Critical issues for American investors in Cameroon

investors. This report provides an in-depth survey on investment in Cameroon, discussing the country"s structural adjustment program, the status of the economy and the financial sector, the external trade and payments systems, debt, a recently approved free zone initiative, the regulation of labor and of foreign investment, taxation, intellectual property rights, and investment opportunities. Foreign investment in Cameroon is strongly urged. The country"s extensive natural resource base, good infrastructure, central location on the African continent, active port in Douala, well-educated labor force, and its official policy of bilingualism are among its most important assets. Further, its package of incentives and streamlined investment approval and customs procedures make Cameroon attractive to the foreign investor. U.S. firms considering investment in Cameroon should give special consideration to the possibilities created by the new Free Zone Regime (expected to be competitive with the best export-processing zone regimes in the world), especially for export to the European market. It is noted that export opportunities (agriculture, forestry, textiles, tourism, and mining) are currently far more attractive than domestic opportunities. Appendices cite the Free Zone Regime legislation and the general scheme of preferences, summarize the tax system, list goods subject to quantitative restrictions, and outline A.I.D."s strategy for Cameroon.