Cameroon: open for business; Now boasting the most diversified economy in the region, Cameroon has achieved rapid expansion and industrialisation. Political stability and an excellent business environment have also helped create an attractive investment destination. The country is now open for business.

The Economic and Monetary Community of Central Africa (CEMAC) comprises six countries with common borders (Central African Republic, Chad, Cameroon, Congo, Equatorial Guinea and Gabon). Only one country, CAR, is not yet an oil producer.

Forty per cent of the goods produced by the six CEMAC states are from Cameroon. The figure rises to 58% if oil production is excluded. Half of CEMAC's population lives in Cameroon and more than 40% of the money in circulation in the six countries is in Cameroon. The port of Douala, Cameroon's commercial capital, serves as the principal gateway for Chad and the Central African Republic (CAR). It is being expanded to increase its capacity and competitiveness.

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Cameroon's vibrant economy was the main contributor to CEMAC's economic growth in 2005 and 2006. Cameroon is also a member of the Commission of the Gulf of Guinea, an association that includes Angola, Congo, Gabon, Equatorial Guinea, Nigeria, DRCongo and Sao Tome e Principe.

The construction of an oil pipeline from Doba (Chad) to Kribi (Cameroon), and its possible extension towards Niger, CAR, Sudan and Libya, reinforces the geo-strategic importance of this zone. The global oil price has been rising for the last two years and the Middle East, with the greatest oil reserves in the world, is at the centre of major conflicts.

The Gulf of Guinea oil reserves represent a viable alternative for the US to source its energy supplies. Consequently, the US attaches a great importance to Cameroon in its strategy to secure a quarter of its oil needs from this region within a decade.

Cameroon enjoys great assets which are the envy of many countries. It is a gateway to the hinterland and a haven of peace in a part of the continent undermined by various conflicts. It is the only bilingual country of the region and a member of both the Commonwealth and the Francophonie.

National laws are constantly reinforced in Cameroon, including investment law. A new penal code which is about to be implemented will add even more strength to the national laws.

Global observers admire the professionalism of the Cameroonian Army and the dedication and discipline of its troops that help maintain peace in many areas of the world. All these factors make Cameroon a major force in the fight against insecurity in the region.

Under the auspices of the African Union, Cameroon has also been involved with other countries in the establishment of a regional military force. This initiative has been backed by the USA.

Between May 2004 and August 2005, there were visits by military dignitaries as well as military operations in the territorial waters of Cameroon to encourage and improve the co-operation between the countries of the Gulf of Guinea.

The agreement reached by Cameroon and Nigeria, resolving the sovereignty dispute over the Bakassi peninsula, offers new prospects and opportunities. The government has embarked on a major three-year development programme which covers micro-financed projects and improvements to the general infrastructure. The exploitation of natural resources will hugely enhance the ambitious development programme initiated by President Paul Biya himself.

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EXPANSION AND INDUSTRIALISATION 

Now boasting the most diversified economy in the region, Cameroon has achieved rapid expansion and industrialisation. Political stability and an excellent business environment have also helped create an attractive investment destination. Recent privatisation programmes, for example, present numerous opportunities for foreign investors.

A number of new agricultural and industrial projects throughout the country are seeking investment partners who will benefit from the many incentives on offer.

Cameroon's diverse agricultural sector includes millet, sorghum, corn, coffee, cocoa, sugar cane, banana, rubber, palm tree oil, pineapples, tropical woods and other food crops. It has a flourishing fish-farming industry and is rich in minerals including bauxite, nickel, uranium, gold, oil, natural gas, chalk, iron, copper and cobalt.

IMPROVED FINANCES

The short term prospects of the country are bright, with the reduction of the country's international debt radically improving its financial rating. Cameroon's economic indicators in 2005 were characterised by sustained growth, a total net budgetary surplus and a stable monetary situation.

Under the leadership of Prime Minister Ephraim Inoni, the government is committed to a rigorous management of public finance and is endorsing policies to sustain a healthy social and economic growth.

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The banking sector has been overhauled and reorganised and is now much stronger. The overall improvement in the quality of the banking sector and the disengagement of the state, has been particularly welcomed by the international financial community.

Efforts to promote more transparency, good governance and modernise the economy are progressing successfully. The government now publishes budgetary, expenditure and revenue data on the internet as well as making publicly available data on the country's oil industry. Furthermore, the legal and judicial systems are being reformed to secure the confidence of foreign investors.

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BETTER GOVERNANCE

The fight against money laundering is actively being undertaken by the National Agency of Financial Investigation. The government has taken decisive measures aimed at eliminating corruption by creating the National Anti-Corruption Commission.

Cameroon is the main beneficiary of a [euro]5bn grant which the European Union is to disburse for the construction of new roads to improve transport in the Central African region.

These are just some of the indicators that confirm that the governments' strategy to improve the country's business environment to attract foreign investors and create employment is now bearing fruit. Cameroon's strategic location between Nigeria, Chad, CAR, Congo, Gabon and Equatorial Guinea means that the country can serve as the crossroads for the whole of Central Africa and provide a vital link with its landlocked neighbours.

It is a country rich in art and culture, with quality housing and workspace at affordable prices, excellent schools and great business opportunities.

CAMEROON AT A GLANCE

* Government: Republic, multiparty presidential regime

* Head of State: President Paul Biya (since 1982)

* Prime Minister: Ephraim Inoni (since 2004)

* Administration: 10 provinces

* Political capital: Yaounde

* Commercial capital: Douala

* Population: 16.3m

* Major towns: Nkongsamba, Maroua, Garoua, Bafoussam, Bamenda

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* Population growth: 2.04%

* Literacy (over 15 years): 79%

* Religion: Animist, Christian, Muslim

* Official languages: English, French

* There is a strong national identity.

* The population is made up of more than 250 ethnic groups.

* There is freedom of the press.

* Religious freedom has allowed the proliferation of multiple faiths.

* A strong political opposition is represented by numerous political parties.

CAMEROON'S ECONOMIC INDICATORS

                                      2004      2005

GDP at market prices ($m)             14,268    15,049
Real GDP growth (%)                        3.5       3.7
Oil production ('000b/d)                  89        82
Consumer price inflation (average %)       0.3       1.6
Exports (fob) ($m)                     2,696     3,183
Imports (fob) ($m)                     2,451     2,484
Current account balance ($m)             238       133

ECONOMIC INTEGRATION

The Banque des Etats de L'Afrique Centrale (BEAC), headquartered in Cameroon, is responsible for issuing CFA francs for the CEMAC region.

Cameroon also plays a major role in the CEEAC (Communaute Economique des Etats d'Afrique Centrale) which joins together 11 states: Cameroon, Gabon, Equatorial Guinea, Chad, Congo, Burundi, Central African Republic DRCongo, Congo Brazaville, Sao Tome e Principe, Rwanda and Angola.

Cameroon's geographical position makes it pivotal to a market of 170 million people in the neighbouring countries of Nigeria, Chad, CAR, Congo, Gabon and Equatorial Guinea. These countries are first and foremost trading partners rather than competitors.

INVESTMENT OPPORTUNITIES

An economic lynchpin of Central Africa, Cameroon has real assets in its political stability, an abundance of natural resources and a well trained and educated young population.

Along with stability which safeguards investments, Cameroon is ideally placed to benefit from regional integration. President Biya believes strongly in utilising and maximising the region's economic assets by developing and protecting inward investment. With backing from the World Bank and the IMF, Cameroon is set to fulfil its ambitions.