How important is enterprises upgrading to a country like Cameroon?

Let me first of all recall that the concept of upgrading was developed by the United Nations Industrial Development Organization (UNIDO), with a view to meeting the need to improve the competitiveness of businesses industry in the face of the challenges posed by globalization. Upgrading is a continuous process that aims to prepare and adapt the company to its environment at the level of the requirements of free trade and to introduce a process of progress through the reinforcement of the strengths and the absorption of the weaknesses of the company.

In Cameroon, the need to upgrade businesses has emerged in a context marked by the signing of an Economic Partnership Agreement (EPA) with the European Union. This agreement implies an opening of the respective markets of the two parties, which will necessarily lead to stiff competition between the companies. So this is both a threat and an opportunity for our economy. To take advantage of this free trade agreement, the government has considered upgrading Cameroonian companies so that they can produce to standards, develop and be competitive. The European Union market with around 350 million potential consumers is a formidable niche that our companies can exploit provided they have a modern and efficient production system. Upgrading is therefore vital for the Cameroonian economy since in addition to the EPAs, we must take into account the more or less imminent advent of the continental free trade area which will increase the threats to our companies, but also a pool of opportunities.

Cameroon, which aims to be emerging by 2035, must follow the experiences of certain countries which have used the upgrading to develop their industrial fabric and strengthen their economy. By way of illustration, qualitative follow-up surveys carried out by the Tunisian Upgrading Office have notably demonstrated the effectiveness of this policy. These surveys have proven that upgrading is the basis of the Tunisian economy outbreak, the establishment of new industrial firms in this country and the creation of various partnerships with multinationals.

What is the concrete role of the Upgrading Office?

The Enterprises Upgrading Office (BMN) was created by an order of the Prime Minister, Head of Government, on December 16, 2011 as part of the implementation of the national strategy for the competitiveness of the Cameroonian economy. The BMN is placed under the technical supervision of the Ministry of the Economy, Planning and Regional Development (MINEPAT), and financial supervision of the Ministry of Finance (MINFI). This is the place to emphatically reiterate that the Upgrading Office is responsible for the implementation of government policy in terms of supporting the upgrading and restructuring of industrial enterprises.

What are the results at this stage of the National Upgrading Program led by the BMN?

I would first like to remind you that upgrading is a voluntary step by the companies that are its target. Without being exhaustive, for this phase of perpetuating the upgrading, the BMN has, among other things, already recorded:

  • 611 enterprises memberships in the National Upgrading Program;
  • 263 pre-diagnoses were carried out;
  • 117 companies were selected by the steering committee (Copil / BMN);
  • 82 upgrading plans have been validated;
  • the premiums on planned material investments amount to CFA F 1,691 million; ;
  • the premiums on planned intangible investments (excluding diagnostics) amount to CFA F 2,841 million.
  • We have supported 09 companies certified to international standards ISO 9001 and OHSAS 18001.

The Industrialization of Agricultural Products Development Program (PIVPA), also led by the BMN, ends this year. Are there reasons to be optimistic about the future of this sector in Cameroon?

I should point out that the PIVPA is not ending this year. This is a program that is supposed to be rolled out over three years. This is the first triennium that ends in December 2019. But we are very optimistic, and believe that the PIVPA will continue. The PIVPA is a fruit of the fruitful cooperation between France and Cameroon. It was created to boost the competitiveness of Cameroon's private agrifood sector, through a substantial increase in its productivity, so that this sector derives the maximum benefit from the globalization of trade. This program could therefore benefit from the second triennium 2020-2022 of the 3rd C2D (Debt Reduction and Development Contract) with regard to the contribution of the secondary sector, and particularly the weight in manufacturing added value in the Cameroonian economy. In view of the results we are recording, and the economic potential of this sector, there is obviously every reason to be very optimistic about its future. We are also confident that the government, and our French partner who are aware of the importance of upgrading for the Cameroonian economy, will extend the spectrum of sectors affected by the National Upgrading Program.