(Business in Cameroon) - The Port Authority of Kribi (PAK) plans to raise up to CFA1,312 billion (about €2 billion) over the next decade to fuel its development strategy. The plan was made public during the third edition of the Africa Capital Markets Forum (ACMF) held on April 24 in Douala.

The state-owned enterprise, managing the Kribi deep-water port, is primarily targeting the domestic capital market to secure these funds. Yves Roger Melingui, technical advisor to the PAK's management, stated, "The required amounts are significant given the scale of infrastructure to be developed. However, with incentives and better regulatory oversight, we believe the local financial market can meet these financing needs, given the available public savings in the CEMAC zone." He highlighted that this operation will be done in phases, with ongoing discussions with the Central African Stock Exchange (Bvmac) to prepare for it.

Patrice Melom, CEO of PAK, emphasized that tapping into the financial market to develop the deep-water port of Kribi aligns seamlessly with the country's National Development Strategy 2020-2030 (SND30), advocating for "public-private partnerships and private markets for financing strategic projects." He added, "At the port of Kribi, we fully embody this approach. Phase 2 of the port was partly financed by private partners."

Creating value

According to the port authority, the targeted funds will facilitate the provision of a comprehensive real estate range to economic operators, including warehouses, ready-to-use offices, and serviced vacant lands meeting the highest standards. Out of this financing, CFA524.8 billion will be allocated to the development, operation, and maintenance of the integrated industrial zone spanning 1,500 hectares within the port area. This zone is aimed at accommodating logistics and industrial activities.

"We aim to expedite the establishment of industries at the port of Kribi because they truly generate local value. They enable the transformation of raw materials from Cameroon and the sub-region, thereby improving the trade balance. With the development of this industrial zone and the framework provided to investors in terms of infrastructure and services, the added value created at the port of Kribi will significantly surge," explained Yves Roger Melingui.

Since the commencement of port operations in 2018, several companies have set up operations in the port area, including Atlantic Cocoa, Tractafric, and La Pasta SA. The port authority attributes this influx to the development potential offered by the Kribi port area. "It is rare, both in the African and global contexts, to combine a deep-water port of this caliber with land reserves," highlighted Yves Roger Melingui. Additionally, companies establishing within the PAK domain also benefit from incentives provided by the 2013 law on private investment incentives in Cameroon and regulations governing economic zones, offering significant tax and customs exemptions during installation and production phases.