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FM AMEMBASSY YAOUNDE
TO RUEHC/SECSTATE WASHDC 9379
INFO RUEHZO/AFRICAN UNION COLLECTIVE 0241
RUCPDOC/DEPT OF COMMERCE WASHDC
RHMFISS/HQ USAFRICOM STUTTGART GE

UNCLAS SECTION 01 OF 02 YAOUNDE 001056 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ECON EINV ETRD BEXP KCOR CM
SUBJECT: CAMEROON OPEN(ING) FOR BUSINESS; COMMERCE AND ECONOMICS 
 
REF A YAOUNDE 738 
REF B YAOUNDE 909 
REF C YAOUNDE 714 
REF D YAOUNDE 999 
REF E YAOUNDE 967 
REF F YAOUNDE 1033 
 
¶1.  (U)  Summary:  Post has been heavily engaged in commercial and 
economic policy outreach, reflecting the priority given to enhancing 
bilateral trade and fostering economic development, a key Mission 
Strategic Plan objective.   Working under the aegis of a 
mission-wide Economic Working Group that meets quarterly, Post 
elements have collaborated on projects over the last semester to 
advance USG priorities with regard to AGOA, agricultural trade, 
Cameroon's prospects for an MCC program and its evolving 
relationship with the IMF, and bilateral trade.  A visit from the 
Department of Justice and FINCEN focused on strengthening Cameroon's 
financial sector, and visits from the Coast Guard and USTDA offered 
USG collaboration to improve Cameroon's infrastructure.  In the 
coming months, Post will lead a specially-tailored delegation of 
Cameroonian business leaders to meet with counterparts in the US, 
facilitate a Cameroonian delegation to a December Dental Convention 
in New York City, and highlight bilateral trade relationships with a 
series of activities at "Promote", a prominent trade fair in 
Yaounde.  End summary. 
 
The Economic/Commercial Context 
------------------------------- 
 
¶2.  (U)  Cameroon is the largest and most diversified economy in the 
Central African Economic and Monetary Union (CEMAC), and a keystone 
state for the region; almost all trade (including supplies for 
regional peacekeeping forces) with Chad and the Central African 
Republic, for example, transits Cameroon's Douala Port.  Despite the 
challenging business climate and strong links to Europe and former 
colonial power France, the United States remains the single largest 
investor in Cameroon.  The Chad-Cameroon Pipeline transects 
Cameroon, and American firms like Noble, Kosmos and Pecten are among 
the leading players in the oil and gas sector.  American energy 
giant AES is the nation's sole power distributor and largest power 
producer (almost 1000MW) since it won the concession to manage 
SONEL, the former power parastatal that was privatized in one of the 
largest and most significant privatizations in Africa's history. 
Smaller-scale trade is also on the rise, with U.S. exports to 
Cameroon rising 7% in 2007. 
 
Bilateral Trade and AGOA 
------------------------ 
 
¶3.  (U)  During the recent AGOA Forum in Washington, Post hosted a 
group of Cameroonian business leaders for a Digital Video Conference 
(DVC) to discuss implementation of AGOA with officials in Washington 
and other African countries.  Post sent a Pol/Econ officer to 
accompany Prime Minister Ephraim Inoni and his Cameroon delegation 
to the AGOA Forum, where Inoni emphasized that Cameroon is "not 
looking for hand-outs," but for increased opportunities for trade. 
Capitalizing on a visit from Dakar-based APHIS Director Cheryl 
French, Post arranged a seminar to train Cameroonian officials and 
exporters on phyto-sanitary norms in exporting to the United States. 
 Post also hosted a lunch with senior agricultural contacts to 
inform reporting on Cameroon's food situation and policies (ref a). 
Taking advantage of U.S. Patent and Trademark Office (USPTO) 
training opportunities, Post continued to send Cameroonian officials 
to the US for training on intellectual property enforcement. 
 
Economy, Finance and MCC 
------------------------ 
 
¶4.  (U)  Post continued its outreach to host and third country 
contacts, including meetings with the World Bank Resrep and staff 
and the World Bank's annual planning meeting in Yaounde.  Post 
tracked the future of the IMF program in Cameroon (ref b), the 
development of Cameroon's capital markets (ref c) and mid-term 
budget execution (ref d).  Responding to Prime Minister Inoni's 
efforts to restart Cameroon's moribund Millennium Challenge 
Corporation (MCC) campaign, Ambassador and Pol/Econ Officer 
delivered a powerpoint presentation for Inoni and his staff, 
explaining the MCC indicators and encouraging a strategic rethink to 
improve Cameroon's performance. 
 
Aggressive Business Outreach 
---------------------------- 
 
¶5.  (U)  Post has actively engaged the Douala-based Amcham, which 
has new leadership and appears more activist than in previous years 
(membership tripled in the past year).  During the Ambassador's 
recent trip to the three Northern provinces, post did extensive 
commercial outreach (ref e).  Post officers at various levels have 
provided support to American projects as diverse as Hydromine, the 
American-led $6 billion bauxite mining project, and Globetournet, a 
$4 million Cameroonian consortium leveraging EXIM financing to 
 
YAOUNDE 00001056  002.2 OF 002 
 
 
purchase American products (more than $100,000 to date) to provide 
world-class internet service to Cameroonian households. 
 
Successes:  Business Ventures 
--------------------------------------- 
 
¶6.  (U)  The last few months have witnessed a series of important 
victories for American investment in Cameroon.  Paul Hanrahan, CEO 
for American power giant AES, met with President Paul Biya in July 
to discuss AES' plans to reinvigorate its management of AES SONEL, 
Cameroon's power distributor and largest power provider.  Hanrahan 
also announced that AES would create a new company headquartered in 
Cameroon, the West Africa Power Company (WAPCO) to develop power 
projects in the region.  Hanrahan's visit was followed by a 
long-awaited breakthrough on AES' negotiations with Cameroonian 
aluminum smelter ALUCAM, an agreement with the GRC and financers for 
AES' Kribi Power Development Company project (for a heavy fueled 
plant at Kribi) and an aggressive plan by AES to invest in 
rehabilitating existing infrastructure. 
 
¶7.  (U)  Similarly, Hydromine obtained long-awaited GRC approval for 
an 18-month extension to its exploration license for a multi-billion 
dollar bauxite resource in Cameroon's Adamaoua Province.  Hydromine 
and partners Hindalco (Indian) and Dubal (Emirati) will proceed with 
feasibility studies and plans for the necessary power production 
facilities.  Hydromine has also engaged with the Ministry of Economy 
and Planning to be included (along with more than a dozen economic 
interests) in the development of a long-promised deep water port at 
Kribi. 
 
Successes:  Ports and Energy 
---------------------------- 
 
¶8.  (SBU)  Officials from the US Coast Guard, accompanied by 
Emboffs, visited Cameroon's port facilities and called on transport 
officials in August in an effort to improve Cameroon's 
implementation of the ISPS code for maritime security.  Preliminary 
reports indicate that Cameroon has improved its procedures, and the 
Coast Guard and Embassy officers will work with Cameroonian 
officials to digest the results and chart next steps.  Post hosted 
the visit of two officials from USTDA in May, who launched $1.5 
million in feasibility grants to develop much-needed power projects 
at Limbe and Bini-a-Warak.  Ambassador Garvey's remarks at the 
signing ceremony highlighted ongoing concerns about the commercial 
environment in Cameroon.  Pol/Econ staff called on government 
officials and civil society representatives in Cameroon's East, 
North and Adamoua Provinces to discuss the impact of long-promised 
mining projects (ref f). 
 
More to Come... 
--------------- 
 
¶9.  (U)  Continuing the successful and hugely popular biannual 
Business Forum series, Post is organizing a specially tailored 
program tied to the Chicago Pack EXPO, during the second week of 
November.  The Forum will also include meetings with targeted 
American companies and special opportunities for secondhand auto 
sales.  Past Business Forums (this is our eighth year managing the 
Forum) have yielded significant successes in terms of fruitful 
business relationships and new imports of American products. 
¶10.  (U)   Post will also facilitate a Cameroonian delegation to the 
December Dental Forum in New York City.  Taking advantage of 
"Promote," Cameroon's largest trade fair, the Commercial Section is 
teaming up with the AmCham and Prince Geogre's County's Africa Trade 
Office to highlight the growing importance of American trade with 
Cameroon and Central Africa. 
 
¶11.  (SBU)  Comment:  The World Bank regularly ranks Cameroon as 
among the most difficult business climates in the world, providing a 
particular challenge for commercial and economic policy work. 
Prospective American businesses turn to the Embassy for help at 
almost every stage of their development, from navigating the 
political hierarchy to dodging the pitfalls of a mine-laden 
bureaucracy.  The good news is that the American brand is highly 
valued at all levels of Cameroonian society, and Cameroon is 
shamefully rich in economic potential.  The challenge is working 
with American companies and promising Cameroonian partners to 
transform that potential into reality.  Post has a fully engaged 
commercial staff and could make good use of more resources Q the 
business is here! 
 
GARVEY