Cameroon – Crisis in the CEMAC zone: Foreign companies will not be able to repatriate 100% of their profits

Written by Deckson N.

At the end of the CEMAC Extraordinary Summit on 23 December 2016 in Yaounde, the Heads of State decided inter alia to prohibit the repatriation of all the profits made in the sub-region by the foreign companies operating there.

During a meeting with the leaders and members of his party, on December 26, 2016 in Ndjamena, Idriss Deby Itno, the President of Chad revealed that foreign companies will not be able to repatriate 100% of their profits. It was after his participation in the Extraordinary Summit of the Economic and Monetary Community of Central Africa (CEMAC), on 23 December 2016 in Yaounde, Cameroon.

We want these profits to be reinvested locally, to create more wealth and jobs. It will be hard, it’s going to drive investors away, we know. But it is better than devaluing the FCFA which can only make things worse, “said the President of Chad.

According to Le Quotidien de l’Économie of January 4, 2016, in all countries of the CEMAC zone, governments have taken measures in recent years to attract direct foreign investment. “This is the case of Cameroon, which, like Chad and the other CEMAC countries, has given foreign investors the opportunity to benefit from their investment through repatriation of funds or the transfer of capital,” notes the newspaper .

Under Law No. 2002-004 of 19 April 2002 on the investment charter in Cameroon, for example, the Cameroonian State guarantees (Article 10) “to any natural or legal person duly established or desirous in Cameroon, the freedom of repatriation of the foreign capital invested and the profits realized by the exploitation, as well as the repatriation of savings on salary realized by the expatriate personnel “. Just as “the freedom of capital transfers within the framework of the rules of the Monetary Union of Central Africa (UMAC)”, it is said, is also guaranteed.

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Deckson N.

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