THE BUSINESS CLIMATE IN CAMEROON
I- INSTITUTIONAL REFORMS
A- Good governance and transparency
Governed by Decree No 2005/187 of 31 Mai 2005, it ensures the provisions to combat capital laundry and funding of terrorism.
It is an independent public institution mandated in contributing in the fight against corruption by identifying the causes of corruption and proposing to the competent authorities, eliminating measures in public institutions and establishments. It is governed by Decree No 2006/088 of 11 March 2006, operational since the 15 March 2007
It contributes in establishing and implementing the Government’s policies in the domain of standardisation and Quality in Cameroon. It is governed by Decree No 2009/29 of 17 September 2009
Created on the 29 June 2000, it has as mission to support development and sustainable development.
B- Investments security and Justice
Instituted by Presidential Decree No. 2001-183 of 25 July 2001 on the reorganisation of the infantry fighting formations, it has as mission to combat banditry and criminality in Cameroon
Governed by Decree No 2012/112 of 15 March 2012 on the opening of Administrative Courts and Law No 2006/ 015 of 29 December 2006 on the Judicial organisation of Courts, these courts ensure celerity and efficiency in the fight against corruption and the embezzlement of public funds
This procedural code governed by Law No. 2016/007 of 12 July 2016 ensures the transparency and acceleration of judicial proceedings
C- Procedural mitigation and supports to investors
Instituted by Decree No 2002/216 of 24 August 2002, It is a consultative instance comprising of representatives of the public and Private sectors as well as the Civil Society and has as missions to:
Ensure the implementation of the objectives provided by the investments charter
Ensure the respect of provisions of the above mentioned charter as well as its implementation texts
Regulate the activities of organs that promote and facilitate investments, exports, norms and intellectual property
It is a public-private partnership initiative that sprang from a dialogue between operators in the private sector and Cameroonians authorities.Created on the 7th July 1999 by Decree No 99/130 of 15 June 1999, it is responsible for the Single Window for foreign Trade Transaction of Economy Interest Grouping (GIE)with a goal of establishing general procedural orientations of foreign business.
Order n°075/CAB/PM of 18 May 2005 in accordance with the provisions of the said decree, the Committee thus created had the following tasks:
-Elaborate preliminary draft regulatory texts relating to the creation of Business Formalities Centers;
-Collect information on all the formalities required for the creation, transformation and cessation of a company’s activities;
-Propose a single document of formalities for the identification of companies.
– Facilitate the process of starting a business
The steering center CFCE of Yaounde and Douala are officially established on the 15th and 22nd April 2010 and hosted at the Regional Delegation of MINPMEESA, the following where hosted In the various cities:
31 May, the CFCE of Bafoussam
23 June 2011, the CFCE of Garoua
The 13th July, the CFCE of Bamenda
The Agency was established by Decree No 2005/310 of 1st September 2005 on the organization and functioning of the investment promotion Agency having as main mission and in collaboration with administrations and the concerned public and private organs to:
Contribute in the elaboration and the putting in place of government policies in the domain of promoting investments in Cameroon as well as participating in investment
The amelioration of an incentive and favourable environment for investments in Cameroon
It was created on the 3rd of April 2013 with the goal of facilitating the creation of SMEs
governed by Decree n°2007/0456/PM of 29 March 2007. it has a goal of providing assistance in management, coaching, and enforcement of accounting and fiscal obligations to SMEs that adhere to its services and that have an annual capital between 15 and 250 millions FCFA. They shall become operational once the finalisation of the ongoing institutional settings.
it was established on the 20 November 1998 for companies. it operates under the principlles ensuring procedural quality and efficiency in pronounced sentences
D- Reinforcement of Public – Private – Civil Society partnerships
Cameroon Business Forum
created in January 2009, it is an ideal medium for dialogue between the state and the private sector. it also reinforces talks between public authorities and the business milieu and strives towards ameliorating the business climate and supports to the development of the private sector
it was created on the 12 June 1957. it members are active in every sector (Agriculture, Industry, Business and Services, food, armament, insurance, automobiles, banking and credit, real estate, infrastructure, timber, breweries, chemicals, cement, leather, distributions, water resources, energy resources, ICT, mines, metal and steel, oil and gas, sugar, tobacco, telecommunications, textiles, transport, public transports, plastics, etc…
II- REGULATORY REFORMS
The Central African Economic and Customs Union (UDEAC) was founded on 8 December 1964 by the Brazzaville Treaty of 1964 (revised in 1974) and became operational on 1 January 1966.
In March 1994 the six UDEAC leaders signed a treaty for the establishment of an Economic and Monetary Community of Central Africa (CEMAC), which was to promote the process of sub-regional integration within the framework of an economic union and a monetary union.
The Union that constituted an economic space of 3 millions km2 and 28 millions inhabitants operated without interruption until February 1998
Governed by the treaty signed on the 16 March 1994 at Ndjamena (Chad) which took over from the UDEAC treaty to satisfy the need of deepening and revitalising the regionalisation procedures engaged by its members, the Central African Economic and Monetary Community (CEMAC) is made up of six States: Gabon, Cameroon, the Central African Republic (CAR), Chad, the Republic of the Congo and Equatorial Guinea.
With a total population of about 37 million, it covers a total surface of around 3 million km2. Together with the larger Economic Community of Central African States (ECCAS) and the mainly inactive Economic Community of Great Lake Countries (CEPGL), CEMAC presents one of the Central African regional Communities established to promote cooperation and exchange among its members.
The primary mission of CEMAC is to promote harmonised development in its member states in the framework of a common market.
Its objectives is to:
– strengthen competitiveness of economic and financial activities by harmonising regulations that govern them;
– ensure the convergence toward sustainable economic and financial performance by coordinating economic policies and rendering national budgetary policies consistent with the common monetary policy;
– create a common market based on free mobility of persons, goods, capital and services;
– assure coordination of national sector policies in the following areas: agriculture, livestock, fishing, industry, commerce, transport, telecommunications, energy, environment, research, education and professional training;
– implement common actions and adopt common policies.
The Organization for the Harmonization of Business Law in Africa (OHADA) was established by the Treaty on the Harmonization of Business Law in Africa (OHADA) signed on October 17, 1993 in Port – Louis (Mauritius Ireland) and revised in Quebec (Canada) on October 17, 2008.
To date, seventeen (17) States are members of the Organisation for the Harmonisation of Business Law in Africa: Benin, Burkina Faso, Cameroon, Central African Republic, Côte d’Ivoire, Congo, Comoros, Gabon, Guinea, Guinea Bissau, Equatorial Guinea, Mali, Niger, the Democratic Republic of Congo (DRC), Senegal, Chad and Togo.
Address the legal and judicial insecurity in Member States and its
Mission: To harmonise business Law in Africa in order to guarantee legal and judicial security for investors and companies in its Member states.
Indeed, it is undeniable that legal balkanization and judicial insecurity were the key impediments to the economic development of the continent. Harmonising economic laws and improving the functioning of judicial systems in Member States were therefore necessary to restore investor confidence, facilitate trade between countries and develop a vibrant private sector.
Economic globalization requires the harmonization of laws and legal practices. Regarding developing countries like ours, this is a priority in order to create a favorable climate for legal and judicial security, a condition sine qua non to attract an inflow of foreign investment. This task is even more important considering that investment is in itself a risk, even if it is a calculated risk, it would therefore be much difficult to attract investors if they have to deal with an additional risk of legal norms that are changing, fluctuating and uncertain.
Twenty-two years after the creation of OHADA, the result is a huge work of legal unification in its Member States. OHADA is therefore an important tool for the development of business law, the creation of an integrated legal space conducive for a viable and lively economic space. OHADA can be a role model in Africa and beyond since the Caribbean countries have already implemented a similar project.
THE 10 REASONS TO INVEST IN CAMEROON