CPDM Crime Syndicate: France flags payment delays as risk to investment climate ⁰

France has raised concerns with Cameroon over delayed payments to French companies working on public contracts, flagging the issue as a growing strain in economic ties between the two countries.

Following talks with Cameroon’s finance minister, Louis Paul Motaze, France’s minister delegate for foreign trade and attractiveness, Nicolas Forissier, identified the issue as a key obstacle to expanding business relations.

“There is an important issue that needs to be resolved if we want to bring in more companies or build new partnerships, and that is the fact that payments are sometimes delayed,” he said.

Behind the warning is a recurring problem: late settlement of government contracts. French authorities say these delays weigh on investor confidence and make the business environment harder to assess.

Cameroonian officials acknowledge the issue, particularly in the public works sector. A senior official at the Ministry of Public Works said the state owes tens of billions of CFA francs to a French company involved in urban and intercity road projects. Such arrears have fueled concern among companies operating in the country, even as investment needs remain high.

For Paris, the issue goes beyond unpaid bills.

Faster settlement of public debts is seen as a direct way to improve the business climate. “There are always reasons, I understand that perfectly, but anything that helps eliminate payment delays also improves the attractiveness of Cameroon’s economy,” Forissier said.

France is offering to deepen technical cooperation with Cameroon, particularly in public financial management and administrative processes, to help reduce payment timelines. “France is ready to provide its expertise to find solutions that improve the business climate and encourage more French companies to invest in Cameroon,” he added.

Paris has also pointed to broader concerns about the investment environment. Forissier cited “certain uncertainties” that may be holding back economic activity, including the need for greater predictability, transparency, and clarity in regulations.

He also highlighted issues related to regulatory stability, administrative processes, and corporate taxation, suggesting that improvements in these areas would help create a more stable and attractive environment for long-term investment.

France remains a major economic partner for Cameroon. According to Forissier, it is the country’s sixth-largest trading partner, with more than 200 French companies operating locally and employing over 20,000 people.

Trade between the two countries reached nearly CFA1,000 billion (about €1.5 billion) in 2023, according to French government data. That figure was down 9% from 2022 but up 57% compared with 2015.

Over the same period, French exports to Cameroon fell 11% to CFA376 billion, while imports from Cameroon declined 9% to CFA602 billion, leaving the trade balance in Cameroon’s favor.

For France, the priority is clear: maintain strong economic ties while securing progress on payment timelines, regulatory clarity, and administrative stability—conditions seen as essential to restoring investor confidence.

Source: Sbbc