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December 8, 2025Economic Freedom through Technology: A Review of Cameroon’s Policy
Introduction
The boom of Artificial Intelligence (AI) has reignited debates about Cameroon’s preparedness to seize the fourth industrial revolution. The technology sector, encompassing telecommunications, fintech, robotics, generative agri-tech, and other subsectors, is vital to ensuring Cameroon leapfrogs and becomes an important player in the tech sector regionally and globally. Cameroon’s tech sector is growing, led by a vibrant fintech, agri-tech, and youthful population that is adopting digital technologies quickly. Although StartupBlink identifies 47 start-ups in Cameroon (14 fintech and 15 software and data start-up companies), secondary research from CEPI reveals that over 117 software and tech companies currently exist in Cameroon, with over 17 tech hubs.
In line with the National Development Strategy (SND30), the Acceleration of the Digital Transformation of Cameroon Project (PATNuC) was approved in 2021. This project supports reforms and policies in the Information and Communication Technologies (ICTs) sector, to achieve several outcomes such as improving citizens’ digital skills, developing applications, and stimulating employment through digital services.
This policy brief analyses the policies, sector-specific policies, and reforms in the finance laws over the last decade that have been implemented to boost the tech sector. It follows a review of key indicators to assess Cameroon’s tech readiness and development by looking at its infrastructure, contributions to the tech and ICT sector to economic growth and prosperity. It concludes with actionable policy recommendations to support private-sector development and tech sector competitiveness.
Section 1: Laws and Policies that Target the Tech Sector in Cameroon
Policymakers use the finance law and other incentives to support the tech sector in Cameroon. However, such policies have focused on formal tech companies with little incentive to encourage informal tech companies to formalize their activities.
- Tax and Fiscal Incentives
The budget is an important tool used by policymakers to steer the tech sector. The General Tax Code introduced fiscal incentives for start-ups. In the incubation phase, they are exempt from all duties, taxes, and fees except social security contributions for up to five years. In the incubation phase are exempt from business license, registration fees, a reduced corporate income tax of 15% and a 30% R&D tax credit, as well as a reduced 10% capital gains tax (Figure 1).
Figure 1: Exemptions for Tech Start-ups during incubation and Operational Phase (10 years total)
Source: General Tax Code
NB: The tax incentives available to eligible start-ups under the provisions of the General Tax Code are in two (02) phases, and businesses can benefit from this support for a period of ten years in total. There is a range of other laws that govern the tech sector, which we discuss below.
This law establishes the legal framework for securing electronic communications networks and information systems, defining and penalizing cyber offenses. Article 25 states that companies must take all measures to protect consumer data and ensure regular audits of their security systems.
This law establishes a legal framework for online transactions, digital signatures, and electronic contracts, aiming to build trust and security in the digital marketplace. It is followed by the Decision on National Electronic Communications Aggregation Platform (NECAP), which is a ministerial decision that improves interoperability between digital platforms. In summary. It creates a centralized platform for various digital services (financial, e-commerce, etc.) to ensure a more integrated and secure digital ecosystem that secures data integrity in digital transactions.
This law governs the customs clearance of imported software. If software is declared, a 10% Common External Tariff (CET) rate is applied, while if such software is discovered during inspection, companies will pay a 20% CET rate.
Article 127, Paragraph 15 stipulates that the sale of goods and provision of services on Cameroonian territory via foreign or local electronic platforms are subject to a tax of 19.25%. This is reinforced by Law No. 2020/008 of 20 July 2020 ratifying the 2020 Finance Law, which stipulates a tax on e-commerce activities.
It excludes the tax deductibility of remuneration for certain services provided by foreigners, with implications for foreign tech consultants. Section 7-B – This section includes provisions on non-deductible charges related to transactions with persons in certain territories, which will raise revenues but could slow technology and skills transfer if foreign experts are increasingly sidelined. It also introduces a work visa fee of 5% of the amount paid to foreign experts and modifies deductions for bad debt from credit institutions that could impact tech-related lending.
The government provides various subsidies and tax reductions on certain equipment, particularly those related to renewable energy and clean technologies, which are often tech-driven. While this does not explicitly target the tech sector, it will lead to technology diffusion as local entrepreneurs and tech specialists will have to learn about new systems and adapt to them.
- Policies and Guidance for the Tech Sector
While regulations tend to impose outcomes such as taxes or other benefits for tech companies, other policies provide a direction for travel for the tech sector. They help stakeholders shape their strategies and tools to advance the tech sector without explicit requirements.
- National Information and Communication Technologies (NICT) Policy.
This is one of the earliest policies from 2008 that provides guidance for the development of Cameroon’s tech sector. Elements of this policy, such as human capacity building, infrastructure development, and a conducive legal and regulatory environment, are re-emphasized in the National Development Strategy (SND 30).
Cameroon’s National AI strategy aims to train 60,000 AI professionals and create 12,000 direct jobs by 2040, with a projected contribution of 0.8% to 1.2% to GDP. The government has partnered with several firms to achieve this, but there are no specific incentives to protect the development of the tech sector, for example, through localizing data requirements that could generate local employment.
Section 2: Cameroon’s Tech Sector Readiness and Contribution to GDP
Cameroon’s tech readiness: Cameroon has 15,000 km of terrestrial fiber optic cables, with plans for further expansion, including about 3,500 km in 2024, and ranks last in global fiber optic development. Between 2018 and 2020, the cost of internet increased in Cameroon, dropping by $53 in Equatorial Guinea (Cameroon’s neighbor) and Mozambique. Irregular electricity access for 72% of the population who have access and ill-dated education has not supported the development of a flurry of tech entrepreneurs and data specialists. The lack of formal addresses is hampering the E-commerce sector, reducing the effect of good fiscal incentives for entrepreneurs.
Economic Contributions of the Tech Sector: The contribution of Cameroon’s digital and ICT sector to its GDP is considered modest, at 5% according to the Ministry of Posts and Telecommunications (Minpostel) for 2024, from 1.8% earlier. Globally, the digital sector contributes 20%, which suggests that Cameroon is lagging, even as the service sector (Communications) is an important lever for job creation despite being locked in the informal sector.
Policy Recommendations
- Stronger Property Rights Protections: Data should be viewed from a perspective of property rights to effectively promote safety and data integrity while boosting innovation. The current guidelines are instructive but do not explicitly provide a boost for the sector in terms of job creation. Data is not localized, which could have secondary benefits for the Cameroon economy.
- We need to digitize education and stop teaching IT in books: A practical training will prepare the next generation of tech entrepreneurs and empower them to create local solutions that reflect Cameroon’s needs.
- Policymakers should accelerate efforts to finalize Cameroon’s Start-up Act and provide frameworks that support formal lending beyond private equity while providing some additional incentives for individual entrepreneurs.
- Verifiable skills and technology transfer: A local content of 40 – 60% can be imposed on tech products and services to ensure that the local economy truly benefits from innovations, many of which are imported.
- Lower Internet Costs: Internet costs should be lowered, and a work plan and timeline should be envisaged by local regulators and communications companies to achieve this, to boost entrepreneurship and accelerate the development of the tech sector.
Conclusion
Cameroon’s tech ecosystem is governed by several laws and incentives that promote entrepreneurship, protect consumer data (loosely), and provide broad guidelines for the development of the tech sector via an AI strategy and National Development Strategy (SND 30). Cameroon needs a more responsive framework that instrumentalizes current fiscal incentives, while lowering internet costs and aggressively investing in its telecommunications infrastructure to ensure a well-functioning tech ecosystem.
About the Author
Henri Kouam is the Founder & Executive Director of the Cameroon Economic Policy Institute (CEPI)
