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Cameroon moves for the diagnostic assessment of state-owned operator CAMTEL

Cameroon moves for the diagnostic assessment of state-owned operator CAMTEL
  • Comments   -   Monday, 14 June 2021 13:01

(Business in Cameroon) - In Cameroon, the Technical Commission for the Rehabilitation of Public and Para-public Enterprises (CTR) is moving for the diagnostic study of state-owned operator CAMTEL. In that regard, last June 11, Martial Valery Zang, President of the CTR, signed a call for expression of interest to recruit a consultant that will carry out the study.

This study, whose project cost is XAF400 million will be funded by the state budget. Submission is open to firms or groups with proven experience and reference in audit, feasibility studies, diagnostic studies as well as assessment of companies' viability. Interested parties meeting the Conditions can submit their applications by July 12, 2021.

According to the call, the study will assess the operator’s economic environment, the marketing strategy it is currently implementing, its market as well as its competitiveness. It will also study CAMTEL’s position in the market, its prices, and its competitive position compared to competitors.

Also, based on the financial reports of the last three operational years, the study will assess CAMTEL’s financial position (its debts and receivables) and determine the conditions required to reach budget equilibrium and ensure profitability for the company.

Commitments to the IMF

The CTR explains that the diagnostic study is one of the commitments made by Cameroon to the IMF in the framework of the June 2017- September 2020 economic and financial program. Indeed, in the framework of that program, the Cameroonian government promised to carry out diagnostic studies aimed at ensuring the viability, competitiveness, and efficiency of state-owned companies.

In its report on the 2019 performance of public and para-public companies, the CTR revealed that since the CAMTEL’s 2019 accounts were not already approved, the company’s financial and operational situation was based on the December 31, 2018, accounts. Those accounts show a decline in operating incomes, stagnation of turnover as well as a rise in its supplier, fiscal and social debt. As of December 31, 2018, CAMTEL’s supplier debt was XAF49.07 billion, while its fiscal debt was XAF94.43 billion and XAF17.61 billion for social debts.

“This situation is due to the repeated failure of privatization efforts initiated over the past decade as well as the freezing of structuring investments and a lack of a long-term plan,” the CTR report indicates.

Yet, the operator has enormous potential and several assets that can contribute to its development. For instance, it has a monopoly over the wired network, has exclusive rights over the management of international broadband infrastructure as well as a license to operate a mobile telephony network.

Sylvain Andzongo

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