Speeches Former Ambassadors
U.S. Ambassador Niels Marquardt
Remarks to the June 12 Meeting of the American Chamber of Commerce
June 12, 2007 - Hilton Hotel
(As Prepared for Delivery)
The Future of U.S. Business and Investment in Cameroon
U.S. Business in Cameroon Today
The U.S. is now recognized as the leading foreign investor in Cameroon, and U.S. business here is growing at a healthy pace, with investments planned that will exceed the value of the pipeline.
Among the most visible business successes in Cameroon in the past three years are: Le Bus/Le Car, Geovic, Hydromine (first BOT), Noble Energy and Marriott, joining the ranks of long-standing presences here such as COTCO, AES-SONEL, Dole, Del Monte, Chevron-Texaco and many others.
Despite challenges of Cameroonian market, there are many opportunities -- not only for “regular” business, but also for new commercial avenues made possible by AGOA.
Still much unrealized potential with respect to AGOA. U.S. market ripe for imports of processed agricultural products: juice, jam, dried fruit, canned fruit. Starbuck’s now buying Cameroonian coffee.
U.S. investment important not only for the income and employment it creates but also for the transfer of skills, management and marketing techniques, and international standards in service and ethics -- critical for success in the global economy.
American Chamber of Commerce (AmCham)
In this context, transformation of the ABA into an American Chamber comes at a critical time. You are now in the “big leagues” where you can -- and will be expected to -- be a serious player on policy as it affects the business community.
For the benefit of your individual businesses, for the benefit of the foreign business community, and for the benefit of Cameroon, I urge you to make the most of the American Chamber of Commerce.
Other American Chambers on the continent wield substantial influence with the government and in public opinion, and they use it responsibly to improve the business climate, create new jobs and new wealth for the nation.
I would like to share my thoughts on ways that the American Chamber of Commerce in Cameroon can evolve into such a meaningful body. I encourage you to:
- Make the most of your monthly meetings, identify speakers who will be able to make presentations that are meaningful and interesting to your membership.
- Identify modalities to carry out American Chamber-related activities outside your weekly meetings. For example: seminars, conferences, or American Chamber meetings with the Government can all “add value” to your American Chamber membership.
- Invigorate your membership, expand into new sectors and actively pursue American business interests that are not already involved.
- Seek alliances with other business associations and look for ways to collaborate with them.
- Be a strong, independent voice pushing the government to improve its governance, pointing out where improvement can be achieved and, just as important, applauding the successes.
I told the Finance Ministry that I would urge you to do this and have encouraged the Ministry to develop and maintain contact with you.
The Finance Ministry has been willing to engage on the full range of business community issues in Cameroon, recognizing that all types of things influence the willingness of a firm to operate here; security, schooling, infrastructure are all outside the Ministry’s responsibility, but affect the business community.
Be frank in talking about corruption, on governance in general (visas, customs, taxes, infrastructure) and on the business climate, helping the government identify what steps it should take.
Use the Embassy--keep us informed, let us know: what are your important issues? Give us the details and the information we need to be able to represent your interests most effectively with the government.
Use your national Embassies as well. The western diplomatic missions cooperate on a range of issues and can make a stronger impact when we speak with one voice.
I think of you as the AmCham for Central Africa, not just for Cameroon. So think beyond Douala, beyond Yaounde, beyond Cameroon. I hear from more and more business people who have been shipping to Chad through Lagos and finding it to be cheaper and easier. Much of Cameroon's potential lies in the role it can play as a regional leader. But if Cameroon, (and you all are leaders of Cameroon) doesn't start to think regionally, it will be left behind.
Corruption
Time has shown that my last address to you was overly optimistic about the timetable for the progress we all expected on combating corruption.
I know it has been frustrating for all who would like to see more done quickly.
Still, this is not about conducting a round-up and it is not in anyone’s interest to urge mass arrests.
Many of you have been in Cameroon far longer than I and you know well how deep and how complicated corruption schemes are.
It takes time to build strong cases and I believe the government wants to have iron-clad evidence before it orders further arrests and/or prosecutions.
About the only thing worse than slow movement to arrest would be premature action with insufficient evidence to support charges against the most egregious thieves.
I realize that some people will remain skeptical about the government’s commitment to thoroughly and aggressively pursing corrupt officials. My view is that we have to believe the government is serious about fighting corruption, because if this is not the case, there is no future for Cameroon.
Closing Thoughts
Talk of corruption is by nature discouraging, and it is easy -- tempting even -- to focus on what has not happened.
Let’s look instead at what has happened, bearing in mind that change anywhere can be intimidating and disruptive:
When I arrived in Cameroon in 2004 the country was heavily in debt and struggling to implement an IMF structural adjustment plan to get its economic and financial house in order and realize its aim of reaching the HIPC Completion Point.
Corruption was rampant, but even uttering the word was taboo and there was no serious discussion -- let alone action -- to address it.
The American business community was smaller, and investments not nearly as large, and the ABA was primarily a social organization. OPIC and the Export-Import Bank were all but absent from Cameroon.
Geovic was struggling to find a workable arrangement for local shareholders to participate in its cobalt mining venture.
The only form of public transportation in Yaounde was a taxi.
Three years later, Cameroon has reached the HIPC Completion Point and debt relief is paving the way -- quite literally -- to improved infrastructure (some Douala roads a dream compared to before), investment in health and schools, and an overall a slightly more attractive investment environment.
Corruption is openly discussed; President Biya has expressed his commitment to fighting it. CONAC is gradually being put in place with far-reaching authority. Ministers and other high-ranking public officials have been sacked, arrested, stripped of immunity and put on trial. Internal audits are being conducted in many more public entities than ever and their results publicized.
Cameroon is increasingly aware of what it needs to do to improve its business climate and is developing and implementing plans to address specific problems.
The AmCham should have a privileged position in the future private sector dialogue with government.
OPIC is actively seeking business opportunities here; three senior OPIC officials visited Cameroon last fall -- the largest and highest-level OPIC delegation to come here in years. They are already supporting two private investments here.
The U.S. firm Hydromine signed the first BOT agreement in Cameroon’s history for the construction of a rail line and deep sea port. Hydromine’s planned projects in Cameroon exceed the value of the Chad-Cameroon pipeline.
Their vision is ambitious: a new rail line from Edea to Grand Batanga, where Cameroon will finally have the deep-water port that it needs to remain competitive and dominant in the sub-region.
This future deep-water port will attract other investments, including the development of a major iron ore mining operation in the East province.
Geovic has a signed shareholders agreement with SNI participating in the project and representing all the Cameroonian shareholders; a model that might be replicated with other investors.
Clean, air conditioned busses operated by a private U.S. firm provide economical public transportation within Yaounde and between Yaounde and Douala. 30 more busses per month are scheduled to be added, city service will be expanded to Douala, and employment is expected to reach 4000 or more in the next few years.
Douala is going to get a Marriott hotel -- the first new, significant construction in Douala in a generation.
The ABA has transformed itself into an American Chamber of Commerce, codifying (so to speak) the enhanced stature of U.S. firms in Cameroon, both in quantity, quality, size and diversity -- giving U.S. business a voice commensurate with its contribution to the local economy.
In closing, I think there is a lot to be optimistic about, and I applaud the role the AmCham is playing, and will continue to play, in helping Cameroon realize its substantial economic potential.
If much of this does indeed come to pass, I believe Cameroon should emerge as The Economic Success Story for all of sub-Saharan Africa. The road to this reality is long and far from certain, but I encourage you all to believe in it and to stay the course.