COUNTRY HIGHLIGHTS Cameroon 2016 The World Bank Group conducted face-to-face interviews with top managers and business owners of 361 enterprises in Cameroon from July 2016 through November 2016. The Enterprise Survey (ES) sample is representative of Cameroon’s formal private sector. The ES covers several aspects of business environment along with measures of firm performance. Below are the main highlights from the survey. Firm performance in Cameroon is positive and higher than regional comparators Between 2013 and 2015 firms in Cameroon experienced 10 8 positive real annual sales growth (4%). Despite the 8 positive performance, the annual sales growth rate was 6 lower than in the period covered by the previous ES Percentage Percentage 6 (2005-2008) when sales grew at an annual rate of 9.1%. 4 Annual employment growth was also positive and 4 increased from 3.9% during the period 2005-2008 to 2016 CAMEROON ENTERPRISE SURVEY 2 2 6.2% in 20013-2015. For real annual sales, Cameroon outperformed the average for firms in the 30 Sub- 0 0 Saharan African countries (AFR30) for which ES data Real annual sales growth (%) Annual employment growth (%) are available. Cameroon2016 Cameroon2009 AFR30 However, the use of financial services by private firms has decreased since 2009 Fewer firms used financial services in 2016 than in 2009. 40 100 The share of firms that have a loan or line of credit has declined from 30% in 2009 to 14% in 2016. The 30 75 percentage of firms using a checking or savings account Percentage Percentage also fell from 93% 2009 to 79% in 2016. On average, 20 50 firm in Cameroon have less access to finance than the average for firms in regional comparators. The 10 25 percentage of firms with a bank loan or line of credit in Sub-Saharan African countries is 23%. The percent of 0 0 firms using a checking or savings account in the Africa Percent of firms with a bank loan/line Percent of firms with a checking of credit or savings account region is 87%. Cameroon2016 Cameroon2009 AFR30 And the regulatory environment is more cumbersome for firms in Cameroon, particularly among large-sized firms In 2016 firms in Cameroon spent more time dealing 20 40 with government regulations and obtaining licenses than 15 30 Percentage in 2009. The percent of senior management’s time spent Percentage dealing with regulations (“time tax”) increased from 7% 10 20 in 2009 to 18% in 2016. Furthermore, this figure is much higher than the average for firms in AFR30 (9%). There 5 10 is variation by firm size. Senior management in large firms spend far more time dealing with regulations than 0 0 small or medium firms. “Time tax” is 32 % among large- Senior management time spent in Senior management time spent in dealing with requirements of dealing with requirements of sized firms, 13% for medium-sized firms, and 18% for government regulation(%) government regulation(%) small-sized firms. Small(5-20) Cameroon2016 Cameroon2009 AFR30 Medium(20-99) Large(100+) Corruption has declined in Cameroon, but remains higher than in the regional comparators The share of public transactions that was 40 accompanied by the request of a gift or informal 35 payment (bribery depth) decreased from 28% in 30 2009 to 23% in 2016. The bribery incidence (i.e. the 25 Percentage share of firms that experienced at least one bribe 20 payment request across six transactions involving 15 access to utilities, permits, licenses, and taxes) also 10 decreased, from 34% in 2009 to 27% in 2016. 5 Despite this improvement, corruption is higher for 0 firms in Cameroon than in regional comparators, Bribery depth (% of public transactions Bribery incidence (% of firms where a gift or informal payment was experiencing at least one bribe payment where bribery depth was 28% and bribery incidence requested) request) 23%. Cameroon2016 Cameroon2009 AFR30 Cameroonian firms are falling behind their regional comparators on technology and innovation investments 40 20 Firms in Cameroon spend less on research and 2016 CAMEROON ENTERPRISE SURVEY development and are less likely to have their own 30 15 website than firms in the 30 Sub-Saharan African countries for which ES data are available. Only 6% Percentage Percentage 20 10 of firms in Cameroon spend on research and development and only 23% of firms have their own 10 5 website as compared to an average of 18% and 33%, respectively in the regional comparators. As 0 0 Percent of firms Percent of firms Percent of firms having its own expected, large firms are more likely to have their that spend on having its own website own websites; 55% of firms compared to 15% of research and website development small firms and 42% of medium firms. Small(5-20) Medium(20-99) Cameroon2016 AFR30 Large(100+) Informal competition is biggest obstacle facing firms in Cameroon Among 15 areas of the business environment, 23% Informal competitors Access to finance of firms in Cameroon chose informal competitors Electricity as the biggest obstacle to their daily operations. Corruption Tax administration Access to finance and electricity are the second- Crime, theft and disorder most and third-most frequently cited top obstacle Customs & trade regulations Tax rates among 20% and 13% of firms respectively. In 2009, Poorly educated workers informal competitors were yet again the most Transport Courts frequently cited biggest obstacle facing firms (25%). Licensing and permits Cameroon2016 Tax administration was identified as the second Access to land Cameroon2009 most frequently cited obstacle among firms in Political instability Labor regulations Cameroon in 2009 (19%). 0% 5% 10% 15% 20% 25% 30% Percentage of firms The Enterprise Analysis Unit is a joint World Bank and IFC team of economists, survey experts specialized in private sector development. Surveys implemented by the team reveal what businesses and firms experience across the world by interviewing representative samples of the formal, non-agricultural, non-extractive, private sector with 5 employees or more. The resulting globally comparable firm-level data is used to construct business environment indicators and measure firm performance. The findings and recommendations help policy makers identify, prioritize, and implement policy reforms that support efficient private economic activity. For more information on the survey visit http://www.enterprisesurveys.org Generated using Enterprise Survey data as of September 11, 2017