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COVID-19: EU Investors Withhold $296 Million Projects Funds

European companies operating in Cameroon are currently rethinking the investment of 148 billion FCFA (296 million dollars) they had intended to plough into various projects in the country due to the impacts of COVID-19 pandemic.

According to the just published 2020 report on European investments in Cameroon, 69 per cent  of the companies were affected by way of problems in  supply and logistics chains while 62 per cent were confronted by an absence of goods or services.

The report reveals that 60 per cent of the European companies have postponed or nullified their investments while 54 per cent saw commands for goods and services cancelled.

In addition, 52 per cent of the enterprises suffered a drop in demand for their products and services while the same percentage of European countries in Cameroon faced liquidity problems. 

The report further stated that 46 per cent of the European enterprises faced losses in production or an increase in absenteeism.

On the social front, the companies reduced their direct work forces by 50 per cent which corresponds to at least 11,000 jobs. Indirect employment lost stood at not less than 24,500.

European Union companies constitute the largest percentage of big establishments in Cameroon and according to the Cameroon Inter-Patrol Group, popularly known by its French acronym, GICAM, 50 per cent of these big international conglomerates have declared that their production s are  directly affected by the coronavirus crisis as against 36 per cent within the small and medium size camp.

In general, 69 per cent  of industrial enterprises confirm that their production is directly affected by the negative effects of the Covid-19 as against 26 per cent within service enterprises.

Cameroon has recorded a total of  22, 103 COVID-19 cases with 21,151 recoveries and a total of 429 deaths as of Wednesday, November 4, 2020.

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