A recently published survey on 500 enterprises also suggested measures to beat the tide.
It is no longer a secret. Cameroon’s business environment is not conducive for the high level of local and foreign investment the country needs to boost economic growth. The country office of the International Labour Organisation (ILO) in Yaounde believes that in spite of reforms to create an enabling environment for enterprises, much still needs to be done. Such was the conclusion of a survey on “Enabling Environment for Sustainable Enterprises” conducted on 500 enterprises nationwide in 2012. The report of the survey presented on November 8, 2013 in Yaounde also proposed specific axes of reforms.
Simplifying Legal, Administrative Framework
Reducing costs incurred in the multitude of complex legal and administrative formalities to which enterprises must comply warrants measures such as simplifying procedures and reducing transaction costs in the creation and registration of enterprises, acquisition of licences, property rights systems, fiscal regimes, settlement of disputes and customs procedures.
Productivity, Competitiveness
The report notes that Cameroonian enterprises have difficulties generating gains in productivity because they are faced with operational obstacles. Considering needs expressed by enterprises, ILO proposes measures such as accelerating investments in infrastructure and improving capacities for planning and executing projects, prioritising the build-up of human capital by introducing changes in the system of education and vocational training while promoting the dissemination of technologies of information and communication.
Encouraging Entrepreneurship
ILO believes that priority reforms ought to be concentrated on the training of entrepreneurs and the accompaniment of enterprises particularly at the start-up phase. Concretely, this involves giving them pertinent advice that is adapted to their sector of activity, training them in financial and commercial management tools as well as informing them on developing distribution networks especially with large-scale enterprises or exportation markets. Facilitating Access to Financial Services
The majority of enterprises in Cameroon are still excluded from formal financing spheres because banks are still reluctant to grant loans particularly to micro and small enterprise due to high risks when compared to expected profitability. ILO suggests reforms aimed at reducing frictions which prevent access to financial services and strengthening the regulatory framework governing financial services including modes of alternative funding such as leasing and capital investment, amongst others.
Informal Enterprises
ILO notes that the informal sector represents a greater portion of the Cameroonian economy. This constitutes a source of inefficiency for the economy. Adapted measures are thus necessary to accompany actors of the informal sector and improve their conditions with the aim of enabling their integration.
Such reforms, ILO believes, will greatly affect the sustainability of enterprises and act as an indicator of an improved business environment.
