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The Cameroonian government and the European Union delegation (EU) in Cameroon just signed a financing agreement for FCfa 6.6 billion. This funding provided as part of the “Technical Cooperation Facility (FCT)”, we learned, will enable to strengthen the implementation of projects funded by the EU in Cameroon.

In practical terms, the two sides explain, these funds from the 11^th EDF will be used to carry out feasibility studies and finance technical assistance in the framework of projects financed by the EU; to finance the operation of the support unit to the EDF payment mandate issuer and to carry out communication actions to enhance the visibility of EU actions in Cameroon.

“The partners estimated that it was necessary to highlight not only the expertise, but also the information. Hence financing for communication”, explained Aliou Abdoullahi, National Coordinator of the Support Unit to the EDF National Payment Mandate Issuer.

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Rita Akana

12.Jun.2017

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A defining objective of the African Union, is to promote sustainable development at the economic, social and cultural levels as well as the integration of African economies. This noble mandate, enshrined in Article 3, of the Constitutive Acts of the AU, actually predates the AU, and was a principal goal of the Organization of African Unity, OAU, the predecessor body of the AU. Economic integration also provided a fundamentalimpetusin the formation of the variousRegional Economic Communities, RECs, and monetary zones in Africa – viz. ECOWAS, UMOA, CEMAC, CEEAC, EAC, AMU, CEN-SAD, SADC, COMESA, IGAD, etc. Together, these RECs have striven to promote and co-ordinate social, political and economic integration in the continent.Interestingly, some countries are even members of up two or three RECs.This is a testament to the overarching criticality of economic integration in the vision, plans and activities of African states. In this treatise, I will focus on the integration of financial services in Africa, an unheralded field, but where remarkable results are being recorded. A Payment System is a facilitator of monetary transactions, and a veritable integrative node. In the UEMOA zone, in West Africa, the GroupementInterbancaireMonétique de I’UnionEconomique et MonétaireOuestAfricaine, more widely known by its French acronym, GIM-UEMOA, set up by BCEAO, the Central Bank of West African States in 2003, in striving to create a cashless region, has grown to become a regional platform for cards, electronic payments, and clearing of interbank transactions. With over 100 banks, financial and postal institutions as members; cardholders in the GIM network,pay relatively low transaction fees. Also, the Central African equivalent, GIMAC,created in 2013, under the guidance of the Central Bank of Central African States, BEAC, is working with Banks to integrate the electronic payment system in the region, and ensure inter-operability and acceptance of GIMAC cards, for ATMs, POS, etc, by banks and for international payments,and reduce transactionand cash handlingcosts, whilefacilitating e-commerce. The East African Payment System, EAPS, provides a platform for the real time settlement of cross border payments in the region. Driven by the Central Banks in the region, and piloted in 2013, the payment system took off immediately in Kenya, Uganda, Tanzania, and subsequently, Rwanda. More remarkable is that EAPS is based on direct convertibility, and the use of the currencies of participating countries for transactions and settlement, without the intermediary facilitation of any OECD currency. For instance, transactions initiated in Tanzania shillings can be directly settled in Uganda shillings or Kenya shillings. In Southern Africa, the SADC Integrated Regional Electronic Settlement System (SIRESS),and the Regional Payment and Settlement System, REPSS, launched separately in 2014, are two integrative payment systems worth referencing. Through SIRESS, funds can be wired, real time, to beneficiaries with accounts in SIRESS commercial banks. REPSS, with a clearing house in Zimbabwe,and the Central Bank of Mauritius as its Settlement Bank, utilizes an electronic platform for cross-border payments and settlement. Quite positively, theseinitiatives, operationalized under the auspices of Central Banks, andwith the active participation of commercial Banks are technologically advanced, rapid, and secure. While leveraging on the real-time gross settlement systems of the countries, they seekto enhance efficiency, reduce settlement time, lower transaction costs and generally facilitate intra-African trade, and economic integration in the continent. In tandem, the banking sector, in Africa, has expanded exponentially in the last decade, in assetsize and profitability; geography -distribution channels and network; product sophistication- digital banking, cards, mobile payments;and,financial inclusion. Access to financial servicesalso continues to improve across the continent. Furthermore, leveraging on enhanced capacity,pan-African banks are increasingly able to collaboratively finance large ticket and transformational infrastructural projects through syndications and risk sharing. Currently, the top 20 pan-African Banks have assets over $800b, with over 11,000 branches. Beyond banking, we are also witnesses to the birth and growth of pan-African insurance, micro finance, and other financial service companies across the continent that offer greater diversity and depth of products and solutions. All these have led to the increase in the range, frequency, and diversity in the classes of risks that Banks, and other financial institutions, face. Concomitantly, risk management, regulatory compliance and corporate governancehave become more stringent, and with onerous application, as they remain important variables for assessing the health of Banks, in the drive towards overall sector viability and sustainability. Imperceptibly, but surely, the regulatory environment of the financial services sector, is also being integrated. The Association of African Central Banks, headquartered in Dakar, bringstogether 39 regional and country Central Banks in Africa. In line with its statutes and practices, its Assembly of Governorsusually meets yearlyto deliberate on financial system stability, monetary and payment systemintegration, the African Central Bank initiative, etc.Another critical arm is the Community of African Banking Supervisors (CABS) which works to strengthen banking regulatory and supervisory frameworks.In the last decade, I have observed, first hand, this increased collaboration between African Central Banks,with MOUs being signed, to facilitate cross border banking supervision, exchange of ideas and information sharing between host and home regulators. Also, the College of Supervisors set up by the Central Bank of Nigeria, as a forum that brings together host regulators of Banks, with headquarters in Nigeria, but with operations in other jurisdictions,to strengthen governance practices, and ensure soundness in the banking sector, is also a positive development. An evolving trend in the African banking space, is the initiative to connect Africa, andenablecustomers of a bank to conveniently access their accounts, deposit cash and make cheque withdrawals in any branch, in different countries across Africa, where the bank operates, outside the primary country holding the account. This has the distinct capability to alter the face and operation of banking in the continent as it will open up and facilitate easy movement of goods, services,capital, and people. I also look forward to the day, soon enough, for instance, when a Moroccan manufacturer of fertilizer visiting Zambia to negotiate a contract; agrees payment terms, issues a paymentinstrument right away to a Zambian exporter of high quality packaging materials and gets value immediately, using simple electronic payment instruments. On the whole, these emerging trends contribute significantly to the on-going African-led processes of creating a powerful, vibrant pan-African financial infrastructure, to further undergird and deepen Pan African economic, commercial, business and social interactions through access to personal and business finance across Africa. Together with the various similar initiatives in different spheres by African economic communities identified above, these initiativeswill serve as a powerful signal of the march of African economic advancement through financial facilitation to build a fully integrated financial system that enhances financial inclusion, and serves the people. Work remains. To accelerate financial integration, existing regional mechanisms and frameworks, including those highlighted above, must now begin to coalesce and fuse into larger pan-African systems, Central Banking, common currency, payments and collections; intra-African trade facilitation; etc. In spite of existing differences, but given the importance and fluidity of finance to agriculture, infrastructure, industryand economic development, the largest economies in each region should serve as regional anchors, within a defined framework of the Assembly of the African Union. Emeke E. Iweriebor is an Executive Director and CEO UBA Africa – Francophone

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09.Jun.2017

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The world bank has warned the government of la Republique of Cameroon to cut spendings as its debt level has reached an alarming proportion.


Refusing to hit to advice, the minister of the economy, Louis Paul Motaze has gone ahead to borrow a sum of 187.804 billion fcfa from the African Development Bank ( ADB) and the African development fund (ADF).


Negotiations to grant the loan which is aimed at revamping some road networks in the country were finalised this Thursday 8th of June in Yaoundé between the representatives  of the ADB and  ADF and Luois Paul Motaze, Economy minister.

The two conventions pertains to the partial funding of the transport sector support programme- phase 2. This include;
The rehabilitation of the Yaoundé- Bafoussam - Babadjou road(241km),

The construction of the grand Zambi- Kribi stretch of road(53km),

And the construction of the Maroua - Bogo - Pouss section of road(63.16km)

The ADB is expected to provide 177.208 billion fcfa meanwhile the ADF will loan out the remaining 10.596 billion Fcfa.

Half of this fabulous sum of money borrowed will certainly go to private pockets rather than to serve the real purpose of development as mr Biya's government is reputed for high level corruption and embezzlement of public funds.

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Rita Akana

09.Jun.2017

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The management of the Autonomous port of Kribi, a public enterprise charged with managing the deep water port of Kribi, whose operation has been awaited for nearly two years in the region of South Cameroon has just launched a series of calls for tenders with a view to acquiring certain equipment and completing certain specific works.

One of the services to be achieved within the framework of these calls for tenders concerns rehabilitating handling equipment acquired many months ago and unused to date, due to the delay experienced in the operation of the deep water port of Kribi.

'It will soon be 2 years that these equipment are parked at the port, exposed to the effects of rain and wind from the sea. It is thus a question of rehabilitating handling equipment to optimal condition before handing them over to the terminal concessionary operator who are in the process of finalising the signature of their contract with the State of Cameroon" the MD of the Autonomous port of Kribi, Patrice Melom, confided to Quotidien.

Officially, it is the finalisation of concession contracts with certain operators of the different port terminals, which is blocking operation of the biggest port infrastructure in Cameroon. These operators have however been known since the month of August 2015.

Indeed, if the Dutch company Smit Lamnaco, was awarded the contract for haulage and mooring since last 2 February, almost 2 years after its hiring which took place by the State of Cameroon in April 2015; consortiums Necotrans-KPMO (multi-purpose terminal) and Bolloré-CMA CGM-CHEC (container terminal), both signed up since August 2015, continue to await the government's blessing to start activities in their respective terminals.

The signature of the concession contract to manage the container terminal, scheduled the first time on 2 February 2017, has been put off sine die. For unexplained reasons.

Constructed by the Chinese company CHEC, thanks to financing from Eximbank China, the deep water port of Kribi is equipped with 650 m of quays, of which 350 m for the container terminal and 265.5 m for the multi-purpose terminal. The two terminals have a capacity of respectively 300,000 Twenty Equivalent Unit (TEU) per year and 1.2 million tons annually.

The second phase of construction of this infrastructure plans the extension of the container terminal by 700 m of quay, aiming to increase it to 1050 m, as well as the construction of oil and ore terminals. With a 15.5 m channel, this port infrastructure which will allow draught vessels of 16m, is presented by the experts as being the best on the West African coastline.

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Rita Akana

07.Jun.2017

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Frozen chickens despite its ban from import and sale, it has still resurfaced in the cold stores in Cameroon.

 It is resurfacing exactly 11 years since it was banned in 2006 by decision of the Minister of Livestock, Fisheries and Animal Industries. The poultry professionals have indicated that the return of frozen chicken has caused the poultry sector to lose 10 billion FCFA in four months in Cameroon. 

According to some housewives, high local chicken prices are the cause of frozen chickens return in the market.
“I have gone into buying frozen chicken because of the high prices in our local chicken market. A kilogram of local chicken, whose price ranged from 2,300 to 2,500 FCFA now ranges between 3,500 to 4,000 FCFA.

“For my family to eat to plan at least 6000 Frs, since I do not have enough money, I prefer to go to a cold shore to buy imported chicken. Prices vary between 1800 FRS for the kilogram of the legs and 2000 FRS for a kilogram of the thighs and the wings "says a housewife

Some groups suggest that the government should import day-old chickens and subsidize products like the feeds.

“If today the Government decides to accompany the farmers, there will be chicken in the market” says a Pundit.

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Rita Akana

06.Jun.2017

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The concessionary train transport operator Camrail, subsidiary of Bolloré, and the Italian company Italfer held a meeting on 31 May in Douala in respect of a partnership. The final objective, according to reliable sources, is that the tandem accelerate modernisation of the railways in Cameroon.

During this meeting, Camrail indicated that it has, for example, already renovated 175 km of lines between Batchenga, in the Centre, and Ka'a, in the East region. In this regard, investment of an amount of FCfa 2.4 billion, enabled renovation of railway ties, bi-blocks sleepers and ballast beds. In mid-May, Eric Melet, Bolloré Transport & Logistics General Manager of Development, visited the work sites, by way of Ebaka quarry, to see what had been achieved.

The company Italfer S.P.A, for its part, represents a consortium of Italian companies. It signed with the Minister of Public Works (MINTP), Emmanuel Nganou Djoumessi, last April, an agreement linked to renewing the existing railway lines (Douala-Mbanga-Kumba and Douala-Yaoundé). The company has in its specifications the supply of passenger rolling stock (passenger cars, railcars). It must also construct a passenger station at Yaoundé and provide its support in the implementation of a training policy in railway professions in Cameroon.

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Rita Akana

02.Jun.2017

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