Business

Janvier Mongui Sossomba, President of the Chamber of Agriculture, Fisheries, Livestock and Forests (Capef) of Cameroon, has just revealed that the fundraising started in February 2016 to create a microfinance structure, led to the registration of 7,000 subscribers. The global amount of capital subscriptions in Capef’s future microfinance structure, we learn, reaches FCfa 2 billion.

According to the president of Capef, the remainder of the process for the creation of this micro-bank plans for, in the coming days, the organisation of regional general meetings. During these meetings, the representatives of the subscribers, who will take part in the ordinary general meeting which should take place soon in Yaoundé, the capital, will be chosen. During this general meeting, we learn, the name of the structure will be decided, and the decision-making and executive bodies of the future microfinance institution of Capef will be set up.

Meant to reduce the difficulties encountered in accessing financing by farmers, breeders and other small logging operators, the microfinance establishment to be created, Capef claims, will become a relay on the ground for the agricultural bank in development in the country. With an initial capital of FCfa 10 billion, this public bank has been awaited since 2011.

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Rita Akana

31.May.2016

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ameroon's government says that the H5N1 strain of the bird flu virus has reappeared in Cameroon after an 8-year absence.

Livestock minister Dr. Taiga said one person is hospitalized and Cameroon has reported the death of at least 15,000 birds since May 22. He said the country is taking measures to protect both people and birds from further contamination.

Taiga said that 20,000 birds at the affected Mvog Betsi poultry farm in the capital, Yaounde, will be killed.

He said Cameroon has dispatched veterinary staff to all regions of the country to check if there may be other cases and is urging its citizens to report suspected cases.

Poultry farms in Cameroon reported only several hundred deaths in 2008.

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Rita Akana

27.May.2016

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Sugar is in short supply these days in Cameroon, as the government cracks down on illegal imports to protect and promote local industry.

"For several weeks now, I have been going round looking for sugar,” Kum said. “It is scarce in town and, when you see it, the price is high. We used to buy for 700 [CFA, or $1.20] but now that we do not even see it, when you manage to see it you buy for 1,000 francs [$1.71] per packet."

Cameroon produces less than 120,000 tons of sugar each year. Local demand stands at 200,000 tons. 

Cameroonian producers are also exporting some of their supply, illegally, to neighboring countries. But the government is cracking down on that trade. Authorities have also been seizing large shipments of sugar imported from the European Union.

Sugar — like many foreign goods sold in Cameroonian markets — is contraband, says Valentin Mbarga Bihina of Cameroon's Ministry of Trade. It is imported by smugglers under unhealthy conditions and without respect for packaging and conservation norms, he says, adding that Cameroonians should consume locally made goods because it is safer.

Valentin says Cameroon's lone sugar company employs 8,000 people who could lose their jobs if the industry is not protected.

The government took similar action on vegetable oil last year. It stopped the importation of cooking oil from Indonesia and Malaysia after four local companies closed. The government said 50,000 jobs were at stake, but critics say the ban has only driven more smuggling.

Plus, locally made goods are often more expensive.

University of Yaounde economist Ariel Ngnitedem says such protectionist strategies can backfire.

"It is economically unwise for a country to close its market when its production is not even sufficient for its population,” Ngnitedem said. “If other countries also react by closing their markets, where will Cameroon get the goods it does not produce? Where will it sell the ones it produces to export? I think these protectionist measures are more harmful."

Cameroon is not alone in pursuing this strategy. Countries in East Africa, for example, have been considering a ban on used clothing and vehicles to spur industry there.

Proponents say improvements will not happen overnight, but it is a question of short-term pain for long-term gain.

VOA

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Rita Akana

27.May.2016

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The Chinese firm Poly Group Corporation will carry out the works for the second phase of the  project for the construction of a two-lane freeway between Yaoundé and Douala, the two main cities of Cameroon, the pro-government daily announced citing the management of this company headquartered in Beijing.

Contrary to the first phase, we learn from the same source, the works of the 2nd phase will be undertaken based on the Built-Operate-Transfer (BOT) model, through a public-private partnership to be signed between the State of Cameroon and Poly Group Corporation. In other words, the Chinese company will provide the necessary financing, will carry out the work, will manage the freeway for a certain period of time before returning the infrastructure to the Cameroonian State.

The Yaoundé-Douala freeway will be 215 km long. The works of the first phase, covering 80 km, were awarded to the company China First Highway Engineering Company Limited (CFHEC). Financing was provided by Exim Bank of China, who released FCfa 241.4 billion.

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Rita Akana

27.May.2016

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The Cameroonian Minister of Employment and Vocational Training, Zacharie Perevet, has just published two lists of recruitment companies working fraudulently in the country. The first list is made of 44 companies with no valid authorisation or suspended from operation. Therefore, the managers of the companies using workers referred by these agencies are requested to cease all working relations with these unlawful staffing agencies.

The second list, which has 14 companies and staffing agencies, is for companies recently suspended for illegally offering staffing services to Cameroonian companies.

To the two above-mentioned categories of companies, Minister Perevet promised "stricter" sanctions provided for by the current law, in case of non-respect of their suspension or their non-compliance with the regulation on their activities in Cameroon.

BIC

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Rita Akana

25.May.2016

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Information from the Ministry of Water and Energy reveals that the market for Liquefied Petroleum Gas, LPG, commonly known as domestic gas, is shared between 10 marketers. Out of the number, the SCTM Company stands tall, though its market share has in the past years been diminishing sequel to the increase in the number of operators. The marketer, five years, ago, owned 50 per cent of the market shares and by 2014, it dropped to 36.6 per cent and 33.7 per cent in 2015.

Other national marketers battling for fame are Aza (14.4 per cent), Corsa (4.7 per cent), Star Gas (0.2 per cent) and Infotec (0 per cent). Multinationals like Total Cameroun covers 14.9 per cent of the market, followed by Camgaz (12.8 per cent), Tradex (8.7 per cent), Libya Oil (6.1 per cent) and Corlay MRS (4.5 per cent.) It is therefore understandable that shortage in supply of the SCTM brand of LPG inflicts pain on many customers. The SCTM brand for example controls over 80 per cent of the market in the North West, with other brands sharing 20 per cent. In the Littoral, it covers about 55 -60 per cent of the market, with the remaining nine sharing the remaining 40-45 per cent.

The volume of imports has since 2013 witnessed an increase as part of efforts to meet demand. The country’s lone LPG producer, the National Refining Company, SONARA, has since 2013 seen its production capacity increased, though still unable to meet demand. In 2013, the company sent out 13,415 metric tons of LPG.

The amount went up to 15,914 metric tons in 2014 and to 20,941 in 2015. Imports, with the sole operator being Tradex, stood at 66,444 metric tons in 2013 and 71,783 metric tons in 2014. The amount increased to 73,927 metric tons in 2015. National production is below demand, although figures are not yet available of the number of Cameroonians who own and use LPG gas cylinders. This simply explains why it is commonplace to find people still looking for almost all 10 LPG brands.

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Rita Akana

24.May.2016

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