Cameroon

Investing in Cameroon

FDI in figures | Why you should choose to invest in Cameroon | Procedures relative to foreign investment | Finding assistance for further information

FDI in figures

Cameroon receives very little FDI, as proven by its ranking in the 101st position of countries that receive the most FDI in 2006 (out of 141). Cameroon should improve and simplify its administration in order to revive the establishment of companies and attract FDI. In reality, Cameroon has plenty of natural resources (petrol, forestry, fisheries) on which the country can capitalize to move ahead. However, this shall not be achieved without the necessary reforms in the Cameroonian administration.

Foreign Direct Investment	2005	2006	2007
FDI inward flow (millions USD)	225	309	284
FDI stock (millions USD)	3,202	3,511	3,796
Performance Index*, ranking on 141 economies	91	101	114
Potential Index**, ranking on 141 economies	115	112	-
Number of Greenfield investments***	1	1	1
FDI inwards (in % of GFCF****)	6.7	7.8	6.2
FDI stock (in % of GDP)	18.9	19.0	18.4

Source: UNCTAD

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest in Cameroon

Strong points: The main tax advantage in Cameroon lies in the free zones. Any company with an export vocation, ie. producing goods or services destined exclusively for export can remain in a free zone. There are many advantages for the company: exemption from all licenses, authorization or limitation of quotas for exports as for imports; possibility to open accounts in a foreign currency; absence of restrictions on sales operations, purchase of foreign exchange, the right to transfer realized profits abroad (however 25% should be reinvested in Cameroon); life-time exemption from all customs duties and taxes; total exemption from all duties and taxes over a period of 10 years from the start of business activities; a total taxation of 15% on profits from the 11th year onwards.
Weak points: For creating a company in Cameroon, the number of steps to be completed, the duration and the costs of the different procedures are quite a put-off for any investor. The numerous steps necessary for starting a company are discouraging for any investor. A sort of an assault course that takes around 37 days and costs approximately 152.2% of the income per resident. Even more curious is the fact that registering the title of a proprietorship in Cameroon takes around 93 days.
Government measures to motivate or restrict FDI: The position of the Cameroonian government seems clear: to attract a maximum number of foreign investors. Certain sectors have already been targeted. They are those of transport, the agro-industries, tourism, rural development, etc.....

Procedures relative to foreign investment

Freedom of establishment: In Cameroon, there is freedom of starting a trade.
Acquisition of holdings: Foreign nationals can be 100% owners of a company.
Obligation to declare: The World Association of Investment Promotion Agencies in the country gives information on the authorizations necessary for implantation.
Nevertheless, the candidate has to satisfy, according to the circumstances, the following conditions :
- to be registered either with the Registry of Commerce or with the Communal Repertory ;
- to have made a declaration of existence ;
- to possess a professional trader's card ;
- to dispose of property and material installations when they are necessary ;
- to respect other professional obligations, especially in tax matters ;
- to obtain a prior authorization (for foreign nationals)
Competent organization for the declaration: Cameroon Info
Invest in the Franc Zone
Government Portal
Requests for specific authorizations: For more information, click on Invest in the Franc Zone.