CAMEROON: ASSETS, POTENTIALS AND ECONOMIC PROSPECTS

1. CAMEROON: ASSETS, POTENTIALS AND ECONOMIC PROSPECTS Presented by : Emmanuel NGANOU DJOUMESSI Minister of The Economy, Planning and RegionalDevelopment LONDON, 7 may 2014

2. INVESTING IN CAMEROON, THIS IS THE MOMENT

3.  PRESENTATION OUTLINE 1. Briefpresentation et geographical situation of Cameroon 2. Cameroon’seconomicpotentials 3. Cameroon’sinvestmentassets 4. Investmentopportunities 5. Economic prospects

4. 1. Briefpresentation and geographical situation of Cameroon(1/2) Cameroon, the wholeAfrica in a single country issituated in the heart of the Gulf of Guinea; it has a surface area of 475,444 square kilometres • It isbounded in the West by Nigeria, in the North by Chad, in the East by the Central AfricanRepublic, in the South by Gabon, Equatorial Guinea and the Republic of Congo; • Cameroonis a market of about 22 million consumerswhichcouldbeextended to the 300 million consumers of the EconomicCommunity of Central African States, plus Nigeria; the youth (under 15) account for 43% of theseconsumerswhile 54% of them are people of workingage.

5. 1. Briefpresentation and geographical situation of Cameroon(2/2) • The country shares a maritime border with the Atlantic Ocean ; • Access to the sub-régional market including Nigeria, Democratic Republic of Congo or Sudan is guaranted.

6. 2. Cameroon’seconomicpotentials (1/3) Cameroonis « the wholeAfrica in a single country » • Agricultural potential is rich and diversified owing to the variety of climates and soils; • Agricultural production ranges from food crops to cash crops: banana, cotton, cocoa (4th world’s largest producer), coffee, tea, sugar cane, natural rubber, cereals, fruits and vegetables, tubers; • The country is particularly suitable for livestock production (northern parts and North-West region of the country); • Forestry, with one of the largest forest block in the Congo basin. Forests cover 40 per cent of the national territory;

7. 2. Cameroon’seconomicpotentials (2/3) Cameroonis « the wholeAfrica in a single country » • Fishing presents very bright prospects with the 360 km of maritime coasts, and the Bakassi peninsula which is renowned for its abundant fish stocks; • A variety of mineral resources yet untapped (iron ore: 550 million tonnes – 4th world’s largest reserve and 2nd in Africa; cobalt and nickel: about 52 million tonnes, etc.); • Oil is a Cameroon’s main mine product, natural gas exists with reserves of more than 116 billion m³; • Cameroon has the second largest hydroelectric potential in Africa (4256 GWH). Several energy projects are underway (LomPangar, Memve’ele, Mekin, Kribi) ; many one are under studies.

8. 2. Cameroon’seconomicpotentials (3/3) Cameroonis « the wholeAfrica in a single country » • A dense road network that stretches over the territory, representing 50,000 km including 4519 km tarred; the larring is continuing ; • Four seaports with two under construction (the first phase oh the Kribi Deep Sea Port is to be completed in June 2014); • Four international airports (Yaoundé, Douala, Garoua and Maroua) and régional second-class airports for domestic flights; • A dense telecommunication network comprising one landline operator and 3 mobile operators; • Various forms of tourism, including (i) beach tourism, (ii) photographic safaris, (iii) cultural tourism, (iv) mountain tourism, (v) ecotourism and (vi) business tourism;

9. 3. Cameroon’sinvestmentassets (1/6) Cameroonisendowedwithnumerousassets of diverse nature: Political Judicial Socio-cultural and Economic

10. 3. Cameroon’sinvestmentassets (2/6) Politically: • Cameroon enjoys political stability and social peace which reduce uncertainties and country-risk in the business environment; • A multiparty parliament comprising two houses (the Senate and the National Assembly) with 07 political parties represented in the National Assembly and 06 in the Senate. • As far as Judiciary is concerned: • An independent judicial system; • Legal and judicial security strengthened by its status of member State of the Treaty on the Harmonization of Business Law in Africa (OHADA); • Creation of commercial benches within the Courts of Appeal.

11. 3. Cameroon’sinvestmentassets (3/6) • Good governanceismonitored by specialized institutions (National Anti-Corruption Commission [CONAC], National Financial Investigation Agency [ANIF], National Governance Programme, Supreme State Audit, SpecialCriminal Court, Audit Bench, Anti-CorruptionUnitswithinministries) On the Socio-cultural field : • English and French are the two official languages. Many Cameroonians are also well-versed in Spanish, German and Chinese; • Religious tolerance with Christianity, Islam and traditional beliefs representing the main religions

12. 3. Cameroon’sinvestmentassets (4/6) In the field of Economy • The Cameroon Economy key indicators are combined in a brochure at your disposal ; • Macro-economic stability backed up by a 5.5 per cent GDP growth and controlled inflation around 3 per cent; • A growing middle-class within a working population of 54 per cent and an ever increasing per capita income (1392 USD); • A very positive indebtedness (public debt/GDP= 16 per cent); • Higher education comprises eight (08) State Universities and private universities which produce skilled and multidisciplinary manpower.

13. 3. Cameroon’sinvestmentassets (5/6) • A University Free Zone established in 2008 to bring universities and industries closer; • An attractive framework to secure a return on investments thanks to the enactment of two important laws: • The law of 18 April 2013 to lay down investment incentives (tax and customs incentives, financial and administrative incentives, specific incentives in the form of VAT exemptions) the Minister of Finance will elaborate on ; • The law of 16 December 2013 to regulate economic zones in Cameroon which seeks to promote investment, exports, competitiveness, employment and economic growth.

14. 3. Cameroon’sinvestmentassets (6/6) • Introduction of specificmeasuresnotably: • Establishment of Centres of Formalities for the Creation of Enterprises in the 10 regions of the country; • Streamlining of procedurespertaining to the creation of enterprises; • Streamlining of land concession procedures; • Establishment of receptioncountersatairports for investors; • Establishment or restructuring of specialcommitteeschargedwith monitoring investmentincentives and economiccompetitiveness issues.

15. 4. Investmentopportunities (1/2) • Cameroonoffersmanyopportunities : • Two public procurementmethods (public tenders, and public-privatepartnershipcontracts): • The PPP approachgivesanyinvestor the opportunity to engage in the design, funding, construction, maintenance and operation or management of engineering works or public amenities • Numerousprojects are eitherunderway or planned in severalsectors : • Roads: Yaounde-Douala highway; Edea-Kribi highway; Edea-Yoyo • road; etc.; • Railways, airports and ports: Douala-Limbe railway; Kribi-Lolabe • railway; Ngaoundéré-Douala railway; Mbalam-Lolabérailway; • Douala new airport, etc.

16. 4. Investmentopportunities (2/2) (The competentministerswilléelaborate on) • Energy: severalhydroelectricprojects (Song Dong; Mamfe; Kikot); • Bamboutoswind power plant; Kribi-Yaounde power line; pipeline to • transport petroleumproducts, etc.) • Mining (exploitation of bauxite, uranium, diamond, etc.) • Agro-industry, tourism and industrialprocessing • Water supplyschemes (supply of the main cities of Douala and • Yaoundewith potable water)

17. 5. Economic prospects (1/2) Cameroon’seconomic prospects are bright • Improved international credibility: Cameroon’s graduation to the IBRD lendingwindow of the World Bank Group; • Bright growth prospects: • Commissioning of the Kribi deepsea port, South of Cameroon; • Lifting of energyconstraints; • Positive outcomes are expected in the short termowing to the implementation of structural measurestaken in 2013 mainlywith the aim of improving the business environment and economiccompetitiveness.

18. 5. Economic prospects (2/2) Cameroon’seconomic prospects are bright • All efforts are madeto accelerate the improvement of the business climate, modernisation of the production base, access to and availability of production factors, access to funding and industrialisation; • The new dialogue frameworkswith the privatesectorwill help accelerate the implementation of measurespertaining to privateinvestmentincentives and move forwardwith the improvement of the business climate; • Creation of economic zonesin the short term in order to put in place more enticing conditions for foreign direct investments.

19. Thankyou for Your • Kind attention • YOU ARE WELCOME TO CAMEROON • THIS IS THE MOMENT TO INVEST IN CAMEROON