Cameroon Country Profile

General Information

Political Climate


Cameroon, with assistance from the international donor community, has been reforming its economy and developing a more favourable business environment. However, while GDP growth rates have ranged between 3-4% in recent years, economic development has not progressed enough to generate poverty reduction and thereby attain the Millennium Development Goals. Moreover, according to the US Department of State 2009, endemic corruption still plagues the country and contributes to making it one of the 'world's most challenging business climates'.

Cameroon's President and leader of the ruling Cameroon People's Democratic Movement (CPDM), Paul Biya, has been in power since 1982, having been re-elected for a new seven-year term in 2004 with more than 70% of the vote. International observers note that the President's many years with a tight grip on power have facilitated high levels of corruption, nepotism and cronyism that have fuelled extensive patronage systems. The President's ethnic group, the Beti-Bulu, is overrepresented in the government, in the military, as civil servants and in the management of state-owned companies. This feeds a system of endemic graft and ethnic clientelism in an administration that includes more than 60 ministries. Ministerial posts are considered part of the patronage system rather than a rational legal system, and the embezzlement of public funds at high levels of the state hierarchy continues. Public aversion with corruption is growing, and according to Transparency International's Global Corruption Barometer 2009, corruption is perceived to be widespread within the judiciary, political parties, customs, the police, and among civil servants in general, with 55% of the citizens claiming to have paid a bribe in the 6 month previous to the study. Moreover, close to 70% of the respondents in the household survey acknowledge that petty corruption and grand corruption are 'very serious' problems for the country. Officials in both private and public administration frequently demand bribes, gifts or favours in return for rendering a service.

Although the government's will to fight corruption has long been questionable, more anti-corruption resources have been committed in recent years which have led to a number of initiatives, such as the establishment of the  National Anti-Corruption Commission (CONAC) in March 2006. In addition, a growing number of well-known representatives of the political elite have been arrested since 2005 on charges of corruption under an anti-corruption campaign called 'Operation Sparrow Hawk', which primarily targets state-controlled companies and former members of government, amongst them former ministers and members of Parliament. In 2006, one such trial resulted in the sentencing of a high-ranking member of the ruling political party to 50 years in prison for misappropriating XAF 13 billion, and in March 2008 the former Secretary of State for Public Works was arrested on allegations of embezzling USD several million in forestry royalties. Former Economy and Finance Minister Polycarpe Abah Abah and former Public Health Minister Urbain Olanguena Awono were also arrested on allegations of fraud, corruption and embezzling public funds. Some observers link these waves of arrests as the government's attempt to please donors and, among others, enter the Heavily Indebted Poor Countries (HIPC) initiative that accords debt relief. However, the Bertelsmann Foundation 2008 reports that the tendency to use development cooperation as a clientelist instrument for granting favours and privileges is well known, and that both donors and the population has relatively little trust in the government. According to Global Integrity 2008, another hit to the credibility of the governmental campaign is the lack of enforcement of the Law on the Declaration of Assets that would help expose the misappropriation of funds by civil servants. Moreover, the political climate in Cameroon does not allow anti-corruption activists to address corruption at the highest levels of government. Nevertheless, the wave of arrests does indicate a shift in policy for Cameroon, where corruption has long been synonymous with impunity.

Business and Corruption

While no reliable statistics on the scope of Foreign Direct Investment (FDI) are available, the US Department of State 2009 reports that FDI clearly plays a key role in the economy. The government is actively encouraging foreign investment and is in the process of undertaking reforms to facilitate further FDI. Although still not fully implemented, the government adopted an Investment Charter (in French) in April 2002 aimed at streamlining investment procedures, and has announced the creation of an Investment Promotion Agency. Still, however, the institutional setting for free markets and competition is deficient, as 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. According to the World Economic Forum Global Competitiveness Report 2008-2009, companies identify corruption as the most significant constraint to doing business in Cameroon. Corruption and other irregularities in the country's oil and forestry sectors continue to undermine the full economic potential of these sectors. For more information in this regard, access this profile's special page on Cameroon's oil and forestry sectors. The US Department of State 2008 reports that sectors which are particularly prone to corruption include customs, public health facilities and public procurement. Companies are recommended to use a specialised public procurement due diligence tool in order to help mitigate the costs and risks of corruption involving public procurement processes in Cameroon.

The intensive regulation of the economy by the government has been reduced since its participation in the Structural Adjustment Programmes (SAPs) of the 1990s. Nevertheless, Cameroon still has a large and strong informal sector against which formalised companies often find themselves in competition. Privatisation has been made a top-priority item for reform, and several privatisations of former state-owned companies have taken place. The process is still ongoing with the World Bank supervising some of the bidding rounds, however, the US Department of State 2009 reports that some of the bids have gone deserted and many larger companies are still awaiting privatisation. Moreover, whilst domestic and foreign companies are formally allowed on equal terms, accusations of preferential treatment of French companies have persisted, since the granting of licences to Cameroonian companies has been rare. Total privatisations are also rare, as the government normally continues to hold 30-45% shares in 'privatised' companies, although it is reportedly often willing to reduce its ownership shares.

Infrastructure varies in development and measures to improve infrastructure in the Anglophone northwest and southwest provinces are continually deferred by the Francophone-dominated state in favour of Francophone areas. According to a Transparency International 2007 business survey (in French) conducted among domestic companies, corruption in the public sector is singled out as the largest impediment to doing business in Cameroon. Corruption within the private sector is also perceived to be widespread, and 18% of the surveyed companies admit having resorted to bribery in order to win contracts and market shares. In addition, according to the World Economic Forum Global Competitiveness Report 2009-2010, Cameroon ranks close to the bottom in relation to the ethical behaviour of companies. The World Bank & IFC Enterprise Surveys 2006 reports that close to 78% of companies expect to make informal payments to public officials in order to 'get things done' and that 50% identify corruption as a major constraint to doing business. The reasons for paying bribes are diverse (avoiding legal or bureaucratic problems, obtaining preferential treatment, etc.), yet there is a wide consensus among companies that corruption imposes considerable costs on domestic companies, as 63% of them assessed that about 10% of their turnover went to facilitation payments. Some companies handed over as much as 40% of their annual turnover to corrupt officers. In order to mitigate corruption risks, companies are strongly advised to develop, implement and strengthen integrity systems and to conduct extensive due diligence when planning to do or are already doing business in Cameroon.

Regulatory Environment

While an Investment Charter (in French) was adopted in 2002 to attract foreign investors and streamline investment procedures, it was still not fully implemented by January 2009. This has resulted in a complicated and challenging regulatory environment in which relevant portions of the 1990 Investment Code remain in effect until the full implementation of the Investment Charter. The US Department of State 2009 states that Cameroon's legal and regulatory systems are inefficient and often arbitrary. Accordingly, Cameroon ranks poorly in the World Economic Forum Global Competitiveness Report 2009-2010, when measuring the negative impact of the administrative burden on doing business in Cameroon. On the other hand, some positive developments must be noted; unlike the Investment Code 1990, the Investment Charter 2002 does not discriminate with regard to equity ownership, it permits full foreign ownership, and procedures for obtaining land titles have been simplified and the authority decentralised. According to the World Bank & IFC Doing Business 2010 though, Cameroon continues to perform poorly in several areas, including starting a company, dealing with licensing and paying taxes. Companies wishing to start a company in Cameroon face 12 procedures, duration of 34 days and a cost of 121% of GNI per capita, compared to a regional average of 9.4 procedures, 45.6 days at a cost of 99.7% of GNI per capita. The World Bank & IFC Enterprise Surveys 2006 state that senior management can expect to spend nearly 13% of its time managing the administrative burden of dealing with government regulations.

Global Integrity 2007 reports that tax, customs and excise duties procedures are not always enforced uniformly or without discrimination. The government has announced plans to simplify tax assessment and collection procedures so that they are more transparent and clear for companies, but this had not done by the beginning of 2009. Central public institutions are often ineffective and, according to the Bertelsmann Foundation 2008, peripheral powers of traditional authorities frequently exceed the power of state representatives. There is a risk that these leaders may occasionally act to enforce their own policies, and the government continues to struggle to fully co-opt them to its agenda. Public procurement is reportedly a problematic area too, even though some progress has been made since 2002, where systematic post-fact audits were conducted on valuable contracts. According to the Bertelsmann Foundation 2008, foreign trade is distorted by state regulation, special rules and tariff barriers, although Cameroon's membership in the Economic and Monetary Community of Central Africa (CEMAC) has facilitated the establishment of some common trade rules. CEMAC also sets uniform rules of the game for market participants, but state intervention continues and the institutional setting for free markets and competition is reportedly inadequate.

Cameroon is a member of the Organization for the Harmonization of Business Law in Africa (OHADA), which has the purpose of bringing Cameroonian business laws in line with other African member countries. Business laws are relatively clear but the challenges lie in their implementation. The US Department of State 2009 reports that Cameroonian law provides both foreign and domestic investors with property rights protection, that comply with international standards and does not discriminate between foreign and domestic companies. On the negative side unreliability, non-transparency and inefficiency in the judiciary all weaken the rule of law. Many foreign and domestic companies in fact complain about the process of enforcing their legal rights, including contract and property rights, due to time-consuming and complicated procedures. The fact that judges are not required by law to give reasons for their decisions adds to the lack of transparency of Cameroon's judicial system. In fact, in practice both courts and administrative agencies grant preferential treatment to domestic companies and have been accused of corrupt practices. Corruption places private property in danger of being confiscated, according to the Bertelsmann Foundation 2008. In many cases, where rulings have been in favour of a company, there has been a lack of enforcement of court orders due to corruption. According to the US Department of State 2009, companies routinely exert pressure on the courts, which may be swayed by large bribes or by the status of politically influential persons. A company may choose from several procedures: adjudication by local courts, arbitration by the international courts of justice and international arbitration centres according to Cameroonian law and the arbitration regimes of which Cameroon is a member. These arbitration regimes include the International Centre for the Settlement of Investment Disputes (ICSID) and the New York Convention 1958. Cameroon accepts binding international arbitration between foreign investors and the government. Cameroon's Council of Business Managers and Professional Associations (GICAM) created its own arbitration centre to handle business disputes (see 'Private Anti-Corruption Initiatives' below). Access the Lexadin World Law Guide for a collection of legislation in Cameroon.

Oil and Forestry Sectors

Special Section on the Oil and Forestry Sectors

Despite being the smallest oil producer in Sub-Saharan Africa, and with declining production levels, the oil sector in Cameroon is the third largest sector in terms of GDP. In 2008 the oil sector accounted for 38% of overall state revenue up from 33% in the 2007 fiscal year. Oil has been extracted in Cameroon since 1977 and both its production and exploitation are controlled by the state through the National Hydrocarbon Company (SNH), a state-owned company that guarantees the interests of the state through concessions, apportionment, production and hybrid contracts. The government has shown some will to fight corruption in the management of oil revenues. Cameroon is listed as a candidate country at the Extractive Industries Transparency Initiative (EITI), which obliges governments as well as oil exploring and producing companies to publish their revenues in the extractive sector. Following this, an independent auditor is to confirm that the figures published are in conformity with volumes of production. The auditor's report for Cameroon revealed large discrepancies in the published figures. Despite this, no investigations of those involved in the management of oil revenues have been carried out.

The fourth largest sector in Cameroon is the forestry sector, accounting for 10% of GDP. The sector pertains to the Ministry of Forests and Wildlife which deals with the coordination and oversight of the exploitation, conservation and promotion of forests. A number of initiatives and structures have been created with the purpose of combating mismanagement and corruption in the forestry sector (see the 'Public Anti-Corruption Initiatives' section of the country profile). Yet, the sector continues to be very corrupt, and a November 2004 article in Mutations issue 1289 estimated the losses caused by corruption at nearly USD 217 million annually.

Judicial System

Individual Corruption

Confidence in the judiciary is very low. According to the Transparency International Global Corruption Report 2009, a large number of Cameroonians perceive the judiciary to being corrupt. Magistrates are known to favour their own religious, ethnic, political affiliations and economic interests when pronouncing verdicts

Business Corruption

It is difficult to enforce commercial contracts in Cameroon. The procedures and time required to enforce contracts are very high in comparison with others countries in the region. According to the US Department of State 2008, a company from the US could not get a court order in its favour enforced due to corruption. The company had to sell its assets at a loss because it could not repossess them. The US Department of State 2009 also reports that Cameroonian partners of foreign companies have at times tried to take over the operations of local companies through frivolous court actions and harassment. Magistrates have added to the insecurity in cases like the REMTSA and SIAC-ISENBECK case where they chose to apply national preference instead of strictly abiding by the law. Read more about the REMTSA and SIAC-ISENBECK case here.

Political Corruption

An independent judiciary is guaranteed by Cameroon's constitution; however the US Department of State 2009 reports that the judiciary is subject to influence by the executive and that it is permeated by corruption and inefficiency. According to the Bertelsmann Foundation 2008, the judiciary lacks independence and adequate resources, and is considered in urgent need of reform and anti-corruption policies. The judiciary is subordinate to the Ministry of Justice and the Supreme Court may only review the constitutionality of law at the President's request. The President appoints all judges together with the Supreme Council of Magistrature. Politically sensitive cases never reach the courts, but are settled through bribes and powerful business and political people are virtually immune from prosecution. Despite this, small signs of growing independence have been noted, as precedent-setting corruption and embezzlement cases have been launched against high-ranking officials during 2006.

Frequency

The World Bank & IFC: Doing Business 2010:
- Enforcing of contracts requires 43 procedures, an average of 800 days and costs 46.6% of the claim.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give the judiciary's level of independence from influences of government, citizens, or companies a score of 2.4 on a 7-point scale (1 being 'heavily influenced' and 7 'entirely independent').

- Business executives give the efficiency of the legal framework for private companies to settle disputes and to challenge the legality of government actions and/or regulations a score of 3.3 and 3.1 respectively on a 7-point scale (1 being 'extremely inefficient' and 7 'highly efficient').

Transparency International: Global Corruption Barometer 2009:
- Citizens give the judiciary a score of 4.5 on a 5-point scale (1 being 'not at all corrupt' and 5 'extremely corrupt'). This makes the judiciary the most corrupt institution in the country.

- 44% of the respondents who had contact with the judiciary in 2008 paid a bribe in the interaction.

Transparency International: Global Corruption Report 2007:
- More than 80% of citizens describe the judiciary as being corrupt.

Police

Individual Corruption

The security forces reportedly impede domestic travel and transporters must often pay bribes to pass through police checkpoints and roadblocks. Impunity in the security forces is a problem and they are known to be violent and to abuse detainees and prisoners, as reported in the US Department of State 2008. There have also been reports from several observers, including IRIN and Global Integrity 2008, that the traffic police routinely extract bribes ('road tax' of between USD 1 and USD 2) at checkpoints.

Business Corruption

Cronyism, nepotism, favouritism and tribalism are very common in the delivery of police services.

The police are singled out by domestic companies as being the third most corrupt institution.

Political Corruption

Politicians serving time in prison on corruption charges often receive better treatment than normal inmates, according to the US Department of State 2008. It is also reported that wardens often accept bribes from inmates in exchange for a better treatment. The US Department of State reports that influential people bribe the police to arrest or harass individuals involved in personal disputes. Global Integrity 2008 reports that punishment of corrupt police officers has been lenient compared to the wave of long term imprisonment of politicians and high-ranking government officials started in 2006.

Frequency

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give the reliability of the police services to enforce law and order a score of 3.8 on a 7-point scale (1 being 'cannot be relied upon at all' and 7 'can always be relied upon').

Transparency International: Global Corruption Barometer 2009:
- 51% of the respondents in this public opinion survey that had contact with the police in 2008 paid a bribe in the interaction.

Transparency International: Enquêtes nationales sur la corruption au Cameroun - enquête quantitative auprés des ménages - 2007 (in French):
- 81% of household respondents claim that the police sector is rife with corruption.

Transparency International: Enquête nationale auprés des entreprises sur la corruption au Cameroun - 2007 (in French):
- 7% of the companies surveyed said that the police was the most corrupt sector.

Licences, Infrastructure and Public Utilities

Individual Corruption

Corruption is reportedly rampant in the production of identification documents and passports. For several months in 2006 and early 2007, it was impossible to get a passport through the official procedures. People had to make large unofficial payments to Immigration Department agents to obtain passports. Even today, it is impossible to guess exactly how much it costs to get a passport because of the many unforeseen fees. These fees are paid without receipts and go straight in to the pockets of the police. At the Yaoundé Emi-Immigration police station, where all applications for passports are centralised, a policeman anonymously said he has taken from XAF 150,000 to 300,000 to issue a passport that officially costs XAF 55,000. It is common to pay bribes in order to access the health care system.

Business Corruption

Global Integrity 2007 reports that unofficial payments have become systematic in obtaining a driving licence, and in the case of para-state or private monopoly water, electricity or telephone companies the applicant should pay unofficial fees ranging from XAF 50,000 to 200,000 to be connected to the respective networks. Companies should note that due to the delays in obtaining licences and permits, 1 out of 4 companies queried in a Transparency International 2007 business survey claim that they resort to personal connections to speed up the process.

Frequency

The World Bank & IFC: Doing Business 2010:
- It takes 15 procedures, 426 days and 1,242% of the income per capita to obtain the necessary licences and permits for building a warehouse.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business executives give government administrative requirements (permits, regulations, reporting) in Cameroon a score of 2.7 on a 7-point scale (1 being 'extremely burdensome' and 7 'not burdensome at all').

Transparency International: Global Corruption Barometer 2009:
- 29% of the respondents who used the registry and permit services in 2008 paid a bribe in the interaction.

- 20% of the respondents who had contact with the utilities services in 2008 paid a bribe in the interaction.

Transparency International: Enquête nationales sur la corruption au Cameroun - enquête quantitative auprés des ménages - 2007 (in French):
- Approximately 46% of the households surveyed consider this sector to be very corrupt.

- 48% of the households report having made illegal payments in order to obtain a driver's licence.

The World Bank & IFC: Enterprise Surveys 2006:
- 51% of companies expect to give gifts in order to obtain an operating licence.

- 28.5% of companies identify the area business licensing and permits as a major constraint on doing business.

Land Administration

Business Corruption

There are no legal barriers to foreign ownership of land. However, companies should note that the costs of registering property in Cameroon are very high, also compared to the regional average (See Frequency level). According to the Bertelsmann Foundation 2008, the process of acquiring property, especially the purchase of land titles, is problematic because of competing concepts of law between modern and traditional law. Property rights are formally defined but suffer from shortcomings in the rule of law and corruption in particular. Due to corruption and a weak and unreliable judiciary, confiscation of private property might occur. Foreign companies have claimed that some judgements made against them were based on fraudulent evidence.

Political Corruption

'Operation Sparrow Hawk', which began in 2006, led to the arrests of former General Manager of the Land Credit of Cameroon, Joseph Edou, and former General Manager of the Cameroon Housing Corporation, Gilles Roger Belinga. Belinga was a senior member of President Biya' Cameroon People's Democratic Movement (CPMD) and was sentence in 2007 to 35 years in jail for fraud and embezzling XAF 3.7 billion. Edou was sentenced to 40 years in jail in July 2008 along with several others found guilty of embezzling XAF billions.

Frequency

The World Bank & IFC: Doing Business 2010:
- It takes 5 procedures, 93 days and 17.8% of the property value to register and secure rights to property.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business leaders give the protection of property rights in Cameroon, including financial assets, a score of 3.5 on a 7-point scale (1 being 'very weak' and 7 'very strong').

Transparency International: Global Corruption Barometer 2009:
- 25% of the respondents who had contact with land register services in 2008, paid a bribe in the interaction.

Transparency International: Enquête nationale auprés des entreprises sur la corruption au Cameroun - 2007 (in French):
- The property registration bureau ranks as the fifth most corrupt agency.

Tax Administration

Individual Corruption

A 2007 Transparency International household survey (in French) reveals that a large number of Cameroonians perceive the tax administration to be particularly corrupt.

Business Corruption

According to Global Integrity 2007, tax laws are not always enforced uniformly and without discrimination. According to the US Department of State 2009, companies complain that tax audits and enforcement are predatory and prejudiced against the private sector, especially government efforts to compel companies to compromise on tax assessments, including blocking company bank accounts for temporary periods. Jeune Afrique 2007 reports that Chinese traders in Cameroon's economic capital, Douala, have closed their shops in July 2007 in protest against the corrupt practices inflicted upon them by tax officials. Indeed, the tax rate is very high, and the controls by tax officers, which are becoming more and more frequent, all involve the paying of bribes. Moreover, a 2007 Transparency International domestic company survey (in French) reveals that the tax administration ranks second in the influence of corruption on its operations.

Political Corruption

According to Global Integrity 2007, members of the ruling Cameroon People's Democratic Movement (CPDM) party reportedly sometimes receive favours in relation to tax payments.

Frequency

The World Bank & IFC: Doing Business 2010:
- Companies must make 41 payments and spend 1,400 hours preparing, filing and paying taxes at a total tax rate of 50.5% of profits.

Transparency International: Global Corruption Barometer 2009:
- 18% of the respondents who had contact with tax revenue authorities in 2008, paid a bribe in the interaction.

The World Bank & IFC: Enterprise Surveys 2006:
- 65.5% of companies are expected to give gifts when meeting with tax inspectors.

- 77% of companies identify tax administration as a major constraint to doing business.

Customs Administration

Individual Corruption

A 2007 Transparency International household survey (in French) reveals that the customs are rife with corruption. According to Global Integrity 2007, customs laws are not always enforced uniformly and without discrimination.

Business Corruption

In the Transparency International domestic company survey 2007 (in French), the customs are singled out as the sector which is most affected by corruption. Global Integrity 2007 states that unofficial payments have become systematised in clearing goods through customs.

Political Corruption

The most important case in the 2006 'Operation Sparrow Hawk' was the trial of the Port Authority of Douala and the Inter-Communal Mutual Aid Fund (FEICOM) former top executive, Gerard Ondo Ndong. After seven months in court, Ondo Ndong was sentenced to fifty years in prison for misappropriating an alleged XFA 11 to 13 billion. The money was primarily stolen from additional local taxes that FEICOM was responsible for using to upgrade local investments.

Former Minister of Energy and Water, Alphonse Siyam Siwe, former senior member of the ruling Cameroon People's Democratic Movement (CODM), had his assets seized and was sentenced to 30 years in jail in December 2007 for allegedly embezzling approximately XAF 30 billion during his time as Director-General of the Douala Autonomous Sea Port between 1998 and 2005. Fourteen others were found guilty on corruption charges in connection with the case and sentenced to jail terms ranging from 20 to 48 years and the seizing of their assets.

Frequency

The World Bank & IFC Doing Business 2010:
- A standard export shipment of goods requires 10 documents and takes 23 days at an average cost of USD 1,250 per container.

- A standard import shipment of goods requires 11 documents and takes 26 days at an average cost of USD 2,002 per container.

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business leaders give the efficiency of customs procedures (formalities regulating the entry and exit of merchandise) in Cameroon a score of 3.2 on a 7-point scale (1 being 'extremely inefficient' and 7 'extremely efficient').

Transparency International: Enquêtes nationales sur la corruption au Cameroun - enquête quantitative auprés des ménages - 2007 (in French):
- 70% of the respondents in this household survey consider the customs sector to be very corrupt.

Public Procurement and Contracting

Business Corruption

Public procurement is singled out by the US Department of State 2009 as a sector with a high level of potential corruption. Indeed, a large number of companies queried by Transparency International 2007 (in French) admit to having paid bribes when participating in competitive bidding. Companies are highly recommended to use a public procurement due diligence tool in order to avoid the costs and mitigate the risk of corruption involving procurement in Cameroon.

Political Corruption

According to Global Integrity 2008, conflict of interest regulations are not consistently enforced and officials are able to award contracts to family members and associates.

For more information on public procurement, see 'Public Anti-Corruption Initiatives' in the Initiatives section.

Frequency

World Economic Forum: The Global Competitiveness Report 2009-2010:
- Business leaders give the diversion of public funds to companies, individuals, or groups due to corruption a score of 2 on a 7-point scale (1 being 'very common' and 7 'never occurs').

- Business leaders give the favouritism of government officials towards well-connected companies and individuals when deciding upon policies and contracts a score of 2.8 on a 7-point scale (1 being 'always show favouritism' and 7 'never show favouritism').

Transparency International: Enquête nationale auprés des entreprises sur la corruption au Cameroun - 2007 (in French):
- 49% of the companies that participated in competitive bidding resorted to paying bribes.

The World Bank & IFC: Enterprise Surveys 2006:
- Over 85% of companies expect to give gifts in order to secure a government contract.

- The value of a gift expected to secure government contracts amounts to 7% of the contract value.

Environment, Natural Resources and Extractive Industry

Individual Corruption

According to Global Witness, villagers protesting against illegal logging and attempting to claim their rights were intimidated by the authorities.

Business Corruption

Global Witness reports instances of collusion between corrupt forest officials and the private sector. Moreover, logging companies are not adequately monitored. The export of certain timber in unprocessed form has been forbidden since 2002 in order to stop the dramatic loss of rainforest due to uncontrolled and illegal logging.

Political Corruption

According to the Transparency International Global Corruption Report 2008, corruption hampers the good management of natural resource revenues. The Ministry of Environment and Forests is rife with corruption thus leading to a great loss of taxes for the government. Indeed, in 2004, a newspaper estimated corruption in this sector to have caused an annual loss of nearly USD 217 million.

For further information related to corruption in Cameroon's extractive industries, visit this profile's special page on the oil and forestry sectors.

Public Anti-Corruption Initiatives

  • Legislation: Corruption in the form of active and passive bribery, extortion, bribing a foreign official, money laundering and misuse of public funds for private gain is criminalised the Penal Code and punishment can include a prison term of 5 years to life and a fine up to USD 4,000 plus seizure of assets. In mid-2005, Parliament passed a bill to harmonise the Penal Code in the French and English-speaking parts of the country. Article 66 in Cameroon's constitution stipulates that those overseeing public funds declare their possessions. A law on the subject was passed in 2006, which requires state administrators and managers to disclose their assets upon entering office and when leaving office. A presidential decree implementing the law is however still missing. The Code of Penal Procedures 2005 came into force in January 2007. The code entails some new features as it extends the lawyer's role to include the preliminary phase of the penal lawsuit and it establishes an examining magistrate thereby ending the joint prosecution and investigation functions of the public prosecutor, which was previously a source of corruption. Moreover, the code requires judges to write down their rulings before they are delivered as the delay in drafting rulings provided opportunities for corruption. Access the Lexadin World Law Guide for a collection of legislation in Cameroon.

  • Government Strategies: The government installed a new computer programme to detect fraud by government employees in March 2005, which revealed that around 3,000 'ghost' employees had served the public administration since 1994, and cost the government around USD 2 million each month. The CHOC-Cameroon programme (CHOC stands for Change Habits, Oppose Corruption) was launched in February 2007. Initiated by the government and the '8+6 Group', and supported by international donors, the three-year programme is intended to reduce corruption by creating a national governance programme, enforced by the National Anti-Corruption Commission (CONAC), anti-corruption cells within ministries and the new Financial Investigation Agency (ANIF). CHOC-Cameroon must now draw up a national anti-corruption strategy, implement the United Nations Convention against Corruption (UNCAC), operationalise CONAC and ANIF and strengthen the role of civil society. The last of these entails drawing up an anti-corruption charter for civil society organisation, establishing a national committee to coordinate and train member organisations, determining a network action plan and providing financial support for a national awareness-raising anti-corruption campaign.

  • Anti-Corruption Agency: The National Anti-Corruption Commission (CONAC) is the main anti-corruption agency in Cameroon and was established by presidential Decree No. 2006/088 (in French) in March 2006, thus replacing the National Corruption Observatory as of May 2007. The CONAC has a central structure with branches in almost all ministries. The CONAC has a coordinating and regulatory role in relation to the national anti-corruption policy framework in Cameroon. It has investigating capacities and has a mandate to gather and analyse allegations and information about corrupt practices. The findings of a CONAC inquiry can ultimately lead to disciplinary or legal proceedings. However, the CONAC cannot freeze, seize or confiscate assets nor does it have the power to refer cases to court or other disciplinary institutions. CONAC belongs under the authority of the President and the current chairman -Paul Tessa- is a member of the ruling party, which makes the impartiality of the institution questionable. Moreover, the management of CONAC's funds is controlled by other state authorities.

  • National Agency for Financial Investigations (ANIF): The ANIF was created by Decree No. 2005/087 of May 2005, following the adoption of regulation aimed at eradicating and preventing money laundering and the financing of terror in Central Africa by the Communauté Economique et Monétaire de l'Afrique Centrale (CEMAC). As such, the ANIF is part of a network comprising similar institutions in the other member countries and has to report periodically to the regional supervisory authority - the Central African Banking Commission (COBAC).

  • Auditor-General: Cameroon has two supreme audit institutions. The Superior State Audit is a ministry under the Presidency of the Republic (Ministère chargé du contrôle supérieur de l'état au Cameroun) which is governed by the decree on the organisation of the government of 8 December 2004. It is mandated with the controlling and subsequent drafting of financial audits on the use of public funds by public bodies, regions, associations and professional organisations. The observations and recommendations of the audits are submitted to the President and afterwards the audit report is published in the Official Gazette. Moreover, the Superior State Audit certifies public accounts and examines them according to current law and submits them to the Court of Auditors for a judgement within three months of the close of the fiscal year. The Court of Auditors of the Supreme Court is governed by Law No. 2003/005. It is equivalent to a court of accounts and it reviews the accounts of certified public and other practising accountants. Moreover, the Court of Auditors carries out compliance audits. It has established a commission which examines accounts and documents. The findings and recommendations of the commission are forwarded in a confidential report to the President of the Republic and to the presidents of the Senate and of the National Assembly.

  • Extractive Industries Transparency Initiative (EITI): The government accepted the conditions of EITI in March 2005 and declared its oil revenue from an international oil pipeline online. The EITI supports improved governance in resource-rich countries through the verification and full publication of company payments and government revenues from oil, gas and mining. Cameroon is listed as a candidate country in the EITI, which aims at strengthening transparency in the oil sector. It now has until 9 March 2010 to undertake validation. Cameroon's national oil company (SNH) has begun to publish data on its revenues, production and sales and Cameroon's Initiative Monitoring Committee has published two conciliation reports, one in 2006 and the other in 2007. Transparency International 2008 notes several problematic areas of Cameroon's efforts to conform to the EITI, stating that the EITI remains an elitist initiative remote from the everyday concerns of the people, while budgetary monitoring and opportunities for criticism and recommendations are inadequately developed.

  • E-Governance: The Presidency of the Republic in Cameroon has an official website with useful information on laws, decrees and information on corruption and governance. The website also provides links to other ministries as well as to foreign embassies and consulates in Cameroon. However, public initiatives that provide for online services such as licensing and registration which limit encounters with public officials have not been established. The National Agency for Information and Communication Technology (ANTIC) has in July 2009 developed a document for the installation and use of information technologies within government institutions. The aim of the document is to harmonise the practice within the different institution and modernise and ease public administration.

  • Public Procurement: The government began reforms in the public procurement process in 2002, installing observers to perform ex-post-facto audits on valuable procurements. A new procurement code regulating public tendering was passed in September 2004, replacing the three decrees from 1995 and 2002. The code has provisions that ensure objectivity; among them are the requirements that bidders are anonymous, limits on the use of mutual agreement and special markets procedures, maintenance of accounting documents etc. The bidding can be competitive and open or qualified, although sole sourcing is strictly limited. In addition, the government has recently created tender boards in all ministries to ensure transparency in tenders worth more than XAF 5,000,000. Any company which is found guilty of corruption will be given a two year sentence of suspension from public contracts. Unsuccessful bidders are legally entitled to instigate an official review of procurement decisions and to challenge them in court. However, when it comes to the enforcement of the regulation, many flaws are evident. Global Integrity 2008 states that the provisions are just there to please donors and not to be enforced. Reportedly, even if there is a high degree of transparency, with all major contracts being advertised and the final decision being made public, in practice contracts are awarded to political connected people. Moreover, only few of the companies found guilty of major violations of procurement regulations are prohibited from participating in future procurement bids.

  • Whistle-Blowing: According to Global Integrity 2008, neither civil servants nor private sector employees are legally or practically protected from recrimination or other negative consequences when they report cases of corruption. There are no internal reporting mechanisms for public or private sector employees to report corruption. The nascent National Anti-Corruption Commission (CONAC) lacks capacity and funding and has not established any whistleblower reporting mechanisms or given evidence that it intends to do so.

  • General Comments on the Public Anti-Corruption Initiatives: Cameroon government's will to fight corruption has been questionable for a long time, but the government seems to have committed more resources to curbing corruption in the past few years. Positive developments include the stripe of conviction of high-ranking officials and member of the government on corruption and embezzlement charges starting from 2006. Moreover, Article 66 of the constitution of 1996, which stipulates the disclosure of possessions of those who oversee public funds, was finally implemented in law in 2006. However, major flaws in the implementation of many measures persist. Among others, the law on declaration of assets is not in force yet. Moreover, the CONAC is not independent from political interference and neither is the Superior State Audit which is placed under the presidency of the Republic. The appointments and dismissals of the presidents of the Superior State Audit and the Court of Auditors are entirely up to the President. The Superior State Audit also suffers from under financing. Furthermore, the provisions in the public procurement code are not well observed in practice. In sum, the different agencies and commissions are not endowed with the adequate funding and mandate to carry out their mission. In addition, there is a need for a public information law, which would provide the public and civil society with effective instrument to hold the government accountable and check on public expenditure.

Private Anti-Corruption Initiatives

  • Media: The constitution provides for freedom of speech and of the press. In spite of this, the US Department of State 2008 reports that the government restricts the freedom of assembly and liberty of expression of both citizens and the press. The government controls all broadcast media and has consistently hampered the development of private radio stations, which have only been permitted since 2003, 13 years after the basic legislation allowing for them was passed. Private television stations face costly and time-consuming licensing requirements with the first licences having only recently been granted in 2007. There is a large amount of independent print media, but their impact remains limited because of their high price and of difficulties in distribution outside larger cities. Moreover, there are reports of public funding being selectively awarded to the media outlets aligned with the government. The independent newspapers report on controversial matters such as corruption and economic policies, but the government has sometimes responded by using criminal libel laws to inhibit them and journalists have reportedly been intimidated, harassed and had criminal penalties imposed on them for speech-related offenses, leading broadcast journalists in particular to practice self-censorship. According to the Bertelsmann Foundation 2008, editors and journalists employed by private newspapers have repeatedly been intimidated, arrested and imprisoned in connection with reporting on corruption or other politically sensitive issues. Freedom of information and opinion are restricted concerning the President's family, corruption within the inner political leadership circle, or the military. It should be noted, however, that the media is not free from corruption itself. According to Freedom House 2008, many journalists expect and accept payment from politicians for conducting biased interviews and writing biased articles containing unsubstantiated allegations against their opponents. No cases of restriction of access to the Internet were reported; however, access to the Internet is limited by the high cost and the slow connections. According to Freedom House's Freedom of the Press Index 2009, the press in Cameroon ranks 143rd out of 195 countries and is considered 'not free'. Additionally, Cameroon ranks 109th out of 173 countries on the Reporters Without Borders Worldwide Press Freedom Index 2009.

  • Civil Society: Civil society organisations consist primarily of church based NGOs that are involved in the Poverty Reduction Strategy (PRS) process. According to the Bertelsmann Foundation 2008, NGOs can be formed relatively freely under a legal framework laid out in 1999, and many have been created by members of the state elite as a means of profiting from external assistance programmes. According to Transparency International, civil society organisations are active in the fight against corruption. Global Integrity 2008 also reports that no society activists have been harassed because of their anti-corruption work. However, it also reports that the government controls the most representative of anti-corruption NGOs, including the local chapter of Transparency International. Moreover, according to Bertelsmann Foundation 2008, the political leadership is largely indifferent to the role of civic engagement and frequently ignores civil society while consultation of civil society groups within the PRS process is not systematic and remains selective. Global Integrity 2008 confirms that, while NGOs have considerable influence over public opinion, they almost never influence political decisions and policy making.

  • Transparency International Cameroon (TI Cameroon): As a local chapter of Transparency International, TI Cameroon works in coalitions with other civil society actors, companies and the government. TI Cameroon primarily focuses on awareness-raising, advocacy and the holding of seminars. TIl Cameroon has drafted a bill on access to public information, but it has not been adopted.

  • Council of Business Managers and Professional Associations (GICAM, in French): GICAM is Cameroon's foremost business association and has recently freed itself from government domination and today works to fight against corruption and fraud. The association brings together 140 companies and 15 professional organisations representing 70% of all formal business activity in the country. GICAM lobbies government for the facilitation of business creation and operations, and works to promote a competitive market and good governance and to resolve judicial and financial problems facing companies in Cameroon (property rights and contract enforcement etc.). GICAM operates an arbitration centre to handle commercial disputes.

Resources

The websites listed below provide useful facts on Cameroon as well as contacts and tools for companies operating in Cameroon:

 

Sources for further reading:

Conventions and Indices

UNCAC Status: Signed 10 December 2003. Ratified 6 February 2006.

Status on UNCAC Implementation
This field describes the country's status on the United Nations Convention against Corruption. Please note any declarations and reservations made upon ratification. The list of signatories can be found on the UNODC website. Read more about the UNCAC.

 

Other Relevant Conventions or Treaties:

 

Transparency CPI: 2009: 146/180 (Score: 2.2)

Transparency CPI
This field consists of the score for the country in question on the Corruption Perceptions Index from Transparency International as well as its ranking.

 

World Bank CORR Index (-2.5 - +2.5): 2008: -0.90

World Bank Corruption Index
This field consists of the score for the country in question on the 'Control of Corruption' indicator in the World Bank Governance Research Indicator Country Snapshot (GRICS): 1996-2008.

 

OECD Country Risk Classification (0-7): 2010: 6

Country Risk Classification
The classification of countries by risk category has the aim of providing OECD countries with a basis for calculating the premium interest rate to be charged to cover the risk of non-repayment of export credits. Countries are placed in risk categories 0 - 7, with 0 being the lowest risk category and thus the least expensive. Conversely, premium group 7 is the highest risk category. Each classification is comprised of 2 components: 1) an assessment of the country's economic/financial situation, and 2) its overall political stability. Access the complete list of OECD Country Risk Classification figures.

 

Data Verification:

Latest update: July 2009

Data verified by: Global Advice Network

Information Network

 

Relevant Organisations

 

Transparency International Cameroon (TI Cameroon)

P.O. Box 307
Rue de Narvick
Yaoundé

Tel: +237 2222 4505
Fax: +237 2222 6685
E-mail: ticameroon(at)yahoo.fr

NGO and local chapter of Transparency International. TI Cameroon works primarily with anti-corruption and awareness-raising.

Groupement Inter-Patronal du Cameroun (GICAM, in French)

P.O. Box 1134
Hippodrome
Yaoundé

Tel: +237 2223 1224/25
Fax: +237 2223 1226
E-mail: gicam(at)legicam.org

P.O. Box 829
Bonanjo, Vallée de Ministres
Douala

Tel: +237 3342 3141/6499
Fax: +223 3342 3880
E-mail: gicam(at)legicam.org

Business association.

Cameroon Chamber of Commerce, Industry, Mines and Crafts (CCIMA)

P.O. Box 4011
Douala

Tel: +237 3342 9881/6787
Fax: +237 3342 5596

Chamber of Commerce, Industry, Mines and Crafts.

 

Partner Embassies

 

Embassy of Denmark (Cameroon is covered by the Danish embassy in Benin).

Les Cocotiers
P.O. Box 04-1223
Cotonou
Benin

Tel: +229 2130 3862/63/64
Fax: +229 2130 3860
E-mail: cooamb(at)um.dk

Embassy.

Embassy of the Netherlands

Rue 1792
Immeuble "Les Colonnades"
Bastos
P.O. Box 310
Yaoundé

Tel: +237 2220 2272
Fax: +237 9629 0740
E-mail: yao(at)minbuza.nl

Embassy.

Consulate of Sweden

c/o SAGA
P.O. Box 280
Ave Charles de Gaulle, Ste Mory
Yaoundé

Tel: +237 21 3477
Fax: +237 21 3722
E-mail: roland.tankouan(at)cm.dti.bollore.com

Erik Kellberg, Consul General
Immeuble Kassap, Bd de la Liberté
Akwa
PRO-ASSUR SA
P.O. Box 5963
Douala

Tel: +237 3343 7325/26
Fax: +237 3343 7635
E-mail: ekellberg(at)hotmail.com / erik.kellberg(at)pro-assur.com

Consulate.

Consulate of Norway

Mr. Maurice Bertrand Kouoh Eyoum, Consul General
Immeuble Credit Foncier
Face Hotel Hilton S/C
P.O. Box 481
Yaoundé

Tel: +237 7554 4542

Mr. Christophe Pujalte, Consul General designate
c/o Immeuble SAGA/Cameroun
Zone de professions maritimes
Bonanto
P.O. Box 4057
Douala

Tel: +237 3343 1625
Fax: +237 3342 2666
E-mail: suzanne.ntone(at)bollore.com

Consulate.

British High Commission

Avenue Winston Churchill
P.O. Box 547
Yaoundé

Tel: +237 2222 0545/0796
Fax: 237 2222 0148
E-mail: BHC.yaounde(at)fco.gov.uk

High commission.

Embassy of Austria (Cameroon is covered by the Austrian Embassy in Nigeria)

Plot 9, Usuma Street, Maitama
Abuja
Nigeria

Tel: +234 706 41 83 226
Fax: +234 9 461 2715
E-mail: abuja-ob(at)bmeia.gv.at

Embassy.

Country Profile Sources

General Information Sources

Corruption Levels Sources

Judicial System

Police

Licences, Infrastructure and Public Utilities

Land Administration

Tax Administration

Customs Administration

Public Procurement and Contracting

Environment, Natural Resources and Extractive Industry

Public Anti-Corruption Initiatives Sources

Private Anti-Corruption Initiatives Sources