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On December 3, 2014, Cameroon’s Treasury Department began issuing Treasury bills totalling 5 billion FCFA with a 13-week maturity on the Central African States Bank (BEAC) securities market.

Subscriptions can be made at 13 CEMAC zone banks authorised by Cameroon’s Finance Ministry to act as Primary Dealers (SVT). In total, the State will have raised close to 100 billion FCFA on the BEAC for 2014.

At the same time, on November 24, 2014, Cameroon issued Treasury bonds for a total of 150 billion FCFA on the Douala Stock Exchange (DSX), the country’s securities market. Subscriptions close on December 23.

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Ngwa Bertrand

09.Dec.2014

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The stakes currently belong to the Brazilian company, Vale S.A., which has welcomed the upcoming transaction with Mitsui. “The transaction is essential for the continuity of our investment in Mozambique…as it provides the funding for the completion of the Moatize project and of the NLC [Nacala Logistic Corridor],” Vale S.A. said in a Tuesday statement. Many companies involved in the coal industry, including Vale, have decided to sell their stakes following a drastic fall in the global coal price which has dropped to five-year lows.

However, a Mitsui official has expressed optimism that the unfavorable situation in the coal market will undergo changes in the near future. "Some 80 percent of coal producers are considered to be running in the red. This won't continue long," said Kotaro Yamaguchi, Mitsui's coal department director, adding that "prices will go back to healthy levels." Mitsui & Co. is Japan’s second-largest trading house and one of the world’s largest corporate groups.

 

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Ngwa Bertrand

09.Dec.2014

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Oil production in Cameroon rose 15 percent year-on-year to 22.69 million barrels by the end of October, according to the state oil firm, but output may double within the next two years as new fields come on line. Cameroon became a modest oil producer in 1977, with output hitting a record of 185,000 barrels per day (bpd) in 1986 before dropping steadily to 63,000 bpd in 2011 due to maturing fields.

However, new finds and new techniques to tap more oil from matured wells have seen volumes rising again. "This increase results particularly from the Dissoni field production, as well as the commissioning of three new fields: Padouk, Inter Inoua-Barombi and Barombi," Cameroon's National Hydrocarbons Corporation (SNH) said in a statement on the output for the year to October.

The Dissoni oil field is operated by French oil firm Perenco in partnership with the state oil company. Perenco is also the operator in the Inter Inoua-Barombi and Barombi blocks. Addax Petroleum, a subsidiary of Sinopec Group, operates Padouk. Some at the state company are even more optimistic. "Crude production could double within two years thanks to the exploitation of new deposits. It could hit 57 million barrels in 2016," the SNH official said, requesting anonymity. The state oil firm said in the statement that gas production jumped 123.9 percent to 9,160 million cubic feet compared with the same period last year.

 

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Ngwa Bertrand

09.Dec.2014

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The National Assembly has voted a new law granting airline companies the right to collect the 10,000 FRS airport stamp duty tax. The measure is contained in the Finance Bill of 2015 passed last week by the Lower House of parliament. Cameroon Concord’s senior economic correspondent Kenneth Najeme who also moonlights as Chairman and CEO of WorldConnect Essen noted that the new legislation is to secure the revenue of the state.

The new government policy will have no real impact on the performance of the airline companies but will wipe away some of the hassles for passengers who often encountered difficulties meeting this formality before boarding from Cameroon. The various airline companies are expected to include the 10,000 FRS in the prices of air tickets. Cameroon Concord understands the implementation will begin immediately after the President of the Republic signs the decree promulgating the Finance Act 2015 into law.  

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Ngwa Bertrand

09.Dec.2014

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The Cameroonian government and Préfarail Belguim ,a Belgian tram construction company signed an agreement for the construction of a tramway in Yaounde.

The implementation of this project will contribute to solving the difficult problem of mass transport Yaounde City is facing .The 50 km long tramway will be launched early next year 2015.Upon completing the project,the Belgian company is also hoping to propose the same tramway construction to the authorities of Douala city.

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Ngwa Bertrand

09.Dec.2014

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In a November 27, 2014 correspondence addressed to the Minister of Finance and the President’s Office, in copy, three Cameroonian breweries operating in Cameroon lament the “unrealistic” rate increase in excise duty on alcoholic drinks (this tax is intended to discourage the consumption of products not deemed to be essential), in the 2015 Finance Bill currently being tabled in parliament. This was revealed in an edition of the La Lettre du continent publication.

Indeed, with this tax increase hitting importers of such products as cigarettes, spirits and other luxury items, breweries’ fees could increase by 40%. Brasseries du Cameroun (SABC) of the France-based Castel Group, the Diageo Group’s Guiness and the Cameroon Breweries Union led by billionaire Kadji de Fosso fear “a market collapse” in the alcoholic beverage sector in 2015.

Indeed, Cameroon is a very profitable market for breweries. For example, although there has been some downturn relative to 2011 when sales reached 45.2 billion FCFA (around 68.7 million euros), Brasseries du Cameroun’s sales were still 26.9 billion FCFA (41 million euros) in 2013. The brewery market leader’s shareholders shared 25 billion FCFA in dividends last year.

Visiting Cameroon in August 2014, President of the Africa division of the UK company Diageo, Andy Fennel stated that Guiness is “[their] 4^th largest market in the world.” In Africa, Cameroon is also Diageo’s 2^nd largest market after Nigeria with its market of over 120 million consumers compared to 20 million only for Cameroon.

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Ngwa Bertrand

07.Dec.2014

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