Gov’t’s Point of View on What Drags Kribi Car Plant (Business in Cameroon) – In a press conference last Friday, Lu Fuqig, Chief Executive Officer of Cameroon First automobile Manufacture Co Ltd, the country’s first automobile factory, claimed the company would have taken off before now but for government’s laxity. But, sources working on the project say the exact opposite. Announced in November 2012, Cameroonians are still waiting to know the progress of the vehicle assembly project in Kribi. And, it turns out that the life of the car plant hangs on the recently passed law on incentives for private investments in Cameroon. So far, regulations implementing the law have not yet been signed, making it difficult, if not impossible, for the signing of the agreement needed to start work on this automobile assembly plant. “As soon as application text is signed, the agreement will also be signed,” Cameroon Tribune quotes a source close to the Ministry of Industries and Technological development. However, the source blamed the delay of the project on the Chinese investors. “After signing the Memorandum of Understanding on November 28, 2012, they (note: Chinese investors) disappeared. It was not until the end of May that they came back, wanting to immediately sign the agreement,” he adds. And, says another ministry official, “It was not until mid-June that the company appointed a local representative in Cameroon-the mayor of Kribi I.” On February 18, 2013, government created a steering committee to manage the project in a more professional manner. Since the audience granted to Chinese investors by the Head of State, Paul Biya, government has taken the time to investigate their seriousness and most importantly the feasibility of the project. “In view of signing the agreement, we (State of Cameroon) must know what they can do and what we must concede. It means jobs to be created, transfer of technology, compliance, preserving the environment,” adds another source. However, she concludes, “the project has a favorable perspective and an agreement could be signed in the course of this month.” Although, our source working on the project and the Prime Minister’s office denies an agreement could be signed soon. The Chinese have to grabble with the search for funds as the Cameroon government has refused to investment in the project. “They (Chinese investors) want Cameroon to bear part of the risk in the investment. That is why they are asking government to take a 30% stake in the company,” our source said. “Even if the funding is finally available the start of the project is not imminent. Take for example, the second bridge over Wouri River, the money was available three years ago but the foundation stone is yet to be laid. Cameroonians should not hold their breath,” he added.
Posted on: Fri, 05 Jul 2013 13:13:18 +0000
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