Cameroon - Doing Business 2012 Summary
Core Content Overview
The Doing Business 2012 report provides an analysis of the business environment in Cameroon, focusing on regulatory processes and their impact on entrepreneurship and economic performance. It measures the ease of doing business across 10 key areas of the business life cycle, including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency. The data are based on the standardized company model, which assumes a limited liability company in the largest business city (Douala), with a start-up capital of 10 times the GNI per capita.
Key Indicators and Rankings
Ease of Doing Business Index
- DB2012 Rank: 161
- DB2011 Rank: 165
- Change in Rank: Improved by 4 positions
Business Life Cycle Indicators
| Indicator |
Cameroon DB2012 |
Cameroon DB2011 |
Regional Comparator |
Global Best Performer |
| Starting a Business |
128 |
131 |
Congo, Rep. (175) |
New Zealand (1) |
| Procedures (number) |
5 |
6 |
Equatorial Guinea (21) |
Canada (1)* |
| Time (days) |
15 |
19 |
Gabon (58) |
New Zealand (1) |
| Cost (% of income per capita) |
45.5 |
51.2 |
Nigeria (70.6) |
Denmark (0.0)* |
| Paid-in Min. Capital (% of income per capita) |
182.9 |
191.8 |
São Tomé and Príncipe (336.0) |
82 Economies (0.0)* |
| Indicator |
Cameroon DB2012 |
Cameroon DB2011 |
Regional Comparator |
Global Best Performer |
| Dealing with Construction Permits |
92 |
89 |
Nigeria (84) |
Hong Kong SAR, China (1) |
| Procedures (number) |
11 |
11 |
Congo, Rep. (14) |
Denmark (5) |
| Time (days) |
147 |
147 |
Gabon (201) |
Singapore (26)* |
| Cost (% of income per capita) |
1096.2 |
1149.5 |
Gabon (21.5) |
Qatar (1.1) |
| Indicator |
Cameroon DB2012 |
Cameroon DB2011 |
Regional Comparator |
Global Best Performer |
| Getting Electricity |
66 |
65 |
Gabon (137) |
Iceland (1) |
| Procedures (number) |
4 |
4 |
Congo, Rep. (5) |
Germany (3)* |
| Time (days) |
67 |
67 |
Gabon (160) |
Germany (17) |
| Cost (% of property value) |
19.2 |
19.3 |
São Tomé and Príncipe (8.9) |
Slovakia (0.0)* |
| Indicator |
Cameroon DB2012 |
Cameroon DB2011 |
Regional Comparator |
Global Best Performer |
| Getting Credit |
98 |
139 |
Congo, Rep. (98) |
United Kingdom (1)* |
| Strength of Legal Rights Index |
6 |
3 |
Nigeria (5) |
New Zealand (10)* |
| Depth of Credit Information Index |
2 |
2 |
Nigeria (0) |
Japan (6)* |
| Public Registry Coverage (% of adults) |
3.6 |
2.9 |
Ghana (24.2) |
Portugal (86.2) |
| Private Bureau Coverage (% of adults) |
0.0 |
0.0 |
Ghana (3.3) |
New Zealand (100.0)* |
| Indicator |
Cameroon DB2012 |
Cameroon DB2011 |
Regional Comparator |
Global Best Performer |
| Paying Taxes |
171 |
169 |
Congo, Rep. (182) |
Canada (8) |
| Payments (number per year) |
44 |
44 |
Congo, Rep. (61) |
Norway (4) |
| Time (hours per year) |
654 |
654 |
Congo, Rep. (606) |
Luxembourg (59) |
| Indicator |
Cameroon DB2012 |
Cameroon DB2011 |
Regional Comparator |
Global Best Performer |
| Trading Across Borders |
156 |
155 |
Congo, Rep. (181) |
Singapore (1) |
| Documents to Export (number) |
11 |
11 |
Congo, Rep. (11) |
France (2) |
| Time to Export (days) |
23 |
23 |
Gabon (20) |
Hong Kong SAR, China (5)* |
| Cost to Export (US$ per container) |
1379 |
1379 |
Gabon (1945) |
Malaysia (450) |
| Indicator |
Cameroon DB2012 |
Cameroon DB2011 |
Regional Comparator |
Global Best Performer |
| Enforcing Contracts |
174 |
174 |
Gabon (150) |
Luxembourg (1) |
| Time (days) |
800 |
800 |
Gabon (560) |
Ireland (0.4) |
| Cost (% of claim) |
46.6 |
46.6 |
Gabon (53.2) |
Bhutan (0.1) |
| Procedures (number) |
43 |
43 |
Gabon (44) |
Ireland (21)* |
| Indicator |
Cameroon DB2012 |
Cameroon DB2011 |
Regional Comparator |
Global Best Performer |
| Resolving Insolvency |
147 |
148 |
Congo, Rep. (134) |
Japan (1) |
| Time (years) |
3.2 |
3.2 |
Gabon (3.3) |
Ireland (0.4) |
| Cost (% of estate) |
34 |
34 |
Gabon (25) |
Singapore (1)* |
| Recovery Rate (cents on the dollar) |
13.6 |
13.6 |
Gabon (17.9) |
Japan (92.7) |
Main Points and Analysis
- Starting a Business: Cameroon requires 5 procedures, takes 15 days, costs 45.5% of income per capita, and has a paid-in minimum capital of 182.9% of income per capita. This places it at rank 128 globally, indicating a relatively difficult process compared to the best performers like New Zealand.
- Construction Permits: Cameroon requires 11 procedures, takes 147 days, and costs 1096.2% of income per capita. It ranks 92 globally, which is still far from the best performers like Denmark.
- Getting Electricity: Cameroon ranks 66 globally, requiring 4 procedures, taking 67 days, and costing 1854.5% of income per capita. It is significantly behind the best performer, Iceland.
- Registering Property: Cameroon ranks 154 globally, requiring 5 procedures, taking 93 days, and costing 19.2% of property value. It is far from the best performer, New Zealand.
- Getting Credit: Cameroon ranks 98 globally, with a strength of legal rights index of 6 and a depth of credit information index of 2. It is far from the best performer, Japan.
- Paying Taxes: Cameroon ranks 171 globally, requiring 44 payments per year and taking 654 hours per year. It is significantly behind the best performer, Canada.
- Trading Across Borders: Cameroon ranks 156 globally, requiring 11 documents to export, taking 23 days, and costing $1379 per container. It is far from the best performer, Singapore.
- Enforcing Contracts: Cameroon ranks 174 globally, taking 800 days and costing 46.6% of the claim. It is far from the best performer, Luxembourg.
- Resolving Insolvency: Cameroon ranks 147 globally, taking 3.2 years and costing 34% of the estate. It is far from the best performer, Japan.
Key Reforms in Cameroon
- DB2012: Replaced criminal record verification with a sworn declaration and reduced publication fees.
- DB2011: Established a new one-stop shop and abolished the requirement to verify business premises and its associated fees.
- DB2010: Eliminated the business license tax for the first two years of new businesses.
- DB2009: No reforms recorded.
Distance to Frontier Analysis
The distance to frontier metric indicates how far an economy is from the most efficient regulatory practices. Cameroon has made some progress, but there is still room for improvement, particularly in areas such as resolving insolvency and enforcing contracts.
Conclusion
The report highlights that while Cameroon has made some regulatory improvements, the business environment remains challenging. The data emphasize the importance of streamlining procedures, reducing costs, and improving the legal framework to enhance business competitiveness and attract investment.