Business: Poor information on investment opportunities in Cameroon scare investors

Earlier this year, the Japanese government undertook a commitment to double its assistance to investment strides in Africa . And then to match words with action, the Asian giant, at the TICAD IV Tokyo International Conference on African Development conclave held in Yokohama last May announced it had disbursed a credit line of 1 billion dollars.

By Yemti Harry Ndienla

The money is currently lodged at the African Development Bank (ADB) and is intended to prop private sector investment ventures on the continent. Initially, it was announced, it would be distributed in loans to eligible beneficiaries at an interest rate of 0.75 percent with repayment periods spanning 30 years, including a 10-year moratorium.
But Cameroonian businessmen have raised fears that the ADB may be planning to render access to the money prohibitive by increasing the interest rate. Ekoko Mukete, vice president of the Cameroon Chamber of Commerce who addressed a meeting of visiting delegation of Japanese investors and local businessmen, in Douala recently, raised fears that access to the funding might be complicated before long.
He hinted that the ADB was considering raising the interest rates to between 8 and 10 percent. However, he assured fretful local businessmen that nothing was certain until a team from the bank’s private sector division visited Cameroon in the near future to educate aspirants on eligibility contours and the nature of projects to be financed by the Japanese aid. He lauded the Japanese government’s efforts in supporting development in Africa and Cameroon in particular, where many banks only grant short-term loans at exorbitant interest rates.
Meantime, a 12-man Japanese trade and investment delegation, led by Hideki Oyama spent three days in Cameroon scanning investment avenues in the country under the aegis of the Chamber of Commerce. In an exchange session with their Cameroonian counterparts, they complained that information on investment opportunities in Cameroon and news of the evolution of the country’s business climate was hard to come by. Flanked by the Japanese Ambassdor to Cameroon , Kensuke Tsuzuki, the delegation leader warned that concrete projects could not be expected immediately after their mission.
“But this is a first step for Japanese investment in Cameroon ,” he said. It was the first time ever for Japanese private sector investors to hold direct exchanges with their Cameroonian counterparts who raised the need for joint ventures between both sides to enable Cameroon emerge from its position as a raw materials exporter to that of finished goods supplier. The Japanese showed investment interest in the areas of transportation and road construction, tourism, timber, energy, minerals and oil, textiles, energy, inter alia.