Cameroon Embassy

Cameroon is blessed with an abundance of natural resources, including in the agriculture, mining, forestry, and oil and gas sectors. Cameroon is the commercial and economic leader in the sub-region, though regional trade, especially with Nigeria, remains under-realized.

Cameroon's economy is highly dependent on commodity exports, and swings in world prices strongly affect its growth. The government has professed a determination to foster urgent economic growth and job creation, and there is a decided up-tick in interest in the mining sector. For a quarter-century following independence, Cameroon was one of the most prosperous countries in Africa. Today, Cameroon is still one of the most prosperous countries and one of the most stable in terms of business security.

The government has embarked upon a series of economic reform programs supported by the World Bank and International Monetary Fund (IMF) which began in the late 1980s. 

Official statistics indicate that inflation is under control (projected by the World Bank at 2.9% in 2008). In March 2008, the government announced a reduction in food import tariffs and other measures designed to reduce the cost of basic commodities.

The European Union remains Cameroon's main trading bloc, accounting for about 36.6% of total imports and 66.1% of exports. France is Cameroon's main trading partner, but the United States is the leading investor in Cameroon (largely through the Chad-Cameroon pipeline and energy provider AES SONEL).

Shipping

Cameroon's major port is in Douala, with smaller ports in Limbe, Kribi, and Garoua. To improve port efficiency, the Cameroon government made the port administration autonomous in 2000. An average of three days is needed to clear goods through customs. In December 1997, the Cameroon government liberalized auxiliary port and maritime services, and the maritime transport sector is now open to any transporter serving Cameroon ports. Cameroon has a relatively well-developed rail system, which was privatized in 1998, and three international airports, along with 50 small airports or airstrips. Domestic passenger and cargo air service is largely dominated by the national airline, Cameroon Airlines (Camair).

Banking and Finance

Banking

The Bank of Central African States with the french acronym; BEAC, regulates the sector through the Regional Banking Commission, COBAC. COBAC has the authority to take disciplinary action. Both COBAC and the Cameroon Ministry of Finance and Budget must license banks, and there are special regulations for small-scale credit cooperatives. A national stock exchange in Douala was inaugurated in the second quarter of 2003. There are several international Banks in Cameroon including the Standard Chartered Bank.

Insurance

Cameroon is one of the fourteen French-speaking African nations that ratified the Inter-African Conference on Insurance Markets Treaty (CIMA) and adopted a common code with respect to the insurance sector. This supra-national code is designed to regulate the insurance sector in all signatory states. Enforcement of the CIMA code of regulations led to the closure of some weak insurance companies and the restructuring of the sector, which is almost completed. Foreign firms can operate in Cameroon, but they must have local partners. There are several foreign insurance companies working in Cameroon with Cameroonian partners.

 Investment Barriers

Capital movements within CEMAC are completely free. Those between CEMAC and third countries are permitted, provided that proper supporting documentation is available and prior notification is given to the exchange control authority. Regarding inward or outward foreign direct investments, investors are required to declare to the Ministry of Finance only those transactions above a prescribed threshold and within 30 days of the realization of the investment.

The Cameroon government welcomes foreign investment. In March 2002, the parliament approved a new investment charter that establishes a new framework for investments in Cameroon. The new charter will integrate recent laws relating to the mining and the petroleum codes.

Cameroon has Bilateral Investment Treaties with a  number of countries including the United States that provides, inter alia, investor-state access to international arbitration, the right to make transfers freely and without delay, and the right of establishment. Cameroon is a member of the Organization for the Harmonization of Business Laws (in French, OHADA).