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9481. Obtaining Construction Permits In Cameroon: Dealing With The Law

Author:
Dinga Tambi and Henri Kouam
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
The Nkafu Policy Institute
Abstract:
Infrastructure is a prerequisite for economic development. It forms the backdrop of sustained economic progress, creates employment opportunities and improves citizens’ quality of life. To this end, the World Bank created the “Doing Business Index” to measure the performance of countries. Admittedly, construction permits comprise a sub-category of the overall index where Cameroon ranks from 166th in 2019 to 167th in 2020. This article looks at current legislation for obtaining construction permits, the various parties involved and the implications for Cameroon’s economic development.
Topic:
Infrastructure, World Bank, Business, and Economic Development
Political Geography:
Africa and Cameroon

9482. Assessing The Mechanism Of The Issuance Of Construction Permits In Cameroon

Author:
Jean-Cedric Kouam
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
The Nkafu Policy Institute
Abstract:
The building permit is a preliminary declaration that allows for the verification of a construction initiative in a given locality, in line with the respect of town planning and architectural rules in force. In Cameroon, this document issued by the local council authority is mandatory for any possible new construction or modification of an existing construction. Therefore, any construction without an official permit is liable to a penalty of 30% of the estimated cost of the building. According to Law No.2004/003 of April 21, 2004 governing the Cameroonian Urban Planning Code and the decree of 23 April 2008; the process of obtaining this document has been considerably shortened. Yet, it remains quite complex. This complexity is evident in the plurality of procedures, requirements, norms, offices, conditions, actors, documents, and stakeholders involved in the process. All these are accompanied by the heavy financial burden, time-consuming processes, boycotts, administrative bottlenecks and corruption; all of which lead to unorganized and slow urban development. Moreover, within this complexity, is the reality that such mechanisms differ from one place to another across the national territory; thereby creating some sought of uncertainty, non-uniformity, and lack of trust in the system. The improvement in the issuance mechanism of Construction Permits in Cameroon is very vital for a country that has the ambition to achieve its economic emergence by 2035.
Topic:
Infrastructure, Regulation, Business, and Economic Development
Political Geography:
Africa and Cameroon

9483. The Promise Of Digital Health In Africa

Author:
Odette Kibu, Dr. Asahngwa Constantine, Wilfred Ngwa, Charlotte Bongfen, Ronald Gobina, Nkengafac Fobellah, and Denis Foretia
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
The Nkafu Policy Institute
Abstract:
Digital Health holds enormous potential to improving access to health care services. It has been well documented that the African health sector is facing challenges in the delivery of high quality healthcare both in terms of development of high quality programs and also in increasing access to health care services. Despite decades of foreign assistance, few countries in the region are able to spend even the $34-$40 per person per year that the World Health Organization (WHO) considers the minimum necessary to provide a population with basic health care. In spite of the billions of dollars of international aid dispensed, an astonishing 50 percent of Sub-Saharan Africa’s total health expenditure is financed by out-of-pocket payments from its largely impoverished population. Interventions that aim at increasing access to high quality healthcare in a cost effective way have the potential to greatly transform the health sector. Digital healthcare technology stands out in the 21st century as a major game changer for the health sector and the African continent is well positioned to benefit greatly since technology can help tackle the rising burden of disease and major obstacles in infrastructure and the environment.
Topic:
Science and Technology, World Health Organization, Health Care Policy, Digital Policy, and Global Health
Political Geography:
Africa, Cameroon, and Sub-Saharan Africa

9484. Cameroon: Almost 97% Of Household Have Problems In Food Crop Production

Author:
Sundjo Fabien
Publication Date:
03-2021
Content Type:
Special Report
Institution:
The Nkafu Policy Institute
Abstract:
Agriculture is critical to achieving global poverty reduction target and it is the single most important sector in most low-income countries, as concern its share in the Gross Domestic Product and equally in terms of number of people it employs (World Bank, 2009). According to the World Bank report (2007), agricultural development is one of the most powerful tools to end extreme poverty, boost shared property and feed a projected 9.7 billion people by 2050. In addition, the same report holds that growth in agricultural sector is two to four times more effective in raising income amongst the poorest as compared to other sectors. This has made agriculture to remain a core activity in the developing economies. It is believed that, over the past decades, hunger and malnutrition persist in many countries because of slow agricultural productivity (WFP, 2018). The expected increase in agricultural demand associated with population growth requires a continuous increase in the investment in agricultural activities be it at the national or individual levels. Goal two of the Sustainable Development Goals (SDGs) which is emphasized in the Millennium development Goals (MDGs) aims at eliminating hunger to zero level by 2030. But unfortunately, hunger and malnutrition remain a barrier of development in developing countries. In this light identifying factors that can hamper agricultural production is remarkably important. The objective of this write-up is therefore to investigate the challenges faced by farmers in order to implement informed decision to boost productivity in the food crop farming sector in Cameroon.
Topic:
Agriculture, Food, Food Security, Millennium Development Goals, Sustainable Development Goals, Economic Development, and Farming
Political Geography:
Africa and Cameroon

9485. Market Research: A Key Determinant Of Success For SME Start-Ups In Cameroon

Author:
Dinga Tambi and Dr. Fuein Vera Kum
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
The Nkafu Policy Institute
Abstract:
Small and Medium-sized Enterprises (SMEs) are regarded as vectors for job and wealth creation throughout the world. They contribute to generating growth as well as redistributing wealth in both developed and developing countries [1]. In Cameroon, SMEs constitute 95% of the country’s economy and also helps in job creation especially among the youths [2]. This, to a greater extent, means that their successes or failures have significant implications for economic growth. To be successful, and to stand out as a pillar of national growth in the country, SMEs need to invest in essential practices that nurture a high level of mastery of the contextual factors that foster their growth. They also need to demonstrate an understanding of factors that may impede the growth trajectory they require to be the drivers of economic growth which they represent. Hence, it becomes imperative for SMEs to invest in market research. This will help them to grow and develop sustainably and not quickly go out of business. Market research is a fundamental determinant for the success and growth of SMEs. However, this is not always the case in Cameroon as most local investors fail to carry out market research before their establishment and in the course of their operations that can help them grow sustainably. Most SMEs in Cameroon do not survive after the incubation phase. According to business and finance experts, this happens due to the absence of market research and the inability of these enterprises to create a specialized market for themselves and their products [3].
Topic:
Business and Economic Development
Political Geography:
Africa and Cameroon

9486. The Concept Of Africapitalism And The Role Of The Private Sector In Africa’s Socio-Economic Development

Author:
Dinga Tambi and Dr. Fuein Vera Kum
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
The Nkafu Policy Institute
Abstract:
Development is one of the main priorities of the United Nations. Development is a multidimensional concept that seeks to achieve a higher quality of life for all people. Economic development, social development and, environmental protection are interdependent and mutually reinforcing components of sustainable development. Africa is one of the fastest-growing continents in the world today. The private sector plays a great role in terms of job creation and employment. Constrained by a crippling environment and burdensome government policies for decades, Africa still hosts a majority of the least developed countries of the world. The private sector is said to have a major role to play in Africa’s development, a situation which Elumelu (2019) describes as ‘Africapitalism.’ According to Elumelu (2019) Africapitalism represents the belief that the private sector in Africa has a critical role to play in the continent’s development. For Africapitalism to hold, some basic principles have be put in place. These include entrepreneurship, long-term investments, investment in strategic sectors, and regional connectivity amongst others. Africapitalism lays emphasis on private sector growth as the primary driver of Africa’s development. It calls for a new kind of capitalism for Africa: one that focuses on long-term investment in key sectors of the economy to spark the growth of African-owned businesses, stimulate the creation of jobs, and guarantee sustainable economic growth. Essentially, africapitalism embodies a private sector-led approach to solving some of Africa’s most intractable economic growth and development problems.
Topic:
Economics, Capitalism, Business, Economic Development, Private Sector, and Job Creation
Political Geography:
Africa

9487. Barriers To Formalization Of Businesses In Cameroon: High Tax Rates

Publication Date:
02-2021
Content Type:
Special Report
Institution:
The Nkafu Policy Institute
Abstract:
Clearly expressed in its National Development Strategy 2020-2030 (SND30), Cameroon’s desire for the coming decade is to achieve sustainable growth driven by the manufacturing industry. Thus, the government hopes to increase (i) manufacturing value-added from 14.5% in 2017 to 25% in 2030 and (ii) the share of manufacturing exports to 54.5%. However, in the absence of an efficient industrial sector, the economy tends to specialize in the “end of the chain” activities, including extraction (mining and oil) and subsistence agriculture on the one hand and trade and services on the other. According to the Third Survey on Employment and the Informal Sector conducted by Cameroon’s National Institute of Statistics in 2018, nearly 90% of the Cameroonian labor force remains trapped in the informal sector. The sector comprises a set of individual companies – generally nonagricultural – that operate on a small scale and are not registered with the competent authorities. Many entrepreneurs choose to operate informally because of barriers to formalization. For example, businesses spend an average of 624 hours to make 44 payments per year to the tax authorities. The total tax rate remains one of the highest in Central Africa, at 57.7% of business profits than 47.1% in Gabon (World Bank, 2020).
Topic:
Labor Issues, Business, Tax Systems, Economic Development, Sustainability, Labor Market, and Informal Economy
Political Geography:
Africa and Cameroon

9488. State-Centric Approach to Resolving the Anglophone Conflict in Cameroon: What Prospects?

Author:
Francis Tazoacha
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
The Nkafu Policy Institute
Abstract:
The Nkafu Policy Institute, a think–thank of Denis and Lenora Foretia Foundation, Simbock, Yaoundé, Cameroon, hosted a webinar on January 26, 2021 on the theme: “Can the Anglophone Crisis be Solved Through a State-Centric Approach?” Hosted in partnership with the National Endowment for Democracy based in Washington DC, the webinar sought to know if the ongoing conflict in North West and South West Cameroon can be resolved through a state–centric approach. Bringing together about 68 participants, the January 2021 webinar sought to provide a platform for knowledge sharing and dialogue on the anglophone conflict and brainstorming to see if the state alone can resolve the conflict without the involvement of other stakeholders. The meeting sought to address a widely recognized need for the government of Cameroon to ensure greater involvement of civil society organizations, regional bodies, the United Nations, the African Union, Nation States and international mediators in the sustainable resolution of the conflict. For the past four years, the socio-political climate of the Anglophone regions of Cameroon has been very volatile. The long-standing grievances among the Anglophone population in the North West and South West Regions of Cameroon concerning marginalisation particularly in the educational and legal systems by the Francophone-dominated government led to widespread protests in October 2016.1 The conflict escalated from a peaceful demonstration that was met with a heavy crackdown from the government security forces in 2017. As a result, the situation morphed into an armed conflict with increasing support by the population in the Anglophone regions to seek independence from Cameroun – French Cameroon – as an independent “Republic of Ambazonia.” Since 2017, the conflict has continued unabated without any party seeming to surrender and thus end the war. Despite attempts from the national and international communities to intervene and resolve this destructive conflict, it has nevertheless, resulted in an impasse.2 The government of Cameroon opted for a military strategy from the very beginning of the peaceful protest that quickly changed into an armed conflict. Some pundits attribute this escalation to November 30, 2017 when President Biya, upon his return from Abidjan, Ivory Coast – after attending the 5th African Union-European Union Summit – declared to pressmen at the Yaoundé Nsimalen International Airport that he would put an end to the series of killings of forces of law. He also said he would order in general and the massacres around Mamfe in the South West Region, at the time all claimed to have been perpetrated by “Anglophone separatists.”
Topic:
Conflict Resolution, Conflict Prevention, Conflict, Nation-State, and African Union
Political Geography:
Africa and Cameroon

9489. An Analysis of the Effects of Oil Price Fluctuations on the Conduct of Monetary Policy in the Economic

Publication Date:
03-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
For many years, the economies of the Economic and Monetary Community of Central Africa, like most of the world’s economies, have been confronted with numerous fluctuations in the price of raw materials on international markets. For these predominantly extroverted economies, that is, those dependent on export earnings, these price variations have consequences for their macroeconomic performance and the conduct of economic policy. Like most economic crises in the world in the past, the pandemic caused by the new Coronavirus that has been raging since 2020 has also brought with it many changes. Between the confinement measures taken by public authorities to curb the spread of the virus and the resulting slowdown in global economic activity, there has been an inevitable significant drop in global oil demand. The direct consequence of such a scenario is the fall in oil prices on world markets, which is very bad news for the public finances of oil-exporting countries. The main objective of this report is to analyze the effects of oil price fluctuations on the conduct of monetary policy in the CEMAC. We start from the observation that oil shocks are the source of strong inflationary pressures in these economies. It is the responsibility of monetary policy to ensure price stability. Thus, after analyzing the effects of oil price fluctuations on the world economy as well as the macroeconomic and financial implications of these fluctuations on the economies in 2020, we use a Vector Auto Regressive model to analyze the contribution of oil price shocks on the historical dynamics of macroeconomic variables in the various CEMAC countries between 2001 and 2020. Then, we use a Panel Smooth Transition Regression model to analyze the impact of oil price changes on monetary policy in the CEMAC.
Topic:
Economics, International Political Economy, Oil, Natural Resources, Monetary Policy, Global Markets, Inflation, and Macroeconomics
Political Geography:
Africa, Cameroon, and Central Africa

9490. Should We Consider A Post-Covid-19 Reform Of The VAT In Cameroon?

Publication Date:
03-2021
Content Type:
Special Report
Institution:
The Nkafu Policy Institute
Abstract:
The COVID-19 pandemic so far has had a profound impact on the global economy. The containment measures adopted by governments to curb the spread of the disease have curtailed business activities, making it impossible for companies to adequately meet their tax obligations. As a result, forecasts for customs revenues and internal tax resources have been revised downward, mainly due to the closure of borders. Collected both at the borders and within the country, Value Added Taxes revenues have naturally been very negatively affected by the crisis. In Cameroon, losses related to value added tax in 2020 were estimated at CFAF 298.017 billion, representing 50.73 percent of recorded tax losses, which is hardly surprising. Value-added taxes are identified as the main source of tax revenue in Cameroon. They were estimated at 44.73% of tax revenue in 2019 and about 7% more than in 2016. The importance of VAT in tax revenue mobilization requires an examination of the Cameroonian tax system, particularly the factors that could explain a reform of the tax. Moreover, given that Cameroon is at high risk of external debt distress (IMF, 2018), there is an urgent need to find new ways to ensure the continued sustainability of public finances. This Tax Policy Letter analyzes the rationale for VAT reform in Cameroon. First, we present the severity of the economic repercussions of the coronavirus health crisis at the level of VAT revenues in Cameroon. Noting that VAT is the main source of indirect tax revenue – 60.19% in 2019 compared to 54.54% in 2016, for example – we then examine the guiding principles that govern its collection and application in Cameroon. A careful examination of these principles has allowed us to analyze the benefits associated with a reform of this tax on final consumption.
Topic:
Economics, International Political Economy, Tax Systems, Macroeconomics, Fiscal Policy, and Revenue Management
Political Geography:
Africa and Cameroon