REPUBLIC OF CAMEROON REPUBLIQUE DU CAMEROUN

1
PEACE-WORK -FATHERLAND PAIIX-TRAVAIL-PATRIE
MINISTRY OF HIGHER EDUCATION MINISTERE DE L’EDUCATION SUPERIEURE

INVESTING IN THE COMMERCIAL SECTOR. THE KEY TO AN

EMERGING CAMEROON BY 2035
Written by :

FOUNJOUOM NGAMDOYA HAMMA SALMATOU

DJANGUE MBANG CHRISTIAN IVANO
NEMALEU DOMINIQUE
NDUBUISI CHINYERE CLAUDIA
MOFO FOTIO STEVE WALKER
MBOUOMBOUO NJAPNDOUNKE AWA ROUCHDA
DJOUMESSI GUIMFACK BLONDELLE
ENDEU VANELLE
KWA EDITH BIH
GOUMENI OUANSI SARRIETTE GOLDY

JEAZET DONGMO MEGANE CHRISTELLE

MOUSSANGO MWA LOBA JOSUE

KAMENI
K CARLYSE LEONELLA
NZOYEM NEBOT JORES KEVIN
COURSE INSTRUCTOR : DATE : :
DATE -10-
DR.NGUEA DIPITA 27 10 2022
27-10-2022
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i. DEDICATION
As well as everything that I do, I would be honour to
dedicate this work to my dear parents and my lovely instructor DR.
NGUEA DIPITA. Our parents supports us In every steps we make
and decisions we take while our lovely instructor gives us the tools
and values necessary to be where we are today. We will never finish
to thank our parents and our dear instructor for all the opportunities
that they have given and continues to give. We are more graceful with
our parents for trusting in us that we will do a good job in the
university, and letting us come to achieve a higher education.

So that’s why we dedicate this Portfolio to our parents and

instructor whom expect our efforts on everything we do and we think
that this Compilation is the perfect image and perfection of our
efforts on Reading and Writing Skills.
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ii. ACKNOWLEDGEMENT

We would like to express my special thanks of gratitude to my

instructor “DR.NGUEA DIPITA” for his able guidance and support in
completing our project.
We would also like to extend our gratitude to the Principal
“DR.BONA BONA THEOPHILE” and Vice principal “DR. HOFUE”
for providing with all the facilities that were required.

DATE : FOUNJOUOM SALMA

27-10-2022. Group Leader
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iii. PREFACE

In our compilation we discuss both about experiences and

actualities. After sharing our experiences and research among
us, we realised that we could help others with valuable
knowledge about life business.

“The compilation is for everyone who is struggling

to find their place in the world.” So by then we intended our
research to help you, the reader, approach the field of business
investment.
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iv. ABSTRACT
This study seeks to identify,compare,differentiate and
identify the “Commercial sector” as the major sector leading
to development regardless from other sectors in Cameroon. A
comparative study is often conducted in the early stages of
development of a branch of science in order to help research
to progress from the initial level of exploratory case studies to
a more advanced level of general model invariance, such as
causality. Furthermore, a comparative study can also help in
understanding the root cause of the development and/or
weakness of one system (economy). A detail analysis of the
Commercial sector of Cameroon will help understand whether
or not investing in this sector is more beneficial to the country
than investing in the other sector such as;
Agricultural,Industrial or again Energy sector. The paper first
introduces the Commercial sector and examines it’s
development through out the year. This is to help
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understanding the nature of the sector. The paper then analysis

the actuality of the sector,that is,the actual description of the
sector in the country and it’s nature. This is to show how the
sector has been functioning and is functioning through out
time. Advantages of investing in the sector then
follows,outlining the importance of investing in this sector
and how profitable it will be to both the government and it’s
citizens. Case studies are therefore included to better
understand and show proves that investing in such a sector
will not be a lose but rather a great interest to the country and
it’s citizens. So,it is not much to say that this portfolio verses
us with the methods and solutions that can be use to make
Cameroon an emerging country in the future years through an
investment in the Commercial sector. This therefore makes
the work one of the most interesting and inspiring one towards
a step to an emerging nation.
TABLE OF CONTENTS

 CHAPTER ONE……………………
Introduction to the commercial sector
 CHAPTER TWO……………Actuality of the
commercial sector in Cameroon
 CHAPTER THREE……………Why investing
in the commercial sector
 CHAPTER 4………………….Case Studies
• DENMARK
• SOUTH AFRICA FRANCE
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CHAPTER ONE: THE COMMERCIAL SECTOR

I. INTRODUCTION:
Commercial sector is an energy-consuming
sector that consists of service-providing facilities and
equipment of businesses;Federal,states,and local
governments;and other private and public organisations,such
as religious,social, or fraternal groups.
Cameroon is a country in Western Africa that
borders that Bight of Biafra. Neigboring countries include the
Central African Republic,Chad,the Republic of the
Congo,Equatorial Guinea,Gabon and Nigeria. The geography
of Cameroon is diverse with coastal plains in the south west,
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plateau in the center, mountains in the west and plains in the

north. The government system is multiparty presidential
regime republic.

CHAPTER 2: ACTUALITY OF THE

COMMERCIAL SECTOR IN CAMEROON

Recent macroeconomic and financial developments

In 2021, GDP growth picked up to 3.5% from 0.5% in 2020, driven by
revival of nonoil activity and continued investment. The budget deficit
narrowed to 3.1% of GDP in 2021 from 3.3% in the two previous
years, stemming from budgetary consolidation measures aimed at
reducing expenditure and increasing nonoil budgetary revenue. Of the
SDR 264.5 million allocation in August 2021, SDR 61.5 million was
used in fiscal year 2021. The realization of structural infrastructural
projects financed for the most part by commercial and public loans
and implemented within the framework of the country emergence
politics has led to a strong increase in debt. The rate of public debt
distress rose from 28.8% of GDP in 2015 to 46% in 2021. Inflation
reached 2.5% in 2021, up from 2.4% in 2020, owing to a price control
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system for necessities. In March 2022, the central bank raised its
principal key rate from 3.5% to 4%. Gross receivable NPLs
represented 16.8% of outstanding banking system loans. The current
account deficit widened to 4.1% of GDP in 2021 from 3.5% in 2020,
linked to the sharp increase in import prices. Foreign exchange
reserves fell slightly in 2021 to 3.7 months of imports from 3.8
months in 2020. In 2021, the unemployment rate stood at 6.1%, up
from 3.84% in 2020, while the underemployment rate declined by 4
percentage points, to 65%.

Outlook and risks

Growth could reach 4.1% in 2022 and 4.3% in 2023, due particularly
to increased gas output. With continued budgetary consolidation
engaged within the framework of an economic and financial program
signed with the IMF in July 2021, the budget deficit is forecast to
improve to 1.9% of GDP in 2022 and 1.3% in 2023. Inflation should
remain below 3% in 2022 and 2023, due mainly to continuation of the
price control system and government consultation with actors in the
production and marketing of the main consumption products. The
current account is likely to remain in deficit, owing to the rigidity of
the decrease in import prices. Foreign exchange reserves are projected
at 3.9 months of imports in 2022 and 4.2 months in 2023. Yet, the
outlook remains uncertain— and dependent on the evolution of the
health crisis as well as on the adherence of a greater number of the
population to vaccination, the continuation of barrier measures, and
global supply chain disruptions.

Climate change issues and policy options

Cameroon is 68 on the 2021 GCRI. It is subject to flooding,
deforestation, recurrent droughts in the north, and an uncertain
duration of rainy seasons. Climate change heavily affects the
agricultural sector, and more particularly agro-industry, which
accounts for nearly 33% of industry sector output. The urbanization
rate, which reached 58% against the average of 41% in Sub-Saharan
Africa in 2020, heightens challenges of sustainable urbanization,
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urban planning, and pollution reduction. The Nationally Determined

Contribution, submitted in October 2021, aims to reduce emissions by
35% by 2030. The share of the population with access to electricity is
90% in urban areas against only 20% in rural areas. The proportion of
renewable energy in the electricity mix is predicted to reach 25% by
2035, up from 2% in 2019. The population’s water access rate reached
nearly 62% in 2020, with a target of 80% in 2025.
CHAPTER THREE: REASONS FOR INVESTING IN THE
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COMMERCIAL SECTOR
• DIVERSIFICATION : Commercial real estate price movements
tend to have a low level of correlation with traditional asset
classes like stocks and bonds. Because of this, ownership can
lend an investment portfolio another level of diversification,
which is helpful in an economic downturn.
• “FORCED APPRECIATION : Unlike residential properties, which
are valued on sales comparables, commercial spaces are valued
on the amount of Net Operating Income (NOI) they produce.
Because Net Operating Income is calculated as a property’s
income, less operating expenses, the property owner can have
a direct impact on this equation and on the overall value of the
property. By pursuing strategies that seek to increase revenue
(rent), reduce expenses, or both, an owner can increase Net
Operating Income, thereby “forcing” the value of the property
to rise.
• DISPERSION OF VACANCY RISK: Most commercial properties
have more than one tenant, which means that a decision by any
one of them not to renew a lease will be less impactful than it
would in a residential property. For example, in a 300-unit
multifamily property, the decision of one tenant not to renew a
lease is a relative non-issue. Commercial properties allow
investors to distribute their vacancy risk over multiple units,
making these investors less reliant on any one unit for income.
• INCOME: Because tenants pay monthly rent to the property
owner, one of the major benefits of commercial real estate
ownership is the income stream produced by these ongoing
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payments. And if the property is purchased at an attractive
price, income alone can provide a solid return.
• LEASE ESCALATIONS: Commercial leases commonly include
“escalation” clauses that mandate rent increases at set intervals
over the lease term. Assuming that expenses stay relatively
constant, contractually mandated lease escalations mean that
the income produced by the property will continue to increase
over time.
• TAX ADVANTAGES : There are two major tax benefits to a CRE
investment. Because the physical condition of real estate
degrades over time, the owner is allowed to “expense” a
portion of its value each year to account for it. This expense is
known as “depreciation” and it can be used to reduce the
property’s tax liability. Further, capital gains taxes realized upon
sale can be deferred indefinitely through the “1031 Exchange”
program as long as sale proceeds are reinvested into another
real estate property of “like kind.”

• INFLATION PROTECTIONS: Because commercial real is a

physical, “tangible” asset, it tends to be a good hedge against
inflation. This is because real estate developers target a certain
return on cost before committing their funds. If the numerator
in this calculation (Net Operating Income) does not rise fast
enough to offset an increase in costs (driven by inflation),
developers will postpone the start of new projects, which limits
the supply of available inventory. And in a supply-constrained
market, rental prices tend to rise, driving Net Operating Income
and property values higher. These value increases tend to keep
pace with inflation, which is why commercial real estate can be
a good hedge.
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• AVAILABILITY OF DEBT: Finally, the income producing nature of
commercial properties make them a comfortable risk for
commercial real estate lenders. Regardless of property
type,debt is widely available at generally favorable terms for
commercial real estate investors

CHAPTER FOUR: CASE STUDIES

 DENMARK

II.2 How Denmark has Attained Decent

Work
Decent work in Denmark is the result of both institutions and
policies. These were not designed in one stroke. They have
emerged over time, sometimes in piecemeal
fashion. There is a long history behind the way in which the
Danes tackle their social problems. At times, there has been
conflict and confrontation between various parties.
But gradually, relations evolved in line with commonly
defined and accepted principles and rules that underlie
a culture of dialogue negotiation and compromise.
Institutions
Institutions are increasingly recognized as an important
dimension of economic
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growth and development. They structure political, economic
and social interactions, reduce transaction and information
costs and facilitate shaping of agreements and policies among
actors. This is especially the case for labour market
institutions, viewed by some as determining growth and
development. Such institutions form an essential part of
Denmark’s overall performance.
Basic Institutional Features
At the core of the Danish model lie some basic institutional
features:
• A high degree of political and economic decentralization;

• An economy largely based on small and medium-sized

enterprises – enterprises with nine or fewer employees
account for 90 percent of all firms;
• An open economy – exports and imports are each
equivalent to about 30 percent of GDP;
• A homogeneous and egalitarian society, where income
differences between top and bottom earners are relatively
narrow;
• An active society in terms of participation in social, cultural
and political affairs.
In practice, Denmark has a remarkably flexible economic and
social organization.
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This flexibility is based on dialogue, mutual trust and
cooperation stemming from shared basic values.
This tradition has its roots in the strong cooperative
movements in agriculture, and in the crafts and guilds that
started to forge industrialization in the latter half of the
nineteenth century. It stems from the self-reliance of small
agricultural communities and the popular high school
movement. But it has been reinvented several times as
challenges and new situations have emerged. The success of
small firms in Denmark owes much to their tradition of
cooperation as well as the shaping of local private and public
support systems. These cover areas such as product and
technology development, export promotion, credit financing,
training of the workforce and social
and labour market security.
Cooperation is perhaps best exemplified in the extensive
consultations and negotiations among employers’ and
workers’ organizations. Typical areas for collective
bargaining, which takes place at various levels, are wages,
pensions, supplementary social benefits and working time.
Other areas, such as productivity, work organisation,
occupational safety and health, training and education, labour
market policy and unemployment benefits, are addressed
through consultation and cooperation at enterprise, local and
national levels.
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 SOUTH AFRICA
ii. Lowering barriers to entry and addressing distorted patterns
of ownership through
increased competition and small business growth
Barriers to entry distort product markets and reduce the
incentives for productivity and innovation, which directly
inhibit growth. Large and old firms continue to dominate the
economy as well as employment dynamics. New firm entry
and effective rivalry among existing firms can generate
significant consumer welfare benefits.
Several cross-cutting interventions can lower barriers to entry
across a number of sectors:

• Competition and market structure issues should be

considered in the drafting of new legislation, policies, and
regulations.
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• Development finance should be made more accessible to
new entrants by the
Industrial Development Corporation and others. A small
business and innovation fund is being created to focus on the
ideation and start-up phases of a business where the market
failure in small business finance is most binding.
• Government support, in the form of incentive
programmes, needs to be better communicated and simpler
to apply for, especially for small business.
There are a variety of other interventions that would support
the growth and entrance of rivals in specific industries.
• The regulatory provisions in network industries such as
telecommunications and banking should be changed to
favour rivals provided these do not harm financial stability—
for example, conditions for banking licences can be made less
onerous and banking regulations should be more flexible to
new developments, such as the growth of mobile money in
the rest of Africa.
• Addressing exclusive leases is critical to create more
competition among supermarkets. The Competition
Commission is working to ensure that existing supermarkets
do not enter into leases with exclusivity clauses. The
Competition
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Commission should reduce the duration and scope of these
clauses in instances where such leases have already been
entered into. Municipalities should tackle exclusivity
directly through planning policies.
• Switching costs could be reduced by instituting a
regulated switching process with
mandatory timelines in banking and telecommunications. The
South African
Reserve Bank should exempt consumers from interest, penalty
fees, and other charges incurred due to delays in switching
bank accounts. Clear guidelines to facilitate mandatory
sharing of Financial Intelligence Centre Act information can
also ease switching.
While large businesses have the resources to navigate their
way in a variety of circumstances, the combination of
impediments such as a high regulatory burden, inflexible
labour markets, and high levels of concentration present
significant obstacles for small business. The costs of
compliance with red tape (e.g. obtaining black economic
empowerment
(BEE) certification, applying for a tax incentive, or accessing
a learnership through a sector education and training authority
(SETA)) is the same across companies, making it much more
expensive in relative terms for smaller companies.
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• Lower barriers to entry can be facilitated by reviewing
red tape around licensing and municipal servitudes and
introducing a ‘silence is consent rule’ for licensing procedures
that have low associated risks.

• Small businesses should be supported through public

procurement: late payments by government to small business
should be addressed (perhaps by allowing for automatic
addition of interest on outstanding balances after a certain
period). Governments and state-owned entities need to, where
possible, draft tenders to create greater opportunities for small
business. Acting as a sub-contractor to a large firm is one way
for a small business to enter global value chains and to get
into longer-term contractual relationships that can unlock
access to credit—a dispute resolution mechanism in the
Chief Procurement Office or a separate ombudsman can
improve oversight and monitoring of subcontracting
relationships.
• A commitment to a reduction of red tape can unlock
opportunities for small businesses.
The Red Tape Impact Assessment Bill, which was rejected by
parliament on procedural grounds, could be revisited. The
proposed bill requires all departments and self-regulatory
agencies to reduce red tape by 25 per cent over five years. The
government should consider full or partial exemptions for
small businesses from certain kinds of regulation (e.g. the
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extension of bargaining council agreements) can assist small
businesses (and other new market entrants)—special
economic zones can be used as potential places where these
types of interventions can be piloted.
iii. Prioritizing labour-intensive growth: agriculture and
services
In a skills-constrained economy, the bias towards
skillsintensive employment driven by technological
advancement has the unintended consequence of raising wage
premiums, which further entrenches inequality and
contributes to rising unemployment. Agriculture and services,
especially the tourism sector, are conduits for labour-intensive
growth.
Several features of agriculture make it important in the pursuit
of inclusive, labour-intensive economic growth: rural
linkages, ability to absorb less-skilled labour, large multipliers
due to extensive links with the rest of the economy, globally
competitive labour productivity, and importance for export-
led growth. Despite these advantages, the sector continues to
experience low growth and declining employment.
Innovative joint ventures have shown to boost agricultural
production and promote agrarian transformation and should
therefore be supported. This requires creating an enabling
environment for investment in agriculture including:
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• Improving access to financing for farmers: Farmers have
unique financing requirements, typically demanding high
levels of debt to offset uneven revenue streams.
Concessional agricultural credit (e.g. declining subsidized
interest rate loans) can play an important role in targeting
export-oriented and labour-intensive commodities and
support various developmental objectives.
• Providing adequate and affordable agricultural insurance:
Many agricultural
producers in South Africa are not insured against the negative
impacts resulting from natural disasters, such as drought,
mainly due to the high costs associated with agricultural
insurance. The Land Bank should take an active role in
expanding the range of agricultural insurance products to
support business continuity, ensure food security, spur rural
economic development, and modernize the sector.

• Improving extension services for smallholder and emerging

farmers: Intensive and high-quality extension support in
partnership with industry associations is required for
smallholders and emerging farmers to transition to
highervalue agricultural commodities and can play a major
role in reducing poverty and strengthening rural
development.
• Enhancing trade promotion, market access and access to
water for irrigated agriculture is crucial to unlock
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investment in labour-intensive crops such as apples, table
grapes, citrus, avocados, and macadamia and pecan nuts.
Export growth in these crops
will come from improved market access, which must be
supported by the availability of water.
• Investing in establishing innovative market linkages for
smallholders: Contract farming and strategic government
procurement, for example, can play an effective role in
helping smallholder farmers achieve greater productivity,
scale, access to inputs and markets, and ultimately facilitate
graduation to emerging and commercial status.
The services sector has proven to be resilient in downturns
relative to other sectors, is highly localized and supportive of
industrial production and therefore key to enabling inclusive
growth and economic transformation. The tourism sector, in
particular, is characterized by low barriers to entry as most
tourism businesses are small, providing services such as
accommodation, tour guiding, day tours, and taxi services.
• Greater budgetary support for tourism agencies is required
and measures should be introduced to protect their budgets
from the negative impact of currency fluctuations
given their impact on marketing in foreign destinations.
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• The Department of Tourism should increase the level of
support to tourism firms to navigate the highly regulated
business environment.
• South Africa’s visa regulations should be amended to ensure
a better balance between security concerns and growing the
tourism sector.
• Adopting proposals for the reintroduction and enhancement
of the Tourism Safety
Initiative, with highly visible policing

 FRANCE AND COMMERCIAL SECTOR

Introduction:
France economic freedom stores is 65.9 making it’s economy the 52nd
freest in the year 2022 index.France is ranked 31st among 45 countries
in the europe region and it’s overall score is below the region average
but above the world average.
The france enphasised on the following concerning the commercial
sector in other to develop;
-Technology and innovation;
That is technology plays an important in the economy and it’s
government invest in creating a favourable foundation for innovation
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-Magnifacturing;
That is, despite the decline in the overall output,magnifacturing
remains one of the largest economic sector.French government
continues to support the magnifacturing sector in other to increase it’s
competition
-Tourism;
France is the most visited country in world and it’s popularity can be
attributed to it’s history,cultural influence,culinary exoerience and
renowed attraction
The advantages of france enphasising in this commercial sector
include;
1-Attract foreign investment;
That is,it boost a nations economy ,growth and development,create
ease in international trade,facilitate job creation and it helps to provide
tax incentives
2-Global economic power
That is,increase global corporation,leads to greater economic
growth,increase competition and increase cross boder investment
3-Financialy attractive
That is, attracts investors to invest in other to make profit and also
spreads a good reputation of the to other countries
4-Technology and innovation hub;
That is, increases the countries standard of living and also increases
productivity
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