NEWSLETTER

14 – 27

DECEMBER

2015

Standard Chartered

Bank Cameroon:

Chucks Ugha

Over as CEO

Since 1 December 2015

Chuks Ugha

appointed as

CEO of

Chartered

Cameroon, whose choice

had been approved by

the regulatory authorities

of the banking sector

according to

statement released

December 24, 2015

the bank.

Chuks Ugha

combines about 24

of experience in

banking industry

over from

Mathieu

transferred

the Mauritian

of Standard

Bank.

The new CEO

with the place

heading.

promotion to

Chuks Ugha

as head of corporate

NEWSLETTER

DECEMBER

Standard Chartered

Cameroon:

Ugha Takes

as CEO

December 2015,

Ugha has been

appointed as the new

CEO of Standard

Chartered Bank

whose choice

approved by

the regulatory authorities

of the banking sector,

according to an official

statement released on

December 24, 2015 by

Ugha, which

about 24 years

of experience in the

industry, takes

Cameroonian

Mandeng,

as CEO of

the Mauritian subsidiary

of Standard Chartered

CEO is familiar

with the place he will be

. Before his

promotion to CEO,

Ugha had worked

corporate and

institutional clients at

Bank Cameroon.

Source: adapted from the article “

Mathieu Mandeng au poste de DG de Standard

Chartered Bank Cameroun

www.investiraucameroun.com

Douala Stock Exchange: Fewer Taxes

for Listed Companies

The 2016 Finance Law has several measures

to improve the business climate in Cameroon.

The government proposed and the national

representation has already passed the

Finance Law, containing new measures to

improve the business environment.

businesses are concerned

be noted.

Flexibility in Leasing

The 2016 Finance

simplification of procedures for

reimbursement of VAT credits to leasing

companies." Knowing that a VAT credit

be evidenced in order

provision comes in to

documents for leasing companies such as

Africa Leasing Company

They would then have more cash i

continue to grant facilities to SMEs which

request them, waiting for the others

their loans.

Listing on the Douala Stock Exchange

As part of the diversification and

of sources of financing of the economy, the

government provides for the ext

years of reduction of company

granted to companies listed on the stock

1

at Standard Chartered

Source: adapted from the article “Chuks Ugha remplace

Mathieu Mandeng au poste de DG de Standard

Chartered Bank Cameroun”, Investir au Cameroun

www.investiraucameroun.com

Douala Stock Exchange: Fewer Taxes

for Listed Companies

2016 Finance Law has several measures

to improve the business climate in Cameroon.

The government proposed and the national

representation has already passed the 2016

, containing new measures to

improve the business environment. As far as

are concerned, here is what should

The 2016 Finance Law proposes "the

simplification of procedures for

reimbursement of VAT credits to leasing

companies." Knowing that a VAT credit has to

be evidenced in order to be repaid, the new

in to lighten the supporting

for leasing companies such as

Leasing Company and Alios Finance.

They would then have more cash in hand, to

to grant facilities to SMEs which

request them, waiting for the others to repay

Listing on the Douala Stock Exchange

As part of the diversification and enhancement

of sources of financing of the economy, the

government provides for the extension of three

years of reduction of company tax rates

to companies listed on the stock

2

exchange in Douala. The first period expires in

2016. Through this measure, the tax

authorities want to encourage companies to

use the stock exchange to raise finances.

Concretely, any business that registers on the

DSX will pay less company tax.

Tax Relief

According to the provisions of the 2016

Finance Law, companies operating in sectors

with homologated prices will benefit from tax

relief; an advance deposit rate of 2.2% will be

applied on their margin and not on their

turnover. Indeed, the advance deposit of 2.2%

on company tax has been applied since 2015

on turnover. By applying this rate on the

company’s margin, companies will pay less,

because the margin is less than the turnover.

The impact of this measure will be felt directly

on their treasury, since there will be more

liquid cash available to meet up with other

commitments.

Support for SMEs

SMEs will be provided with additional

incentives, in order to encourage them to join

the authorized management centres (Centres

de gestion agréés - CGA). These include lower

fees and membership dues, currently set at

XAF 400,000 a year. Member companies will,

by 2016, be exempt from tax audits for the

period prior to their subscription, and benefit

from the systematic reduction of penalties for

future controls. More specifically, they will

benefit from a 50% reduction of income tax.

Meanwhile, CGA promoters will simply be

exempt from income tax. CGAs offer to SMEs

and craft enterprises support in resolving their

tax issues including the filling of the statistic

and tax return.

Source: adapted from the article “Bourse de Douala:

moins d’impôts pour les entreprises cotées”, Cameroon

Tribune www.cameroon-tribune.cm

In 2015, the Growth Rate in the

Cemac Zone Peaked at 2.4%, a Drop

of 2% Compared to 2014

The growth forecasts announced at the

beginning of 2015 for the six member States

of the Cemac (Cameroon, Congo, Gabon,

Equatorial Guinea, Chad and CAR) were not

achieved. This is at least what indicates the

communiqué published at the end of the last

BEAC Monetary policy Committee (Comité

de politique monétaire - Cpm) meeting for

2015, held on 17 December in Yaoundé.

Indeed, after the growth dropped to 1.6% in

2013 and jumped back to 4.4% in 2014, the

BEAC, issuing institution for the members of

the Cemac zone, planned on a stabilisation of

the growth rate in this community area during

2015. So much so that by March 2015,

forecasts were posting the growth at 4.2%.

But, on 17 December, BEAC rather noted a

drop of 2 points compared to the previous

year, the growth rate in the Cemac zone

having finally reached 2.4%.

Even though the Central Bank does not

provide any explanations for this slowdown in

growth in its communiqué, it is possible to

link this situation to three phenomena: The

drop in the global oil prices (5 out of the 6

member States of Cemac are oil producers),

with the price of a barrel of crude oil dropping

by 50% since the second half of 2014; the

ongoing political instability in CAR; as well as

the general insecurity in the Extreme-North

region of Cameroon and in Chad, due to

3

kamikaze attacks committed by the Nigerian

sect Boko Haram.

Source: Business in Cameroon

www.businessincameroon.com

MTN Cameroon Launches 4G

Mobile Network in Major Cities

MTN Cameroon, one of the central African

country's main cell phone providers, has

announced the launch of a 4G mobile network,

which the company said would help boost

Cameroon's economy and access to basic

services.

MTN Cameroon says it has nearly 10.4

million subscribers out of a population of

about 22.8 million.

"The 4G of MTN Cameroon is an evolution,"

Linda Kouam, MTN's chief marketing officer,

told journalists on Thursday.

"Cameroon's economic growth will change.

It's access to education for millions of young

people; it's access to healthcare, to sanitation

programs in the whole world."

The network will be rolled out in Yaounde, the

capital, and to regional hubs Douala, Bamenda

and Buea.

Valentin Simeon Zinga, a spokesman for

Orange Cameroon, MTN's chief competitor,

said it had the technical and technological

capacity to roll out its own 4G network but

was waiting on government regulation.

Cameroon's Telecommunications Regulation

Agency was unable to comment immediately.

Gabon's Airtel launched a 4G network last

month.

Source: Reuters www.reuters.com

Markets as at December 27, 2015

Against XAF (Indicative only)

XAF

USD 598.8834

EUR 657.3191

GBP 890.4692

Source: www.exchangerates.org.uk