Mira Company has just signed with the Cameroonian government, an agreement to enable it benefit from provisions in the law on incentives for private investment in Cameroon, as part of a project for the construction of a cement plant in Douala. The Swiss engineering firm signed the agreement with the government of Cameroon Ministry of Industry, Mining and Technological Development.
A total investment of over FCfa 32 billion (US$122m), this new cement production unit will create approximately 1,600 jobs. Its initial production will reach one million tons, according to the project stakeholders’ expectations. The cement plant would occupy an area of 80,000 sqm. At present the first phase of the project had started, Shandong Design and Research Institute is responsible for the design and project management, and the plant is expected to officially put into operation by the end of 2016.
With this new cement factory, Cameroon will thus have five factories, with Cimencam from the Lafarge group, Cimaf belonging to the Moroccan group Addoha, Dangote Cement and Medecen Cameroun from the Turkish group Eren Holdings.
Total production of cement in Cameroon is estimated at around 3.5Mt/yr and domestic demand is estimated at 5Mt/yr.
On 18th April 2013, the President of the Republic of Cameroon promulgated the law No. 2013/004 dated 18th April 2013 on incentive measures for private investment in Cameroon. The new law is applicable to any individual or legal entity, whether Cameroonian or foreign national, resident or non-resident, “in respect of the performance of their activities or their holding of a part of the share capital of Cameroon companies, with a view to encouraging private investment and increase domestic production” for any investment relating to the setting-up, development, renewal, restructuring of assets and/or the transformation of businesses.
The new law provides for the following incentives:
– tax and customs incentives during the setting-up phase (which may not last more than 5 years) and the operation phase (which may not last more than 10 years), and notably:
— an exemption from the payment of registration duties (on leases, instruments recording increases in capital, etc), of VAT; and
— an exemption from the payment of various taxes, or a reduction in the amount of said various taxes (corporate income tax, tax on profits, etc).
– financial and administrative incentives, including notably:
— the right to open accounts in local currency and in foreign currency, in the Republic of Cameroon and abroad, and the right to make transactions on those accounts; and
— the right to cash, and freely keep abroad, the proceeds deriving from their transactions.
Source 1 2 3 4