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1. The Implications of Financial Development for Economic Growth in CEMAC

Author:
Jean-Cedric Kouam
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
In recent years, the Economic and Monetary Community of Central Africa (CEMAC) has experienced sluggish economic growth. This has fallen from 4.86% in 2010 to 0.04% in 2021 (World Bank, 2021), a drop of 4.82 percentage points in a decade. In addition to the high vulnerability of economies to exogenous shocks, several economists such as Asteriou & Spanos (2019) attribute the slowdown in growth to the underdevelopment of the financial sector. In CEMAC, the access of populations to mobile money or commercial bank deposit services has undoubtedly become insufficient to keep economies on a sustainable and inclusive growth path. This article reviews the evolution of financial development indicators in the CEMAC zone since 2013, and its impact on the performance of states in terms of economic growth. We use secondary data collected from the World Bank and the Bank of Central African States (BEAC), between 2013 and 2021. The analysis provides public authorities in CEMAC with arguments to promote financial development in the sub-region to boost economic growth, and better take advantage of the opportunities of the African Continental Free Trade Area (AfCFTA). The paper is structured in two sections. Section 1 presents the evolution of financial development indicators in CEMAC and section 2, the implications for economic growth and sustainable development.
Topic:
Development, Regional Cooperation, Finance, Economic Growth, and CEMAC (Central African Economic and Monetary Community)
Political Geography:
Africa and Central Africa

2. Financial Autonomy of Decentralized Local Authorities and Local Development

Author:
Herve Ondoua, Bin Meh, Boris Andzanga Ndzana, and Jean-Cedric Kouam
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The financial autonomy of Decentralized Territorial Collectivities (DTCs) is today considered as the foundation of local governance. It confers decision-making power in financial matters to municipalities and regions, as well as a certain level of independence in the management of the resources at their disposal. In Cameroon, the general principles of financial autonomy are defined in the law on the General Code of DTCs, in particular in the Fifth Book, which repeals the law establishing the financial regime of local authorities and that on the financial regime of the State. Thus, financial autonomy should enable DTCs to develop by using their own resources in improving the living conditions of their populations. Despite these powers, DTCs still depend for the most part on income from municipal taxes and income transferred by the State. However, DTCs in Cameroon have real economic and financial potential but not a degree of financial autonomy that would allow them to accelerate the development of their locality. This reflection is aimed at local elected officials, political authorities, government authorities and civil society, with the aim of examining the effectiveness of financial autonomy in the face of the economic and financial potential of DTCs and their ability to implement their own local development projects. This article relates financial autonomy and local governance, on the one hand, and shows how financial autonomy is a factor of valorization of local resources, on the other hand.
Topic:
Development, Government, Finance, Local, Decentralization, and Autonomy
Political Geography:
Africa and Cameroon

3. What Synergy of Action in the Fight Against Corruption in Cameroon?

Author:
Theophile Nguimfack Voufo
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The phenomenon of corruption is growing so much in Cameroon, to the point where we must be careful that it does not become a characteristic of Cameroonian identity. Cameroon has twice held the rank of the highest corruption index in the world.[1] However, the will of the public authorities to put an end to it is matched only by the determination of the actors of corruption to escape the meshes of the control mechanisms. Given the government strategy and the proliferation of organizations fighting against corruption, one could expect a significant reduction of this scourge in Cameroon. But like a hydra, corruption remains a major problem in Cameroonian society. A substantial literature has been able to highlight the strengths and weaknesses of administrative, political, and jurisdictional bodies in the fight against corruption.[2] Among other weaknesses are prominently the subordination of the power of sanction to the will of the president of the Republic, the politicization of special operations to fight against corruption, and the lethargy of certain control bodies. The creation of the NACC, an organization specializing in the fight against corruption, has created hope in Cameroon. But, the decree fixing its attributions does not give it its own power of sanction. Consequently, NACC limits itself to noting the facts of corruption and reports them to the public authorities or seizes the judge by denunciation. This technique of referral by denunciation was mainly oriented toward the judicial judge. In practice, however, NACC had to experiment with referral to the Audit Bench of the Supreme Court, which opens up the prospect of collaboration between these two bodies in the fight against corruption in Cameroon. The question arises as to how NACC and the jurisdiction of accounts can combine their actions in the fight against corruption in Cameroon. After analysis, it appears that the ways of functional collaboration between the two organizations exist (I); however, they require some operational coordination (II).
Topic:
Corruption, Courts, Bureaucracy, and Efficiency
Political Geography:
Africa and Cameroon

4. The Russian-Ukrainian War: An Opportunity to Strengthen the AfCFTA

Author:
Steve Tametong and Venessa Aboudi
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The world had hardly covered from the horrors of the COVID-19 pandemic when it was once again tested on February 24, 2022, by the outbreak of war between Russia and Ukraine. The consequences of this war are quite significant for humanity. On the economic level, the Russian-Ukrainian conflict has highlighted the disadvantages of globalization, understood as a process marked by the interconnection and interdependence of world economies. The inflationary shock and the food crisis resulting from the inoperative nature of import channels for certain basic necessities from Russia and Ukraine have demonstrated the fragility of the economies. With regard to African countries, in particular, the prices of several basic food products (wheat, flour, rice, maize, bread, vegetable oil, etc.) have risen sharply. Indeed, most African countries are almost dependent on the import of agricultural products and seeds from the two belligerent countries. These imports correspond to 35 billion US dollars of imports each year (1). This appears to be an incongruity given the extent of arable land on the African continent. The low production and especially processing capacity increases the dependence of African economies on the import of these basic products. The outbreak of the Russian-Ukrainian conflict makes it possible to question the economic resilience of African States, that is to say, their “capacity [ to] keep output close to [their] potential despite a shock ” (2). Above all, it offers the opportunity to analyze the economic and commercial potential of the AfCFTA in the process of building the resilience of African economies to external shocks. Indeed, the AfCFTA was officially launched in January 2021 with the main objective of “creating a single market for goods and services facilitated by the movement of people in order to deepen the economic integration of the African continent…” (3). This policy note is structured around the idea that the Russian-Ukrainian conflict, in view of its socio-economic consequences on the African continent, offers an opportunity for African countries to work toward the strengthening of the AfCFTA. So that it appears as a real pole of competitiveness and inter-African trade likely to counter the shocks and uncertainties of the dynamics of world trade. Before analyzing the AfCFTA as a pole of production and export of African products (II), it is necessary to take stock of the socio-economic consequences of the Russian-Ukrainian war on African economies (I).
Topic:
Security, International Trade and Finance, Military Strategy, Free Trade, Peace, and Russia-Ukraine War
Political Geography:
Africa, Russia, Europe, and Ukraine

5. Entrepreneurship, Youths, and Women Economic Inclusion in Cameroon

Author:
Laurent Brice Nsengue, Bin Joachem Meh, and Jean-Cedric Kouam
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Bentham’s theory of utilitarian morality leads us to know that the purpose of economic activity is to ensure social progress for the happiness of the greatest number. Thus, excluding people from an economic system without considering their interests is considered a destruction of the common good. According to the United Nations (1962), population is one of the most important factors of economic productivity, as it influences the rate of development of a country. Women represent 49.6% of the world’s population and young people aged 10 to 24 represent 15.5% of the world’s population (UN World Youth Report, 2020; World Bank, 2020). In Cameroon, youth and women represent more than 60% of the population, but remain the most economically excluded (BUCREP, 2005). This reality appears to be a challenge for a country that wants to be an emerging country by 2035. The main objective of this paper is to show the role that entrepreneurial development could play in promoting the economic inclusion of youth and women in Cameroon. It is expected to raise awareness among public authorities as well as the private sector of the importance of economic inclusion of youth and women through entrepreneurship development. Based on studies carried out by credible international and local institutions, we focus on the challenges of entrepreneurship in the context of the economic inclusion of youth and women and the opportunity of entrepreneurship for the economic inclusion of young people and women in Cameroon.
Topic:
Economics, Women, Entrepreneurship, Discrimination, Youth, Equality, and Inclusion
Political Geography:
Africa and Cameroon

6. Universal Basic Income: A Primer for Poverty Reduction in Africa

Author:
Bin Joachem Meh, Ntoubia Larissa, and Ondoua Herve
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Universal basic income (UBI) scheme provides regular payment in cash to everyone in the economy irrespective of their social, economic, financial, and political status. UBI has a direct effect on poverty reduction; this implies that providing cash to everyone in the society irrespective of their financial status will reduce the rate of poverty as citizens will be able to meet basic needs such as food, housing, and clothing especially if this basic income amount is above the poverty line. For others, UBI will only increase inequality and poverty especially in developing countries who lack finances to provide such income to everyone in the society (Robert, 2019). UBI is a simple and practical solution to eradicating poverty, by giving everyone a minimum income, regardless of whether they are young, old, employed or unemployed, the government can tackle poverty reduction (Centre for Social Justice, 2018). More recently UBI has been a major issue of concern and it is seen as the answer to wider problems of technological unemployment, wealth inequality, mental health stability and social mobility. In India, UBI improved mental and physical health and in Namibia UBI program reduced household poverty from 76% to 37% in one year (Johanna, 2014). The high poverty rate and the scanty nature of the UBI literature in Africa makes this study an important contribution to the body of knowledge and further enable policy makers to reflect on the implementation of UBI principle. The objective of this paper is to analyze the effects of universal basic income on narrowing the poverty gap in Africa. The rest of the paper will bring out the role of UBI in poverty reduction, and propose some policy recommendations for the introduction of the UBI in Africa.
Topic:
Poverty, Universal Basic Income, Humanitarian Crisis, Wages, and Income
Political Geography:
Africa

7. The African Continental Free Trade Area: A boon for the “Africa We Want” by 2063?

Author:
Jean-Cedric Kouam
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
One of the major objectives set by the African Union (AU) in Agenda 2063, is to achieve a “prosperous Africa, based on inclusive and sustainable growth”. To ensure the prosperity of the people, especially of women and youth, member states have, in the first ten years of the adoption of this agenda, taken a number of initiatives to strengthen economic integration of the continent. Among these initiatives, the implementation of the African Continental Free Trade Area (AfCFTA) in January 2021, occupies a prominent place. In launching the AfCFTA, and making it effective, the intention of the AU is to overcome the historical fragmentation and isolation of the various African economies. The challenge is to open them up to new global trade opportunities and improve transport and communication links across the continent. However, not all AU member countries have ratified this major project. The objective of this article is to take stock of the economic integration process that has been set in motion with the effective entry into force of the AfCFTA. It highlights, on the one hand, the main reasons that justify the reluctance of states that have not yet signed the AfCFTA agreement and, on the other hand, outlines the opportunities offered by AfCFTA for an Africa that wants to emerge as a strong, united and influential player and partner on the world stage.
Topic:
International Trade and Finance, Regional Cooperation, Free Trade, and African Union
Political Geography:
Africa

8. Cameroon: The State’s Transfer of Powers to the Regions

Author:
Pacome Vouffo
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
If there is one thing that is hardly debatable in legal science, it is the evolution of law through constitutional or legislative textual reform on a given issue. The issue of decentralisation in Cameroon is an illustration. The constitutional and legislative dynamics since independence reflect this, particularly with the inclusion of local authorities in the Constitution of 4 March 1960, the 1974 laws applicable to the Communes and their subsequent amendments , the constitutional reform of 18 January 1996 explicitly raising decentralisation to the constitutional rank , the laws of 22 July 2004 on decentralisation and today Law No. 2019/024 of 24 December 2019 to lay down the General Code of Regional and local authorities(CGCTD). This Code enshrines an evolution in decentralisation law and sets out the terms and conditions for the exercise by the State of powers transferred to regional and local authorities in general and to the Regions in particular. From a legal point of view, this reframing does not seem to have aroused the interest of the doctrine in the same way as the question of the special regime for the North-West and South-West Regions, which has been addressed . In view of its scope, however, it is easy to admit that the legislator has made a significant change. It is necessary to examine the contours of this evolution in order to untangle the threads and consequently set the markers for understanding, following an approach based solely on the Regions as a framework for analysis and not on all the Regional and Local Authorities. Indeed, the choice of the Regions as the analytical framework is not insignificant. As the first level of decentralisation in Cameroon, the Region has only recently been established since its consecration in 1996. It is the characteristic of regionalism instituted since the constitutional reform of 18 January 1996. This regionalism is legally translated by the erection in 1996 of administrative provinces into Regions, headed by a President, an indigenous personality of the Region elected by his peers , and an elected Regional Council whose political colouring prints a mixture of traditional chiefs with the other departmental Councils. Compared to the Commune, therefore, the Region is a new feature of decentralisation which finds its basis in the controversy that took place during the 1996 reform on the form of the State between the supporters of the centralised State and those of the federal State. According to the doctrine, it is a point of agreement between these two (02) trends. When we know that regionalism as a technique for organising the unitary State is an advanced version of decentralisation that could border on federalism without being one, we can only subscribe to the idea that the Region is the point of agreement that would have federated the actors of the 1996 reform. With these considerations in mind, the attention given to the Region is justified. Following this logic, it must be agreed that the exercise by the State of powers transferred to the Regions did not disappear with the advent of the CGCTD, as some authors have suggested. It was maintained, however, with a reform of the legal framework that underpins an evolution in this area. If yesterday, the exercise by the State of powers transferred to the local and regional authorities in general and to the Regions in particular was legally self-evident (I), in the current state of Cameroonian decentralisation law, it is now only a possibility (II).
Topic:
Governance, Reform, State, and Local
Political Geography:
Africa and Cameroon

9. The Regional Administrative Structure in Cameroon

Author:
Ebenezer David Ngahna Mangmadi
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Be it from a common law or a special status, a regional and local authorities[1] resulting from the constitutional reform of January 18, 1996[2], has an administration in charge of instructing and implementing the decisions taken by its executive organs. Under the authority of a secretary general who is appointed by the President of the Republic[3], it is implemented according to the standard organisation set out in decree n°2021/742 of 28 December 2021. It should be noted that this important legal text taken in application of article 496 of law n°2019/024 of 24 December 2009 on the general code of regional and local authorities (hereafter CGCTD), has greatly contributed to the acceleration of the process of establishing the regions initiated by the elections of December 6, 2020. The configuration of the standard model of regional administration that it suggests, highlights a complex combination of structures with diverse functions, the articulation of which may vary from case to case. This organisational scheme reveals the extent of the tasks that a regional administration must undertake, but it is not easy to access. As such, it deserves to be explained. This note is intended for professionals in the field of decentralisation, researchers and citizens seeking information. More clearly, the aim is to inform the reader about the subtleties of the structuring of the regional administration. To achieve this, it relies on an interpretive approach to the texts, mainly, the law n°2019/024 of 24 December 2019, and the decree of 28 December 2021. After presenting the different structures of the regional administration (I), the text will dwell on their articulation (II).
Topic:
Government, Local, Decentralization, and Regionalism
Political Geography:
Africa and Cameroon

10. Analysis of Cameroon – Nigeria Trade and Prospects for the African Continental Free Trade Area

Author:
Henri Kouam and Vera Kum
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Free trade between Cameroon and Nigeria is about reducing barriers to cross-border trade between the two countries by allowing traders on both sides of the spectrum to explore a larger market and private sector producers to expand their business. This policy brief examines the nature of Cameroon and Nigeria’s trade whilst illustrating the benefits of free trade on living standards, employment, and income inequality. It recommends that Cameroon and Nigeria cooperate on trade facilitation measures to increase the benefits of the African Continental Free Trade Area.
Topic:
Economics, International Trade and Finance, Regional Cooperation, Bilateral Relations, and Free Trade
Political Geography:
Africa, Nigeria, and Cameroon

11. Trade Liberalization and Economic Development: Lessons for Africa

Author:
Henri Kouam and Fabien Sundjo
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
What happens when countries lower their tariff & import duties and open up their economy to other countries? This policy brief looks at the impact of trade liberalization on economic development, drawing from broad-based international literature. It shows how free trade can positively impact economic development, boost incomes, and improve standards of living. The African Continental Free Trade Area will stimulate intra-regional trade and help countries like Cameroon address acute development challenges. However, the expected positive results will depend on its successful implementation.
Topic:
Development, Economics, Regional Cooperation, Trade Liberalization, Trade, Economic Development, and Liberalism
Political Geography:
Africa

12. The African-France Summit and an Overview of its Recommendations Since 1973

Author:
Fabien Sundjo
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
France’s earliest profit-making involvement in Africa in the business of buying and transporting slaves started in the 17th century when the local Indian population proved unable to work in plantations in America compared to black Africans. France’s interest in Africa reached its zenith in the 19th and early 20th centuries when France acquired a gigantic African empire. Though several reasons could explain the scramble for Africa by France, we present herein the three most important. First, the defeat of France in the 1870 Prussian war in which she lost influence and a reduction in her international ego. Second, the anxiety to implement Colbert’s mercantilist philosophy emphasized that any rising industrial power required to have both the source of raw materials and market extension under her control. Third and finally, as Europeans scrambled for Africa, France feared their traditional enemies could annex a remarkable share of the territory. Hence, from the outset, it was not the financial gains that many thoughts motivated France’s involvement in Africa but politics and national ego. It will only be later that France saw Africa as a cheap source of military manpower that could help balance demographic stagnation in France. This perception will later be reinforced by her experience in the two World wars. In this light, Iliffe (2007) holds that French colonial policy was characterized by the exploitation of rich resources from Africa. In the midst of all these benefits from colonization in Africa, Charles de Gaulle‘s decision to retain influence in Africa after decolonization in 1960 was driven by the need to persist with these benefits under neo-colonization. According to Abdurrahim (2014), in Africa, France uses a realist foreign policy in which states shape their foreign policies based on their national interests. To facilitate the implementation of this realist foreign policy, France will design the Franco-African summit that will cement France’s influence in her former colonies to date. Were France’s policies put in place through the Franco-African summits shaped to benefit France solely? This paper aims to present the Franco-African Summit and carry out a stocktake of France’s commitments through recommendations from the Franco-African Summit.
Topic:
Security, Foreign Policy, Diplomacy, International Cooperation, and Regional Cooperation
Political Geography:
Africa, Europe, and France

13. An Analysis of the Effects of Oil Price Fluctuations on the Conduct of Monetary Policy in the Economic

Publication Date:
03-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
For many years, the economies of the Economic and Monetary Community of Central Africa, like most of the world’s economies, have been confronted with numerous fluctuations in the price of raw materials on international markets. For these predominantly extroverted economies, that is, those dependent on export earnings, these price variations have consequences for their macroeconomic performance and the conduct of economic policy. Like most economic crises in the world in the past, the pandemic caused by the new Coronavirus that has been raging since 2020 has also brought with it many changes. Between the confinement measures taken by public authorities to curb the spread of the virus and the resulting slowdown in global economic activity, there has been an inevitable significant drop in global oil demand. The direct consequence of such a scenario is the fall in oil prices on world markets, which is very bad news for the public finances of oil-exporting countries. The main objective of this report is to analyze the effects of oil price fluctuations on the conduct of monetary policy in the CEMAC. We start from the observation that oil shocks are the source of strong inflationary pressures in these economies. It is the responsibility of monetary policy to ensure price stability. Thus, after analyzing the effects of oil price fluctuations on the world economy as well as the macroeconomic and financial implications of these fluctuations on the economies in 2020, we use a Vector Auto Regressive model to analyze the contribution of oil price shocks on the historical dynamics of macroeconomic variables in the various CEMAC countries between 2001 and 2020. Then, we use a Panel Smooth Transition Regression model to analyze the impact of oil price changes on monetary policy in the CEMAC.
Topic:
Economics, International Political Economy, Oil, Natural Resources, Monetary Policy, Global Markets, Inflation, and Macroeconomics
Political Geography:
Africa, Cameroon, and Central Africa

14. Fiscal Policy Letter No5: Improving Financial Inclusion To Broaden The Tax Base In Cameroon

Author:
Jean-Cedric Kouam and L.B. Bongbinsin
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
For several months, Cameroon has been facing the ravages of the pandemic caused by the coronavirus. To stop the spread of the virus, the Cameroonian authorities in April 2020 announced a series of fiscal easing measures to help companies and households in difficulty. Estimated at more than 114 billion CFA francs according to the Director-General of Taxation, the decisions taken have profoundly impacted public finances. Indeed, well before the pandemic, the country was already facing a high risk of external debt overhang (IMF, 2018) and immense security challenges in the North and the Anglophone regions. Despite this constraining socioeconomic and political context, the state must find the necessary and sufficient resources to ensure its proper functioning and territorial integrity. This fiscal policy letter proposes through analyzes a way for the government of Cameroon to increase its tax revenues in the coming years without penalizing growth: improving financial inclusion. The goal is to eliminate all constraints that exclude the most disadvantaged from full participation in the financial sector. The letter is structured around six key points. First, we provide an overview of Cameroon’s financial inclusion situation. Second, we analyze the factors that explain economic agents’ access to financial services, the transmission mechanisms between the financial and formal sectors, and the barriers to financial inclusion in Cameroon. Our results show that a deepening of the financial system would likely positively affect tax mobilization in Cameroon. Estimates show that a 10% increase in financial assets would lead to a 1.87% increase in tax revenue, equivalent to CFAF 49.70 billion – based on the level of tax revenue projected in the 2021 budget law. Similarly, a 10% increase in the number of secure servers – better access to the internet – would lead to a 1.1% increase in tax revenue, equivalent to CFAF 30.62 billion. This improvement in access to financial services for all economic agents – households, businesses – requires the public authorities to make the current regulations more flexible and increase the banking network’s density. This includes the development of payment systems, the construction of quality infrastructures, the definition of mechanisms to limit massive illicit capital flight, and the multiplication of consumer/investor protection guarantees.
Topic:
Development, Infrastructure, Governance, Finance, and Tax Systems
Political Geography:
Africa and Cameroon

15. Information Asymmetry: A Major Obstacle to Credit Provision In Cameroon

Author:
Jean-Cedric Kouam and Maurice Tchegho
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
According to the report published by the World Bank, which ranks the world’s economies Doing Business (2020) according to the ease of doing business, Cameroon ranked 167th out of 190 economies, a loss of one place compared to 2019. However, the country gained 0.1 point by recording a score of 46.1 points out of the 100 at stake. According to the World Bank, this slight increase is the result of the improvement of one of the ten indicators taken into account in the calculation of the score, that relating to access to credit. Indeed, with the help of the Economic and Monetary Community of Central Africa (CEMAC), Cameroon has established a framework for the granting of licenses and the operation of credit bureaus (1) which has enabled it to rank 80th in terms of obtaining credit, with a score of 60 out of 100 for obtaining credit and 6 for the depth of information on credit. Conversely, the score for credit bureaus is zero (World Bank, 2020). Despite this notable progress, particularly with regard to access to credit information, information asymmetry remains a serious problem in the relationship between the credit applicant and the credit provider in Cameroon. Defined as the lack of communication of accurate and reliable information from companies, this translates into the fact that one of the contracting parties holds information that it decides, voluntarily or not, to transmit to the other party. This constitutes an obstacle to project financing. From this situation, a major concern arises: What are the causes and consequences of informational opacity in the credit granting process in Cameroon?
Topic:
Communications, Finance, Business, and Credit
Political Geography:
Africa and Cameroon

16. A Look at the Legal Framework and Constraints of Credit Granting In Cameroon

Author:
Steve Tametong and Martial Nteme
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The realisation of an investment depends, in certain cases, on the use of credit. The granting of credit requires a prior credit operation. According to section 3 of Law No. 2019/021 of 24 December 2019 to lay down certain rules relating to credit activity in the banking and microfinance sectors in Cameroon, a credit operation means “the act by which a reporting institution, acting for consideration, advances or promises to advance funds to a natural or legal person, or makes a commitment by signature in the interest of the latter”. In reality, the credit applicant is faced with challenges that stem partly from his or her ignorance of the legal framework for granting credit in Cameroon. It is therefore necessary for each credit applicant to master the legal environment that governs the granting of credit. This is the first articulation of this analysis (I). The second section examines the conditions and constraints of credit granting (II). The third section sets out recommendations for improving the framework for granting credit in Cameroon (III).
Topic:
Infrastructure, Finance, Investment, and Credit
Political Geography:
Africa and Cameroon

17. Is Somaliland the Symbol of Democracy in the Horn of Africa?

Author:
Francis Tazoacha
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Democratic principles and practices are inherent in a people, especially in people who are patriotic and have an urge for prosperity and posterity. It is from this spectrum that participatory democratic practices, governance, and human rights strive in such societies for sustainable development. These democratic principles are primarily concerned with ensuring that citizens are afforded an opportunity to participate or otherwise be involved in decision-making on matters that affect their lives. This political participation is indispensable for the realization of a just and transparent society. It is probably from this premise that the Somalilanders’ democracy has evolved.
Topic:
Civil Society, Democratization, Democracy, and Social Order
Political Geography:
Africa and Somaliland

18. The National FDI Observatories, a Bulwark Against the Imbalance Effects of Chinese FDI In Africa?

Author:
Joel Moudio and Steve Tametong
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Sino-African relations are structured around three axes: trade, Chinese financing in Africa and foreign direct investment (FDI). The latter is the key element in the multinationalisation of companies. Between 2003 and 2018, Chinese FDI in Africa dropped from USD 75 million to USD 2.7 billion1 ; this is in contrast to the period 2004-2008 when Africa attracted about 10% of Chinese direct investment (Sanfilippo, 2010), with a peak in 2008 of about USD 5.5 billion “due to the purchase of 20% of the shares of the Standard Bank of South Africa by the Industrial and Commercial Bank of China (ICBC)”.2. These include: cross-border mergers and acquisitions, intra-group loans and borrowing, and the creation of subsidiaries abroad. While Chinese FDI in Africa is growing exponentially and is a development boon for African countries (1), it is also partly a “danger” for African economies. The case of Cameroon will illustrate this (2). In this context, the establishment of a National FDI Observatory (NFOID) under the joint action of civil society becomes a necessity in order to compensate for the State’s inadequacies in terms of monitoring and surveillance of the perverse effects of FDI (3).
Topic:
Civil Society, Economics, Hegemony, and Foreign Interference
Political Geography:
Africa and Cameroon

19. Is Cameroon a Police State? All About the Use of Administrative Custody

Author:
Steve Tametong
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The wind of liberal democracy will not have swept away all the vestiges of the police state long maintained in Cameroon under the cover of Ordinance No. 62/OF/18 of March 12, 1962 on the repression of subversion. Indeed, this legislation had made impossible any democratic political life and had emptied of its substance the enjoyment and exercise of fundamental rights and freedoms guaranteed by the Constitution. Today, administrative custody seems to be one of the vestiges that has survived the passage of time. A unilateral prerogative of arbitrary deprivation of freedoms formerly held by the administrative authorities, administrative custody was formally instituted by law n°90/054 of 19 December 1990 on the maintenance of public order. In application of this law, and under the pretext – justified or false – of maintaining public order, the administrative authorities can request persons and property in the legal forms, request the forces of order, control the movement of goods and persons, but above all “take measures of police custody for a period of 15 days, renewable, within the framework of the fight against organized crime. This deprivation of liberty ordered by the administrative authorities is commonly referred to as “administrative custody”, which distinguishes it from judicial custody ordered in the context of criminal proceedings. At a time when most democratic systems are implementing a legal and institutional framework favorable to the rule of law and the development of fundamental rights and freedoms, it is not without interest to question the appropriateness of maintaining administrative custody in Cameroonian positive law, especially in normal times. Before mobilizing the arguments in favor of abolishing it (I), it is appropriate to first dwell on the difficulties it poses in the Cameroonian context (II).
Topic:
Democracy, Liberalism, Police State, Illiberal Democracy, and Administration
Political Geography:
Africa and Cameroon

20. The Financial Decentralization Of Local Governments Tested By The Principle Of Cash Flow In Cameroon

Author:
Theophile Nguimfack Voufo and Steve Tametong
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
In the face of the multiple socio-political crises that Cameroon is experiencing, the form of the state is now being debated, against the backdrop of the issue of governance. Seen in its political, administrative or financial dimensions, state governance has failed miserably in terms of socio-economic development issues. To remedy this, the public authorities recognize the need to complete the decentralization process. Is this commitment, which is regularly reinforced by the media, a way out of the crisis? From a legal point of view, the evolution of the decentralization process is marked by two fundamental requirements: the transfer of powers on the one hand, and the subsequent transfer of resources to exercise these powers on the other. Since 2010, the central executive has been committed to the transfer of powers to local authorities. However, the principles of complementarity, subsidiarity and even concomitance mark the return of the state, whereas decentralization implies a priority of action for the decentralized communities. In this respect, the transfer of powers is accompanied by the transfer of resources, in particular local taxation and allocations from the State budget. Local taxation, grants and own resources acquired by decentralized authorities constitute the basis of financial decentralization. It requires that the resources transferred to local governments be freely managed. This refers to the ability to mobilize these resources without being hindered by state bodies. This freedom remains an illusion in the presence of the principle of the unity of the treasury. This principle links the treasury of decentralized communities to that of the State, which can have several implications for the financial freedom of action of these communities. Given the current challenges of decentralization in Cameroon, the question arises as to whether the unity of the treasury is compatible with the financial decentralization of decentralized local authorities. Questioning the relevance of this principle allows us to verify whether this classic rule is not already obsolete in Cameroon. Analysis shows that the principle of the cash unit is incompatible with financial decentralization (I) and should be reconsidered (II).
Topic:
Government, Finance, Local, and Decentralization
Political Geography:
Africa and Cameroon