2025/002, signed by President Paul Biya in July 2025, the country has overhauled its investment promotion framework — replacing broad, automatic tax holidays with a performance-based model that rewards measurable impact.
Under this new regime, fiscal incentives are no longer guaranteed but earned through demonstrable contributions to the economy in areas such as job creation, local sourcing, value addition, and export growth. Incentives are granted for defined periods — five years for installation and five years for exploitation (extendable to seven years in Special Economic Zones) — and are targeted at strategic sectors including agro-industry, energy, manufacturing, health, education, digital infrastructure, tourism, transport, and large-scale distribution. By contrast, petroleum, mining, and general commerce are excluded.
Key Investor Obligations
To qualify for benefits, investors must meet at least two of five eligibility thresholds, including:
- Creating one Cameroonian job per XAF 50 million invested
- Using at least 50% local raw materials (excluding utilities)
- Selling 40% Cameroonian-origin goods (for distribution projects)
- Achieving 30% value addition
- Exporting 25% of turnover in locally manufactured goods
Expansion projects must further demonstrate at least a 20% increase in both output and workforce.
What’s Changing
- Higher entry bar: Eligibility now requires meeting two of five strict criteria.
- Two-phase incentives: Installation (tax exemptions) and exploitation (reduced duties and credits).
- Sector focus: Benefits restricted to priority industries that align with Cameroon’s development agenda.
- Scaled benefits: Incentives tiered by investment size — below XAF 1 billion, between XAF 1–5 billion, and above XAF 5 billion.
Why It Matters
This reform reflects Cameroon’s shift from blanket generosity to accountability. Backed by both the IMF and domestic business associations, the framework ensures that fiscal incentives directly translate into economic impact. For investors, this means that success will depend on aligning with national priorities — creating jobs, building local supply chains, and boosting exports.
Cameroon is not just raising the bar — it is raising the opportunity. Those who adapt to the new model will not only unlock significant fiscal benefits but also position themselves as long-term partners in Cameroon’s growth story.
How CLG Can Help
Navigating this framework requires foresight, structuring, and compliance. CLG’s multidisciplinary team is uniquely placed to support investors across every stage — from designing projects that meet eligibility thresholds, to optimising tax and customs benefits, ensuring regulatory compliance, and aligning with Cameroon’s broader development agenda. With deep experience in energy, infrastructure, and cross-border investments, we help our clients go beyond qualification — ensuring they capture long-term value in a more competitive and accountable investment environment.
