A study conducted by the International labor Organization (ILO) in 501 companies shows that the power cuts are causing big problems for companies.

The survey touches all sectors of the economy (primary, secondary and tertiary), and Small, Medium and Large Businesses. It was conducted in 2012 at the request of Cameroon’s cartel of entrepreneurs (GICAM). 501 companies surveyed out of an 800 sample identified and cited 15 constraints.

Unlike previous studies by GICAM on the business climate in Cameroon, likewise the World Bank, the study shows that load shedding and power cuts is the main obstacle to business growth in the country.

Besides power problems, red tape, unfair competition, lack of access to finance, direct and indirect taxation, crime and insecurity are some constraints that pollute the business climate, according to the study. But also, corruption, regulation and tariffs, poor governance of the private sector, the dysfunctional justice system, environmental issues, access to land and social security difficulties.

According to the head of ILO’s Business Department in Geneva, Mario Bemos, who presented the study at a workshop, Friday, May 10, 2013 at the headquarters of GICAM, Douala, several findings emerge from this study. First, he noted that shedding and power cuts had significant costs on businesses and the constraints are the same for small, medium and big companies. However, the problems vary according to company size. “For big and medium sized enterprises, unfair competition occupies the second position. But for small sized enterprises, power outages topped, followed by lack of access to finance”, he said.