Business in Cameroon | In Cameroon, personnel expenses represent more than 30% of annual turnover in 90% of state-owned companies. This is revealed by CTR, the technical commission set for the rehabilitation of public and para-public companies in a report it just published.
According to the CTR, which based its report on a sample of companies, these expenses are “above 70%” of the turnover of companies in some cases. This “does not allow for optimal operation” and even blocks the financing of investments, the commission indicates.
This glaring discrepancy between charges and turnover, the CTR points out, “results in the accumulation of debts and the non-renewal of equipment which, for the most part, is obsolete and hampers competitiveness (…)despite significant support provided by the State in the framework of contract plans.”
The contract plans are agreements the state signs with a public enterprise establishment, which is experiencing operating difficulties, in order to revive it and make it more competitive.
Before signing these agreements, the state and the structure concerned identify the operations which, if carried out successfully, should give impetus to the development of the entity concerned. The State then generally finances the most important, costly and urgent operations.