Selling to the Government
Many governments finance public works projects through borrowing from Multilateral Development Banks. Please refer to “Project Financing” section.
Cameroon has observer status in the World Trade Organization’s Agreement on Government Procurement Committee. Domestically, government procurement generally follows a public call for tenders and a competitive selection process. Government ministers and state-owned enterprises can award and sign contracts. Government procurement contracts equal to or above $10,000 must also pass through an open tender process supervised by a contract awarding committee put in place by the Ministry of Public Contracts, which evaluates bids and advises the designated project owner on the selection. International invitations to tender are sometimes published on the internet and local newspapers.
Though there is a growing call for decentralization, all government procurement remains tightly controlled at the national level. As a result of existing decentralization efforts, some government agencies, such as Cameroon local development agency, FEICOM, are expecting larger budgets to execute local community projects.
Among others, one entry point for securing a government procurement contract is the public private partnership (PPP) framework. Cameroon has established a general legal framework for PPP contracts, under which government project owners can grant contracts to private entrepreneurs following a mutual agreement to commence a project. In this context, contracts for large infrastructure projects (roads, buildings, ports, dams) are subject to the control and monitoring of special committees in the Prime Minister’s Office.
U.S. firms, particularly small and medium-sized entreprises, should understand that any government procurement takes months, if not years, to complete. Cameroon’s consensus-driven decision making process slows down government procurement at all levels. On most projects, at least four government agencies (Ministry of Finance, Ministry of Economy and Planning, Ministry of Public Contracts, and the Autonomous Sinking Fund), in addition to the requesting ministry, and the Presidency, must agree to move forward at every level of development.
U.S. companies bidding on foreign government tenders may also qualify for U.S. Government advocacy. Within the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters in competition with foreign firms in foreign government projects or procurement opportunities. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S. Government agency officials expressing support for the U.S. exporters directly to the foreign government. Consult the Advocacy Center’s program web page on trade.gov for additional information.
Financing of Projects
Foreign investors can obtain local financing for investment and trade purposes at non-discriminatory terms. However, most foreign investors prefer to borrow from foreign sources due to Cameroon’s comparatively high interest rates. Because local sources of financing are limited and expensive, competitive credit terms may be of primary importance to a potential buyer, even compared to product quality, sustainability, or other factors. Some exporters often grant up to 180-day terms for local buyers who can obtain ratings from COFACE or other international credit insurance companies.
The Export-Import Bank of the United States (EXIM) and the U.S. International Development Finance Corporation (DFC) can insure and finance investments in which the U.S. stake is 25 percent or above. Both EXIM and DFC have open projects in Cameroon and are favorably known by Cameroonian government officials.
Multilateral Development Banks and Financing Government Sales. Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). The Guide to Doing Business with Multilateral Development Banks overviews how to work with MDBs. The International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.
Learn more by contacting the:
- Commercial Liaison Office to the African Development Bank
- Commercial Liaison Office to the World Bank.