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41. Information Asymmetry: A Major Obstacle to Credit Provision In Cameroon

Author:
Jean-Cedric Kouam and Maurice Tchegho
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
According to the report published by the World Bank, which ranks the world’s economies Doing Business (2020) according to the ease of doing business, Cameroon ranked 167th out of 190 economies, a loss of one place compared to 2019. However, the country gained 0.1 point by recording a score of 46.1 points out of the 100 at stake. According to the World Bank, this slight increase is the result of the improvement of one of the ten indicators taken into account in the calculation of the score, that relating to access to credit. Indeed, with the help of the Economic and Monetary Community of Central Africa (CEMAC), Cameroon has established a framework for the granting of licenses and the operation of credit bureaus (1) which has enabled it to rank 80th in terms of obtaining credit, with a score of 60 out of 100 for obtaining credit and 6 for the depth of information on credit. Conversely, the score for credit bureaus is zero (World Bank, 2020). Despite this notable progress, particularly with regard to access to credit information, information asymmetry remains a serious problem in the relationship between the credit applicant and the credit provider in Cameroon. Defined as the lack of communication of accurate and reliable information from companies, this translates into the fact that one of the contracting parties holds information that it decides, voluntarily or not, to transmit to the other party. This constitutes an obstacle to project financing. From this situation, a major concern arises: What are the causes and consequences of informational opacity in the credit granting process in Cameroon?
Topic:
Communications, Finance, Business, and Credit
Political Geography:
Africa and Cameroon

42. A Look at the Legal Framework and Constraints of Credit Granting In Cameroon

Author:
Steve Tametong and Martial Nteme
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The realisation of an investment depends, in certain cases, on the use of credit. The granting of credit requires a prior credit operation. According to section 3 of Law No. 2019/021 of 24 December 2019 to lay down certain rules relating to credit activity in the banking and microfinance sectors in Cameroon, a credit operation means “the act by which a reporting institution, acting for consideration, advances or promises to advance funds to a natural or legal person, or makes a commitment by signature in the interest of the latter”. In reality, the credit applicant is faced with challenges that stem partly from his or her ignorance of the legal framework for granting credit in Cameroon. It is therefore necessary for each credit applicant to master the legal environment that governs the granting of credit. This is the first articulation of this analysis (I). The second section examines the conditions and constraints of credit granting (II). The third section sets out recommendations for improving the framework for granting credit in Cameroon (III).
Topic:
Infrastructure, Finance, Investment, and Credit
Political Geography:
Africa and Cameroon

43. The National FDI Observatories, a Bulwark Against the Imbalance Effects of Chinese FDI In Africa?

Author:
Joel Moudio and Steve Tametong
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Sino-African relations are structured around three axes: trade, Chinese financing in Africa and foreign direct investment (FDI). The latter is the key element in the multinationalisation of companies. Between 2003 and 2018, Chinese FDI in Africa dropped from USD 75 million to USD 2.7 billion1 ; this is in contrast to the period 2004-2008 when Africa attracted about 10% of Chinese direct investment (Sanfilippo, 2010), with a peak in 2008 of about USD 5.5 billion “due to the purchase of 20% of the shares of the Standard Bank of South Africa by the Industrial and Commercial Bank of China (ICBC)”.2. These include: cross-border mergers and acquisitions, intra-group loans and borrowing, and the creation of subsidiaries abroad. While Chinese FDI in Africa is growing exponentially and is a development boon for African countries (1), it is also partly a “danger” for African economies. The case of Cameroon will illustrate this (2). In this context, the establishment of a National FDI Observatory (NFOID) under the joint action of civil society becomes a necessity in order to compensate for the State’s inadequacies in terms of monitoring and surveillance of the perverse effects of FDI (3).
Topic:
Civil Society, Economics, Hegemony, and Foreign Interference
Political Geography:
Africa and Cameroon

44. Is Cameroon a Police State? All About the Use of Administrative Custody

Author:
Steve Tametong
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The wind of liberal democracy will not have swept away all the vestiges of the police state long maintained in Cameroon under the cover of Ordinance No. 62/OF/18 of March 12, 1962 on the repression of subversion. Indeed, this legislation had made impossible any democratic political life and had emptied of its substance the enjoyment and exercise of fundamental rights and freedoms guaranteed by the Constitution. Today, administrative custody seems to be one of the vestiges that has survived the passage of time. A unilateral prerogative of arbitrary deprivation of freedoms formerly held by the administrative authorities, administrative custody was formally instituted by law n°90/054 of 19 December 1990 on the maintenance of public order. In application of this law, and under the pretext – justified or false – of maintaining public order, the administrative authorities can request persons and property in the legal forms, request the forces of order, control the movement of goods and persons, but above all “take measures of police custody for a period of 15 days, renewable, within the framework of the fight against organized crime. This deprivation of liberty ordered by the administrative authorities is commonly referred to as “administrative custody”, which distinguishes it from judicial custody ordered in the context of criminal proceedings. At a time when most democratic systems are implementing a legal and institutional framework favorable to the rule of law and the development of fundamental rights and freedoms, it is not without interest to question the appropriateness of maintaining administrative custody in Cameroonian positive law, especially in normal times. Before mobilizing the arguments in favor of abolishing it (I), it is appropriate to first dwell on the difficulties it poses in the Cameroonian context (II).
Topic:
Democracy, Liberalism, Police State, Illiberal Democracy, and Administration
Political Geography:
Africa and Cameroon

45. The Financial Decentralization Of Local Governments Tested By The Principle Of Cash Flow In Cameroon

Author:
Theophile Nguimfack Voufo and Steve Tametong
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
In the face of the multiple socio-political crises that Cameroon is experiencing, the form of the state is now being debated, against the backdrop of the issue of governance. Seen in its political, administrative or financial dimensions, state governance has failed miserably in terms of socio-economic development issues. To remedy this, the public authorities recognize the need to complete the decentralization process. Is this commitment, which is regularly reinforced by the media, a way out of the crisis? From a legal point of view, the evolution of the decentralization process is marked by two fundamental requirements: the transfer of powers on the one hand, and the subsequent transfer of resources to exercise these powers on the other. Since 2010, the central executive has been committed to the transfer of powers to local authorities. However, the principles of complementarity, subsidiarity and even concomitance mark the return of the state, whereas decentralization implies a priority of action for the decentralized communities. In this respect, the transfer of powers is accompanied by the transfer of resources, in particular local taxation and allocations from the State budget. Local taxation, grants and own resources acquired by decentralized authorities constitute the basis of financial decentralization. It requires that the resources transferred to local governments be freely managed. This refers to the ability to mobilize these resources without being hindered by state bodies. This freedom remains an illusion in the presence of the principle of the unity of the treasury. This principle links the treasury of decentralized communities to that of the State, which can have several implications for the financial freedom of action of these communities. Given the current challenges of decentralization in Cameroon, the question arises as to whether the unity of the treasury is compatible with the financial decentralization of decentralized local authorities. Questioning the relevance of this principle allows us to verify whether this classic rule is not already obsolete in Cameroon. Analysis shows that the principle of the cash unit is incompatible with financial decentralization (I) and should be reconsidered (II).
Topic:
Government, Finance, Local, and Decentralization
Political Geography:
Africa and Cameroon

46. Youth and National Integration in Cameroon: An Analysis Based on Associative Movements

Author:
Fonkeing Fotabong
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Humanity today faces several challenges that need to be addressed in terms of health, terrorism, illegal migration, youth employment and especially the problem of youth education. Considered the “backbone of the nation” in many countries around the world, youth represent hope for future generations and stability for today’s society. While it is true that youth are perceived by many observers as “good-for-nothing” or “passive in society”, the African continent as we see it today faces major challenges that require strong actors capable of transforming the potential of youth into development opportunities. Given the current concerns in African communities, an analysis of this segment of the continent’s population, which has been growing exponentially in recent decades, is worthwhile. In an international context where transnationalism is the order of the day, associative movements are growing in size in States and are becoming important players in the construction of national integration. This analytical framework on the theme of youth helps to define the concepts of youth and associative movements, so that the reader can understand the extent to which young people in a state can contribute, via associations and groups, to making national integration a national priority or, to a certain extent, contribute to its materialisation. Thus, before starting the analysis of this theme, it is necessary to define the key concepts of this work, to make a panoramic presentation of the associative movements in Cameroon starting from the law, while drawing the parallel between the youth and the construction of a national integration with the aim of constituting and framing dynamics likely to capitalise on the youth as the Ariadne’s thread of a national integration to be preserved not only from insurrectionary movements, tribalism, but also and especially against the singers of secessionism.
Topic:
Youth Culture, Youth, Youth Movement, Integration, and Identity
Political Geography:
Africa and Cameroon

47. Youth Participation In the Local Development Plan In Yaoundé 4: Issues and Roles

Author:
Sonwa Momo Berenice Kylian
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Africa is a continent with a predominantly young population. The media and development experts around the world speak of it as a great wealth. Cameroon is one of those countries whose youth is the “driving force”. Lawn°2004/017of 22 July 2004 on the orientation of decentralisation in Cameroon, taken up by Law n°2019/024 of 24 December 2019 on the General Code of Decentralised Territorial Authorities, is quite explicit on the contribution of the population, and in particular young people, to their local development. For the voice of these young people to have a large-scale impact, coordination is needed. In this respect, youth organisations (associations) are likely to provide relevant solutions. This is the case of PIJEDECA (Independent Youth Platform for Democracy and Active Citizenship), which has been working for nearly five (5) years in mobilising youth around social, economic, democracy, citizenship and human rights issues. The ADEV (Association of Development Actors), for its part, “has been working for more than three years with women and young people in Cameroon society. “ From the outset, it is necessary to indicate what an association is in order to identify its role and its challenges in local development. Article 2 of Law No. 90/053 of 19 December 1990 on the freedom of association in the Republic of Cameroon provides that “association is the agreement by which persons pool their knowledge or activities for a purpose other than sharing profits”. This shows that the association has a collective function and does not aim at individual interest. It is in this pooling of skills that youth associations can effectively contribute to the development of their Decentralized Territorial Authorities (CTD). For the Confederation of Youth Organisations (COJ), “”a voluntary association of natural or legal persons that contributes to the development by young people of their personal skills in order to help them become active, responsible and critical citizens within society”. ». These organisations must be supported by young people who are committed to the development of a community, a territory, without neglecting the great contribution of volunteering. Several studies have been carried out on the contribution of young people to the development of their communities both in Cameroon and abroad. This is why it is important to specify the roles and issues of these youth associations in the commune of Yaoundé 4. In view of the above, what could be the roles and stakes of youth organisations in the development of Yaoundé 4? To answer this question is certainly to seek to establish a direct link between the civic commitment of these youth associations and their contribution to the development of Yaoundé 4.
Topic:
Development, Youth, Local, Participation, and Civic Engagement
Political Geography:
Africa and Cameroon

48. Evaluation of Mechanisms to Combat Gender-Based Violence In the Far North Region of Cameroon

Author:
Ernestine Joy Nyangono
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
According to the Committee of the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) and in accordance with the United Nations General Assembly Resolution 48/104, “gender-based violence (GBV)” is violence that is perpetrated against a woman or a man simply because she is a woman or because he is a man. This term is mainly used to highlight the systemic inequality between men and women, which exists in all societies in the world and is a founding and even unifying characteristic of most forms of violence committed against women and girls. Two important surveys that integrate GBV have been conducted in Cameroon. These are the 2011 and 2014 Multiple Indicator Cluster Surveys (DHS-MICS 2011 and DHS-MICS 5 in 2014). The DHS-MICS 5 of 2014 informs us that among women aged 15 to 49, one woman out of ten (11%) was married before the age of 15. Among women aged 20-29, about one in eight (13%) married before the age of 15. Three out of eight women (36%) were married before the age of 18. 31% of women report having been physically abused, 13% “often” and 24% “sometimes”. GBV can be seen in all regions of Cameroon, with a preponderance in the northern regions. In fact, for all forms of violence against women and girls, statistics show that 60% of women in the Far North region, 53% in the North and 43% in the Adamawa region are victims of GBV. In light of the current challenges related to GBV, it is necessary to examine the effectiveness of existing response mechanisms and to identify measures to be taken in order to revitalize them. Despite the extent and persistence of the phenomenon, there are very few studies on the situation of GBV in the Far North. The little information that does exist indicates that due to the security crisis in this part of the country and socio-cultural constraints, gender-based violence has continued to increase. In order to organise the response, the State of Cameroon, supported by its development partners, has initiated numerous large-scale actions aimed at strengthening the structures and mechanisms for combating and caring for women and young girls who are victims of such violence. However, the conflict linked to the incursion of the Boko Haram sect in the Far North and the rise of organised crime in the North and Adamawa regions have seriously affected all community protection mechanisms, thus reducing their response capacity. In light of the current challenges related to GBV, this study allows us to assess the strengths and weaknesses of existing mechanisms and to identify measures to be taken in order to revitalize them. The analysis of GBV response mechanisms revealed several gaps, especially in terms of human and financial resources. Indeed, several structures do not have the human resources needed to act effectively and suffer from a lack of funding for their functioning and activities. Despite the weak capacities of the actors in the GBV response chain, they have achieved satisfactory results, which not only contribute to the reduction of GBV, but also and especially to a better understanding of the phenomenon. To this end, recommendations were made to strengthen the global strategy at both the regional and national levels.
Topic:
Gender Issues, Gender Based Violence, Conflict, and Violence
Political Geography:
Africa and Cameroon

49. The Resurgence of Covid19 and its Impact on the Economies of CEMAC Countries

Author:
Cyriaque Junior Medjo Mekok
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
For more than a year, the world has been facing a phenomenon that has literally redefined habits within communities. This phenomenon is the global Corona virus pandemic, identified in December 2019 in China, in the city of Wuhan. Declared a pandemic by the World Health Organisation (WHO), it has multiplied cases of contamination and death throughout the world. As no country is self-sufficient, the Corona virus pandemic has forced all nations to adopt measures to protect their populations and territories. Since mid-January 2021, the WHO has authorised the release of Covid19 vaccines in the world in general and in Africa in particular. Astra Zeneca, Moderna, Pfizer/BioNTech, Johnson & Johnson and others are now being used to combat the disease. Even if their effectiveness is established at 66% in general against 85% for the severe forms, their ineffectiveness against the more contagious South African variant represents a disadvantage for their marketing in Africa. In order to better understand our subject, we will take stock of the resurgence of this crisis in the economies of the CEMAC countries (I), state its harmful effects on their economies (II) and provide prospects and solutions for economic recovery (III).
Topic:
Economics, Regional Cooperation, Pandemic, COVID-19, Health Crisis, and CEMAC (Central African Economic and Monetary Community)
Political Geography:
Africa, Chad, Cameroon, Central African Republic, Equatorial Guinea, Gabon, and Republic of Congo

50. Without a Birth Certificate, We Do Not Exist! (Re)Thinking the Civil Status System in Cameroon

Author:
Pierre-Claver Kamgaing
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Curious as it may seem in the 21st century, UNICEF estimates that three out of four children in the world have never been officially registered. . In Cameroon, 66.1 percent of children remain in hiding. . In other words, they live without existing, without being recognised by the country whose citizenship they claim. This situation, which is deplorable to say the least, has consequences for both the State and the individual concerned. For the state, the civil status file is essential for the implementation of public policies, because without a mastery of demography, it is impossible to make socio-economic projections. For the child, who has the right to register his or her birth, the absence of such a document excludes him or her from the education system and from the services necessary for his or her growth, thus exposing him or her to exploitation and violence. However, it should be noted that the Cameroon civil status system is not new. It was “designed” and its foundations laid at the beginning of the 20th century by the German coloniser, whose work was continued by the French and English administrations. However, this system was designed more for the European population established on Cameroon soil than for the “natives”. Moreover, the various texts adopted by the Cameroon legislator after independence are more like a simple assembly of old provisions. Moreover, on the sidelines of the ordinary session of the National Assembly in November 2020, the problem of establishing birth certificates was not missed by the deputies. The result is the need to rethink the civil status system in order to better adapt it to the socio-political evolution of the country. But how can this be done? This necessarily involves some profound and substantial reforms. However, before devoting any substantial development to this, it would be wise to first identify the causes of the failure of the civil status system in Cameroon.
Topic:
Civil Society, Governance, Citizenship, Social Order, and Identity
Political Geography:
Africa and Cameroon