Cameroon - Market ChallengesCameroon - Market Challenges
Cameroon routinely ranks near the bottom of the World Bank’s Doing Business Report – 166th out of 190 countries in 2019 – and Transparency International’s Corruption Perceptions Index – 152nd out of 175 countries in 2018. While significant economic opportunities exist, an ineffective civil service and the tendency for some politicians to advance their own interests continue to be a drag on the growth needed to employ millions of young Cameroonians in the coming decade – the median age is 18. Despite seemingly low salaries, Cameroon’s civil service is one of the most expensive in sub-Saharan Africa after accounting for non-wage compensation.
Delays in project completion and financially plagued state-owned enterprises add to the problem. Almost all business transactions require senior level government approval, making for a cumbersome process susceptible to political influences and corruption.
Poor infrastructure, a slow and burdensome, omnipresent civil service, and rapidly evolving tax and regulatory regimes that lack transparency pose challenges to small and medium-sized enterprises attempting to enter the market. Even minor procurement decisions require Minister-level approval. Having a local partner is a must for companies hoping to do business in Cameroon.