In the following interview, Lu Fuqing, Chief Executive Officer, Cameroon First Automobile Manufacture CO., Ltd, explains what the project consists of, evaluates its state of advancement and what is left to take the much heralded project off the ground.
What does the Cameroon First Automobile Manufacture CO., Ltd project consist of?
It is working with the government of Cameroon to build a whole supply chain automobile industry in the country. Also, through the project, we will build technical schools through which our technology would be transferred to Cameroonians. For the start, the parts will be fabricated in China and the vehicles assembled in Cameroon. Gradually, we will guide Chinese auto-part manufacturing factories to also locate here in Cameroon to produce the parts on the spot.
In central Africa, Cameroon is a country with a stable political environment and a relative economic environment and the project seeks to grasp the opportunity of rapid economic growth of Cameroon and to jointly build Cameroon's First Automobile Factory with the government. The location will be in Kribi and the project will boost employment and accelerate economic growth. Our target market is first middle Africa and then West, South and East Africa in the future. Our studies show that over 90 per cent of automobiles in the country are imported second-hand, which means safety by driving cannot be guaranteed. Also, it causes air pollution and more fuel is consumed. We want to produce cars that are adaptable to the context and environment of the country.
What has been happening from the time you met the Head of State last year till date?
All along, we have been carrying out preparations for the project. We have been carrying out analysis and research. For example, what kind of product is better preferred in Cameroon and what kind of technical support should be made and also how much the selling price would be better for the population. Yaounde is a hilly city and so the break and clutch should be very strong. Douala and Kribi are near the sea and the air is full of sea contents. So, the painting must be special for long-term use.
Have you come up with a brand that will be produced in Cameroon?
A local brand of Cameroon (Star of Africa) will be used and the technology of "Brilliance Auto China" will be on the body of the product. We have already signed a Memorandum of Understanding with Brilliance and other different automobile industries in China.
How much is the project going to cost and who will finance it?
The first stage should not be less than 20 million US dollars (about FCFA 10.084 billion). The project is a joint venture and the Cameroon government will invest in it and for our company, we have cooperation and financial partners. Our company and our financial partners will invest for the project. The Chinese party will take 70 per cent of the project and the government of Cameroon will take 30 per cent including the investment.
When is the project effectively taking off?
We are waiting for an operation agreement with the government of Cameroon. The working speed is not satisfactory to us. During our last visit in mid April, we, alongside representatives of our technical partners, held a big meeting with different ministries and we are still waiting.
