Cameroon: GICAM Advocates Economic Recovery Plan

This was during the presentation of a report on the impact of Covid-19 on July 23 in Douala.

In order to cushion the negative effects of the coronavirus on companies, the employers Union, GICAM has called for an urgent economic recovery plan in order to bail out companies. The plea was made by the President of GICAM, Celestin Tawamba during the presentation of a second report on the impact of Covid-19 at the Andre Siaka conference hall in Douala on Thursday, July 23, 2020.

Celestine Tawamba said Cameroon is facing and economic recession and companies therefore need some form of bail out to survive the crisis. The report indicates a worsening of the economic situation since the first report in April notably in terms of employment, business-to-business relations, turn- over as well as the evolution of economic tendencies due to the crisis. For instance 96.6 per cent of enterprises are affected by the negative impact of the corona pandemic as opposed to 92.5 per cent in April. This leads to an anticipation of declining turn-over of 81.7 per cent for the whole year. In absolute terms, he said, the loss of annual turn-over may reach 3.139 billion and consequently lead to a reduction in contribution to State revenue of about 521 billion FCFA. Another impact of the crisis has been the technical laying off of workers in 42.6 per cent of the companies, lay off of permanent staff and rendering 53.0346 jobs redundant and 13.834 workers were laid off in June. The crisis has also impacted on the business-to-business relationships as there are delays in payment of customers and reduction of business to business opportunities. "GICAM is ready to accompany government but should be given the means to do so", he said. He said companies in Cameroon are still reeling from the effects of the security crisis in certain parts of the country and the currency scarcity. "Things are critical", he said. He added that there is need for a heavy government bailout package in terms of fiscal and customs incentives, financial support through subsidies, social measures to cushion the effect on the population.

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