CAMEROON: An Introduction to General Business Law

Economic and Political Landscape

Cameroon holds a unique position in the Central African sub-region, offering a diverse and vibrant economic landscape that makes it an attractive destination for businesses. Its economy is powered by agriculture, energy, manufacturing and services, all supported by its rich natural resources, including oil, gas and minerals. In recent years, the government has stepped up efforts to diversify the economy, with a strong focus on renewable energy, agribusiness and digital transformation.

However, global challenges like supply chain disruptions, fluctuating commodity prices and inflation have posed obstacles to economic growth. Domestically, political and security concerns ‒ particularly in the Northwest and the Southwest Regions ‒ have also affected investor confidence. In the North, the Boko Haram insurgency, and in the East, incursions by rebels from neighbouring countries, have further heightened risks for businesses. To address fiscal constraints, the government introduced the 2025 Finance Law, featuring a 16.1% increase in public investment. This boost, targeted at infrastructure, transportation and energy, underscores the government’s dedication to economic stability and growth.

Cameroon’s youthful population and expanding middle class also contribute to the country’s economic potential. Efforts to improve infrastructure, such as the construction of the Kribi Deep Sea Port and projects to improve and extend the road networks, have laid a solid foundation for future growth. Furthermore, the government’s commitment to fostering innovation, particularly in digital technology, is setting the stage for a thriving entrepreneurial ecosystem.

Legal Developments and Trends

Cameroon’s legal framework is shaped by its dual heritage of civil and common law systems, providing a unique but sometimes complex landscape for businesses. Companies operating in the country adhere to OHADA regulations, which streamline commercial and corporate law across 17 African nations. While these uniform laws bring predictability, their local implementation often comes with challenges especially in a country which is juggling with a bi-jural legal system.

Recent developments include new tax regulations designed to broaden the tax base and attract foreign investment. The 2025 Finance Law introduced stricter income declaration rules, expanded tax obligations for key industries and implemented harsher penalties for tax evasion. These measures aim to increase fiscal transparency and broaden the tax base, enabling the government to generate the revenue needed for its ambitious development projects. The Economic and Monetary Community of Central Africa (CEMAC) region’s increasing focus on e-money and mobile money regulations also signals the growing importance of digital financial services in the economy. These shifts highlight the need for businesses to stay up-to-date with legal and regulatory changes.

Trends in Business Law

Digital transformation

The growth of fintech and digital platforms has encouraged the government to adapt its regulatory framework. Businesses need to navigate emerging laws on data protection, cybersecurity and digital payments. The 2025 Finance Law’s requirement for reporting digital and informal economy revenues highlights this trend. As more Cameroonians adopt digital payment systems, businesses must ensure compliance with evolving regulations to avoid legal pitfalls.

ESG compliance

Sustainability is becoming a cornerstone for businesses in Cameroon, driven by both local and international expectations. Legal experts are key in helping businesses align their practices with ESG standards. Initiatives promoting renewable energy and sustainable agriculture are gaining traction, and businesses that prioritise ESG compliance are likely to attract more investment.

Cross-border transactions

As the indisputable hub within CEMAC, Cameroon is key to regional trade and investment with the ports of Douala and Kribi playing the role of entry and exit points for two land-locked countries of the sun-region (Chad and the Central African Republic). However, challenges like currency controls, approach to taxation, the justice system and complex dispute resolution processes remain. Businesses engaging in cross-border transactions must carefully navigate these hurdles to succeed in the regional market.

Litigation and arbitration

Businesses continue to face delays in Cameroon’s judicial system, making arbitration an increasingly attractive option for resolving disputes efficiently. Arbitration centres in Cameroon are gaining recognition as viable alternatives to lengthy court proceedings, offering quicker resolutions and more specialised expertise.

Challenges and Opportunities for Businesses

Operating in Cameroon presents a mix of challenges and opportunities. While the country has immeasurable potential, bureaucratic hurdles, infrastructure gaps and corruption are real challenges. Despite the Penal Code’s stringent anti-corruption measures, enforcement remains inconsistent. Security threats in the North and East add another layer of risk, making contingency planning essential for businesses.

On the positive side, the government’s increased subsidies for private sector development and youth employment initiatives show a strong commitment to diversifying the economy. Tax incentives under the 2025 Finance Law encourage investments in renewable energy and infrastructure projects. These incentives provide a pathway for businesses to contribute to the country’s economic development while benefiting from reduced tax burdens. There is, however, a popular cry for an equitable tax system that reduces the gap between the poor and the rich.

Cameroon’s youthful population, growing middle class and expanding digital economy create fertile ground for innovation and growth. Projects like the Kribi Deep Sea Port and improved road networks in certain areas of the country further boost its appeal as a business destination. The government’s focus on digital connectivity and energy infrastructure is also expected to enhance the ease of doing business, fostering an environment conducive to both local and foreign investments. It is, however, believed that government’s overbearing intervention in certain sectors of the economy like telecommunications is stifling growth and innovation among tech companies.

Businesses that capitalise on the country’s trade links and infrastructure upgrades are likely to reap significant rewards. With ongoing efforts to improve the legal and regulatory environment, the business landscape is steadily becoming more predictable and investor-friendly. Again, the Cameroonian government would have to match actions with words in the domain of good governance, equitable justice and respect for investors and the rule of law.

Advisory Insights

For businesses looking to succeed in Cameroon, preparation is key. Below are a number of recommended strategies.

• Partner with experienced legal advisors to navigate the country’s complex regulatory environment. Understanding the nuances of OHADA regulations and local laws can help businesses avoid costly errors.
• Implement strong compliance programs to address issues like anti-corruption, tax regulations and labour laws. Robust compliance systems not only mitigate risks but also enhance a company’s reputation in the market.
• Use alternative dispute resolution methods to avoid prolonged litigation. Arbitration and mediation offer quicker, less adversarial solutions to legal disputes, saving time and resources.
• Build relationships with local communities to ensure project sustainability and support. Engaging with stakeholders early and often can help businesses overcome cultural and operational challenges.
• Leverage the incentives provided under the 2025 Finance Law to optimise investments in key sectors. By aligning business strategies with government priorities, companies can maximise their impact and profitability.

Conclusion

Cameroon’s business landscape is full of potential, despite the challenges. With proactive planning and a clear understanding of the legal and economic environment, businesses can tap into the country’s opportunities. The combination of a youthful population, strategic location and expanding infrastructure creates a fertile environment for growth and innovation.

Legal practitioners play a vital role in supporting clients through these complexities, ensuring they remain resilient and competitive in this dynamic market. By staying informed and adaptive, businesses can thrive in Cameroon, contributing to the nation’s development while achieving their own success.