Overview and role of the EITI
Cameroon is a leading producer of crude oil and has rich deposits of natural gas, cobalt, bauxite, iron ore, gold and diamonds. Cameroon’s extractive sector plays a significant role in the country’s economy, contributing 31,15% of exports by value and 16,34% of total government revenues in 2021.
Cameroon has used the EITI process to improve the systematic disclosures of mining licenses as well as payments made by its national oil company, Société Nationale des Hydrocarbures (SNH). The EITI in Cameroon (ITIE Cameroun) also helped to strengthen the country’s Mining Code, which was amended in 2016 to mandate that mining companies comply with the disclosure requirements of the EITI Standard. The EITI can further play a role to inform debate on matters of public interest, such as how oil, gas and mining revenues are shared with hosting communities, and how the environmental impact of the extractive activities is managed.
Economic contribution of the extractive industries
- to government revenues
- to exports
- to GDP
- to employment
Cameroon’s upstream oil and gas sector is mainly governed by the 2019 Petroleum Code and regulated by the Ministry of Mines, Industry Technological Development and the state-owned company SNH. Tax payments made by oil companies are collected and managed by financial authorities under the Ministry of Finance. Cameroon has both a concessional system and a contractual system for oil and gas exploration and production activities.
The mining sector is mainly governed by the new Mining Code and regulated by several government authorities including the Ministry of Mines, Industry and Technological Development. Payments from mining companies are collected and managed by financial authorities under the Ministry of Finance.
In February 2017, Cameroon launched its online mining cadastre. Regional delegates are responsible for approving new license applications in artisanal and small-scale mining.
The Société Nationale des Hydrocarbures (SNH) publishes a model oil and gas production sharing contract (PSC). Production sharing contracts are awarded based on competitive tender or direct negotiation.
Mining Conventions and oil contracts are not disclosed. ITIE Cameroun’s multi-stakeholder group (MSG) has established a working group on contract transparency to promote the publication of contracts in line with the EITI’s disclosure requirements.
The 2021 EITI report provides the MSG’s definition of the terms BO and PEP, although, there is not yet an enabling legal environment for the collection and disclosure of BO data on extractive companies. The 2023 Budget and its reforms of the General Tax Code require companies to disclose their BO to the Tax Office.
There is no public BO register in Cameroon. The 2021 EITI Report provides BO data in the oil and gas sector for a limited number of companies. None of the companies applying for extractive licenses have been requested to disclose their BO data to date.
The legal ownership data is recorded in the RCCM at the Commercial Court, but the RCCM is not publicly accessible online and can only be consulted by requesting the Commercial Court clerk.
The review of the fiscal framework and practices governing the extractive sector identified three mechanisms for subnational extractive revenue transfers:
- Ad valorem tax and extraction tax, of which 25% is allocated to local government units in communities affected by extractive activities;
- Transfer of “Additional Communal Centimes”, of which 70% is allocated to communes, district communes and urban communities and 20% to a special inter-municipal intervention fund (FEICOM);
- Transfer of taxation for artisanal mining activity, which has not yet been promulgated.
The fiscal frameworks and actual disbursements are described in Cameroon’s 2021 EITI report.
ITIE Cameroun is administered by the Cameroon Multi-Stakeholder Group (MSG) and operates under the 17 July 2018 decree. The MSG is chaired by the Minister of Finance, Mr Louis Paul Motazé. It is comprised of representatives from government, industry and civil society.
Government announces commitment to join the EITI
Multi-stakeholder group is formed
2005 EITI Report published
2006-20008 EITI Report published
2010 EITI Report published
2011 EITI Report published
Designated Compliant Country
2012 EITI Report published
2013 EITI Report published
2014 EITI Report published
2015 EITI Report published
Cameroon made meaningful progress overall with implementing the 2016 EITI Standard.
2016 EITI Report published
2017 EITI Report published
2018 EITI Report published
2019 EITI Report published
2020 EITI Report published
2021 EITI Report published
Cameroon was found to have made meaningful progress with considerable improvements in implementing the 2019 EITI Standard in January 2021, following its second Validation. Cameroon has fully addressed three of the 14 corrective actions identified in its previous Validation. The next Validation is expected to commence in April 2023.