Indian investors have answered the call for investment opportunities in Cameroon and Africa. This appeal was reflected in an economic mission to Cameroon. Actors in the economies of both countries in Yaounde on September 21, 2024 to discuss the future and the new direction of cooperation between the two countries. A future in which India could further infiltrate the African market from Cameroon.
Diane Acha Morfaw, Chairman of the Board of Directors (PCA) of the Investment Promotion Agency (IPA), extolled the virtues of Cameroon as a destination for Indian investment. She underlined the strategic position that Paul Biya’s country occupies on the African market:Diane Acha Morfaw, Chairman of the Board of Directors (PCA) of the Investment Promotion Agency (API), extolled the virtues of Cameroon as a destination for Indian investment. She underlined the strategic position that Paul Biya’s country occupies on the African market:
Cameroon is a high-risk country. You have to come with a lot of money and a lot of patience When you take an interest in the Cameroonian market, you also embrace the Central African market, the Southern African market… We will do great things by working together. The partnership you establish with Cameroon will be fruitful. Just be patient,
said Diane Acha Morfaw.Incentives to attract investors
Since 2013, the State has made the promotion of private investment its hobbyhorse. To this end, it has undertaken to attract investment through incentives put in place in the 2013 law laying down incentives for private investment in Cameroon. These incentives are fiscal, customs and administrative (granting specific visas to investors to avoid administrative bottlenecks).
During the operating phase, which may not exceed 10 years, in consideration of the size of the investment and the economic benefits expected from it, the investor may benefit, as appropriate, from exemptions or reductions in the payment of taxes, duties and other charges as follows: minimum collection of corporate income tax, taxes on profits, states the 2013 law governing private investment in Cameroon.Gathered around the Confederation of Indian Industries (CII), which brings together nearly 900,000 companies, Indian investors aim to capitalize on these incentives to strengthen their presence on the continent.
We understand that there are many investment opportunities and we are ready to embrace them to grow the partnership. We’re delighted that Cameroon has shown an interest. If we work together, we’ll do great things,
says Ajay Jain, head of the Indian delegation.A partner to speed up import-substitution
These investments concern several sectors: energy, health, technology, education, infrastructure, etc. Cameroon’s ambitions for emergence by 2035 are clearly stated. One of the sectors identified as being key to this emergence is import-substitution. In its National Development Strategy 2030 (SND30), Cameroon aims to reduce the importation of by-products by 50% in 11 key sectors (aquaculture, timber, dairy cattle, cocoa, coffee, cotton-textile-finishing, cassava, oil palm, onion, tomato and organic fertilizer production). India, now a major player in the global economy, is positioning itself as a partner of choice for the development of these priority sectors.
One of the big problems we have to solve in import-substitution is the market. We have to be able to sell before we can produce. India is one of the leading countries in the pharmaceutical industry, so they can easily sell our by-products. We also think they can come with equipment. In other words, they won’t just sell you the equipment, they’ll set up shop here,
said Simon François Yonga Bakalag, coordinator of the CRFC. The two countries’ interest in forging relations is not new. At the 19th CII Conclave on India-Africa Partnership in New Delhi in August 2024, Cameroon led a prospecting mission to this country, whose GDP is valued at US$3,730 billion, according to the International Monetary Fund (IMF).
Despite a 41.9% drop in export earnings to India, from 493 billion FCFA in 2022 to 286 billion FCFA in 2023, this country of 1.417 billion inhabitants (2022) is Cameroon’s third-largest trading partner. According to the Institut National de la Statistique (INS), India will hold 11.6% of Cameroon’s import market share in 2023, occupying 2nd place behind China. Diesel fuel (33.1%), semi-milled or wholly milled, polished or glazed rice (18.6%), aviation gasoline (9.3%), medicines (6.1%) and frozen fish (2.8%) are the main products imported from India.
