Doing Business In Cameroon
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1 Doing Business In Cameroon Political and Social climate, Business Opportunities and Tourism Michel KANGMENI Managing Partner 1
2 CONTENT 1.Brief history of Cameroon. 2.Current socio-demographics 3.The map of Cameroon 4.Reasons to do business in Cameroon 5.Economic and business environment 6.Companies and Investors 7.Exported products 8.Touristic and Leisure sites 2
3 BRIEF HISTORY OF CAMEROON The name Cameroon is derived from the Portuguese word, Camaroes, meaning shrimps. It was from this word that the territory derived its name which is now spelt in various forms: Spanish spells it Cameroes; Germans, Kamerun; English, Cameroon; and French, Cameroun. The territory was colonized by the Germans in1884 and after the end of the war, Cameroon was mandated by the League of Nations to the French and British governments. France took the greater sector, formally known as East Cameroon, while Britain took responsibility over former West Cameroon known then as "Cameroon under British Administration". February 11th 1961 : a plebiscite for reunification, gave southern Cameroon and Eastern Cameroun Independence on October 1st After a May 20,1972 referendum, Cameroon became a United Republic and, by a Presidential Decree of 1984 it became the Republic of Cameroon. 3
4 Current Socio-Demographics Cameroon is situated at the Gulf of Guinea on the west coast of Africa. It cover a surface area of 475,440 square kilometers with over 1200km of coastal line with the Atlantic ocean. A bilingual nation with French and English as official languages Population :19.4 million (2010) It is made up of 10 Regions Economic Capital : Littoral region (DOUALA) with a population of over 2.5 million Political and Administrative : Centre Region (YAOUNDE) Over 40% of population aged between 15 and 60. Border countries: Central Africa Republic, Chad, Republic of the Congo, Equatorial Guinea, Gabon, Nigeria. 4
5 Tchad MAP OF CAMEROON Nigeria Central African Republic Equatorial Guinea Gabon Rep of Congo 5
6 Reasons to do Business in Cameroon Cameroon is the largest economy in Central Africa and currently occupies the 161 world ranking in the best country to do business in. Cameroon is blessed with abundant natural resources (oil, gas, bauxite, gold ) A transparent legal system that guarantee freedom to invest and the protection of investors, ensuring free transfer of income from invested capital Modern means of communication: roads and railways networks linking the different areas of the country,-air transport network that links Cameroon to nearly all European and African capitals 6
7 Reasons to do Business in Cameroon(cont ) Measure taken to facilitate the creation of companies by the existence of a one-stop-shop that streamlines administrative procedures. Newly created companies are exempt from business license and other tax exemptions for the first two (2) years into business. A vast and ambitious program of privatization of public and parastatal enterprise; A.E.S Sonel,Camwater, just to list a few. Cameroon has an important consumer market and it is a gateway to Central Africa and out to the world through its two (2) deep sea ports 7
8 Economic and business environment Cameroon has a diversified business atmosphere. It is the breadbasket of Central Africa and also known by the name 'Africa miniature It is the hub of Central African market with over 60% of her farm products been exported to neighbouring countries. Cocoa, Banana, Coffee, Timber, Rubber, cotton, Gold, Aluminum, Iron ore and Hydrocarbon products. 8
9 Some Exported Products COCOA COFFEE COTTON BANANA RUBBER 9
10 Companies and Investors The top 10 production companies in Cameroon in terms of turnover (in $million). Ranking Company Turnover 1 National hydrocarbon company (SNH) National refinery company (SONARA) Cameroon brewery company (SABC) AES Africa Power co Ciment producing Company Cameroon (LA FARGE) 6 Cameroon Aluminum Company (ALUCAM) Cotton Development company Cameroon Railway (Camrail) Sugar Producing Company (SOSUCAM) Aluminum transformation Company (SOCATRAL) 98 10
11 Companies and Investors The top 10 service companies in Cameroon in terms of turnover. Ranking Company Activity 1 MTN Cameroun Telecommunication 2 Orange Cameroon Telecommunication 3 CAMI Toyota Automobile distribution 4 SHO Cameroon Automobile distribution 5 Ader Cameroon General commerce 6 Douala Autonomous sea port Logistics 7 Cameroon water Portable drinking water 8 Allianz Cameroon Assurance 9 Chanas Assurance Assurance 10 Axa Assurance Assurance 11
12 Touristic and Leisure sites Cameroon is a choice destination with a lot of attractions for any visitor. Seaside Tourism: A 1200 km long coastline of the Atlantic Ocean is very suitable for tourism, with a lot of attractions like colourful bays, rich sandy beaches, a variety of small islets, mangrove vegetation and waterfalls that plunge directly into the ocean 12
13 Touristic and Leisure sites Conference and Business Tourism: Major cities like Douala, Yaounde, and Limbe harbor infrastructure of international standing (conference centres, international hotels, airports etc), for business meetings and business tourism Exotic dishes (roasted fish, ndole ) to Luncheon after a busy day 13
14 End Thank you 14
15 Relevant information Firm: Service Packages: Auditec-Foirier Consulting, Cameroon Audit & Accounting, Business & investments Advice, Mergers & Acquisitions, Taxation Contacts: 96 Street, Flatters Building suite Postal box: Douala, Cameroon Tel: (+237) / Fax: (+237) / web: info@auditecconsulting.com 15
16 Independent Member INVESTMENT CODE OF CAMEROON I-SCOPE OF APLICATION Any individual or corporate body regularly established in Cameroon may apply for an Investment Code regime when carries out of the following activities: Processing of raw materials resulting in the production of a finished or semi-finished good; Extraction and processing of mining resources; Processing of hydrocarbons; Agricultural and agro-industrial production; Clothing industry; Animal breeding; Industrial and small scale fishing; Processing of agricultural, animal and fish products; Construction of building industry and pubic works; Maintenance of material for the building industry and pubic works; Maintenance of industrial equipments with emphasis on the manufacture of spare parts; Naval repairs; Technological research and data management; Hospital and pharmaceutical laboratories, testing, analysis and control laboratories of raw materials, finished or semi-finished products used or produced by the industry; Lodging establishments likely to be classified in accordance with the regulations in force; Restoration and leisure establishments which converge with the tourist establishment or: when they are located on site where its tourist importance is recognized by the Ministry in charge of tourism; Touristic agencies approved in accordance with the regulations in force. Any enterprise pursuing an activity in the area of research and/or exploration of mining including hydrocarbons, the benefits of which shall be fixed by a separate instrument, any service oriented activities not mentioned in sub paragraph (1) and specially in the area finances, schools, maintenance and repairs of any kind, pressing and research cabinets shall be exempt from the scope of application of part III of this ordinance. BKR MEETING, South Africa, March 2012 [Type text] [Type text]
17 Independent Member II SPECIAL SCHEMES BASIC SCHEME, Duration: 8years SME SCHEME, Duration:..10 years STRATEGIC COMTANIES SCHEME, Duration:..17years REINVSTISSEMNT SCHEME: (cf. Section 139 to 142 of the GTC). III SCHEMES AND ADVANTAGE BKR MEETING, South Africa, March 2012 [Type text] [Type text]
18 Independent Member WORDING DURATION PARTICIATION FISCALS ADVANTAGES Basic Scheme 8years - job creation r bracket of 10 millions francs invested: Tax advantages for the 3 first scheme - annual exports accounting for least 25% of the turnover exclusive of taxes; - Use of national resources to the tune of at least 25% of input value. During the installation phase - exemption from registration duties; - capital increase procedures; - lease of buildings for professional use; - exemption form duties for the transfer of building and land. SME scheme 10years - creating permanent Cameroonian jobs to the tune of on job per programmed Investment of CFA F 5 millions; - an investment level less than or equal to CFA F millions; - participation of Cameroonians or a Cameroonian law body corporate at least equal to 35% of share capital During the operational phase Reduction of: % of tax corporation tax (CT) - 50% of tax on industrial and Commercial Benefits (ICB) - 50% of tax on proportional tax on Real Estate Capital income (RECI); - Carrying over to the results of the following five fiscal years of the deficit due to charging amortizations which are usually taken into account during first three years. Strategic Companies Scheme 17years -priority activity of the Industrialization master plan (IMP); - annual exports to the tune at least 50% of turnover exclusive of taxes; Specific Advantages for SME and strategic schemes only. Reduction of taxable income equal to 25%of the amount of Cameroonian salaries. - use of local natural resources to the tune of at least 50% of input value; creating permanent Cameroonian jobs to the tune of at least one job per programmed investment of 20 millions CFA F BKR MEETING, South Africa, March 2012 [Type text] [Type text]
19 Independent Member Reinvestment Scheme 3years -companies governed by ordinary law and / or whose special scheme has expired ; -approval in the general tax code; -an investment programme which ensure, increase at least 20% in productivity and in production of goods and service or in permanent Cameroonian staff at the of demand Exemption from registration duties; Tax reduction granted under the general Tax Code (cf. section 139 to 142 of the General Tax Code) BKR MEETING, South Africa, March 2012 [Type text] [Type text]
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