(Business in Cameroon) – Cameroon’s government is finalizing a bill to revise its 2013 law on investment incentives for the second time since 2017. The draft legislation offers private investors tax and customs exemptions ranging from five to 10 years, depending on the implementation phase of their investment projects. These tax breaks apply to both the startup and production phases of the project.
In its 2026-2028 Medium-Term Economic and Budgetary Programming Document, the Ministry of Finance stated this second revision aims to rationalize the state’s tax expenditures. These specific measures deviate from the reference tax system and result in revenue losses. The revision seeks to enhance their economic and social impact.
“In 2023, tax expenditures amounted to 449.4 billion CFA francs, with 113.5 billion linked to the 2013 law, representing 25.2% of total tax expenditures,” the Finance Ministry document stated. It added, “To optimize their economic and social impact, a draft ordinance revising the 2013 law is being finalized. The text aims to better align eligible sectors with the priorities of the 2020–2030 National Development Strategy (SND30), to gradually replace exemptions with more targeted tax credits, and to strengthen mechanisms for monitoring and evaluating tax expenditures.”
The revision of the 2013 investment incentives law follows criticism from both the International Monetary Fund (IMF) and Cameroon’s business community regarding its actual effectiveness. In a January 30, 2025, statement announcing an agreement with Cameroonian authorities on a review of their economic and financial program, the IMF encouraged the authorities to revise the 2013 law, in order to rationalize investment incentives. This recommendation aligns with the government’s goal of boosting tax, customs, and non-tax revenues to meet ever-growing needs.
GECAM’s Criticisms and Calls
The IMF’s suggestion came months after a more pointed critique from Groupement des entreprises du Cameroun (GECAM), the country’s main business association. GECAM president Célestin Tawamba declared, “Investment incentives in the Republic of Cameroon must be completely overhauled,” during the organization’s “economic re-entry” meeting held on September 18, 2024, in Douala.
Cameroon’s top business leader specifically criticized what he described as the unjustified length of the installation (five to seven years) and operational (up to 10 years) phases during which companies benefit from tax and customs exemptions under this law. He claimed, “These provisions allow some companies to use the benefits for purposes other than the stated investment, or to continue using startup phase benefits for projects that have already entered the production phase.”
Tawamba also denounced the confusion surrounding eligibility criteria, which he said “opens the door to arbitrariness and does not ensure fair treatment of applications.” He further pointed out the failure to account for the specific challenges of remote areas, which should be addressed to promote balanced regional development in line with the spirit of decentralization. Additionally, he stated that certain measures are poorly suited to the law’s intended goals, which “leads to significant revenue losses for the state and increases the tax burden on existing businesses that have to make up the shortfall.”
Given these shortcomings, GECAM’s president asserted, “A complete overhaul of the investment incentives law is essential to ensure overall coherence and achieve greater impact.” Gecam also noted that for every 198 billion CFA francs granted in tax and customs incentives, the value created amounts to just around 41 billion CFA francs, equivalent to only 0.0018% of GDP.
Brice R. Mbodiam
