CAMEROON LAW AND PRACTICE Contributed by: Serges Martin Zangue, Brandon Ntahdui, Joel Noussie, Julienne Happi, Mathias Choudjem, Maeva Pokem, Winy Felifack and Synthia Pamela Dounking Amfouo, Zangue & Partners
• ensuring that the FDI will have a positive impact on employment, economic growth, technological development and local industries while protecting labour and consumer protection rights; and • ensuring that the FDI will not lead to anti-competi - tive practices that could harm local businesses. 7.3 Remedies and Commitments Although Cameroon does not have a specific foreign investment/national security review regime, when reviewing FDI, Cameroon’s regulatory authorities may impose commitments on foreign investors to address concerns relating to economic stability, sector-specif - ic regulations and national security. These measures vary based on the sector, the investment structure and the risks involved. Economic Commitments To promote economic development and protect local businesses, authorities may require the following. • In strategic sectors, such as oil and gas and min - ing, the state usually sets as a condition its partici - pation in the share capital of the company that will be in charge of running projects. Also, the duration of the agreements for the carrying out of certain projects may be limited by the state. • In some sectors, such as telecommunications, investors may be required to commit to a certain percentage of reinvestment into the local economy. The government equally regulates service fees and tariffs to ensure fair competition. • Foreign investors may face restrictions on divest - ment, such as approval for share transfers. Gov - ernment approval may be required before a foreign investor transfers its shares to a different entity/ physical person; for instance, in the oil and gas and telecommunications industries, any change in ownership must have been previously approved by the relevant regulator. Local Participation and Employment Commitments Generally, and especially in strategic sectors, foreign investors are required to include in their agreements with the state “local content”, activities focused on the development of local capabilities, the use of local human and material resources, technology transfer, the use of local industrial and service provider com -
panies, and the creation of measurable added value for the local economy. Foreign companies must prioritise the hiring of Cam - eroonian workers over foreigners and provide skills training programmes to enable the transfer of com - The government may expropriate foreign-owned assets if they are deemed to be against the national interest or security. 7.4 National Security Review Enforcement Ability of the Relevant Authority to Block or Challenge FDI In Cameroon, the relevant authorities have the power to block or challenge FDI, both before and after the investment is made, particularly when the investment fails to comply with applicable laws and regulations including those relating to economic stability, national security and the public interest. General Overview of the Requirements and Process petence to nationals. State Prerogatives All investments must comply with the legal and regu - latory framework in place. The competent authori - ties have monitoring powers and may examine any investment transaction either upon control/inspection or in response to a complaint or denunciation by an interested party, as the case may be, to ensure com - pliance. If a breach of regulations is identified during investi - gations, the party concerned is generally invited to provide explanations in accordance with the legal pro - cedure provided for by the relevant legal instrument, respecting the party’s rights of defence. The authorities responsible for reviewing and chal - lenging an FDI transaction vary by sector. Authori - ties with general jurisdiction include bodies such as the National Competition Commission, the CEMAC Competition Council and the BEAC. Sector-specific authorities include COBAC for the banking sector and other regulatory bodies as applicable. At the national level, various governmental authorities also have juris - diction over investment-related matters.
93 CHAMBERS.COM
Powered by FlippingBook