Gov't adopt measures to boost private investment

Companies created in Cameroon appreciate the new decree of the Minister of Finance (Minfi), Alamine Ousmane Mey, created on 17th July 2014. This decree is now operational, relating to private investment that have been established and are now operational. These new provisions which are planned would reduce their expenses in tax and customs matters.

Consequently, existing companies who undertake to realize over a period of five years the new investments will benefit from a reduction of taxes on companies or commercial and industrial tax based on 50% of the amount of the investment, instead of 25%, as originally planned.

To help these companies to renew their production tool, the new text also provides an exemption from VAT on importation of equipment particularly, industrial equipment.

In addition, government will support approximately 40% of the overall cost of the investment in Cameroon, facilities that will be framed as the State wants to make sure that companies report their actual profits. And to do this, companies wishing to benefit from all these advantages will hold two separate accounts.

One relating to acquisitions, investments and charges related to the former activities. And the other in connection with the same operations, but this time, related to the new investment program.

It is to have more visibility on the accounts, avoid falling into the past and especially allowing that all these measures to have a real impact on the creation of wealth and jobs and consequently, on the country's trade balance.

These changes occur eight months after the Decree of November 19, 2013. This text from Minfi published a few months after the Act of April 18, 2013, setting incentives for private investment in Cameroon defined the terms of implementation of these incentives, stating, who is entitled to what.

Except that, at the time, already functional companies in Cameroonian territory, felt aggrieved in terms of advantages regarding the new businesses.

In order to meet the needs of this category of structures, discussions were held and resulted in new provisions to their advantage. It is in this context that the Decree of July 17 was published by Minfi.

It amends four articles of the Decree of November 2013, proof of the desire of the State to accompany these existing businesses, by providing more margins for maneuver.