INVESTMENTS IN AFRICA

Cameroon's Top 50 Young & Influential Leaders 2016

2016-01-12T13:33:00.001-08:00

Cameroon - National assembly passes bigger 2016 fiscal budget

2015-12-21T04:42:00.000-08:00

Cameroon’s government tabled a larger draft fiscal budget for 2016 on December 18. The draft bill will now be sent to the Senate for final approval. According to Reuters, the planned expenditure of 4,2 Trillion FCFA will be 13.5% larger than this year. Among the budget’s principal funding sources are oil revenues, non-oil tax revenues and project-related loans. Although the international oil price has slumped since mid-2014, Cameroon has managed to increase oil revenues somewhat during 2015 due to expanding hydrocarbons production. Moreover, the national budget will continue to be weighed down by the security threats posed by Boko Haram in the extreme north as Cameroon’s defense allocation is expected to increase by 20 Billion FCFA in 2016 to total 229.73 Billion FCFA.

In turn, public investment will be increased by more than 375 Billion FCFA, reaching 1,526 Trillion FCFA (36% of the total budget) in 2016. This spending will be focused on infrastructure and the development of stadia related to the African Cup of Women’s Football in 2016. Finally, the authorities slashed the operating budget by 178.7 Billion FCFA for next year, as an attempt to contain the fiscal deficit and make greater room for infrastructure projects.

WHY DO WE CARE? The budget announcement comes at a time where most economies in the Central African Economic Community (CEMAC) region are in a precarious position – balancing their respective governments’ fiscal position with national public investment plans. In fact, the Banque des Etats de l’Afrique (BEAC) expects regional economic growth in 2015 to come in at less than 3%. Nevertheless, the International Monetary Fund (IMF) recently lauded the resilience of the Cameroonian economy, but also urged that tighter future budgetary discipline will be necessary to maintain robust fiscal finances. We expect Cameroon’s fiscal deficit to grow from 5.1% this year to 5.6% in 2016 as capital-related imports increase and oil revenues remain under pressure due to structurally lower international oil price. We are also of the opinion that an expected recovery in the international oil price and robust non-oil sector growth will aid Cameroon's fiscal revenue growth over the medium term balancing out import growth so that the fiscal deficit starts to narrow from 2017 onward.

Analyst: Calumet Links

Cameroon in 10 months of transiting Chadian oil has been paid 29.5 Billion FCFA as transit fees

2015-12-14T01:11:00.002-08:00

Between January and October 2015, the volumes of Chadian oil which transited in Cameroon, through the pipeline linking the two countries, reached 38.5 million barrels, the Société Nationale des Hydrocarbures (SNH) announced at the end of a Board meeting organized on 1^st December 2015 held in Yaoundé.

These quantities of Chadian oil taken at the end of the Kromé pipeline in Kribi, in the Sud-Cameroon area, have fetched a transit fee of 29.5 Billion FCFA for the Cameroonian Treasury, an increase of 68.5% from the 17.5 Billion FCFA earned as at end October 2014.

The convention to transit Chadian oil through Cameroon was signed on 29 October 2013.

Tony Elumelu Entrepreneurship Programme 2016 calls for mentors

2015-12-08T01:19:00.002-08:00

The Tony Elumelu Entrepreneurship Programme (TEEP), a supporter of African-owned businesses, is looking for mentors for its inaugural startup programme.

The initiative is founded by Nigerian entrepreneur, investor, and philanthropic billionaire Tony O. Elumelu.

The Tony Elumelu Foundation launched TEEP in January 2015 and looks to identify and support the growth of 1 000 African-owned businesses annually. This will be achieved with a US$100-million philanthropic programme, which includes the a highly designed framework of training, mentoring, funding, and networking for these startups.

The 1 000 entrepreneurs — from 51 African countries — chosen for this year’s programme went through a 12-week online business training and mentoring course to develop their business ideas. In July, the group converged in Nigeria for an entrepreneurial bootcamp; afterwards receiving US$5 000 each in seed capital to start developing their ideas.

TEEP is now looking for more mentors, who will benefit from collaborative teaching and learning opportunities, as well as improving their own skills and making new contacts. Those interested will be selected based on their qualifications to join the existing pool of mentors. The foundation is especially looking for experienced business professionals, executives, and entrepreneurs with a desire to help others grow.

Those interested may apply through the TEEP website or click here.

Venture Burn

THE #US AMBASSADOR TO #CAMEROON VISITS THE KRIBI DEEP SEAPORT AND ANNOUNCES THE ARRIVAL OF AMERICAN COMPANIES

2015-12-03T03:49:00.001-08:00

The US Ambassador to Cameroon, Mr. Michael Hoza, visit the Kribi deep seaport yesterday and made some key announcements.

He said several US based firms are willing to work in Cameroon. They are;

1. Caterpillar

2. General Electric

3. COTCO

4. Exxon Mobil

5. Nobel Energy

The Ambassador stated that the Kribi Deep Seaport is a success that must be used as an opportunity to improve the Cameroon economy.

Transimex Cameroon Obtains a 1 Billion FCFA Credit Facility

2015-12-02T03:42:00.002-08:00

The African Guarantee and Economic Cooperation Fund (Fagace) has granted a direct funding to Transimex, which has been operating in Cameroon since 2011 in the stevedoring, consignment, warehousing, cargo handling, sea transport.

The loan agreement was signed during the 41st Board session of Fagace. These funds, according to the management of Transimex, will be used to finance the project for the construction of a headquarters building of 6 floors with partial rental space in Douala, Cameroon.

Fagace has sponsored 14 projects in Cameroon so far to the tune of 30 Billion FCFA

Cameroon - Fitch affirms risk rating at B

2015-11-30T01:17:00.001-08:00

Fitch released its latest sovereign risk rating review for Cameroon on Friday, November 27. The rating agency decided to maintain Cameroon’s rating at “B”, while at the same time keeping the outlook at stable. Fitch stated that Cameroon’s rating remains constrained by the country’s low income per capita and structural weaknesses, such as political and governance risks. In turn, the rating is supported by the stable macroeconomic environment and membership to the Central African Economic and Monetary Community (CEMAC).

Fitch also notes that the stable outlook reflects its assessment that while downside risks to the rating have increased, the upside and downside risks remain largely balanced. The main risk factors that could trigger a negative rating action are:

A greater slippage in the budget, which would accelerate public debt accumulation;
A widening current account deficit;
Political events triggered at the time of the succession of President Paul Biya or an intensification of terrorist activity in the north by Boko Haram; and
A slowdown of GDP growth.

On the positive side, the following occurrences could trigger positive rating action in the future:

A concerted effort by the authorities to improve the management of public finances;
Effective measures to improve the business climate and economic growth; and
An increase in hydrocarbons production related to new discoveries coming on-stream.

WHY DO WE CARE? The stable ratings outcome continues to be in line with our expectations – we also rate Cameroon at “B” with a stable outlook. Real GDP growth prospects remain favourable , with Fitch anticipating average economic growth of 5.5% p.a. over the 2015-17 period – our expectation is for real GDP to expand at 5.4% p.a. over the same period. What remains an area of great concern for both ourselves and Fitch is the authorities’ ability to effectively utilise investment funding in order to maximise the economic growth benefits thereof. The government’s past track record with respect to investment spending has not been stellar, with major infrastructure projects being delayed for months on end. Ultimately, it is of paramount importance that borrowed funds be utilised effectively, especially in light of Cameroon’s growing borrowing costs and large government arrears. These factors will continue to drag down the country’s sovereign credit rating.

Analyst: Calumet Links

#CAMEROON'S MINISTER OF TRANSPORT OFFERS PRESCRIPTIONS TO SOLVE CAMAIR-CO'S MANY PROBLEMS.

2015-11-27T03:03:00.001-08:00

Addressing Cameroon's Members of Parliament a couple of days ago, Cameroon's new minister of Transportation, Mr Alain Mebe laid down some solutions for the ailing airlines.

He said there will not be further injection of cash from the gov't of Cameroon to Camair-co till a complete audit has been done.

In this regard, Boeing Consulting has been retained to do a comprehensive audit of the airlines.

Camairco's debt outstanding stands today at 30 Billion FCFA ($60 Million). A restructuring plan is in place to make and an injection over 30 Billions FCFA.

Once the audit is done? The Minister said 6 planes will be procured to increased Camair-ca's competitiveness.

Cameroonian Wins Prestigious Anzisha Prize

2015-11-26T04:58:00.001-08:00

Mr. Fabrice Alomo Atangana, a 22 year old Cameroonian from Yaoundé has won the prestigious Anzisha Prize.

The Prize is given to the Best Young Entrepreneur of Africa. Mr. Atangana's efforts were compensated recently in South Africa for his platform "My A Connect". His platform facilitates and eases the usage of financial services for its users across the continent.

The platform presently serves 492 businesses and has over 8000 users.

Congratulations!

TOP INTERNATIONAL ENGINEERING COOPERATION WINS CONTRACT TO BUILD A STADIUM IN #CAMEROON.

2015-11-25T02:54:00.003-08:00

The Chinese construction company, Top International Engineering Cooperation (TIEC), who in June 2015 was awarded a 1 Billion FCFA contract to replace the roofs of the tanks at Société Nationale de Raffinage (SONARA), has been awarded a new contract for a total amount of 6.75 Billion FCFA (US $10 million), for the construction of a stadium for the African Cup of Nations.

In addition to this important contract won by TIEC, the Cameroonian government has also awarded other infrastructure contracts worth 11 Billion FCFA. Chinese Tianyuan Construction Group won a 3 Billion FCFA contract, while BUNS, a Cameroonian civil engineering company won a 8 Billion FCFA contract, to be undertaken over 8 months.

KELLOGG BROWN AND ROOT LEAVES #CAMEROON.

2015-11-24T02:02:00.003-08:00

Houston based Kellogg Brown and Root has expressed its intentions to close its operations in Cameroon. KBR is an American engineering, procurement and construction company, formerly a subsidiary of Halliburton.

The announcement was made after a Board of Directors meeting held recently in Douala.

Its assets in Cameroon shall be sold off. Ms. Therese Bikom Engoulou is in charge of the sell off.

Analysis: #CAMEROON ISSUES MAIDEN EUROBOND

2015-11-20T02:07:00.001-08:00

Cameroon has tapped international credit markets in the midst of an ongoing oil price slump, raising $750m with the issuance of a 10-year sovereign bond. Cameroon opted to lower the notional amount amid weak demand, having had approval to raise as much as $1.25bn. The sovereign bond printed at the wide end of the spectrum at 9.75%. Guidance indicated a range of 9.625% - 9.75%. The order book reached $1.2bn. Allocation was dominated by asset managers, who took up 78%, followed by banks & private banks (7%), and insurance & pension funds (5%). The UK accounted for 40% of the allocation, while the US took up 31% and Benelux & Scandinavia accounted for 19%. Earlier this month, West African oil giant Angola raised $1.5bn with the issuance of its maiden Eurobond (priced to par at 9.5%), having raked in more than $7bn in tenders. In October, The desert country of Namibia has tapped international credit markets for the first time since 2011 with the issuance of a 10-year $750m sovereign bond which priced at 5.375%, tighter than initial pricing guidelines suggested. The prospective issuance was marketed at 5.75%. Namibia’s investment-grade status stood the desert country in good stead as investors clamoured for high growth potential and credit protection offered.

Oil accounts for about 9% of Cameroon’s GDP, 50% of its export receipts and one quarter of its fiscal revenue and as such, the Central African country is less dependent on oil than Angola, Nigeria or Gabon. Nevertheless, our forecasts for oil prices to move to a structurally lower level in the next few years mean that Cameroon’s macroeconomic outlook over the short to medium term will be somewhat less favourable. Furthermore, authorities need to address the difficulties surrounding the general business environment and improve infrastructure if there is to be a sustained acceleration of economic growth. Although the significant decline in the international oil price since mid-2014 will slow economic expansion, we do not expect the decline in growth rates to be substantial. Our current forecast is for economic growth to slow slightly from 5.7% in 2014 to 5.2% in 2015, and remain robust at levels above 5% p.a. over the medium term. This growth will continue to be supported by buoyant growth prospects in construction, oil and gas production and services. Since domestic demand – supported by public investment – also forms a key driver for economic growth, the primary challenge for authorities will be to secure sufficient financing for its planned infrastructure outlays. As more of this financing is expected to occur on a non-concessional basis, the quality of spending will be of particular importance, especially due to the authorities’ poor track record with the efficiency of public spending.

Around half of Cameroon’s export revenue comes from hydrocarbon products; other principal exports include timber, aluminium, cocoa (Cameroon is Africa’s fourth largest producer of cocoa), coffee, rubber, cotton and bananas. The Banque des Estats de l’Afrique Centrale (BEAC), recently forecast that cocoa production is poised to slow down to around 210,000 tonnes this season, from 230,000 tonnes in 2014/15, owing to vegetal dormancy and poor expected weather conditions over the next year. Our forecast is for Cameroon’s current account deficit to remain roughly constant in 2015, thereafter widening, as a result of lower oil export proceeds and a strong increase in imports. These current account deficits will need to be financed from increased external debt, as foreign direct investment (FDI) is still at levels too low to sufficiently offset the current account deficit. Rising security risk in Cameroon – with Boko Haram active across the northern border and the conflict in the Central African Republic (CAR) encroaching on Cameroon’s territory from the east – has caused potential investors in these regions to shy away. Despite the successes of the multinational military intervention, raids into Cameroon still appear to be frequent, albeit with the aim to obtain vital resources and not to hold territory. These disruptive raids and suicide bombings under Boko Haram’s leadership will continue to hamper economic development in the north. Both foreign exchange reserves and import cover are expected to decline over the 2014-16 period.

Cameroon also enjoys a great deal of monetary stability due to membership to the Economic and Monetary Community of Central Africa (CEMAC) and the benefit of pooled foreign exchange reserves at the regional central bank. That said, the Central African franc zone consists of six countries, namely Cameroon, CAR, Chad, Republic of the Congo, Equatorial Guinea and Gabon, of which only CAR does not export oil. The Central African franc zone region’s macroeconomic outlook is substantially weaker now, when compared to last year’s projections. While the pooling of reserves remains a supportive factor, the strength is diminished by the fact that an overwhelming majority of economies in the Central African franc zone are vulnerable to the structurally lower international oil price. The currency peg with the euro means that the value of the CFA franc fluctuates in line with euro movements. The monetary policy divergence between the US Fed and the European Central Bank (ECB) is expected to become wider this year, premised on the assumptions that deflationary pressure from weak commodity prices and the low economic growth outlook in the euro zone over the medium term, may force the ECB to expand its stimulus programme. As such, improved euro liquidity along with the expected policy rate hike in the US at the end of 2015 or in early 2016 may sustain a dollar rally for the next few months and has therefore influenced our forecast for the trajectory of the CFAfr/$ exchange rate. In addition, unlike other African single commodity dependent exporters such as Angola and Nigeria who maintain fixed exchange rate arrangements to the dollar, the CFAfr/€ peg should be more resilient to the anticipated timid commodity price environment over the medium term. Moreover, due to close trade ties with the euro zone and a benign inflation environment, the probability of an adjustment in the peg over the medium term is seen as low. In line with our global assumptions, we anticipate that the franc will average CFAfr613/$ this year, from CFAfr494.4/$ in 2014, before depreciating to CFAfr618.8/$ in 2016.

Cameroon’s oil wealth and relative neglect of infrastructure spending enabled the country to run budget surpluses historically. However, the authorities started to focus on capital spending with the result that the country began to record fiscal deficits since 2009 and this has grown ever since. In September, the IMF expressed concern regarding Cameroon’s medium term fiscal outlook, citing the government’s high level of public investment expenditures. The Fund warned that lower oil revenues and security outlays will ultimately continue to place a drag on the country’s fiscal finances. The government will have to adopt debt policies that are more geared towards concessional borrowing if it seeks to maintain a manageable public debt stock. What remains a major concern is the fact that an additional debt issuance may not be a necessary growth accelerant if public spending on infrastructure investment remains highly inefficient. Furthermore, a growing share of public debt is also financed by local issuance, but the market is not deep enough to absorb the government’s fiscal demands in the short or medium term. This therefore threatens liquidity risk, execution risk and crowding out.

We expect government revenue to come in at CFAfr2.9trn this year, approximately 1.5% more than the amount of revenue collected last year. As for expenditure, we anticipate that government spending will amount to CFAfr3.8trn in 2015, up from an estimated CFAfr3.7trn in 2014 – up by CFAfr83bn from 2014. Overall, we expect the budget deficit to narrow slightly to 5.1% of GDP this year, from 5.2% of GDP in 2014, before widening over the medium term. Despite lower oil revenues in 2015, the fiscal deficit is expected to narrow slightly due to higher than expected tax receipts and one-time revenues generated from the sale of telephony licences. At the same time, public debt is expected to rise to 32.2% of GDP this year and further to 35.1% of GDP in 2016, from about 25.4% of GDP last year.

On October 29, the Minister of Finance announced the preliminary draft budget figures for the 2016 fiscal year. The authorities plan on spending CFAfr4.25trn during the coming financial year, which represents an increase of 13.4% from 2015. The draft budget placed particular emphasis on the government’s public investment drive under the Document de Stratégie pour la Croissance et L’Emploi (DSCE, Strategy Paper for Growth and Employment). The specific detail of the draft budget will be released upon the validation of the president, which is still pending. The budget announcement comes at a time where most economies in the CEMAC region are in a precarious position – balancing the government’s fiscal position with national public investment plans. With regard to the latter, the BEAC expects regional economic growth in 2015 to come in at less than 3%. Nevertheless, the IMF recently lauded the resilience of the Cameroonian economy, but urged that tighter future budgetary discipline will be necessary to maintain robust fiscal finances.

WHY DO WE CARE? The ongoing commodity price slump has laid sub-Saharan Africa (SSA) debt issuers’ single commodity dependence bare. With regard to the region’s fragile fiscal positions, the IMF cautioned in October that rising global risk aversion and a deterioration in SSA countries’ fundamentals may result in a “very expensive or totally unavailable” financing conundrum, which will force “highly pro-cyclical fiscal policy adjustment” as borrowing needs will not be met. In light of this risk event, the Fund urged that SSA countries focus on “preserving fiscal soundness” over the short term and prioritising the build-up of fiscal buffers over the next few years. Worryingly, front-loaded fiscal adjustment, on aggregate, continues to fall short of potential, and SSA sovereigns seek increasingly large amounts of credit from the international debt market. In this regard, Ghana, Zambia and Cameroon had little choice than to accept increased risk premiums on sovereign debt issuances as investors cited concerns about deteriorating fundamentals. High external borrowing increases the probability of debt restructuring in the event that stronger global headwinds bring about a balance of payments crisis. On the other hand, Namibia’s successful tap of international credit markets illustrated that debt investors continue to seek out high-quality African credit, especially in light of still-low (and distorted, due to extensive quantitative easing) yields in advanced economies. This should encourage other SSA countries to seek to reduce sovereign credit risk by addressing structural shortfalls and cyclical vulnerabilities.

CAMEROON: SOVEREIGN ISSUES MAIDEN EUROBOND

#Cameroon's ISP, #RINGO partners with #Spacecom

2015-11-19T00:43:00.000-08:00

#Spacecom has teamed up with one of Cameroon's Internet Service Provider (ISP) #Ringo to enable a large-scale cellular-satellite hybrid broadband Internet project using the Amos 5 satellite. Together, the companies are providing connectivity to more than 120 educational institutions, community centers, and rural villages.

Spacecom’s hybrid service uses satellite for downloading data while relying on cellular or other terrestrial data networks for Internet upload requests. Users send a request to the cloud via a GSM modem and all the information is accessed from the satellite with a high throughput downlink. According to Spacecom, the system installation is easy and largely the same irrespective of location.

A Startup in #Douala Offers Solutions to Clean the Streets of #Cameroon's Economic Capital

2015-11-18T03:11:00.000-08:00

The streets and marketplaces of Cameroon's economic capital Douala are strewn with fruit and vegetable debris of all sorts: banana peelings, corncobs, coffee grounds, mashed sugarcane... you name it.

But as they say, one man's garbage is another's treasure, and the unsightly rubbish has become the raw material for Kemit Ecology, a startup that has developed a process for transforming the waste into fuel.

Launched in July 2014,Kemmit Ecology, sweeps the scraps off the streets and uses them to produce "organic charcoal" briquettes for cooking.

"It's an ecological solution. Collecting the rubbish cleans up the streets even before it is turned into fuel," said the startup's manager Mueller Tenkeu Nandou.

And "from the environmental standpoint, organic charcoal emits very little greenhouse gas and practically no smoke," asserted Tenkeu, who earned a master's in ecology, biodiversity and environment from the University of Douala in 2013 and now researches renewable energy there.

Yannich and Joachim Noah, to Build 1000 Homes in #Yaounde.

2015-11-17T02:26:00.000-08:00

The former tennis player Yannick Noah, who is of Cameroon descent, has announced the launch of construction work for a real estate complex in Yaoundé comprising 900 to 1000 houses. Mr. Noah, who won the 1983 Roland Garros tournament, made the announcement himself after meeting gov't officials, including the Prime Minister Philemon Yang.

Situated in the Odza neighbourhood, the project will cost between 60-65 Billion FCFA to be bankrolled by Yannick and his son Joakim Noah, who plays basketball for the NBA.

#CAMEROON TO HOST THE LARGEST DELEGATION OF BUSINESS PERSONS FROM THE UNITED KINGDOM.

2015-11-16T02:02:00.000-08:00

The government of Cameroon will host a distinguished group of business leaders in Yaoundé for a high-level investment mission from 8-10 December 2015. The mission is being organised by DMA and provide a unique opportunity for investors and business leaders to deepen relationships in Cameroon. It will also allow them to secure new investments and witness first-hand the opportunities in one of Africa’s emerging markets.

Organised by DMA, and supported by FCO and UKTI, the trade mission will take a group of current and potential private sector investors in Cameroon to meet with Prime Minister Philémon Yang and his cabinet in order to build on the momentum gained from the highly successful UK-Cameroon Trade & Investment Forum (also hosted by DMA in London back in 2014).

The Prime Minister of Cameroon said, “We are a country with huge potential. Amongst other things we can offer a young and often bilingual workforce, huge areas of unexploited mineral wealth, potential for both onshore and offshore oil finds, ability to be the trading hub for the region with our ports and transport links and a growing tourism industry based upon our unique topography, culture and natural wonders.”

The meetings will highlight Cameroon’s economic outlook, key sectors for investments (infrastructure, industry and energy, agriculture, tourism, environment, education, security and technology), partnership opportunities, the supportive legal framework for FDI and the competitive workforce ability. In addition, DMA is arranging sector specific roundtables and 1-2-1 meetings to take place in the margins.

Cameroon is often referred to as Africa in Miniature due to its diverse climate, geology and economic activities. Its the main hub for FDI in central and West Africa. Recently, African Economic Outlook projected that the company’s growth would remain strong at 5.5 per cent, driven by a diversification policy, the tertiary sector and impending completion of large infrastructure projects such as the Lom Pangar hydropower dam and power plant.

Source: African Review

Shisong Cardiac Centre Offers Free Heart Surgery

2015-11-13T04:19:00.004-08:00

The Shisong Cardiac Centre Heart Foundation in Kumbo, Bui Division of the North West Region, have raised about FCFA 61 million to sponsor the treatment of children suffering from various heart diseases, but cannot afford the cost.

The Shisong Cardiac Centre Social Care Management Office is charged with investigating and deciding who benefits from the sponsorship, based on the urgency of the surgery and inability to pay the surgical fee.

#French Restaurant To Open 4 Stores In #Cameroon.

2015-11-10T23:25:00.001-08:00

“Brioche Dorée”, the restaurant chain owned by the French group Le Duff, has got into partnership with the CFAO Group to bring its restaurants in Cameroon in 2016.

As Brioche Dorée restaurants plans its African expansion, it plans on opening 4 restaurants in Cameroon. This African plan includes the opening of 30 restaurants in seven African countries (#Cameroon, #Nigeria, #Côte d’Ivoire, #Congo, #Ghana and #DRC) over the next 10 years.

“Brioche Dorée” has more than 1,300 restaurants worldwide and more than 125,000 sandwiches are sold daily. The brand was created in 1976 and operates in the following sectors: fast food, conventional catering, industrial-scale production of bread and pastries.

#CAMEROON'S AFRILAND FIRST BANK SECURES LENDING FACILITY FROM #USAID

2015-11-09T05:07:00.003-08:00

The US gov’t through its developmental vehicle #USAID and #Cameroon’s Afriland First Bank have entered into a Development Credit Authority agreement to enable lending to agriculture and construction projects through its affiliate in #Liberia.

The USAID was represented by its Liberia Mission Director, Dr. Anthony S. Chan and Afriland was represented by the Managing Director for its Liberia operations, Mr. Hamadou Bayo.

Kenyan coffee chain Java House targets Africa expansion

2015-11-06T22:25:00.001-08:00

“We can’t keep up with the growth of our customer base in Africa so we have enough to keep us busy,” he said.

Kevin Ashley, who founded Java’s first outlet in Nairobi in 1999, said the company would open in Kigali, Dar es Salaam, Lagos, Accra and Lusaka. For now, the firm’s only outlets beyond Kenya are in Uganda’s capital Kampala.

“We see in five years time we are going to be having a major presence in most of the major urban centers of Africa,” he told Reuters at his office over one of his Java outlets, which offer coffees, teas and a menu of international food.

His ambition reflects the confidence of many African and other firms about rising spending power on a continent that boasts several fast-growing economies, even if a commodity price slide has taken some of the shine off the “Africa Rising” theme.

#CAMEROON: WORK ON NACHTIGAL HYDRO-ELECTRIC FACILITY IS EXPECTED TO BEGIN IN 2016

2015-11-04T22:42:00.000-08:00

The Final Term Sheet between the Republic of Cameroon, Nachtigal Consortium, and ENEO Cameroon SA has been signed in Yaoundé.

It spells out the conditions of connection of the future power plant to the national grid, to be operated by SONATREL. However, the management of the reservoir dams and water on the Sanaga catchment area will be done by another entity than ENEO. This is in keeping with the December 14, 2011 law on the electricity sector.

The government of Cameroon through the Minister of Water Resources and Energy, Basile Atangana Kouna and the Electricity of France (EDF) represented by the Group's Senior Executive Vice President, Simone Rossi, have signed a purchase agreement with ENEO with its General Manager, Joel Nana Kontchou. The sales agreement allows the exclusive rights of ENEO to buy energy from the Nachtigal plant on the River Sanaga.

Cameroon Takes Bold Steps To Host 2016 and 2019 AFCON Competitions

2015-11-04T00:36:00.001-08:00

The government of Cameroon, via the Ministry of Public Contracts , has awarded Chinese firm Tanyuan Construction, a contract for the construction of the stands of the Limbe annex stadium in the South-West Region.

Valued at a total cost of 1.7 Billion FCFA, this project is to be completed in a maximum of eight months. Meanwhile, Italian firm Impressa Sartori, has been awarded a contract of 548 Million FCFA for providing equipment to the Limbé Omnisports Stadium.

The completion of this stadium will enable Cameroon to host the upcoming women and men African Football cup of Nations in 2016 and 2019.

Cameroon to Increase the number of Taxes in 2016 + SOCATUR Increases its Operational Capital

2015-11-03T00:17:00.000-08:00

The gov't of Cameroon will impose new taxes for the 2016 fiscal year. The new taxes will be aimed at cash transactions, electronic communications and the distribution of industrial gas. The electronic communications tax will aim at ISPs like YOUMEE, RINGO and CREOLINK.An announcement was made in this regard by the Minister of Finance, Mr. Alamine Ousman Mey.

Societe Camerounaise de Transport Urbain (#SOCATUR) held a shareholders meeting recently and voted to increase its operational capital by 220 Million FCFA. This brings the total operational capital to 720 Million FCFA.

Arik Air Increases Frequency Of Flights On Its #Lagos to #Douala Route.

2015-11-02T04:23:00.000-08:00

Arik Air, West and Central Africa’s largest airline, has increased the frequency on its Lagos to Douala via Cotonou route, from four to six weekly flights.

The new schedule is aimed at further enhancing connectivity. The flights from Lagos to Douala via Cotonou and back will operate on Mondays, Tuesdays, Thursdays, Fridays, Saturdays and Sundays.

Outbound flights from Lagos will depart at 11:15am, arrive Cotonou at 11:45am, depart Cotonou at 12:30pm and arrive Douala at 2:00pm. Inbound flights will depart Douala at 2:45pm, arrive Cotonou at 4:15pm, leave Cotonou at 5:00pm and arrive Lagos at 5:30pm.

The new schedule allows passengers to conveniently connect to these destinations with the advantage Arik Air’s extensive domestic and regional network provides. It also provides convenient connections to some of the airline’s international destinations such as New York.

#Cameroon - Robust Economic Growth Continued in 2014

2015-07-28T02:13:00.002-07:00

The Institut National de la Statistique du Cameroun released its final 2014 economic growth figures for Cameroon on June 22. Real GDP expanded by 2.8% q-o-q in Q4 2014, a slight improvement on the 0.9% q-o-q real GDP growth recorded in Q3 2014. The stronger Q4 growth came on the back of increased economic activity in the primary and secondary sectors which expanded by 1.7% q-o-q and 3.8% q-o-q, respectively. Tertiary sector growth remained at roughly 1.6% q-o-q for Q4. On an annual basis, the economic growth for 2014 came in at 5.7%, which is roughly equivalent to the 5.6% real GDP expansion during 2013.

The Q4 expansion in the primary sector stemmed mainly from strong performances in the industrial agriculture and forestry sectors. The top performing primary sub-sector , being industrial agriculture, saw q-o-q growth of 9.6%, owing to favourable cocoa and coffee harvests. Moreover, the exceptional Q4 growth in the secondary sector emanated from the construction industry (17.7% q-o-q for Q4, against 14.6% q-o-q for Q3). The favourable growth trend in the construction industry can by and large be attributed to a stellar performance in the cement industry and the implementation of major public infrastructure projects. Expansion in the tertiary sector, though not as robust, came on the back of the rebounding of the transport sector which grew at 2.7% q-o-q in Q4 after experiencing a 0.1% q-o-q contraction in Q3. Nevertheless, the Q4 growth figure was dragged down by a 0.9% q-o-q contraction in the telecommunications sector.

WHY DO WE CARE? Real GDP growth for Cameroon remained robust in 2014. The strong growth in both the agricultural and construction sectors have continued to underpin this growth trend. Our expectations for GDP growth in in 2015 have dampened somewhat since the significant decline in international oil prices and a forecast for structurally lower Brent crude prices in years to come. We expect the Brent crude oil price to average around $60.8/bbl this year, which represents a 38.6% decline when compared to 2014’s average price. In turn, we expect a rebound in international oil prices over the medium term, but average prices are not expected to reach the 2012-13 highs over the forecast period. Furthermore, declining fiscal revenues on account of lower oil exports – 25% of government revenues originate from hydrocarbons exports – could jeopardise government infrastructure investment to some extent.

Analyst: Calumet Links