 "INVESTMENT RACE"
Although it was carried out quite slowly at first, the privatization program, genuine cornerstone of the economy's reorganization process, is about to be finalized. This program has already attracted significant foreign direct investments in the transport or telecommunication sectors. The Suez Lyonnaise des Eaux Group was granted Cameroon's National Water Company (Snec) by tender, while AES (US) acquired the Cameroon's National Electricity Company (Sonel). A privatization strategy has already been adopted for SODECOTON (Cameroon's cotton company) as well as for CDC (Cameroon Development Corporation). However, the size and the complexity of the structure of this company with 13000 employees producing rubber, palm oil, banana and tea, will certainly result in a delay in its transfer to private interests. By guaranteeing an efficient and open governing system, the government is trying to build a safer and more attractive environment for investment. " We are in the process of working out a more liberal investment charter, in collaboration with the private sector, to render the business environment as attractive as possible ", states Mr. Bello Bouba Maigari, Minister of Industrial and Business Development.
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Taxes on non-forest export products were reduced from15% in 1994 to 0% in 2000, and non-tariff barriers were removed from all imports except oil products. A code of investments was developed to attract direct foreign investment to enable Cameroon to finance its development program. Furthermore, a National Office of Industrial Free Zones (ONZFI) was created in 1990." Cameroon's Free Zone Regime is one of the widest and most progressive in the world. This program has opened new economic areas and presents a great number of investment opportunities in the country ", explains Mr. Michael Tomdio, General manager of ONZFI. Indeed, the free zone regime offers the companies a total exemption from charges and fiscal duties, and a total tax exemption during the first ten years of business activity. |
