Cameroon Economy Overview

Currency

Central African CFA Franc (XAF)

Working hours

40 hours/week

Public/bank holidays

6 public holidays

Capital

Yaoundé

Languages

English & French

Population

~29.3 million

Minimum hourly salary

174.38 XAF

Tax year

1st Jan – 31st Dec

Date format

DD/MM/YYYY

Misclassification penalties

In Cameroon, misclassifying employees as contractors can lead to penalties, including back taxes, fines, and legal action. Proper classification is crucial to avoid these risks.

Fun fact

Often called a miniature version of Africa due to its varied landscapes, Cameroon grows everything from cocoa and coffee in the south to cotton in the north.

Cameroon’s strategic location in Central Africa and its diverse and growing economy have drawn international investors to its shores. It is bordered by Nigeria, Chad, the Central African Republic , Equatorial Guinea, Gabon, and the Republic of Congo. Despite political challenges and ongoing efforts to improve local infrastructure, the African country offers affordable labor and a bilingual workforce fluent in English and French. Cameroon is classified as a lower-middle-income country, but its economy is fairly resilient, with a GDP of $47.95 billion in 2023. Currently, Cameroon is a member of the Central African Economic and Monetary Community (CEMAC), which aims to promote trade and solidarity among neighboring and underprivileged regions. 

Doing business in the African region is governed by the Cameroon Labor Code and OHADA business law in Africa, which focuses on regulating inflation through economic and legal integration. In terms of education, the country’s curricula are based on English and French systems, with literacy rates of 78% in 2020. 

If you are looking to do business in Africa, Cameroon offers a motivated workforce, affordable labor, and an expanding services sector with oil as its main export. Discover more reasons to recruit in Cameroon by looking closely at its economy and business laws.

Overview of Cameroon's Economy

Cameroon’s economy is ranked 147th in the world based on Prosperity Index rankings. The Prosperity Index measures the country’s economic quality, social capital, and investment environment. The African country’s GDP per capita reached $1737 in 2023; however, economic growth had slowed from 3.6% in 2022 to 3.3% a year later. Fortunately, Cameroon’s diverse economy has contributed to its resilience. Its GDP is attributed to growth in infrastructure and key sectors such as agriculture, oil, and manufacturing. Oil accounts for 40% of its GDP in addition to the export of coffee, mineral ores, timber, and cotton. 

IndustryImportance to Economy
AgricultureAgriculture employs over 50% of the workforce and contributes significantly to GDP. Key exports include cocoa, coffee, cotton, and bananas.
Oil and GasThe oil and gas sector is a major source of government revenue and foreign exchange, making up a significant portion of exports.
ManufacturingCameroon’s growing industrial sector focuses on food processing, textiles, and cement production, contributing to job creation and economic diversification.
ForestryThe forestry industry leverages Cameroon’s extensive tropical forests, with timber as a key export product. Sustainable practices are becoming increasingly important.
Energy and InfrastructureThe country is investing heavily in hydropower, roads, and ports, aiming to support industrialization and regional trade.

Businesses looking to expand in the African country are protected by the Investment Code, Law No. 2013/004, which promotes economic growth, encourages foreign investment and offers free repatriation of property and capital. 

The Cameroonian economy is expected to rise in 2025 as inflation decreased by 1.4% between 2023 and 2024, and the export and service sectors continue to improve.

Taxes

Employer Tax: ~11% – 12%

Family Allowances

~2.8%

Old-Age, Invalidity, and Survivors’ Pensions

~2.8%

Work Injury Insurance

1.75% – 5% (varies by industrial risk)

Employee Tax: 6.5%

Old-Age, Invalidity, and Survivors’ Pensions

2.8% of gross salary

Retirement Pension

2.8% of salary

Health Insurance

2-3% of salary

Income Tax

Cameroon applies a progressive personal income tax ranging from 11% to 35% on employment income, plus a 10% additional council tax.

Gross Income

0 to 2,000,000

2,000,001 – 3,000,000

3,000,001 – 5,000,000

More than 5,000,000

Tax Rate

11%

16.5%

27.5%

38.5%

Business Regulation in Cameroon

To do business in Cameroon as a foreign company or investor, it is important to remain aware of Cameroon’s legal framework, taxation, and investment laws, which are discussed as follows:

Legal Framework

Cameroon’s business legal framework combines French civil law and English common law. It requires the establishment of a local entity before doing business in the African country. The Cameroonian Investment Code makes provision for special tax rates and customs practices for companies in development sectors.

Tax Policies

Cameroon issues a tax system for corporations, including the Taxe sur le Chiffre d’Affaires, which issues turnover tax. Sole proprietorships earning below XAF 10 million are subject to a flat tax rate, whereas corporate bodies earning less than XAF 50 million follow a simplified tax system. Corporations with annual earnings above XAF 50 million follow an actual earnings tax system. 

All businesses are subject to a minimum tax of 2.2% or 5.5%, depending on their turnover and applicable tax system. Foreign businesses are subject to specific tax concessions, such as exemption from customs duty, depending on the services sector.

Investment Laws

The Cameroon Investment Code guides foreign businesses interested in investing in the country. The goal is to promote economic and social development while supporting entrepreneurs and private investors in building local wealth. The code further protects against discrimination between local and foreign investors and does not require a minimum investment compared to African countries such as Angola and Rwanda before benefits are initiated.

What Are the Benefits of Doing Business in Cameroon?

To encourage foreign investment and provide businesses with the stepping stones needed to expand in the country, Cameroon enacted the 2013 Investment Code and tax incentives. Corporations in food, manufacturing, and renewable energy benefit from tax preferences and exemptions on customs duties. 

In addition to new regulations to protect and encourage foreign investment, the centralized African country possesses an abundance of natural resources with a growing infrastructure. Efforts have been aimed at institutional reforms to drive private investment. While Cameroon is an oil exporter, it has the potential to become one of the largest exporters of hydropower. 

The central location of Cameroon exposes businesses to a larger market, including the Central African Economic and Monetary Community (CEMAC) region. This significantly improves trade and provides economic opportunities for investors. 

Businesses can also benefit from affordable labor in Cameroon with a monthly minimum wage of XAF 43,969 (approximately $72 USD) for workers under the Labour Code. For private sector workers, the minimum wage is XAF 60,000 ($98 USD) for non-agricultural roles and XAF 45,000 ($73 USD) for agricultural workers, reflecting the latest 2026 wage structure.

What Are the Downsides of Doing Business in Cameroon?

Cameroon has taken steps in the right direction to improve its infrastructure and encourage foreign investment through new regulations and policies; however, the country still faces numerous challenges. Issues with bureaucracy, corruption, and gaps in its infrastructure have led to uncertainty and a lack of stability for businesses. Because different tax and legal systems apply to different types of corporations based on annual earnings and services, legal practices and regulations are complex and confusing to understand. 

While Cameroon continues to address professional, social, and educational limitations, it is also making strides in private investment, reforms, and laws to encourage foreign business expansion.

International Expansion into Cameroon

To do business in Africa, you have the option of setting up a legal entity, hiring recruitment agencies, or relying on a Professional Employer Organization or Employer of Record.

The following explores how you can establish a professional and legal presence in Cameroon:

Cameroon Employer of Record (EOR)

A Cameroonian EOR is a legal employer who hires employees, onboards them, and oversees employment contracts. The third-party service provider focuses on the Cameroon labor law when managing payroll, taxes, benefits administration, and offboarding. An EOR in Cameroon delivers rapid and compliant hiring solutions when expanding your business in the central African country.

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Recruitment Agency

Because of Cameroon’s challenging labor laws, it might be hard to source local talent on your own. Hiring a recruitment agency in Cameroon provides local expertise to hire qualified talent. Recruiters can save time and the costs of trying to find and place workers as per the labor law.

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Cameroon Professional Employer Organization (PEO)

A PEO in Cameroon helps you hire staff, perform HR functions, and manage payroll. They maintain compliance with labor laws and serve as co-employers to facilitate an efficient workforce. A PEO will appoint a manager to guide you through hiring and payroll management while keeping you compliant.

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Subsidiary Incorporation

To set up a subsidiary in Cameroon, you must obtain a Business Registration Number from the Republic of Cameroon’s Trade and Personal Property Credit Register (RCCM). Consider which region you wish to establish the subsidiary in as particular subsidiary laws cover different areas.

The most popular type of subsidiary or company structure is an LLC. To register an LLC, you must have a business license from the tax department and register with the National Social Insurance Fund. A bank account must be opened, and the minimum share capital of CFA 100,000 must be deposited.

Branch Registration

Opening a branch in Cameroon offers simplified market entry and is more affordable than registering a subsidiary. To register a Cameroonian branch, you need a Certificate of Incorporation, police clearance of the company’s managers, and a certified copy of the international company’s constitution. Furthermore, you’ll require a Memorandum of Appointment and a physical address for the business location.

Staffing Agency

If you require temporary staffing solutions for project-based needs, then a staffing agency in Cameroon can help. Staffing agencies check the CVs and backgrounds of candidates and will connect you to job seekers with the relevant expertise.

Business Opportunities in Cameroon

Cameroon has shown that despite political upheaval and bureaucratic difficulties, the country continues to invest in its infrastructure and support local and foreign investors. Cameroon’s rich resources and growing economy provide ample opportunities for international companies. Doing business in the African region provides the benefits of affordable labor rates and tax incentives in specific sectors such as renewable energy, food, and chemical manufacturing. 

Business Opportunity Reason for Opportunity
Agribusiness and Value-Added Processing Cameroon’s agricultural sector has significant potential for modernization, including mechanized farming, irrigation, and processing of cocoa, coffee, and other crops for export.
Renewable Energy Development Investments in solar, hydropower, and biomass energy are highly attractive as Cameroon seeks to address energy shortages and expand rural electrification.
Oil and Gas Services With a well-established oil and gas sector, there is demand for exploration, refining technologies, and equipment servicing.
Infrastructure and Construction Ongoing projects in roads, ports, and housing create opportunities for construction companies, suppliers, and contractors.
Manufacturing and Industrialization Cameroon is focusing on expanding its manufacturing base, with opportunities in food processing, textiles, and building materials.
Forestry and Timber Processing The forestry sector offers opportunities for sustainable timber harvesting and the production of finished wood products for export.
ICT and Digital Transformation The government’s push for digitalization creates opportunities in telecommunications, fintech, and e-governance solutions.

Cameroon’s diverse resources and strategic location within Central Africa make it a promising destination for investment. Businesses that align with its economic goals, particularly in renewable energy, agribusiness, and infrastructure, stand to benefit significantly. By addressing challenges such as infrastructure gaps and governance, investors can tap into the country’s untapped potential and contribute to its growth.

To simplify market entry and workforce management, you can rely on Remote People. The international recruitment agency can help you expand your business in Africa by sourcing the very best talent, guiding you on compliance issues, and providing outstanding remote and outsourcing solutions.

Contact us today to assess your business needs and learn how we can assist you in achieving your objectives.