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Begin New Search Topic Governance Content Type Working Paper Publishing Institution The Nkafu Policy Institute Publication Year within 5 Years Publication Year within 10 Years Publication Year within 3 Years

1. 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

2. 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

3. Without a Birth Certificate, We Do Not Exist! (Re)Thinking the Civil Status System in Cameroon

Author:
Pierre-Claver Kamgaing
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Curious as it may seem in the 21st century, UNICEF estimates that three out of four children in the world have never been officially registered. . In Cameroon, 66.1 percent of children remain in hiding. . In other words, they live without existing, without being recognised by the country whose citizenship they claim. This situation, which is deplorable to say the least, has consequences for both the State and the individual concerned. For the state, the civil status file is essential for the implementation of public policies, because without a mastery of demography, it is impossible to make socio-economic projections. For the child, who has the right to register his or her birth, the absence of such a document excludes him or her from the education system and from the services necessary for his or her growth, thus exposing him or her to exploitation and violence. However, it should be noted that the Cameroon civil status system is not new. It was “designed” and its foundations laid at the beginning of the 20th century by the German coloniser, whose work was continued by the French and English administrations. However, this system was designed more for the European population established on Cameroon soil than for the “natives”. Moreover, the various texts adopted by the Cameroon legislator after independence are more like a simple assembly of old provisions. Moreover, on the sidelines of the ordinary session of the National Assembly in November 2020, the problem of establishing birth certificates was not missed by the deputies. The result is the need to rethink the civil status system in order to better adapt it to the socio-political evolution of the country. But how can this be done? This necessarily involves some profound and substantial reforms. However, before devoting any substantial development to this, it would be wise to first identify the causes of the failure of the civil status system in Cameroon.
Topic:
Civil Society, Governance, Citizenship, Social Order, and Identity
Political Geography:
Africa and Cameroon

4. Urban Governance in Cameroon: Between Laissez-Faire And Faire-Laisser

Author:
Joseph MagloirenOlinga Olinga
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
From a geohistorical point of view, Cameroonian cities are characterised by what B. TAMRU (2001) describes as a “process of vulnerability“. This concept is in line with the phenomenological approach, which studies the impact of human actions on risk and its aggravation, based on the study of damage (P. PIGEON, 1994). However, urban dynamics are still poorly taken into account in the diagnosis of environmental risks. In this case, the flood risk is rarely studied in all its spatio-temporal depth: “The risk of flooding is thus most often analysed at a time “t”, according to a given hazard, on channels considered as stable”. From this point of view, starting from a diachronic analysis, the geohistorical context of Cameroon cities, particularly urban centres such as Douala (economic capital) and Yaoundé (political capital), constitutes an important key to reading the current urbanistic, social, economic and environmental challenges. Based on recent news, in particular the images of the Yaoundé VII Town Hall flooded after the downpour of 8 June 2021, this paper analyses the vulnerabilities of Cameroon cities through the prism of two variables: firstly, the socio-spatial processes that produce them and, secondly, the mechanisms that determine the capacity of cities to adapt to environmental risks. It brings to the fore the thorny issue of urban governance lato sensu. The case of the Commune of Yaoundé VII is symptomatic of urban governance in Cameroon and raises the question of whether municipal executives are definitively caught in the dilemma of “laissez-faire” and “faire laisser”.
Topic:
Economics, Environment, Governance, and Urban
Political Geography:
Africa and Cameroon

5. Optimizing the Governance and Performance of Public Enterprises In Cameroon

Author:
Steve Tametong
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Defined as economic units with legal and financial autonomy carrying out industrial and commercial activities and whose share capital is wholly or mainly held by a legal person under public law, public enterprises occupy a major place in the economic development policy of the State in Cameroon. The many reforms that have taken place in this key sector have, for the most part, been directed towards the search for performance and the promotion of sound corporate governance. However, this double objective remained a real challenge under the empire of law n°99/016 of December 22, 1999 on the general status of public establishments and public and semi-public sector companies, which had repealed order n°95/003 of August 17, 1995 governing public and semi-public sector companies. To echo this, the Technical Commission for the Rehabilitation (CTR) of public and parapublic sector companies revealed in its 2019 Report that the 50 public entities whose performance was analysed showed a 15.7% drop in turnover compared to the 2018 financial year, and an overall net result of CFAF -59.5 billion, down by -6.4% compared to 2018. Also, the biggest losses were recorded in the combined sectors of “hydrocarbons, water and electricity” and “industry and commerce“. Moreover, out of a target of 53 billion in 2019 for contributions from public enterprises to the state budget, only 12 billion had been paid out by the end of the year, i.e. an achievement rate of 21.94%. These under-performances are the result of an extraverted governance whose causes are not exclusively managerial. According to Professor Henri Modi Koko Bebey, “political and administrative burdens also explain, at least in part, the poor results obtained so far”.. Therefore, the link between governance and the performance of public enterprises is inseparable. This policy brief is intended to be a plea for strengthening the performance-oriented governance of public enterprises. To achieve this, it first outlines the renovated legal framework and highlights the classification of public enterprises (I); then, it questions, based on a few illustrative cases, the governance of public enterprises and its impact on their performance (II); finally, it makes recommendations for better governance to improve the performance of public enterprises in Cameroon (III).
Topic:
Governance, Public Sector, Public Spending, and Efficiency
Political Geography:
Africa and Cameroon

6. Perspectives on the Formalization of the Informal Economy in Cameroon

Author:
Joel Moudio Motto
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Informal sector practices are the third most frequently cited barriers – after corruption and administrative bureaucracy – for formal enterprises in sub-Saharan Africa (Moyo & Sibindi, 2020). To address this, many programs are being implemented to crack down on and penalize non-compliance. Policies are also being implemented for reducing registration costs and imposing taxes on informal activities and formalization campaigns (De Mel et al., 2014). The issues raised by these measures are fiscal and compliance issues. From this point of view, the non-participation of the informal economy in tax revenues limits the action of the State, hence the need to formalize, by organizing informal channels into associations or interest groups, despite the tax and standardization challenges.
Topic:
Economics, Governance, Tax Systems, and Informal Economy
Political Geography:
Africa and Cameroon

7. Ease of Paying Taxes In Cameroon

Author:
Henri Kouam
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The Doing Business Index of the World Bank ranks economies based on their performance in several businesses and governance-related indicators. One of the most important indicators for developing economies such as Cameroon is the “Paying Taxes Indicator,” as investors closely watch this metric to determine the attractiveness of a country to Foreign Direct Investment.
Topic:
Governance, Finance, Tax Systems, and Banking
Political Geography:
Africa and Cameroon

8. Interrogating the Inclusiveness of the Cameroon Tax Policy

Author:
Fabien Sundjo and Bin Joachem Meh
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Management of the State requires resources and one of the major sources of income to the State is tax. Taxation is one of the most effective internal measures that the government use to raise resources needed to meet their social, economic and political objectives. Taxation is a sovereign right of the state where resources are transferred from private accounts to public use in order to achieve the economic and political objectives of society (Moore, 2014). The economy of Cameroon like any other economy in the world has basically two types of taxation systems which include; direct and indirect taxation through which the government can raise its revenue. In the process of fostering the objectives of revenue collection by the State, care needs to be taken not to discriminate between women and foreign groups (Amin, 1998). The Cameroon Government’s Vision 2035, a road map to become an emerging economy by 2035, stresses the importance of large-scale infrastructure development and the need to attract more foreign direct investment (FDI). In this light and in April 2013, the Cameroon Government enacted an Investment Promotion Incentives Law whose aim is to motivate foreigners to bring-in capital and to allocate it within major sectors in need of capital in order to boost the economy. Cameroon’s development strategy is to attract funding from foreign countries and invest them in large infrastructure. Statistics, and figures from the World Bank show that the flow of FDI to Cameroon is relatively low but steadily increasing. This pattern can be explained by both the favorable tax system and the welcoming nature of Cameroonians (Cameroon US Embassy, 2019). The objective of this work is to interrogate whether the Cameroon tax system discriminates between women and foreigners. Tax discrimination is a situation where by some individuals pay tax differently from others.
Topic:
Civil Society, Governance, Tax Systems, and Inclusion
Political Geography:
Africa and Cameroon

9. Report on the 2021 Budget of Cameroon: An Analysis of the Sustainability of the Public Debt

Author:
Jean-Cedric Kouam, Henri Kouam Tamto, Bin Joachem Meh, and Marlyse Noussi
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The purpose of this report is to analyze the 2021 budget of the State of Cameroon, examining the sustainability of public debt. We use data extracted from the Republic of Cameroon’s Finance Laws, notably those for 2021; available public debt data from the Autonomous Sinking Fund; as well as forecasts made by the Ministry of the Economy, Planning, and Regional Development in the New National Development Strategy 2020-2030. Using the framework for analyzing public debt sustainability defined jointly by the International Monetary Fund and the World Bank in 2018, we show that Cameroon’s public debt, while still sustainable (estimated at 46.9% of Gross Domestic Product, thus remaining below the community threshold of 70%), still poses a high risk of external debt distress on the Cameroonian economy. This result means that, in the absence of concrete and radical actions by the government to reduce its rate of indebtedness, it will be difficult for the Cameroonian Treasury to honor all the government’s financial commitments on the bond markets in the near future, particularly with respect to debt service payments. We show that Cameroon’s liquidity and solvency ratios correspond to a policy that can be improved. Some debt and debt service indicators are significantly above short-term benchmarks over the entire study period from 2021 to 2030. Given this situation, it is urgent that the government define and implement an effective and efficient fiscal policy capable of bringing Cameroon to the level of development hoped for by 2035. This requires a more optimal reallocation of resources in order to guarantee productive investments and sustainable human development (Fambon, 2002). In this sense, this report emphasizes the need to guarantee the competitiveness of national enterprises, which includes the promotion of national private investment and the choice of loans at preferential rates that require the repurchase and/or cancellation of certain components of the country’s public debt. Thus, the study recommends several economic policy proposals to the Cameroonian government to reduce the debt burden.
Topic:
Debt, Economics, Governance, Finance, and Public Debt
Political Geography:
Africa and Cameroon

10. A Return to Constitutional Order and Democratic Governance in Chad: Is the African Union Not Crawling?

Author:
Francis Tazoacha
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The world-wide drive towards democracy, incited in part by the ending of the cold war, created opportunities for democratization not only in Europe and the former Soviet Union, but also across Africa. Hopes were high that Africans would begin to enjoy the freedoms afforded to citizens living in the former colonial powers. Despite the euphoria that followed this wind of change, some countries are embracing it while others are clinging to autocratic rule. The fossilisation of the autocratic rule has left many heads of state clinging to power while others are exercising pseudo-monarchic transitions through the abrogation of their respective constitutions and abuse of human rights. This perturbation has been the stumbling block to the democratic processes, good governance and sustainable development. Despite these inconsistencies, some African regional bodies have upheld their responsibilities while others such as the African Union (AU), the umbrella continental organisation, has played the role of “the good, the bad and the ugly”.
Topic:
Civil Society, Regional Cooperation, Governance, Democracy, Constitution, and Africa Union
Political Geography:
Africa and Chad

11. Rethinking Fiscal Policy to Overcome the Debt Problem in Cameroon

Author:
Jean-Cedric Kouam
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
In 2009, Cameroon adopted a major development vision to become an emerging country by 2035. To achieve this, the country defined a series of structuring projects that are essential to boost its industrialization and competitiveness. These projects include the construction of transport and telecommunications networks as well as hydroelectric dams. In addition to these major infrastructure projects, which require a significant financial investment by the state, the country has been affected since 2013 by the backlash of social and political tensions in the Central African Republic as well as the exactions of the terrorist sect Boko Haram, which have been recurring in the northern region since 2014. In addition, in 2016, Cameroon was plunged into a socio-political crisis that is becoming more widespread in its northwest and southwest regions. The humanitarian and social effects of this crisis (loss of human life, internal displacement, influx of refugees) have been further exacerbated by the COVID-19 pandemic, and the economic and financial impacts are increasingly being felt. In order to achieve its development objectives on the one hand and to strengthen its economic resilience to various shocks, on the other hand, the Cameroonian government is increasingly resorting to debt, which calls into question, to some extent, the effectiveness of Cameroon’s fiscal policy. Defined as all measures and decisions taken by the government and public authorities in terms of taxation, fiscal policy participates in economic policy by contributing to the financing of public expenditure and the redistribution of income. It also aims to reduce the tax burden in order to boost consumption and stimulate growth. This fiscal policy letter analyses the budgetary situation of the State of Cameroon, with emphasis on the role that fiscal policy could play in reducing Cameroon’s debt burden on economic development. After analyzing the viability of Cameroon’s public debt on the basis of the criteria adopted by international institutions such as the International Monetary Fund and the World Bank, this paper defines some fiscal policy strategies that could help keep Cameroon’s economy on track for emergence by 2035. It shows that Cameroon’s debt remains viable, but its liquidity and solvency ratios indicate that the treasury may find itself in financial difficulty over the next decade to meet debt service and principal repayments. The main fiscal policy recommendations to avoid this situation include defining and implementing a special tax regime for business support structures; following the Mauritius model by setting a sufficiently low corporate tax rate for all domestic companies; temporarily exempting domestic firms from corporate tax when they list their shares on the BVMAC; setting a time limit for the preparation, declaration and payment (or deduction at source) of corporate income tax, value-added tax, and social security contributions.
Topic:
Debt, Governance, Fiscal Policy, and Public Debt
Political Geography:
Africa and Cameroon

12. Mali and the Challenges of Democratic Rule: Implications for Continental Democracy

Author:
Peter SAKWE MASUMBE
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Development-oriented public policies and governances within African countries are at extensive peril as African soldiers become zealots and threats to political power. As Klatt (2021) asserts, “…two hundred and eighty days appear to be the time a banana’s flowering stalk needs to produce fruits”. Paradoxically, it is the time it took Malians to live within a first coup d’état from August 2020 to a second one in May 2021. Consequently, the AU, ECOWAS, SADC must take definite actions to avert military and undemocratic incursions into political power. This is the position of this policy brief. Exasperated policy pundits had crafted parlances for what happened on May 25, 2021, in Bamako, when former coup leader Colonel Assimi Goita re-took Mali’s destiny into his own hands again by overthrowing the Transition President and Prime Minister. Is he a power zealot, a nationalist, or a sheer adventurer? Irrespective of the exigencies and necessities, democracy is at peril in that country, and by extension, the continent. Ostensibly, the developments in that Sahel country, with its poverty index and human insecurity, sounding astronomically frightful (Kelechi 2021), Ugoh 2021), present a great leeway for soldiers in other countries to interrupt the growth of democracy. No matter the benevolence of military rule, a lame civilian regime incarnates some degree of democracy; consequently, Mali is at its undemocratic intersections, with a doubtful democratic certainty.
Topic:
Security, Civil Society, Military Strategy, Governance, and Democracy
Political Geography:
Africa and Mali