NO/SO. GICAM Deplores 6434 jobs and 269 billion FCFA turnover lost in two years

In a survey conducted among companies operating in these two areas, the Cameroonian Inter-employer Group (GICAM), also reported a shortfall of CFA F 5.9 billion in tax revenue.

Emmanuel NGOTA

The survey was conducted in July 2018 and focuses on “economic consequences and impacts on business activity”. Since October 2016, the North West and South West regions are facing a socio-security crisis with significant human and economic losses. After two years of insecurity, the Cameroonian inter-employer Group (GICAM) conducted an investigation among the companies operating in these areas. Available since September 13, 2018, the results of this survey reveal a catastrophic balance sheet for these companies. 86% of them say that the crisis has a very significant negative impact (50%), and significant (36%) negative impact on their activities. According to summary estimates, the crisis has already cost FCFA 2.153 billion in terms of the destruction of real estate, rolling stock and furniture.
The shortfall in terms of turnover is estimated at 269,056 billion FCFA in the sectors investigated: agro-food industries, local agro-industries, telecommunications, coffee-cocoa sector, agricultural services and distribution. The shortfall in terms of numbers for these companies, says GICAM, mechanically implies an immediate shortfall of 5.9 billion FCFA of tax revenue for the State, under the advance of the corporate tax (whose rate is set at 2.2% based on turnover).

In terms of employment, the losses are mainly those of agro-industrial enterprises. Overall, nearly 8,000 formal sector jobs are now at risk, in addition to the 6,434 jobs already lost at sites that have been shut down in agro-industries, notably the Cameroon Development Corporation (CDC) and PAMOL.

More than ever, suggests the GICAM, safeguarding measures are needed to curb this risk. The most important, believes the employers, is the imperative to avoid extending the climate of insecurity to other areas and regions of the country; cases of corporate robberies by armed groups already reported in the Bonaberi area in Douala, the economic capital of the country. Financial support of companies by the State and the stabilization of the security context in order to stop the deterioration of the situation and start a process of return to peace in the whole country, remains the long-term solution proposed by GICAM.

Following the escalation of violence causing economic losses to businesses in the North-West and South-West regions, GICAM has decided to conduct an investigation that has highlighted the economic and social consequences of insecurity. The report produced, accompanied by proposals and solicitations expressed by the companies, was brought to the attention of the governmental authorities, in particular the Prime Minister, Head of Government.

This report is available via this link: Impact Report of the NW-SW Crisis.
GICAM thanks the companies that have made available the necessary information for this evaluation and requests its members to continue to send it the latest developments in their respective sectors of activity.

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