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Begin New Search Topic Economics Political Geography Africa Content Type Special Report Publishing Institution The Nkafu Policy Institute Publication Year within 10 Years Publication Year within 5 Years

1. Should We Consider A Post-Covid-19 Reform Of The VAT In Cameroon?

Publication Date:
03-2021
Content Type:
Special Report
Institution:
The Nkafu Policy Institute
Abstract:
The COVID-19 pandemic so far has had a profound impact on the global economy. The containment measures adopted by governments to curb the spread of the disease have curtailed business activities, making it impossible for companies to adequately meet their tax obligations. As a result, forecasts for customs revenues and internal tax resources have been revised downward, mainly due to the closure of borders. Collected both at the borders and within the country, Value Added Taxes revenues have naturally been very negatively affected by the crisis. In Cameroon, losses related to value added tax in 2020 were estimated at CFAF 298.017 billion, representing 50.73 percent of recorded tax losses, which is hardly surprising. Value-added taxes are identified as the main source of tax revenue in Cameroon. They were estimated at 44.73% of tax revenue in 2019 and about 7% more than in 2016. The importance of VAT in tax revenue mobilization requires an examination of the Cameroonian tax system, particularly the factors that could explain a reform of the tax. Moreover, given that Cameroon is at high risk of external debt distress (IMF, 2018), there is an urgent need to find new ways to ensure the continued sustainability of public finances. This Tax Policy Letter analyzes the rationale for VAT reform in Cameroon. First, we present the severity of the economic repercussions of the coronavirus health crisis at the level of VAT revenues in Cameroon. Noting that VAT is the main source of indirect tax revenue – 60.19% in 2019 compared to 54.54% in 2016, for example – we then examine the guiding principles that govern its collection and application in Cameroon. A careful examination of these principles has allowed us to analyze the benefits associated with a reform of this tax on final consumption.
Topic:
Economics, International Political Economy, Tax Systems, Macroeconomics, Fiscal Policy, and Revenue Management
Political Geography:
Africa and Cameroon

2. The Declaration and Payment of Taxes in Cameroon: A Critical Appraisal

Author:
Dr. Louis-Marie Kakdeu, Ulrich D’POLA KAMDEM, and Dinga Tambi
Publication Date:
05-2021
Content Type:
Special Report
Institution:
The Nkafu Policy Institute
Abstract:
The Nkafu Policy Institute is delighted to share with you the results of a report that critically appraises the declaration and payment of taxes in Cameroon. Indeed, since 2004 the Doing Business Index (DBI) of the World Bank has been ranking national economies based on their performance in several domains. One of these domains includes the “paying taxes” indicator. It records taxes and mandatory contributions that medium-size companies must pay in a given year and equally measures the administrative burden of paying taxes and contributions and complying with post-filing procedures. Therefore, the weight of the tax burden remains a decisive element in the attractiveness of an economy as it encourages or dissuades national and foreign investors, widens or reduces the tax base, stimulates or refrains entrepreneurship. During the 2009 and 2016 General Census of Enterprises by the National Institute of Statistics, the following key question was asked to top management personnel: “What are the most important obstacles to entrepreneurship in Cameroon?” Taxation was cited as the first major obstacle regardless of cities, according to National Institute of Statistics reports.
Topic:
Economics, Governance, World Bank, Regulation, and Tax Systems
Political Geography:
Africa and Cameroon

3. Socio-Economic Implications of Covid-19 in Cameroon

Author:
Dr. Fuein Vera Kum and Henri Kouam
Publication Date:
06-2020
Content Type:
Special Report
Institution:
The Nkafu Policy Institute
Abstract:
The economic impact of COVID-19 will be broad-based, causing wages to fall due to social distancing and quarantine measures on the service sector. While communications and ICT-related sectors will be less affected, transport, entertainment and leisure sectors will be adversely affected, together with exports and domestic demand. Policymakers should utilise the $164 billion availed by international institutions to support SMEs and wages in the informal sector, whilst the 90 billion should be used in other to invest in the physical and digital infrastructure to support educational outcomes and employment over the medium term. Such actionable policies should accompany broader quarantine and social distancing measures.
Topic:
Economics, Health, Macroeconomics, Pandemic, and COVID-19
Political Geography:
Africa and Cameroon

4. Cameroon’s Informal Sector Put To The Test By Coronavirus (Covid-19)

Author:
Dr. Louis-Marie Kakdeu and Ulrich D’POLA KAMDEM
Publication Date:
06-2020
Content Type:
Special Report
Institution:
The Nkafu Policy Institute
Abstract:
On 6 March 2020, the first positive case of Coronavirus (COVID-19) was recorded in Cameroon. Towards the end of April 2020, the country has more than 1000 positive cases with eight (8) out of the country’s ten (10) regions affected. To block the spread of the Coronavirus in Cameroon, government’s authorities took a series of thirteen (13) measures on 17 March 2020. At the level of business enterprises, the objective of the actions taken to counter the virus was two-fold: to implement the government’s recommendations and, especially, to ensure continuity of work. For example, the use of telework has been adopted in some companies. However, while the government’s measures and those relating to telework have been widely followed in both the public and the formal private sectors, they have, nevertheless, been a real headache for the informal sector. Indeed, the informal sector in Cameroon is characterised by precarious activities, with little or no supervision, which are not covered by the National Accounting. This sector employs 90% of the active population and accounts for more than 50% of the country’s GDP according to the International Labour Organization – ILO (2017). Consequently, because of its weight in the Cameroonian economy, this article analyzes the impact of the COVID-19 pandemic on the informal sector.
Topic:
Economics, Health, Public Sector, Private Sector, Coronavirus, Pandemic, and COVID-19
Political Geography:
Africa and Cameroon

5. The Impact Of Covid-19 On Sino-African Trade Activities

Author:
Egoh Aziz
Publication Date:
06-2020
Content Type:
Special Report
Institution:
The Nkafu Policy Institute
Abstract:
The recent outbreak of COVID-19 has caused waves of horror and anxiety across many nations in the world. Considering the intense unravelling of the pandemic, no exact figure as per the number of confirmed and death cases worldwide is definite because the situation changes almost every hour. However, on April 14, 2020 3:40 GMT, Worldometer reported 210 countries and territories across the globe having a total of 1,925,179 confirmed cases, and a dead toll of 119,699 deaths. The impact of the pandemic is disastrous globally affecting a variety of sectors including the service and supply chain, as well as trade, manufacturing, and tourism. This article aims to provide a synoptic assessment of the impact of COVID-19 on Sino-African trade activities. It stresses that, if African policymakers revamp their efforts to quickly address COVID-19, the human casualty will be less and African economic growth may experience lesser shock as previewed by the IMF. On the other hand, if they relent their efforts, the human casualty will soar while the growth rate may decline. The effect of COVID-19’s outbreak in China has caused a slowdown on exports and services directed towards China.According to statistics from the General Administration of Customs of China, in 2018, China’s total import and export volume with Africa was US$204.19 billion, a yearly increase of 19.7%, surpassing the total growth rate of foreign trade in the same period by 7.1 percentage points. Among these, China’s exports to Africa were US$104.91 billion, up 10.8% and China’s imports from Africa were US$99.28 billion, up 30.8%; the surplus was US$5.63 billion, down 70.0% every year. The growth rate of Sino African trade was the highest in the world in 2018. This shows that Sino-African trade has a significant contribution to the growth of African economies.
Topic:
Economics, Health, International Cooperation, International Trade and Finance, Trade, Coronavirus, Pandemic, and COVID-19
Political Geography:
Africa, China, Asia, and Cameroon

6. Socio-economic implications of Covid-19 in Cameroon and proposals to reduce the economic fallout

Author:
Henri Kouam and Dr. Fuein Vera Kum
Publication Date:
06-2020
Content Type:
Special Report
Institution:
The Nkafu Policy Institute
Abstract:
The economic impact of COVID-19 will be broad-based, causing wages to fall due to social distancing and quarantine measures on the service sector. While communications and ICT-related sectors will be less affected, transport, entertainment and leisure sectors will be adversely affected, together with exports and domestic demand. Policymakers should utilise the $164 billion availed by international institutions to support SMEs and wages in the informal sector, whilst the 90 billion should be used in other to invest in the physical and digital infrastructure to support educational outcomes and employment over the medium term. Such actionable policies should accompany broader quarantine and social distancing measures.
Topic:
Economics, Pandemic, COVID-19, and Socioeconomics
Political Geography:
Africa and Cameroon

7. Report On The Effects Of BEAC’s Monetary Policy In Cameroon

Publication Date:
12-2020
Content Type:
Special Report
Institution:
The Nkafu Policy Institute
Abstract:
With an estimated population of about 26,709,663 in 2020, Cameroon is a Central African country bordering Nigeria, Chad, Central African Republic (CAR), Republic of Congo, Gabon, Equatorial Guinea, and the Gulf of Guinea. The country has 10 Regions, 58 Divisions and is populated by 283 ethnic groups. Because of its great climatological, mining, geographical, cultural, and human diversity, Cameroon is described as Africa in miniature. The economy of Cameroon accounts for more than 40% of CEMAC’s GDP and is the most diversified in the region. It is essentially based on the exploitation of various export products – oil, tropical woods, Arabica and Robusta coffee, cocoa, rubber, cotton, bananas, aluminum, palm oil, etc. Oil revenues represent, on an annual average, about 12% of the country’s total revenues (LFR, 2020). However, since 2009, the country has been facing a major security crisis caused by incursions by the Boko Haram terrorist sect in the Far North. They have also been facing socio-political unrest in the English-speaking regions of the North West and South West, whose security situation has deteriorated since the end of 2016. The situation remains volatile in these regions despite the holding of the first-ever regional elections. After a deceleration phase following the 2014 commodity crisis, growth in the economy of Cameroon slightly strengthened in 2018 (4.1 percent compared to 3.5 percent in 2017) before decreasing in 2019 (3.7 percent).
Topic:
Economics, Treaties and Agreements, Monetary Policy, and Macroeconomics
Political Geography:
Africa and Cameroon