Cameroon export sector reforms

Policy reforms will reduce the Government of Cameroon"s (GOC) inappropriate involvement in the regulation and administration of the economy. TA will be provided under complementary project 6310082. The GOC will receive sector grants totalling $3.1 million to import goods from the United States, pay debts (other than military) to the United States, and pay debts to a multilateral bank or the IMF. The GOC will in turn provide an equivalent amount in local currency to establish two private, nonprofit institutions -- a National Office of Industrial Free Zones (NOIFZ) and an Investment Promotion Center (IPC) -- and undertake various export processing reforms. NOIFZ will be responsible for approving investment proposals, providing all licenses and permits for export-oriented businesses, and overseeing management and enforcement of the Free Zone Regime. IPC will be responsible for marketing and investor assistance. Both entities will receive TA and training under project 6310082. Policy reforms will be directed at regulatory and legal constraints regarding investment approval, customs clearance, dispute settlement, labor laws, and the provision of administrative services required by Free Zone investors. All Free Zone enterprises will be entitled to: (1) streamlined investment approval; (2) the right to hold foreign exchange accounts; (3) the right to transfer profits, dividends, and investments abroad; (4) the right to set wages on basis of productivity and efficiency; (5) the right to install private telecommunication and utility systems; (6) preferential (and best available) rates for public utilities and services; (7) onsite customs inspections; and (8) timely and efficient administrative services and dispute settlement.