Cameroon has been successful at reforming its economy and developing a more favourable business environment. The government is actively encouraging foreign investment and has pledged to make reforms which can ease foreign investment; however the institutional setting for free markets and competition is deficient, and the enforcement of rule of law is hampered by corruption and inefficient public institutions. Foreign investment in Cameroon is limited, largely due to the problem of corruption, and much remains to be done in order to improve the overall business environment.

Positive developments in relation to corruption and investments:

• A National Anti-Corruption Commission was established in 2006 and, in a governmental anti-corruption campaign, several members of the political elite have been arrested on charges of corruption. This indicates a greater political will to fight corruption.
• A new procurement code regulating public tendering was passed in September 2004.The code has provisions that ensure objectivity; among them are the requirements that bidders are anonymous and limits on the use of mutual agreement and special market procedures.
• One-stop-shops were launched in February 2010, and have facilitated and shortened the procedures for starting a business in Cameroon. 

Risk of corruption:

• Due to corruption and a weak and unreliable judicial system, confiscation of private property might occur. Foreign companies have claimed that some judgements made against them were based on fraudulent evidence.
• Companies should note that the use of unofficial payments to clear goods through customs is widespread.
• 18% of the large companies operating in Cameroon admit having resorted to paying bribes in connection with the winning of contracts to increase market shares.
• When applying to get water, electricity or telephone connections, the applicant should pay unofficial fees ranging from XAF 50,000 to 200,000 to be connected to the respective infrastructure.