The Entrepreneur - Cameroon's Premier Economic & Business Journal

Long-Term Implications of the Financial Crisis

By Jagadeesh Gokhale

The raging global financial crisis is likely to tip the world economy into a recession, which, contrary to what many pundits suggest, is likely to be long lasting. The coming recession might well mark the beginning of an era of permanently higher taxes and slower economic growth in rich countries. And it will hasten a fiscal crisis in entitlement programs. Financial markets declined in reaction to both the initial failure, and the eventual passage, of the U.S. bailout plan. As home prices decline, financial institutions' balance sheets continue to weaken and the crisis spreads. Calls for broad-based bailouts in Europe and elsewhere are growing stronger but it is uncertain whether such fiscal and monetary initiatives will succeed.

PROMO 2008: Business Community Intensify Preparations

Companies and business persons are heightening preparations ahead of the Promotional Trade Fair billed for the nation's capital from November 21-December 21,2008.Organized by the Cameroon Chamber of Commerce, Industry, Mines and Craft, the Trade Fair shall exhibit products and services offered at home and abroad alongside other attractions. An innovation this year shall limit the number of brewery companies to participate.

By Irene Zih Fon

At a press conference held recently in Douala, the president of the organizing committee, Mr Njanga Ebeneser, said 60% of preparatory work has been attained and participants are expected to have paid for their stands about a week to the event, precisely by November 15, 2008. Preparations include the creation of awareness, the mobilization of potential exibitors and serving as an intermediary between the the media and participants.

Chococam Boss Talks with Cameroon's Prime Minister

By Ben Nakomo

The Executive Manager of Tiger Brands Limited and Chairman of the Board of Directors of the Cameroon Chocolate Transformation Industry, Neil Brimacombe was received 16 October 2008 by Cameroon’s Prime Minister, Chief Thomas Ephraim Inoni. Tiger Brands Limited, one of South Africa’s largest food manufacturing companies, owns 74.7% of Cameroon's major chocolate manufacturer, Chococam. Chococam is expected to create jobs, pay taxes and contribute to the social development of the country. Cameroon is a significant player in the world cocoa trade, and the country is victim to unfair completion which hurts exporting firms such as Chococam.

Cameroon cocoa prices high despite rising supply

By Tansa Musa

Cocoa prices have remained high in Cameroon over the past month, falling only slightly despite increasing supply as the harvest gets into full swing in all three major growing areas, farmers and buyers said this week. "We are almost entering the peak of the harvesting season, with growing supply of beans on the market," Joseph Nde, manager of Cameroon Marketing Commodities (CAMACO), told Reuters. He spoke by phone from Kumba, the main trading centre in South-West province, which produces around half Cameroon's cocoa crop. "But despite this increasing supply, prices continue to be high, ranging from 970 to 1,000 CFA francs ($2.02-$2.09) per kg, down from 990-1,025 FCA/kg last month," he said.

Cameroon Battles with Price Control

New Retail Price for Sugar Still To be Effective

Following a Press Release ordering price cuts in Sugar by Cameroon’s Minister of Trade, Luc Magloire Atangana Mbarga, the prescribed price is yet to be respected by most traders. They say implementing the regulation should begin with wholesailers, to avoid loss in sales.

By Irene Zih Fon in Douala

Mr Atangana Mbarga about a week ago, set the price of a packet of cube sugar from 600 to 650 Francs CFA. This followed a meeting with stakeholders in the sector, during which both parties agreed to stabilize the cost of this basic commodity in every household.

Cameroon Tax System Experiencing Reforms

By Irene Zih Fon (The Entrepreneur Douala Bureau Chief)

The tax system in Cameroon has been undergoing several reforms by government along the years to make it more simplified, transparent and modernized. A recent move by the Ministry of Finance has provided a Toll Free telephone line (8200) and a website (www.impots.cm), through which taxpayers can file in complaints and get informed on tax collection procedures. In spite of these, businessmen still complain of high tax rates while taxation officers decry the process of obtaining dues from taxpayers. According to the Chief Inspector of Taxes at the Littoral-1 Provincial Office of Taxation, Mr John Gamkong Ney, the tax reforms are aimed at enabling taxpayers better understand the process even before paying their taxes. The negotiations he said are between the Cameroon government and partners such as the World Bank and the International Monetary Fund [IMF].

Private sector loans triggered crisis

By David Goldstein and Kevin G. Hall

As the economy worsens and Election Day approaches, a conservative campaign that blames the global financial crisis on a government push to make housing more affordable to lower-class Americans has taken off on talk radio and e-mail. Commentators say that's what triggered the stock market meltdown and the freeze on credit. They've specifically targeted the mortgage finance giants Fannie Mae and Freddie Mac, which the federal government seized on Sept. 6, contending that lending to poor and minority Americans caused Fannie's and Freddie's financial problems.

Oil falls below $88 on downturn fears

Oil slid by more than a dollar to below $88 a barrel today, as a series of bold rescue moves by policy makers around the world failed to soothe fears the global econ omy was heading for a meltdown. A much larger than expected rise in US crude and gasoline inventories underlined worries that the economic crisis would hit oil demand, a concern that has sent crude tumbling about $60 a barrel from its record high above $147 in July.

Cameroon's Iron Ore Project to attract Foreign Investors

Sundance seeks partner for US$3 b illion iron ore project

Australia's Sundance Resources (SDL.AX) is seeking a strategic partner for its more than $3 billion Cameroon iron ore project, sources familiar with the matter said on Tuesday. ArcelorMittal, the world's top steel company, and South Korea's POSCO are among the steelmakers interested in the project, sources said.//Reuters

In Africa where Cash is King, Consumers and Money Houses weather Financial storm

Nigeria well placed to weather global crisis: central bank

By Randy Fabi

Nigeria's financial markets are sufficiently liquid, its foreign currency reserves are safe and its banks' balance sheets are strong despite the global credit crisis, central bank governor Chukwuma Soludo said on Friday, October 3, 2008. Global market turmoil has led institutional investors to dump perceived risk, dampening enthusiasm for emerging frontier markets including those in sub-Saharan Africa and leading to outflows of foreign capital from countries including Nigeria.