Business in Cameroon: Top 3 Areas You Can Invest in!

Would you like to invest and get back your money’s worth? Well, you are in luck. Here are 3 investment opportunities in Cameroon you can enjoy.

The Republic of Cameroon is in the center of sub-Saharan Africa. It is an attractive investment destination. The country has a business economy. It has significant natural resources, including oil, gas, minerals, and timber. It produces coffee, cotton, cocoa, and maize. Cameron is often called Africa in miniature. It has bits of the entire African continent. We took a closer look and found some exciting business opportunities for investors.

Let’s dive right into the great opportunities

Agribusiness - An Ideal Agricultural Country

Agriculture accounts for 80% of the primary sector’s GDP. It provides a third of foreign exchange earnings. Cameroon’s agricultural business is growing. It’s because of the growing urban market. This boost is helping the agriculture sector expand and succeed. However, farmers lack access to the formal market. As a result, they end up selling off their crops on the informal market at a cheap price. They also suffer from a lack of expertise and capital.

Figure 2: Thriving Agriculture of Cameroon

Investing in this sector could lead to great results and close this gap. It also leads to food security in Cameroon. Agriculture employs half the workforce in Cameroon.

Commercial farming is not up to par in the country. So, they import large quantities of food. It has great potential to meet its food needs and improve rural living conditions. Hence, the government also seeks investment in this sector.

Cocoa Production - Stories of Generations Passed

Cameroon has an apt climate for growing crops like cocoa, coffee, and timber. There is plenty of rainfall in Cameroon to help crops grow. This natural support benefits farmers and their harvests. Cocoa production is crucial to the economy of Cameroon. It is Africa’s 4th biggest grower of quality cocoa.

Cameroon is the fifth-largest cocoa producer in the world. Its cocoa is known for its high quality.

Farmers pass down cocoa plantations from generation to generation. They value them as important cultural resources. Hence farmers preserve their old trees.

Figure 3: Cocoa, A staple of Cameroon

Cameroon produces between 210,000 and 270,000 tons of cocoa beans. Over 500,000 people in the country rely on cocoa production for their livelihoods. It exports approximately 75% of raw beans. Most of the beans are from small farmers in the forest. This presents a great opportunity for investors interested in the cocoa industry.

Cocoa makes up about 50-60% of Cameroon’s export earnings. The country’s increasing cocoa production is a key part of the global supply chain. Cameroon plays an important role in the worldwide chocolate industry. Investors can either farm with the local farmers or partner with them. They can invest in processing raw beans for export.

Oil and Gas Business - Huge Potential for Exploration

Cameroon has an oil business like no other country. Oil production in Cameroon raises exports. It is a leading producer of crude oil. Crude oil is a raw natural resource used to make petroleum products. It has rich deposits of natural gas cobalt, bauxite, iron ore, gold, and diamonds.

Cameroon is the 6th largest oil producer in Africa. The country has five sedimentary basins. This opens up opportunities for drilling businesses. The country produces 100,000 barrels of oil a day. The government has encouraged to explore and produce oil and gas. There is also a recent hike in oil prices on the international market.

Figure 4: Extracting Liquid Gold, aka, Oil

Cameroon focuses on both upstream and downstream. It focuses on both oil and gas. For many years, Cameroon was not able to understand its gas potential. Chad Basin and the Bakassi Peninsula still hold untapped oil reserves. In 2021, Cameroon extracted about 76.7 million standard cubic feet of marketable gas. The country has estimated natural gas reserves of 4.8 billion cubic feet. Most of it remains undeveloped. In September 2022, the government announced plans to renew the national oil refinery.

From 2020 to 2030, Cameroon plans to explore its oil fields. The fields are located in the North and Bakassi. The National Hydrocarbons Corporation (SNH) will work on it. They will partner with international firms to do this. Both parties will work to improve current fields. This will provide investment opportunities.

Cameroon gains a lot from its oil and gas reserves.

There are talks about building a second refinery. This is because of the high demand for refined petroleum. A second refinery would be a major step for the country. It will provide a great business opportunity. For investors looking to enter the market, it will be a great deal.

Why Should You Invest in Cameroon?

Figure 5: Mount Cameroon

According to UNCTAD, Foreign Direct Investment (FDI) inflows to Cameroon are low. The UNCTAD compares it to the potential of its economy. In 2021, it reached USD 889 million. This is according to the UN’s World Investment Report 2023.

Cameroon’s economy has the potential to become one of the strongest countries. It is among the top countries in Africa to receive FDI. The country’s state-owned companies are eager to take part. They are looking for capital upgrades and foreign investment.

In Cameroon, FDI comes from the European Union. It particularly targets the mining industry, including oil extraction. They focus on France and Germany. China is also a main investor.

Cameroon has arable land and plenty of natural resources. You can invest in this country with huge untapped potential and gain a lot. It has a growing market full of potential. More than 500 million consumers are in the market. Its extractive industry also has great potential to prosper.

Short Summary

Cameroon is a key location in central Africa. It has plenty of natural resources and a favorable climate. It offers investment prospects in sectors like Agriculture, Cocoa, and Oil. It has a growing economy and a promising workforce. The economy is growing, and there is a promising workforce. Investing in Cameroon can lead to high profits. It helps create jobs, improve living standards, and boost the economy.

Now is the right time to explore and seize the opportunities in Cameroon.