Monday, August 11, 2008

Cameroon: Government blame for resting on proposals to improve Business climate


It is an open secrete that the republic of Cameroon is one of the unsafe countries in the world to do business. Yet government is doing little or nothing practically to change the situation of the field.

By Yemti Harry Ndienla

Meeting at an annual general assembly in the country’s economic capital - Douala, members of the Unions of Industrialists of Cameroon, SYNDUSTRICAM, have again blamed government for failing to implement propositions aimed at relaxing their operating environment.
While expressing regret that industrial growth remained choked because authorities are reluctant to apply long-standing recommendations, members of SYNDUSTRICAM made it clear that they risked folding up if the government of Cameroon failed to urgently implement long-standing propositions
SYNDUSTRICAM president, Charles Metouck, who doubles as GM of the country’s lone oil refinery, SONARA, pointed the fact that; intense fiscal pressure; inadequate infrastructure; high costs of energy and imported primary production material and galloping fuel costs are clear indications that industries in the country were ailing and grappling for survival.
Charles Metouck, expressed regret that “Industries in Cameroon are not carrying on well enough. The cost of production depends on the cost of primary production material. And the purchasing power of Cameroonians is so low that it is difficult for industries to meet production costs. The situation will be further compounded by the gradual opening of borders within the Economic Partnership Agreements framework,” And that it is crucial that local industries update their capacities to be able to match envisaged competition.
Hear him, “Government must listen to our problems and implement urgent solutions. But unfortunately, most of our proposed solutions are still lying in government drawers,”
The feet dragging in the execution of suggested solutions has led to trivial growth in the sector. A report on the union’s activities for 2007 noted that some members marked only feeble turnover growth to the tune of 7.5 percent from 5 percent in 2006.
On this score they blamed intense fiscal pressure, reiterating the need for the government to scale down on primary production materials imports. Amongst other problems members also noted administrative bottleneck and slow infrastructure development as those, which further weakened the country’s industrial fabric
In response, the secretary-general in the Ministry of Industries, Mines and Technological Development said government was quite aware of the cited difficulties. He said plans were underway to elaborate and implement a new platform for a more conducive business climate for the country’s industries. The SG announced a forum on industrial investment to hold in Yaounde, this month.But some members said they had similar unmet promises in the past.

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