Index of "1996 Country Commercial Guides"
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U.S. Department of State 
Cameroon Country Commercial Guide 
Office of the Coordinator for Business Affairs 
 
 
 
 
                           COUNTRY COMMERCIAL GUIDE 
 
                                    FOR 
 
                                  CAMEROON 
 
                              Fiscal year 1996 
 
 
Prepared by:  United States Embassy 
              Yaounde, Cameroon 
 
 
This Country Commercial Guide (CCG) presents a comprehensive look at 
Cameroon's commercial environment through economic, political and market 
analyses.   
 
The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annualy at U.S. Embassies through 
the combined efforts of several U.S. governement agencies.   
 
 
  TABLE OF CONTENTS 
 
  COUNTRY COMMERCIAL GUIDE 
 
 
  CAMEROON 
 
I.    EXECUTIVE SUMMARY 
 
II.   ECONOMIC TRENDS AND OUTLOOK 
  1. Major Trends and Outlook 
  2. Principal Growth Sectors 
  3. Government Role in the Economy 
  4. Balance of Payments Situation 
  5. Infrastructure Situation 
 
III.  POLITICAL ENVIRONMENT 
  1. Nature of Political Relationship with the United States 
  2. Major Political Issues Affecting Business Climate 
  3. Brief Synopsis of Political System, Schedule for Elections, and 
Orientation of Major Political Parties 
   
IV.  MARKETING U.S. PRODUCTS AND SERVICES 
  1. Distribution and Sales Channels 
  2. Use of Agents and Distributors; Finding a Partner 
  3. Franchising 
  4. Direct Marketing 
  5. Joint Ventures/Licensing  
  6. Steps to Establishing an Office 
  7. Selling Factors/Techniques 
  8. Advertising and Trade Promotion 
  9. Pricing Product 
 10. Sales Service/Customer Support 
 11. Selling to the Government 
 12. Protecting Your Product from IPR Infringement 
 13. Need for a Local Attorney 
 
V.    LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENTS 
  1. Best Prospects for Non-Agricultural Goods and Services 
  2. Best Prospects for Agricultural Products 
  3. Significant Investment Opportunities 
 
VI.  TRADE REGULATIONS AND STANDARDS 
  1. Trade Barriers, including Tariffs, Non-Tariff Barriers and Import 
     Taxes 
  2. Customs Valuation 
  3. Import Licenses 
  4. Export Controls 
  5. Import/Export Documentation 
  6. Temporary Entry 
  7. Labeling, Marking Requirements 
  8. Prohibited Imports 
  9. Standards 
 10. Free Trade Zones/Warehouses 
 11. Special Import Provisions 
 12. Membership in Free Trade Arrangements 
 
VII.  INVESTMENT CLIMATE 
  A1. Openness to Foreign Investment 
  A2. Conversion and Transfer Policies 
  A3. Expropriation and Compensation 
  A4. Dispute Settlement 
  A5. Performance Requirements/Incentives 
  A6. Right to Private Ownership and Establishment 
  A7. Protection of Property Rights 
  A8. Regulatory Systems: Laws and Procedures 
  A9. Efficient Capital Markets and Portfolio Investments 
 A10. Political Violence 
  B.  Bilateral Investment Agreements 
  C.  OPIC and Other Investment Insurance Programs 
  D.  Labor Availability 
  E.  Foreign Trade Zones/Free Ports 
  F.  Capital Outflow Policy 
  G.  Major Foreign Investors  
 
VIII. TRADE AND PROJECT FINANCING 
  1.  Brief Description of Banking System 
  2.  Foreign Exchange Controls Affecting Trading 
  3.  How to Finance Exports/Methods of Payment 
  4.  Types of Available Export Financing and Insurance 
  5.  Project Financing Available 
  6.  List of Banks with Correspondent U.S. Banking Arrangements 
 
IX.  BUSINESS TRAVEL 
  1.  Business Customs 
  2.  Travel Advisory and Visas 
  3.  Holidays 
  4.  Business Infrastructure 
 
X.   APPENDICES 
  A.  Country Data 
  B.  Domestic Economy 
  C.  Trade 
  D.  Investment Data 
  E.  U.S. and Country Contacts 
  F.  Market Research 
  G.  Trade Event Schedule 
 
 
-------------------- 
I. EXECUTIVE SUMMARY 
-------------------- 
 
  Cameroon's richly endowed economy grew by nearly six percent per year 
during the 1970's and early eighties.  Sharp declines in the world 
market prices of its exports and poor economic policies caused a 
dramatic reversal of Cameroon's economic performance in 1985.  The 
country's export earning declined by 50 percent and GDP declined by 6.3 
percent per year from 1985 to 1993.  Some economic reforms were 
instituted, but the Government has not been able to fulfill the 
financial and economic reform objectives of several IMF stand-by 
programs.  A fourth stand-by program is being negotiated and may be 
signed during the second half of 1995. 
 
  Cameroon's economy improved after a 50 percent currency devaluation 
was instituted in Africa's French franc zone in January, 1994.  The 
volume and value of Cameroon's major exports increased substantially 
during 1994.  Petroleum exploration activities also resumed after the 
Government approved new financial incentives for oil exploration and 
production.  Consequently, existing petroleum production levels may be 
maintained.  The preliminary agreement to construct an oil pipe line 
from Chad through Cameroon was signed in January, 1995.  Construction on 
the pipeline may begin during 1997. 
 
  Industrial production in Cameroon also increased slightly during 
Fiscal Year 1994/95. 
 
  The banking crisis continued, however.  Cameroon's fourth largest bank 
was forced to limit deposit withdrawals in June,1995 after media reports 
announced the bankruptcy of its major stockholder. 
 
  According to the International Monetary Fund (IMF), Cameroon's real 
GDP increased by 3.3 percent during Fiscal Year 1994/95 versus a decline 
in Fiscal Year 1993/94 of 4.3 percent. 
 
  Price inflation of 3.43 percent during the first three months of 
Calendar Year 1995 was moderate compared to the Calendar Year 1994 
inflation rate of 48.4 percent. 
 
  If the Government moves forward with economic reforms recommended by 
the World Bank and IMF, real GDP growth rates of 5 percent per year may 
be attained during the next five years. 
 
  Cameroon's economic growth in coming years should be led by the export 
sector (coffee, cocoa, wood, bananas, cotton, rubber, palm oil).  The 
volume and value of its major exports are likely to continue to increase 
during the next three years.  Due to new financial incentives, 
investments will likely increase in petroleum exploration and 
production. 
 
  Progress toward privatization of Cameroon's remaining 120 public 
enterprises has been very slow.  The World Bank and IMF are pressing 
hard for speedier action which may offer opportunities to U. S. firms 
for the privatization studies and purchase bids.  Although some progress 
has been made toward economic reform, the public sector is still the 
dominant force in the country's economy, which has hampered the 
development of indigenous entrepreneurs and a strong privatization. 
 
  Cameroon's positive trade balances have been more than offset by its 
huge deficits in the services account.  The 1994/95 overall balance of 
payments deficit is projected to reach CFA 217 billion which is the 
equivalent of 5 percent of the GDP. 
 
  U. S.-Cameroonian relations, although good, have cooled since 1992 due 
to U. S. concern about continued human rights abuses and the slow pace 
of political and economic reform.  The U. S. Agency for International 
Development (USAID) mission in Cameroon was closed in December, 1994 
because the U. S. Government had determined that the Cameroonian 
Government was "a poor development partner."  A small amount of U. S. 
assistance still goes to human rights-related projects, nongovernmental 
organization (NGO) development, and self-help projects in the provinces.  
Peace Corps volunteers continue to work in Cameroon, and the U. S. 
Information Service (USIS) continues to organize and fund cultural, 
educational and informational exchange programs. 
 
  Political tensions persist in Cameroon.  Opposition parties are 
bitterly dissatisfied with the slow pace of Government initiatives for 
constitutional reform, municipal elections and liberalization of the 
media.  The Government's efforts to fight corruption and abuses by its 
own leadership will be a critical issue for opposition parties and the 
business community.  A major impediment to all investment is the lack of 
a properly functioning, independent judiciary. 
 
  In contrast to the relatively open March, 1992 National Assembly 
election, the October, 1992 Presidential election was widely regarded in 
Cameroon as flawed.  In principle, National Assembly elections are next 
scheduled for March, 1997 and President elections for October, 1997.  
The Government announced that long postponed municipal elections would 
be held before the end of 1995. 
 
  Using the services of a local agent is a recommended first step in 
establishing a presence in the Cameroonian market.  Great caution is 
required for joint ventures and licensing arrangements in Cameroon as 
the investment climate presents enduring high-risk factors.  Incoming 
American companies should seek the services of a local attorney to deal 
with Cameroon's hazardous business environment. 
 
  The best prospects for U. S. exports to Cameroon are:  1) oil and gas 
field machinery and production and exploration services because of new 
investments that are scheduled for oil exploration and production; 2) 
trucks, trailers/buses because of rapid expansion of the timber 
industry; 3) agricultural chemicals because of expansions in export crop 
production; and 4) textile products because of the growing market for 
used clothing and shoes.  Existing industries in Cameroon will continue 
to import substantial amounts of U. S. wheat and tobacco during the next 
three years. 
 
  Cameroon's policies, as defined by law, meet all the necessary 
elements of an open investment regime.  However, current practice does 
not permit a fair implementation of the country's laws.  Despite 
Cameroon's attractive investment code, very few foreign investors have 
started operations in the country.  Disputes involving foreign companies 
and their Cameroonian partners are commonplace in Cameroon.  During 1994 
and 1995, there were a number of cases where American companies were 
defrauded by their business partners or harassed by the courts and 
administrative authorities.  Under the current business investment 
climate, it is difficult to enforce contract rights, protect property 
rights or defend oneself against frivolous lawsuits in Cameroon.  
Nonetheless, large American oil companies continue to operate 
successfully in the country.  An American automobile manufacturer has 
expressed interest in establishing a dealership in Cameroon, and an 
American telecommunications giant has consulted with the Cameroonian 
Government about expanding regional communications links. 
 
  Country Commercial Guides are available on the National Trade Data 
Bank on CD-ROM or through the Internet.  Please contact STAT-USA at 1-
800-STAT-USA for more information.  To locate Country Commercial Guides 
via the Internet, please use the following world-wide web address:  
WWW.STAT-USA.GOV.  CCGs can also be ordered in hard copy or on diskette 
from the National Technical Information Service (NTIS) at 1-800-553-
NTIS. 
 
------------------------------- 
II. ECONOMIC TRENDS AND OUTLOOK 
------------------------------- 
 
1.  MAJOR TRENDS AND OUTLOOK 
 
  Cameroon has abundant natural resources, a favorable climate and one 
of Africa's best trained work forces.  It has a population of 12.5 
million and is about the size of California.  Cameroon's economy 
expanded rapidly during the 1970s and early eighties.  Real per capital 
income grew at an average rate of nearly six percent a year and peaked 
at about USD 1,080 in FY 1985/86.  Since 1985, there has been a dramatic 
reversal in economic performance.  GDP per capita declined by 6.3 
percent per year from 1985 to 1993.  The decline was precipitated by 
sharp drops in world prices for Cameroon's major exports (oil, coffee, 
cocoa) and appreciation of the U.S. dollar.  The economic policies of 
the Government also contributed to the country's economic downturn.  
Productivity declined in agriculture and other traditional growth 
sectors that had been neglected during the period of prosperity.  
Imprudent loans by government-controlled banks created a prolonged 
crisis in the financial sector that forced many banks to close or 
liquidate.  A multitude of inefficient public enterprises eventually 
became bankrupt and created additional huge financial losses to the 
Government.  Ultimately, export earning declined by 50 percent and the 
Cameroonian Government was not able to meet its external and domestic 
financial obligations. 
 
  The IMF, World Bank, African Development Bank, Paris Club, European 
Community and Government of France have provided substantial external 
financing to Cameroon since 1989 in order to help reform the economy and 
restore sustainable economic growth.  The Cameroonian Government has not 
been able to fulfill many of the financial and economic reform 
objectives of the three IMF stand-by programs that it has signed since 
1990.  Some corrective measures have been taken including elimination of 
most price controls on domestic trade and restrictions on imports.  An 
IMF review of Cameroon's economic reform program was conducted in mid-
1995 and the Government expects to sign a fourth stand-by program during 
the second half of 1995. 
 
  During 1994 and the first half of 1995, Cameroon's economy began to 
reap the benefits of the 50 percent currency devaluation that was 
instituted in Africa's French Franc Zone in January, 1994.   According 
to the IMF, for FY 93/94 (7/1/93 to 6/30/94) the volume of Cameroon's 
timber exports increased by 52 percent, banana exports by 37 percent, 
coffee exports by 30 percent, rubber exports by 11 percent, and the 
volume of overall exports increased by 12 percent.  Supplementing the 
positive effects of the currency devaluation, Cameroon's major exports 
have enjoyed relatively favorable prices on the world market during 1994 
and 1995. 
 
  Statistics published in Cameroon's media also reported substantial 
increases in the volume and value of Cameroon's major exports during CY 
1994.  Robusta coffee exports, reportedly, increased in volume by 32 
percent and in value by 254 percent, raw wood exports increased 52 
percent in volume and 138 percent in value and cocoa exports declined 21 
percent in volume, but increased in value by 43 percent.  (Note: The 
currency devaluation would automatically create a 100 percent increase 
in the local currency value of Cameroon's exports for 1994.) 
 
  Oil production peaked at 60 million barrels in FY-87/88, but has been 
decreasing steadily to below 40 million barrels in FY-93/94.  All of 
Cameroon's producing oil wells are located in the Rio Del Rey Basin 
whose reserves, at current production rates, may be exhausted by early 
next century.  In 1994 and 1995, the Government approved new financial 
incentives for petroleum exploration and for oil production in marginal 
fields that have revived exploration activities in the Rio Del Rey 
Basin.  In July, 1995 the Government announced that a new production 
platform would be constructed in Rio Del Rey to exploit a recently 
discovered reserve.  The new oil concession may allow Cameroon to 
maintain existing production levels.    Exploration activities have also 
been scheduled for other offshore regions during 1995 and 1996, but the 
prospects for additional oil discoveries in Cameroon are unclear.  
 
  In January, 1995 the Cameroonian Government signed a preliminary 
framework agreement with a consortium of oil companies to construct and 
operate the Cameroonian portion of the Chad/Cameroon Oil Pipeline.  
Steady progress has been made since then toward finalizing the agreement 
and obtaining financing for the project.  Although the project may 
eventually provide substantial revenues to Cameroon, construction would 
not begin until 1997 or later, if the project moves forward as 
anticipated. 
 
  Industrial production has also, reportedly, stabilized during FY 
94/95.  Media reports estimated that industrial production increased 3.3 
percent between the first and second quarter of FY 94/95.  There are 
also signs that the industrial sector is reinvesting.  According to the 
IMF, despite the 50 percent currency devaluation, imports of capital 
goods for FY 93/94 increased by seven percent suggesting positive 
reinvestment in equipment and machinery. 
 
  In April, 1995 Cameroon's banking system suffered a substantial 
setback when the offshore parent corporation of the fourth largest of 
its eight remaining commercial banks was forced into liquidation.  The 
bank eventually decided to limit deposit withdrawals and office hours to 
deal with a run by anxious clients.  If, as anticipated, the bank is 
placed into liquidation, it will be the tenth commercial bank to close 
in Cameroon since 1989.  The dominant factor in the continuing banking 
crisis is the large amount of the bad non-performing debt that the 
Cameroonian Government and public enterprises owe the banking system.  
Most commercial banks remain undercapitalized and none meet all the 
prudential criteria set by the regional Central Banks (BEAC).  The World 
Bank is developing a banking sector rehabilitation program that may 
provide some hope that the banking system can be restructured and its 
credibility restored. 
 
  According to the IMF, Cameroon's long depression finally reversed 
itself during FY 94/95.  Real GDP increased by 3.3 percent during FY 
94/95 versus a decline in FY 93/94 of 4.3 percent.  Price inflation has 
moderated.  The Consumer Price Index (CPI) for the capital city, 
Yaounde, increased by 48.4 percent for the first full year after the 50 
percent currency devaluation (CY 94).  For the first three months of CY 
1995, Yaounde's CPI increased by just 3.43 percent. 
 
  Cameroon's prospects for continued economic growth are mixed.  If the 
Government moves forward with the economic reforms recommended by the 
IMF and World Bank - including substantial layoffs in the civil service, 
privatization of public enterprises and debt rescheduling, -  real GDP 
growth rates of 5 percent per year could be attained during the next 5 
years.  If Cameroon does not take the economic reform measure necessary 
to qualify for substantial financial flows from the International 
Financial Institutions and Donor Community, its economic revival may be 
short-lived and the country may resume its long and dramatic economic 
collapse. 
 
2.  PRINCIPAL GROWTH SECTORS 
 
  Cameroon's economic growth in coming years should be led by the export 
sector.  Farm gate prices for coffee, cocoa and other exports increased 
dramatically after the currency devaluation in January, 1994.  Planters 
responded favorable by rehabilitating abandoned orchards and planting 
new trees.  The positive effect of these new investments will be seen 
gradually as yields and quality increase and the three year growing 
cycle is completed in order to harvest new seedlings.  Much of the 
additional income earned by farmers will be spent on the economy and 
contribute further to economic growth. 
 
  The volume and value of exports of wood logs, bananas, cotton, rubber 
and other export crops are also likely to increase during the next three 
years.  Heavy taxes, including export taxes of between 15 and 25 
percent, will impede growth in the export sector, however, and 
fluctuating world prices could also have a negative impact on production 
levels. 
 
  Continued investments in oil production, exploration and 
transportation, including a new production platform in the Rio Del Rey 
Basin and the proposed Chad/Cameroonian Pipeline, may provide the second 
largest boost to Cameroon's economy during the next three years.  The 
new oil concession will be the first granted under the 1990 mineral law 
that provides additional financial incentives to petroleum companies.  
The Government has also agreed to provide additional incentives to 
petroleum companies for the exploitation of small marginal offshore 
petroleum reserves.  Recent petroleum discoveries by American companies 
in neighboring Equatorial Guinea also could have a positive impact on 
Cameroon's economy.   
  
3.  GOVERNMENT ROLE IN THE ECONOMY 
 
  The Cameroonian Government has undertaken a number of reforms since 
1989 to reduce its predominate role in the economy and promote private 
sector development.  Tax and tariff reforms simplified rates and 
eliminated some unfair exemptions.  Trade reforms abolished all 
remaining qualitative restrictions on merchandise imports.  A new labor 
code makes employer-employee relations more flexible; and the new 
investment codes streamlines tax exemptions and provides guarantees and 
benefits to investors.  Price controls were lifted in 1994 with the 
exception of pharmaceuticals, petroleum products, and goods and services 
produced by public monopolies.   The government marketing board for 
coffee and cocoa was dramatically restructured and most restrictions on 
marketing and exporting these products were eliminated. 

  Progress toward privatization of Cameroon's remaining 120 public 
enterprises has been very slow.  Large public enterprises are deeply 
involved in all aspects of the economy including agricultural production 
(palm oil, rubber, bananas, cotton).   The Government grants public 
sector monopolies for the petroleum, energy, water, telecommunications, 
aluminum and cotton industries.  The Government owns an airline, 
shipping company, railroad company and a huge investment fund.   
 
  The Government's role in the troubled banking system has been reduced 
considerably since 1989 by a series of structural and legal reforms.  It 
remains a major shareholder in most Banks and still has considerable 
influence over the banking sector.  Lending and borrowing rates are set 
by the regional Central Bank and banks are not allowed to lend below the 
floor rate.  Foreign exchange controls in Cameroon are minimal and 
exists for primarily statistical purposes. 
 
  Although some progress has been made toward reducing the government's 
role in Cameroon's economy, the public sector is still the dominant 
force in the country's economy. 
 
4.  BALANCE OF PAYMENTS SITUATION 
 
  Cameroon's trade balance was positive during the years preceding the 
January 1994 50 percent currency devaluation.  Due to the positive 
effects of the devaluation, Cameroon's trade surplus increased 
dramatically during Calendar Year 1994.  CY 1994's surplus of CFA 350.6 
billion was more than double the CY 1993 surplus of CFA 133.9 billion.  
(Note: The currency devaluation would automatically create a 100 percent 
increase in the local currency value of Cameroon's exports for 1994.)  
For the first time in twenty years, Cameroon's trade balance excluding 
petroleum products was positive.  The CY 93 non-petroleum balance was 
minus CFA 28.8 billion.  For CY 94, the non-petroleum balance was 
positive CFA 41.8 billion. 
 
  However, Cameroon's huge deficits in the services account have more 
than offset the trade surpluses.  According to IMF reports, the overall 
balance of payments deficit averaged CFA 222 billion during 1991/92 - 
1993/94 and was financed for the most part by an accumulation of payment 
arrears.  The 1994/95 overall balance of payments deficit is projected 
to reach CFA 217 billion which is the equivalent of 5 percent of GDP. 
 
  Cameroon's stock of external debt payments arrears is huge (FY 92/93 - 
CFA 460 billion).  Despite Paris Club debt rescheduling, Cameroon has 
not yet been able to meet most of its external payment obligations.  It 
has struggled to make payments to its most important creditors (World 
Bank, IMF) in order to avoid default and maintain existing financial 
inflows.  A combination of IMF and World Bank structural adjustment 
financing, Paris and London Club Debt relief, and substantial financial 
assistance from bilateral donors will be required to deal with 
Cameroon's large unfunded balance of payments deficit. 
 
5.  INFRASTRUCTURE SYSTEMS 
 
  Cameroon's infrastructure for the distribution of goods is not fully 
developed, but it permits access to all regions of the country.  
Cameroon's main industrial and commercial port city, Douala, is linked 
to major Southern cities by good roads.  It is also linked to Yaounde, 
the second major city, by rail transportation.  Distribution to northern 
provinces is mainly by train to Ngaoundere where regional warehouses 
stock goods for onward road delivery to other northern cities and Chad.  
The railway line also links Douala to the East province, which serves as 
a transit point for goods bound for the Central African Republic.  
Cameroon is served by three international airports at Douala, Yaounde 
and Garoua which have facilities for air freight.  There are over 50 
small airports and airstrips, of which only 9 have permanent surface 
runways.  As a result of the economic crisis, only three of the smaller 
airports are in service. 
 
  No major infrastructure project has been initiated in Cameroon for 
several years.  Projects lined up by the African Development Bank and 
the World Bank have been delayed because of financial difficulties.  
Road projects financed by the French and European Union have encountered 
numerous delays and some may be canceled. 
 
  Electricity, telephone and water service are available in Cameroon's 
cities, larger towns and some villages and rural areas.  Utility and 
telephone services are good in the two largest cities, Yaounde and 
Douala, but are becoming increasingly unreliable because of poor 
maintenance, corruption and mismanagement. 
 
--------------------------- 
III.  POLITICAL ENVIRONMENT 
--------------------------- 
 
1.  NATURE OF POLITICAL RELATIONSHIP WITH THE UNITED STATES 
 
  U.S.-Cameroon relations, although good, have cooled since 1992 due 
primarily to U.S. concern about continued human rights abuses and the 
slow pace of political and economic liberalization.  In November 1992, 
following the flawed Presidential elections, the U.S. Government 
suspended some development assistance and some deliveries of military 
equipment to the Government on human rights and democratization grounds.   
The USAID Mission in Cameroon was closed December 1994 because the 
agency had determined that the Cameroonian Government was "a poor 
partner in development".  In September 1992, the U.S. Department of 
Commerce phased out its Foreign Commercial Service presence in Cameroon, 
and in September, 1993 the American Consulate in Douala was closed for 
budgetary reasons. 
 
  The U.S. Government continues to provide substantial funds to 
International Financial Institutions such as the IMF, the World Bank and 
the African Development Bank, which provide project and non-project 
assistance to Cameroon.  In addition, about 150 Peace Corp volunteers 
continue to work in Cameroon, in the fields of agricultural extension, 
education, health and environment.  The U.S. Information Agency (USIS) 
closed the American Cultural Center in Douala in 1990.  USIS has a 
library and cultural center in Yaounde and continues to organize and 
fund cultural, educational and informational exchange programs. 
 
2.  POLITICAL ISSUES AFFECTING BUSINESS CLIMATE 
 
  Cameroon has been under varying degrees of political tension for the 
past four years.  New foreign investments have been scarce during this 
period, and even local investors hesitate to invest.  Incidents of 
political unrest and violence have declined during the past two years, 
but opposition political parties remain bitterly dissatisfied with the 
slow pace of government initiatives for constitutional reform, municipal 
elections and liberalization of the press and media. 
 
  The threat of some political strife continues to be a factor in 
Cameroon because many political groups in the English-speaking minority 
strongly advocate restoration of the decentralized federation of the 
Anglophone and Francophone regions of the country that was abrogated in 
1972.  Some Anglophone groups support outright secession.  These options 
are unacceptable to the Government.   Large demonstrations in favor of 
federation or secession were held in Cameroon's two Anglophone provinces 
in June 1995.    
 
  Cameroon has made incremental progress toward liberalizing and 
reforming its economy.  Many of the country's opposition parties are 
opposed to elements of the reform program including privatization of 
public enterprises and laying off government workers. 
 
  Corruption and a dysfunctional and arbitrary judicial system severely 
disrupt Cameroon's economy and society.  President Biya announced an 
anti-corruption campaign in June, 1995.  The Government's efforts to 
fight corruption and abuses by its own leadership and rank and file will 
be a critical political issue for opposition parties and the business 
community. 
 
3.  BRIEF SYNOPSIS OF POLITICAL SYSTEM, SCHEDULE FOR ELECTIONS, AND 
ORIENTATION OF MAJOR POLITICAL PARTIES 
 
  The 1972 constitution provides for strong executive authority.  The 
President names and dismisses cabinet members and judges, ratifies 
treaties, leads the armed forces and has a long list of other 
authorities.  The unicameral National Assembly has 180 members whose 
districts are based on proportional representation of the population.  
Unless it is called to special session by the President, the Assembly is 
called to session twice a year for one month sessions.  The governors of 
Cameroon's ten provinces are appointed by the President. 
 
  Nominally a multiparty republic, Cameroon continues to be ruled in 
fact by President Biya and a circle of advisors drawn largely from his 
own ethnic group and from his party, the Cameroon People's Democratic 
Movement. 
 
  National Assembly elections were held March 1992 and are next 
scheduled to be held in March 1997.  The country's major opposition 
party, which has strong support in the two Anglophone provinces, the 
Social Democratic Front (SDF), did not participate in the March 1992 
elections.  In those elections, the President's party, CPDM, won 88 
seats; a party with strong support in Northern Cameroon, the National 
Union for Drmocracy and Progress (UNDP), won 68 seats; Cameroon's first 
political party which has strong support in coastal provinces, the Union 
of the Population of Cameroon (UPC), won 18 seats; and another Northern-
based party won 6 seats.  All of Cameroon's major political parties 
profess to support multiparty democracy and individual freedoms and 
liberties.  They are less clear and more divided on economic issues, but 
none advocate radical changes to the existing economy. 
   
  In contrast to the relatively open March 1992 National Assembly 
elections, the October 1992 Presidential Election was characterized by 
widespread irregularities.  It was highly criticized by independent 
observers and widely regarded in Cameroon as flawed.  According to 
official results, President Biya received 40 percent of the vote; the 
SDF's candidate, John Fru Ndi, received 36 percent of the vote; and the 
UNDP's candidate, Bello Bouba Maigari, received 19 percent of the vote.  
Presidential elections are next scheduled for October 1997. 
 
  The Government announced that municipal elections would be held before 
the end of 1995.  The cumbersome registration process for the elections 
has caused delays and the initial registration period has been extended.  
Several previously scheduled municipal elections have been canceled by 
the Government for administrative or security reasons. 
 
---------------------------------------- 
IV. Marketing U. S. Products and Services 
---------------------------------------- 
 
1.  DISTRIBUTION AND SALES CHANNELS 
 
  Cameroon has a population of about 12.5 million and about 35 percent 
lives in urban areas.  Douala is Cameroon's main port and industrial 
center.  Cameroon's capital city, Yaounde, is the political and 
diplomatic center of the country.  Yaounde (pop. 700,000) and Douala 
(pop. 1.8 million) contain about 30 percent of Cameroon's urban 
population and 15 percent of its total population. 
 
  Large trading firms in Cameroon are dominated by Europeans, Indians 
and Lebanese.  They have developed very efficient distribution systems 
and several have established stores and supermarkets for retail sales. 
 
  In smaller towns, retailing is controlled mainly by Nigerian and 
Cameroonian traders.  Vendors who sell their wares from rented stalls at 
the main markets of cities occupy about 35 percent of the retail jobs in 
Cameroon. 
 
  Due to Cameroon's economic crisis, hawkers are rapidly increasing 
their share of retailing activities.  They generally sell on a 
commission basis for established store owners, but some are independent 
and buy directly from wholesalers. 
 
2.  USE OF AGENTS AND DISTRIBUTORS; FINDING A PARTNER 
 
   Foreign businesses entering the Cameroonian market usually need the 
services of a local agent to get established.  It is advantageous to use 
local agents because they sell directly to wholesalers and can help new 
firms obtain market knowledge at relatively low costs.  For products 
requiring after-sales service and spare parts, the appointment of a 
distributor is recommended. 
 
  Agents and distributors must register with the Government and their 
contracts must be notarized and published in the local press.  
Department of Commerce District Offices in the U.S. offer the ADS 
Service to identify potential agents and distributors overseas.  
District Offices also offer the WTDR service to verify the bona fides of 
foreign businesses. 
 
3.  FRANCHISING 
 
  Franchising is rare in Cameroon.  Large international oil companies 
retail petroleum products through franchise dealers.  There are few, if 
any, other franchise operations in Cameroon. 
   
4.  DIRECT MARKETING 
 
  Some American firms are successfully involved in direct marketing in 
Cameroon despite the many rigors of the local business environment.   
 
5.  JOINT VENTURE/LICENSING 
 
  American investors should exercise great caution before entering into 
joint ventures or licensing arrangements in Cameroon.  The investment 
climate presents enduring high risk factors.  Several internationally 
known American products are manufactured in Cameroon under licensing 
agreements.  
 
6.  STEPS TO ESTABLISHING AN OFFICE 
 
  The Investment Code Management Unit (ICMU) was established in 1991 to 
assist foreign and domestic investors start businesses in Cameroon.  It 
provides investment authorizations and a variety of other services 
through a network of official correspondents in all relevant Ministries 
(contact Mrs. Minja, ICMU, P. O. Box 15438, Douala. Tel: 237-42-59-46  
Fax: 237-43-30-07). 
  
7.  SELLING FACTORS/TECHNIQUES 
 
  Seller's credit, such as lay-away plans, is not yet practiced in 
Cameroon.  Commercial banks offer consumption loans for large individual 
purchases.  The Embassy recommends that international transactions in 
Cameroon be conducted via guaranteed, irrevocable letters of credit.  
The Embassy does not recommend extension of credit to Cameroonian 
companies. 
 
8.  ADVERTISING AND TRADE PROMOTION 
 
  Advertising is available in Cameroon through a wide variety of mediums 
including newspapers, magazines, billboards, movie houses, radio and 
television. 
 
  Newspaper and magazine advertizing may be placed with the government-
owned daily, Cameroon Tribune, which monopolized Cameroon's print media 
for decades or with a growing number of private newspapers.  A list of 
major newspapers follows:  LE MESSAGER (French-language weekly: P. O. 
Box 5925, Douala, Cameroon. Tel: 237-42-02-39 or 42-04-39 Fax: 237-43-
04-57); LA NOUVELLE EXPRESSION (French-language weekly: P. O. Box 5646, 
Douala, Cameroon. Tel/Fax: 237-43-22-27); CAMEROON POST (English-
language weekly: P. O. Box 1981, Yaounde, Cameroon. Tel: 237-23-45-14  
Fax: 237-23-36-32  Chicago office: Mr. Tande Debussi - P. O. Box 268258, 
Chicago, Illinois - Tel/fax: 312-878-3584); THE HERALD (English-language 
biweekly: P. O. Box 3659, Messa-Yaounde. Tel: 237-31-55-22  Fax: 237-31-
81-61); CAMEROON TRIBUNE (government bilingual daily: Tel: 237-30-18-30 
or 30-16-89 or 30-06-40  Fax: 237-30-43-62). 
 
  Billboards and signs are no longer a monopoly of Cameroon Publi-
Expansion (CPE), a government-owned publicity parastatal.  Private 
advertising firms may be contacted for publicity assistance. 
 
  Advertizing via slides and short films in movie houses can be 
effective especially in Yaounde, Douala and Bafoussam, which have large 
movie-going publics. 
 
  Radio and television advertizing is available through the government-
owned CRTV which broadcasts in French and English.  Radio advertising 
may also placed through "Africa Number One", which broadcasts from Gabon 
between 5:00 am and 11:00 pm.   
 
  The only regularly scheduled trade fair in Cameroon is the yearly 
"Promo", a general trade fair organized in December each year by the 
Chamber of Commerce.  Individual companies sometimes organize 
expositions in Douala and Yaounde.  The Embassy's Economic/Commercial 
Section hosts small product shows for local agents and distributors of 
American products at the American Culture Center in Yaounde.  Trade 
inquiries from American companies are also published in the American 
Culture Center's monthly information magazine. 
 
9.  PRICING PRODUCT 
 
  Competition from established French firms is usually very tough.  The 
French have the advantages of a tied currency, local branches of French 
banks which offer commercial financing, a language link and a long 
historical presence in Cameroon.  French development assistance includes 
technical staffing at many Cameroonian Government Ministries and 
parastatals.  This expanded presence provides the French with a 
significant advantage on major projects and market intelligence.  Under 
these circumstances, the major factor in penetrating the Cameroonian 
market may be price.  Some large U. S. corporations have preferred to 
get a foothold in the Cameroonian market through their French 
subsidiaries. 
 
10.  SALES SERVICE/CUSTOMER SUPPORT 
 
  After sales service and customer support is weak to non-existence in 
Cameroon's bazaar-like market distribution system.  It would only be a 
factor in sales of major items such as airplanes, heavy equipment, 
automobiles, appliances and computers.   
 
11.  SELLING TO THE GOVERNMENT 
 
  Government procurements are made by the "Direction G?n?rale des Grands 
Travaux" (DGTC), or the Public Works Directorate which is under the 
direct supervision of the Presidency of the Republic.  Cameroonian 
national companies are granted preferential price margins and other 
preferential treatment for bids on all government procurement and 
development projects.  DGTC's calls for tender, especially when they are 
financed by the International Financial Institutions, are mailed to the 
American Embassy in Yaounde which sends them to the U. S. Department of 
Commerce for dissemination to the American business community.  
Restricted calls for tender are also addressed to the U.S. candidate by 
the Embassy. 
 
  The Government of the Republic of Cameroon has a very low credit 
rating because of its continuing inability to pay its debts.  The 
Government's direct purchases are now made through domestic middlemen 
who require cash up front on behalf of their foreign correspondents. 
 
12.  PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT 
 
  Cameroon is a founding member of the African Intellectual Property 
Organization (OAPI) and the organization's headquarters is located in 
Cameroon's capital city, Yaounde.  Registration of patents with OAPI 
would, in theory and legally, provide protection from product patent 
infringements in Cameroon.  In practice, the judiciary system is 
dysfunctional and companies may not be able to defend themselves against 
product patent infringements in Cameroon.   
 
13.  NEED FOR A LOCAL ATTORNEY 
 
  Incoming American investors should seek the services of a local 
attorney to deal with Cameroon's slow-moving, complex and corrupt legal 
system.  A list of local attorneys can be obtained from the U.S. Embassy 
in Yaounde. 
 
--------------------------------------------------- 
V.  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT 
--------------------------------------------------- 
 
  The Cameroonian market for U.S. exports is small and has averaged 
around USD 50 million per year during the past five years.  During this 
period, the largest U.S. exports to Cameroon have been wheat, wheat 
flour, oil field parts and equipment and tobacco.  U.S. exports to 
Cameroon increased during 1994 despite a 50 percent currency devaluation 
in January, 1994 which doubled the CFA price of all Cameroonian imports.  
The increase was attributable to large, individual purchases of off-
highway dumpers, tractors, trucks and a fishing vessel that may not 
reoccur in the future.  If the value of these exports are taken into 
account (USD 18.66 million), U.S. exports to Cameroon for 1994 would 
have decreased from USD 48.352 million to USD 34.933 million or by about 
28 percent. 
 
  The CFA value of Cameroonian imports increased by 62 percent in 
Calendar Year 1994 while the volume of imports increased by 14.39 
percent.  The 62 percent increase in CFA value does not cover the 
automatic 100 percent increase in the CFA value of imports that was 
caused by the January, 1994 currency devaluation.  The currency 
devaluation substantially decreased the Cameroonian economy's ability to 
purchase foreign goods.  Other than one-time purchases for equipment 
upgrades or expansions, the market for U.S. exports to Cameroon is 
likely to decline during the next two years. 
 
  The possibility of a multi-billion dollar investment to develop oil 
fields in Chad and built a oil pipeline through Cameroon, may 
dramatically increases the prospects for U.S. exports to Cameroon.  
Construction on the Cameroonian portion of the oil pipeline may begin as 
early as 1997. 
 
1.  BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES 
 
1 - OIL/GAS FIELD MACH., OIL, GAS MINERAL PROD/EXPLOR SERV. (OGM, OGS) 
 
  In June 1995, the Government and foreign oil companies announced that 
another offshore oil production platform would be constructed in the Rio 
del Rey Basin.  New incentives that the Government has granted for 
exploration and marginal field production may spur additional 
exploration and production activities in Cameroon during the next three 
years. 
 
E.  IMPORTS FROM THE U.S. (OGM)   1994  USD 4.8 MILLION 
                                  1995     N/A 
                                  1996     N/A 
 
2 - TRUCKS, TRAILERS/BUSES (TRK)    
 
  Rapid expansion of timber operations in Cameroon should increase the 
market for heavy duty trucks and trailers.  The market has been 
dominated by European manufacturers, but new entrants to the industry 
may be willing to try new and used American trucks and trailers if the 
price is right.  Cameroon imported USD 10 million of U.S. manufactured 
dumpers designed for off-highway use in 1994. 
 
E.  IMPORTS FROM THE U.S. (TRK)   1994   USD 11.6 MILLION     
                                  1995    N/A 
                                  1996    N/A  
 
3 -  AGRICULTURAL CHEMICALS (AGC) 
 
  Cameroon lifted most restriction on the marketing of coffee and cocoa 
during 1994 and world market prices for these commodities have been 
relatively favorable.  Coffee and cocoa farmers in Cameroon have 
rehabilitated existing plantations and planted new orchards.  Production 
increases are also planned for other cash crops in Cameroon such as 
bananas, palm oil, pineapples and rubber.  The market for fertilizer and 
insecticides should increase substantially during the next three years.  
European and Asian exporters have dominated these markets in the past, 
but price-competitive American products may be able to enter the market. 
 
E.  IMPORTS FROM THE U.S. (AGC)  1994  USD 409,000 
                                 1995    N/A 
                                 1996    N/A 
 
4 - TEXTILE PRODUCTS - MADE-UP (TXP) 
 
  The small market for U.S. exports of used clothing in Cameroon has 
increased dramatically during the past four years.  U.S. exports for 
1991 were USD 140,000.  In 1994, U.S. exports of used clothing totalled 
USD 636,000.  Due to the economic downturn, the market for used clothing 
and footwear in Cameroonian is growing rapidly.   
 
E.  IMPORTS FROM THE U.S. (TXP)  1994  USD 636,000 
                                 1995    N/A 
                                 1996    N/A 
 
2.  BEST PROSPECTS FOR AGRICULTURAL PRODUCTS 
 
1 - WHEAT 
 
  Cameroon has three major flour mills.  One uses American wheat and the 
other two use European wheat or a mixture of American and European 
wheat.  The American wheat has a higher yield and it is currently price 
competitive.  One of the mills recently requested price quotations for 
American wheat and, if current price conditions persist, all three mills 
may switch to American wheat.  U.S. wheat exports to Cameroon for 1992 
were USD 6.7 million, for 1993 USD 14.6 million, and for 1994 USD 6.6 
million.  The decline in 1994 was caused by price competition from 
European wheat and the unexpected arrival of large quantities of 
subsidized European flour on the market.  Larger duties were imposed on 
flour and, due to depreciation of the US dollar, American wheat is now 
price competitive. 
 
E.  IMPORTS FROM THE U.S.   1994   USD 6.6 MILLION 
                            1995     N/A 
                            1996     N/A 
 
2 - TOBACCO 
 
  One of Cameroon's two cigarette manufacturing companies switched to 
American tobacco suppliers in 1993.  The company imported USD 4.9 
million of tobacco, not stemmed/stripped in 1993 and USD 4.2 million in 
1994.  The company plans to inaugurate a large tobacco processing and 
cutting factory in late 1995.  It eventually hopes to use a large 
percentage of Cameroonian tobacco for its cigarettes, but will continue 
to import substantial quantities of American tobacco during the next 
three years. 
 
E.  IMPORTS FROM THE U.S.   1994   USD  4.2 MILLION 
                            1995      N/A 
                            1996      N/A 
 
NOTE:  The only statistical information that is available for the Best 
Prospects Data Table is "Imports from the U.S."  The above statistics 
are unofficial estimates. 
 
3.  SIGNIFICANT INVESTMENT OPPORTUNITIES 
 
  The Cameroonian Government has committed to an aggresive program of 
privatization of public sector industries.  This will offer U.S. firms 
an opportunity to bid on World Bank-sponsored studies on privatization 
of specific industries.  Eventually, U.S. firms may submit purchase bids 
on the public enterprises that are scheduled to be privatized. 
 
  In FY 95/96, a successful rubber company is scheduled to be 
privatized.  The national airlines, a ship and container company and, 
eventually, the national railroad are also scheduled to be privatized.  
A major study of the public sector communications industry is scheduled 
to be put out for bids in the second half of 1995.  American companies 
should be particularly well placed to bid on this contract.  
 
----------------------------------- 
VI. TRADE REGULATIONS AND STANDARDS 
----------------------------------- 
 
1.  TRADE BARRIERS, INCLUDING TARIFFS, NON-TARIFF BARRIERS AND IMPORT 
TAXES 
 
    In January, 1995 Cameroon became the first state of the six-member 
Central African Customs Union (UDEAC) to implement a new UDEAC customs 
code.  The new code eliminates all quantitative restrictions on external 
trade, reduces the number of taxes applied to imports from over seven to 
four; reduces the overall rate from a maximum 200 percent to a maximum 
70 percent on the most heavily-taxed imports, and simplifies custom's 
assessments.  Rampant customs corruption at Douala port has continued 
unchecked in the months since the new code was implemented.  A durable, 
stable UDEAC customs code may ultimately emerge only in the year 2000. 
 
2.  CUSTOMS VALUATION 
 
  Customs taxes in Cameroon are levied on the CAF (cost and freight) 
value of the imported goods.  Customs fraud is endemic in Cameroon and 
protracted negotiations with customs officers over the value of imported 
goods are common.  The prevailing practice, however, is to include the 
cost of freight to Douala for the purpose of determining the value of 
goods that are subject to import tariffs.  
 
3.  IMPORT LICENSING 
 
  Import licensing has recently been simplified.  Whereas in the past a 
prospective importer was obliged to obtain both an "agr?ment" and a 
"license" in order to import, only the "agr?ment" is currently required.  
The "agr?ment" is a general import license delivered to registered 
businesses for a duration of two years, renewable, to cover any item 
that the importer may choose.  Special permits are granted to 
individuals who desire to import such items as cars for personal use.  
Contractors importing equipment and supplies related to public contracts 
can obtain a special tax free exception from the Ministry of Finance. 
 
4.  EXPORT CONTROLS 
 
  The Government of the Republic of Cameroon eliminated its most onerous 
export licensing requirement as of July 1, 1994 by deregulating the 
export of cocoa, coffee and cotton.  Coffee and cocoa exports must still 
obtain a quality grade certification from the Coffee and Cocoa Board 
prior to exportation.  Licenses are also required for "strategic" 
products such as gold, diamonds, petroleum and other hydrocarbons.  They 
are also required for ecologically-sensitive items such as live animals, 
birds and medicinal plants (governed by the CITES Convention). 
 
5.  IMPORT/EXPORT DOCUMENTATION 
 
  Cameroonian customs officials require a commercial invoice and a bill 
of lading (or air waybill) for all goods entering the country.  Shipping 
marks and numbers on bills of lading should correspond exactly with 
those on the invoices and on the goods.  Three copies of invoices are 
requested for surface shipments and four copies for air shipments. 
 
  In addition, the Cameroonian importer has to present an import 
license, permit or exception.  Documentation on bank transactions 
concerning the specific delivery is required only if the value of the 
imported goods is over two million CFA francs. 
 
  Sanitary certificates, delivered by the appropriate authority in the 
country of origin, are also required for certain imports such as used 
clothing. 
 
6.  TEMPORARY ENTRY 
 
  Temporary admission has been scaled down to include only a few large 
importers wishing to sell on the Cameroonian market.  A maximum of one 
year is allowed for storage, and a security bond is usually required.  
Storage fees are assessed from the date of landing.  The importer pays 
customs duties on each batch of goods removed from storage until the 
entire stock is cleared.  The Government provides warehouses for 
temporary admission.  Some large importers and freight forwarding 
companies also operate government supervised warehouses for temporary 
admission. 
 
  Goods on transit to landlocked Chad and the Central African Republic 
are stored in the freight forwarder's warehouse and an amount equal to 
the value of assessed import tax is held by customs as a guarantee.  The 
guarantee is released when the goods are removed from the warehouse for 
onward delivery to their destinations.  
 
7.  LABELING, MARKING REQUIREMENTS   
 
  Labeling and packaging requirements have been eliminated from 
Cameroon's trade regulations. 
 
8.  PROHIBITED IMPORTS 
 
  Prohibited imports include specific sanitary products, chemicals, 
toxic waste, cosmetics, and food items.  The list of prohibited imports 
can be modified whenever a new item is identified for exclusion.  A 
complete list of prohibited imports is included in the new General Trade 
Schedule (GTS) that is now available for public distribution.  American 
companies may obtain a copy of the GTS from the American Embassy's 
Economic/Commercial Section in Yaounde (see Section E for address) or 
from the Cameroonian Embassy in Washington, 
D. C. 
 
9.  STANDARDS 
 
  The Department of Price Control, Weights and Measures is responsible 
for standards administration in Cameroon, but its impact has so far been 
felt mainly in the area of price control. 
 
  The metric system is the official standard of weights and measures.  
The standard electric current used in Cameroon is A.C., 50 cycles, 220-
240 volts, but there are regional variations to that norm.  Television 
operates on the PAL standard. 
 
  Cameroon is transforming its telecommunications system from analog to 
digital technology.  A cellular phone service was launched in July 1993 
to cover a limited geographical area.  It operates on the GSM standard. 
 
  While both English and French are official languages in Cameroon, 
French is essential to successful business transactions.  The English-
speaking part of the country represents only 20 percent of the 
population. 
 
10.  FREE TRADE ZONES/WAREHOUSES 
 
  Cameroon's Industrial Free Zone (IFZ) regime is production and export 
oriented.  Only 20 percent of goods produced in the zone can be sold on 
the Cameroonian market. 
 
11.  SPECIAL IMPORT PROVISIONS 
 
  A pre-shipment inspection certificate, the Bill of Clean Findings, 
delivered by Geneva-based Soci?t? G?n?rale de Surveillance (SGS), is 
required for shipments valued over two million CFA francs (FOB).  The 
SGS, which verifies the quantity, quality and pricing of Cameroonian 
imports, is headquartered at SGS Control Services Inc, 42 Broadway, New 
York, New York 10004 (212/482-8700; Fax: 212/224-9122).  A list of SGS 
field offices in the United States can be obtained from this office. 
 
12.  MEMBERSHIP IN FREE TRADE ARRANGEMENTS 
 
  Cameroon belongs to all multilateral free trade arrangements except 
for the ATA Carnets Convention. 
 
----------------------- 
VII. INVESTMENT CLIMATE 
----------------------- 
 
  Cameroon's policies, as defined in law, meet all necessary elements of 
an open investment regime.  However, current practice does not permit a 
fair, transparent and impartial implementation of the country's laws. 
 
 
  Foreign and domestic investors are provided with guarantees that 
substantially comply with international norms.  Cameroonian law does not 
discriminate between nationals and foreigners and does not force local 
ownership.  Legally, both foreign and domestic firms compete under the 
same rules.  In practice, Cameroonian courts and administrative agencies 
grant preferential treatment to domestic firms.  
 
  Cameroon's regulatory environment has improved during the past two 
years.  Price controls were lifted in July, 1994 with the exception of 
pharmaceuticals, petroleum products and goods and services produced by 
public monopolies.  The new Labor Code makes the employer-employee 
relationship more flexible.  The decrees necessary to implement it were 
completed in 1993, but remain open to legal interpretation.  Labor 
disputes are common. 
 
  Quantitative restrictions on imports, non-tariff protections, and many 
import licensing requirements were lifted when the new regional tariff 
code was enacted in January, 1994.  Most export licensing requirements 
were removed in July, 1994 when the Government liberalized the 
coffee/cocoa market.  Although quality grade certifications must be 
obtained prior to exportations, most other restrictions were lifted. 
 
  Cameroon has taken many initiatives to attract foreign investors to 
the country.  The Investment Code, enacted in 1990, was designed to 
attract greenfield investments.  The new code makes investment in the 
country simpler and more attractive.  The code offers attractive 
financial incentives in exchange for minimal eligibility/performance 
requirements. 
 
  Under the Investment Code, there are no requirements for technology 
transfer, and no requirements to locate at specific geographical areas; 
investments are not screened; and foreign exchange privileges are not 
rationed.    Investors can transfer dividends, return of capital, 
interest and capital on foreign debt, lease payments, royalties and 
management fees, returns on liquidation etc.  The Ministry of Finance 
routinely authorizes such business remittances.   
 
  Of the five investment regimes available in the Code, the Industrial 
Free Zone (IFZ) regime is the most attractive.  It creates conditions 
for the IFZ investor to operate virtually outside of the jurisdiction of 
the country's established legal and regulatory systems. 
 
  Registration of intellectual property rights is available in Cameroon 
through national and regional institutions which cooperate with 
international property rights organizations.  Cameroon is headquarters 
for the African Organization of Intellectual Property (OAPI) which 
registers patents for Cameroon and other member countries.    
 
  Despite Cameroon's attractive investment code and the favorable laws 
for private enterprise, very few foreign investors have started 
operations in the country, and domestic investors are still restrained 
in their investment plans.  Arbitrariness in GRC decision-making 
continues to create an atmosphere of insecurity for investors.  The lack 
of consistency in the enforcement of regulations and the regular 
occurrence of cases of outright disregard for the law, have discouraged 
potential investors and forced many existing companies to close 
operations and leave the country.  The judiciary system is dysfunctional 
and arbitrary.  Under the current climate, it is difficult to enforce 
contract rights, protect property rights or defend oneself against 
frivolous lawsuits in Cameroon. 
 
A1. OPENNESS TO FOREIGN INVESTMENT 
 
  The major law governing investments in Cameroon is the Investment 
Code, enacted in 1990.  The Code seeks to attract mainly greenfield 
investments.  Under this code, investment incentives are identical for 
foreign and domestic investors.   
 
  The Code creates an Investment Code Management Unit (ICMU), a "one-
stop-shop" for investment approval and dispute resolution.  This 
replaces  previous procedures which required investors to seek approvals 
and permits from, sometimes, dozens of ministries and agencies. 
 
  The Code provides 14 key guarantees to investors, including property 
ownership, ability to repatriate capital and income, prior compensation 
in case of expropriation, freedom of movement within Cameroon, free exit 
for personnel, and protection from non-commercial risk as per the 
Multilateral Investment Guarantee Agency's Treaty with Cameroon. 
 
  The Code also provides for dispute resolution.  At the time of 
incorporation or application for investment code benefits, a firm may 
opt for one of the various procedures to settle future conflicts. 
 
  General benefits of the Investment Code are available to all new and 
existing enterprises in Cameroon which process goods for export or use 
inputs from the local or regional (UDEAC) market.  There are no other 
eligibility requirements to acquire the general benefits. 
 
  In addition to these general benefits, firms may qualify for one of 
five special investment regimes which offer more advantages.  The five 
are:  (1) the Basic Regime; (2) the Small and Medium-Size Enterprise 
Regime; (3) the Strategic Enterprise Regime; (4) the Reinvestment Regime 
and (5) the Free Zone Regime.  The Code sets out in detail the specific 
criteria a firm must meet to qualify for the regimes as well as the 
benefits provided under each. 
 
  The outstanding feature of the Code is the Industrial Free Zone Regime 
(IFZ).  It was promulgated into law through a special Presidential 
decree in 1990.  It began operation in 1992. 
 
  To qualify for IFZ status, a firm must produce goods or services that 
are 80 percent export-bound and which do not have deleterious effects on 
the environment.  These are the only eligibility requirements for the 
IFZ regime. 
 
  Qualifying IFZ firms receive a 10-year holiday on taxes and are 
subject only to a flat tax of 15 percent on corporate profits beginning 
in the eleventh year.  They have a right to tax-free repatriation of all 
funds earned and invested in Cameroon, and are exempt from foreign 
exchange regulations.  They are exempt also from existing and future 
customs duties and taxes and from all taxes related to locally purchased 
inputs to production.  The FY 95/96 Finance Law contains provisions 
which will require firms with IFZ status to pay import taxes on some 
categories of goods.   
 
    Cameroon has no securities market.  Mergers and take-overs are, 
therefore, undertaken discreetly through negotiations.   
 
  Foreign investment is not screened, and foreign equity ownership is 
only subject to limitation in the Small and Medium Size Enterprise 
Regime of the Investment Code where 35 percent domestic participation is 
mandated. 
 
  Foreign participation in government-financed and/or subsidized 
research and development programs is restricted to programs which are 
beyond the technical capacity of Cameroonian firms.  Programs financed 
jointly by International Financial Institutions and the Government are 
open to unrestricted competition. 
 
  Cameroon grants public sector monopolies for petroleum, energy, water, 
telecommunications, aluminum and cotton.  Foreign firms may not invest 
directly in ventures defined as "strategic" by the Government of 
Cameroon, but they may provide equipment and services to the parastatals 
that has jurisdiction over the activity.   
 
(A2). CONVERSION AND TRANSFER POLICIES 
 
  The CFA franc (F CFA), the currency which Cameroon shares with 
thirteen other African member states of the franc zone, was devalued by 
50 percent from a fixed parity of 50 F CFA to the French franc to a 
fixed parity of 100 F CFA to one French franc in January, 1994.  The 
foreign exchange value of the F CFA is guaranteed by the Government of 
France.  The French Treasury ensures the exchange of F CFA into French 
francs at the fixed parity rate.  Since devaluation there has been no 
queuing for foreign exchange in Cameroon. 
 
  The Bank of France no longer purchases CFA notes abroad. Travellers 
from Cameroon are allowed to carry a maximum of F CFA 20,000 out of the 
country without prior authorization.  Travellers checks can be drawn on 
any available foreign currency but the Ministry of Finance authorizes 
such purchases.  No ceilings have yet been placed on how much foreign 
currency can be purchased per trip. 
 
  The authorization of the Ministry of Finance is required for foreign 
exchange business transfers.  These authorizations are routinely granted 
if they are in conformity with the specified incentives of the 
investment and fiscal codes.  Dividends, return of capital, interest and 
principal on foreign debt, lease payments, royalties and management 
fees, returns on liquidation etc, can all be remitted abroad.  It takes 
an average of 12 days to obtain a foreign exchange transfer 
authorization. 
 
    The Embassy currently (7/95) purchases the CFA at a six-month 
average rate of 502 F CFA to the dollar.  A devaluation of the CFA is 
unlikely during the next 12 months. 
 
(A3). EXPROPRIATION AND COMPENSATION 
 
  Foreign and domestic investors are provided extensive legal guarantees 
that substantially comply with international norms, including full and 
prior compensation, in the event of expropriation. 
 
  In practice, however, the Embassy is aware of one case in which an 
American firm received compensation, without interest, seven years after 
the expropriation.  Also, the GRC has not yet paid compensation for a 
piece of American Embassy land that it expropriated 12 years ago.  It is 
not uncommon for the Government to delay compensation for as long as 19 
years after expropriation, especially in the case of Cameroonian farmers 
displaced for development projects. 
 
  Expropriation is usually undertaken for the public interest.  
Undeveloped land holdings are more at risk for expropriation than 
developed property.  Cameroonian laws does not require local ownership 
of land.  There is no clear and proven tendency of the GRC to 
discriminate against American interests in the case of expropriation.  
There are no confiscatory tax regimes and laws which can be considered 
as a threat to American investments.   
 
(A4). DISPUTE SETTLEMENT 
 
  Disputes involving foreign companies and their Cameroonian partners 
are commonplace in Cameroon.  In many cases, the Cameroonian partner 
takes over either the shares of the foreign partner or simply seizes 
control of the joint venture through unorthodox methods.  Cameroonian 
businesses routinely exert, or attempt to exert, political pressure on 
the courts.  During 1995, two American companies decided to close 
operations and leave Cameroon after being defrauded by their business 
partners and harassed by the courts and administrative authorities.  A 
third American company that has made a medium-sized investment is 
encountering financial difficulties because of irregular court actions 
against it.  Office furniture and a vehicle were temporarily seized from 
a major American investor in Cameroon due to a legal dispute with a 
former employee.  Prior business disputes may have been the reason that 
an armed gang attacked the home of the manager of a major foreign 
company and engaged in a shoot-out with him.  An American non-
governmental organization was closed temporarily when its bank account 
and inventories were seized due to a court battle with one of its sub-
contractors.  A mob beat the employees of one international development 
organization and temporarily held them hostage to force resolution of 
pending labor disputes.  Cameroonian bailiffs even seized diplomatic 
vehicles from the U.S. Agency for International Development to satisfy a 
judgment in a commercial dispute.  The vehicles were entitled to 
protection from any interference by the Cameroonian Government or 
judiciary by a bilateral treaty and the Vienna Convention.  Most foreign 
companies claim that judgments were obtained against them fraudulently 
or as the result of frivolous lawsuits.  
 
  Cameroon's judiciary remains effectively controlled by the Executive 
Branch.  Firms have difficulties obtaining a fair and expeditious 
hearing before the courts.  It is very difficult and costly to enforce 
contract rights in Cameroon.  Property rights are ill-defined and 
inadequately protected in important respects, especially with respect to 
land tenure.  Corruption within the judiciary system is widespread and 
unchecked.  The execution of judgements is slow and fraught with 
administrative and legal bottlenecks. 
 
  Judgements of foreign courts are executed in Cameroon via a procedure 
which requires a Cameroonian judge to issue a court order that serves as 
the basis for the execution of the foreign judgement. 
 
  Cameroon's bankruptcy law is an integral part of its commercial law.  
In case of bankruptcy, creditors are not covered except by way of 
negotiable or enforceable guarantee instruments held by the creditor.  
The concept of mortgage (or "hypoth?que" in French) exists in 
Cameroonian law, and the "titre foncier" is the legal instrument for 
registering such security interests. 
 
  Cameroon is a member of the International Center for the settlement of 
investment disputes and is a signatory to the Convention on the 
Recognition and Enforcement of Foreign Arbitral Awards.  It accepts 
binding international arbitration of investment disputes between foreign 
investors and the State. 
 
(A5). PERFORMANCE REQUIREMENTS/INCENTIVES 
 
  Cameroon's 1990 Investment Code establishes requirements for 
Cameroonian equity ownership for enterprises under the Small and Medium-
Size Enterprise (SME) regime.  For SME companies at least 35 percent of 
the equity must be held by a Cameroonian company.  Even in this case, 
foreign investors are not required to reduce their shares over time.  
There is no foreign exchange rationing, no requirement to locate at 
specific geographical areas, no requirements for technology transfer, 
and foreign investors may seek local financing for investment purposes. 
 
  The Investment Code has general employment requirements per amount of 
invested capital.  It also links benefits and incentives to the volume 
of exported goods and to the use of inputs purchased from the local or 
UDEAC (Central African Customs Union) markets. 
 
  Each of the five special regimes of the Code has its own specific 
eligibility/performance requirements and accompanying benefits.  Such 
benefits vary in duration from three to twelve years depending on the 
regime, and on whether the investment is classified "start-up" or 
"operational". 
 
    Quantitative restrictions on imports and price controls have been 
abolished for most goods.  They have been maintained on "strategic" 
goods and services such as electricity, water, public transportation 
(road and rail), telecommunications, cooking gas, petroleum products 
(excluding lubricants), drugs and medicines, school books, and port-side 
activities (stevedoring etc). 
 
  The procedures for enforcement of performance requirements of the 
Investment Code are not clearly defined.  The Government has not made 
any public statements concerning performance requirements.   
 
(A6). RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT 
 
  The right of private ownership is recognized in Cameroon, but is 
limited in practice by a dysfunctional and arbitrary judiciary, 
inadequate definitions of property rights, and corruption and 
arbitrariness in government decision-making. 
 
  In the past, the GRC required some foreign and domestic businesses to 
prepay taxes significantly in advance.  Private publishing firms, which 
compete with GRC-owned publications, have been subjected to repeated 
human rights abuses and arbitrary government-imposed price increases for 
printing materials.  Searches and seizures of business as well as 
personal property by police and other governmental authorities are 
common.  The Government also routinely orders closures of businesses for 
alleged tax evasion or other offenses. 
 
  Within the limits of these aberrations, foreign and domestic 
individuals and firms are legally entitled to establish and own firms, 
engage in remunerative activities, and establish acquire and dispose of 
interests in business enterprises. 
 
  Under Cameroonian law, foreign and domestic entrepreneurs compete 
under the same rules.  In practice, Cameroonian courts and 
administrative agencies grant preferences to domestic firms.  The law 
also permits investors to dispose of their property via sale, transfer 
or physical repatriation of moveable property.   
 
(A7). PROTECTION OF PROPERTY RIGHTS 
 
  Cameroon is the headquarters for the 14-nation West African 
intellectual property organization, "Organisation Africaine de la 
Propri?t? Intellectuelle" (OAPI).  OAPI is a member of the World 
Intellectual Property Organization.  In cooperations with member states, 
OAPI offers registration for patents and trademarks.  Cameroon is also a 
party to the Paris Convention on Industrial Property and the Universal 
Copyright Convention. 
 
  Patents in Cameroon have an initial validity of ten years.  They can 
be renewed every five years upon submission of proof that the patent was 
used in at least one of the 14 member countries of the OAPI.  In the 
absence of use, compulsory licensing is possible after three years.  
 
  Trademark protection is initially valid for 20 years with renewal 
possibilities every 10 years.  Trademark enforcement in Cameroon is weak 
due to the small size of the domestic market and the costs of 
enforcement. 
 
  A licensed copyright company, SOCINADA, registers copyrights for all 
types of publications, including music, books and periodicals, 
paintings, theatrical productions etc.  SOCINADA cooperates with 
copyright protection agencies in other countries.   
 
(A8). REGULATORY SYSTEM: LAWS AND PROCEDURES 
 
  A new and more liberal labor code, passed in mid-1992, relaxes 
conditions for wage-setting, hiring and firing.  Other sectoral reform 
also have been made.  The role of the Coffee and Cocoa Marketing Board 
has been reduced to providing quality grade certification and 
international market price information to farmers and exporters.  New 
and more liberal regulatory and profit sharing regimes governing oil 
exploration and production are in place.  They have stimulated a revival 
of offshore exploration and the proposed construction of a new offshore 
oil production platform.  A new forestry code makes incremental progress 
toward a more rational exploitation of Cameroon's rich forest resources.  
Under Cameroon's economic structural adjustment programs, further 
reforms have been proposed in the forestry, banking, telecommunications 
and transportation sectors. 
 
  This improving regulatory environment is not producing the desired 
results due to inadequate enforcement.  Implementation would be greatly 
improved, if the Government would take the necessary measures to combat 
endemic corruption at customs, in the courts and in regulatory agencies. 
 
(A9). EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENTS 
 
    There are no liquid securities markets in Cameroon.  Interest rates 
are set by the Central Bank (BEAC) which is monitored closed and 
regulated by the French Government.  Foreign investors are able to 
obtain credit on the local market, but usually borrow offshore due to 
high interest rates. 
 
  Cameroon's legal and regulatory systems are inefficient and arbitrary.  
Cameroon has not yet established a regulatory system to protect and 
encourage portfolio investments. 
 
  The total assets of the five largest Cameroonian banks was estimated 
at F CFA 453.2 billion as of June 30, 1993.  This estimate had not been 
discounted for default risks.  Nine commercial banks have merged, closed 
or been liquidated since 1989.  As of late 1993, about 40 percent of the 
banking sector's assets was non-performing. 
 
  Private firms are free to associate with any partner they choose and 
in whatever percentage participation they negotiate with such partners.  
Companies are also free to organize into industry associations. 
 
  Portfolio investments face very high risks in Cameroon.  On a number 
of occasions, Cameroonian partners of foreign firms have attempted to 
take over the operations of local companies via court action or through 
harassment and intimidation by government officials.   
 
(A10). POLITICAL VIOLENCE 
 
  A six-month-long civil disobedience campaign in 1991 caused 
considerable property damage and many deaths and injuries throughout the 
country.  Political violence also broke out after the 1992 presidential 
election.  There were many irregularities during the election and its 
validity was questioned by the Washington-based National Democratic 
Institute and the European Community.  Fortunately, American investments 
have not yet been affected by political violence in Cameroon. 
 
  There have been few incidents of civil disturbance or violence during 
the past two years.  Opposition parties remain bitterly dissatisfied, 
however, with the slow pace of government initiatives for constitutional 
reform, municipal elections and liberalization of the press and media.  
The threat of political violence continues to be a factor in Cameroon 
because many political groups in the English-speaking minority advocate 
a return to the Anglophone/Francophone federations that was abrogated in 
1972 or outright secession.  These options are unacceptable to the 
Government.  Large demonstrations in favor of federation or succession 
were held in the two Anglophone provinces in June, 1995. 
 
  Cameroon's perennial border problems with neighboring Nigeria turned 
violent at the beginning of 1994.  The armies of both countries remain 
mobilized in the disputed Bakassi Peninsula.  On rare occasions, 
tensions break into fire fights  which have caused deaths and injuries.  
The dispute has been submitted to the International Court of Justice for 
resolution, and both countries have pledged to honor the Court's 
decision. 
 
B.  BILATERAL INVESTMENT AGREEMENTS 
 
  Cameroon has bilateral investment and/or commercial agreements with 
the following countries:  Austria, Belgium, Canada, China, Denmark, 
France, Germany, Greece, Italy, Japan, Russia, South Korea, Spain, 
Switzerland, the United Kingdom, and the United States.  Similar 
bilateral agreements also exist with many other countries in Africa, 
Asia, Latin America, and Eastern Europe.  The bilateral investment 
agreement between Cameroon and the United States was ratified and 
entered into force in 1989. 
 
C. OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS 
 
  The U. S. government signed an investment guarantee agreement with 
Cameroon in 1967.  OPIC has been receptive to American firms seeking 
war, expropriation and inconvertibility insurance in Cameroon.   
 
D. LABOR AVAILABILITY 
 
  Cameroon has a high literacy rate (65 percent) and offers a relatively 
well educated labor force.  There is a large surplus of unskilled and 
non-technical labor.  Due to inadequate mechanical and technical 
training, some industries have experienced difficulties recruiting 
skilled labor on the domestic market. 
 
  Cameroon's new labor code was enacted in 1992.  It restores collective 
bargaining and employee-employer primacy in the negotiation of wages; 
eliminates fixed zonal wage scales; abolishes employment by level of 
education; eliminates government control over layoffs and firings; and 
reduces government involvement in the management of labor unions.  The 
effect that the new code will have on employer/employee relations can 
not yet be determined, but it provides a legal framework for emergence 
of a flexible and efficient labor market. 
 
E.  FOREIGN TRADE ZONES/FREE PORTS 
 
  There are no duty-free import zones in Cameroon.  Duty-free imports 
are limited to equipment and materials imported for the manufacturing of 
exports under the IFZ regime, and to equipment and materials imported 
for the execution of public contracts. 
 
F.  CAPITAL OUTFLOW POLICY 
 
  Cameroon does not encourage the export of capital.  It does not have a 
policy on Cameroonian investments in foreign countries.  Most 
Cameroonian capital abroad is probably in European financial 
institutions and/or real estate. 
 
G.  FOREIGN DIRECT INVESTMENT STATISTICS 
 
  A comprehensive list of foreign investments in Cameroon, with 
estimates of current values, has not been compiled by the Government or 
the Chamber of Commerce.   
 
---------------------------------- 
VIII.  TRADE AND PROJECT FINANCING 
---------------------------------- 
 
1.  BRIEF DESCRIPTION OF THE BANKING SYSTEM 
 
  Cameroon's banking system is controlled by the Banque des Etats de 
l'Afrique Centrale (BEAC), a common central bank serving five other 
member countries of the Central African (UDEAC) subregion.  BEAC is 
monitored closely and regulated by the French Treasury. 
 
  Like all other signatories to a 1948 agreement setting up the franc 
zone, Cameroon is obliged to hold at least 65 percent of its foreign 
reserves in an "operational account" (or "compte d'operation") that is 
supervised and managed in Paris, France, by the French Treasury.  This 
account is the principal means by which France guarantees the exchange 
of the F CFA into French francs at a fixed exchange rate (1 F F = 100 F 
CFA). 
 
  Lending and borrowing base rates are set by the BEAC, and banking 
institution are not allowed to lend below the floor rate, except by 
derogation of Parliament.   
 
  Despite a system-wide restructuring exercise carried out in 1989-1992, 
Cameroon's banking system has liabilities substantially in excess of any 
realistic valuation of its assets.  The International Bank of Africa in 
Cameroon was liquidated in 1994.  After the bankruptcy of its major 
stockholder, the Meridien BIAO Cameroon Bank was forced to limit deposit 
withdrawals and reduce operating hours during mid-1995.  Nine commercial 
banks in Cameroon have been merged, liquidated or closed since 1989.      
 
  In 1993, member states of BEAC created a supervisory authority over 
all banking and finance institutions in the "Union Douaniere et 
Economique de l'Afrique Centrale" (UDEAC) subregion and granted it 
extensive powers to discipline delinquent institutions.  The authority, 
COBAC (Commission Bancaire de l'Afrique Centrale), has already withdrawn 
the license of Cameroon's only investment bank. 
 
  Cameroon's banking system is currently made up of seven full-service 
commercial banks.  Previously, these banks were obliged to hold non-
interest-bearing government bonds equivalent to 10 percent of their 
assets.  GRC arrears on these bonds have been consolidated at BEAC.  
Commercial banks are no longer required to purchase new government 
bonds.   
 
2.  FOREIGN EXCHANGE CONTROLS AFFECTING TRADING 
 
  Foreign exchange controls exist in Cameroon primarily for statistical 
purposes and to enable the Ministry of Finance to certify that 
remittances conform with established regulations.  Authorizations for 
foreign transfers are routinely granted.  Foreign exchange rationing is 
not practiced in Cameroon. 
 
3.  HOW TO FINANCE EXPORTS / METHODS OF PAYMENT 
 
   The Government does not have an EXIM Bank-type program to finance 
Cameroonian exports.  Importers and exporters use internationally 
accepted methods of settlement.  Transactions are most frequently 
settled through guaranteed, irrevocable letters of credit.  The Embassy 
does not recommend extension of credit to Cameroonian companies.  EXIM 
Bank suspended lending to Cameroon in 1992 and rescheduled a substantial 
part of the country's payment arrears. 
 
4.  TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE 
   
  Foreign investors can obtain local financing for investment and trade 
purposes at non-discriminatory terms.  However, as a result of 
Cameroon's comparatively high interest rates, most investors prefer to 
borrow from foreign sources. 
 
5.  PROJECT FINANCING AVAILABLE 
 
  Multilateral financial institutions have been active in project 
financing in Cameroon.  The World Bank and its affiliate, the 
International Finance Corporation (IFC), have offices in Cameroon.  
These institutions, and the African Development Bank, have financed 
projects in the public and private sectors including agricultural and 
industrial projects. 
 
6.  LIST OF BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS 
 
  Following are Cameroon's seven commercial banks and their U. S. 
correspondents: 
 
1.  Banque Internationale pour le Commerce et l'Industrie (BICIC):  
French American Banking Corporation, New York. 
 
2.  Societe Camerounaise de Banque-Credit Lyonnais (SCB-CL): Credit 
Lyonnais, New York. 
 
3.  Societe Generale de Banque au Cameroun (SGBC):  Societe Generale, 
New York. 
 
4.  Standard Chartered Bank:  Standard Chartered Bank, New York. 
 
5.  Credit Agricole du Cameroun (CAC):  D. J. Bank, New York. 
 
6.  Caisse Commune d'Epargne et d'Investissement (CCEI):  Republic 
National Bank, New York, and Citibank, New York. 
 
7.  Amity Bank, Citibank, New York, and Bankers Trust, New York. 
 
-------------------- 
IX.  BUSINESS TRAVEL 
-------------------- 
 
1.  BUSINESS CUSTOMS 
 
  Although Cameroon has the largest private sector in French-speaking 
Sub-Saharan Africa, its business community does not yet have an 
established pattern of behavior.  Cameroonians appreciate an opportunity 
to "get to know" a potential partner before beginning concrete 
discussions.  It is helpful in Cameroon to supplement written 
communications with as many face-to-face encounters as possible.  
Patience and persistence are needed to do business in Cameroon. 
 
2.  TRAVEL ADVISORY AND VISA 
 
  Visas and return tickets are required for entry into Cameroon.  Visas 
can be obtained from the Cameroonian Embassy in the U. S. at 2349 
Massachusetts Ave. N. W., Washington, D. C. 20008 (202-265-8790) and 
from the Embassy in France at 17 bis, Rue Longchamps, Paris 750016.  
Visitors who arrive without a visa may be sent out of the country on the 
next available flight, especially if they are coming from a country 
where there is a Cameroonian Embassy.  For passengers arriving from 
countries without Cameroonian diplomatic representation, airport visas 
are available.  Cameroonian visas may be obtained at the following 
locations on the African continent: Bangui, Abidjan, Libreville, Lagos, 
Calabar, Brazzaville, Malabo, Bata, Kinshasa, Cairo, Addis Ababa, Dakar, 
Rabat, Ndjamena, and Monrovia.  In addition to Paris, there are 
Cameroonian missions in several European cities, including Marseilles, 
London, Geneva, Bonn, Brussels, Madrid, Rome, Moscow, and The Hague.  In 
East Asia, there are missions in Beijing and Tokyo.  In the Middle East 
visas can be obtained in Riyad and Djeddah.  In the Americas, 
Cameroonian missions exist in Ottawa and Brasilia and in Washington, D. 
C. 
 
  All visitors entering Cameroon are required to present a valid 
international health certificate including inoculation against yellow 
fever.  The certificate must be presented upon arrival to and departure 
from Cameroon. 
 
  American companies considering travel to Cameroon are urged to consult 
the Department of States's latest Consular Information Sheet (CIS) for 
Cameroon.  The CIS, which is updated periodically, may be obtained by 
calling the State Department's Citizen's Emergency Center at (202) 647-
5225 or 647-0900.  American citizens in Cameroon are urged to register 
with the Consular Section of the American Embassy in Yaounde. 
 
3. HOLIDAYS 
 
  The following Cameroonian national holidays are scheduled on fixed, 
predictable, calendar days:  January 1 (New Year's Day), February 11 
(Youth Day), May 1 (Labor Day), and May 20 (National Day).  Apart from 
Christmas Day (December 25), all Cameroon's Christian holidays fall on 
different dates of the month each year:  Good Friday, Ascension Day and 
Assumption Day.  Moslem holidays also fall on unspecified calendar days:  
the TABASKI is established at the end of the Ramadan, and the Feast of 
the Ram is established 170 days after Ramadan. 
 
  The Cameroonian work week does not include Saturdays.  Holidays 
falling on Saturdays or Sundays are observed on Fridays or Mondays.  
When a working day intervenes between two recognized civil holidays, the 
working day is usually, but not always, declared a public holiday.  For 
example, Friday would be declared a non-working day if a recognized 
public holiday falls on a Thursday. 
 
4.  BUSINESS INFRASTRUCTURE 
 
  Cameroon's southern cities are connected by good roads.  Its main 
business centers, Yaounde and Douala, are easily accessible from Bamenda 
(North West Province) and Bafoussam (West Province) and from Cameroon's 
two main seaside resorts of Kribi and Limbe.  The three major northern 
cities of Ngaoundere, Garoua and Maroua are linked to each other by a 
paved 510-kilometer road, but they are cut off from the southern cities 
by long stretches of unpaved road.  Cameroon's railway and airline 
service links the southern and northern zones at its northern terminal 
in Ngaoundere.  Credit cards are accepted in the major hotels in Douala 
and Yaounde and in a few restaurants but, for the most part, cash is 
required everywhere else. 
 
  Car rental is available in Douala, Yaounde, Ngaoundere and Garoua.  
Visitors to these cities can also hire taxi cabs.  Taxi hiring is also 
available in most of the country's towns and cities. 
 
  Railway service between Douala and Yaounde has deteriorated.  Delays 
and cancellations are common.  Air service is available between most 
major cities, including Douala, Yaounde, Ngaoundere, Garoua and Maroua.  
The sole carrier for in-country serve is Cameroon Airlines (CamAir).  
There are frequent delays, cancellations and overbookings of CamAir 
flights.  Passengers should arrive at the airport early to improve their 
chances of receiving a boarding pass.  Cameroon imposes an airport 
departure tax of F CFA 10,000 for international flights and F CFA 500 
for domestic trips. 
 
   Bus service is available between Yaounde, Douala, Limbe, Bafoussam 
and Bamenda, but accidents are frequent.  Bus travel should be avoided. 
 
  French is the dominant business language in Cameroon.  English, 
Cameroon's other official language, can be used in the two English-
speaking provinces and the two largest cities (Douala and Yaounde).  The 
staffs of major hotels and restaurants are usually bilingual. 
 
  Cameroon and the United States have a direct telephone link via 
satellite.  The country code for Cameroon is 237.  All telephone numbers 
have six digits, and there are no city or area codes.  Cameroon has fax 
and telex services, and it was the first country in Sub-Saharan Africa 
to launch a cellular phone service in 1993.   
 
  Many streets in Cameroon do not have names or numbered addresses.  
Consequently, most businesses, hotels, restaurants, government offices 
and individuals do not have street addresses.   Mail is generally sent 
to a "boite postale" (B. P.) or "post office box" (P. O. Box). 
 
  Special precaution should be taken by American visitors to drink only 
bottled or boiled (and filtered) water.  Vaccinations against tetanus, 
typhoid, polio, meningitis, and hepatitis B are recommended.  A gamma 
globulin injection is also recommended every four to six months to 
protect against hepatitis A.  Cameroon has chloroquine- and fansidar-
resistant malaria.  Americans are urged to take appropriate malaria 
prophylactic medication and to use insect repellents. 
 
  There are many restaurants in Douala and Yaounde that serve a variety 
of cuisines including Cameroonian, French, Chinese, Italian, Lebanese, 
Vietnamese, Indian and Japanese.  Visitors should only drink bottled 
mineral water in restaurants and hotels.  A number of European and 
American credit cards are accepted in many restaurants and hotels in 
major cities. 
 
  Villas and houses are available for rent in most towns in Cameroon.  
Apartments are available for rent in Douala and Yaounde.  Rates have 
dropped considerably since 1992.  While real estate brokers (or "agent 
immobilier") may help in securing housing for American visitors, a good 
local contact may be more useful. 
 
-------------- 
X.  APPENDICES 
-------------- 
 
  Cameroon's national income, price, balance of payments, trade and 
fiscal data became increasingly scant and unreliable in the late 1980's 
as the country's data generation systems deteriorated steadily.  With 
help and pressure from the international financial institutions (IFIs), 
the situation is only beginning to improve, especially in the financial 
sector.  The data used in this report has been supplied mainly by the 
IFIs.  Updates of the Country Commercial Guide will contain additional 
data as it becomes available. 
 
A.  COUNTRY DATA 
 
- Population: 12.5 million 
- Population growth rate: 2.7 percent 
- Religion: Christian (40 percent), Muslim (20 percent), indigenous 
African (40 percent) 
- Government System:  Republic, strong central government dominated by 
the Presidency.  Executive Branch - Head of State (five-year time); 
Prime Minister: Head of Government (five-year term).  Legislative Branch 
-- Unicameral National Assembly, 180 members, five-year terms; meets 
briefly two to four times a year.  The Judiciary -- is not a separate 
branch, but part of the Executive Branch's Ministry of Justice. 
Languages:  English and French (official), plus 270 indigenous African. 
- Work Week: Monday - Friday, 7:30 a.m. to 3:30 p.m.; one-hour break 
between 12:00 noon and 1:00 p.m. 
 
B.  DOMESTIC ECONOMY (STATISTICS) 
 
-  GDP:  USD 6.6 billion (FY 93/94 Est.) 
-  GDP growth rate:  FY 94/95, 3.3 percent; FY 95/96, 5 percent (Est.) 
-  GDP per capita:  USD 532 (FY 93/94 Est.) 
-  Government Spending as a percentage of GDP:  19.8 percent (FY 93/94 
Est.) 
-  Inflation:  48.4 percent for CY 1994, 3.4 percent for first three 
months of 1995 
-  Unemployment: 24.6 percent for capital city of Yaounde in 1993 
-  Foreign Exchange Reserves:  not available 
-  Average exchange rate for USD 1.00:  CFA 502  (first six months of 
1995) 
-  Debt Service Ratio: not available 
-  U.S. Military/Assistance:  The USAID mission in Cameroon was closed 
December, 1994.  The U.S. will not provide bilateral Economic Assistance 
for FY 96 and beyond.  The U.S. provides IMET military training 
assistance to Cameroon.  No IMET assistance was provided during FY 95, 
but USD 100,000 is scheduled to be provided in FY 96. 
 
C.  TRADE STATISTICS 
 
                                   1994 
  
Total Country Exports               USD 1,509 MILLION 
Total Country Imports               USD   808 MILLION 
U.S. Exports                        USD    53.6 MILLION 
U.S. Imports                        USD    55.2 MILLION 
    
 
D.  INVESTMENT DATA: 
 
    Not available. 
 
E.  US AND COUNTRY CONTACTS 
 
1.  Aubrey V. Verdun, Economic Officer 
    Jean Paul Yana, Commercial Assistant 
    American Embassy Yaounde 
    Rue Nachtigal 
    B.P. 817 
    Yaounde, Cameroon 
 
    pouch address: 
     
    American Embassy Yaounde 
    Department of State 
    Washington, D. C.  20521-2520 
 
    Tel. (237) 23-40-14 
    Telex  8223 KN 
    Fax  (237) 23-07-53 
 
2.  American Business Association 
    c/o Pecten Cameroon Company 
    BICIC Building Bonanjo 
    P.O. Box 2273 
    Douala, Cameroon 
 
    Tel.  (237) 43-27-12 - 16 
    Telex  5626 KN 
    Fax  (237) 43-27-23 
 
3.  Deborah Rogers  
    Office of Africa 
    Room 2037 
    U.S. Department of Commerce 
    Washington D.C. 20230 
    
    Tel. (202) 482-5149 
    Fax  (202) 482-5198 
 
 
4.  U.S. Department of Agriculture 
    Foreign Agricultural Service 
    Trade Assistance and Promotion Office 
 
    Tel.  (202) 720-7420 
  
5.  The World Bank 
    New Bastos (PO Box 1128) 
    Yaounde, Cameroon 
    Resident Representative, Joseph K. Ingram  
 
    Tel. (237) 20-38-15 
    Fax  (237) 21-07-22    
 
6.  His Excellency 
    Mr. Justin Ndioro 
    Ministry of Economy and Finance 
    Yaounde, Cameroon 
     
    Tel.  (237) 23-22-99 
    Fax   (237) 23-37-17 
 
7.  His Excellency 
    Mr. Pierre Eloundi Mani 
    Minister of Industrial and Commercial Development 
    Ministry of Industrial and Commercial Development 
    Yaounde, Cameroon 
     
    Tel.  (237) 22-25-12 
    Fax   (237) 22-27-04 
 
8.  Mr. Pierre Tchanque 
    President of Cameroon's Chamber of Commerce, Industries and Mines 
    Chamber of Commerce, Industries and Mines  
    P.O. Box 4011 
    Douala, Cameroon 
     
    Tel.  (237) 42-28-88 
                42-36-90 
    Telex   5616 KN 
 
F.  MARKET RESEARCH 
 
       Not available. 
 
G.  TRADE EVENT SCHEDULE 
 
  Cameroon's national trade fair, PROMO, is held in December of each 
year at the nation's capital city, Yaounde.  The U.S. Embassy will have 
an American Business Information Exhibit at the December, 1995 PROMO.   
For registration and other information regarding PROMO, businesses may 
contact: 
 
     Mr. Pierre Tchanque 
     President of Cameroon's Chamber of Commerce, Industries and Mines 
     Chamber of Commerce, Industries and Mines 
     P.O. Box 4011 
     Douala, Cameroon 
      
     Tel.  (237) 42-28-88 
                 42-36-90 
     Telex  5616 KN
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