1. Optimizing the Governance and Performance of Public Enterprises In Cameroon
- Author:
- Steve Tametong
- Publication Date:
- 09-2021
- Content Type:
- Working Paper
- Institution:
- The Nkafu Policy Institute
- Abstract:
- Defined as economic units with legal and financial autonomy carrying out industrial and commercial activities and whose share capital is wholly or mainly held by a legal person under public law, public enterprises occupy a major place in the economic development policy of the State in Cameroon. The many reforms that have taken place in this key sector have, for the most part, been directed towards the search for performance and the promotion of sound corporate governance. However, this double objective remained a real challenge under the empire of law n°99/016 of December 22, 1999 on the general status of public establishments and public and semi-public sector companies, which had repealed order n°95/003 of August 17, 1995 governing public and semi-public sector companies. To echo this, the Technical Commission for the Rehabilitation (CTR) of public and parapublic sector companies revealed in its 2019 Report that the 50 public entities whose performance was analysed showed a 15.7% drop in turnover compared to the 2018 financial year, and an overall net result of CFAF -59.5 billion, down by -6.4% compared to 2018. Also, the biggest losses were recorded in the combined sectors of “hydrocarbons, water and electricity” and “industry and commerce“. Moreover, out of a target of 53 billion in 2019 for contributions from public enterprises to the state budget, only 12 billion had been paid out by the end of the year, i.e. an achievement rate of 21.94%. These under-performances are the result of an extraverted governance whose causes are not exclusively managerial. According to Professor Henri Modi Koko Bebey, “political and administrative burdens also explain, at least in part, the poor results obtained so far”.. Therefore, the link between governance and the performance of public enterprises is inseparable. This policy brief is intended to be a plea for strengthening the performance-oriented governance of public enterprises. To achieve this, it first outlines the renovated legal framework and highlights the classification of public enterprises (I); then, it questions, based on a few illustrative cases, the governance of public enterprises and its impact on their performance (II); finally, it makes recommendations for better governance to improve the performance of public enterprises in Cameroon (III).
- Topic:
- Governance, Public Sector, Public Spending, and Efficiency
- Political Geography:
- Africa and Cameroon