Discover the 1st Edition of the IPA Cameroon Investment Forum... The Industrial Sector and Lack of Competitiveness... The Douala Stock Exchange... The Price of Cameroonian Crude Oil and lots more in our November 2015 Newsletter...

1. NEWSLETTER 16
More Than 200 Companies Present at the 1st Edition of the
IPA Cameroo
The first edition of the Cameroon Investment Forum (CIF) opened
November 25, 2015 in Douala, Cameroon's economic capital, with the
participation of over 200 local and foreign businesses. This event
organized by the
the Cameroonian economy
According to the Investme
overall are taking part in this economic event under the theme "emergence
through investment." The first edition of the CIF ends November 27, 2015.
In addition to the large trade fair in which participants compete
expertise, the CIF involves
meetings be
business relationships
Source: adapted from the article “Plus de 200 entreprises présentes à la 1ère édition du
Cameroon investment forum de l’
www.investiraucameroun.com
Taxes Represent 48.8% of Companies’ Operational Results
in Cameroon
The audit and consulting firm PricewaterhouseCoopers (PwC) and the
World Bank publi
study, which provides information on the average taxation level of
companies in Africa. According to this study, where Cameroon holds the
39th
rank out of 52 African countries, the taxation level in the country
represents 48.8% of the business performance of companies.
The taxation level in Cameroon is higher than the global average on the
continent, which peaks at 46.9%
This, the study stresses, means that companies established in Africa make
on average
comply with tax laws"
In the Cemac area, Cameroon is 3rd behind Gabon and Equatorial Guinea,
whose average taxation rates respectively represent 45.7% and 47.1% of the
NEWSLETTER 16 – 29 NOVEMBER 2015
More Than 200 Companies Present at the 1st Edition of the
Cameroon Investment Forum
The first edition of the Cameroon Investment Forum (CIF) opened
November 25, 2015 in Douala, Cameroon's economic capital, with the
participation of over 200 local and foreign businesses. This event
organized by the Investment Promotion Agency (IPA) aims at promoting
the Cameroonian economy before investors.
According to the Investment Promotion Agency, ten foreign delegations
taking part in this economic event under the theme "emergence
through investment." The first edition of the CIF ends November 27, 2015.
In addition to the large trade fair in which participants compete
ertise, the CIF involves round tables on various topics, as well as B to B
meetings between investors, with the aim of establish
business relationships.
Source: adapted from the article “Plus de 200 entreprises présentes à la 1ère édition du
Cameroon investment forum de l’API”, Investir au Cameroun
www.investiraucameroun.com
Taxes Represent 48.8% of Companies’ Operational Results
in Cameroon
The audit and consulting firm PricewaterhouseCoopers (PwC) and the
World Bank published, on 19 November 2015, their “Paying Taxes 2016”
study, which provides information on the average taxation level of
companies in Africa. According to this study, where Cameroon holds the
out of 52 African countries, the taxation level in the country
represents 48.8% of the business performance of companies.
The taxation level in Cameroon is higher than the global average on the
continent, which peaks at 46.9% of the operational income of
This, the study stresses, means that companies established in Africa make
on average "36.6 payments per year for taxes and devote 313 hours to
comply with tax laws".
In the Cemac area, Cameroon is 3rd behind Gabon and Equatorial Guinea,
verage taxation rates respectively represent 45.7% and 47.1% of the
2015
More Than 200 Companies Present at the 1st Edition of the
The first edition of the Cameroon Investment Forum (CIF) opened
November 25, 2015 in Douala, Cameroon's economic capital, with the
participation of over 200 local and foreign businesses. This event,
Investment Promotion Agency (IPA) aims at promoting
ten foreign delegations
taking part in this economic event under the theme "emergence
through investment." The first edition of the CIF ends November 27, 2015.
In addition to the large trade fair in which participants compete in terms of
tables on various topics, as well as B to B
establishing successful
Source: adapted from the article “Plus de 200 entreprises présentes à la 1ère édition du
API”, Investir au Cameroun
Taxes Represent 48.8% of Companies’ Operational Results
The audit and consulting firm PricewaterhouseCoopers (PwC) and the
shed, on 19 November 2015, their “Paying Taxes 2016”
study, which provides information on the average taxation level of
companies in Africa. According to this study, where Cameroon holds the
out of 52 African countries, the taxation level in the country
represents 48.8% of the business performance of companies.
The taxation level in Cameroon is higher than the global average on the
of the operational income of companies.
This, the study stresses, means that companies established in Africa make
"36.6 payments per year for taxes and devote 313 hours to
In the Cemac area, Cameroon is 3rd behind Gabon and Equatorial Guinea,
verage taxation rates respectively represent 45.7% and 47.1% of the

2. operational income of companies. The African country where companies pay the lowest taxes
with relation to their operational income is Lesotho (13.6%).
Lesotho is among the Top 10 with Zambia (18.6%), Namibia (21.3%), Mauritius (22.4%),
Botswana (25.1%), South Africa (28.8%), South Soudan (29%), Seychelles (30.1%), Sierra
Leone (31%) and Ethiopia (32.1%).
According to the above-mentioned study, eight countries have an average taxation rate higher
than 60% of the operational income of companies. These are Benin (63.3%), Gambia
(63.3%), Chad (63.5%), Guinea (68.3%), Mauritania (71.3%), Algeria (72.7%), the Central
African Republic (73.3%) and Eritrea (83.7%), who brings up the rear.
Source: Business in Cameroon www.businessincameroon.com
The Industrial Sector Suffering from Lack of Competitiveness
The industrial sector in Cameroon is experiencing the lowest growth rate. From 2000-2011, it
fluctuated between -2 and 2%. These data were communicated by Emmanuel Wafo (an
entrepreneur evolving in the industrial sector) on 11 November during a dinner-debate
organized by Cameroon’s employer association Gicam (Groupement inter-patronal du
Cameroun), the third of this year 2015. In his presentation, the entrepreneur also noted that
the contribution of the industrial sector to the national GDP fell from 2000 to 2011, from
19.26% to 13.38%. This is a quite scary picture, especially since, as the speaker said, "there is
a statistical correlation between the degree of industrialization and per capita income in
developing countries. Therefore it is time to make things change in Cameroon.
But first let us look at other findings. The sector is domestically non-competitive: 41% of
manufactured products on the local market are imported (from Europe, Asia, and North
Africa). The sector is also non-competitive abroad. The rate of manufactured exports reached
only 5%, and is mostly re-exports. In addition, our industrial entrepreneurs face constraints
such as inadequate internal production units and low sectorial structuring.
Fortunately, there is a "glimmer of hope", said Edouard Ebah Abada, the secretary general of
the Ministry of Mines, Industry and Technological Development, particularly through the
2013 Law on private investment incentives. The SG will have listed beforehand many
industrial companies that closed down in the past. We must therefore ensure that the current
economic environment does not deteriorate further.
For the private sector, not only the state should continue reforms to improve the business
climate, but it must also, as a consumer, subject itself to "buy local". The state must also pay
off domestic debt faster ... Companies, for their part, need to improve their management
procedures, subject themselves to ongoing training, pool their resources, etc.

3. Source: adapted from the article “L’industrie en manqué de compétitivité”, Cameroon Tribune www.cameroon-
tribune.cm
Three Recruits for the Douala Stock Exchange
According to our information, Cameroon government intends to sell its shares in three
companies via the stock exchange in Douala.
The State of Cameroon intends to revitalize the Douala Stock Exchange, selling at least 20%
of its shares in the sugar producer Sosucam (Somdiaa Group), as well as in aluminum
specialists Socatral and Alubassa, both subsidiaries of the Cameroon Aluminium Company
(Alucam), reported Jeune Afrique.
On 11 November, Pierre Ekoulé Mouangue, Douala Stock Exchange (DSX) Managing
Director, brought together the leaders of brokerage firms to tell them the news.
Shareholding
In mid-October, Alamine Ousmane Mey, the Finance Minister, announced the government's
intention to general managers of the three companies, as well as to the management team of
the National Investment Company (SNI), their common shareholder, and National Social
Insurance Fund (CNPS), which holds stakes in Sosucam.
In accordance with custom, these securities will be admitted to trading during the first half of
2016.
Capitalization
Created in 2001, the Douala Stock Exchange has three listed companies: Société des eaux
minérales du Cameroun (SEMC), Société agricole et forestière du Cameroun (SAFACAM)
and Société camerounaise de palmeraies (Socapalm).
According to the latest figures, the market capitalization of the DSE reached XAF 174.79
billion on October 12, 2015.
Source: adapted from the article “Trois recrues pour la bourse de Douala”, Jeune Afrique Business
www.jeuneafrique.com
The Price of Cameroonian Crude Oil Deteriorates By 46.90% between
June 2014 and June 2015

4. In terms of oil revenues for 2016, Cameroon has decided to go for extreme caution,
considering the international environment is still not very good for the price of a barrel of
crude oil. Indeed, based on the Finance bill currently under review by Parliament, the
government is counting on oil revenue reaching XAF 397.2 billion in 2016, against forecasts
of XAF 774.9 billion in 2015, thus a drop of almost 50%.
At the root of this drastic drop in the forecasts, which reduces the proportion of oil revenues
in the budget of the Cameroonian state to scarcely 10%, as against 25% in the past, is the fall
in world oil prices. Indeed, highlights the national oil company (SNH) in the latest edition of
its magazine, "between June 2014 and June 2015, the average rate of Brent which is the
reference for fixing the price of Cameroonian crude oil has declined by 46.9% to remain at
USD 57.84 the barrel".
During the first semester 2015, we learn from the same source, the price of Cameroonian
crude oil further decreased, to peak at only USD 55. This is sufficient enough for the
Cameroonian State, who is counting on oil production at 34.6 million tons in 2016, to revise
downwards its previsions in terms of revenues.
Moreover, to avoid any unforeseeable surprise on the oil market during the year, the
government of Cameroon, while putting together its 2016 budget, took the option of banking
on a barrel price at USD 40, even though the current price is far higher than this limit.
Source: Business in Cameroon www.businessincameroon.com
Markets as at November 15, 2015
Against XAF (Indicative only)
XAF
USD 619.225
EUR 657.4488
GBP 933.0176
Source: www.exchangerates.org.uk