01 Mar 2023 /

Interview with the Prime Minister of Cameroon, Joseph Dion Ngute

Invest in Cameroon: “Cameroon has very good opportunities for foreign investors”, says Prime Minister of Cameroon Joseph Dion Ngute

 

The AFRICA CEO FORUM, in collaboration with Ecobank and its partner Proparco, held a digital event centred on Cameroon on Thursday 23 February. The Invest in Cameroon event was honoured to welcome His Excellency Joseph Dion Ngute, Prime Minister of Cameroon, as one of its speakers. Prime Minister Ngute spoke of the many investment opportunities in Cameroon and the policies in place to attract investors.

 

Invest in: Cameroon is one of the most dynamic economies on the continent. How has your country managed to stay afloat in this unpredictable and challenging global environment?

 

PM Joseph Dion Ngute: I would first like to give a brief overview of Cameroon. Cameroon, often called ‘Africa in miniature’, is the most populated country in the Economic and Monetary Community of Central Africa (CEMAC). It has a strategic position at the intersection of West and Central Africa. The country boasts a good level of stability and security, and pleasant interactions among citizens. It also enjoys an equatorial and tropical climate in its southern and northern regions. Cameroon has many large cities, with Yaoundé as the political capital and Douala as the capital for economic affairs. We have a diversified economy and our President strives to significantly improve living conditions for our people.

(1’30”) Continuing on the question of Cameroon’s resilience, the situation in the country can be attributed to the implementation of major strategic initiatives on large infrastructure projects and support for sectors that have a domino effect on the entire economy. These are the strategic pillars of His Excellency President Paul Biya’s economic policies. These policies are founded on the diversification of the economy, the promotion of the import substitution policy coupled with increased developments for the country’s export capacity, and careful management of public finances. The President has also rolled out a range of proactive measures to help households with rising cost of living and support the private sector in facing the prevailing economic crisis.

The Government, with the help of its technical and financial partners, has also launched numerous structural and institutional reforms, which have contributed to keeping Cameroon on the path of social progress and development.

 

Foreign direct investment in Cameroon reached a new high of 83 billion in 2021, versus 39 billion in 2020 and 37 billion in 2019. But FDI is often aimed at the extractive industry. How can this type of investment be extended to other sectors such as infrastructure, agriculture and services?

 

In African countries, we know that the extractive industry has immense potential. It can contribute to economic growth and increase public revenue. In Cameroon, growth in 2022 stood at 3.4%, compared to 3.6% in 2021. The slowdown in the global economy and restrictive financial conditions linked to reduced capital on the international market negatively impacted our economic recovery.

Although the mining sector is still a pillar of the national economy, major work has been carried out following decisions from the President to diversify the ways in which foreign direct investments are used in the country. I would like to focus on two of Cameroon’s strategies, namely the improvement of the country’s business climate and the development of incentives for entrepreneurs to invest in the country.

As it relates to improving the business climate, a close partnership between the public and private sectors was established to respond to the issues of Cameroon’s private sector, which is often seen as the growth driver of the economy. Between 2009 and 2018, for example, the Government successfully led 83 reforms based on the recommendations of the Cameroon Business Forum, a key promoter of dialogue between the public and private sector. These reforms addressed areas such as trade dispute settlement, investment promotion, governance, taxes and access to property. Today, our private sector partners in Cameroon have almost unanimously agreed that these reforms have substantially contributed to strengthening the business climate.

As it relates to business incentives, a legal and regulatory framework was established so that businesses can maximise the return on their investments. The framework is based on the law of 18 April 2013 that sets out the incentives for private investments in Cameroon. The provisions of the law apply to investors who wish to create, extend, renew or renovate assets, or transform business activities. Both tax and customs incentives are available during the installation and operation periods.

By carefully listening to the concerns of private investors, the Cameroonian Government makes particular efforts to develop solutions based on their grievances. In light of this, it is undeniable that Cameroon is a key destination for investments to flourish in the areas of infrastructure and agriculture.

 

In 2020, on the back of the growing momentum, your Government launched its 2020-2030 National Development Strategy which will benefit a wide array of industries. Could you speak about them and tell us about the expected foreign direct investment?

 

The 2020-2030 National Development Strategy is part of our plan to meet the objectives of vision 2035, which aims to make Cameroon a democratic, emerging country that is united in its diversity. The main components of this strategy are aligned with the President’s socioeconomic programme. I would like to emphasize the development of the import substitution policy and the facilities upgrading work aimed at boosting the private sector.

Their effects can be seen through the acceleration of certain industries and sectors which are the foundation of our economy’s structural transformation. Such areas include the industrial and services sector, subsectors such as energy, agro-industry, digital technology, forestry and timber, textiles, clothing and leather manufacturing, mining, metalwork, steel, petrochemicals, oil refining and pharmaceuticals. In terms of agricultural productivity, attention is given primarily to rice, corn, cocoa, coffee, palm oil, bananas, plantains and cashews. The main infrastructural areas concerned are energy, transport, telecommunications, water, urban sanitation and housing.

Let us now examine the financial aspect. Financing for the National Development Strategy comes from varying sources. The private sector’s own resources and the public-private partnership play a key role in this regard. I must admit that the Government is counting on the contribution of both the national and international private sector to meet its development goals. Private partners are being called on to invest more than 60% of the resources necessary to accomplish the structural transformation mentioned in our National Development Strategy. This represents 52,800 billion CFA francs out of a total 88,000 billion.

One of the sources to fund our strategy is the transfer of funds from the diaspora. According to the World Bank, in 2018 Cameroon received a total 345 million US dollars in transfers from its diaspora, which were mainly geared towards helping their families with day-to-day expenses. Through appropriate policies, the Government intends to promote using funds from the diaspora – otherwise used to boost family income – as a means to invest in certain sectors of the economy.

 

And finally, what would you like to say to potential investors who are interested in Cameroon?

 

Firstly, I must say that Cameroon has very good opportunities for foreign investors. Those who came to Cameroon out of curiosity have ended up staying long term out of conviction. And they are right to do so.

Cameroon has a strategic and advantageous geographical position. The country is politically stable and safe. Cameroon’s macroeconomic and budgetary environment is performing well, as confirmed by international organisations. Its growth outlooks are promising. The diverse investment opportunities are supported by a regulatory framework with a variety of incentives. And of course, the Cameroonian workforce is young, qualified and available – which is a huge plus.

Cameroon is an attractive country where private companies should set up operations, invest and benefit from the win-win partnership mentioned by our President during the opening ceremony of the Yaoundé Economic Conference. I will end by quoting President Paul Biya, “Some investors bring their ability to finance and their technology. Others can offer unique opportunities and valuable resources through fair and equitable trade”.

 

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