Business

6, January 2025

Biya regime removes VAT on locally produced flours ⁰

Locally produced flours made from corn, yam, cassava, and plantain are now exempt from Value Added Tax (VAT). This new policy, outlined in the 2025 finance law and confirmed by the General Directorate of Taxes (DGI), is expected to lower the price of these products on the market by 19.25%, which matches the current VAT rate in the country.

The government sees this move as part of its strategy to promote “import substitution.” By encouraging the production of local flours, Cameroon aims to reduce its reliance on imported wheat, one of the country’s most imported food products, alongside rice. This dependency has heavily contributed to the country’s trade deficit.

In 2023, although imports dropped by 31.6% compared to the previous year, Cameroon still spent CFA178.3 billion on wheat imports, down from CFA260.7 billion in 2022. France remains the top supplier of wheat to Cameroon, followed by Poland, Russia, and Germany. Notably, Poland saw a 9% increase in wheat exports to Cameroon in 2023.

To lessen the country’s dependence on imported wheat, particularly for bread production—which is one of the most widely consumed foods in Cameroon—the government has been promoting local flours in recent years. Before removing VAT on these products, the government had already modified bread production standards, allowing up to 15% of local starch-based flours, such as cassava and yam, to be blended with wheat flour. The long-term goal is to gradually replace wheat flour with local flours in bread-making.

In 2023, the Ministry of Youth launched a training program for trainers in local flour processing, with the aim of teaching at least 378 young Cameroonians to make pastries using locally produced flours. In line with these efforts, a platform for local producers was established in 2022, with a target of producing around 5 million tons of high-quality products by 2030. However, this target seems ambitious, given the current pace of local flour production.

In his national address on December 31, 2024, President Paul Biya announced that 12,800 tons of local flours were produced in Cameroon in 2024. In comparison, the country imported 887,400 tons of wheat in 2023, according to the National Institute of Statistics (INS).

Achieving the goal of producing 5 million tons within five years will require significant investments, especially from millers whose factories are mainly designed to process wheat. As Alfred Momo Ebongue, Secretary General of the Cameroon Millers’ Industry Group (GIMC), pointed out, mills will need to be redesigned or adapted to process local tubers like cassava, yam, and potatoes instead of just wheat.

Source: Business in Cameroon

18, December 2024

IMF urges further actions after CEMAC Summit ⁰

Reacting to the outcomes of the extraordinary summit of the Economic and Monetary Community of Central Africa (CEMAC) on the region’s economic situation, the International Monetary Fund (IMF) has commended the commitment of the heads of state while urging “further actions.” These additional efforts, the IMF stated in a December 16 communiqué, should focus on “rebuilding buffers, enhancing public finance sustainability and transparency, mobilizing non-oil revenues, and addressing debt vulnerabilities.” The organization also reaffirmed its readiness “to support the region in achieving sustainable and inclusive growth.”

The extraordinary summit, held in Yaoundé, was reportedly convened at the insistence of the IMF. The Bretton Woods institution had raised concerns about declining foreign exchange reserves in the CEMAC region. These reserves increased from 2.3 months of imports in 2016 to 4.6 months in 2023 but showed a “downward trend” in 2024, according to the Cameroonian presidency.

Observers believe the IMF’s broader aim for the summit was to encourage Equatorial Guinea, Gabon, and Chad to join its Economic and Financial Reform Program, which Cameroon, the Central African Republic, and Congo-Brazzaville are already part of. Reflecting this objective, one of the summit’s recommendations called on “other member states to formalize agreements with the International Monetary Fund as soon as possible to benefit from its support and that of other technical and financial partners.”

Abebe Aemro Selassie, Director of the IMF’s Africa Department, emphasized the need for “bold actions,” particularly in improving transparency in public finances and the oil and gas sectors. He also reiterated the importance of CEMAC’s fixed exchange rate regime, which he noted “continues to serve the region well by effectively anchoring inflation expectations and reducing uncertainty associated with international trade and investment.” Selassie welcomed the renewed commitment to external sustainability, describing the summit as a pivotal step forward.

“This Heads of State Summit has laid the groundwork to advance critical discussions on regional policy assurances and on safeguarding regional macroeconomic stability,” he stated. Selassie added that IMF staff, along with national and regional authorities, are continuing discussions to align on efforts to improve CEMAC’s fiscal adjustment path, preserve external reserves, and strengthen debt sustainability.

Source: Sbbc

18, December 2024

BEAC increases liquidity injection to meet bank demand ⁰

The Bank of Central African States (BEAC) conducted a new liquidity injection operation for commercial banks on December 17. This time, the central bank offered CFA220 billion, a rise of CFA60 billion compared to the previous operations on December 3 and December 10.

This increase in liquidity follows a prior reduction of 50%, when the offer dropped from CFA320 billion to CFA160 billion between late November and early December. The adjustment comes amid a renewed interest from banks in BEAC’s refinancing operations. For example, on December 3, the BEAC offered CFA160 billion, but the banks requested CFA224.8 billion. Similarly, on December 10, the entire CFA160 billion made available was taken up, yet not all banks could meet their financing needs, which totaled CFA162.8 billion.

This renewed interest in the central bank’s refinancing offers in December may be linked to increased demand for bank loans. According to banking officials, the year-end holiday season, a time of high consumer spending, often drives up demand for credit in commercial banks.

Source: Business in Cameroon

18, December 2024

MTN Group announces leadership changes ⁰

MTN Group has announced key leadership changes aimed at addressing succession, operational execution, and advancing the Ambition 2025 strategy.

Mitwa Ng’ambi, CEO of MTN Cameroon, will move to the same position at MTN Côte d’Ivoire, effective 1 March 2025, as Djibril Ouattara takes early retirement. We thank Djibril for his significant contributions to MTN, including his leadership of MTN Congo-Brazzaville. To ensure an orderly handover, Djibril will support Mitwa during her transition for a few months.

Mitwa brings over 15 years of telecom experience and transformational leadership, having served as CEO of MTN Cameroon since September 2022. She is also the Board Chairperson of Mobile Money Corporation, MTN’s fintech subsidiary in Cameroon. Prior to her role in Cameroon, Mitwa was CEO of MTN Rwanda, where she successfully led the renewal of the company’s licence and spearheaded its growth and listing on the Rwanda Stock Exchange. Previously, she held leadership positions at Airtel Tigo in Ghana and Tigo in Senegal. Mitwa’s experience and track record will add impetus to the growth and turnaround of MTN Côte d’Ivoire.

Wanda Matandela, Chief Commercial Operations Officer at MTN South Africa, has been appointed as the new CEO for MTN Cameroon, effective 1 March 2025. Wanda joined MTN in 2018 as Chief Enterprise Business Officer and drove the turnaround of this business. With over 20 years of experience, including more than 13 years in telecoms, he has held strategic roles across the FMCG and financial services sectors. Wanda serves on the boards of Supersonic (Pty) Ltd and MTN Rwanda PLC. His strong commercial and stakeholder management experience will be invaluable as he builds on the high impact and energy created under Mitwa’s leadership, bringing new capabilities and insights to drive growth in Cameroon.

Effective 1 January 2025, Mazen Mroue, MTN Group Chief Technology and Information Officer (GCTIO), will assume additional responsibilities as CEO of Digital Infrastructure (Infraco). This new role will incorporate the mobility and fibre businesses of Bayobab, along with executing our data centre strategy as we position MTN Group for growth and profitability in the development of AI across Africa. In this dual role, he will continue to report to the Group President and CEO and remain a member of the Group Executive Committee.

Since joining MTN in 1998, Mazen has held various senior positions within the Group’s regional operations in Africa and the Middle East, including CEO and COO roles across multiple operating companies. He has also served as a board member of various companies within the MTN Group. Mazen’s strong technology and operational experience, combined with his track record of delivery, positions him well to fulfil this dual mandate.

Frédéric Schepens, current CEO of Bayobab, will be leaving the group effective immediately. We thank Frédéric for his contributions and wish him success in his future endeavours.

MTN Group President & CEO Ralph Mupita extends his best wishes and appreciation to all incoming and outgoing colleagues, expressing confidence in the internal succession bench-strength of the business. He emphasises the importance of driving execution and maintaining our commitment to digital and financial inclusion priorities across our markets.

Source: Techafricanews

17, December 2024

WTO commends Cameroon’s ratification of fisheries subsidy law ⁰

During the opening ceremony of the 5th annual session of the General Council of the World Trade Organization (WTO) on December 16, 2024, in Geneva, Cameroon officially submitted its law ratifying the Agreement on Fisheries Subsidies. The law, adopted by Cameroon’s Parliament in June, was formally handed over by Cameroon’s ambassador, Salomon Ehet, Permanent Representative to the United Nations Office, the WTO, and other international organizations in Geneva, to WTO Director-General Ngozi Okonjo-Iweala.

“I warmly welcome Cameroon’s formal acceptance of the WTO Agreement on Fisheries Subsidies, a critical step toward protecting our oceans and ensuring sustainable fishing practices,” said Okonjo-Iweala.

The WTO Director-General also emphasized the significance of this move for small-scale fishing: “As the proud host of the WTO’s 14th Ministerial Conference in 2026, Cameroon is demonstrating leadership in advancing global trade and environmental sustainability. This agreement is especially vital for artisanal fishers in Cameroon and around the world, safeguarding their livelihoods by curbing harmful subsidies and preserving marine ecosystems for future generations.”

The Cameroonian government had submitted the bill to Parliament in June 2024 to ratify the amendment to the Marrakesh Agreement establishing the WTO, which focuses on regulating fisheries subsidies. The agreement, signed on June 17, 2022, aims to combat illegal, unreported, and unregulated (IUU) fishing, a challenge for Cameroon’s coasts, often exploited by foreign fishing fleets.

By ratifying the agreement, Cameroon commits to providing detailed information on its fisheries subsidies and benefits from a two-year exemption period to comply with disciplines related to IUU fishing subsidies. Additionally, the country will receive technical assistance to strengthen its capacities and access to a voluntary WTO funding mechanism dedicated to this support.

Ambassador Salomon Ehet highlighted that Cameroon’s adoption of the law is “a compelling testament to governance that is both relevant and geared towards the protection of the environment in all its forms, while remaining committed to developing the maritime fisheries sector. This initiative, which aligns with Cameroon’s National Development Strategy (NDS-30), further stands as a strong symbol of the country’s commitment to hosting a successful Ministerial Conference (MC14) in 2026.”

The 14th WTO Ministerial Conference is scheduled to take place in Yaoundé from March 26 to 29, 2026.

Source: Business in Cameroon

17, December 2024

Douala: Sanlam and Allianz finalize merger to form SanlamAllianz ⁰

German insurer Allianz and South African insurer Sanlam officially announced their merger. The merger, which was finalized after an extraordinary general meeting of their Cameroonian subsidiaries on July 22, has created two new companies: SanlamAllianz Cameroun Assurances, which handles general insurance and is led by Olivier Malatre, and SanlamAllianz Cameroun Assurances Vie, which focuses on life insurance and is headed by Laya Sidibé.

“The insurance market in Cameroon is growing rapidly, with increasing demand for more diverse services and customized solutions. The merger between Sanlam and Allianz meets this demand by combining the strengths of two industry leaders. Sanlam brings deep knowledge of the African market, while Allianz contributes global expertise and technological innovation. Together, they create a synergy that will greatly benefit the Cameroonian population,” said Heinie Werth, CEO of SanlamAllianz.

SanlamAllianz now holds a significant position in Cameroon’s insurance market, with over CFA51 billion in revenue. More than CFA26 billion comes from SanlamAllianz Cameroun Assurances Vie, based on 2023 data. With the country’s total insurance market revenue reaching CFA272.5 billion at the end of 2023, according to the Association of Insurance Companies of Cameroon (ASAC), SanlamAllianz now controls 18.7% of the market.

The merger agreement was first announced on May 4, 2022, in a statement released on the Johannesburg Stock Exchange. Sanlam, Africa’s largest listed insurance group, had reached a deal to combine its pan-African operations with German group Allianz.

According to the terms of the agreement, Continental-Re, a reinsurer also operating in Cameroon, is not included in the deal. It remains under Sanlam’s ownership, as the group acquired it in 2018 after purchasing Moroccan insurer Saham.

The agreement also states that Allianz holds a 40% share in the newly formed entity, with an option to increase its ownership to 49%. The remaining shares remain under Sanlam’s control.

Source: Business in Cameroon

6, December 2024

Cameroon truck drivers ask military to protect goods destined for CAR ⁰

Road transport has failed to fully resume between Cameroon and the landlocked Central African Republic after a top-level crisis meeting this week to reopen borders sealed by Cameroon following escalating violence in C.A.R. Hundreds of truck drivers say they will cross into C.A.R. when government troops protect them from rebels.

Several hundred truck drivers who left Cameroon’s Douala seaport for Bangui, capital of the Central African Republic, say they are stranded in Garoua-Boulai, a town on Cameroon’s eastern border with C.A.R.

C.A.R. is a conflict-ridden landlocked country that depends on the Douala seaport for about 95% of its goods and humanitarian aid.

One of the stranded truck drivers, 49-year-old Kum Innocent, said all of the drivers who have been in Garoua-Boulai for over two weeks have agreed to stop shipping goods and humanitarian assistance into C.A.R. because their lives are regularly threatened by armed gangs operating there.

“We can’t enter Bangui right now because of the insecurity on the way,” he said. “Armed gangs put [up] road barricades on the way. They even kidnap some of us, and they ask us [for] ransom. Our lorries are blocked down. Many of our merchandise [is] getting rotten, and we are losing a lot. That’s what we go through when we leave Garoua-Boulai for Bangui.”

Kum said that late last month, C.A.R. rebels killed a Cameroonian truck driver and abducted at least two mechanics hired to carry out truck maintenance along the Douala-Bangui road corridor.

Cameroonian truck drivers say they want an immediate release of their kidnapped peers before they resume the shipment of goods to C.A.R.

El Hadj Oumarou, head of Cameroon’s land freight transportation bureau, said several hundred truck drivers stationed in Garoua-Boulai want assurances that the C.A.R. government will take responsibility for their security and safety, as well as the security and safety of their goods and trucks. He said the C.A.R. government is responsible for the safety of every civilian in its territory.

The angry drivers refused to fully resume work after a crisis meeting Wednesday of top Cameroon and C.A.R. government and military officials in Garoua-Boulai. Officials say the crisis meeting was to plead with the striking truck drivers to resume activity.

Cameroon said it had agreed to open the border.

Gontrand Djono Ahaba, C.A.R. minister of Transport and Civil Aviation, attended the crisis meeting. He said he was surprised that drivers are still reluctant to ship goods and humanitarian assistance to C.A.R.

Ahaba said he has informed C.A.R. President Faustin-Archange Touadéra that truck drivers along the Douala-to-Bangui road want assurances of their safety before shipping goods to C.A.R.

He said Touadera has given assurances that the central African state’s military will organize convoys for drivers who feel threatened by armed gangs operating in C.A.R. and attacking truck drivers for supplies.

Speaking on C.A.R. state TV on Thursday, Ahaba said the C.A.R. military had located the trucks abandoned by drivers, adding that the trucks will be restituted, but he did not say when.

Cameroon’s transport minister, Jean Ernest Messena Ngale Bibehe, told Cameroon state TV on Thursday that negotiations have continued for truck drivers to suspend their protest. He assured them that C.A.R. officials have agreed to protect trucks daily and free of charge from Garoua-Boulai to Bangui and back.

C.A.R. descended into violence in 2013, when a rebel group forced then-President Francois Bozize out of office.

Violence among C.A.R. armed groups since then has forced close to a million Central Africans to flee to Cameroon, Chad, the Democratic Republic of Congo and Nigeria.

Source: VOA

3, December 2024

World Bank says developing countries paid record $1.4 trillion on foreign debt in 2023 ⁰

Developing countries spent a record $1.4 trillion to service their foreign debt as their interest costs climbed to a 20-year high in 2023, the World Bank’s latest International Debt Report shows. Interest payments surged by nearly a third to $406 billion, squeezing the budgets of many countries in critical areas such as health, education, and the environment.

The financial strain was fiercest for the poorest and most vulnerable countries—those eligible to borrow from the World Bank’s International Development Association (IDA), the data show. These countries paid a record $96.2 billion to service their debt in 2023. Although repayments of principal decreased by nearly 8% to $61.6 billion, interest costs surged to an all-time high of $34.6 billion in 2023, four times the amount a decade ago. On average, interest payments of IDA countries now amount to nearly 6% of the export earnings of IDA-eligible countries—a level that hasn’t been seen since 1999. For some countries, the payments run as high as 38% of export earnings.

As credit conditions tightened, the World Bank and other multilateral institutions became the main lifeline for the poorest economies. Since 2022, foreign private creditors have received nearly $13 billion more in debt-service payments from public sector borrowers in IDA-eligible economies than they disbursed in new financing. Over the same period, the Bank and other multilateral institutions pumped in nearly $51 billion more in 2022 and 2023 than they collected in debt-service payments. The World Bank accounted for a third of that sum—$28.1 billion.

“Multilateral institutions have become the last lifeline for poor economies struggling to balance debt payments with spending on health, education, and other key development priorities,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President. “In highly indebted poor countries, multilateral development banks are now acting as a lender of last resort, a role they were not designed to serve. That reflects a dysfunctional financing system: except for funds from the World Bank and other multilateral institutions, money is flowing out of poor economies when it should be flowing in.”

The COVID-19 pandemic sharply enlarged the debt burdens of all developing countries—and the subsequent surge in global interest rates has made it harder for many to regain their footing. At the end of 2023, the total external debt owed by all low- and middle-income countries stood at a record $8.8 trillion, an 8% increase over 2020. The percentage increase was more than twice as large for IDA-eligible countries, whose total external debt climbed to $1.1 trillion, an increase of nearly 18%.

In 2023, borrowing abroad became considerably more expensive for all developing economies. Interest rates on loans from official creditors doubled to more than 4%. Rates charged by private creditors climbed by more than a point to 6%—a 15-year high. Global interest rates have since begun to subside, although they are expected to remain above the average that prevailed in the decade before COVID-19.

The latest International Debt Report highlights key insights from the World Bank’s International Debt Statistics database—the most comprehensive and transparent source of external debt data of developing countries. It reflects an upgraded effort to ensure accuracy in the debt data of IDA-eligible economies—by matching data these economies report to the World Bank’s Debtor Reporting System with data held by G7 and Paris Club creditors. This loan-by-loan reconciliation exercise produced a 98 percent match rate in the data, lowering the margin of error from 10 points to just two.

“Comprehensive data on the liabilities of governments can facilitate new investment, reduce corruption, and prevent costly debt crises,” said Haishan Fu, the World Bank Chief Statistician and Director of its Development Data Group. “The World Bank has played a leading role in improving debt transparency across the world, especially in IDA-eligible economies. In 2023, nearly 70% of these economies published fully accessible public-debt data on a government website—a 20-point increase since 2020. That is a hopeful sign for the future.”

Source: World Bank

2, December 2024

Dion Ngute says economy to grow by 4.1 pct in 2025 ⁰

Cameroon’s economy is forecast to grow by 4.1 percent in 2025, up from 3.8 percent in 2024, according to the country’s Prime Minister Joseph Dion Ngute.

Ngute made the announcement while delivering the 2025 state budget to the National Assembly Sunday night.

Cameroon’s draft budget for 2025 stands at 7,317.7 billion Central African CFA francs (about 11.74 billion U.S. dollars), Ngute said, noting that the budget has slightly increased by 0.5 percent compared to that of 2024.

Inflation is projected to fall to 3.1 percent in 2025, down from 4.2 percent in 2024 and 5.1 percent in 2023.

The budgetary plan will remain focused on consolidating the public finance situation, in coherence with the economic and financial program concluded with the International Monetary Fund, he said.

Source: Xinhuanet

20, November 2024

Wall Street falls as Russia-Ukraine tensions raise concerns ⁰

Wall Street’s main indexes dropped on Wednesday, as continued escalation of Russia-Ukraine tensions worried investors, while megacap Nvidia lost ground ahead of quarterly results.

Stocks dipped after a report Ukraine fired long-range British Storm Shadow missiles into Russian territory. That followed Ukraine launching US-made ATACMS missiles into Russia on Tuesday, and Russia announcing it had lowered the threshold for nuclear action.

Wall Street’s “fear gauge” jumped to 18.79 before easing slightly, but it was still trading at its highest since the November 5 US presidential election.

“There’s been more missiles firing between Ukraine and Russia, and the market doesn’t know what to think of that … tensions are escalating, not deescalating and that’s why you’re seeing the selloff in the markets,” said Dennis Dick, trader at Triple D Trading.

Meanwhile, AI leader Nvidia, which is scheduled to report results after the bell, dropped 0.8%, reversing modest premarket gains. The index heavyweight dragged the Information Technology sector as well as the tech-heavy Nasdaq.

Target plunged 20.7% after the retailer forecast holiday-quarter comparable sales and profit below Wall Street expectations following a third-quarter estimate miss.

It dragged down other retailers such as Dollar Tree and Dollar General which fell 3.4% and 4.9%, respectively.

Among other growth stocks, Tesla lost 1.8% and Amazon.com shed 1.7%.

The consumer discretionary and consumer staples indexes lost 1.1% and 0.9%, respectively.

But the spotlight remained on Nvidia, which has nearly tripled in value this year, accounting for about 20% of the S&P 500’s returns over the last 12 months, according to BofA Global Research.

“While expectations for Nvidia are high heading into its latest earnings report, we expect the company to report another strong quarter and live up to these high expectations,” said Clark Bellin, chief investment officer, Bellwether Wealth.

At 10:55 a.m. the Dow Jones Industrial Average fell 40.15 points, or 0.09%, to 43,228.79, the S&P 500 lost 30.00 points, or 0.51%, to 5,886.98 and the Nasdaq Composite lost 123.86 points, or 0.65%, to 18,863.61.

Cryptocurrency stocks ticked higher as bitcoin jumped above $94,000, with MicroStrategy and MARA Holdings up 14.6% and 13%, respectively.

Comments from Federal Reserve officials including Michelle Bowman and Susan Collins are expected through the day.

Traders have increased their bets on the US central bank leaving interest rates unchanged at its December meeting in the wake of strong economic data and signs of persistent inflation. They see a 44.5% chance of a pause next month, according to CME’s FedWatch tool.

Fed Governor Lisa Cook said recent data suggests that more cuts are likely appropriate as disinflation is expected to continue.

Declining issues outnumbered advancers by a 1.85-to-1 ratio on the NYSE and a 1.38-to-1 ratio on the Nasdaq.

The S&P 500 posted 25 new 52-week highs and nine new lows, while the Nasdaq Composite recorded 66 new highs and 107 new lows.

Source: Reuters