(Business in Cameroon) – In the 2026 finance law, the government of Cameroon introduced targeted tax measures to support local bitumen production, a strategic input for road infrastructure. “Technical equipment intended for the petroleum bitumen industry is exempt from import duties and taxes. Inputs for local bitumen production benefit from a reduced 5% customs duty and exemption from value-added tax (VAT) on imports,” states the law adopted by the National Assembly.
Beginning in 2026, machinery and equipment used to build bitumen production plants will no longer be subject to import duties or taxes. At the same time, raw materials needed for domestic bitumen production will not be subject to import VAT and will face only a 5% customs duty on their purchase value. The government aims to build a local industrial base for bitumen, with the goal of lowering road infrastructure costs by about 30%, according to construction sector experts.
According to authorized sources, these measures primarily target the bitumen plant planned in the Kribi industrial-port zone by All Bitumen PLC, a Cameroonian-owned company. The project includes an annual production capacity of 250,000 tons of bitumen supported by a 10,000-barrel-per-day mini refinery that will supply the feedstock.
Afreximbank positioned to finance the project
Valued at CFA161 billion, the Kribi plant is expected to create between 300 and 400 direct jobs and around 1,500 indirect jobs. Its financing is expected from the African Export-Import Bank (Afreximbank). Since late 2024, the pan-African institution has held an arranger mandate with All Bitumen PLC, allowing it to finance the project and mobilize additional partners.
According to All Bitumen PLC officials, Afreximbank, which focuses on projects that support intra-African trade, has already provided about CFA2 billion (€3 million) for project preparation studies. Work to prepare the 60-hectare site provided to the company began in March 2025. Construction is expected to start in 2026. Ahead of this phase, All Bitumen has entered discussions with four European and Asian companies and consortia, according to sources close to the project.
The project has drawn strong interest from the government, which plans to take a stake of between 5% and 15%, according to authorized sources. “The state, which supports us, is doing everything within its responsibility to ensure the project happens,” said Ahmadou Oumarou, chief executive of All Bitumen PLC.
30% cut in road construction costs
The Kribi bitumen plant is central to the government’s strategy to expand the paved road network to 11,300 km by 2027, up from 9,885 km in 2023. “Achieving this goal requires supporting the construction of a bitumen production plant,” the government acknowledged in the Medium-Term Economic and Budgetary Framework prepared by the Ministry of Finance ahead of the 2024 budget orientation debate.
For years, Cameroon has been known for having some of the continent’s most expensive roads. During a 2013 meeting of focal points of the National Road Council (Conaroute), the average cost of one kilometer of paved road was estimated at about CFA205 million, compared with an African average of CFA100 million. In a 2018 report, the World Bank noted that some road projects in Cameroon cost two to six times more than comparable projects elsewhere in Africa.
Authorities cite the high cost of imported bitumen as a key factor behind these overruns. Developing domestic production of this input is therefore expected to help reduce road construction costs, with potential savings of up to 30%, according to construction experts.
Brice R. Mbodiam
