In a context where global foreign investment increased by 10.9% in 2013, in particular in Europe (+25.2%) and in Latin America (+17.5%), FDI flows to developing economies reached a new high of US$759 billion. The African continent has posted an increase of 6.8% of FDI in 2013.
Cameroon receives little foreign direct investment (around 500 million USD in 2013), with net FDI flows representing a modest percentage of GDP. Mining, including oil extraction, remains the most targeted sector. France is the largest investor in the country.
The Cameroonian economy, which has the potential to become one of the most prosperous and best placed to receive foreign direct investment in Africa, is currently at the bottom of the table in terms of FDI attractiveness. The country indeed has many natural resources (oil, forestry, fisheries), as well as fertile land, on which to build, however, Cameroon has to improve and simplify its administration in order to boost entrepreneurship, and fight against corruption which has reached endemic proportions. The business climate in the country deteriorated in 2013.
Cameroon needs to attract foreign investors in order to finance its future projects of developing infrastructures and notably, the exploitation of gas. Large French companies are well-placed in these developing sectors. It is important to mention that Cameroon has attracted China's attention, since China has projects of investing in the African continent and notably in Cameroon.
Information on the 2013 FDI influx in this region can be accessed in the Global Investment Trade Monitor published in January 2014 by the United Nations Conference on Trade and Development (UNCTAD).
|Cameroon||Sub-Saharan Africa||United States||Germany|
|Index of Transaction Transparency*||6.0||5.0||7.0||5.0|
|Index of Manager’s Responsibility**||1.0||4.0||9.0||5.0|
|Index of Shareholders’ Power***||5.0||9.0||5.0|
|Index of Investor Protection****||4.3||4.5||8.3||5.0|
Source: Doing Business - Last Available Data.
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.
|Foreign Direct Investment||2011||2012||2013|
|FDI Inward Flow (million USD)||652||526||572|
|FDI Stock (million USD)||5,141||5,667||6,239|
|Performance Index*, Ranking on 181 Economies||135||-||-|
|Potential Index**, Ranking on 177 Economies||116||-||-|
|Number of Greenfield Investments***||9||3||10|
|FDI Inwards (in % of GFCF****)||11.9||9.2||9.4|
|FDI Stock (in % of GDP)||19.3||21.7||22.3|
Source: UNCTAD - Last Available Data.
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
Nevertheless, the candidate has to satisfy, according to the circumstances, the following conditions :
- to be registered either with the Registry of Commerce or with the Communal Repertory ;
- to have made a declaration of existence ;
- to possess a professional trader's card ;
- to dispose of property and material installations when they are necessary ;
- to respect other professional obligations, especially in tax matters ;
- to obtain a prior authorization (for foreign nationals)
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Last Updates: October 2014