US ambassador rubbishes Cameroon legal system

By Sixtus Mbom in Yaounde

The United States ambassador to Cameroon, Robert P. Jackson has rubbished Cameroon’s legal system, saying that it hinders the growth of businesses in the country and discourages foreign investors.

He was speaking to business students at a seminar on entrepreneurship, which was organized at the ISTAG business school in Yaounde on October 2, 2012.

He told participants that the legal system in Cameroon needs to be reformed. “No business climate can flourish without a reliable independent judiciary”. He said. “There are several American companies which are presently facing law suits in Cameroon courts, as we speak. My major concern is that the legal system of Cameroon functions at a very slow pace.” he added

 The ambassador also revealed that there is a certain U.S company that has been struggling to get license to operate in Cameroon since 2011and the government is yet to issue it.

Presenting a converse of what happens in Cameroon, he pointed out that US tax code and laws protect and promote business investments while the courts protect new ideas and enforce contracts in a fair and transparent manner.

Apart from the legal system being an impediment to the growth of businesses in the country, the US diplomat indentified several challenges which businesses face in the country, such as the length of time it takes entrepreneurs to carry out certain activities such as starting a business, obtaining a construction permit and registering properties as well as difficulties in getting credits from banks.

Robert P. Jackson also condemned the fact that companies in Cameroon make 44 tax payments annually and spend 654 working hours, filing, preparing and paying taxes.

He however, hailed the government for creating the ministry of small and medium size enterprises to promote entrepreneurship and launching several road and electricity projects that will facilitate the growth of companies in the country. Jackson equally lauded the efforts of the government to fight corruption through the on-going arrests and prosecution of corrupt government officials and the creation of the national anti-corruption commission, commonly known by its French acronym, CONAC.

He urged the government to increase access to credit, offer incentives to banks to lend money to small businesses, create business incubators where young entrepreneurs can meet and share ideas and make sure that all contractors are paid in a timely manner.

Jackson advised the business students to try to create their private enterprises upon graduation in order to be employers and not employees. He cited the case of Patu Jume Shang who started the Tadu Dairy Products in Jakiri in the North West region, from almost nothing and today over 300 families earn a living through farming, livestock and milk production thanks to Patu’s initiative.

He also pointed out that US Embassy in Yaounde supports entrepreneurship in Cameroon, through two civil society organizations- Young Employment Service Cameroon and Youth Business Cameroon.