Fon Amos - Business in Cameroon

32 Pages·2013·1.88 MB·English

major projects
business in
agriculture
energy
mining
05 cameroon industry
N°
3 - services
1
0
e 2 Finance
n
u
J
Fon Amos: “Providing IMF Pressures
Financial Services Cameroon
to Poor Community to Stop Fuel
Members is Expensive” Subsidies
p7-9 and 26 p10
EtIndE BloCk IM-5
1,050 billion
cubic feet of gas
p12-13
How to Revive the Cocoa
and Coffee Sectors?
p15-16

business in cameroon
!
Maiden
I
nvestors are lining up to court Cameroon. Hell-bent on hurling rocks at Cameroon, the
Hardly a week goes by without an investor tales they weave about this peaceful nation are
from this nook or that cranny of the globe always told with the same angle. Hardly ever
coming to knock at its door. have they presented a story that reflects the
on-going positive transformation that Camer-
Numerous investors have flown into Cameroon, oon is experiencing.
and our country representatives have also travelled
abroad to encourage foreign investment. The truth is that President Biya opted for political
reforms in 1990, when multi-party politics were
On January 29, 2013, President Paul Biya was in established. The latest milestone in this never-end-
France, where he met with members of a cartel of ing quest to see Cameroon rise above its challenges
French entrepreneurs who are interested in doing was the election of the first senators on April 14,
business in Cameroon. 2013. International observers confirmed that the
elections were free and fair.
On March 26, 2013, the President was in Ankara
and Istanbul at the request of his Turkish counter- A number of mega projects are now under way,
part, Abdullah Gül, to sell the country’s potential especially in the energy sector, the motor of Cam-
to the world’s 14th largest economy. eroon’s economic growth. Big and small thieves
who used to pass for the President’s acolytes and
This is an incredible feat for a country that has dip into the public purse are now in jail. It is time
faced scathing attacks from journalists, bloggers, for the media to begin reporting on the story of
and human rights organisations. They have brand- Cameroon’s promising economy.
ed Cameroon as a place of corruption and human
rights abuses, with little or no effort to first check Jude Viban
their facts or verify their outrageous claims.
Business in Cameroon
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Publication Director • Yasmine BAHRI-DOMON
Contributors • Agence EcOfIN, Jude VIBAN, John MAcINtOcH • www.agenceecofin.com
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In cameroon • [email protected] • tel [phone]
Printing • Rotimpres, Aiguaviva, Espagne
Circulation • Juste Albert MASSIMB • [email protected] • tel : [phone] ou 00 237 77 75 13 98
free – cannot be sold
June 2013 / N° 5 -3-
business in cameroon
Contents
34Maiden! 144Govind Group Plans to Build Pipeline
to Cut Fuel Transportation Costs in
64CASTING
Cameroon
74Fon Amos: Why Providing Financial 154Cocoa Agreement Now Binds Cameroon
Services to Poor Community Members is
and Europe
Expensive in Cameroon
154Nestle To Open a CFAF 20 Billion Coffee
Processing Plant in Cameroon
164CFAF 72 Billion to Revive Cocoa and
Coffee Sectors
104IMF Pressures Cameroon to Stop Fuel 164G roupe Ferrero to Build CFAF 9.8
Billion Chocolate Factory in South West
Subsidies
Cameroon
104CFAF 6 Billion in German Aid Left
Untouched by Cameroon
114Sitrafer Workers Strike over Unpaid
Salaries
114SMEs Represent Only 36% of Cameroon’s
Market
124NHC Confirms Discovery of Condensate
and Gas in Etinde Block 174Cameroon Increases Yield Capacity of
Cassava Seedlings to 35 Tons/Hectare
124OiLibya Wants to Increase the
Distribution of its Cooking Gas 174221,000 Tons of Cotton Harvested This
Season
134Ferrostaal Signs a Gas Supply Agreement
with Euroil and NHC for its Giant 184IRAD to Benefit from Argentina’s
Experience in Livestock to Bridge the
Fertiliser Plant in Limbe
Beef Supply Gap
134Total Cameroun, a French Multinational,
Lost 2.5% of its Market Share in 2012 184CFAF 530 Million to Double Fish Output
in the Adamawa Region
144Rolling Blackouts and Power Cuts Are
Main Obstacles to Business Growth in 194Tobacco Industry: FPTC under a
Caretaker Administration
Cameroon
-4- June 2013 / N° 5
business in cameroon
194Cameroon Exhibits in Algeria 244UBA Managing Director Praises
Cameroon’s Business Climate
204Authorities Order Destruction of 7,000
Tons of Imported Burmese Rice 254Cameroon Debt Recovery Company Pays
the Creditors of Méridien BIAO Bank 16
Years after Collapse
254Bank of Africa Wants to Open in
Cameroon
254Deposits Guarantee Fund is Operational
after Four Years of Incubation
204Herakles Farms Suspends its Activities in
Cameroon
214Garoua to Become Cameroon’s Third
International Airport
214Aero Contractors on Douala Tarmac as of 264Rainmaker, an American Company, Sets
May 27 Sight on Cameroon’s Health Sector
224Cameroon Shipyard Signs Two MOUs to 264CFAF 12 Billion to Reform Cameroon’s
Restore Past Glory Microfinance Sector
224Cameroon Wants To Build 50 Bridges All 274MTN Cameroon False Ads: The Regulator
Over the Ten Regions Condemns, the Company Carries on
234Yaoundé-Douala Motorway: Green Light 2746,000 km of Fibre Optic Cables under
for the First 10 km Cameroon
234Malaysian Company to Build Two 274KOICA to Finance Cameroon’s One-Stop
Hydroelectric Dams in Cameroon Shop for Viewing and Bidding on State
Contracts Online
284Jean-Marie Takam and Othon Niwa
Long Caught in Mismanagement Net at
MATGENIE
284Mbengwi Credit Union is Latest Victim in
Wave of Bank Robberies
234CFAF 195 Million for a Posts and 29420 Poachers Armed With Machine Guns
Telecommunications Hotel in Maroua
Caught in Dragnet
244Afriland First Bank Declares CFAF 300 294Three Robberies at Ecobank Cameroon in
billion Portfolio in Bank Credits in 2012
Less Than Two Years
June 2013 / N° 5 -5-
business in cameroon nominations
CAStInG
PiErrE YvEs Damnon
Pierre Yves Damnon, a French na-
tional, is the new General Manager of
CIMENCAM (Cimenteries du Cam-
eroun), the country’s only cement pro-
ducer. Pierre Moukoko Mbonjo, CI-
Paul Elung ChE
MENCAM’s Chairman of the Board and the Minister of
Foreign Affairs, made the nomination effective on April 25,
Paul Elung Che, the 45 year-old former 2013 at the company’s Bonaberi factory in Douala. Dam-
General Manager of the Cameroonian non replaces Ravi Iyer, an Indian who took over from an-
Treasury, has been appointed Gen- other French national, Jean-Pierre Le Boulicaut, in 2008.
eral Manager of the Cameroon Hy- Pierre Yves Damnon started his career in 1982 at Group
drocarbons Prices Stabilization Fund Lafarge. Before this appointment, he was the Gener-
(CSPH). Through a decree signed al Manager of Lafarge Morocco. He wants to preserve
by President Paul Biya on April 26, CIMENCAM’s position as the leader of Cameroon’s ce-
2013, the new GM replaces Ibrahim Talba Mala, who was ment market. “There is increasing competition in the cement
appointed GM of Cameroon’s National Refinery (SO- market in Cameroon. CIMENCAM has been here for 50
NARA) last February. years. It is cement from CIMENCAM that built Cameroon,
After a first degree from the University of Yaoundé, Elung and we want to remain the leader in the sector,” said the new
Che obtained a master’s degree in financial management GM. “We want all Cameroonians to have access to cement
from Harvard University, USA. He then enrolled at the that has been made with passion and the sweat of our brow,”
National School of Magistracy (ENAM) in Yaoundé, and he added.
graduated two years later as Inspector of Treasury. CIMENCAM produces about 1.7 million tons of cement
per year, but it is facing increasing competition from im-
ported cement. Morocco’s CIMAF and Nigeria’s Dangote
raPhaEl FutE
are two rival companies that produce locally. Group La-
farge is the majority shareholder of CIMENCAM with a
On May 13, 2013, Raphael Fute, the 55% stake, while the government of Cameroon holds 43%.
General Manager of the Compagnie
Professionnelle d’Assurances (CPA) was
PatriCia BErtholot
elected President of the Association
of Cameroon Insurance Companies
(ASAC) during its general assembly in According to the daily Mutations, Patri-
Yaoundé. He takes over from Martin cia Bertholot is leaving Cameroon to be-
Foncha, GM of Colina All Life. come the General Manager of Seychelles
Regarding his vision, Fute said that his team will work hard Breweries Ltd effective May 1st, 2013.
to restore public confidence in the insurance sector, and he After five years as Marketing Manager
promised that victims of catastrophes would be quickly of Guinness Cameroon SA (Subs of Di-
compensated. “We will strive to make the insurance market ageo), she is leaving just as the company
credible in everyone’s eyes,” he stated. announces that it will start cutting jobs on July 1st.
He also promised to improve communication on the sec- In February 2010, Bertholot surprised everyone by resign-
tor’s activities. “We have realised that people criticise us because ing as Marketing Manager at Brasseries du Cameroun, a rival
they do not know what we are doing. We are going to commu- of Guinness Cameroon, where she took up the same job.
nicate more so that people can better understand what we do,” Patricia Bertholot loves the marketing world. “It is a world
he said. that has rules, but of course, it is also about creativity. It is a
Mr Fute’s vision is in line with the recommendations of dynamic world where you have to constantly reinvent yourself,”
the 37th General Assembly of the Federation of Insurance she told an online journal, Comnews, in an interview.
Companies of Africa (FANAF). During the assembly, FA- Seychelles Breweries Ltd is one of Seychelles’ largest com-
NAF called on insurance companies to simplify compen- panies. Founded in 1983, it sells an average of 580,000 li-
sation procedures for victims of catastrophes and to create tres of beer and 800,000 litres of soft drinks per month,
guarantee funds for cars. according to Seychelles’ Business Nation.
-6- June 2013 / N° 5
Focus business in cameroon
Fon Amos: Why Providing
Financial Services to Poor
Community Members is
Expensive in Cameroon
financial services, banks and mi- of society, as a way to help them
Cameroon’s micro-finance sector
cro-finance combined. This means increase their earnings and create
is growing, but there is a mission
that less than 1.8 million people in small businesses. Instead of serving
drift. Fon Amos shared with us his
Cameroon have access to finance or the poor, most micro-finance insti-
thoughts about possible solutions.
have bank accounts. There is there- tutions today serve people who al-
With over 25 years of experience,
fore a big gap to be filled. Access ready have access to financial servic-
he is currently a Management
es. For example, some will open to
and Development Consultant at
pay salaries, which means that cus-
the Centre for Microfinance and
“Most of the people
tomers are already working some-
Micro-Enterprise Development
where; the institution is only facili-
(CEMMED). He is also a pio- who work in micro-
tating the transfer or movement of
neer in micro-finance as a Head of
finance institutions this money. You also discover that
Department at the Catholic Uni-
most financial and micro-finance
versity of Cameroon (CATUC) in read books about
institutions try to set up offices in
Bamenda.
banking, finance, and the main streets of our major cit-
Business in Cameroon: What is ies, rather than moving back to our
your assessment of the micro-fi- accounting. When they villages, where they could provide
nance sector in Cameroon, par- financial services to communities
come to our classes,
ticularly in the North-West, where where services do not exist. You will
you are based? they are often hearing realise of course that providing fi-
Fon Amos: Micro-finance is grow- nancial services to poor community
ing in Cameroon, in the CEMAC about the principles of members is expensive: it costs more
region, and in the North-West Re- to give out so many little loans.
micro-finance for the
gion of Cameroon. This is where it Seeking to avoid this, institutions
originated way back in the 1960s, very first time.” that want to become viable drift
when credit unions were started towards the places where it will be
in Njinikom and Kikakelahki, in easier to deliver services without in-
Kumbo. Yet the situation regarding to credit, savings, and remittances curring too many costs. I agree that
the access of poor people to financ- goes a long way in improving the there has been a mission drift.
ing is not encouraging, to say the standard of living and decelerating
least. Overall, we could count about the poverty alienation process. Not BIC: Your institution trains people
a 1,000 micro-finance institutions enough people have access to credit. in micro-finance. Is this a way to
in Cameroon, but it is unlikely say that current micro-finance op-
that they serve more than 500,000 BIC: Can we say that there has been erators are not trained?
customers. One report that I read a mission drift? What accounts for FA: The answer to that question is
in 2008 said that less than 500,000 the lack of access to credit by many a categorical “yes”. Micro-finance
customers belong to micro-finance Cameroonians? is financial intermediation with
institutions. The penetration rate FA: Micro-finance was initially in- a dual mission: one financial, the
in Cameroon is less than 3%, which tended as a way to provide financial other social. To be able to deliver
means that less than 3% of Cam- services, savings, loans, and money financial services with a social mis-
eroonians have access to formal transfers for the poorer segments sion, operators need to have back-
June 2013 / N° 5 -7-
business in cameroon Focus
ground training in development can achieve its poverty alleviation
tools. If people are trained in con- mission?
ventional banking but are deliver- FA: When building inclusive finan-
ing micro-finance, something will cial systems, there are three major
be missing. They will not be able players. At the macro level, there
to understand that regardless of is the government, which provides
everything else they might do, they legislation, regulation, and super-
must consciously try to serve the vision. It must provide an enabling
poor community, despite the chal- environment for micro-finance to
lenges. If people do not have this thrive: this means ensuring the ex-
background, they will inadvertent- istence of appropriate legislation
ly do what is easier, i.e., they will and adequate supervision, as well as
serve the community’s rich people. providing the regulatory structures
In reality, it is a misperception to that ensure that members’ deposits
believe that this is easier. If you are protected. In short, the govern-
go back to Muhammed Yunus’ ment ensures that the players are
Grameen Bank, the recovery rate doing their work well, but it does
on loans that were granted without not get directly involved as a depos-
collateral was around 98%, and the it taker or a loan granter.
BIC: What is the next level?
“If micro-finance was
FA: The next level is about provid-
ing infrastructure, auditing, ratings,
promoted and it was
supervision, and capacity build-
allowed to play its role, ing. This is the role my institution,
CEMMED, is playing. I can assure
institutions would be
you that there are not many similar
able to deliver many institutions in Cameroon, yet they
are quite important. These are the
small loans to small institutions that help to translate
government policy into micro-level
entrepreneurs, who
institutions, which actually deliver
would then create the products and services.
jobs.” BIC: The government is involved ernment loan and later refuse to
in micro-finance in several ways. pay; they claim that the loan was
What do you think of programs given to encourage them to vote
rate of default was just 2%. We are like PIASSI, which are actually mi- for this or that. If the government
giving our trainees the appropriate cro-financial in nature? has good loans and other things to
tools they need to run a micro-fi- FA: The government has a num- offer, it could use these measures to
nance institution. I think that peo- ber of loan schemes within the strengthen existing micro-finance
ple do the wrong thing because financial system. I think that the institutions. This could be done by
they do not know how to do other- government’s direct involvement providing them with appropriate
wise, not because this is what they in the delivery of credit has never equipment and the right kind of
set out to do. Most of the people been successful. This is not only training to ensure their sustainabil-
who work in micro-finance insti- the case of Cameroon; just have a ity over the longer term. The gov-
tutions read books about banking, look at the cases of FONADER and ernment should not be involved in
finance, and accounting. When FOGAPE. The government comes direct lending.
they come to our classes, they are in with distorted loan schemes and
often hearing about the principles certain kinds of rates that people BIC: What is the importance of
of micro-finance for the very first rush to take advantage of, but they micro-finance in getting most
time. With our target of training never come back to pay. People Cameroonians out of poverty?
500 people in micro-financing, use the money to pay other insti- FA: In Cameroon, most people are
I truly hope that we will change tutions, and never pay the state. in the middle class. These people
many things in the industry. Most government loans have very can move the economy forward
high default rates because people by creating small businesses. With
BIC: What role does government consider them as some kind of gift. a population of about 19 million
need to play so that micro-finance Sometimes, people take out a gov- people and a working population
-8- June 2013 / N° 5
Focus business in cameroon
of about 12 million, only 200,000 which means that it recognises that fon Amos Development. In fact, the name
work in the public service. Where training is necessary if we want mi- Manage- says it all! We train people who are
ment and
are the other 11.8 million people cro-finance to move forward. This already working in micro-finance.
Deve-
working? If micro-finance was pro- training has to be done at all levels. lopment We do this with an association in
moted and it was allowed to play its Even parliamentarians should take consultant the UK, and in partnership with
at the
role, institutions would be able to it: they need to know about mi- cEMMED Maconi University in Italy. We also
deliver many small loans to small cro-finance before they can legislate offer training on small business
entrepreneurs, who would then cre- it. I think that the sector can grow management. Recently, we part-
ate jobs, say between one and twen- if the proper regulation is adopted nered with the National Employ-
ty. This would get many people out to provide an enabling environ- ment Fund (NEF) to train the peo-
of unemployment and have a posi- ment. It will be a telling sign when ple who will be giving loans to do
tive spiral effect. the government begins offering mi- poultry farming and other forms of
cro-finance at the degree level and farming. We also offer customised
BIC: Where will micro-finance be in HND programmes. The Catholic training, for example if an institu-
in Cameroon in the next ten or University of Cameroon–Bamenda tion in difficulty needs some basic
twenty years? is currently offering micro-finance training in business planning or
FA: There are enormous challeng- at the bachelor degree level. The human resources management. For
es. I am glad that the government chances of growth are there if all of example, if you run a business and
is taking an interest in the sector. this is put in place. are facing difficulties, we can come
The growth and employment strat- in to do an assessment and see how
egy paper talks about fostering the BIC: What does the CEMMED do, we can help put your business back
development of micro-finance. specifically? on track.
The government is talking about FA: CEMMED is the Centre for Mi-
training and capacity building, crofinance and Micro-Enterprise Interviewed by Jude Viban
June 2013 / N° 5 -9-
business in cameroon economy
imF Pressures
Cameroon to stop
Fuel subsidies
CFAF 6
Billion in
German
Aid Left
Untouched
by Cameroon
Mario De Zamaroczy, the leader of the Subsidies on a litre of petrol jumped During an evaluation meeting on May
delegation from the International Mon- from 47 francs CFA in January 2010 to 6, 2013 in Yaoundé, it was revealed
etary Fund (IMF), claimed that Came- 260 francs CFA in January 2013. that 6.21 billion francs CFA of aid
roon will have to stop subsidising fuel. from Germany was left unspent be-
“Cameroon needs to explain to its citizens According to Ibrahim Talba Malla, the tween 2006 and 2008.
the need for these reforms,” he said dur- General Manager of Cameroon’s sole
ing a debate entitled “Energy Subsidies: refinery (SONARA), his corporation According to the head of the German
Cameroon and International Experi- receives only 20% of fuel subsidies, so delegation, Susanne Schnöeder, the
ences” in Yaoundé on May 13, 2013. consumers benefit the most. meeting aimed to assess the progress
made to date in the implementation
Subsidies hit an all-time high in 2013, In his view, the problem is acute because of projects and programmes, and to
representing between 3.5% and 4% of Cameroon refines only 20% of its crude make proposals for the future.
Gross Domestic Product (GDP). Ac- oil. But this figure could go up once
cording to Mr De Zamaroczy, Came- on-going expansion work is completed. Emmanuel Nganou Djoumessi, the
roon needs to “make certain choices to This will also improve the country’s bal- Minister of Economy, Planning and
succeed in these reforms.” The Minister ance of payments. Regional Development who also rep-
of Finance (Alamine Ousmane Mey), resented the government, indicated
leaders of transporters’ trade unions, Since 2008, Cameroon has been subsi- a number of priority areas in which
and civil society representatives also dising petrol, gasoil, and kerosene. Sub- Germany could help Cameroon be-
participated in the debate. sidies cost the state 944 billion francs tween 2014 and 2016. Germany has
CFA between 2009 and 2013, which is already provided aid for decentraliza-
If the government did not subsidise pet- about 7.3% of the country’s GDP, indi- tion, local development, and gover-
rol, a litre would cost 820 francs CFA in- cated the IMF. nance through programs worth about
stead of the current price of 569 francs 54 billion francs CFA in the 2011-
CFA at gas stations. JM 2013 period.
-10- June 2013 / N° 5