by other
market (DSX) and controlled by the producers, pulling prices down and

Supermont:
A new and
hungry
leader
As it increased its investments in the
country and kept offering its products
at more and more affordable prices,
Source du Pays (SP) reinforced its
position in Cameroon’s mineral water
market in 2016, with its Supermont
brand.
Amongst its investments, it has that
year acquired Nabco, the firm which
used to manufacture the Opur miner-
al water brand.
Following this, SP snatched from
SEMC its crown, having 58% of the
country’s market shares, 6% of which As it increased its investments in the country and kept offering its products at more and more
were previously held by Nabco, reads affordable prices, Source du Pays (SP) reinforced its position in Cameroon’s mineral water market
in 2016, with its Supermont brand.
Brasseries du Cameroon’s 2016 report.

N° 56 / October 2017 BUSINESS IN CAMEROON


10 FOCUS

Opur, a strategic investment Source


du Pays
Since the beginning of 2016, love for their team. This, paired
a new product has entered with its relatively low prices,
Cameroon’s mineral water would allow Opur, in less than
market. Named Opur, it was a year of activity, to officially
produced by the Nana Bouba grab 6% of the country’s miner-
Company (Nabco), which al water market’s shares.
is owned by Cameroonian A feat which apparently did not
billionaire Nana Bouba. convince Nana Bouba much as
As Nabco entered this sector, the billionaire decided to sell
competition for market shares the producing firm to Source
got ruder. Truly, the new du Pays(which produces the
product quickly announced its Supermont water mineral).
ambitions, becoming even the The move fell under a strategy
official sponsor of Cameroon’s aiming to redirect the Nana
senior national football team, Bouba Group’s activities back
the Indomitable Lions. to its initial line of business,
This considerably increased the knowingly mass retail (via
product’s visibility, a phenome- Soacam) and agribussiness
non spurred by Cameroonians’ (Azur, Sagri, etc.).

A new brand… “Vitale” for Brasseries


du Cameroun
Despite the slump of its performanc-
es in the mineral water sector, which
is paradoxical to its sales (which
grew by 32.6% from 2015 to 2016,
according to the above-mentioned
report), Brasseries du Cameroun, via
SEMC, intends to recover its crown.
Truly, the firm announced in its
annual report for 2016 that it
plans this year to increase its sales
more (+32.1%), “by restructuring its
distribution system and adopting an
harmonious price policy and product
segmentation”.
For some days now, we have learned new, cheap, mineral water brand. which cost between 350 CFA and 400
a bit more on the strategy adopted by The name of this brand is Vitale, and CFA a bottle, and between 1500 CFA
the company which is controlled by the product’s 1.5L bottle is sold for and 1600 CFA for a pack of six.
the Castel group, to achieve its sales FCFA220, officially. For the six bottles By leveraging on prices, SEMC thus
objectives in 2017, and reposition pack, it costs FCFA1300. These prices re-enters the battle, armed with the
itself in the local mineral water mar- make Vitale more competitive than weapons that its rivals have been us-
ket, amid an extremely rude competi- its sister-product, Source Tangui, or ing for some years to steal the crown
tion. Truly, the SEMC just launched a even its rivals, Supermont and Opur, which it once wore incontestably.

BUSINESS IN CAMEROON N° 56 / October 2017


FOCUS 11

Volcanic, Semme, Madiba and Pura


drowned by competition
It seems that the theory of the Semme Mineral Water
natural selection is applied in the South Western region
in Cameroon’s mineral water collapsed, as a result of a
market. Indeed, far is the time power surge in the electrical
when the country had no less network. Yet, in July 2017,
than ten mineral water brands the product’s promoter
circulating around. One of announced a comeback of the
these, Semme, which was brand in the local market.
produced by Semme Mineral After contributing to the
Water, firm established by flooding of the Cameroonian
businessman Semme Nougon, market, other local brands
had in fact, over some years, became quite discrete, almost
competed well with Source extinct actually. This is the
Tangui and Supermont. case of Madiba, a product
However, after trying to launched by the Cameroonian
purchase Pura, another local Breweries Union, only brew-
brand which was buried by ery in the country to be con-
the competition, the Semme trolled by nationals. The same
brand finally disappeared goes for Volcanic, a mineral
from stores in 2013, officially water extracted on the sides
after the production unit of of Mount Cameroon.

Imported products not much popular


With an extraverted consumption,
Cameroon is a big importer of basic
products. However, this reputation
does not concern two products which
are: coffee, with some local roasters
rivalling with Nestlé’s famous Nescafé
brand; and mineral water, as imported
bottles have not much success in the
country.
Truly, though they can be seen in some
supermarkets, mineral water prod-
ucts such as Contrex, Evian, Perrier,
Cristallin, Volvic, Badoit, St Yorre,
Vittel, amongst others, are much of a
Tom Thumb, in the Cameroonian mar-
ket where local brands reign as giants.
A situation which can be explained by
the expensive prices of the first, which
are now even ignored by the expatri-
ates, many of whom tend to prefer
local products, namely Source Tangui Though they can be seen in some supermarkets, mineral water products such as Contrex, Evian,
Perrier, Cristallin,Volvic, Badoit, St Yorre,Vittel, amongst others, in the Cameroonian market where
and Supermont, the two leading local brands reign as giants.
brands.

N° 56 / October 2017 BUSINESS IN CAMEROON


12 INTERVIEW

Jean Joseph Aouda:


“Cameroon can boast
of having the best
experts there can be
in the sub-region, in
the railway sector”
In this interview, the chief executive of BEACOP,
one of the only Cameroonian firms providing
railway engineering services gives an overview of
the railway industry in his country, as well as some
advices regarding the announced establishment of
a company which will insure the management of
Cameroon’s railway infrastructures.

BUSINESS IN CAMEROON N° 56 / October 2017


INTERVIEW 13

Business in Cameroon: You were


one of the kingpins of the West
African rail loop. How did you land
on this major project developed by
the Bolloré group?
Jean Joseph Aouda: When the Bolloré
group decided to build the rail
loop, its realization was trusted to
Camrail (Cameroon Railways). As a
result, a delegation comprised of the
Managing Director, the Director of
major projects and the Director of
fixed installations visited the site of
construction of the demonstrator (a
500m-long straight line). Given that I
was at the time the director of fixed
installations (in charge of mainte-
nance and rehabilitation of railway
infrastructures), I had the privilege to
be part of this delegation.
My office had been tasked with devel-
oping the project on-field. I there-
fore chose the best Cameroonian
collaborators as chiefs of teams to
carry out the works. Considering the
task at hand, I personally monitored
works on-field. The day before the
commissioning of the demonstra-
tor, I was invited to a work session
with the Group’s President, Vincent
Bolloré himself, before meeting the
President of Niger. It was the first
time, for me, to work directly with
the great Vincent Bolloré, and this
lasted an hour. I had the chance to
prove that I was the right man for the
job. It was a turning point for me and
my Cameroonian peers working on
the project.

BC: Can you tell us a bit about your


experience on the project?
JJA: First, I would like to thank the Jean Joseph Aouda, chief executive of BEACOP: “What we experienced on this project was amazing,
considering that we were the pioneers of the conception and realization of an infrastructure as gigantic as
Bolloré group, without which I would the West African rail loop.”
not have become a railway expert.
Indeed, throughout my career, I have
always been given the opportunity to
showcase my skills. At all the various and realization of an infrastructure concessions that it operates: Camrail
positions I held, I achieved great as gigantic as the West African rail and Sitarail. Therefore, we had to
results, this in a quite sensible sector loop. The Bolloré group had a goal: to insure that this project was a success.
of activity. put forward the railway expertise of One of the biggest challenges and
What we experienced on this project Africans, and their capacity to handle not the least, was to build the railway
was amazing, considering that we such a major project, trusting people while training 1200 Niger nationals
were the pioneers of the conception who were active on the two railway to the job as they composed the

N° 56 / October 2017 BUSINESS IN CAMEROON


14 INTERVIEW

most part of the staff working on was structuring his firm, and the at Beacop simply means that we
the project. We had to deal with a treasury’s difficulties at the time, train our reactiveness in such a way
harsh weather, on a part, and also to M. Bouba offered to sell his shares that it integrates our action strategy
the mentality of workers which was to me. Once again, I agreed to his in the medium and long terms. We
completely different from ours, in offer. respect our commitments, and our
terms of religion and culture, at least, Given my expertise on the railway schedules. Our vision dictates the
on another part. sector, it was obvious that we put direction we must maintain and help
Last, I would like to recall the words the accent on the innovative domain us redirect ourselves when needed.
of an 80-year old man who defied which railway engineering repre- We are not mere observers, we are
Niger’s presidential guard, just to lay sented in Cameroon. It is true that actors. We therefore do not suffer
his hands on the rail, which he did in for now, the monopole of this sector the pressure of emergencies and
tears. They were: “I have waited sev- is held by foreign companies, but we reduce causes for stress, and this
enty years for this dream to come true. believe we are a reliable and valuable contributes to the improvement of
The best part of it is that it was done local partner. the well-being of our collaborators
by one of my black sons. I can rest in on a daily basis.
peace now. Shoot me now if you want”. BC: What assets does Beacop, the Another strong argument is mul-
I can assure you that such emotional firm you head, has and can lever- ti-disciplinarity. At Beacop, we
experiences do not happen many age on to compete with its foreign promote transversal skills within the
times in a lifetime. rivals, as they have grabbed almost group, in addition to the knowledge
all railway contracts in Africa over of the profession and the sector of
BC: How did you come up with the many decades ? activity of each expert. The multi-dis-
idea to start a company that spe- JJA: Our first asset, like any compet- ciplinarity concerned here refers to
cializes in railway engineering, a itive company, is the skills of our the liberalization of various fields
sector which up till now was solely men in terms railway expertise. We of expertise. Joint specialties, while
covered by foreign firms ? think it would be great for projects’ maintaining their respective spe-
JJA: I dislike routine, and all my promoters or clients to include in cificities, contribute to a collective
project, by providing their knowledge
and methods. They collaborate and
“It should be recalled that Cameroon’s exchange with each other, to respond
to the needs for action and compre-
railway was laid at the colonial period, hension. Often, the merging of com-
mon work gives birth to a complexity
and its most recent section is more that goes beyond disciplinary frame-
than 30-years old.” works and involves the reinforcing
and/or integration of common skills
(transversal) to associated disci-
former hierarchic superiors were their contracts a clause forcing plines. It is thus the occasion to use
well aware of this. It is the reason foreign companies to partner with each of these specialties’ specificities
why I believe that holding the same local firms, to share their skills and to achieve common goal (transversal
position for more than three years expertise with nationals. In addition skills).
is unproductive. Starting my own to our first asset, we have five criteria Pragmatism is also a key criteria. The
company had always haunted me that define us: projects we pilot or support always
for years. This was actually why I Beacop favors professionalism, as it respect three major pillars of sus-
enrolled at the France Business hires permanent qualified staff and tainable development: the economy,
School to offer an MBA. This course experienced consultants. We have the society and the environment.
has reinforced my will to start a the pretention to develop a qualified To these we always add a dose of
business. work environment and work towards realism. Thus, for each of its projects,
When I returned to Cameroon, constant improvement. For Beacop, Beacop gets rid of useless complexity
and saw that the project had been professionalism includes many fun- with the intent to be as clear and op-
suspended, I was approached by damental duties to which are associ- erational as possible, in all situations,
Beacop’s initial promoter, M. Bouba, ated four major values: responsibility, to avoid hampering your activity. We
to boost his firm. I agreed to this, competence, social engagement and favor the rapid result approach, to
while waiting to launch my own the sense of ethics. break away from old practices.
company which I would name JJ At Beacop, we also prioritize proac- Finally, there is flexibility. Beacop is
Consulting. However, somewhere tivity, through continuous listening equipped with a capacity to adapt
on the way, looking at the way I and solution seeking. To be proactive that helps it train small teams in

BUSINESS IN CAMEROON N° 56 / October 2017


16 INTERVIEW

Jean Joseph Aouda, chief executive of BEACOP: “One of the biggest challenges and not the least, was to build the railway while training 1200 Niger nationals to
the job as they composed the most part of the staff working on the project”.

strong technical skills in order to there is a real need in Cameroon and skills transfer via “learning by
rapidly respond to the needs and and the sub-region. We can affirm doing” in the framework of the West
expectations of its clients. The firm with certitude that, for now, Beacop African rail loop project; monitoring
has a cross-disciplinary experience has the best railway experts there construction works of a new road
that enables it assist its clients, are in Cameroon. You know, railway between Niamey and Dosso (150km)
businesses or individuals, in regards expertise is so limited that, all of us in Niger; monitoring of rehabilitation
to issues falling under its domains of operating in the area, in sub-Saharan works of the Lomé-Cacayély railway
expertise. Based on the project’s im- Africa, know each other, almost all. and reinforcement of Cacayély-Tsévié
portance, we activate our partners’ To our humble knowledge of African railway, in Togo (35km); management
network. We have succeeded in cre- railway networks, Cameroon can of two reinforced concrete sleep-
ating a strong network regrouping boast of having the best experts ers manufacturing units in Niger;
partners that are highly skilled in there can be in the sub-region, in the analysis of 700 hydraulic infrastruc-
their respective domains of activity. railway sector. tures along Camrail’s network; and
conduction, under outsourcing, of
BC: Besides Beacop, are they in BC: To date, what are Beacop’s feasibility studies and APS of railway
Cameroon and Central Africa in references ? along Douala-Limbé and Edéa-Kribi
general other companies con- JJA: Talking about references for such axes.
trolled by nationals, providing a young company would be preten-
railway engineering services? tious. However, we can modestly BC: Railway professions are quite
JJA: We have positioned ourselves list among some of our achieve- particular. How are you able to
in the sector because we believe ments providing technical support get staff in an environment where

BUSINESS IN CAMEROON N° 56 / October 2017


INTERVIEW 17

there is almost no school or and control of the concessionaire’s more than 30-years old. All the sec-
training centres teaching those activities. This development will offer tions which have not been rehabili-
professions? great opportunities, in regards to the tated pose many maintenance issues
JJA: Our experts are mainly former steering of great projects particularly. to the concessionaire. Materials used
veteran railroad workers, whose The fact is that there is an issue of are scarce, close to inexistent.
expertise constantly needs to be responsibility and legibility when Regarding the railway, the introduc-
expressed. In the framework our for- the concessionaire happens to be tion of reinforced concrete sleepers
ward career planning, we have sent both the delegate project manager remains the most determining
two young civil engineers to train in and delegate project developer. The innovation in the maintenance of
order to boost their knowledge in creation of such a structure would at Cameroon’s rail network. However,
terms of management, maintenance least help tackle this issue con- there is still room for moderniza-
and repair of railway infrastructures. cerning the concession’s technical tion. The Western line (Douala-
We have among our consultants supervision. Kumba) must be rehabilitated,
experienced railroad workers and We also think that the most impor- and the populations occupying
youth that we personally train. tant is not only to create a company the railway’s right-of-ways must be
Effectively, one of our major actual that will manage infrastructures, but displaced. Concerning the Transcam
concerns is the vulgarization of rail- rather insure that skilled personnel (Douala-Ngaoundéré), the Pangar-
way professions in Cameroon. We are and experts are the pumping heart Ngaoundéré section is a worrying
working on this with some former of this entity. The government is state. Its rehabilitation is needed
railway-worker colleagues and with yet to give information regarding urgently, this after rehabilitating the
the support of professional trainers the responsibilities associated 175 km (between Batchenga and
and external partners we plan to with the term “management of Ka’a and the Douala and Yaoundé
open a worthy of the name training infrastructures”. entries).
center for these professions. This vul- This upcoming entity should in no As for signaling and telecommu-
garization is compulsory as the suc- way hamper the operations of the nication, the management system
cess of the national masterplan for concessionaire. The foundations on Transcam 1 (Douala-Yaoundé),
railways depends on it, if Cameroon of such a structure’s organization inherited from the ex-Regifercam) is
does not want to repeat the experi- should be trusted to an expert obsolete and must be modernized.
ence of the Chad-Cameroon pipeline consultant, so that challenges related Transcam 2, to date, has no tele-
project and wishes to have available to railways operations are taken into phonic access. Cameroon’s railway
local personnel for these jobs. We account when setting it up, on a management system should meet
hope that when the time comes, we part, and government’s expectations global standards for railway security.
can count on the government’s sup- also, on another. It is necessary to At present, the most appropriate
port to go through with our project. clearly define the responsibilities of railway management system is the
the licensor and the concessionaire, European Rail Traffic Management
BC: In Cameroon, many have been as well as the exact field of actions System (ERTMC). It establishes
talking of the creation of a firm corresponding to the infrastructures’ a direct connection between the
specialized in the management of management. driver and the control station which
railway infrastructures. What are monitors the whole railway traffic.
your views regarding this matter? BC: What is your overall opinion This type of communication system
JJA: Infrastructures are the inalien- of the Cameroonian railway would be most useful in Cameroon.
able property of the State which is network? Modernization will necessarily
their licensor. The latter, initially, JJA: The concessionaire focused on requires a technological upgrade of
trusts the task of managing railway improving technical and commer- telecommunication systems.
infrastructures to the concessionaire. cial standards compared to those Concerning engineering and
It thus comes to the State to decide inherited from ex-Regifercam. Given hydraulic structures, constant effort
when and to whom it wishes to the advanced age of infrastructures for maintenance and rehabilitation
transfer these responsibilities. It is and traffic density over the past 15 is made by the concessionaire in this
nothing new, not in relation to the years, this was necessary to maintain regard. However, it is still important
concession of railways in general, nor an acceptable performance for the to provide agents with appropriate
in that of concessions in Cameroon. whole network. Massive investments equipment, such as handcars, to
The Head of State has instructed the are required to pursue moderniza- enable them efficiently inspect highly
government to establish an infra- tion which has already begun. sensitive structures.
structures management company. It should be recalled that Cameroon’s
It is obvious that doing so, the railway was laid at the colonial Interview with
government aims to better monitor period, and its most recent section is Brice R. Mbodiam

N° 56 / October 2017 BUSINESS IN CAMEROON


18

PUBLIC MANAGEMENT
At last, the 500,000 laptops promised by
President Paul Biya will be released in
November 2017, officials reveal
The release of the first batch of
the 500,000 laptops, promised by
President Paul Biya in 2016, will take
place in November 2017, while it was
announced for December. This was
made clear during the extraordinary
government council held in Yaoundé
on September 19.
Jacques Fame Ndongo, the minis-
ter of higher education, after this
government council, said that this
first batch comprises 80,000 laptops
manufactured by Sichuan Telecom
Construction and Engineering Co.
Ltd. The official also reminded that
manufacturing of the remaining
laptops still continues in Shenzhen, gramme, the “e-national higher Plan) which aimed to provide a
China. Apart from the students of the education” convention, was signed laptop to every student registered
2016-2017 academic term initially on Feb. 10, 2016, between the minis- in a public or private college in
which were to benefit from the pro- try of higher education and Sichuan Cameroon. The initiative was entitled
gramme, those of the 2017-2018 term Telecom Construction Engineering “un étudiant un ordinateur” (A stu-
will receive the laptops as well.  Co. Ltd, in line with President Biya’s dent, a laptop).  
Agreement for the current pro- “Plan Special Jeunes” (Special Youth

CFA1 billion premium awarded to


20 municipalities in Cameroon for their
performance
The national participative develop- ipative development plan of Pndp, The programme has been imple-
ment plan (Pndp), led by the ministry received a check of CFA50 million mented in 3 phases of 4 years each.
of economy, recently revealed the each. The rewarding ceremony was The first phase of this governmental
names of the 20 communities nom- held on September 18, 2017. program was implemented in six
inated by its “performance” branch The Pndp aims at equipping com- districts. The second phase extended
which rewards the most performing munities with basic infrastructure the program to all the districts (10),
communities in Cameroon. (borehole, markets, toilets, road covering all the 329 communities
These communities, which distin- maintenance…), strengthen the with an overall budget of CFA68.26
guished themselves through their potential of operators and roll out billion. A loan agreement, signed
budget management, governance land-planning schemes by involving on February 3, 2016, with the World
system and adoption of the partic- the beneficiary populations. Bank facilitated the 3rd phase.

BUSINESS IN CAMEROON N° 56 / October 2017


PUBLIC MANAGEMENT 19

Great Britain acknowledges 1961 referendum


in Cameroon and dismisses SCNC request for
independence
We know a bit more about the “With regard to the initiative from Mr. Commission in Yaoundé, before
reasons for the flat refusal handed, Sam Egbe on the independence, it is adopting his position. “Our High
on 8 September 2017, by the Queen important to highlight that, firstly, the Commissioner in Yaoundé is following
Elisabeth II of England, to represent- United Kingdom recognises the results the situation closely in the North-West
atives of the secession movement de- of the referendum organised in 1961 by and South-West regions of Cameroon.
manding the partition of Cameroon. the United Nations in territories under We will continue to do so with the
Indeed, they were not received at the British rule in Africa. The two regions Cameroonian government. The British
Buckingham palace, as desired. which make up Southern Cameroon High Commissioner met with the
The fact is that, since the social agreed to become a part of franco- President of the Republic on 7 March,
protest movements started, later phone Cameroon”, recalls Tobias and I have discussed with the Minister
leading to secessionist demands in Ellwood. of Foreign Relations, Mr. Mbella, on 19
the Anglophone regions of Cameroon He continues: “in 2003, the Southern April 2017, to talk about the tensions
in 2016, Great Britain has taken a Cameroon National Council (SCNC) in the South-West and North-West
stance on this situation, after several failed in its claims for independence, regions”.
discussions with the Cameroonian in front of the African Commission During these different discussions
authorities. on Human and People’s rights. This with the Cameroonian authorities,
This is at least what revealed an petition was rejected in 2009 by the highlights Tobias Ellwood, “we called
official correspondence from the Commission, who called for positive for the end of the use of force by the
Foreign & Commonwealth Office, dialogue between the parties. The different protagonists, the obligation
signed on 2 May 2017 by Tobias United Kingdom encourages all parties of respecting human rights standards,
Ellwood, in charge of relations with to accept and work from this recom- and the use of legal means to solve
Africa and the Middle East. The letter mendation, to build a stable and pros- this crisis. We also called for a return
is addressed to a member of the perous future for all Cameroonians”. to normal in the dialogue in the two
House of Commons (J. Cunningham), But, before this rather sententious regions”.
the lower house in the Parliament of conclusion, Tobias Ellwood recalled
the United Kingdom. the steps taken by the British High

Central African rebels cause insecurity to rise


in Eastern Cameroon
Some armed men who are thought to
be Central African rebels descended
once again in Cameroonian terri-
tory on September 23, 2017. They
kidnapped seven people in Koya,
a village in the district of Kette in
the eastern region, we learned from
relevant sources.
A military operation carried by
Cameroonian security forces
however helped retrieve four of the
hostages. Unfortunately, the remain-
ing three were killed before the forces curred on September 11, 58km from François Bozizé regime in Central
led the mission. Yokadouma. During that raid, the Africa which led to political insta-
This is the second raid by Central rebels burnt a car of the forestry bilities, Central African rebels skim
African rebels in eastern Cameroon company of Cameroon (CFC). the eastern regions of Cameroon
within two weeks. The first oc- As a reminder, since the fall of kidnapping villagers for ransom.

N° 56 / October 2017 BUSINESS IN CAMEROON


20 PUBLIC MANAGEMENT

Cameroonian employers’ association tells


Mitsuhiro Furusawa its opinion on IMF’s new
economic strategy for the country
The Cameroonian employers’ associ- ration. “Even after it was ratified, expressed its incomprehension and
ation is not pleased with IMF’s strat- communication on the programme vivid apprehension regarding the
egy for Cameroon recently revealed was dilettante, vague and difficult to fact that the Cameroonian admin-
by the institution’s Deputy Managing understand,” MECAM’s president istration is already implementing
Director, Mitsuhiro Furusawa, who complained. some of the measures set out in
visited the country on September 14- Cameroon’s employers’ association IMF’s new programme. These include
15. This is reported by Daniel Claude also said it deplores the lean finan- companies’ transfers abroad, tax
Abate, president of the Cameroonian cial resources released by IMF to sup- base broadening, prepayment of the
entrepreneur’s movement (MECAM). port the Central African Economic withholding tax, resurgence of the
“Though they were cordial, discussions and Monetary Community (CEMAC) untimely tax and customs control
between IMF’s deputy managing amid the current crisis and in tack- within enterprises, the unilateral im-
director, his team, and the main ling external challenges. “If we are to plementation of measures to restrict
representatives of the Cameroonian compare, how is it that when Greece, and monitor monetary mass, etc.
employers’ association were neverthe- which has a GDP of $200 billion, was “It is unfortunate that the IMF still
less frank and sincere,” says Daniel in the same conditions, it benefited locks itself in frameworks that revolve
Claude Abate.   from an aid package of $260 billion around budgetary support or sta-
According to him, the association (CFA145, 000 billion) while all the bilization of public finances while
condemns the signing of a new countries of the CEMAC combined, we know that economic activities
economic and financial programme with a GDP of $75 billion, only themselves generate public funds. We
with IMF, last June 26, in which its benefited from a $4billion loan or less cannot indefinitely continue to in-
role and name are mentioned despite than CFA2500 billion? This is clearly crease fiscal pressure and broaden tax
not having been sufficiently impli- unfair,” the MECAM fulminated. base,” Daniel Claude Abate stressed.
cated during the scheme’s elabo- The employers’ association also

China injects close to FCFA50 billion in


drinking water project
In Cameroon, the ministry of (North West), Kribi and Sangmelima
economy, just signed multiple (South).
technical and economic agreements Let’s recall that Wei Wenhua, China’s
with China regarding phase two of a ambassador to Cameroon, said the
drinking water supply project which CEMAC’s economic driver is “the
covers nine Cameroonian towns. second African largest beneficiary of
The overall value of the contracts China’s financing”. This however does
is estimated at FCFA49.4 billion not correspond to data present in
(594 million yuan). the “China Africa Research Initiative
The financing which will be provided (CARI)”, a report detailing China’s in- Central African nation at the ninth
by EximBank China, in charge of vestments in Africa, released in June position in terms of African countries
China’s external investments, will 2016, by the John Hopkins University, to have benefited the most of China’s
cover the towns of Dschang (Western USA. fundings.
region), Yabassi (Coastal), Maroua Truly, according to the report, out Ahead of Cameroon in this regard are
(Extreme North), Garoua (North) of $86.9 billion (FCFA47,795 billion) Angola with $21.20 billion, Ethiopia
and Garoua-Boulai (East). The first of loans from China to African ($12.3 billion), Sudan ($5.58 billion),
phase of the project, launched in States, banks and companies, over Kenya ($5.19 billion), the Democratic
September 2014 and completed the 2000-2014 period, Cameroon cap- Republic of Congo ($4.91 billion),
in August 2017, covered the towns tured a total of $2.8 billion (around Congo ($3.7 billion), Nigeria ($3.5 bil-
of Bafoussam (West), Bamenda FCFA1,540 billion). This puts the lion) and Ghana ($3.1 billion). 

BUSINESS IN CAMEROON N° 56 / October 2017


21

FINANCE
IFC to increase its commitments in
Cameroon and develop CEMAC’s
capital market
Jingdong Hua, Vice-president
in charge of finances of the
International Finance Corporation
(IFC), a subsidiary of the World
Bank, has just completed a two-days
working visit in Cameroon.
The main objective of this visit
was to discuss with Cameroonian
authorities on how to strengthen
the commitments of IFC in Africa,
World Bank explained. It also aimed
to discuss the development of the
capital market in the Central African
Economic and Monetary Community
(CEMAC).
In this regards, sir Hua had working
sessions with the minister of econo-
my, Louis Paul Motaze, and the min-
ister of finance, Alamine Ousmane
Mey. He also met with managers of
Douala stock exchange, the commis-
sion in charge of financial markets,
and representatives of the banking
and assurance sectors. Sir Hua finally
had a discussion meeting with the
students of the school of economics
and social studies of Douala.
“I thank the Cameroonian authorities
for having hosted me and for the qual-
ity of the discussions I had throughout
my stay,” the vice president of IFC
said. “My engagements here allowed
to highlight how IFC can implement its
financial products and advisory ser-
vices to spur inclusive development in tries. Out of this sum, $2.5 billion will institutions. The additional fund will
Cameroon and in the CEMAC region,” be exclusively devoted to a private mainly benefit sub-Saharan African
Jingdong Hua stressed. sectors window (PSW). countries, Cameroon included.
The community of funding bodies The PSW will enable IFC and the The actual investment portfolio of
committed, in December 2016, Multilateral Investment Guarantee IFC in Cameroon is $113 million and,
to provide a record $75 billion to Agency Bank (MIGA) to invest the financial institution operates
the International Development up to $2.5 billion and raise be- mainly in the sectors of infrastruc-
Association (IDA), World Bank’s fund tween $6bn-$8bn private invest- ture, financial markets, productive
devoted to the world’s poorest coun- ments with other development sectors and agriculture.

N° 56 / October 2017 BUSINESS IN CAMEROON


22 FINANCE

Atlantique Assurances lands in Cameroon,


and thus enters CEMAC’s insurance market
Financiers which is held by M.
Dossongui) is clear proof that the
new institution is the subsidiary of
Atlantic Financial Group (AFG), an
Ivorian insurance firm.
AFG is already operating in
Cameroon’s banking sector through
Banque Atlantique. The lender, it
should be recalled, was born after the
Ivorian group acquired Amity Bank’s
assets subsequent to a legal process
initiated by the CEMAC’s Common
Court of Justice and Arbitration.
With Atlantique Assurances
Cameroun IARDT, AFG in partner-
ship with Morocco’s Central Bank
(Banque Centrale Populaire -BCP),
is entering the CEMAC’s insurance
market after successfully establishing
itself in Côte d’Ivoire, Togo, Mali, and
Benin more recently.
As a reminder, Cameroon is, after
A company named Atlantique insurance company specialized in Cote d’Ivoire, the second most im-
Assurances Cameroun IARDT with a accidents, is headed by Guy Rolland portant insurance market of the in-
starting capital of CFA2.1 billion was Rasoanaivo, and has at the top of its ter-African conference on insurance
established on February 4, 2016, in board Ivorian businessman Koné markets (Conférence Interafricaine
Douala. This can be read in a recently Dossongui. des Marchés d’Assurances - CIMA), a
published legal notice.  This last detail (adding to the fact regulatory body regrouping 15 coun-
The new company, whose corporate that the institution’ shareholding tries in Central and West Africa.
purpose stipulates that it is an comprises the Consortium of Ivorian

The Cameroon Women Business


Leaders Association partners with Nofia
microfinance
The Cameroon Women Business faced by businesswomen”. “It was overcome. 
Leaders Association (CWBLA), a necessary in order to promote the ac- It is to correct this that the
grouping of businesswomen founded tivities of women who are bold enough Cameroon Women Business Leaders
and lead by Adélaïde Ngallé Miano, to take the risk of starting a business, Association started looking for
signed a partnership agreement with to make them more visible and heard,” financial partners who can facilitate
microfinance institution Nofia on Adélaïde Ngallé Miano added. loan access to its members.
September 21, 2017. The agreement According to a study, access to Nofia microfinance is the second
aims to help CWBLA’s members have funding is the main challenge to the microfinance institution to commit
a better access to loans to finance development of SMEs that represent with CWBLA this year. Indeed, it
their projects.  80% of the country’s industrial fabric. was preceded on March 10 by the
According to its president, the The same study indicates that when Cameroonian subsidiary of French
association was born from “the will to the SMEs are led by women, there lender, Société Générale.   
share and find solutions to challenges are ten times more challenges to

BUSINESS IN CAMEROON N° 56 / October 2017


FINANCE 23

Cameroon: China injects CFA19.5 billion in


a project to boost international trade
The government of China, through
Eximbank China, granted a CFA
19.5 billion loan to Cameroon to
fund its e-government project. The
latter aims at improving interna-
tional trade.
According to the two governments,
this project consists in setting
a platform where economic
operators can access information
on international trade related
standards and services.
Let it be recalled that, according to
the Chinese embassy in Cameroon,
trade between the two countries
reached $2.6 billion (CFA1430
billion) in 2015 making China the
country’s leading trade partner.

Cameroon banking sector undermined by


the diminution of liquidities and the surge of
Non-performing loans according to IMF
Although the Cameroonian banking Mitsuhiro Furusawa said in a speech BEAC, to revive banks in the CEMAC
sector, which is the most solid in the entitled “Unlocking Cameroon’s had no effects.
CEMAC, shows signs of resiliency Growth Potential”. Indeed, in order to inject liquidities
amid a crisis in the price of commod- Even though he did not reveal the in banking sectors of member-States
ities that affects public finances and names of those banking institutions, of CEMAC (Cameroon, Gabon,
economic activities in the CEMAC we concluded from our analysis that, Equatorial Guinea, Chad and the
Union, it has also shown signs of at least three lenders are involved. Central African Republic), the
vulnerabilities for some time now. These are:  the Commercial Bank of Central Bank had decided at the
Those problems, already raised by Cameroon (CBC), recently national- end of its first standing committee
government sources, were made ized but entangled in a long restruc- on monetary policies this year, to
public by the deputy director of IMF, turing and assets capitalization pro- lower by 50% mandatory reserves
Mitsuhiro Furusawa, who sojourned cedure since 2009; the Cameroonian requirements imposed to banks in
raecently in to assess progress in the bank for SMEs whose managing the region.
implementation of a 3-year pro- director is always inviting its major The Apex bank believed that this
gramme established by Cameroon’s shareholder, the Cameroonian would have made available between
government and the Breton Woods government, to inject funds so her FCFA500 billion and FCFA600 billion
institution. institution can operate efficiently; or to banks in the CEMAC. According
“Your country’s banking sector so far the NFC Bank which, some years ago, to Afriland First Bank CEO, Alphonse
has proven resilient in the face of the was placed under temporary admin- Nafack, who is also the head of
crisis. But there are signs of strain. istration by Cobac, the watchdog of Cameroon’s Bankers corporation,
Liquidity is declining, and non-per- the CEMAC’s banking sector. more than 20% of this amount
forming loans are rising. Five small The problems mentioned by IMF should go to commercial banks in
and non-systemic banks are insolvent; deputy managing director lead us to the country.
most have been for many years”, think that the resolutions taken by

N° 56 / October 2017 BUSINESS IN CAMEROON


24

AGRIBUSINESS
Cameroon, FAO, and EU approved a research
on cassava production
Since last September 26, Cameroon
has a research, on the production
system of cassava roots, that aims to
improve the productivity, well–in-
formed sources revealed.
This research is the result of a project
implemented in seven African
countries with the assistance of the
European Union and the Food and
Agriculture Organization (FAO). FAO
has been charged with the implemen-
tation of this project in Cameroon.
According to the project’s managers,
it is needed because cassava is a
staple for Cameroonians but, the
roots used yield low volumes of
cassava to guarantee food security for
consumers.

Launched 30 years ago, the national program


for agricultural extension and research
comes to an end
The Cameroonian program for
agricultural extension and research
(Pnvra), the oldest government
initiative to promote agriculture,
will be terminated in January 2018
after some years of hibernation, we
learned from official sources. 
According to Henri Eyébé Ayissi,
the minister of agriculture and rural
development, the program which
was launched more than 30 years
ago will be replaced by “the more
practical” program for the structur-
ing, support to farmers and agricul-
tural extension (Prosapva). 
The Pnvra was a support-counseling
scheme steered by the ministry of
agriculture and aimed mainly at im-
proving the productivity and income
of livestock farmers.

BUSINESS IN CAMEROON N° 56 / October 2017


AGRIBUSINESS 25

Afriland First Bank and Ecobank exit PIDMA


(Investment and Development Project for
Agricultural Markets)
Funded with FCFA50 billion by the Bissa, coordinator of PIDMA, who have withdrawn their orders, buying
World Bank, the Investment and also deplored “high interest rates” on elsewhere,” PIDMA’s coordinator told
Development Project for Agricultural loans granted farmers associations the Quotidien gouvernemental.   
Markets (PIDMA) may not reach involved in the project. “The loans Let it be recalled that the PIDMA
its objectives. Indeed, this is what are not rapidly provided, in addition which aims to boost local cassava,
suggest the various challenges faced to their interest rates being extremely sorghum and maize outputs to sup-
by PIDMA’s managers. high,” he said.   ply agribusinesses, extends over the
Indeed, recently, during the regular Moreover, during the same meet- 2014-2019 period. Under the project,
dialogue meeting for the project’s ing, it was found that the project’s financing is provided to farmers and
implementation, two of the partners beneficiaries are having a hard time benefited cooperatives in the form of
involved decided to exit the PIDMA. fulfilling their contracts, due to or- subsidies (50% of needed funding),
These are Afriland First Bank and ganizational issues. Same goes from while they are to personally provide
Ecobank Cameroon. “Remaining agribusinesses partnering the pro- 10% of the investment and secure re-
partners are SGC (Société Générale jects. “Some committed to purchase maining 40% from partnering banks.
Cameroon) and BICEC (BPCE’s tons of maize at FCFA200/kg, and now
subsidiary),” said Thomas Ngue that market price is FCFA160, they

Telcar Cocoa pays CFA 2.2 billion premiums


to certified cocoa producers
For the 2016-2017 cocoa
season that has just end-
ed, Telcar Cocoa, the local
trader of the American
firm Cargill, has paid
registered cocoa pro-
ducers CFA 2,2 billion in
premiums, official sources
indicate.
This sum shared among
some 15000 Cameroonian
producers has been offi-
cially released last week
during an official meeting
organized in Sangmelina,
basin of production in
Southern Cameroon.
In its framework to
promote certified cocoa
production in Cameroon,
Telcar Cocoa trained thou-
sands of cocoa producers
over the last five cocoa
seasons and they received
an overall sum of CFA
3,7 billion in premiums.

N° 56 / October 2017 BUSINESS IN CAMEROON


26 AGRIBUSINESS

150 tons of fertilizers distributed to coffee


producers in the Moungo department, in
Cameroon’s coastal region

36 groups of coffee producers in the The project which is steered by the so far had no noticeable effect on the
department of Moungo, the largest ministry of agriculture and rural de- country’s coffee production which
production area in the Cameroon’s velopment (Minader), aims to boost has even considerably declined over
coastal region received 150 tons Cameroon’s cocoa and coffee produc- the past ten years.
of fertilizers in the framework of tion by improving farmers’ access to According to actors of the coffee
a project that promotes the use of fertilizers as most of them lack the sector, the gradual decline is due to
fertilizers in the cocoa and coffee means to purchase the product. farmers disinterest in the crop, as it
sector (Pauef2c). However, looking closer, this project is less profitable than cocoa.

Ban on poultry transportation in Western


region still effective
Since March 13, 2017, date at which measures imposed by officials when the avian flu outbreak was declared
avian flu outbreak was declared the epidemic broke out. in the department and nothing has
in Foumbot, in the department of Nowadays, some members of the happened since. It means that we can
Noun, Western Cameroon, no other professional association of poultry safely lift the ban in place in the ‘poul-
alert was given regarding the disease farmers (IPAVIC) are demanding the try department’. Not doing so could
in the region which is the country’s cancellation of these measures and cost the sector much more. However,
largest poultry production basin. ask the government to allow poultry with the inflation of the price of raw
However, poultry transportation farmers to resume production in this materials, as long as the farmers have
is still banned in the department area from which 80% of the all poul- no exposure, they cannot invest or take
just like it has been banned in the try products produced in Cameroon risks”, Blaise Kamdoum, vice-presi-
department of Mifi since September comes. dent IPAVIC said.
2016. This is in line with restrictive “It has been six months already since

BUSINESS IN CAMEROON N° 56 / October 2017


27

TRANSPORTATION
Douala port authorities officially get new
maritime surveillance equipment
On September 20, the ministry of to the port’s authorities, Shey Jones, competitive and efficient,” Shey Jones
public works (MINTP) officially chairman of the management board declared.
handed over maritime surveillance of the port, welcomed the govern- Cyrus Ngo’o, on his part, indicated
equipment to authorities of the ment’s purchase of the “Emergence” that the speedboat arrived at the
Douala port. This is to reinforce the speedboat and three semi-rigid Douala port on May 7, 2017 and, it is
port’s operational capacity. dinghies, qualifying it as extremely being used since. It facilitates move-
Louis Max Ayina Ohandja, state sec- opportune. A transaction which ments of chief captains from the
retary in charge of roads at MINTP, was backed by the International coast to incoming or outgoing boats
and Cyrus Ngo’o, managing director Monetary Fund (IMF). “This equip- while at the same time making more
of the Douala port, signed the official ment comes at a time executive productive the port which handles
documents sealing the deal. management initiated an inclusive around 10-12 tons of freight per year.
Before the equipment was handed strategy to make the Douala port more

The Cameroonian government need


CFA200 billion to replace the nozzles
on the Yaoundé-Douala road
Following the numerous cracking
of the Yaoundé-Douala Douala road
(Nationale n°3), the ministry of
public works (Mintp) explained that
around 409 nozzles must be re-
placed by gutters in on this highway
connecting the two major cities of
Cameroon. This will cost CFA200
billion.
“We have investigated and we know
exactly the number of nozzles that
were built between 1982 and 1986.
A specific action plan has been set
and, we classified the nozzles we need
to replace into 3 categories”, Guy
Daniel Abouna Zoa, coordinator year [2017], and, we were able to raise fell on September 16 at Ebomè, in the
of infrastructure projects at Mintp CFA10 billion”, Guy Daniel Abouna Sanaga maritime department.
explained. Zoa explained. Nearly a year ago, crumbling of a
He further indicates that there are The Yaoundé-Douala axis which road in Manyaï on October 21, 2016
134 nozzles to be urgently replaced. is part of the Douala-Ndjamena caused many to rush to the only rail-
Those to be replaced in a very short and Douala-Bangui corridors, is way company in Cameroun; Camrail.
term are 143 and there are 132 to be disrupted most of the time. After This was the main reason of the
replaced in the future. This makes it the crumbling of 3 metal nozzles derailment that followed causing the
a total of 409 nozzles to be replaced. on September 1st and 2nd there, the death of 79 people and 600 injured.  
“We need around CFA47 billion this technical segment of a nozzle that

N° 56 / October 2017 BUSINESS IN CAMEROON


28 TRANSPORTATION

Lack of freight and bad roads hamper goods


transport along Douala-Ndjamena corridor
Last September 16, the thrust customs office. have your truck, registered, settle your
block of a culvert crumbled in “The bad state of the Maroua-Kousseri fiscal status, full of fuel, things are still
Ebomé, along the Yaoundé-Douala axis forces us to use the road that goes difficult (…) Some hauliers load cargos
road which is part of the Douala- from Touboro to the South of Chad, at Douala heading Kousseri, but have
Ndjamena and Douala-Bangui and heads up to Ndjamena. This caus- issues going back as they have to do so
corridors. Few days later, on es long delays on delivery schedules. with no cargos and cannot therefore
September 25, another road sec- At least 800 km separate Maroua and bear the cost of their trip,”  Alhadji
tion, along the Ngaoundéré-Dang Kousseri. However, going around pass- Ousmanou explained.
road, in Cameroon’s Northern ing through Chad, the distance is twice The lack of freight, which can
region, collapsed. Due to these two as long,” said Alhadji Ousmanou, partially be attributed to a slowdown
incidents, transporting goods to a leading member of Cameroon’s of Chad’s economic activities, as a
Kousseri, which shares a border with Road Hauliers’ Organization, in an result of the crisis in oil prices (the
Ndjamena, Chad’s capital city, has interview with tri-weekly regional country gets 70% of its revenues
become extremely challenging. newspapers l’œil du Sahel. from the black gold, according to
Before the collapses which, of course, According to our source, beside CEMAC’s commission), had already
had a negative impact on activities the state of roads, which causes been denounced months ago, by the
along the Douala-Ndjamena corridor hauliers, importers and exporters Road Transport Professionals Union.
where about FCFA340 billion worth to record significant losses, traffic However, at the time, the union was
of Chadian goods transit each year, on the Douala-Ndjamena corridor blaming a group of clandestine haul-
the traffic was already troublesome. has considerably decreased due to iers who actually control nearly 45%
This is according to Cameroon’s the absence of freight. “You could of the terrestrial freight in Cameroon.

After a strategic move back to domestic


flights, Camair Co will resume flights to
Gabon, Côte d’Ivoire, Senegal and CAR
Camair Co, the airline, partners such
Cameroonian public airline, as travel agencies, and
will resume, in the coming potential clients for these
weeks, its flights to some destinations.
African capital cities. These This decision from the top
include Libreville in Gabon, management of Camair
Bangui in the Central Co would suggest that the
African Republic, Abidjan airline is gradually finding
in Côte d’Ivoire, and Dakar back its balance, after sev-
in Senegal, we learned from eral structural and financial
authorised sources. issues which have affected
The announcement of this its operations since the
resumption of interna- launch of its activities in
tional activities by Camair 2011. A situation which led
Co was recently made the company to temporar-
in Yaoundé, the capital, ily give up on international
during a meeting between flights, to focus only on
the Cameroonian public domestic routes.  

BUSINESS IN CAMEROON N° 56 / October 2017


29

INDUSTRY
The national participatory development
program will promote local building
materials use in its projects
From now on, the national building materials promotion
participatory development taskforce (Mission de pro-
program (Programme national motion des matériaux locaux
de développement participa- -Mipromalo).
tif- Pndp), which is in charge Apart from the joint imple-
of building socio-economic in- mentation of projects that
frastructures for Cameroonian prioritizes local building mate-
municipalities, will commit to rials’ use, the agreement plans
the promotion of local build- for training programs, on the
ing materials. This, through use of these materials, for
a partnership with the local decentralized local authorities.

Bocom Recycling starts production


of eco-friendly roof tiles made
of recycled plastic waste
After its project of lead extraction
from recycled car batteries, Bocom
Recycling now moves to produce
environmentally friendly roof tiles.
The tiles will be made with recycled
plastic waste which are abudant in
Cameroonian streets, we learned
from credible sources.
According to the group’s executives,
the tiles or “éco-tuiles” as they have
been baptized, are strong, water-
proof and help maintain an ambient
temperature in houses they cover.
Bocom Recycling is a branch of
Bocom, a Cameroonian industrial
group. Apart from recycling, it also
specializes in the distribution of oil
products, industrial cleaning, and
mining and plans to operate an iron
mine in Akom II by building a steel
complex at Fifinda, in southern
Cameroon.

N° 56 / October 2017 BUSINESS IN CAMEROON


30

MINING
World Bank provides support to granite
paving stones production project in
the Adamawa region

The Urban Community of paving stone processing unit, for the ment to the Urban Community of
Ngaoundéré, in the Adamawa region, construction of drains and surfacing Ngaoundéré.
located in northern Cameroon, re- of urban roads. As a reminder, based on estimates
cently benefitted from funding worth “Asphalt is expensive and not always from the National Road Council
FCfa 80 million granted by the World affordable for decentralised local (Conaroute – Conseil National de
Bank, we officially learned. governments. One of the solutions la Route), the price per kilometre of
This funding will be used, according to this problem is using granite and asphalted roads in Cameroon is ap-
to the management of the office of other rocks surrounding the town of proximately FCfa 205 million, against
the mayor of the regional capital Ngaoundéré and the neighbourhood”, only FCfa 100 million on average in
of Adamawa, to set up a granite to claimed the delegate of the govern- Africa.

BUSINESS IN CAMEROON N° 56 / October 2017


31

ITC & TELECOM


Suspended since two weeks, Vodafone
Cameroon submit a request for license

Executives of Vodafone Cameroon through a franchise it obtained from sive rights to their holder. Northwave
decided to bend to Cameroonian the UK telecom operator. Sarl, therefore, was not allowed
authorities’ will after some months The case of Vodafone Cameroon’s to transfer its license to Vodafone
of negotiations which led to the license, which was simmering Cameroon, the entity born from its
operator’s suspension on September since October 2016, experienced an absorption by Afrimax Group.
14, 2017. accelerated development this month. According to Minpostel’s officials,
Indeed, according to sources work- Indeed, ordered by the minister Vodafone Cameroon must request
ing at Vodafone, the firm submitted of post and telecommunication, its own license and meet related
a request for a license to the ministry Minette Libom Li Likeng, telecoms requirements, before using 4G LTE
of Posts and Telecommunication regulatory authority has suspended to supply internet to Cameroonians.
(Minpostel) on behalf of an entity Vodafone’s activities on September This is what they just did.
named Afrimax Cameroon SA. 14. Our sources also add that the license
Afrimax Cameroon SA, the Explaining the move, the govern- requested only covers Yaoundé and
Cameroonian subsidiary of Afrimax ment official in charge of telecom- Douala that represent around 80%
Group which absorbed Northwave munications referred to the law of the country’s telecom market.
Sarl, who previously held the contro- governing the establishment and/or This aspect could lead to difficult
versial license (truly, under the law in operation of networks and provi- negotiations between government
place, licenses are non-transferrable sion of electronic communication officials and Vodafone Cameroon as
and are personal), wants to secure services. The latter clearly specifies the operator’s rivals for their part are
its own license to operate under that operating rights are personal, forced to cover the whole country.
the name of Vodafone Cameroon, non-transferable and grant no exclu-

N° 56 / October 2017 BUSINESS IN CAMEROON


32 ITC & TELECOM

The PmExchange 2017 will be held in Douala


from November 21 to 25, 2017
Organized by the employer’s group and development. Let’s recall that though SMEs repre-
Ecam (Entreprises du Cameroun), Under the topic “les PME et la révo- sent more than 80% of Cameroon’s
the 2017 PmExchange will be held lution du digital” (SMEs and digital industrial fabric, they face innumer-
from November 21 to 25, 2017 at revolution), this edition will be able challenges. Some forums like
Douala, Cameroon’s economic punctuated by thematic workshops, PmExchange try to find solutions to
capital, official sources revealed. B2B meetings between economic those challenges.
Ecam focuses on SME’s promotion operators and trade fairs.

Cameroonian customs seize cargo of over


4,200 mobile telephones in Fotokol, border
town close to Nigeria
The town of Fotokol, located at
the border with Nigeria, in the
Far North region of Cameroon,
is often the scene of attacks by
the sect Boko Haram. But the
atmosphere of insecurity in this
city does not seem to discour-
age smugglers.
Indeed, we learned from official
sources, the Cameroonian cus-
toms have just seized a cargo of
over 4,200 mobile telephones,
carefully hidden in the official
car of the commander of the
Fotokol gendarmerie brigade.
Chief Warrant Officer David
Abanda was thus caught
red-handed by the customs
officers, who used information
given to them on the unortho-
dox activities of this warrant
officer in the national gendar-
merie. The goods were seized
and the case taken to military
court, we learned.
In June 2017, a cargo of approx-
imately 3,000 packs of Indian
hemp and tramol bound for
Nigeria was seized in Fotokol.
Drugs, which based on the
custom officers’ analysis, were
certainly meant to supply mem-
bers of the Boko Haram sect on
the other side of the border.

BUSINESS IN CAMEROON N° 56 / October 2017


33

SERVICES
French group Casino will invest CFA20 billion
in Cameroon, opening about ten stores
Last September 26, in Yaoundé,
Cameroon’s trade minister received a
delegation of French businessmen led
by Hervé Daudin, product manager of
the Casino group.
Hervé Daudin said that Casino intends
to build between 10 and 15 stores in
Cameroon. This will create 1000 directs
jobs for a CFA20 billion investment. The
group intends to supply Cameroon’s
markets with quality products at low
prices in the framework of the govern-
ment’s strategy to tackle the problem of
high-cost of living.
After the construction of the stores
in Yaoundé and Douala, Ngaoundéré
and Bafoussam will also welcome the
group’s new stores.
“It is an evidence of the government’s will
to modernize large-scale distributions
(...); extensive retail spaces remained
elitist till now. It is important to meet
standards. Civil society members wish to
see national resources valorized”.
Casino also intends to invest in the ag-
ricultural sector in the western, coastal
and northwestern regions of Cameroon.

Douala to host first edition of the


international commerce and business fair
starting from March 24, 2018
The Cameroonian government Cameroon, its promoters revealed grouped around 1300 enterprises.
through its ministry of commerce during a recent press conference held It should be noted that the trade
and Inter-progress foundation in Yaoundé. ministy’s budget for 2017, which
will launch the first international The FIAC will last two weeks and was submitted to parliament in
commerce and business fair (FIAC) will take place on the sideline of the November 2016, was increased by
on March 24, 2018. SME, Partnership and Businesses more than FCFA2 billion to hold
The economic event will take place fair (PROMOTE) whose sixth edition FIAC’s first edition.
in Douala, the economic capital of ended last February 19 and re-

N° 56 / October 2017 BUSINESS IN CAMEROON


34

LEADER OF THE MONTH

To protect the environment,


Ismaël Essome makes pirogues
with recycled plastic bottles

By simply assembling plastic bottles, binding them together with a specific cord, Ismaël Essome was able to build a pirogue which can carry up to three
people and a load of 90kg on water, and resists waves.

Since August 2016, a small revolution “I am not afraid of the waves (…), this recycling chains. Finally, the young
was sparked in the sector of envi- pirogue is very strong, and it can take environmentalist wishes to protect
ronmental protection in Cameroon, you anywhere. I dreamt to build it for trees, whose trunks are used to
specifically in the fight against so long,” he adds. make regular pirogues in the coastal
plastic bottle pollution. Truly, it was Indeed, by simply assembling plastic regions of Cameroon.
in that month that Ismaël Essome, bottles, binding them together with If only investors could get interested
young environment management a specific cord, Ismaël Essome was in his project, promoting both the
engineer, made Cameroon’s first able to build a pirogue which can modernization and commercializa-
ecological pirogue using recycled carry up to three people and a load tion of the pirogues, Ismaël Essome
plastic bottles. The project cost close of 90kg on water, and resists waves. believes that it will not only help end
to a million Cfa francs. According to him, his invention pollution caused by plastic bottles,
“At the beginning, we had to determine which is 100% ecological aims mainly but also preserve trees while bene-
the shape of the pirogue and find the to achieve three goals. fiting fishermen who would spend
appropriate wire to bind the bottles. First, it intends to promote seaside much less to purchase pirogues.
It took us days and days. Then, we tourism as it will be made available Indeed, an eco-pirogue will be sold at
proceeded to tests between Douala, to tourists. Secondly, it aims to FCFA100,000, which is considerably
where we are based, and beaches. We preserve the environment, by recy- below the wooden pirogue’s price
made some modifications and are still cling plastic bottles which flood the which ranges between FCFA150,000
perfecting ourselves,” the young engi- country’s streets, gutters and rivers, and FCFA500,000, or that made with
neer told Le Monde Afrique which despite the adoption in October 2014 synthetic material which costs at
was with him as he was testing his of a law instructing their producers least one million CFA francs.
invention on a Cameroonian beach. (bottles) to systematically establish Brice R. Mbodiam

BUSINESS IN CAMEROON N° 56 / October 2017


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