Business

Minister Emmanuel Nganou Djoumessi in charge of civil works, gathered on Wednesday 18 November 2015, the different stakeholders in the construction of the second bridge linking the economic capitale Douala to its industrial suburb Bonabéri.

President Paul Biya himself had, on 14 November 2013, laid the cornerstone of this project explaining it was urgent to build it to "facilitate exchanges between both banks of the Wouri river". An emergency that the then-Civil Works Minister Patrice Amba Salla, has estimated would take 44 months of work.

A little over 24 months later, only 45% of the works have been completed. The challenges increased for the group of companies selected for the work. A barge which, in January 2015, caused an incident, then delays in eviction operations and sometimes agitations within the workforce who were requesting improvements in the work conditions and salaries.

Minister Djoumessi took the decision to set up a reporting schedule which will be used to monitor the project and identify actions in chronological order. He also invited all stakeholders to fully play their part in the project.

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Ngwa Bertrand

24.Nov.2015

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In 2016, Cameroon's debt will increase by FCfa 1,055 billion. This is what the 2016 Finance bill, which is currently under review at parliament, reveals in addition to a global budget of FCfa 4,234.7 billion, at last balanced between revenue and expenditure (this is different from the FCfa 4,249.8 billion previously announced during a cabinet meeting at the end of October).

After further analysis, 25% of the 2016 budget will come from loans, including FCfa 505 billion to be provided by different international lenders, FCfa 250 billion to raise on the local banking market and FCfa 300 billion as public bonds to issue.

In total, the banks, which are also the only approved Spécialistes en Valeur du Trésor (SVT-Specialists in Treasury Securities) in the country and as a consequence the only institutions allowed to raise funds during issuance of public bonds, will pay approximately FCfa 550 billion to the public Treasury of Cameroon in 2016. This corresponds to 12.% of the country's global budget.

Though this appeal to the banks by the State will contribute towards making the credit portfolio of banking institutions more substantial in general, it could however according to some analysts, make it a bit more difficult for the private sector to access bank funding; due to banks usually having more confidence in the State than in SMEs.

BIC

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Ngwa Bertrand

24.Nov.2015

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The government of Cameroon appears to want to restart the privatisation process in the country. Speaking in parliament during the presentation of the economic and social plan for 2016, Prime Minister Philémon Yang informed that among sources of income, FCfa 120 billion were expected from privatisation revenue.

Finance Minister Ousmane Mey already gave the game away in a speech given on 23 January 2012, at the opening of the annual Finance Ministry central services conference. Mentioning the broad lines of his action for that year, he said part of the fifth plan is to restart the privatisation process for public sector companies following the directives of the government, and pending validation by the office of the President of the Republic.

Moreover, a manager of the Douala Stock Exchange met recently by Ecofin Agency indicated that, without giving full details and under  anonymity, a strategy was being set up to revitalise the financial market and that the general public should expect more IPOs (initial public offerings) in 2016.

Many companies are back in the line of sight of these new privatisations such as Camtel, Camair-Co, the banana subsidiary of CDC, the Société Camerounaise des Dépôts Pétroliers (SCDP) or Société de Développement du Coton (SODECOTON).

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Ngwa Bertrand

24.Nov.2015

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A commercial activities amendment was introduced to the Cameroonian Senate last week 19 November 2015. "This is a good law which will be under consideration by the Trade and Production Commission, and it will be examined in greater detail later on", Peter Mafany Musongue, a Senator talking to journalists, said.

The contents of the text have not made public. But in the opinion of those involved in the process, the law which will be defended by Minister Luc Magloire Atangana in charge of Trade, will look into provisions which since its adoption in 1990 have become obsolete.

The government hopes with this amendment, to generate rules which will permit a better regulation of goods and services trade on the Cameroonian market, with the goal of making more dynamic the local production of goods.

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Ngwa Bertrand

23.Nov.2015

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Members of the Production and Trade Committee of the National Assembly will today November 20, 2015, begin examining a bill on commercial activities in Cameroon. The bill, which seeks to establish a new legal framework for commercial activities in the country, was deposited at the Ngoa-Ekelle Glass House yesterday November 19, 2015 during a plenary sitting chaired by Vice Speaker, Hon. Baoro Théophile.

The spirit of the bill, according to an explanatory statement, is to help better regulate the domestic goods and service markets in order to stimulate production and satisfy the needs of consumers. The proposed bill addresses the need to update and adapt the principles and rules applicable to commercial activities in Cameroon to contemporary legislations given that Law No.90/31 of 31 August 1990 governing the sector has become obsolete in issues of distribution of goods and services in the domestic market, the establishment of commercial offences amongst others.

With the government’s pretentious drive to stem unemployment and combat poverty, the document which comprises 105 sections defines the scope, the conditions for carrying out commercial activities, conditions for transportation, storage and distribution as well as the trader’s accounting obligations amongst others. This is with the objective of fostering competitiveness through the production of goods and services, developing job-creating enterprises as well as streamlining and improving goods and service distribution channels in order to improve the livelihoods of Cameroonians. The bill will be defended by the Minister of Trade, Luc Magloire Mbarga Atangana.

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Ngwa Bertrand

20.Nov.2015

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AIM-listed British company Bowleven plans to drill "two appraisal wells highlighting the significant upside potential identified on the intra Isongo reservoir" on its Etindé permit, offshore Cameroon, a report on the company's year ended on 30 June 2015 revealed. According to Bowleven CEO, Kevin Hart, these wells will be completed "as soon as possible in 2016".

The British oil and gas firm is highly optimistic about this project considering that it already has a $40 million (22 billion FCFA) available budget for the drilling and testing works.

Despite the hardship most exploration and production firms currently go through due the global drop in prices of crude oil, Bowleven says "it took the time to examine (its) current base cost to ensure that it fits its current planning as well as (its) strategic goals". 

Bowleven held 75% of the Etinde permit, a set of three offshore blocks covering 2,316 km2 in Cameroon. However, the British group later inked a stake-sale agreement with Russian Lukoil and New-Age, transferring them 50% of its stakes. This operation was approved by a Presidential decree signed on February 6, 2015.

(Business In Cameroon)

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Ngwa Bertrand

16.Nov.2015

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