J li Eb i MD JETPLAY C lti Ltd Julian Ebai_ MD JETPLAY Consulting Ltd by gyvwpsjkko

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									Julian Ebai, MD JETPLAY Consulting Ltd
J li  Eb i  MD JETPLAY C     lti  Ltd
Objectives
 Discuss the need to strengthen relationship and
 investing i Af i
 i    ti                in terms of b i
             in Africa i t                      d
                                   f business and
 credibility with various governments.

 To create awareness and make new contacts.


 Highlight some of the investment opportunities
 that exist that could result in the strengthening of
 commercial relationship with African businesses .
Introduction
 The global economic crisis poses a host of short‐
                      Africa.
  term challenges for Africa
 It represents an opportunity to advance long‐
  stalled reforms within the continent as well as
  globally.
 The crisis will allow African countries to build
  stronger, more equitable and more diversified
  economies.
 There is a need to increase Europe/West‐Africa
  relationships.
             p
Introduction
 With five years until the 2015 deadline to achieve
            y                  5
 the Millennium Development Goals (MDG), UN
 Secretary‐General Ban Ki‐moon has urged
         y                                      g
 governments to engage constructively in the
 p p                  g              g      p
 preparations for a high‐level meeting in September
 2010.

 With the myriad of economic problems in most
                countries,
 West African countries how are the various
 investment opportunities marketed         for
 meaningful business engagement with European
 and US companies?
Major challenges faced by the West in Africa
 Understanding that Africa is a diverse continent with
                                              invest.
  different countries and different places to invest

 Lack of infrastructure in African countries
                                    countries.

 Inability to build a business relationship as it is difficult to
  identify potential partners in Africa.

 Foreign investors remain nervous about investing in
   a e s a a e o u y a spa e o e                   o .
  markets that are not fully transparent or well known.
Investment opportunities in Africa
Investment opportunities in Africa
 Africa ranks first in the world in the concentration of the
      ld’ largest accumulated reserves of gold, antimony,
  world’s l               l d            f    ld     i
  bauxite, chromite, cobalt ,diamonds, fluorspar, hafnium,
  manganese phosphate rock titantium vanadium
  manganese,                 rock, titantium, vanadium,
  vermiculite, zirconium.
 Africa supplies up to 6% of the world demand for
  aluminium, cement, coal, copper, graphite, iron ore, lead ,
  steel and zinc
 Africa supplies up to 31% of the world’s demands for
  bauxite cobalt, gold, managanese, phosphate and uranium.
 Africa supplies up to 57% of the world’s need for
  chromium and diamonds.
Investment opportunities in Africa
 The identified growth sectors in sub‐saharan 
 Africa are as follows:
 Af i      f ll
   Infrastructure investment opportunities
   Fi    i l S i
    Financial Services
   Mining, resource , development and energy
   Communication and transport
                    d
   Information technology
   Tourism
   Manufacturing
Infrastructure investment opportunities
 The greatest challenge is trying to get more European
 and US companies in Africa to invest in infrastructure.
           p

 Some African countries like Congo DRC , Angola are
    ki    ith China  improving i f t t
 working with Chi on i     i infrastructure.

 Ideally it will be good to see more European and U S
                                                   U.S.
 companies involved in infrastructural development.
               Financial Services
 Africa is the fastest‐growing region in the world.
 While the rest of the world l
   hl h           f h      ld limps towards recovery,
                                         d
  Africa’s growth slipped from an impressive 5%
                 %    % in h     k f h           i
  average to 2.5% to 3% i the wake of the economic
  meltdown.
 Innovative methods to finance Africa’s growth are
  increasing and proving highly successful.
 Across the continent, microfinance, mobile
  banking, private equity and venture capital are
          g, p        q y                   p
  spurring economic recovery.
 The opportunities in Africa are enormousenormous,
  especially in the unbanked segment.
Financial Services

 Many of Africa’s 900 million consumers do not have bank
  accounts.
 Many of them are small, thriving entrepreneurs using
  mobile banking to leapfrog traditional financial channels.
A          h       i         i fi              bil banking,
  Across the continent, microfinance, mobile b ki
  private equity and venture capital are spurring economic
         y
  recovery.
 In East Africa, the push for microfinance is gaining
  tremendous momentum and, in Kenya alone, savings and
     di        i i                     illi
  credit organizations report 4.5 million account h ldholders,
  and there are potential sources of liquidity.
Financial Services
 Ab      % f h West Af i
  About 70% of the W             l i    live in  l
                     African population li i rural
  communities. The potential for mobile banking is huge.

 Microfinance still holds great potential in West Africa’s
                                         1.5% 2%.
  small scale lending default is between 1 5% to 2%

 Foreign direct investment (FDI) is welcomed and indeed
                                              and, indeed,
  actively sought by virtually all African countries.

 African countries have made considerable efforts over the
                   p ove t e     vest e t c ate.
  past decade to improve their investment climate.
Investment opportunities in Cameroon
Investment opportunities in Cameroon
 The Republic of Cameroon is located at the heart of Africa and is
  the junction between Equatorial Africa in the South and tropical
  Africa in the North.
 Cameroon has been described as Africa in miniature, because of
  its unique geographical location and position in the continent.
 The Cameroon economy relies mostly on Agriculture, whose
                                                          GNP.
  activities contribute a significant proportion of their GNP
 Cameroon is one of the largest cocoa and coffee producers in the
        ,       pp                                        p
  world, with opportunities for this raw material to be processed in
  Cameroon before export. Starbucks now buys Coffee from
  Cameroon.
Investment opportunities in Cameroon
 Th government of C
  The                      has actively b t d growth b
              t f Cameroon h     ti l boosted     th by
 promoting The Agricultural sector in the following ways:
   Withdrawing the state from the role of active participation in
                 g                                       p      p
    regulating and creating professional agricultural organisations.
   Promoting self sufficiency in agricultural production and export
    surplus.
    surplus
   Opportunities for local and international investors.
   The Government is willing to make available huge tracts of secured
                               g                      g
    land to local and foreign investors on a contractual basis
   Implementation of measures geared towards making the
                                                        duties,
    opportunity very attractive like reducing custom duties in order to
    enhance investment and particularly private investment.
Investment opportunities in Cameroon
Investment opportunities in Cameroon
 The government is trying to provide adequate and appropriate
  infrastructure and boost economic and commercial growth in
                                                   g
  the following ways:
    It has launched a huge program in the field of building roads
    Building new dams and new plants in order to increase energy and
                               plants,
     water supply.
    Building a new sea port in Kribi and Limbe. The port in Limbe will
                                    constructed.
     cost 852 million dollars to be constructed
    The Cameroon Credit Company to build 1200 houses estimated
     cost $48 million dollars.
    Expansion to the Al
                     h Alucam Al                 l        d by
                                 Aluminium smelter owned b Mining
     Multinational Rio Tinto and the government. Estimated cost$ 115
     milion.
    Revamp SONARA Oil Refinery (SOR) contract value $460 Million.
Oil & Gas opportunities in Cameroon
Oil & Gas opportunities in Cameroon
 The government through         the National Hydrocarbons Corporation
    known as (Societie Nationale des Hydrocarbures‐SNH) in 2008
                                  3.3            2008.
    registered a turn over of USD 3 3 billion in 2008
   In August 2008 the oil‐rich Bakassi Peninsula has been ceded
    peacefully by Nigeria into Cameroon.
   The government is and will continue to work with environmental
    agencies, NGOs and the Oil industry and mobilise International
    organisations to see how best the unspoilt ecological beauty of Bakassi
                              p
    is conserved and developed in an Eco‐Park and Eco‐Tourism for the
    inhabitants in the Green sector
   The country has large deposits of valuable minerals which are only
    now being explored or exploited
   Some of this development is being spear headed by a Canadian Mining
    company GEOVIC through its Cameroonian Subsidiary GEOVIC
    Cameroon.
Oil & Gas opportunities in Cameroon
 Victoria Oil and      Gas Plc an independent Oil and gas
  exporation company announced in November 2009 that it
  had found gas sands at its Logbada project Douala in
  Cameroon.
 Its shares rose by nearly 13 percent
                        y        y 3 p             after this
  announcement.
 The future and prospect for exploration and exploitation in
  the mining sector should be an investment destination of
  choice for foreign investors .
 They are encouraged to explore other potentially huge
  deposits such as; gold         manganese, rutile, sapphire,
                        gold, manganese rutile sapphire
  uranium, platinium, chromium, zinc, copper, limestone,
  marble.
d
Oil & Gas opportunities in Cameroon
 UK sterling energy h the offshore N
         li          has h ff h          block in h Kribi‐
                                    Ntem bl k i the K ibi
    Campo sub basin.
   It has identified four prospects with a cumulative potential in
            f     billion barrels.
    excess of 1.5 billi b      l
   China’s Yan Chang Logone Development Holding Company Ltd
    has signed a $62 million production sharing contract to explore
          g                      p              g             p
    f oil on the onshore in the North.
    for l       h      h        h      h
   Malaysia’s Petronas and Noble energy have a $119 million deal to
    explore oil Tilapia block offshore.
       p             p
   France’s Total‐E&P and Swiss firm Glencore are operating
    separate offshore in the Rio del Rey basin.
   Cameroon has gas reserves estimated at over 500 billion cubic
    meters and Franco‐Belgian group Suez Global LNG Ltd has
    signed a memorandum to look at developing liquefied natural
    gas.
    g
Mining in Cameroon 
 GEOVIC has mining rights to seven Cobalt , Nickel
  Maganese Laterite deposit
 Cameroon issues two types of permits .
 Holders of exploration permit benefit of exemptions from
  registration fees, for mining operations safe for those
    l ti to lodging leases and rents.
  relating t l d i l         d    t
 Exemption from the following taxes;
  C       tax
   Company t
   Tax on business profits
   Proportional tax movable capital incomes
      opo t o a ta    ovab e cap ta co es
   Special charge on remuneration paid abroad
 There are opportunities for new licences and concessions
             pp
 for foreign investors in the Mining sector.
Mining in Cameroon 
Mi i i C
 An Australian based International Company Sundance
    Resources will b exporting hi h grade I
    R            ill be       i   high              Ore from
                                            d Iron O f
    Mbalam Cameroon by 2012.
   The     j t is ti t d to     t $3.27 billi USD
    Th project i estimated t cost $      billion USD.
   The Mbalam Iron Ore Project is in close proximity to the
    Belinga Iron Ore Project in neighbouring Gabon being
    developed by the China National Machinery and
      q p          p         p         p
    Equipment Import and Export Corporation.
   The US firm Hydromine, the United Arab Emirates’ Dubai
    Aluminium and India’s Hindalco have formed Cameroon
    Alumina Limited a Bauxite mining operation.
   With start up planned for 2013, the consortium plans to
    invest $5‐6 billion in a bauxite mining and refinery
    project in Ngaoundere in northern Cameroon.
Mining in Cameroon 
H d   i
 Hydromine       i     d
                signed an agreement with theih h
  Cameroon government        to carry out feasibility
      di    ih       i     developing h d l
  studies with a view to d l i                     i
                                       hydroelectric
  power.
 Cameroon boasts the second greatest potential to
  generate hydroelectric power in the continent, but
  much of the potential remains untapped.
 Cameroon’s long term plan is to be a regional
                   g       p                  g
  supplier of hydroelectric power and be able to be
  self sufficient in providing electricity to its
                         p     g           y
  inhabitants and business.
Investment Incentives in Cameroon
 The investment code is governed by Ordinance No 90/7 of
  8 November 1990 and it aims to encourage and promote
  investment in Cameroon.
 It also guarantees free transfer for foreign investors of any
  proceeds their invested capital including fund remaining
  after liquidation.
 Companies whose finished or semi‐finished products are 
  processed in Cameroon are exempted from export duties 
  insurance or transportation duties when exporting these 
  products.
 Th           i     l           d         f ili i  i   h  f
  The companies are also granted export facilities in the form  
  of deduction from their taxable income.
Investment Incentives in Cameroon
 The Free trade Zone Regime other wise known as Industrial
    Free Trade Zone aims at promoting new investment.
     h i       i l li for h
    The Financial policy f the year 2007 i i          d
                                             instituted a two year
    tax exoneration program for those wishing to incorporate
    business in Cameroon.
   The Labour code encourages investment as Section 23 (2) 
    of the said code states that contracts of employment will be 
    freely negotiated.
    Cameroon is a signatory to many international treaties and 
    conventions which are mutually beneficial. 
   C           i   l   i           INTERPOL   hi h  k    
    Cameroon is also signatory to INTERPOL, which seeks to 
    curb international crime
Tourism in Cameroon
T i i C
 Foreigners or tourist who visit Cameroon are surprised by
   h      if i            h f its diversity, climate, l d
  the unifying strength of i di          i     li     landscape,
  vegetation , wildlife , cultures and traditional architecture .
 I it many cultures C
  In its            lt                        boast f
                            Cameroon can b t of over 250
  languages belonging to nearly all African linguistic
  families. French and English being the official languages.
 The variety of landscape is amazing from the desert of the
               g                     p
  sahel through savannah and tropical rainforest to beaches
  and mountains
 Tourism is still in its infancy stage in Cameroon there is a
  need for foreign and local investors to develop this sector.
Tourism in Cameroon
 Th      i  i  C          ill     id     i   f  
  The tourism in Cameroon will provide a variety of  
 tourism types
  C l    l T i
   Cultural Tourism
   Sea‐side Tourism
   Safari (Regulated and controlled hunting and wildlife 
      f (       l d d           ll d h         d ldl f
    photography)
  E t      i
    Ecotourism
   Spot and Adverture Tourism
   R ll  D i i  i   h     h      i
    Rally Driving in through terrain
   Conference or Convention Tourism
Tourism in Cameroon
 There has been a significant increase in the number of
 visitors and tourist travelling to Cameroon, as a result
  h     is demand f accommodation h l restaurants,
 there i a d      d for           d i hotels
 related transport services hence the need for the following:
  C       t ti      f Beach        t
    Construction of B h resorts along th bl              tif l
                                                the beautiful
    Campo –Kribi – Limbe coast line.
   Construction of medium class city hotels in major cities
   Construction of Town and Country hotels in regional
                    capitals.
    and provincial capitals
   Construction of Motels or Rest stops, service centers
          g     g
    along the high wayy
   Construction of Lake Resorts , i.e lake barombi
   Chartered Flights to Cameroon ,create a new Airlines.
Agriculture in Cameroon
 The Cameroon Development Corporation (CDC) an
  Agro Industrial Enterprise created in 1947 solely
  owned by the Government.
 Its Share Capital is £21 Million and grows three
  tropical crops namely Rubber, oil Plams and Banana.
 The plantation’s total area is 37,783 hectares.
 CDC is in need of foreign partners fresh injection of
  capital to modernise and increase production.
 The Cameroon market is ripe for importation of
  processed agricultural products, juice, jam, dried
  fruits,                       etc.
  fruits canned fruits , spices etc
Conclusion
C l i

 In conclusion based on the facts highlighted 
  b     W t Af i   d C             i   ti l  
 above, West Africa and Cameroon in particular 
 should be an investment destination of choice.

 Evidently Western investors should cooperate and 
 work closely in collaboration with local partners.
THANK  YOU
THANK YOU
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