Cameroon Country Profile

Snapshot of the Cameroon Country Profile

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 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 markets procedures.
• The Investment Charter 2002 does not discriminate with regard to equity ownership, permitting full foreign ownership, and the procedures for obtaining land titles have been simplified and the authority decentralised.

Risk of corruption:

• 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.
• Companies should note that unofficial payments have become systematised in clearing goods through customs.
• 18% of the large companies operating in Cameroon admit having resorted to paying bribes in connection with the winning of contracts and of 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 networks.