Korea-Cameroon Economic and Energy Cooperation Forum THE INVESTMENT PROMOTION Agency

10th edition of

Korea-Cameroon Economic and Energy Cooperation Forum THE INVESTMENT PROMOTION Agency CAMEROON

REGULATORY FRAMEWORK FOR DOING BUSINESS IN CAMEROON: LAW N°2013/004 TO LAY DOWN

INCENTIVES FOR PRIVATE INVESTMENT IN CAMEROON

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Presented :

OBEN Etienne

Senior Investment Promotion Officer

Investment Promotion Agency Cameroon

Who We Are ²

Public

Date of created : 1^st Septembre 2005 Date Comissioned: 22^nd January 2010

Technical Supervisory: The Secretary General, Presidency of the Republic Financial Supervisory : Ministry of Finance,

Organisation: Board of Directors composed of private / public and civil society personalities.

Boardchair : Dr Diane Acha Morfor

Management : - General Manager: Mrs Marthe Angeline Minja - Deputy General Manager: Mr Boma Donatus

What we do

INVESTMENT PROMOTION Participate in trade and investment missions Promote the brand image of Cameroon

Present investment opportunities in Cameroon to foreign investors

INVESTMENT

LICENSING Grant investment incentives

Follow up investors benefitting from incentives

INVESTMENT FACILITATION AND SUPPORT One-stop-shop for foreign investors

Obtain visas for foreign investors Welcome and orient investors Provide preliminary information on

sectors

POLICY ADVOCACY

Propose to Government measures that can improve the investment climate Work with private sector to address investment climate issues

DATA BANK OF INVESTMENT OPPORTUNITIES

Provide information on investment opportunities Provide project ideas that could be

implemented in Cameroon

MISSIONS OF THE IPA

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Country

indicators

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Land Area : 475, 650 km²

Population: 25.88 ( 2019) million inhabitants Population Growth rate: 2.6% inhabitants per km2.

Population under 20 years: 60.2%

Average population density: 41.81inhabitants per km2 Life Expectancy : 55.6 years

Literacy rate: 61 %

Religions: 56% Christians; 24% Muslims; 30% Animists.

Official Languages: French and English

Currency : Franc CFA

Pegged to the EURO: 1 euro=656 Francs CFA;

1 dollar= 54 Francs CFA GDP: 39 Billion USD (2019)

GDP per capita: 1,507 USD (2019)

Distribution of GDP: Primary= 51%; secondary = 27%; tertiary= 22%

Inflation: 2.5%

Growth rate: 4.1 % in 2020 Exports: USD 3156 millions.

Imports: USD 5061 millions.

Main exports : petroleum, cocoa, coffee, wood, alumina, rubber, banana, cotton,.

World bank group 2019

Highlights Investment Incentives

- Grants Fiscal, Custom, Administrative and Financial incentives to eligible enterprises;

GOVERNED BY

LAW N° 2013/004 OF 18

APRIL 2013 GRANTING INCENTIVES TO PRIVATE INVESTMENTS

Applies to all types of investments except for Down stream Mining and oil and Gas exploration

The law provides simplified eligibility to firms fulfilling any of the criteria below

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For Newly created Enterprises

1- Create atleast one (1) job within a 20 million investment during the installation phase of an eligible Sector

2- Activity of which the annual export is at least 25% of the turnover

3- Use local natural resources, to minnimum of 20% of the value of the inputs in the eligible sector

4- Contribute to the value added of 30% in an eligible sector

For Established Enterprises :

1- an increase in the production of goods up to at least 20% compared to the production of the previous year

2- an increase to the cameroonian staff to the equivalent of at least 20%

of the number of employees before the implementation of the project.

Highlights Investment Incentives

Objectives of the Law

Overview :

To encourage private investment and boost national production. (Section 1(1) )

Specific Objectives:

Facilitate, Promote and attract productive investments

geared towards strong sustainable and shared economic growth as well as job creation. (Section 1(2) )

SCOPE (Section 2)

Investment Operations relating to : - Creation,

- extentsion, - Renewal

- Asset restructuring

- and or conversion of businesses

Incentive s

Tax

Custom

Financial

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Exemption(05 Years) Reductions(10

Years )

Registration Duties

Transfer Duties

VAT

Custom and Tax incentives Common Incentives

Specific Incentives

Exemption from VAT on

Loans Exemption

from Property

Direct Tax Custom Clearance

Special Temporary Importation

Exemption from Export duty for export-oreinted

Companies

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Adminstrative Incentives

Specific Visa desks at Airports

The issuance of residence and work

permits

The issuance of Environmental

Compliance Certificates

The Issuance of land titles and longterm

leases Administrative Incentives

Financial Incentives

Unrestricted Transfer of Dividends

The right to freely keep cash abroad or funds acquired or

borrowed abroad

Free transfer of dividends and proceeds from the sale of shares

in case of disinvestment Financial Incentives

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Cameroo n?

WHY INVEST IN CAMEROON ?

 Political Stability

 Voluntarist Economic policy

 Strategic geographical position and access to regional markets: CEMAC, CEDEAO, SADEC

 Well managed private Sector with a huge production potential

 Abundant ,Qualified Workforce

 Reasonable well developed infrastructures

 Guaranteed Investment protection

 Political backing for Productive Investment

 Institutions Set up to combat Corruption

Cameron offers an attractive environment and a number of opportunities for investors to make profitable investments

Reasons to invest include :

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Key statistics on our economy

Cameroon’s economy remains resilient at a growth rate of 4,1%

despite the unfavorable economic conditions in CEMAC. 

36 ^th 12

Worldwide

5th

exporter

20 M

60

Employable population

Cotton Export

Cameroon is the worlds 12^th biggest exporter of cotton with 320 000 tons produced in 2018-2019

AGRIPOTENTIAL

Ranked 36^th in the world in agricultural potential by the FAO

Cocoa Export

Cameroon is the 5^th biggest exporter of cocoa in the world with about 4 million farmers who produce and export over 120 000 metric tons per year

Rainforest Cameroon possesses the second

largest forest in Africa with an estimated 22 million hectares or 46,3% of the country’s territory

AGRI-EMPLOYMENT

Agriculture employs over 60% of the country’s workforce

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Energy Potential and opportunities

HYDRO-ELECTRICITY

Cameroon's hydroelectric potential is estimated at 23,000 MW, the 3rd largest energy potential in Africa south of the Sahara, of which 75% is in the Sanaga river basin in the north of the country; but only 3% of this potential is exploited

Opportunities in hydro include: the Njock, Warack and Noun-Wouri dams. The Njock power station, on the Nyong River, will cover six regions (Center, South, Littoral, West, South-West and North-West), with an estimated capacity of 200 MW for a total cost of FCFA 180 billion (€ 270 million).

Solar Energy

Cameroon has enormous potential in terms of solar energy. Its sunshine is a great source of electrical energy. The country has in fact an abundant and available potential, especially in its northern part. The average insolation in this part of the country is 5.8 kWh / m2 / day and 4 kWh / m2 / day in its southern part.

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Other Opportunities in Energy value chain

• Distribution ( Manufacturing of Concrete Poles, Cable manufacturing , maintenance)

• Natural Gas

• Geothermal

• Wind

BIOMASS

Another of Cameroon's impressive energy potential is

biomass. Located in the Gulf of Guinea, part of Cameroon's territory is in the Congo Basin, considered the second

largest reserve of biomass in the world behind the Amazon. This position offers the country enormous possibilities for the production of electricity from this source

of energy

ENERGY COMPANIES BENEFITING FROM THE

INCENTIVES LAW ¹²

N° COMPANY NAME PROJECT LOCATION ENERGY PRODUCTION

OUTPUT AMOUNT IN BILLION XAF

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GDS ORION SOLAR

Darang, N'gaoundéré Vina division Adamaoua

Region 20 MW 15

2 HYDROMINE CAMEROON

LIMITED

Grand Eweng Songmbengue, Douala

Littoral Region 962 MW 750

3 MAROUA-GUIDER SOLAR

COMPANY SARL Maroua and Guider,

Extreme North Region 25 MW 13

4 NACHITIGAL HYDRO

POWER COMPANY Nachtigal-Nyom 2

Centre Region 420 MW 700

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GREEN ENERGY

CAMEROUN SA (GRENOR) Ngodi-bakoko , Littoral

REGION 50 MW 109

6 EB SOLAR Garoua 30MW 22

Total 1.609 Trillion

XAF

THANK YOU FOR YOUR KIND ATTENTION

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