Cameroon, a major regional link for France: with hundreds of companies, representing approximately 30% of foreign direct investment (FDI), France is the major foreign investor in Cameroon.

According to Georges Serre, France's ambassador to Yaounde, Cameroon represents a small share of foreign trade with France. It accounts for about 0.14% of French exports worth 563 million Euros in 2007. In investment terms, Cameroon is also small with 0.1% of French Foreign Direct Investment (FDI). It is, however, a major regional link for French companies and is seen as a stable economic destination in Africa.

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The story of Franco-Cameroonian trade shows that the presence of French companies in Cameroon is traditional and well-rooted. Even during times of crisis, the French companies have not left, thus allowing their presence to solidify the economic and political relations between the two countries.

Maintaining confidence in the potential of Cameroon is an effective strategy that has paid off in the long term for the French companies, which have benefitted greatly in the last 10 years from Cameroon's privatisation programme.

For example, in 1998 Somdiaa acquired the Cameroon Sugar Company (Camsuco). In 1999, the Bollore Group took over Regifercam which became Camrail; while in banking, the Bicic group of banks passed into French hands and became known as as BICEC (International Bank for Trade, Savings and Credit).

In telecoms, France's Cable Radio launched its Cameroon subsidiary SCM in 2000. The same year, Bollore joined together with Palmcam to create SOCAPALM.

Even now, French companies still have the wind in their sails. Over 80% of oil production in Cameroon is in the hands of Total and Perenco, the latter being the main distributor.

Cash crops and food are dominated by Vilgrain/Somdiaa--the only sugar producer in the country, which also owns the main mill SGMC. The Compagnie Fruitiere and the Union Fruitiere Africaine (two French entities) account for more than half of the banana production in Cameroon.

In the brewing industry, the French company Castel is at the top of the ranking via the Societe Anonyme des Brasseries du Cameroun.

Elsewhere, Bollore, directly or in association with the Belgian group Fabri, has interests in palm oil and rubber. France is also dominant in the wood industry with Rougier et Pasquet providing a strong French presence alongside the Italians, Chinese and Dutch. Sepbc, another French company, is a major exporter of timber logs.

In cement, Lafarge is dominant through CIMENCAM--the only foreign producer in the region. In civil engineering, France is present in the construction industry with companies such as Vinci and Bouygues which are among the top three in the sector. The third, Razel is a subsidiary of the German group, Bilfinger Berger.

In telecoms, although Orange arrived in Cameroon before any other operators, it has not kept its leadership. Today, it shares the mobile phone market with the South African company, MTN.

In automobiles, France is also well positioned with CFAO, the leader in auto distribution in the country which also ensures, with Ucpharm, 90% of the supply of medicines in Cameroon.

Transport and logistics are masterfully controlled by the Bollore group, especially the management of the container terminal at Douala, which is shared with Maersk and its forwarders SDV and Saga.

In air transport, Air France is currently the only company providing a daily service direct to Paris from Yaounde and Douala.

In banking, BICEC, Societe Generale de Banque au Cameroun (SGBC), and Credit Agricole (all subsidiaries of French banks) dominate the Cameroon market, with 55% of deposits.

Georges Serre recognises that French companies, although well established in Cameroon, face enormous difficulties. "The main handicap," he says, "is the business environment which remains difficult despite the efforts of the authorities to improve both taxation and the legal climate in which unfortunately there is corruption at many levels."

RELATED ARTICLE: Cameroon and France sign important agreements

The French prime minister, Francois Fillon, visited Cameroon in May, more than 20 years after Jacques Chirac, who was then the prime minister under Francois Mitterrand.

During his visit to Cameroon, the French prime minister, Francois Fillon, wanted to see for himself the progress made on the projects funded by his country, such as the Institute of Agricultural Research for Development at Nkolbisson in the western suburb of Yaounde.

He signed, on behalf of France, a defence agreement that replaced the one signed in February 1974. The agreement provides "French logistical support to the Cameroonian Armed Forces" in terms of equipment and technical assistance through training.

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Military cooperation between Cameroon and France goes back many years and has evolved within the overall framework of their bilateral relations. Its value amounts to [euro]713m for the period 2006-2011, according to the Framework Document signed by the two countries in June 2006 when Brigitte Girardin, the former French minister for cooperation, development and Francophonie, visited Yaounde.

In addition, Paris and Yaounde have signed an economic cooperation agreement which will boost the Contract of Debt Reduction and Development (CDRD) by [euro]537m over 5 years for the financing of economic projects and the fight against poverty in Cameroon. Over a period of 20 years, the CDRD will have a value of one billion Euros, as Cameroon has reached the completion point of the World Bank-sponsored Highly Indebted Poor Countries (HIPC) initiative.

Many observers see the CDRD -whose achievements are most visible in Douala and Yaounde in infrastructure and sanitation--as a particularly effective support for efforts to improve the lives of the people.

In addition, Prime Minister Fillon also reached an agreement on immigration which will provide [euro]2m over five years to finance development projects in Cameroon in collaboration with Cameroonians living in France who would like to be involved in the development of their country.

However, the agreement will toughen rules for obtaining French visas in Cameroon. Five other African countries have already signed such agreements with France: Congo, Tunisia, Gabon, Senegal and Benin.

Prime Minister Fillon was accompanied on his visit to Cameroon by Eric Besson, minister of immigration, integration, national identity and development; Jean-Marie Bockel, minister for defence and veterans; Herve Novelli, minister for trade, crafts, SMEs and tourism; and Alain Joyandet, minister for cooperation and Francophonie. Also in his delegation were parliamentarians, business leaders, and several businessmen.

RELATED ARTICLE: Economic relations

France and Cameroon are united by history and have an important economic relationship.

Because of the close relations between France and Cameroon going back to colonial times, France, the country of Prime Minister Francois Fillon, is by far the largest investor in Cameroon and the country's major donor. There are more than 200 French-owned companies operating in all sectors of Cameroon's economy.

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They include Vilgrain, Castel, Bollore, Total, Perenco, Schneider, Vatech, Cegelec, CFAO, Bull, Lafarge, CAD, Logistics, Air France, Orange, AXA, AGF, Gras Savoye, Vinci, Bouygues, Razel, SCET, and many more.

Despite this important French presence, Cameroon is only the third largest trading partner of France in the Franc Zone, after Cote d'Ivoire and Senegal. In 2007, Cameroon imported from France the following: pharmaceutical products (12.2%), motor vehicles (8.3%), computer equipment (4.5%), household goods (3.8%), and cereals and industrial crops (3.3%).

There is also a strong French financial presence in the country. French banks such as Societe Generale, Credit Lyonnais, Banques Populaires, and the Natexis BICEC Group are some of the major foreign banks operating in Cameroon.

With these hundreds of French companies in the country, France plays a huge role in the Cameroonian economy. From hydrocarbons to food, cement, wood, construction, telecoms, and logistics, the French presence is everywhere--to the mutual benefit of both countries.

The large number of SMEs founded as joint ventures by French and Cameroonian nationals testifies to the vitality of economic links between the two countries forged since 1960, the year of Cameroonian independence. Today, trade between France and Cameroon exceeds one billion Euros. According to the French embassy in Yaounde, France accounts for about 12% of all Cameroonian exports, including crude oil, aluminium, wood, bananas and rubber.

Cameroon provides France with about one per cent of its energy needs. French non-oil purchases from Cameroon remain stable at around 250m Euros and include aluminium and a limited number of primary sector products such as fruits, plants, coffee, and cocoa.

RELATED ARTICLE: France, a major investor in Cameroon

With French investment of 35m Euros in 2000, Cameroon remains a modest investment destination for France. But the chad oil project, with the construction of the Doba-Kribi pipeline, has enabled Cameroon to "drink a healthy dose of honey" from France--to the great delight of enterprises engaged in public works and transport. This has stimulated economic growth, amounting to about 5% in 2001 and 2002.

French investment in Cameroon represents about 35% of capital invested in the country and more than half of foreign investment. Embedded in the key sectors of the economy, it is a vehicle for development and employment -about 30,000 Cameroonians are employed by French companies operating in the country.

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French companies in Cameroon are particularly diverse, appearing in virtually all sectors--primary (agriculture and agro-food), energy, construction, and tertiary industries (banking, insurance, distribution, retail, transport and hotels). France is also involved in major infrastructure projects such as roads, water, electricity and telecoms; as well as providing funding for agriculture and industry.