Africa

24, May 2024

International mining convention opens in Yaoundé ⁰

The Cameroon International Mining and Exhibition Convention opened on Thursday in the Cameroonian capital of Yaoundé.

The three-day event, now in its fourth edition, aims to promote sustainable investment in the mining sector in Central Africa with Cameroon as the hub, according to the country’s Ministry of Mines, Industry and Technological Development, the organizer of the event. The gathering attracted mining professionals and officials from Africa, Europe and Asia.

While presiding over the opening ceremony, Cameroonian Prime Minister Joseph Dion Ngute said Cameroon has significant mineral resources that are largely underexploited.

Cameroon is seeking to transition from a country with mining potential to a mining-producing country, and is initiating reforms to attract investment, Ngute added. “Measures have been taken to encourage semi-mechanized artisanal mining at the expense of inactive exploration licenses. By 2023, Cameroon had launched four industrial mining projects. In 2024, this approach will continue with four additional projects.”

In 2019, Cameroon announced that it had discovered 300 new mineral mines across the 10 regions of the country.

Source: Xinhuanet

14, May 2024

CPDM Crime Syndicate: Customs Targets 75% of Revenue from Douala and Kribi Ports ⁰

The Directorate General of Customs (DGD) within the Ministry of Finance (Minfi) aims to collect over CFA92 billion in revenue for the Treasury in May 2024. The largest contributions are anticipated from the customs sectors of Littoral I and South II, covering the ports of Douala and Kribi, respectively.

Specifically, the customs services in the Littoral I sector have been tasked with collecting CFA58.9 billion, representing over 50% of the total expected revenue. Meanwhile, the South II sector has a collection target of CFA23.3 billion, less than half of what is expected from Littoral I, amounting to a 73.3% collection goal.

Following these major contributors, the third highest revenue, amounting to CFA4.7 billion, is anticipated from the Southwest region. The smallest contribution (CFA18.7 million) is assigned to the Northwest region, which, like the Southwest, has been grappling with a socio-political crisis since late 2016.

Despite the increasing tariff dismantlement in line with the implementation of Economic Partnership Agreements (EPAs) with the European Union (EU), Cameroon’s customs revenues surpassed 1 trillion CFA francs for the first time in 2023, reaching CFA1,019.8 billion by the end of the fiscal year.

In 2024, Cameroon aims for revenues of CFA1,079.9 billion, marking a 10% increase from the previous year’s projections.

Source: Business in Cameroon

8, May 2024

il y avait quoi avant: Camair-Co continues to buckle under debt pile ⁰

Camair-Co continues to face a debt burden of XAF124 billion Central African francs (USD203.7 million), making it the second most indebted state-owned enterprise in Cameroon, according to the country’s latest monthly public debt review.

Released on April 25, the report by Cameroon’s public debt management committee (Comité National de la Dette Publique – CNDP) and national debt recovery fund (Caisse Autonome d’Amortissement – CAA), viewed by ch-aviation, reveals that Camair-Co carried XAF62.4 billion (USD102.5 million) in domestic debt and XAF61.6 billion (USD101.2 million) in external debt by March 31, 2024. The highest debt, of XAF652 billion (USD1 billion), is shouldered by national oil refinery Société Nationale de Raffinage (Sonara).

Unprofitable since its incorporation in 2006, the technically bankrupt national carrier was among four state-owned enterprises that were placed under performance contracts in 2023 as part of government efforts to improve the viability of public enterprises under the supervision of the International Monetary Fund (IMF). The government of Cameroon is currently implementing a USD689.5 million Economic and Financial Programme for 2021-2024 supported by the IMF’s Extended Credit Facility (ECF) and Extended Fund Facility (EFF).

The financial strain on the fiscus has led to discussions of privatisation. The possibility of listing Camair-Co was mentioned in a report last year by a technical committee tasked with rehabilitating state-owned enterprises (SOEs). In 2020, President Paul Biya instructed the government to develop a restructuring plan to revive the carrier and sell 51% to a strategic private investor. However, the state-run enterprises rehabilitation commission (Commission Technique de Réhabilitation des Entreprises du Secteur Public – CTR) emphasised that before any divestment Camair must clean up its balance sheet and improve its financial standing. Efforts to address this include a restructuring and revitalisation plan, supported by the presidency since September 2020.

Meanwhile, the airline is wet-leasing three Embraer jets to resume regional routes later this month, to Cotonou Cadjehoun in Benin and Pointe Noire and Brazzaville in Congo.

Source: ch-aviation

2, May 2024

BEAC sets two-week deadline to withdraw CFA150bn from banks in inflation battle ⁰

The Central Bank of Central African States (Beac) kicked off its 4th round of bond issuance on April 29, aiming to tighten bank liquidity. Through three bond issuances scheduled between April 29 and May 13, the central bank aims to withdraw a total of CFA150 billion from commercial banks’ coffers.

The first three rounds of bond issuance saw rather mixed success. Out of seven operations, at least two were declared unsuccessful due to lack of subscriptions, while almost all others barely exceeded a 30% demand coverage rate. Since the launch of these operations in February 2024, only the one on April 22, totaling CFA50 billion, saw remarkable success. This offer saw a coverage rate of 156% as reported by the central bank.

Following the increase in key interest rates, suspension of liquidity injection operations, and intensified weekly liquidity withdrawal operations, Beac bonds have become the central bank’s new tool to reduce bank liquidity and restrict access to credit. This is aimed at reducing the share of inflation of monetary origin (20%) in the Cemac zone.

Source: Business in Cameroon

30, April 2024

Cameroon Employers Association: Célestin Tawamba’s landslide victory raises questions ⁰

The election of Célestin Tawamba as the head of the Cameroon Employers’ Association (Gecam) is hailed as a resounding success, according to a statement released after the organization’s first general assembly. Gecam was born from the merger of the Inter-Patronal Group of Cameroon (Gicam) and Cameroon Enterprises (Ecam).

Tawamba’s slate, the only one in contention, secured 550 out of 560 votes, amounting to 98.18% of the valid votes, as stated in the document signed on April 9 by the managing director, Aline Véronique Mbono.

However, the document remains silent on the number of voters. Yet, upon scrutiny of Gecam’s texts, it’s evident that the number of votes no longer matches the number of voters. The new vote distribution is as follows: large enterprises, with revenues exceeding CFA50 billion, have five votes; medium-sized enterprises, with revenues ranging from one to CFA15 billion, possess two votes; small enterprises, with revenues between CFA50 million and CFA1 billion, have one vote; and very small enterprises, with less than CFA50 million in revenue, are allocated 0.2 votes.

Some business owners turn their backs on Gecam

It is important to note that only 295 members participated in Gecam’s inaugural general assembly. This indicates that out of a potential 1,400 members, 295 have formally joined Gecam, comprising 1,000 from Gicam and 400 from Ecam. This reality tempers the claimed landslide victory and raises questions about the consensus around the merger project. Acknowledging this, sources within Gecam admit that the desired unity of the employers’ association has not been achieved. Since Gicam’s extraordinary general meeting on July 11, 2023, when 329 members voted in favor of the merger treaty, no employers’ association gathering has attracted more than 300 people.

Following the merger, a significant number of patrons have not paid their dues and are not actively involved in the activities of the new employers’ organization. Notable absentees include Abakal Mahamat, the CEO of BGFIBank Cameroon, and Reine Essobmadje, the CEO of Evolving Consulting, who was previously one of the vice presidents in Gicam’s last board of directors under Célestin Tawamba’s presidency.

“Many of us were left unsatisfied with the underlying project behind such a merger,” stated Jacques Jonathan Nyemb, a member of the Gicam board of directors, back in December. Nyemb, who served as the spokesperson for Célestin Tawamba until July 11, 2023, further believes that the merger process was marred by irregularities both in substance and in form. This led Emmanuel Wafo, then president of the Gicam’s economic and business development commission, to file several complaints that are still pending before the courts in Douala. For opponents of the merger, the sole aim of this project was to dissolve the country’s largest employers’ organization, thus allowing Célestin Tawamba to prolong his tenure at the helm of Cameroonian business leadership by assuming control of the newly created employers’ federation. It’s worth noting that Gicam’s regulations prevented him from running for office again at the end of his second term in December 2023.”

Tawamba gained ground

At the treaty signing on April 5, 2023, the project’s initiators, Célestin Tawamba and Protais Ayangma, then presidents of Gicam and Ecam respectively, outlined their goal of building a new, stronger, more modern, influential, and representative employers’ organization. Despite some patrons’ reluctance, Tawamba has garnered support, securing official endorsement from the country’s authorities. The inaugural board of Gecam, which he heads, was received by Prime Minister Dion Ngute on April 24, 2024, and the following day by the Secretary-General of the Presidency, Ferdinand Ngoh Ngoh.

During these meetings, the board presented its program and action plan for the next four years. This program focuses on positioning Gecam at the forefront of discussions for implementing policies affecting the business environment, restructuring its organizational framework to provide tailored services to members based on their size and sectors, and supporting SMEs and micro-enterprises to become engines of growth and employment within Cameroon and the region, particularly within the framework of the AfCFTA.

According to reports from these meetings, “Ferdinand Ngoh Ngoh expressed readiness to further support the employers’ association in finding sustainable solutions to improve the business environment through a more inclusive approach.” Prime Minister Dion Ngute emphasized the need for a new paradigm of public-private dialog where the government and employers are equal partners with the same objective.

Source: Business in Cameroon

24, April 2024

Biya regime delays bond sale amid regional market strain ⁰

The Cameroon government has postponed its planned 2024 bond sale, originally slated for April, due to market saturation caused by Gabon and the Central African Development Bank (BDEAC). A source within the Ministry of Finance Treasury Department revealed ongoing negotiations for the delay.

With regional capital markets facing adversity, marked by difficulty in accessing funds, Cameroon opts for caution, refraining from pursuing significant borrowing. Gabon and BDEAC, preceding Cameroon with bond issuances totaling CFA200 billion earlier in 2024, faced challenges in attracting subscriptions, leading to extending their bond closure dates.

Despite offering various interest rates and maturity terms, both Gabon and BDEAC had to prolong their bond subscription deadlines due to underwhelming responses from investors. This move aims to grant them more time and a better opportunity to attract hesitant investors.

In light of this cautious market environment, Cameroon, accustomed to controlled interest rates, refrains from significant borrowing. The country’s preference for controlled rates contrasts with the current trend of rising interest rates, a consequence of the Central African Central Bank’s austerity monetary policy to combat inflation by tightening liquidity. Amid uncertain market conditions, Cameroon prepares to preserve its treasury amidst difficulty in accessing fresh funds. The government plans to repurchase certain bonds issued on the regional market, scheduled for early May, totaling between CFA150 billion and CFA200 billion. This strategy aims to extend repayment dates for bonds nearing maturity, ensuring liquidity for essential priorities.

Source: Business in Cameroon

23, April 2024

Douala: Investment Forum wraps up with honors for investment champions ⁰

The 4th edition of the Cameroon Investment Forum (CIF), hosted by the Investment Promotion Agency (API), concluded on April 19 in Douala with the “Investors’ Night.” During this event, seven companies, administrations, and institutions were honored for their contributions to promoting investments in Cameroon. Shinwinsoh Boma Donatus, the acting CEO of API, kicked off the awards ceremony by presenting the Best Investment Advisory Firm in Cameroon award to the Cameroonian firm JMJ Africa.

Led by Cameroonian legal expert, banker, and financier Patrice Yantho, JMJ Africa has played a key role in major investment projects in Cameroon in recent years. This includes involvement in projects like the construction of cocoa processing plants Neo Industry and Atlantic Cocoa, the Douala Grand Mall, the Pafic soap factory, and the Novia Industries plant, a producer of refined oil, soaps, and other food products based in the Douala-Bonabéri industrial zone. JMJ Africa, which was also involved in the Société International de ciment (SIC) project being developed in the Kribi industrial port zone and owned by Ivorian billionaire Kone Dossongui, is also advising steel giant Prometal Groupe.

Prometal Groupe, the leader in steel processing in Central Africa, received an award at the ” Investors’ Night “. Founder Hayssam El Jammal received the Foreign Investment Champion Award in Cameroon. With a long-standing presence in the country, Prometal Group currently operates six factories (three built in the last five years) for steel processing and agro-food product manufacturing in the industrial zones of Bassa and Bonabéri (Douala). The group is currently finalizing plans for Proalu, its 7th factory, dedicated to aluminum processing.;

Cameroonian businessman Albert Kouinché was awarded the National Investment Champion Award. As the founder of Express Union, a company dominating the domestic money transfer market with a presence in the Central African sub-region, Albert Kouinche is currently leading an industrial aquaculture project (Fish&Co), aiming to reduce Cameroon’s heavy reliance on imported frozen fish. As a shareholder of Banque Atlantique Cameroun, this investor also controls the Cameroonian Equipment Company (SCE), a financial institution providing credits to clients for purchasing goods and small household equipment.

Ecogreen was honored with the Innovation in Investment Award. Specializing in plastic waste recycling, this company is led by Nassrallah El Sahely, who also heads Source du Pays, a leading mineral water brand. Cameroonian bank Afriland First Bank, a market leader ahead of foreign multinational subsidiaries, received the award for Best Financial Institution in Investment Support.

In addition to private entities, a public administration, and an international institution also received awards during the event. The General Directorate of Customs at the Ministry of Finance received the award for Best Institutional Support, while the United Nations Industrial Development Organization (UNIDO) was honored as the Best Development Partner.

Source: Business in Cameroon

19, April 2024

CPDM Crime Syndicate repays CFA39.8bn debt with new borrowings ⁰

On April 17, Cameroon reimbursed CFA39.8 billion on the public securities market of the Central African States Bank (BEAC). Renowned for its solvency since the establishment of this market nearly 13 years ago, Cameroon used its usual borrowing strategy to make this repayment.

To this end, two new issuances of fungible Treasury bills (BTA) were carried out on April 15, two days before the repayment date. These issuances, consisting of securities with maturities of 26 weeks for CFA40 billion and 52 weeks for CFA25 billion, raised CFA49.4 billion from investors. This sum not only covered the due repayment but also generated a cash surplus of CFA10 billion for Cameroon.

The interest rates applied in these operations reflected the increasing tension in the market, which has seen its requirements rise over the months due to a restrictive monetary policy. Cameroon offered an average interest rate of 6.3% on the 26-week BTAs and 6.5% on the 52-week ones. The rates are significantly higher than the 3% ceiling commonly practiced by the Cameroonian Treasury on these securities a few years ago.

Source: Business in Cameroon

18, April 2024

Cocoa Farmer Household Income New Methodology: Any hope for African farmers? ⁰

The World Cocoa Foundation (WCF) on April 3, 2024, announced the launch of an important new methodology for measuring cocoa household income and living incomes. Led and funded by WCF and the German Federal Ministry for Economic Cooperation and Development (BMZ) in collaboration with the German Development Cooperation (GIZ) and the Swiss Platform for Sustainable Cocoa (SWISSCO), the methodology is expected to go a long way in help experts and actors in the cocoa sector gain a better understanding of the impact of sustainability interventions on cocoa farmer households and the environment.

The methodology was delivered by Wageningen University & Research (WUR) and the Royal Tropical Institute (KIT) who partnered with the Centre Ivoirien de Recherches Economiques et Sociales (CIRES) and Etudes de Marché et Conseils (EMC) from Côte d’Ivoire. Until recently, there has not been any authoritative way to measure cocoa farmer household income across the sector, yet accurately measuring cocoa farmer household income is key to understanding the impact of sustainability interventions on cocoa farmer households and the environment.

Existing methods still struggle to account for the costs of cocoa production and to capture non-cocoa income whilst data gathered by individual companies offers a picture based solely on their direct supply chains – leaving cocoa growers, especially in African countries where data does not drive processes and there are no organized systems, in the indirect supply chain underrepresented. Individual data gathering by companies and other institutions also currently relies on a variety of different methods.

This new methodology solves many of these challenges and offers a standard that can be applied to all future studies, research and data collection to make them more widely comparable and better representative of the sector as a whole. It includes groups that have not been intensively involved in sustainability interventions in the past as well as underrepresented groups such as sharecroppers, women and cocoa farmers on the African continent who are not in the indirect supply chain.

It also includes robust means of collecting data on diversified household income that does not stem from cocoa. The methodology was completed with inputs from numerous stakeholders across the cocoa sector including the Alliance on Living Income in Cocoa (ALICO), Living Income Community of Practice (LICOP), representatives from producing country governments, NGOs and civil society organizations and WCF member companies. It is designed to determine the living income status of cocoa farming households and the impact of sustainability interventions on household incomes. These two elements are essential to defining and aligning stakeholders’ efforts around the interventions that are most effective.

“To understand what works in helping raise cocoa farmers’ incomes we first need to be able to consistently measure how activities affect those incomes,” said Michael Matarasso, WCF Director of Monitoring and Evaluation. “This methodology gives everyone in the sector a firm foundation to stand on and will help us to drive collective progress to improve cocoa farmers’ incomes.”

As the second phase of this collaboration, WCF, GIZ and SWISSCO will use this methodology to conduct baseline studies on cocoa farmer household income in three landscapes in Côte d’Ivoire. WCF will implement an income study in the Yapo Abbé Forest, GIZ in Bossématié whilst SWISSCO plans to deliver a cocoa household income study in the Cavally Forest Reserve in having recently completed an income study in Ghana aligned with this new measurement methodology. Similarly, other academic institutions, companies and government agencies can use the methodology in their own research and data collection, reinforcing a common standard for the entire industry.

“This methodology is important as it enables evidence-based policy and intervention design based on the analysis of good quality data for different household groups. We hope that it contributes to greatly reducing or closing the living income gaps of farming households,” said Yuca Waarts, Senior Researcher at Wageningen University & Research.

Lisa Kirfel-Rühle, overseeing cocoa supply chains at BMZ, emphasizes the significance of the methodology, stating: “Through this methodology, we and our partners advocate for standardized high-quality income data of cocoa farmers to strengthen political discourse, whether past interventions have been sufficient to ensure decent incomes for cocoa farmers in Côte d’Ivoire or whether we still have to address imbalances in value chain distributions.”

“Helping cocoa farmers succeed requires everyone in the cocoa sector to work together. Therefore having a common methodology to measure and compare the income of cocoa farmer families is important to accurately understand their economic situation,” said Nicoletta Lumaldo, Manager Innovation and Member Engagement at SWISSCO.

The new methodology measuring cocoa farmer household income is the result of several months of work and deep collaboration among all the organizations involved.

Culled from WCF By Cecilia M. Manjang

18, April 2024

4th Cameroon Investment Forum opens in Douala ⁰

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

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

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

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

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

Source: Xinhuanet