Economic overview
Cameroon’s market-based, differentiated economy highlights oil and gas, timber, aluminum, farming, mining and the administration division. Oil remains Cameroon’s primary fare item, and notwithstanding falling worldwide oil costs, still records for almost 40% of fares. Cameroon’s economy experiences factors that frequently effect immature nations, for example, stale per capita pay, a moderately discriminatory dispersion of salary, a top-overwhelming common administration, endemic defilement, proceeding with wasteful aspects of an enormous parastatal framework in key areas, and a for the most part negative atmosphere for business venture.
Since 1990, the administration has set out on different IMF and World Bank projects intended to goad business venture, increment effectiveness in horticulture, improve exchange, and recapitalize the country’s banks. The IMF keeps on squeezing for monetary changes, including expanded spending straightforwardness, privatization, and neediness decrease programs. The Government of Cameroon gives sponsorships to power, sustenance, and fuel that have stressed the administrative spending plan and redirected assets from training, medicinal services, and framework ventures, as low oil costs have prompted lower incomes.
Cameroon gives huge assets to a few enormous framework extends presently under development, incorporating a profound seaport in Kribi and the Lom Pangar Hydropower Project.
Main sectors of industry
Cameroon is supplied with rich characteristic assets and stays one of the world’s driving makers of specific staples, to be specific cocoa, coffee, bananas, palm products, tobacco, rubber, cotton, maize, and cassava.
The essential area adds to over 14% of the GDP and utilizes practically 62% of the dynamic populace (World Bank). Before the advancement of the oil exchange (which alone speaks to over 8% of the GDP), horticulture was the nation’s monetary column.
Espresso and cocoa generation, which is gathered in the English-talking areas, experience the ill effects of political precariousness in the territory. Angling and ranger service are two of the nation’s extra critical exercises.
The nation has high-esteem types of timber. Notwithstanding oil and gas, Cameroon’s assets incorporate bauxite metal and iron. LNG generation is required to counterbalance the steady decrease in raw petroleum creation.
The secondary sector represents in excess of a fourth of the GDP and utilizes 9% of the workforce. The nation’s fundamental enterprises are sustenance handling, sawmill, the production of light buyer merchandise and materials.
The tertiary sector represents the greater part of the GDP (52%) and utilizes around 30% of the dynamic populace. It profits by the financial action made around enormous scale vitality ventures. The administrations area is blasting, driven by the parts of media communications, air traffic and transport.
Taxes in Cameroon
Flat rate taxation system: Sole proprietorships with an annual turnover of below XAF 10 million, except for logging companies, professional officers, and liberal professions.
Simplified taxation system: Sole proprietorships and corporate bodies with an annual turnover equal to or above XAF 10 million and below XAF 50 million.
An Additional Council Tax of 10% generally applies to CIT, Personal Income Tax, Withholding tax on income from stock and shares and VAT.
There is a 2.2% or 5.5% minimum tax in Cameroon based on turnover and depending on the tax regime of the taxpayer. The advance payment is 10% for any taxpayer that is not on the register of a tax office.
The 10% rate also applies to remunerations paid to non-salaried sales agents or representatives and agents of direct network sales.
A 15% rate is applied to taxpayers not registered with a taxation centre and engaged in import activities. This percentage will reach 20% where the taxpayer carries out the sale of in-bond goods.
Reasons to invest in Cameroon
- Cheap workforce;
- Abundant natural resources (agricultural, oil and mining);
- A diversified economy at export (oil, mining, agriculture, etc.);
- Monetary stability as the country is part of the CFA franc zone;
- The decisive effects and impact of anti-corruption policy;
- There is freedom of establishment, since in Cameroon access to the profession of trader is free.
- Equity participation, which states that foreigners can own 100% of a company.