Under Cameroonian legislation, a public-private partnership (PPP) contract can be defined as an
agreement whereby the State or one of its branches (such as decentralized local authorities, public
establishments, or any other public entity) entrusts a private entity with a comprehensive mission for a
specified period, determined, where applicable, by the duration of investment amortization or the
chosen financing modalities. This mission generally includes the design, financing, and construction
of works or facilities necessary for public service or a mission of general interest. The private partner
shall be remunerated either by the state, the public infrastructures or services users, or by the both,
according to the type of the contract. Public-private partnership (PPP) contracts are governed by a set
of laws, the most significant of which are law No. 2008/008 of July 25, 2023, which establishes the
general regime for public-private partnership contracts and repeals law No. 2006/012 of December 29,
2006 and law No. 2008/009 of July 16, 2008, which sets out the fiscal, financial, and accounting
regime applicable to partnership contracts. Through this last law, the Cameroonian legislature has
established an incentive framework for PPPs, resulting in a myriad of tax advantages for private
partners. These advantages mainly consist of exemptions, credits, or tax reductions granted to facilitate
investment project implementation. These benefits vary depending on whether the project is in the
design and implementation phase or in the operational phase.
During the design and implementation phase, the private partner benefits from tax and customs
advantages outlined in Sections 4 to 9 of Law No. 2008/009 related to the fiscal, financial, and
accounting regime applicable to partnership contracts. The tax advantages include the public
contracting authority covering the VAT for imports and local purchases of equipment, as well as free
registration of agreements and acts made by the private partner. Regarding customs benefits, any
private partner who makes a request shall benefit from an exemption from pre-shipment inspection of
equipment and materials intended for the investment project. Additionally, these benefits include non-
intrusive control by customs authorities over imported materials and equipment, as well as temporary
admission status, with the public contracting authority covering the relevant duties and taxes for
equipment while on Cameroonian territory. They also allow for direct withdrawal procedures during
the customs clearance of imported materials and equipment intended for the investment project,
provided a request is made. Finally, these advantages extend to the consumption of imported materials
and equipment for the investment project, with the public contracting authority covering customs
duties and taxes, including VAT, Common External Tariff, Community Integration Contribution,
OHADA Tax, and Community Integration Tax. During the operational phase, the private partner
enjoys three primary tax advantages granted through Section 10 and 11 of the aforementioned law.
Firstly, there is a five-point reduction in the corporate tax rate for the first five years of operation.
Secondly, the partner benefits from free registration of agreements and acts executed during these first
five years. Lastly, they are allowed to carry forward any fiscal deficits for the next five consecutive
fiscal years following the year in which the deficit occurred.
Overall, it is evident that the legal and fiscal framework for public-private partnership contracts in
Cameroon provides a range of attractive tax benefits for private partners aimed at stimulating public
investment. These advantages primarily include the coverage of certain taxes and duties by the State as
well as tax reductions, exemptions, and the ability to carry forward deficits. This streamlined tax
regime is likely to enable private partners to realise significant Tax gain and to increase their profits.
Author: Martin J. Hendje, Tax & Legal Consultant, Supervisor: Albert Désiré Zang, Managing Partner