(Business in Cameroon) – President Paul Biya signed a decree on July 18, 2025, that amended Cameroon’s investment incentives framework for the second time since 2017. The presidential text maintains tax and customs exemptions ranging from 5 to 10 years for investment projects during both installation and operational phases. It also introduces significant changes to the initial law, which was dated April 18, 2013.
Among the major innovations, the July 18, 2025, decree titled “Setting Investment Incentives in the Republic of Cameroon” emphasizes the obligation for project holders to create more jobs and process local raw materials. For instance, new investment projects must meet at least two of five eligibility criteria to qualify for tax breaks. These criteria include creating direct jobs for Cameroonians during installation and operation with a threshold of at least one job per programmed investment tranche of 50 million CFA francs. For industrial projects, the use of national natural resources must amount to at least 50% of input value, excluding labor, water, energy, and telecommunications. Large-scale distribution infrastructure projects must ensure the marketing of at least 40% of products of Cameroonian origin. Projects must also increase added value by at least 30% or carry out export and/or shipment operations of locally manufactured finished products corresponding to at least 25% of turnover excluding tax.
In addition to job creation and the use of local natural resources for new projects, holders of expansion projects must ensure that the planned investment increases the production of goods and services by at least 20%. As a result of the project for which tax and customs exemptions are requested, their workforce must also grow by at least 20% compared to staffing levels prior to the project’s implementation.
Unlike the April 2013 law, the July 18, 2025, decree limits benefits granted to investors strictly to projects in certain priority sectors. These include agriculture, livestock, and fishing; heavy, automotive, and manufacturing industries; water and energy; education and health; air, rail, and maritime transport; tourism and leisure; large-scale distribution infrastructure; and data storage and processing infrastructure.
Furthermore, the level of exemptions for import duties and domestic taxes now varies depending on whether the investment project is valued at less than 1 billion CFA francs, between 1 and 5 billion CFA francs, or exceeds 5 billion CFA francs. The presidential decree of July 18, 2025, also extends these tax advantages to investments in economic zones. In such cases, while installation phase exemptions still cover 5 years, operational phase exemptions exceptionally extend to 7 years.
Authorities state that the new reform of the 2013 law on investment incentives, enacted by the July 18, 2025, presidential decree, aims to rationalize tax expenditure. This refers to specific measures that deviate from the standard tax system and result in revenue losses for the state, which are considered increasingly significant and not always delivering expected outcomes. The International Monetary Fund encouraged this reform as part of its economic and financial program with Cameroon, and the Groupement des entreprises du Cameroun (Gecam), the country’s main employers’ organization, supported it.
Brice R. Mbodiam
