Respect the Law

The National Assembly voted and the President of the Republic promulgated into law. Cameroon, a country in dire need of private investment now has a legal framework to boost incentives and bring in more investors into the production chain. The law of April 18 therefore opens up floodgate of hope for Cameroon, a country that could be referred to as emerging by 2035, to facilitate, promote and attract productive investment in order to develop activities geared towards strong, sustainable and shared economic growth as well as job creation.

The law on private investment incentives is not only timely, but readily responsive of the growing desire driven by the economic exigencies of the time. In effect, for any nation to attain a reasonable level of development, it must, as a matter of obligation, fully integrate the private sector in the mainstream of its activities. This, to say the least has been the missing link in Cameroon's development drive. This state of affairs is however surprising and even disturbing considering the amount of reforms government has undertaken to enhance activities in the sector. The investment code has been readjusted and made more attractive. The Cameroon Business Forum created to promote dialogue between the public and private sectors having as aim to improve the business climate in the country. Presidential decrees and Ministerial decisions have been signed exonerating companies involved in the production of some necessities from customs and excise duties.

Unfortunately all these efforts have ended on the rocks. Many foreign companies that come knocking at the doors of Cameroon for investment go and never come back. Some, and there are quite a good number of them, sign memorandums of understanding but never move a step ahead. Where then is the trouble; is the question on every lip. Some investors have complained of tight administration which they think does not facilitate issues for investors. Others out rightly complain of an excruciating taxation system. That notwithstanding, one important thing to note is that the foundation of Cameroon's growth and development does not seem to have been laid on private initiative. The evolution of things did not favour the culture of private investment.

The law on private investment incentives represents another major step at coercing private investors and letting them contribute significantly to the growth of the economy. But this can still produce undesirable results if those responsible for implement it fail to in their duty. This particular law challenges actors in the tax and customs departments who are expected to ensure that investors enjoy certain benefits during their establishment phase. Within their first five years of existence, they are expected to be exempted from stamp duty on capital increase, immovable property used exclusively for professional purposes, exemption from transfer taxes on the acquisition of immovable property, full deduction of technical assistance fees, exemption from Value Added Tax on the provision of some services and many other privileges. This law, as a matter of fact, should serve as a bible for members of the administration on the field who, for most of the time, have been accused of intentionally refusing to abide by the law for their selfish gains.

The promulgation of this particular law comes at the heels of the important moves the Head of State has taken of late including the last visit to Turkey to pull foreign investors into the country. It is another way of telling them, the obstacles have been cleared, you can now come.