BUSINESS IN

September 2021 / N° 103

CAMEROON
MAJOR PROJECTS - AGRICULTURE - ENERGY - MINING - INDUSTRY - SERVICES - FINANCE

Dossier
Where does Cameroon
stand in international
trade?
Henri-Claude
Oyima :
“BGFIBank
Cameroon is
truly one of our Prometal 4, pioneer of
success stories.” African metallurgy.
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Yasmine Bahri-Domon,

France flirts with a nervous

breakdown
There have been some tensions between missing African Heads of State (Covid is
France and French-speaking Africa for to be blamed)
a few weeks now. Algeria, for example,
disliked being told that it was nothing Let’s not forget the Australia-US melo-
or very little before General Bugeaud drama. Recently, Australia let down
arrived in 1836. Mali’s Head of State also France, preferring Uncle Sam’s embrace,
found it quite distasteful to be referred to regarding a €60 billion deal. Putin, on
as the Prime Minister of a government of his side, keeps raising gas prices. Taking
convenience. Another example concerns all these into consideration, it’s quite
the ruling class of Africa’s three Maghreb understandable that the French can’t
countries who learned and didn’t take take it anymore! The same as France’s
well, that a restriction on the issuance of late president, Jacques Chirac, used
Schengen visas had been specially desig- to say about “the noise and smells” of
ned to make things tough for them. African emigrants.

French leaders are a bit on edge these In this context, it wouldn’t come as a sur-
days and shouldn’t be toyed with too prise if about half of the French people
much. First, it was African youth who decided to elect as leader a certain per-
rebelled against the CFA, failing to grasp son who’s already been condemned for
the currency was their best friend. Next, incitement to racial hatred and whose
Russia came trampling on France’s only concrete proposal announced to
turf in the Central African Republic, date, would consist in changing all the
a country that the French supported Mohameds of France into Maurice and
substantially in the past. Then, its old all the Yasmines into Jeanine.
friendship with Chad went down the
drain. As if all these were not enough, Maybe the 54 African countries should
UK’s Prime Minister Boris Johnson put some money together to buy two or
keeps wooing some Francophone Africa three Dassault Rafale jets. That would
leaders, who do not seem to dislike it. lighten the mood...
Result: An Africa-France Summit with

N° 104 / October 2021 3

CONTENTS
FOCUS INTERVIEW

08 • C ameroon’s weight in the global trade in 12 • H

 enri-Claude Oyima : “We will show the determi-
2020-21 nation and commitment of the BGFIBank group to
make BGFIBank Cameroon the spearhead of the
09 • C ameroon’s trade gap widened by 7.5% YoY in national economy”
H1 2021
09 • E xport revenues grew by 21.5% YoY in H1 Publisher
Stratline Limited
2021, despite Covid-19
Publication Director
10 • C otton exports up 62% YoY in H1 2021 Yasmine BAHRI-DOMON
Editor
10 • P harmaceuticals and transport equipment Aboudi OTTOU
weighed on import spending as of June 30 Contributors
Brice R. Mbodiam, Sylvain Andzongo, Idriss Linge,
11 • C ameroon’s top 5 foreign trade partners in Muriel EDJO.
2020 Operator
Médiamania Sàrl
12 • T hough in surplus, Cameroon’s trade balance www.mediamania.pro
Maquette : Jérémie FLAUX,
with CEMAC neighbors fell by 9% YoY in 2020 Corrections : Souha TOURE
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34 • C ocoa king Albert MASSIMB, almassimb@yahoo.fr
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4 N° 104 / October 2021

NEWS IN BRIEF

PUBLIC MANAGEMENT P 17-21 AGRIBUSINESS P 27-29

ECONOMY P 22-24 ENERGY P 30-30

FINANCE P 25- 26

N° 104 / October 2021 5

MONTHLY STATISTICS

8 MW
On September 20, 2021, in Yaoundé, the United Nations
Industrial Development Organization (UNIDO) presented

XAF151.2 billion the preliminary design studies for a project aimed at ins-
talling two mini-hydropower plants in the Litoral and the
West.
Between January and July 2021, Cameroon disbursed Once the studies are submitted to the government, the
XAF728 billion to service public debts, according to the na- plants will be built in Manjo (4.6 MW) and Bafang (3.4 MW)
tional sinking fund CAA. That envelope includes XAF151.2 to boost the contribution of renewable energy sources in
billion as interest and XAF577.6 billion as principal. the country’s energy mix.

External debts captured 87.3% of the funds and the remai-

ning 12.7% covered domestic debts.

34.7%
Cameroon exported 14,925 tons of aluminium in H1-2021,
according to figures published by the national institute of
statistics INS. Compared with the 22,869 tons it exported
over the same period in 2020, this represents a 34.7% de-
cline year-on-year.

80 000 m3 The decline is due to the woes of ALUCAM, the only steel
producer in the CEMAC region. The production decline
recorded by the aluminium giant was more pronounced in
Railway transporter Camrail claims a record volume of H1-2021 than in H1-2020 when the coronavirus pandemic
80,000 m3 diesel, unleaded, and jet fuel transported in was raging at full force with unprecedented deregulation
July 2021. Those oil products were supplied to the main oil of foreign trades and important impacts on companies’
depots in Cameroon, thus guaranteeing the availability of operations.
fuels at various filling stations all over the country.
According to the concessionaire of the local railway
network, this performance was facilitated by the pro-
gram “ ExOp Afrique”, launched by Bolloré Transport &
Logistics, as well as the acquisition of 38 new tank wagons
between 2020 and 2021, thanks to the support of “private
Cameroonian operators.”

6 N° 104 / October 2021

COMPANY OF THE MONTH

The most modern steel processing plant in Sub-

Saharan Africa will start operations in Douala in
October 2021

German mechanical engineering were launched in late 2018 and lasted tegic suppliers. Those suppliers
firm SMS group GmbH recently three years. Once commissioned, it are notably electric utility ENEO
launched the testing phase of will boost the country’s production that supplies close to XAF4 billion
Prometal 4, the most modern iron capacity from 200,000 tons to 300,000 energy to Prometal yearly, and GDC
processing plant in the Central tons yearly, official sources claim. that supplies about XAF1.6 billion
African region. The testing phase will worth of gas for the steel producer’s
be completed within four weeks, we Economic impacts operations.
learn.
The plant will also make products At the same time, thanks to the new
«Everything will be set within four like beams, angle irons, smooth bars, plant’s operations, Prometal’s tax
weeks and the plant will be ready for and screws as well as flat bars and contributions will rise and new jobs
production. We are already planning wire rods, which are intermediate will be added. According to the gene-
the inauguration. However, we also products used to manufacture nails. ral tax directorate, between 2010 and
have to complete the development of 2019, Prometal’s tax contributions
the access roads whose construction Currently, except for two Maghreb rose from a little over XAF500 million
works will start shortly under the countries, all the African countries to XAF8 billion. For the company
patronage of MAGZI,» an internal import these products. Hence, with that regularly benefited from the
Prometal source explains. Prometal, Cameroon will be able to government’s support over the past
reduce its trade deficit on iron-based ten years, these contributions exceed
So, by October 2021, Prometal 4 will construction materials by close to XAF10 billion yearly nowadays.
be ready. It is the result of about 50%, we learn.
XAF40 billion investment made by Brice R. Mbodiam
Prometal, leader of the Cameroonian Prometal 4 will indirectly boost the
metal market. Its construction works revenues of its promoters’ stra-

N° 104 / October 2021 7

 FOCUS

Cameroon’s weight in the

global trade in 2020-21
The African Continental Free Trade Statistics (INS) on the country’s with fewer regulatory constraints.
Area (AfCFTA) agreement officially foreign trade in 2020 and 2021. In Another problem is that Cameroon
came into force in January this year. addition to breaking the bias about has about 25% cultivable land but
The deal aims to make Africa a vast Cameroon’s trade partners, the INS still imports huge quantities of rice
market that first benefits Africans, data analysis reveals the challenges to meet domestic demand. The
offering businesses on the continent that still need to be overcome to country buys cargoes of fish every
a potential customer base of 1.3 build a truly robust Cameroonian year to feed the population whereas
billion. economy. it has more than 400 km of coastline,
The AfCFTA is touted as an endless Although Cameroon’s economy is on which foreign fishermen operate.
opportunity for the development said to be «diversified», the largest Ironically, Cameroon spends more
of intra-African trade. While other share of the export earnings comes than CFA100 billion every year to buy
countries may be striving to tap into from a handful of products. Also, fisheries resources that are available
this potential, in Cameroon, the poli- most of the country’s exports are in its waters. This weighs signifi-
tical discourse has not yet translated sold raw without any added value; cantly on forex buffers, the deteriora-
into concrete action. more than 60 years after inde- tion of which has recently raised the
In this edition, Business in Cameroon pendence. INS data show that the spectrum of a new adjustment in the
reviews the place of Cameroon in Cameroonian economy is excessively value of the CFA franc in the CEMAC
the international trade landscape. oriented toward European and Asian region.
The analysis is based on the reports markets, while opportunities are
issued by the National Institute of available closer to home, sometimes Brice R. Mbodiam

8 N° 104 / October 2021

 FOCUS

Cameroon’s trade gap widened by

7.5% YoY in H1 2021
Cameroon posted a trade deficit
of CFA744 billion over the first
six months of 2021, according to
the National Institute of Statistics
(INS). This makes an increase by
7.5% compared to the same period
a year before. “The widened trade
deficit is due to a 15.4% increase
in import expenditures over the
period. Although export revenues
grew by 21.5%, it was not enough to
achieve a balance,» explains the INS.
Export revenues over the period were
CFA1,080 billion, while imports cost
CFA1,824 billion for 5.07 million tons
of goods purchased. This equates to Over the period reviewed, Cameroon or electrical equipment (12%), rice
a 15.4% increase in import value and mainly purchased fuels and lubri- (5%), wheat and meslin (5%). The
a 17.8% increase in import quantity, cants (16%), chemical industry pro- country exports less but imports
compared to H1 2020. ducts (13%) including pharmaceuti- more, putting a strain on its foreign
cals (5%), machinery and mechanical exchange reserves.

Export revenues grew by 21.5% YoY

in H1 2021, despite Covid-19
Cameroon’s export revenues jum-
ped by 21.5% (CFA191 billion) YoY
in the first half of 2021. The country
collected CFA1,080 billion for 3.8
million tons of goods shipped to the
international market, according to the
National Institute of Statistics (INS).

«The increase in export earnings

is attributable to improved sales of
certain key export products. These are
mainly crude petroleum oils - which
increased by 30.7%, raw cocoa beans
(34.2%), raw cotton (59.3%), sawn
timber (6.6%), and logs (13.8%),» INS
revealed. This good performance
reflected the effectiveness of the mea- Cameroon draws its export revenues These include crude petroleum oils
sures deployed by the government from a handful of products. At the end (39%), raw cocoa beans (13%), lique-
to limit the impact of the Covid-19 of June 2021, only six items provided fied natural gas (9%), sawn timber
pandemic on the economy. 80% of the overall export earnings. (7%), raw cotton (7%), and logs (4%).

N° 104 / October 2021 9

 FOCUS

Cotton exports up 62% YoY in H1

2021
Cameroon exported a total of 76,202
tons of cotton over the first half of
2021. This makes an increase of 61.8%
compared to the 47,099 tons sold in
H1 2020, according to data from the
National Institute of Statistics (INS).
The higher volume of raw cotton
sold on the international market
was favored by the gradual return to
normalcy in the global supply chain,
after the disruptions caused by the
coronavirus pandemic.
Internal documents of the Cotton to a «drop of about CFA22 billion in 2021 generated CFA70.8 billion in
Development Corporation turnover YoY and the increase in the revenue, compared to only CFA44.4
(Sodecoton) revealed that at the end cost of storage.” billion in H1 2020. Over the period,
of May 2020, the company «expe- The post-pandemic period saw the cotton was the country’s fifth-largest
rienced a delay in shipment of about sector begin a gradual recovery. source of export earnings (7%), at par
23,000 tons of cotton fiber» that led Cotton exports in the first half of with sawn timber.

Pharmaceuticals and transport

equipment weighed on import
spending as of June 30
Between January and June 2021, No specific reasons were given to imports. Since August 4, 2021, this
Cameroon spent CFA1,824 billion explain the explosion of imports of tariff reduction has reached 20%.
to buy a little more than 5 million transport equipment and pharma- The products Cameroon used to
tons of products. According to the ceutical products. But, Cameroon import remained relatively the same
National Institute of Statistics (INS), has acquired and continues to in the first half of 2021. Fuels and
this import expenditure, which is acquire pharmaceutical products, lubricants, equipment, and other
up in relative value by 15.4% year including shots of Covid-19 vac- food products constitute the largest
on year, mainly went into transport cines and other medical products imports. «The import bill consists
equipment and pharmaceutical to fight the pandemic. At the same mainly of fuels and lubricants (16%),
products. time, on January 1, 2021, the 5th products of the chemical industry
The two product categories, INS phase of tariff dismantling under (13%) including pharmaceuticals
revealed, saw their spending grow by the Cameroon-European Union (5%), machinery and mechanical or
94% during the period under review. Economic Partnership Agreement electrical equipment (12%), rice (5%),
Transport equipment alone saw its (EPA) came into effect. wheat and meslin (5%),» INS reports.
spending increase by 60% YoY over The deal provides for a 10% reduc-
the period. tion in customs duties on vehicle

10 N° 104 / October 2021

 FOCUS

Cameroon’s top 5 foreign trade

partners in 2020

Last year, Cameroon shipped its local ted in its 2020 report on Cameroon’s down 16.5% from 2019. China came
products to more than 126 markets foreign trade. first receiving 17.5% of Cameroon’s
worldwide and collected total reve- import spending. France followed
nue of CFA1,813 billion. This result is In addition to China, the top 5 trade capturing 8.7%, Belgium (5.6%), and
down CFA579 billion, 24.2% year- partners of Cameroon in 2020 were India (5%). The U.S. completed the
on-year, according to data from the made of Italy, which took 10% of the top 5 suppliers of Cameroon in 2020,
National Institute of Statistics (INS). country’s exports, followed by the with 4.4% of the market share.
However, despite the diverse nature Netherlands (9.3%), Spain (6.8%),
of Cameroon’s trading partners, INS and Malaysia (4.2%). According to «From China, Cameroon mainly
says over half (52%) of its products the INS, «three products account for imported machinery and electrical
were shipped to just five countries nearly 91% of exports to Italy: petro- appliances (12%), machines and
that year. leum oils (60.6%), crude aluminum mechanical appliances (10%), iron
(22.9%), and sawn wood (7.3%),» and steel (8%), miscellaneous che-
With 21.5% of the market share, while exports to the Netherlands mical products (7.8%), and cereals
China remains Cameroon’s main were mostly constituted of unpro- (7.4%). From France, Cameroon
trade partner. Better, the Asian cessed cocoa beans (93%) and sawn imported cereals, including wheat
country reinforced this position by wood (4%). Most of the exports to and meslin (16.8%), pharmaceuticals
gaining three percentage points in Malaysia were constituted of lique- (13.2%), machines and mechanical
2020. «The products exported to fied natural gas while the exports to equipment (8.4%), and machinery
China are mainly crude oil (70.5%), Spain were relatively diversified. and electrical equipment (6.3%),»
liquefied natural gas (12.6%), raw said the INS.
wood (9%), and sawn timber (5.8%). In the same year, Cameroon spent
These four products account for 98% CFA3,222 billion to buy products BRM
of exports to China in 2020,» INS sta- from the international market,

N° 104 / October 2021 11

 INTERVIEW

Though in surplus, Cameroon’s trade

balance with CEMAC neighbors fell by
9% YoY in 2020

In 2020, Cameroon recorded a surplus in 2020 represented just 7.4% of its In 2020, Gabon was the first supplier
in its trade balance with neighboring export revenues during the period. In of Cameroon with 0.5% of the market
CEMAC countries [Gabon, Congo, the CEMAC region, Chad accounted share, followed by Equatorial Guinea
Chad, the Central African Republic, for 3.8% of Cameroon’s overall export (0.4%) and the Republic of Congo
and Equatorial Guinea]. According revenues during the period. Next (0.3%). «The products imported
to foreign trade data released by the came Gabon (1.2%) and the Central by Cameroon from other CEMAC
National Institute of Statistics INS, the African Republic (1.2%). countries in 2020 are mainly made
surplus was CFA95.7 billion, down by up of liquefied butane (48.2%) and
CFA9.5 billion (-9%) year on year. During the period, Cameroon’s animal and vegetable fats and oils
exports to CEMAC countries «was (36.1%),» INS revealed.
«This change in foreign trades during mostly constituted of soap and
2020 was one of the consequences of detergents (11.7%), iron or steel bars The institute nevertheless remains
the measures, like border closures and (10.5%), hydraulic cement (5.9%), cautious about the trade figures. As it
partial or complete lockdown, taken Soups and broths and preparations reminds, with the porosity of the bor-
around the world to curb the corona- (5.8%), etc.,» INS experts list, citing ders between CEMAC countries, some
virus pandemic,» the INS explains. customs data. trade exchanges could go unnoticed
by customs. Also, most of the pro-
Over the said period, the drop in Porous borders ducts Cameroon exported to neighbo-
trade surplus was driven by export ring countries were food products and
earnings which fell by CFA23.2 billion According to INS data, revenues from since such products are not taxed by
(-14.7%) year on year, we learn. export to CEMAC fell more than im- importing countries, customs authori-
Specifically, those earnings dropped port expenditures did in 2020. Import ties could have failed to record some
from CFA158.3 billion at the end of spending stood at CFA39.4 billion in trades, INS believed.
2019 to CFA135.1 billion on December 2020, compared to CFA53.2 billion a
31, 2020. year earlier, down CFA13.8 billion. At BRM
the same time, export revenues fell
Overall, the CFA135.1 billion genera- by CFA23.2 billion between the two
ted by Cameroon by exporting goods periods.
and services to its CEMAC neighbors

12 N° 104 / October 2021

 INTERVIEW

Henri-Claude Oyima
“We will show the
determination and commitment
of the BGFIBank group to
make BGFIBank Cameroon the
spearhead of the national
economy”
Around a decade after starting operations in Cameroon, BGFIBank began, last
month, building its social headquarters in the country. The 8-floor building
will cost CFA10 billion and span about 2,572 m2. It is set to be completed before
2023. Besides this investment, the Central African leading banking group said it
would increase its equity in the country. What motivates this commitment? Find
the answer in this interview with BGFIBank’s CEO.
Interview by Aboudi Ottou

Business in Cameroon: On Sep- Henri-Claude Oyima: Building a after 10 years of existence, this bank
tember 21, 2021, you laid the first headquarters is based on ambition is performing well and our objective
stone of BGFIBank Cameroon’s and a certain vision. First, it means in Cameroon is to be among the top
headquarters, a project that costs we have confidence in the country, two banks in the country, not only in
CFA10 billion. How can this invest- in economic actors, and above all in terms of total assets but especially
ment be understood, Knowing our commitment to establish sustai- in terms of support for structuring
that you have been operating in nably. BGFIBank Cameroon is truly financing, both private and public.
the country for over 10yrs now? one of our success stories. Because This is why we had to send the

N° 104 / October 2021 13

 INTERVIEW

market a strong message and there regions. The first region is Gabon, billion in 2020 to CFA5,000 billion
could have been no stronger message which is the main growth driver in 2025. What does this trans-
than building a headquarters. The given its history and contribution late into in terms of net banking
new headquarters reaffirms that we to the group’s net banking income. income, net profit, credit to the
believe in BGFIBank Cameroon, in The second region is Central Africa, economy, deposits..?
the employees and the general mana- where we have chosen two growth HCO: Dynamique 2025 is an ambi-
gement team of this bank, as well as centers, Cameroon inclusive. The tion, with objectives of performance
in all the other stakeholders. third region is West Africa, the Indian and profitability. It has 5 pillars and
Ocean, and Europe. And there, the 25 priorities. Dynamique 2025 is
BC: Regarding investments, you growth pole is Ivory Coast. You can about expectations and obligations,
also plan to increase the bank’s see that we have chosen one or two and it integrates 4 business lines
equity in Cameroon in the medium growth centers in each region to (corporate banking, commercial
term. According to our informa- drive the group’s overall growth and banking, private banking and asset
tion, in January 2021, you already guarantee its competitiveness. management, and specialized finan-
increased it by 10 billion CFA Why Cameroon in the CEMAC? cial services and insurance). I can
francs and plan to add the same Because the Cameroonian economy confirm that the target is, indeed, to
amount in 2023. What are your is quite dynamic. There are well-es- reach a total balance sheet of 5,000
goals in this area by 2025? tablished businesses that believe in billion by 2025, with a return on
HCO: We launched the bank’s acti- the country and our pan-Africanist equity of at least 15%, a net operating
vities with an equity of 10 billion, vision. That is to say that, today, more ratio of no more than 55%, and a
which is the regulatory minimum. than ever, Africa can only develop solvency ratio of at least 15%. These
Now, we have increased it to 20 bil- with its resources. figures attest to the group’s determi-
lion. And you are well aware that the Moreover, Cameroon has a popu- nation to be more resilient.
more equity a bank has, the more it lation, including a market. There is
can support economic actors. Having an important depth, and the rate of BC: In what ways do you expect
already doubled our equity, we banking is still low (around 12%). Cameroon to contribute to the
indeed plan to add about 10 billion Nowadays, banks have the capacities, achievement of Dynamique 2025’s
more in 2023, bringing it to 30 billion. ours, in particular, to support every goals?
With 30 billion of equity in 2023, key project that Cameroonian autho- HCO: As one of the group’s subsidia-
and a big headquarters that will be rities launch to improve populations’ ries, BGFIBank Cameroon is bound
inaugurated, I hope before that date, well-being. So, we want to support to meet, as much as possible, the
we will show the determination and this move strongly. same criteria of performance and
commitment of the BGFIBank group profitability. As such, we expect this
and the Board of Directors to make BC: In Gabon where you already subsidiary to be more flexible and
BGFIBank Cameroon the spearhead control more than 50% of the mar- committed in the way it serves its
of the national economy. ket, your growth margins reduced customers. Finally, as a corporate
significantly. Isn’t that also one of citizen, BGFIBank Cameroon must
BC: As part of the new business the reasons you want to develop collaborate more with all partners
plan called «Dynamique 2025», your activity in Cameroon? in materializing the group’s CSR
launched in January 2021, you HCO: Given its size and dynamism, strategy.
decided to make Cameroon your Cameroon is the natural market for
growth-driving unit in the CEMAC expansion in the CEMAC zone. The BC: Another objective you clearly
zone, alongside Gabon, which is BGFIBank group cannot ignore such stated earlier is to become one of
your largest market (41% contri- a market that is full of opportunities. the top two banks in the country.
bution to net banking income). To this end, you count on acquisi-
Why Cameroon? BC: The main goal of the “Dyna- tions. Is there already any ongoing
HCO: The group is currently present mique 2025” project is to raise the acquisition move in Cameroon?
in 12 countries, organized into three group’s total assets from CFA3,500 HCO: Until recently, the group’s

14 N° 104 / October 2021

 INTERVIEW

“Our objective in Cameroon is to be among the top two banks in the country...This is why we had to send the market a strong message and there could have been
no stronger message than building a headquarters.”

policy was focused on setting up our of investments. What are your

various branches. Now, after 50 years objectives for financing the eco- BC: You often finance Société na-
of existence, we believe that we can nomy over the next five years? tionale de raffinage du Cameroun
seize any opportunity that comes our HCO: Over the next five years, as we (Sonara). Since May 2019, this
way, including acquisitions if neces- said, our goal is to support structu- company has been on its knees
sary. We are attentive to any oppor- ring projects. We are interested in ba- and the government is looking for
tunity that the Cameroonian market sic sectors such as water, electricity, around CFA250 billion to bring
has to offer, as well as in other telecommunications, infrastructure it back on its feet. On what terms
countries where the group operates. and, in general, the processing of the would you possibly support this
raw materials. We are in a developing revival?
BC: To date, you claim 300 billion country with many opportunities. HCO: We remain a strategic partner

N° 104 / October 2021 15

 INTERVIEW

“There are well-established businesses that believe in the country and our pan-Africanist vision.That is to say that, today, more than ever, Africa can only develop with
its resources.”

of Sonara, which is a vital tool for the HCO: I can confirm that CBCA took BC: You are now present in five
Cameroonian economy. Obviously, as the name of BGFIBank Central Afri- Cemac countries. Only Chad is
partners, we remain attentive to any can Republic after BGFI Holding missing. Do you have any plans to
request that we will examine with all Corporation acquired a significant go there?
the usual benevolence. portion of the bank’s shares. As such, As I said earlier, we are always on the
BGFIBank Central African Republic lookout for opportunities that may
BC: Commercial Bank Centrafrique is now subject to the same gover- arise.
(CBCA) was acquired by the BGFI- nance mechanisms as the other
Bank Group in September 2021. entities of the group.nent will surge
How much did you spend on this rapidly with its adoption.
acquisition and what is your stake?

16 N° 104 / October 2021

PUBLIC MANAGEMENT
Douala-Bangui-Ndjamena corridor:
Cameroon introduces single transit permit to
save time and reduce hassles

Cameroon recently introduced the mixed team will develop a data-sha- two days. The Ministry explains that
single transit permit for trips along ring system between Camrail and Cameroon chose such a traceable
the Douala-Bangui and Douala- the general customs directorate and transit permit because it was noted
Ndjamena corridors. This digital oversee the development of a shared that the existing transit regulations
permit issued by customs authori- digital platform. are not equitably applied, thus
ties aims to certify that goods being According to customs authorities, causing administrative problems
transported through roads and the team will monitor the develop- that create extra financial charges
railways are being conveyed to Chad ment of the digital platform, and for economic operators. These extra
or the Central African Republic. ensure the data shared complies with charges facilitate the introduction of
Ultimately, it helps economic ope- enforceable regulations. It will also huge quantities of uncleared goods
rators save money and time since carry out test runs to detect pos- to the local market. Such a situation
they will not pay clearance fees sible failures and suggest corrective causes a huge revenue shortfall for
twice (in the origin and destination measures, and then launch the plat- the public treasury and fosters unfair
countries). Also, they will no longer form to secure public revenues and competition.
have to declare their goods at the facilitate transit operations on the According to transporters unions,
transloading points (Edea, Belabo, corridors covered. 78,000 trucks operate along the
Ngaoundéré, etc...) For the Ministry of Finance, which Douala-Ndjamena-Bangui corri-
To oversee the permit, the memo- came up with the single transit per- dor. These trucks transport close
randum N°334/MINFI/DGD of mit idea, the collaboration between to XAF340 billion worth of goods
September 16, 2021, was issued; customs authorities and CAMRAIL to Chad and XAF55 billion worth
creating a mixed team constituted will help reduce transit time with the of goods to the Central African
of customs and railway operator transport of goods through railway Republic every year.
CAMRAIL’s agents. Housed at the lasting three days and transporta-
general directorate of customs, the tion by road to borders lasting just

N° 104 / October 2021 17

 PUBLIC MANAGEMENT

Cameroon: messy cash for jobs case hits

telecom regulator ART

In a letter sent on September 20, into the telecom regulatory agen- facilitate the recruitment of some can-
2021, state minister Ferdinand cy’s personnel. To recruit those new didates. While the two board members
Ngoh Ngoh instructed Philemon employees, the board of directors were passing the blame of who tried
Zo’o Zame, Director General of the adjusted a list of 40 recruits invalidated to facilitate the recruitment of some
Telecommunications Regulatory in July 2020 by the Minister of Posts protégés into the institution, a new
Agency (ART), to «release all the neces- and Telecommunications (Minpostel), correspondence surfaced on social
sary data and useful information» that Minette Libom Li Likeng, because media. This correspondence sent to
could help the national anti-corrup- the names on the list were selected wit- the secretary-general of the Senate was
tion commission CONAC access the hout test or respecting the organizatio- attributed to Philemon Zo’o Zame, di-
integrity of the recruitment the ART nal plan and the human resource need. rector-general of the ART. In this letter
carried out in 2020. that Philemon Zo’o Zame is denying
The genesis (although some sources believe that he
This instruction of the state minister, is the author), it is revealed that Justine
who claims to be following orders from This illegal recruitment case started Diffo Tchuinkam discreetly filled over
the President of the Republic, suggests in mid-2020 with a series of emails 20 of the 40 open positions in the
that there are internal obstacles to the leaked on social media. In the emails, recruitment canceled by the Minister
investigations being carried out by the Simon Kaldjob, an ART board member, of Posts and Telecommunications.
CONAC within the ART. In February accused Justine Diffo Tchuinkam,
2021, CONAC took action following Chairperson of the ART board, of The note adds that it is an open secret
accusations of corruption that marred receiving XAF5 to 6 million from some that Justine Diffo Tchuinkam collects
the agency’s recruitment. According candidates to recruit them into the between XAF5 and 6 million to recruit
to our sources, on February 24, 2021, state institution. candidates to fill open vacancies in
Philemon Zo’o Zame first responded the ART. The information in the note
to a request for information from The accused immediately responded reportedly sent by Philemon Zo’o
Dieudonné Massi Gams, president of with a correspondence to the Minister Zame confirms the accusations of
the CONAC. of Posts and Telecommunications. Simon Kaldjob, who was no longer
In the correspondence, Justine Diffo convened to ART meetings after
At the time, ART’s internal sources Tchuinkam requested a replacement his denunciations (according to a
inform, recruits reputedly close to for Mr. Kaldjob whom she accused of letter from the Minister of Posts and
senior officials were quietly integrated offering huge amounts of money to Telecommunications).

18 N° 104 / October 2021

 PUBLIC MANAGEMENT

Schools, roads, hospitals…: Sub-contracted

public services also affect state firms’
finances (official)

In Cameroon, apart from the huge Nun Valley Development Authority services but these refunds barely
debt and expenditures as well as lack (UNVDA). happen. The company is obliged to
of innovation and competitiveness, The public services they cover renovate the rural roads because
state firms’ performance is also include road maintenance to facili- the budgets dedicated to rural roads
affected by the public service tasks tate access to their production zones, maintenance are significantly lower
they handle. This is the explanation the construction and management of than the needs in Cameroon. «The
provided by a document attached to schools, clinics, and health centers, budget allocated to the maintenance
the 2021 finance bill. training and supervising researchers of rural roads and runways is about
«As part of their operations, some state and farmers, building houses for XAF10 billion, for a road network
companies are required to bear the some officials, as well as manage- estimated by inventories to be
cost of public services, which should ment of security forces. over 100,000 km,» revealed former
have been budgeted in the public SODECOTON, a notable case Minister of Public Works Patrice
investment budget. This situation For instance, SODECOTON claims to Amba Salla before the national
affects the companies’ finances,» the have built 26,000 kilometers of roads assembly in June 2015.
document reads. from its creation in May 1974 to date. This was the equivalent of XAF60,000
The companies facing such a requi- Also, according to internal sources, it budget for every one kilometer of
rement are cotton development renovates close to 7,000 kilometers of rural roads and runways at the time,
corporation SODECOTON, oil palm rural roads every year in the country. in a country where the real costs of
producer PAMOL PLANTATIONS, SODECOTON obtained the govern- dirt road maintenance are estimated
farming products’ exporter CDC, ment’s promise to refund the at XAF2 million per kilometer.
rice producer SEMRY and the Upper expenses related to those public

N° 104 / October 2021 19

 PUBLIC MANAGEMENT

Cameroon to boost water access in the West

with a US-backed project
On September 21, 2021, Minister of Tribune, for the project, water utility of the water transport and distribu-
Economy Alamine Ousmane Mey CAMWATER has already obtained tion system, as well as increasing the
signed a XAF3 billion loan agree- funding agreements from US storage capacity to boost drinking
ment with Humaya Harati, Director- investors. water access rates, which is currently
general of Export Finance-Deutsche «It is important for the US to sup- 45% in rural areas and 77% in urban
Bank, for the feasibility studies of a port its firms that plan to invest in zones, according to the National
water supply project to be carried Cameroon to promote development Institute of Statistics.
out in Buea, Tiko, and Mutengene, and help provide basic needs to the
Western Cameroon. population,» Humaya Harati praises.
According to state media Cameroon The project consists of the extension

Port of Kribi: South II customs sector

collected close to 100% of its 2020 revenues
in H1-2021
The South II customs sector covering
the Kribi deep seaport collected
XAF73.56 billion of customs reve-
nues in the first semester of 2021,
according to a review presented on
September 8, 2021, by the advisory
committee of the Port Authority of
Kribi (PAK).
For the committee, those revenues
collected within just six months
almost equal the XAF78 billion the
sector collected in the whole of 2020
and are over thrice the XAF19 billion
the customs region collected in 2019.
«With such exponential rise in its
customs’ revenues, the South II
customs sector becomes the second-
largest customs earning provider
in Cameroon, behind the Littoral
I sector [ed. note: Littoral I covers foreign trade operations at the operations of this French-Chinese
Douala where the Port of Douala Kribi deep seaport, notably at the consortium almost doubled from
is located],» the PAK wrote in the container terminal operated by the 10,999 (20-feet containers) handled
newsletter it published on September Kribi Conteneurs Terminal (KCT). in H1-2020 to 26,023 (20-feet contai-
10, 2021. According to official figures, during ners) handled in H1-2021.
This situation is proof of dynamic the first six months of 2021, the

20 N° 104 / October 2021

 PUBLIC MANAGEMENT

Yaounde commissions a fecal sludge

treatment plant, a first step in its sectoral
reorganization process

Yaoundé recently commissioned its city, in slums, which are flood-prone tools.
first fecal sludge treatment plant, areas, therefore exposing residents to In that regard, Mr. Messi Atangana
according to a release signed by its significant health risks. invited waste management companies
mayor Luc Atangana Messi. The €4.3 With the new treatment plant whose to comply with the rules governing
million (over XAF2.8 billion) plant capacity is 200 m3 daily, those risks are non-collective sanitation facilities’
was installed thanks to the support mitigated. The Yaounde City Council, sludge removal, transport and dum-
of the International Association of through its technical teams, will ma- ping. So, each of the operators must
Francophone Mayors (AIMF). nage the plant with the assistance of obtain approvals, acquire a GPS-
According to the project’s technical Delvic-Era Cameroun, an engineering equipped emptying truck and a license.
specifications, in Yaoundé, residents firm. At the same time, the city council «The mayor is counting on each of the
(over 3 million) mostly handle their will introduce innovations to improve operators concerned for the successful
sanitation tasks themselves. But, the management and profitability of reorganization of the sludge manage-
drainage services offered by the private waste disposal. The aim is to regulate ment industry in the capital city,» he
sector are not at par because of the di- the industry, facilitate the entrance of said.
lapidated state of the trucks used and companies interested in the industry
the lack of treatment sites. As a result, by introducing a licensing system and
fecal sludges are dumped outside the developing monitoring and planning

N° 104 / October 2021 21

ECONOMY
Foreign trade: Togo became Cameroon’s
leading African supplier of petroleum
products in 2020 (INS)
In 2020, Togo became Cameroon’s INS comments. For the statistics export them to various countries.
leading African supplier and the institution, as Togo is neither a Since the May 2019 fire outbreak
7th worldwide, according to figures fuel and lubricants producer nor that destroyed part of the plants of
published by the National Institute supplier, it could not have supplied SONARA, Cameroon’s only refinery,
for Statistics (INS). During the said 300,000 tons of products in this the country has been importing
period, Togo accounted for 3.6% category to Cameroon in 2020. The finished petroleum products for local
of Cameroon’s overall imports, we fuels from Togo are not produced in needs. For instance, for the current
learn. the country. They are rather impor- Q3-2021, the government recruited
However, «the figures need to be ted through the Port of Lome which traders who would supply 390,000
taken with utmost caution because is attractive to economic operators metric tons of petroleum products
the only products imported from that use the port platform to receive for the domestic market.
Togo are fuel and lubricants», the diverse products from abroad and

US hospitality giant Hilton announces a new

hotel in Douala
American multinational hospita- this market. Through DoubleTree by Located in Bonanjo, Douala’s
lity brand Hilton announced, on Hilton Douala, we can be present in business district, the new 141-room
September 20, its upcoming esta- the country’s economic capital in a Hilton hotel is near several busi-
blishment in Douala, after its first well-established location that is well nesses and administrative buildings
hotel already built in Yaoundé. In known to international visitors,» at some 6-km from the Douala
that regard, the multinational signed commented Andrew McLachlan, International Airport. It will have
an agreement with Société locale Managing Director for Development five restaurants, including a specialty
Nouvelle des Cocotiers (SNC) for in Sub-Saharan Africa. restaurant, an all-day restaurant, a
the launch of its luxurious commer- «Hilton is a well-established name in panoramic bar, a lobby bar, and a
cial brand DoubleTree by Hilton in the hospitality industry in Cameroon. café. The hotel will also have four
Douala. According to the official We are therefore proud to partner individual meeting rooms and a
schedule, the hotel would open in with them to redevelop this hotel and ballroom, a spa and fitness facilities,
2023, after several millions of US dol- introduce DoubleTree by Hilton in as well as a playground.
lars are invested to renovate Douala Cameroon. After the completion of The DoubleTree by Hilton brand has
Rabingha formerly owned by SNC. our exciting renovation plan, we are more than 18 properties in operation
«Hilton has a strong tradition of hospi- confident that the property will set a or under development in Africa but
tality in Cameroon with over 30 years new modern and luxurious accommo- the global portfolio includes more
of operations in the country. I am dation standard in the city of Douala,» than 600 hotels in 48 countries with
delighted by this portfolio expansion added Mamoudou Fadil, SNC vice destinations like Addis Ababa, Cape
and the launch of a second brand in president. Town, and Nairobi.

22 N° 104 / October 2021

 ECONOMY

Nachtigal Hydro Power Company commits to

supporting vocational training in Cameroon
Minister of Employment and Minister of Water and Energy Gaston For human resources experts, the
Vocational Training Issa Tchiroma Eloundou Essomba issued a call for human resource development
Bakary recently signed a partnership expression of interest for the elabo- strategy and similar initiatives like
agreement with Nachtigal Hydro ration of a human resources develop- the partnership between the NHPC
Power Company (NHPC), the project ment strategy in the hydroelectricity and the Ministry of Employment
company in charge of the 420MW sector. would help reduce the importation
Nachtigal dam, to support vocatio- The selected firm will elaborate a of hydroelectricity skills, reduce
nal training institutions under the curriculum of courses covering the maintenance costs (because such
Ministry of Vocational Training. whole hydroelectricity value chain, expensive contracts are usually
The agreement includes the promo- identify the current training gap and outsourced to foreign contractors),
tion of the local labor force, youth future needs in the local electricity and guarantee the infrastructures are
employment, and micro-project fi- sector. It will also lay out a 20-year effectively maintained.
nancing in the project area. It occurs human resources development plan
just weeks after Cameroon, through for the sub-sector.

Penja Pepper: OAPI suggests actions to

revitalize the sector affected by frauds,
insecurity, and diseases
Several problems are affecting the who sell other varieties of pepper as plan on January 28, 2020,» the OAPI
smooth operations of the Protected Penja pepper since there are noti- informs.
Geographical Indication (PGI) label ceably no signs to distinguish fake The performance contract has
awarded to the Penja Pepper in Penja Peppers from real ones, the two main goals: strengthening the
Cameroon, the African Intellectual source adds. «Hence the interest of technical and financial autonomy of
Property Organization (OAPI) reveals a logo to be stamped on the original the GR-IGPP and the Penja Pepper
in a 2021 report assessing the project products. Pepper can be grown eve- Sorting and Packaging Center (CAC),
PPOV - aimed at Strengthening rywhere but, because of its particular as well as ensuring the develop-
and Promoting the Plant Variety quality, Penja pepper has a higher ment of the Penja Pepper Protected
Protection System. value and must therefore be sold at a geographical indication by attracting
Despite the development potentials higher price, « the OAPI writes. small farmers into the sector.
the Penja Pepper offers the local For the property organization, the The Penja Pepper Protected
economy, several factors contri- main challenges for the group in Geographical Indication label was
buted to the decline the industry charge of the Penja Pepper label are awarded by the OAPI in 2013. The
fell into since 2016. According to to revitalize the sector, boost produ- GR-IGPP ensures the geographical
the report, those factors include cers’ access to profitable markets and indication conditions are met to
repeated frauds, the continuous drop fight frauds and counterfeiting both guarantee the quality of the Penja
in the price of Penja Pepper in local inside and outside Cameroon. pepper. According to the Bangui
markets [less than XAF10,000 per «To meet those challenges, Denis agreement creating the OAPI,
kilogrm], the tax pressure, insecurity Bohoussou, Director-General of «Geographical Indication («GI»)
in the areas covered by the geogra- OAPI, and Rene Claude Metomo, is a sign which identifies goods as
phical indication label, producers’ President of the Group of Protected originating from a specific locality
disregard for the conditions of the Geographical Indication (PGI) Penja or region in a country, given that the
PGI, farmers’ credit access problems, Pepper producers, signed a perfor- quality, reputation, or other charac-
climate change, and pepper diseases. mance contract for the implementa- teristics are essentially attributable
Consumers are scammed by sellers tion of the geographical indication’s to the specific locality or region.»

N° 104 / October 2021 23

 ECONOMY

Cameroon: Rice imports rose 23% YoY in H1-

2021
During the first six months of 2021, benefit neighboring countries. neighboring countries,» the INS
Cameroon imported 319,330 tons According to the INS, a signifi- previously explained in its 2019
of rice, according to recent figures cant share of the rice imported by report on Cameroon’s foreign trade.
published by the national institute Cameroon is fraudulently reexpor- In its recent report on the strategic
of statistics INS. This is up by 59,038 ted to neighboring countries. «The positioning of cereals and by-pro-
tons (23%) compared with the local production is estimated at ducts processing, the Enterprises
260,292 tons of rice imported during 217,280 tons and demand at 757,000 Upgrading Office BMN revealed that
the same period in 2020. tons. Supposing that households’ 70% of Cameroon’s rice production
To import such volume of rice in consumption habits have not is exported to Nigeria because of
H1-2021, the country spent XAF86 changed significantly between logistics issues as well as the quality
billion, up by over XAF15 billion 2018 and 2019, there is a close to of the rice produced (there is a high
(21%) compared with the XAF70.9 332,300 tons gap between supply and percentage of impurity and broken
billion it spent on rice imports in demand. This gap valued at about sediment in Cameroon’s rice).
H1-2020. These imports that affect XAF87 billion can be explained by
the country’s trade balance usually the fraudulent re-exportations to

CIMENCAM calls for measures to help cope

with additional production costs generated
by the health and economic crisis
Yesterday September 14, 2021, in expenses via tax incentives or even January and June 2021, the prices of
Yaoundé, Minister of Commerce by passing part of the expenses onto clinker, rebar, and gypsum rose by
Luc Magloire Mbarga Atangana cement prices. (…) The issue here is 100%, 95.54%, and 60% respectively,
granted an audience to a delegation how we will manage the additional compared with their rates during that
of LafargeHolcim Maroc Afrique production cost of XAF1200 per bag same period in 2020. At the same time,
(LHMA), the majority shareholder in of cement,» declared Xavier Saint- the prices of wheat, soybean, and corn
CIMENCAM, one of the main cement Martin Tillet. rose by 31.6%, 6%, 73%, and 98.4%
producers in Cameroon. During «Cement production costs are fluc- respectively and maritime freight
the audience, the delegation, led by tuating due to health and economic rates rose three folds,» Luc Magloire
LHMA’s President and CEO Xavier constraints. We are here to discuss Mbarga Atangana wrote.
Saint-Martin Tillet, informed that how the government can help the com- So, «in the future, price adjustments
because of the rise in international pany continue to produce cement at could come into play, notably in the
clinker prices, cement prices should acceptable prices,» added Yves Mbele construction material industry where
normally go up by XAF1200. Ndoe, Chairman of CIMENCAM’s the last price controlling measure was
Due to the rising clinker prices, administrative board. issued over ten years ago in a much
CIMENCAM is currently facing On September 2, 2021, the Minister different context,» he added.
between XAF2 to 3 billion additio- had contacted the World Trade For the time being, the government
nal expenses monthly. If we were to Organization, through corres- is maintaining the official price of
pass those expenses, the price of a pondence sent to its director-general XAF4,900 per 50-kg bag in Yaoundé
cement bag would exceed XAF6,000. Ngozi Okonjo-Iweala. In his corres- and XAF4300 in Douala where
We have come to exchange with the pondence, the official reported the CIMENCAM has its main plant.
Minister of Commerce on how we unprecedented deregulation of inter-
can reduce part of those additional national trade. «For instance, between

24 N° 104 / October 2021

FINANCE
BEAC: Cameroon to raise XAF275 bln in the
debt market in Q4-2021
Cameroon plans to issue XAF275 bil- raised will fund investment projects Recently, Sylvester Moh, Director-
lion of public securities in the Bank and help deal with the country’s cash General of the Treasury, revealed that
of Central African States (BEAC) flow needs. the bid-to-cover ratio for Cameroon’s
market in the fourth quarter of this Specifically, with six issuance ope- securities in the BEAC market
year. According to credible sources, rations, Cameroon plans to raise usually averages 120%; meaning,
the securities issued will include XAF120 billion of short-term finan- for every XAF100 sourced in the
both short-term bills (up to 52-weeks cing and XAF155 billion of long-term market, the country usually receives
maturation period) and long-term financing. It should not be that hard a XAF120 offer.
bands (between two and ten years for the country to raise the funds it
maturation period). The amount is expecting from the said market.

Central Africa: Afreximbank opens its

regional office in Yaounde, Cameroon
On September 22, 2021, the African indicates. quintuple the bank’s interventions in the
Export-Import Bank (Afreximbank) ope- The headquarters agreement of this Central African sub-region to $5 billion
ned the doors of its new Yaounde office new office was signed in Yaounde, on [XAF2,799.8 billion] in the next three
to the media as a prelude to the official December 13, 2019, by Lejeune Mbella, years. The bank will increase the number
inauguration coming up on September Cameroonian Minister of External of institutions that will benefit from
24. Relations, and Okey Oramah, CEO of credit facilities in the region. Currently,
The office, which will serve the Central Afreximbank. four banks have benefited from our
Africa region, is temporarily located at In the medium term, the Central Africa credit facilities. We plan to increase it
the headquarters of the national social Regional Office is expected to strengthen to 15 banks in the next two years,» said
security fund CNPS. «The new office the financial services sector by impro- René Awambeng, head of client relations
covers Cameroon, the Central African ving and expanding the region’s access for Afreximbank.
Republic, Chad, Congo, the Democratic to affordable and competitive financing The new office’s permanent head-
Republic of Congo, Equatorial Guinea, and advisory services for a range of local quarters will be located in Etoudi, on
and Gabon. The creation of an banks, exporters, importers, and domes- a 5,000 m2 site. The dimensions of the
Afreximbank regional office for Central tic investors. building have not been disclosed yet but
Africa is in line with the Bank’s growing « Afreximbank intends to open over information has it that it will include a
geographical coverage. The new office $500 million of consumer and refinan- world-class hotel, a business information
brings to five the number of Afreximbank cing lines to banks over the next five center, a conference center, and a trade
regional offices across Africa,» the Bank years. With the new office, we plan to center.

N° 104 / October 2021 25

 FINANCE

CEMAC: BEAC launches another liquidity

withdrawing operation to combat inflation
Today September 21, 2021, in the Through this operation, the BEAC replaced by liquidity injections to
CEMAC region, the Central bank intends to withdraw XAF100 billion support the CEMAC banking system
BEAC launched an operation aimed of liquidity from commercial banks and boost financing to economies
at withdrawing liquidity from the with excess liquidity, an official re- amid the coronavirus pandemic.
regional financial system. lease informs. According to experts, This resumption of liquidity absorp-
According to the central bank, the when a bank has excess liquidity tion operations indicates that the
credit institutions concerned by this it could inject more money than it coronavirus pandemic’s impacts on
operation are those qualified as capi- should into the economic circuit, CEMAC economies are easing. Even
tal providers on the money market therefore, facilitating inflationary an economic recovery is forecasted
and those that have not requested pressures. for 2021 after the recession recorded
refinancing from the BEAC in the The liquidity absorption operations in 2020.
twelve months before the operations. were suspended in March 2020 and

Cameroon: BGFIBank announces 2-fold plan

to overrun competition
BGFIBank will build its national In the framework of the project, apart market in 2011 but currently, it is
headquarters in Douala, Henri-Claude from the projected headquarters, officially the fifth leading bank behind
Oyima, CEO of BGFIBank group BGFIBank will invest in information Afriland First Bank, Société Générale,
indicated yesterday September 15, technologies and boost its equity in Bicec and Société commerciale de
2021, during an interview with local Cameroon. In January 2021, the group banque du Cameroun.
media EcoMatin. «Next week [ed. note: increased its capital from XAF10 to 20 «Within 10 years in Cameroon,
the week of September 20-26, 2021] billion. In 2023, the group is expected to BGFIBank illustrated itself with major
we will lay the foundation stone of our increase it again to XAF40 billion. achievements in social, energy, and in-
Cameroonian headquarters in Douala,» «Cameroon is a pole of growth and dustrial infrastructure with a cumulated
the executive declared. as such, we will develop our strategy investment now in the XAF200 billion
According to Henri-Claude Oyima, the to overrun the competition. Our aim mark,» declared Abakal Mahamat, MD
construction of that headquarters is is not to stay static but to be the top 3 of BGFIBank Cameroon when signing a
part of the third pillar of Dynamique in the Cameroonian market. To fulfill XAF100 billion funding agreement with
2025, the group’s project aimed at that ambition, we have a two-fold plan: electric utility ENEO and eight local
achieving a total net worth of XAF5,000 performance improvement and acquisi- banks.
billion by 2025 against XAF3,500 billion tions,» Henri-Claude Oyima explained.
at end-December 2020. BGFIBank entered the Cameroonian

26 N° 104 / October 2021

AGRIBUSINESS
Cameroon: Prodel injected XAF10 bln in 88
projects in Jan-Sep 2021
The World Bank-backed Livestock organizations. duce close to 100 liters of milk daily.
Development Project (Prodel) Overall, 88 business plans out of Out of the US$134.15 million (close
recently published its activity report the 131 validated were financed, to XAF78.4 billion) approved on
covering the first nine months of representing a 67% achievement rate, October 27, 2016, by the World Bank’s
2021. From the report, it appears the Prodel explains. administrative board for the project,
project funded business plans to the According to the World Bank, thanks over US$100 million (XAF58.5 bil-
tune of XAF10.12 billion. The World to Prodel, producers were able to lion) have already been committed.
Bank contributed XAF6.06 billion, improve and increase their milk pro- Meanwhile, the project is scheduled
against XAF2.62 billion by partner duction capacities, access veterinary to end on January 31, 2023.
financial institutions and XAF1.44 services, and obtain quality inputs.
billion by beneficiary producer Also, some cattle owners now pro-

CEMAC: Coffee and cocoa boosted

agricultural products’ export price index in
Q2-2021 (BEAC)
The prices of agricultural products exported
by CEMAC countries in the second quarter of
2021 rose by 1.8%, down from 2.2% in Q1-2021,
according to the Bank of Central African States
(BEAC).
This improvement in the prices of agricultural
products was mainly due to four products. They
are namely coffee, sugar, palm oil, and cotton.
«Coffee prices rose by 10.0% to $2.89/kg in the
second quarter of 2021, compared with $2.62/
kg in the previous quarter, owing to the drop in
production because of poor weather conditions
in Brazil (the world’s leading producer) and the
social protest in Colombia (the world’s third-
largest producer),» BEAC explained.
At the same time, sugar prices rose by 8.3%
quarter-on-quarter, compared with 6.7% for palm
oil and only 1.7% for cotton whose prices rose by
16.2% in Q1-2021.

N° 104 / October 2021 27

 AGRIBUSINESS

Kribi to soon host two plantain production

and fish-farming clusters

In the framework of its far belt project commits to producing only plantain industries, and tourism, with the possi-
in Kribi, the host town of a deep sea- and farm fish on the land during bility to create thousands of jobs.»
port, agroforestry cooperative Coop CA the [10-year] amortization period,» The project is also aimed at ensuring
AIO is currently planning to create two indicates Samuel Tony Obam Bikoue. that enough quality Cameroonian
plantain production and fish-farming The cooperative will also sell high-yield farm produce are exported through the
clusters in the town. seeds, quality fish fries, and fertilizers deep seaport, as well as establishing
For that purpose, Samuel Tony Obam to the investors. Also, it will offer processing units in the port’s industrial
Bikoue, chairman of the cooperative’s services like business plan develop- area to process the products from the
board, recently issued a call for expres- ment as well as business incubation.is belt.
sion of interest for people who want November 2018, while presenting the At the time, Henri Eyebe Ayissi estima-
to invest in the farm belt. Specifically, farm belt project, the then Minister of ted the funds needed for the project
Coop CA AIO will sell lands to the Agriculture Henri Eyebe Ayissi indica- at XAF5 billion. Overall, the project is
investors with a 10-year amortization ted that it aimed to feed the growing expected to create 7,500 jobs within
plan. population in Kribi, which has become five years, at the rate of 1,500 rural jobs
«This offer is valid only if the buyer the «new eldorado for port activities, yearly.

28 N° 104 / October 2021

 AGRIBUSINESS

Cameroon: The western region brings its

African swine fever outbreak under control
On September 14, 2021, Awa Fonka «All of the analysis of Laboratoire the regional pig farming industry,
Augustine, governor of the Western national vétérinaire (Lanavet) were therefore, guaranteeing supply for
region, signed a decision terminating negative in Yaounde,» Bernard Souop the coming end-of-year celebrations.
restrictions on the transportation Ngeutchouessi, chairman of the wes-
and commercialization of pigs and tern region pig farmers association, The African Swine Fever was officially
by-products in the region. According told Cameroon Tribune. In short, the declared in the region in June 2021.
to the governor, the decision was African Swine Fever outbreak seems Within four months, it caused the
issued because of the respite in the to be under control in that region. death and the slaughter of 90,000
African Swine Fever outbreak in the pigs out of the 400,000 in the West.
West, which is one of the largest pig The decision just issued by the
farming regions in Cameroon. governor, after three months of
suspension, will immediately revive

Cameroon fine-tunes a draft law on organic

agriculture
From September 9 to 10, 2021, in «In Africa, a small number organic process. Organic farming «improves
Yaoundé, a workshop was orga- agriculture data is recorded in official the sustainability of the agricultural
nized to pre-validate the draft bill statistics. Yet it is increasingly present system. In some circumstances, its
governing organic agriculture in in local and export markets. African specific techniques can improve farm
Cameroon. Presided by Minister consumers’ demand for those types of productivity even though yields are
of Agriculture Clémentine Ananga products is rising, providing a dyna- lower than the average recorded for
Messina, this workshop was aimed mic economic opportunity,» CIRAD mainstream agriculture.»
at collecting the proposals of some explained in a paper titled «l’agricul-
actors to advance the draft project. ture biologique en Afrique : un levier Despite its advantages and the
d’innovations pour le développement growing demand, organic farming
Once finalized, the project being agricole» (Organic agriculture in is still not promoted in Africa.
carried out by the Cameroonian go- Africa : A source of innovation for According to the International
vernment, in collaboration with the agricultural development). Federation of Organic agriculture
German Cooperation Agency GIZ, IFOAM and Research Institute FIBL,
will formalize organic agriculture in According to the CIRAD, orga- organic farms cover just 1.2 million
Cameroon but it will also open new nic farming reduces the negative hectares in the continent, represen-
avenues given the growing demand impacts of agriculture on the envi- ting just 0.2% of its cultivated areas.
for those types of products in Africa. ronment and health since there is
no chemical input in the production

N° 104 / October 2021 29

ENERGY
Cameroon: ENEO’s cashflow problems force
energy rationing in the Northern regions again
apply fuel in thermal power plants in
the northern regions in 2021 at XAF30
billion, XF18 billion more than initial
projections.

Solar plants
With the transfer of 20MW of thermal
energy generation capacity from Ahala
to Garoua (12MW) and Ngaoundéré
(8 MW) in January 2021, the fuel costs
needed for the northern region rose
by XAF3 billion monthly, authorized
sources explain.
To mitigate the energy deficit that
is affecting households and busi-
nesses in the three northern regions,
ENEO plans to inject 30MW of solar
energy into the North Interconnected
Network (NIN) as of January 2022.
On September 26, electric utility ENEO According to documents seen by To achieve such ambition, the electric
resumed with energy rationing in the Business in Cameroon, as of May 31, utility hopes it will quickly finalize
three northern regions of Cameroon, 2021, the debt owed by the government energy production contracts with
an official release informs. According to ENEO was XAF163.073 billion. As Norwegian company Scatec, with the
to the utility company, the rationings at the same period, ENEO was still support of the government.
were resumed because of the worsened claiming XAF44.524 billion from state Officially, Scatec will install modu-
hydrological drought that substantially companies making it a total of XAF207 lar solar power plants leased by the
reduced production at the Lagdo dam. billion owed to ENEO by state compa- government for four years. The cost of
The situation got worse because of nies and institutions. the lease has not been disclosed but it
ENEO’s inability to supply diesel to Due to that important debt, the is expected to reduce power outages by
thermal plants in the three regions. electric utility explains it is currently 98% in the Northern regions.
«The cash flow problems facing the unable to supply fuel to thermal power Minister of Water and Energy Gaston
electricity sector are the result of plants in the northern regions where Eloundou Essomba says the modular
unpaid bills accumulated by some the «significant and regular cash flow power plants will reduce fuel expen-
large state companies and the non- needs” are constantly growing and ditures needed to run thermal power
payment by the government, of the logistics is complex. plants in this part of Cameron by XAF5
weekly XAF1 billion that usually covers In late 2020, a correspondence between billion over the first nine months of
the current expenditures,» ENEO the Minister of Water and Energy and operations.
explains. ENEO estimated the cost required to

30 N° 104 / October 2021

 ENERGY

CEMAC: China’s economic recovery boosts

the price of energy products exported by
member countries
In the second quarter of 2021, the
prices of energy products exported
by CEMAC countries (oil and gas
namely) rose by 12.2%. According
to a report published by the Bank
of Central African States (BEAC)
on September 21, 2021, this price
acceleration is a little below the
+35.5% recorded during the previous
quarter.
Specifically, in Q2-2021, the price of
a barrel of crude oil appreciated by
13.1%, against 9.3% for natural gas.
“This improvement in the prices
can be explained by the strong
revival of the economy of China
(world-leading oil importer) and the
decision taken in early June 2021, by
the Organization of the Petroleum
Exporting Countries (OPEC) and
Russia to maintain the strict quat it nevertheless boosted the mem- six-member countries produce oil
policy implemented last year,” the ber countries’ foreign reserves and and four of them (Congo, Equatorial
BEAC wrote in its report. provided much-needed financial Guinea, Chad, and Gabon) mostly
Even though the price increase resources for the five oil producers in depend on oil exports for their public
was lower than the Q1-2021 level, the community. Indeed five out of the revenues.

Energy frauds: ENEO announces nationwide

inspection of electrical installations
Electric utility ENEO announces a na- tion in Cameroon. (...) The fight against inconveniences that can go as far as
tionwide operation aimed at inspecting the illegal use of electricity preserves legal proceedings.
electrical installations. According to the the general interest. Eneo Cameroon is According to the utility company, 30%
company, this operation is organized eager to have everyone involved. When of the energy distributed in Cameroon
as part of its energy fraud combatting an inspection team comes to your is used by fraudulent networks causing
efforts. doorstep, please cooperate to facilitate about XAF60 billions of losses yearly.
«The main objective of this operation the operation,» ENEO pleads. Such practices thus deprive the energy
is to secure the electricity network The electric utility also invites users who sector of much-needed resources, that
and to control clients’ installations in are knowingly in irregular situations could have been invested to improve
accordance with Article 13 of the Public to get in touch with its branches to service quality, while at the same time
Electricity Distribution Service regula- normalize their situations and avoid endangers lives and properties.

N° 104 / October 2021 31

 ENERGY

Chollet dam (600MW): Project launch still

delayed by fundraising problems in Congo
(official note)

For four years now, the 600MW try to release the financial resources Fund CAA between 2015 and 2018.
Chollet hydroelectricity project included in the state budget year after Later, in May 2019, XAF200 million
remain stagnant, according to a joint year for the project. The proper imple- was transferred to the same account
note published by the Cameroonian mentation of the project depends on making a total of XAF590 million.
Ministry of Energy and its Congolese the Ministry of Finance and Budget’s When the account was closed on
peer. decision to release the funds allocated February 28, 2020, the remaining
This is due to the fundraising to this project. It is the sine qua non for balance was XAF381.86 million. That
problems experienced in Congo, the Cameroonian party to transfer the balance was transferred to a new
the note explains. «Since 2017, the funds to the Project account opened at project account housed at the Bank
Ministry of Energy and Hydraulics the Congo Postal Bank in Brazzaville, of Central African States (BEAC). In
of Congo has taken the necessary « the note reads. early September 2021, the balance
steps to raise the funds included in The counterpart fund to be provided of the project account housed at
the 2017, 2018, 2019, and 2020 state by Congo is to fund the stationing of the BEAC was a little below XAF100
budgets. Unfortunately, all these efforts project staff in Brazzaville, Congo. billion since part of the opening
have remained unsuccessful. The However, since the appointment balance was used to fund expert
Ministry of Finance and Budget has of officials (director and deputy meetings, inter-state committee
not, to date, followed up on the many director) in 2016, the experts and sessions, and tender procedures.
promises made to representatives of Cameroonian staff can not move to Nevertheless, on June 24, 2021,
the Ministry of Energy and Hydraulics Brazzaville because the Congolese China Gezhouba Group Company
and the project management (…) The party has not released its coun- was selected as the developer of this
problems faced by the Congolese party terpart funding. Even the project project whose costs are estimated at
have therefore blocked the ambitions headquarters built by Société énergie XAF354 or 670 billion depending on
of the project. This situation does not électrique du Congo is still not the development option that will be
allow the timely implementation of equipped. implemented. The energy produced
all the decisions taken by the Inter- Meanwhile, Cameroon claims to will supply Cameroon, Congo, and
State Steering Committee and our have effectively transferred XAF390 the Central African Republic.
two countries’ expectations. To honor million to the project account ope-
its dignity, the Congolese party must ned at UBA Cameroon via its sinking

32 N° 104 / October 2021

 ENERGY

CEMAC: Equatorial Guinea meets

with Cameroonian authorities to boost
cooperation in the hydrocarbons sector
same time request President Paul
Biya’s approval. Without much detail,
he informed that the Cameroonian
president deemed the initiative
beneficial for economic development
during these challenging times.
Cameroon and Equatorial Guinea are
convinced that in the CEMAC region,
economic development requires an
enhancement of commercial ex-
changes between member countries
and their African peers, Gabriel
Mbaga Obiang Lima explained.»We
cannot always depend on trade
exchanges with the USA, Europe, and
Asia. We need to develop intra-regio-
nal trades,» he added.
According to the official, Cameroon
is not the only country targeted by
Equatoguinean Minister of Mines discussions will lead to an enhan- Equatorial Guinea for the enhance-
and Hydrocarbons Gabriel Mbaga cement of cooperation between ment of cooperation in the hydrocar-
Obiang Lima was granted an Cameroon and Equatorial Guinea bons sector. For instance, he said, his
audience on September 13, 2021, by in the hydrocarbons sector. The country recently chartered a vessel
Paul Biya, President of the Republic Equatoguinean emissary explained to send methanol to Gabon and
of Cameroon. that he came to present his country’s negotiations are ongoing to import
According to the Presidency of the new initiative to boost trade with oil and gas from Nigeria to Equatorial
Republic of Cameroon, the ongoing other African nations and at the Guinea.

Cameroon: National Hydrocarbons

Corporation SNH announces investment in
the renewable energy industry
In its recent periodical, the National Should the project come to fruition, ding solar and biomass resources.
Hydrocarbons Corporation SNH it will mark the start of diversifica- However, energy access is still low, in
announced its ambition to exploit tion in this state-owned company, rural areas notably. In the North and
development opportunities in the which is currently focused on hydro- the Far North, that low energy access
renewable energy sector. The corpo- carbons management. In Cameroon, is more pronounced with just 22%
ration provided no further details the renewable energy industry is of electrification rate and over 95%
on the investments projected but it nascent. According to UNESCO, the of households using wood fire for
stresses that it is in line with its 2020- country has an important renewable cooking purposes.
2024 strategic plan. energy potential with outstan-

N° 104 / October 2021 33

LEADER OF THE MONTH

Cocoa king Ndongo Essomba cedes his

assets to US Cargill’s local dealer
Telcar Cocoa

Jean Bernard Ndongo Essomba been disclosed but this operation industry in Cameroon. During the
(photo), one of the first comes as no surprise. About three current 2021-2022 cocoa season, the
Cameroonians to enter the cocoa years ago, there were rumors that company will surely buy more cocoa
industry, discreetly sold his business Jean Bernard Ndongo Essomba than the 67,835 tons (representing
to Telcar Cocoa, a local dealer repre- was planning to sell his assets in 22.1% of the overall production) it
senting US firm Cargill, authorized the cocoa industry. Around that bought in the previous season. By
sources reveal. period, there was a slowdown in acquiring Ndongo Essomba’s cocoa
«The deal was sealed weeks ago the operations of the dealer who assets, Telcar Cocoa will consoli-
after months of negotiation. I think was, for a long time, part of the top date its competitive position in the
it was concluded before the 2021- 3 actors in the Cameroonian cocoa Central region. Indeed, that region,
2022 cocoa campaign [ed. note: the industry - behind Telcar Cocoa and which became the leading cocoa
season was launched in Kekem last Olam. Overall, during the 2010-2021 producing area after the start of the
August 10],» a source close to the season, Ets Ndongo Essomba was separatist crisis in the South-west
case informs. absent from the top 4 of the leading [ed. note: the South-western region
«In Yaoundé, you can notice that actors in the market. was Telcar Cocoa’s favorite mar-
one of Ndongo Essomba’s ware- A chapter of Cameroon’s cocoa ket], was Ndongo Essomba’s main
houses is already adorned with dealing history is thus concluded. market.
Telcar Cocoa’s colors,» a cocoa With the dealer’s withdrawal from
operator points out. the market, Telcar Cocoa is now BRM
The value of the transaction has not the undisputed leader of the cocoa

34 N° 104 / October 2021

 LEADER DU MOIS

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