(Business in Cameroon) – SGS, the self-proclaimed global leader in inspection and certification, announced on July 3 the renewal of its Pre-Shipment Conformity Assessment Program (PECAE) contract with the Republic of Cameroon. This decision allows the Swiss company to keep its exclusive status as the only authorized body to certify goods imported into Cameroon.
According to the latest International Trade Centre data, Cameroon imported about $8.2 billion worth of goods in 2024. This contract renewal gives SGS a predictable revenue stream. Pre-shipment inspection fees typically range from 0.5% to 1% of a product’s Free on Board (FOB) value, based on industry standards. Given 2024 import volumes, SGS’s potential annual revenue could be an estimated $41 million to $82 million, or roughly 27 to 54 billion CFA francs, though this is pending confirmation.
This estimate only covers base fees. Additional income comes from laboratory testing and issuing certificates of conformity. SGS’s monopoly, secured by government designation, protects it from direct competition in this specific market, unlike other sectors where it faces rivals like Bureau Veritas.
Strict Controls Amid Trade Trends
The PECAE program, established by Prime Ministerial Decree No. 2019/143, requires systematic inspection of almost all Cameroonian imports. Exemptions apply only to products valued under 2 million CFA francs (about $3,250), along with a limited list that includes weapons, diplomatic donations, and works of art.
In practice, every shipment heading for Cameroon must be inspected in its country of origin. This includes laboratory tests and verifying compliance with Cameroonian standards. SGS then issues a Certificate of Conformity (CoC), which is necessary for customs clearance. Without this document, goods might be seized, and owners could face legal penalties. This operation is carried out in partnership with Cameroon’s Standards and Quality Agency (ANOR).
Cameroonian authorities justify this system as a way to prevent counterfeiting and the import of substandard products, especially from Asia. However, the continued dominance and growth of Chinese goods in the local market suggest that, while strict, these controls do not significantly hinder trade flows from that region.
Revenue Stability Amid Market Fluctuations
For SGS, the contract renewal offers stable income in the conformity certification business. Still, earnings remain tied to changes in Cameroonian import volumes. In 2024, the value of imports dropped by 9.5% compared to the $9.3 billion recorded in 2023. This requires the company to maintain enough infrastructure to handle busy periods while remaining profitable during slower times.
The PECAE renewal also aligns with a broader trend across Africa towards stronger quality controls. Several African nations have adopted similar systems, creating a significant regional market for certification companies. This trend could accelerate with the gradual implementation of the African Continental Free Trade Area (AfCFTA), which will demand harmonized quality standards among member states.
Written in French by Idriss Linge,
Translated and adapted into English by Mouka Mezonlin
