Lawyer Roland Abeng says unfair laws, taxes scaring investors from Cameroon

By Daniel D

Cameroonian international business lawyer, Roland Abeng, has voiced serious concerns about the business climate in Cameroon, citing unfair laws, high debts, and unscrupulous taxes as major deterrents for foreign investors.

Speaking at a recent event hosted by the American Chamber of Commerce in Douala, Abeng highlighted the detrimental impact these factors have on the country’s economy.

“Every time a plane leaves Cameroon, there is an investor on that plane who has decided to never come back to us; that’s a bad thing,” said Barrister Abeng.

“The statistics are not good for Cameroon. Let our employers’ movements, Amcham, seriously look into this aspect with the authorities.”

In 2020, Cameroon was ranked 167 out of 190 on the Ease of Doing Business index, according to the US State Department.

The country’s business image has been tarnished by various challenges, including conflict, corruption, lack of transparency, and unfair taxes.

These factors contributed to Cameron’s suspension from the African Growth and Opportunity Act (AGOA), and recently from the Extractive Industries Transparency Initiative.

Corruption scandals, such as the Glencore case involving high-ranking government officials, and ongoing armed conflicts in the North West and South West Regions have further hampered economic activities and deterred investment.

Additionally, the government’s failure to pay billions of francs CFA owed to utility companies like electricity company ENEO and the water utility company Camwater has added to the instability.

The legal landscape also presents obstacles for businesses, with instances of unfair contract enforcement and disputes.

At the moment, there is an ongoing court case between the Mobile Telephone Company, MTN, and Cameroonian business mogul, Baba Danpullo.

Abeng stressed the importance of negotiation and transparency in contractual agreements, urging a shift in mentality among stakeholders.

“The contract cannot be forced; it must be negotiated. We must therefore change our mentality,” he said.

According to him, wealth creators must be conscientious and honest without losing sight of the need to have operational, non-corrupt justice.

“We need all these parameters, which will give more credibility to the business climate in Cameroon,” he said.

Guy Honoré Tchenté, Vice President of Amcham, echoed Abeng’s concerns, emphasizing the difficulties faced by the business community in recovering debts.

“We have carried out surveys and found that the business community has problems. Beyond the tax problems they encounter, they have another big problem, which is how to recover their dues, whether it is their turnover towards their customers or other amounts that customers owe them,” said Honoré Tchenté.

He highlighted the need for accountability and integrity in business transactions, promoting Anglo-Saxon values of honesty and reliability.

“That is to say, knowing that when we give our agreement, when we give our word we must respect it. If we are in a system where impunity is the rule and the abnormal has become normal, it is time to reverse this trend,” Guy Honoré Tchenté added.

©Mimi Mefo Info