THE INVESTMENT PROMOTION AGENCY
CAMEROON
Miss Nathalie EKOUMOU
Executive and General Manager Assistant
Investment Promotion Agency - Cameroon
1
PRESENTATION OUTLINE
• Who we are
• Cameroon country profile
• Why invest in Cameroon?
• Focus on renewable energies in Cameroon
• What incentives are offered to investors?
• How to start a business in Cameroon?
2
INVESTMENT PROMOTION AGENCY
•
Parastatal Establishment with financial autonomy and legal personality
•
Date of Création: 1st Septembre 2005
•
Date of Comissioning: 22nd January 2010
•
Technical Supervisory: Ministry of Mines, Industry and Technological
Development
•
Financial Supervisory: Ministry of Finance
3
Welcome, assist,
and orientate local
and foreign businessmen
interested in investing
in Cameroon.
Put in place a
data bank of projects
for the information of
the business milieu.
Promote the image
of
Cameroon abroad
Approve local and
foreign business that are
eligible for incentives
under the Cameroonian
Investiment Code
or Sectoral Codes.
MISSIONS
OF THE
I.P.A.
Collect
information on
investment opportunities
in Cameroon and for
the information
of investors
Participate in the
amelioration of the
business climate
in Cameroon
Propose
to Government
measures towards
attracting F.D.I.
to Cameroon
4
Strategic location
Cameroon is located at the gulf of Guinea, strategically in the heart of
Africa, at the crossroads of the tropical north and the equatorial south.
Cameroon is bordered:
•On the North by the Republic of Chad
•On the East by the Central African Republic
•On the South by Gabon, Equatorial Guinea and Congo Brazzaville
•On the West by the Atlantic Ocean and Nigeria
5
Country Indicators
Land Area :
475, 650 km²
Population:
22 millions inhabitants
Population Growth rate:
2.87% inhabitants per km2.
Population under 20 years: 60.2%
Average population density: 41.81 inhabitants per km2
Life Expectancy :
51,7 years
Infant Mortality:
6.4%
Literacy rate:
61 %
Religions:
56% Christians; 24% Muslims; 30% Animists.
Official Languages:
French and English.
6
Economic Indicators
•
Currency: Franc CFA
•
1 euro=656 Francs CFA; 1 dollar= 500 Francs CFA
•
GDP per capita: USD 1244
•
Distribution of GDP: Primary= 51%; secondary = 27%; tertiary= 22%
•
Inflation: 2.5%
•
Growth rate: 4.5 % (2012 estimates)
•
Gross domestic Investissement: 19% of GDP (2012)
•
Foreign direct investment: USD 337 millions
•
Exports: USD 3156 million(2010)
•
Imports: USD 5061 million(2010)
•
Main exports: petroleum, cocoa, coffee, wood, alumina, rubber,
banana, cotton
7
Why Invest In Cameroon?
• Creation of market regulation institutions within the electricity, water and
telecom sectors to ensure market transparency.
• Privitization of inefficient state-run enterprises (more than 150 of them)
• Availability technical, higher education and university establishments that
graduate yearly more than 10000 university graduates in various fields
such as engineering, marketing, law, human sciences, medical sciences
etc.
8
•
Creation of new National Agencies to facilitate partnerships and promote
investments such as:
• The Investment Promotion Agency
• A council to follow up economic partnership agreements
•
The National Agency for standards and quality
•
Pilot One-stop-shops which simplify the procedure for the creation of business
•
A Special committee which works to reduce the cost and duration of transit of
goods at the ports
•
Creation of a court dispute settlement mechanism to facilitate the solution of
investment disputes at (GICAM)
9
AT THE REGULATORY LEVEL
•
Liberalisation of the economy
•
Streamlining of administrative procedures
•
New regulatory instruments to govern investments:
• A new Investment Charter
• Streamlined Customs Procedures.
• New Taxation Code
• An Investment Code and an Industrial free zone which grants fiscal incentives
to investors
• Pulic Private Partnership legislation which offers various forms of investments
such; BOT, BOOT, BTTP etc…
• A flexible labour code that allows the hiring and firing of workers without
excessive state intervention.
• Ratification of major investment treaties such as; MIGA, ICC, CIRCD etc…
•
MAJOR ASSETS OF THE ECONOMY INCLUDE:
• A stable currency;
• A well educated and bilingual work force;
• Dynamic business entrepreneurs available for profitable partnerships with
foreign investors
• Dynamic microeconmic and macroeconomic policies delivering a growth rate
of about 4.6 % G.D.P. In 2013
• Peace and political stability which guarantees the protection of both national
and foreign investments.
• Major investments being carried out in the energy sector to boost industrial
activity by providing enough energy to sustain development.
• Availability of ICT companies providing internet services, networking solutions,
video confrerencing, mobile phone services, etc…
• Availability of the optical fiber network to interconnect businesses locally and
internationally in the main cities.
11
MAJOR ENERGY PROJECTS
•The Nachtigal hydro-electric dam. (230-250 MW)
on the river Sanaga will permit the country’s
aluminium producer ALCAN to subtantially
increase present production levels. (589 million
USD)
•The Memvé’élé dam: on the river Ntem will
provide 201 MW
•The Colomines dam: (6 MW) on the river Kaddéy
(6 million USD)
•The Chollet dam: (400 à 500 MW) on the river
Dja on the Cameroon -Congo border
• Rural solar/photovoltaic energy development
programs (USD 20 million)
12
RENEWABLE ENERGY INSIGHT
• Renewable Energy Policy
A renewable energy policy is being prepared, with policy goals to increase
the share of renewables in power and heat generation, and to involve
private capital in the delivery of energy.
The government’s policy seeks to get the country out of under
development, through the implementation of the long term Energy Sector
Development Plan (PDSE 2030) and the Poverty Reduction Strategy
Paper (PRSP). Development of the energy sector is seen as a factor for
attracting investment and strengthening growth.
Rural electrification master plan supports rural access to electricity. It
targets electrification in 660 localities through the extension of the
interconnected grids, the rehabilitation and construction of isolated diesel
power plants and mini hydro plants as well as the development of a
regional grid.
13
Renewable energy potential
Solar energy
Cameroon has good potential for solar energy exploitation. In the most
suitable parts, the average solar irradiance is estimated at 5.8 kWh/day/ m2,
while the rest of the country commonly sees 4.9kWh/day/ m2. Solar power is
currently used in distributed generation systems, particularly for powering the
cellular telecommunications network. However, only approximately 50 PV
installations currently exist.
• Wind energy
Most of the country has insufficient wind speed for power production with an
average of 2-4 m/s at the height of 100 meter. Wind energy potential exists in
the north of Cameroon and the littoral region. Northern areas have average
wind speed of 5-7m/s.
14
• Biomass energy
Cameroon has third largest biomass potential in sub Saharan Africa, with 25
million hectares of forest covering three quarters of its territory. However, the
unsustainable use of this resource has led to significant deforestation
throughout the country, with an annual clearance rate of 200,000 hectares/yr.
and regeneration of only 3,000 hectares/yr. Primary uses for biomass in the
country includes heating and light for the majority of the rural population.
• Geothermal energy
Potential is unknown but hot springs are found in extensive areas: Ngaoundéré
region, Mt Cameroon region and Manengoumba area with Lake Moundou.
• Hydropower
Cameroon has the second largest hydroelectric potential in subSaharan Africa.
Total potential is estimated at 23 GW, with a production potential of 103 TWh
per year. There are three main facilities in the country: EDEA (263 MW);
Songloulou (388 MW) and Lagdo (72 MW). The potential for small Hydro Power
installations (up to 1 MW) is estimated at 1.115 TWh, mainly in the eastern and
western regions of Cameroon, however this potential is yet to be properly
exploited.
15
Actual situation in energy and rural energy - 1
Cameroon is developing the PDER (Rural Electrification Development
Programme) is being considered by the Ministry of Environment
(MINEE) with the economic aid of the World Bank
Rural electrification operations are conducted by the MINEE and the
Rural Electrification Agency (AER), with funding from local banks or
certain bilateral or multilateral Donor Funds. The projects are usually
extensions of existing MT and BT networks that are part of the grid of
AES Sonel, but also from decentralized small hydro or thermal
generation projects.
It’s worth mentioning some projects initiated by some private,
particularly in the solar (Maroua, Far North Cameroon and Sangmélima
in the South) and wind (in Bamboutos Mountains in western
Cameroon)
16
Actual situation in energy and rural energy - 2
Both systems Build-Operate-Maintain and Build-Operate-Transfer technology
are planned in the Law on Private Public Partnership in Cameroon, and they
will apply to the energy sector. In general, the BOT system is commonly most
preferred.
To operate in Cameroon, you must obtain a concession or license which is
granted by the MINEE or get released, especially for rural electrification, by
the Agency for the Regulation of Electricity (ARSEL).
Concerning hydropower, the National Plan must clearly classify the best
hydroelectric sites that are of interest to investors, it is true that many sites
are now awarded for study and development to some promoters in the
context of Agreement (MoU) signed with MINEE.
But other sites exist and are still free.
17
What General Incentives are
offered to the Investors?
18
Investment Incentives - 1
Some of the main incentives available to investors include:
•Exemptions from capital gain tax
•Exemptions from duty from transferred properties
•A 50% reduction in corporate tax, on tax on profits, and proportional tax on
income from securities
•A 5% customs duty levy on industrial equipment imported within the
framework of the investment project
19
Investment Incentives - 2
A particular fiscal regime enacted by the 2007 finance law in favour of
both large enterprises and SMEs investing a minimum of USD 1MM
and USD 12MM respectively who invest in the following sectors;
Agricultural, Industrial, Energy, Tourism, Social Housing, Educational
establishments, and Health Sectors.
•Exemption from the payment of the business licence during the first
two years of existence.
•A fixed rate of registration of USD 100.
•Exemption from payment of VAT on construction material and
imports meant for the launching of the project.
20
Investment Incentives - 3
Specific incentives offered to SMEs and strategic industries
by the investment code include:
•Deductions in taxable revenue equivalent to 25% of total salaries paid to
staff of Cameroonian nationality.
•Exemptions from Registration duties.
•Further Fiscal reductions under the general tax code.
21
Investment Incentives - 4
Incentives under the Free Trade Zone Regime:
•Total tax exemption over a period of 10 years.
•Payment of a global tax on profits of 15% from the 11th year.
•Exemptions from licenses, authorizations and quota restrictions on imports
and exports.
•The right to open local accounts in foreign currency.
22
Investment Incentives - 5
PUBLIC PRIVATE PARTNERSHIP (PPPs)
• Generous incentives are offered to local and foreign firms that undertake
business in one of the following sectors:
• Designing of structures or equipment for public service purposes;
• Financing;
• Construction
• Transformation of structures or equipment
• Servicing or maintenance;
• Operation or management – energy sector
23
How to start a business in Cameroon?
24
One-Stop Shop facility
Cameroon has a One-Stop Shop facility for business creation within which you
can start a business in 3 business days.
Various business types which are governed by the OHADA (Organisation for
the Harmonization of Business Law in Africa) treaty applicable in 16 countries
within the Economic Community of Central African States which include :
• Corporations
• Limited Liability Company
• General Partnership
• Limited Partnership
• Joint Ventures
• Commercial Invest Groupings
25
TAXATION
•
•
•
•
Fiscal year runs from January 1st to December 31st in Line with OHADA provisions
Ministry of Finance is in charge of the application of Goverment’s taxation policies
Parliament votes finance bill annually and bill is promulgated by the head of State.
Bill can be modified in the course of the year by Ordinance.
Various Taxes paid by individuals and companies include;
–
–
–
–
–
–
PROPORTIONAL TAX ON INDUSTRIAL AND COMMERCIAL PROFITS (BIC)
PROPORTIONAL TAX ON WAGES AND SALARIES
PROPORTIONAL TAX ON MOVABLE CAPITAL EARNINGS (TPRCM)
SOCIAL SECURITY
CONTRIBUTION FOR OCCUPATIONAL ACCIDENTS
COMPANY TAX (38.5 PER CENT)
Tax Return forms must be filled by all companies 3 months after the end of year,
certified & submitted to the nearest tax office.
IMPORT
The Common External Tariff
Groups goods imported into Cameroon into 4 categories levied from 5 to 30 %.
Thank you for your kind
attention
28
Descargar

Slide 1