Invest in Cameroon…Are you crazy?

Le Meridien Hotel, Douala.

Forbes’ Best Countries for Business list is out and Cameroon arrives at 137th place out of 141 countries ranked.

New Zealand the number one “Best Country for Business”, followed by Denmark, Hong Kong, Singapore, Canada, Ireland, Sweden, Norway, Finland and United Kingdom. The United States, with its “inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, sizable current account and budget deficits – including significant budget shortages for state governments – energy shortages, and stagnation of wages for lower-income families,” comes in at 12th place.

The countries at the bottom of this year’s list — the ten worst countries for doing business — are Cote d’Ivoire, Yemen, Mauritania, Ethiopia, Haiti, Cameroon, Venezuela, Zimbabwe, Chad and Guinea.

Forbes’ Cameroon Profile:

Because of its modest oil resources and favorable agricultural conditions, Cameroon has one of the best-endowed primary commodity economies in sub-Saharan Africa. Still, it faces many of the serious problems confronting other underdeveloped countries, such as stagnant per capita income, a relatively inequitable distribution of income, a top-heavy civil service, endemic corruption, and a generally unfavorable climate for business enterprise.

Since 1990, the government has embarked on various IMF and World Bank programs designed to spur business investment, increase efficiency in agriculture, improve trade, and recapitalize the nation’s banks. The IMF is pressing for more reforms, including increased budget transparency, privatization, and poverty reduction programs. Subsidies for electricity, food, and fuel have strained the budget. New mining projects – in diamonds, for example – have attracted foreign investment, but large ventures will take time to develop. Cameroon’s business environment – one of the world’s worst – is a deterrent to foreign investment.

Of course, like any “best of” list, one can quibble with the rankings and what they mean. China, for example, ranks 96th, yet attracts many foreign investors. So perhaps in some countries, the potential returns outweigh the negatives. Certainly that is the case for the foreign extractive industries companies investing in Cameroon. Forbes looked at 11 different factors: “property rights, innovation, taxes, technology, corruption, freedom (personal, trade and monetary), red tape, investor protection and stock market performance.” And for its data, the magazined used research and reports from: “the Central Intelligence Agency, Freedom House, Heritage Foundation, Property Rights Alliance, Transparency International, World Bank and World Economic Forum.”

But what does it mean for Cameroonians to be among the worst countries in the world for doing business? As one lawyer in Yaounde told me recently,”This country is so corrupt that few legitimate businesses will come here. It’s the cowboys who come to Cameroon. People here to make money fast and get out before the whole system collapses.”  He may have been exaggerating a bit, but it’s certainly true that Cameroon’s business environment doesn’t encourage local business creation and that, of course, is what is needed for real economic development. As long as the main foreign investment comes from the “extractors” — the oil, gas, mining and export-oriented agricultural investors — and the country does nothing to address the real obstacles to economic growth (such as the lack of electricity and decent roads), Cameroon will remain stuck at the bottom of the heap.

Rank
Name
GDP Growth (%)
GDP/Capita ($)
Trade Balance as % of GDP
Population (mil)
1

New Zealand

1.4 39,300 -4.4 4.3
2

Denmark

1.1 59,684 6.5 5.5
3

Hong Kong

5.0 34,457 3.9 7.2
4

Singapore

4.9 46,241 23.8 5.4
5

Canada

2.5 50,345 -2.8 34.3
6

Ireland

0.7 48,423 0.1 4.7
7

Sweden

4.0 56,927 7.7 9.1
8

Norway

1.7 98,102 14.5 4.7
9

Finland

2.9 49,391 -0.5 5.3
10

United Kingdom

0.7 38,818 -1.9 63.0
11

Australia

2.0 60,642 -3.0 22.0
12

United States

1.7 48,442 -3.1 313.8
13

Belgium

1.9 46,469 -0.8 10.4
14

Netherlands

1.3 50,087 9.2 16.7
15

Switzerland

1.9 80,391 13.4 7.9
16

Taiwan

4.0 20,083 8.8 23.2
17

Chile

5.9 14,394 -1.3 17.1
18

Luxembourg

1.0 115,038 6.2 0.5
19

Iceland

3.1 44,072 -7.1 0.3
20

France

1.7 42,377 -2.4 65.6
21

Germany

3.1 43,689 5.3 81.3
22

Estonia

7.6 16,556 3.2 1.3
23

Slovenia

-0.2 24,142 -0.5 2.0
24

Portugal

-1.5 22,330 -6.4 10.8
25

Cyprus

0.5 30,670 -10.7 1.1
26

Austria

3.1 49,707 2.0 8.2
27

Israel

4.7 31,282 0.1 7.6
28

Mauritius

4.1 8,797 -11.8 1.3
29

South Korea

3.6 22,424 2.7 48.9
30

Japan

-0.7 45,903 2.1 127.4
31

Malaysia

5.1 9,656 11.1 29.2
32

Malta

2.1 21,209 -4.0 0.4
33

Spain

0.7 32,244 -3.7 47.0
34

United Arab Emirates

4.9 45,653 7.3 5.3
35

Lithuania

5.9 13,339 -0.3 3.5
36

Italy

0.4 36,116 -3.2 61.3
37

Macedonia

3.0 4,925 -3.0 2.1
38

Poland

4.4 13,463 -4.3 38.4
39

South Africa

3.1 8,070 -3.3 48.8
40

Latvia

5.5 12,726 -1.3 2.2
41

Czech Republic

1.7 20,407 -2.9 10.2
42

Qatar

18.8 92,501 31.0 2.0
43

Slovakia

3.3 17,646 -0.6 5.5
44

Peru

6.9 6,009 -1.3 29.5
45

Montenegro

2.5 7,197 -42.3 0.7
46

Hungary

1.7 14,044 1.4 10.0
47

Croatia

14,488 -3.8 4.5
48

Saudi Arabia

6.8 20,540 25.0 26.5
49

Bulgaria

1.7 7,158 0.9 7.0
50

Georgia

7.0 3,203 -12.8 4.6
51

Uruguay

5.7 13,866 -1.9 3.3
52

Turkey

8.5 10,498 -10.0 79.7
53

Rwanda

8.8 583 -11.1 11.7
54

Oman

5.5 25,221 15.0 3.1
55

Colombia

5.9 7,067 -3.0 45.2
56

Bahrain

1.8 21,700 12.4 1.2
57

Panama

10.6 8,590 -12.7 3.5
58

Mexico

4.0 10,064 -0.8 115.0
59

Botswana

4.6 8,680 -2.7 2.1
60

Romania

2.5 8,405 -4.5 21.8
61

Jordan

2.5 4,666 -9.9 6.5
62

Kuwait

8.2 62,664 40.1 2.6
63

Costa Rica

4.2 8,676 -5.4 4.6
64

Mongolia

17.3 3,056 -10.9 3.2
65

Barbados

0.5 13,453 -10.0 0.3
66

Trinidad and Tobago

-1.3 16,699 22.5 1.2
67

Thailand

0.1 4,972 3.4 67.1
68

Greece

-6.9 26,427 -9.8 10.8
69

Tunisia

-0.8 4,297 -6.9 10.7
70

Kazakhstan

7.5 11,245 7.3 17.5
71

Namibia

3.6 5,293 -0.9 2.2
72

Brazil

2.7 12,594 -2.1 199.3
73

Azerbaijan

0.1 6,916 27.0 9.5
74

Albania

2.0 4,030 -12.3 3.0
75

Morocco

4.3 3,054 -8.8 32.3
76

Indonesia

6.5 3,495 0.2 248.6
77

Armenia

4.4 3,305 -12.3 3.0
78

Zambia

6.6 1,425 0.5 13.8
79

Jamaica

1.5 5,562 -13.7 2.9
80

Cape Verde

5.0 3,798 -15.3 0.5
81

Sri Lanka

8.2 2,835 -6.8 21.5
82

Ghana

13.6 1,570 -7.4 24.7
83

Lebanon

1.5 9,904 -25.9 4.1
84

Seychelles

4.9 11,711 -21.5 0.1
85

Bosnia and Herzegovina

1.7 4,821 -8.8 3.9
86

Guyana

4.2 3,343 -9.4 0.7
87

Philippines

3.7 2,370 3.1 103.8
88

Madagascar

0.5 467 -24.9 22.0
89

Egypt

1.8 2,781 -2.4 83.7
90

Serbia

1.8 6,203 -9.2 7.3
91

Dominican Republic

4.5 5,530 -8.0 10.1
92

Moldova

6.4 1,967 -11.4 3.7
93

Mozambique

7.1 535 -11.1 23.5
94

Kenya

5.0 808 -10.9 43.0
95

Paraguay

3.8 3,635 -2.3 6.5
96

China

9.2 5,445 2.8 1,343.2
97

India

7.2 1,489 -2.2 1,205.1
98

El Salvador

1.4 3,702 -5.2 6.1
99

Guatemala

3.8 3,178 -3.4 14.1
100

Liberia

6.4 281 -65.3 3.9
Rank
Name
GDP Growth (%)
GDP/Capita ($)
Trade Balance as % of GDP
Population (mil)
101

Lesotho

4.2 1,106 -21.7 1.9
102

Senegal

2.6 1,119 -11.8 13.0
103

Malawi

5.5 371 -12.8 16.3
104

Ukraine

5.2 3,615 -5.5 44.9
105

Russia

4.3 13,089 5.5 142.5
106

Pakistan

2.4 1,194 0.1 190.3
107

Tanzania

6.7 529 -9.7 46.9
108

Mali

2.7 669 -9.6 15.5
109

Vietnam

5.9 1,411 -1.5 91.5
110

Nigeria

7.2 1,452 5.0 170.1
111

Tajikistan

7.4 935 -2.1 7.8
112

Cambodia

6.1 900 -8.7 15.0
113

Argentina

8.9 10,941 42.2
114

Burkina Faso

5.6 600 -4.2 17.3
115

Sierra Leone

5.3 374 -42.0 5.5
116

Uganda

6.7 487 -11.5 33.6
117

Bangladesh

6.1 735 -0.3 161.1
118

Suriname

4.5 8,292 9.0 0.6
119

Nicaragua

4.7 1,243 -33.6 5.7
120

Benin

3.1 802 -8.5 9.6
121

Burundi

4.2 271 -11.0 10.6
122

Ecuador

7.8 4,569 -2.7 15.2
123

Swaziland

0.3 3,725 -5.3 1.4
124

Kyrgyzstan

5.7 1,075 -3.0 5.5
125

Honduras

3.6 2,226 -8.7 8.3
126

Nepal

3.5 619 -2.3 29.9
127

Bolivia

5.1 2,421 3.0 10.3
128

Algeria

2.5 5,244 11.2 37.4
129

Gabon

5.8 11,114 20.6 1.6
130

Gambia

3.3 625 -10.6 1.8
131

Iran

2.0 6,200 8.7 78.9
132

Cote d’Ivoire

-4.7 1,195 -1.1 22.0
133

Yemen

-10.5 1,361 -5.1 24.8
134

Mauritania

3.6 1,151 -13.5 3.4
135

Ethiopia

7.5 374 -5.2 91.2
136

Haiti

5.6 726 -28.7 9.8
137

Cameroon

4.1 1,271 -5.3 20.1
138

Venezuela

4.2 10,810 8.6 28.0
139

Zimbabwe

9.3 776 -6.3 12.6
140

Chad

1.6 823 -30.2 11.0
141

Guinea

3.6 502 -11.0 10.9

Comments are closed.

Increase your website traffic with Attracta.com