Guidance

Doing business in Cameroon: Cameroon trade and export guide

Updated 18 March 2021

Introduction

Cameroon is the largest and most diversified market in Central Africa. Located in the Gulf of Guinea, Cameroon is a strategic link between markets in West and Central Africa. English and French are the official languages of the country. It is a unique hub for trade with Africa.

Why UK businesses should export to Cameroon

Most resilient economy in Central Africa

Largest economy in the Economic and Monetary Union of Central African (World Bank, 2019). It has a rich subsoil and a highly diversified commodity export profile featuring cocoa, coffee, banana and cotton, and an increasing drive to promote local transformation through manufacturing. Macroeconomic environment has remained stable, driving regional growth.

Educated workforce, ambitious growth agenda

Cameroon ranks among African countries with the highest secondary completion rates and a growing level of tertiary education enrolment. Government commitment to growth and development agenda is perceptibly strong with a politically backed vision to emerge as an industrial economy by 2035.

Strong ties to the UK and Commonwealth

Striking similarities to UK education and common law systems inherited from a history of British Trusteeship over part of the territory of Cameroon. A good segment of the business elite understands English. Cameroon is a member of the Commonwealth of Nations since 1995.

Statistics

Ease of doing business: 166th out of 190 countries (World Bank 2019)

Currency: Central African CFA Franc

Business languages: English and French

GDP per capita: $1,560 IMF, UK is $42,558

Economic growth: 4.1% (IMF, 2018)

Time zone: GMT +1

High potential industries for UK businesses

There are over a dozen UK businesses established and operating in Cameroon.

The country is:

• Guinness’ second largest market in Africa
• one of Prudential’s most recent bases on the continent
• a hub for reputed names like Standard Chartered and Ernst and Young

Cameroon offers plenty of opportunities in diverse sectors.

Energy sector

Energy sufficiency is core to Cameroon’s economic emergence agenda. Current installed capacity is far below domestic demand. Cameroon has the second largest hydro potential in Africa. Beyond new dam projects, the government seeks other sources of renewable energy to diversify its production of electricity.

Priority sector for government

The Government of Cameroon is trying to close the energy deficit to boost industrial activity, promote social development and alleviate poverty. Two major dams have been constructed in the last decade and a couple more are planned with multi-stakeholder support. The sector has undergone reforms to structure stakeholder involvement along production, transport and distribution chain.

Strong existing UK interest

A good number of UK companies are involved in the sector both in production and distribution activities. There is scope for more UK involvement to attract expertise and funding for activities in the sector. The British High Commission in Yaounde maintains strategic relations with stakeholders in the sector.

Infrastructure sector

The Government of Cameroon recognises access to quality infrastructure as a pillar for sustainable economic growth in Cameroon. Public investment in ports, rail, roads and telecommunications are on course to develop the infrastructure backbone needed to spur growth and enhance development.

Financing and skill gap

With very limited mobilisation capacity to meet strategic needs for the sector, Cameroon remains open to foreign partnerships to ensure critical investments and meet development targets.

Increased appetite for public private partnerships (PPPs)

There is growing interest in public sector for partnership agreements that tap into private sector potential to deliver projects. A specialised agency exists to help structure PPPs in priority sectors.

Mining sector

Cameroon is teeming with opportunities, most of which remain unharnessed to date. Mining activity is mostly artisanal but there is increasing government appeal for industrial scale partners. The country is home to some of the largest global deposits of Cobalt and Nickel and endowed with swathes of gold and bauxite.

Mining code

Cameroon has one of the most comprehensive mining codes in the region. The government remains open to engage stakeholders on potential areas of reform.

Mineral diversity

Cameroon’s subsoil is endowed with a wide range of minerals of interest to different industrial and commercial stakeholders. The government announced 300 new prospective deposits in September 2021.

Agriculture sector

Agriculture accounts for the bulk of economic activity in Cameroon. Activities range from industrial scale plantation agriculture to artisanal subsistence farming. There are vast swathes of arable land, but limited mechanisation. Infrastructure remains an impediment to food sufficiency ambition.

Fruits and vegetables to the UK

A good portion of Cameroon’s banana ends up in the UK. Matching up to demand and maintaining adequate phyto-sanitary standards will tremendously boost export potential for fruits and vegetables in general.

Regional cocoa hub

Cameroon is the third largest producer of cocoa in Africa. Demand for expertise to develop the sector and step up export value is high.

Agritech and local transformation

Local transformation of agriculture produce is high on government’s agenda. This also includes increased local demand for tech-driven solutions to boost productivity.

Oil and gas sector

Cameroon is one of Africa’s oldest oil producers. Its geological diversity hosts significant reserves in oil and gas. The sector is strategic and tightly regulated. Oil and gas revenue constitutes a good portion of national income.

Downstream opportunities

Natural gas production for the domestic energy market is of growing interest to the Government of Cameroon. Interest in LNG projects is on the rise. Investment in gas to power projects is a fertile area for growth in coming years.

Domestic refining capacity

A fire incident at the lone national oil refinery in May 2019 has heightened the case for more local refining potential. Cameroon exports much of its heavy crude and imports lighter crude to refine and serve domestic market.

Tax and customs

The fiscal year runs from 1 January to 31 December. The tax system in Cameroon is governed by the General Tax Code, which is amended and supplement through annual Finance Laws. The Code is administered by the Ministry of Finance through the Direction General des Impôts.

Customs regulations are set through the sub-regional market body CEMAC. There is no double-taxation agreement between Cameroon and the UK.

VAT

The value added tax (VAT) rate is 19.25%. The rate includes an additional council tax. The tax is levied on both individuals and organisations. Exemption from VAT is granted by law in certain specified circumstances.

Corporate tax

The corporate income tax rate is 38.5% inclusive of an incremental 10% additional council tax. A minimum tax level is set based on an assessment of the turnover.

Import duties

Common external tariffs are applied in line with sub-regional regulations agreed by member countries of the Central Africa Economic and Monetary Union Community.

Regulations

Fiscal regulations are fixed through the Finance Law while the Customs rules are determined at the sub-regional level, Cameroon being member of the 6-country economic and monetary region CEMAC.

Protecting your business

Cameroon has been described as ‘Africa in miniature’ and as a ‘land of opportunities’. It is worth exploring. It takes tact and endurance to succeed. You need to be aware of the challenges and seek legal counsel where necessary. See our list of recommended lawyers here.

Setting up a business

English and French are official languages in Cameroon. However, you may need a French translator in most circumstances. Business is governed by the OHADA Treaty (see unofficial translation) which came into force on 1st January 1998. A foreign company may do business through a branch or as an entity incorporated under local laws.

Intellectual property

As a first step, we advise you to speak to an intellectual property lawyer if you think you need patent protection when exporting. It is highly recommended to apply for trademark and patent protection before entering into business in the country. The Organisation for the Protection of Intellectual Property Rights (OAPI) has its headquarters in Yaounde, Cameroon and covers 17 francophone African countries.

Payment terms

Cameroon is primarily a cash based economy. Most commercial transactions are based on cash payment, bank deposits and bank transfers. Electronic payments are still unpopular. Bank coverage is quite low.

The Central Bank has mandate over 6 countries of the CEMAC region and issues the Central African Franc CFA (XAF) which is pegged on a fixed parity to the euro. Foreign currency payments are closely monitored and regulated by the Central Bank. A small oligopoly of commercial banks dominate the financial services sector.

Investment incentives

The Investment Promotion Agency administers a special regime of incentives designed to attract and spur new investments in the economy. Benefits range from exonerations from taxes and duties to consideration for extradition of profits. Many other investment incentives are enshrined in the Investment Charter promulgated in 2002.

Political context

Unrest in the predominantly English-speaking northwest and southwest regions has had a negative effect on the economy since 2016. A Grand National Dialogue was held in October to seek solutions to the armed conflict.

Most of the French-speaking part of the country has remained relatively stable, although there are problems of insecurity in several other areas, notably the North and Extreme North, where Boko Haram and other extremist organisations occasionally carry out terrorist attacks.

President Paul Biya was re-elected for another 7-year term in October 2018. He has been in power since 1982. Legislative and Municipal elections are expected to take place in 2020. See our travel advice for Cameroon.

Travel advice

If you’re travelling to Cameroon for business, check the Foreign, Commonwealth and Development Office (FCDO) travel advice page beforehand.

Contacts

Contact the Department for Business and Trade (DBT) team in Cameroon for more information and advice on opportunities for doing business in Cameroon.