The majority of products that enter Cameroon come via the Port of Douala, located on the Gulf of Guinea. The annual capacity of Douala port is estimated at 7 million metric tons. The port regularly operates at 80% of its capacity.  Its geographical location is on the Wouri River estuary, which is reached from the sea by a 50-km channel that requires constant and costly dredging.  The Douala-Bonabéri Port handles approximately 6,231,500 tons of cargo, 187,500TEU and 2,800 vessels annually.  The average time for a vessel at quay is estimated at 3.4 days. The port is beset by rampant corruption and faces numerous capacity issues.

Cameroon’s second port, the Kribi deep-sea Port, in operation since 2018 and built by China Harbour Engineering Company (CHEC), is the largest port in Cameroon and will play an increasingly large role in shipping in the Central African sub-region and the Gulf of Guinea.  With its 670m of quay for the first part, the Kribi port can receive simultaneously 2 vessels of 290m carrying 50,000 mt of commodities — more than double the maximum of Douala port which is 20,000 mt.  Three operational porticos of 68 mt, 35 mt and 25 mt will reduce the stand-by of the vessels. Currently the port of Kribi is handling 25 percent of total imports and 17 percent of exports from Cameroon, and those percentages will grow as the port expands.

On July 27, 2023, authorities of the Ports of Kribi and Douala signed a feedering agreement.  In practice, when goods or travelers are supposed to dock in the Port of Douala but cannot do so due to the size of the ship, that ship can head to the Port of Kribi, whose draft is larger than the Port of Douala’s.  The goods or people will be unloaded at the Port of Kribi and then ‘feedered’ (transported by feeder ships) to the Port of Douala.

Cameroon’s transportation infrastructure needs further development.  National highways are paved, but even the road between the two largest cities, Yaoundé and Douala, has only two lanes, and the 140-mile trip routinely takes more than five hours.  A Chinese company is currently building an alternative route, but its completion date is unknown.  Rail is a viable alternative.  Cameroon has two international airports, located in Yaoundé and Douala.  Regional capitals within Cameroon also have airports, but service is limited.

Using an Agent or Distributor                   

Although Cameroonian law does not require the use of an agent or distributor, the U.S. Embassy recommends having one given the complexity of the regulatory system.  Most  foreign companies entering the market tend to develop a local partnership with one or more domestic businesses because they have experience and a good understanding of the local market.  Several dozen American companies are present in Cameroon, either directly or through agents or distributors.  U.S. Embassy Yaoundé offers the full range of U.S. Department of Commerce-branded services to assist American businesses seeking access into the Cameroonian market. These include Gold Key, International Partner Search, and International Company Profile Reports – fee-based services that provide American companies with introductions to business and government representatives, vetting of local agents and partners, and guidance in conducting market research.  Domestic U.S. Export Assistance Centers can provide insight on how to leverage these services.  .

Establishing an Office

The formation of a company requires:

• Selection of the company’s legal category (for example, public limited liability, private limited liability);
• Payment of the requisite minimum legal authorized capital permitting the incorporation of the selected business legal category at a Notary Public;
• Submission of a certificate of non-conviction of the chief executive officer and, for foreigners, a valid entry visa or residence permit;
• Registration of the by-laws (articles of association) of the subsidiary by the Registrar at a court of first instance;
• Application for the tax ID card issuance by a Notary Public;
• Upfront payment of a tax on office space rent (20 percent of annual rent); and,
• Application for and issuance of a business license, which is free of charge for the first two years.

For the latest Investment Climate Statement (ICS) which includes information on investment and business environments in foreign economies pertinent to establishing and operating an office and to hiring employees, visit the U.S. Department of Department of State’s Investment Climate Statements website.

Franchising

The potential for franchising remains largely unexplored in Cameroon.  The strength and popularity of U.S. brands suggests that American-origin franchises could be successful, barring the challenges of the business climate. In  June 2023, an approximately  25-person Cameroonian delegation attended the International Franchise Expo in New York, showcasing interest in bringing U.S. franchises to the country. Franchise agreements have been signed or are in the works in the food and beverage, entertainment, fitness, and education sectors.

An 18,000 square meter mall, Douala Grand Mall, opened in Douala in 2020 and has the potential to host 160 shops, bringing retail opportunity for U.S. franchises.  The mall’s developers have plans to build a second phase to include a hotel and office space. 

Franchising statutes are determined by the 1977 Bangui Agreement Relating to the Creation of an African Intellectual Property Organization.  The Cameroon Franchise Association is a member of the Washington, D.C.-based International Franchise Association.  Under the regional corporate law framework, franchises are treated as a “special” type of commercial contract.  Entrepreneurs are encouraged to consult a lawyer and a tax expert to avoid miscategorization by the Cameroonian government tax office, which can have serious financial consequences. 

Direct Marketing 

Once the company is established and the products and services are ready to reach customers, companies would be well advised to come up with a market penetration strategy.  The availability and increasing popularity of mobile technology is opening opportunities for direct marketing. Television, radio, and newspaper advertising are ubiquitous in Yaoundé, Douala, and other major cities. Non-traditional channels of marketing, such as SMS messaging, are growing rapidly.

Joint Ventures/Licensing

U.S. companies should seek professional assistance in negotiating agreements and selecting partners. Widespread corruption, scams, and a weak and corruptible legal system present major risks for investors entering joint ventures; as elsewhere, if a deal sounds too good to be true, it likely is. Licensing, sales and manufacturer’s representatives exist, though most U.S. brands covering the area are located in a separate regional office in Africa, often Nigeria or Senegal.  Sales agents can be bound by contracts, but these may be difficult to enforce in case of problems.

Express Delivery

International companies (DHL, UPS, and FedEx) dominate express delivery in Cameroon.  These companies can deliver from the United States within seven days, though their reach to locations outside regional capitals is limited.  For deliveries between destinations in Cameroon, a few companies dominate the market, with the bulk of business express delivery taking place between Douala and Yaoundé.

Due Diligence

Cameroon is a haven for scammers, and every year, dozens of U.S. companies and individuals inform the Embassy that they have fallen victim.  U.S. Embassy Yaoundé offers the full suite of Department of Commerce-branded services, including International Company Profiles (ICPs).  ICPs offer low-cost, quick background checks and due-diligence reports on potential buyers and partners.  The profiles include factual data as well as the embassy’s evaluation to help U.S. firms assess risk, reliability, and capability.

A full ICP report provides U.S. firms and economic development organizations with a comprehensive background report on a prospective foreign partner, including information on:

• Company size, sales data, and corporate structure
• Shareholders and a listing of the company’s senior management
• Main business activities and product/service lines
• Banking and financial information
• Site visit and interviews with principals and customers
• Market outlook and insights on whether the prospective partner can meet the needs of potential U.S. investors, including on trading experience, market coverage, stature, business connections in the country
• Analysis of information collected
• A list of sources consulted in preparing the report.

A partial ICP report provides U.S. firms and economic development organizations with a partial background report on a prospective foreign partner, including information on:

• Company size, sales data, corporate structure
• Shareholders and a listing of the company’s senior management
• Main business activities and product/service lines
• Banking and financial information
• References of principals and customers
• Analysis of information collected
• Information sources consulted in preparing the report 

If you are interested in an ICP, reach out to your local U.S. Export Assistance Center to start the process.