The National Investment Corporation has a very important role to play in Cameroon's economy, but does it do it?
By Louis-Marie Kakdeu.
The Société Nationale d'Investissement (SNI) no longer deserves its name. It was set up in 1963 with the aim of mobilizing, fixing and directing national savings with a view to encouraging, by appropriate means, investment operations of economic and social interest in the industrial, Agricultural and commercial sectors.
It is responsible for participating alongside the State in the improvement of industrial policy, as well as being the operator responsible for its effective implementation.
SNI is a holding company which takes ownership interests in companies in the national economic fabric. It is mainly a financial institution intended to finance operations in companies, to prospect, to detect and identify new niches with an industrial future, to contribute to the improvement of the management methods of the companies financed, and so on.
Besides, the SNI has a very important role to play in the country's economy, but does it actually do it?
 |
| Société Nationale d'Investissement (SNI) Does Not Play Its Role |
SNI PROMOTES BIG ENTERPRISES
We reply in the negative. Our first observation is that the SNI focuses much more on large companies (Chococam, Sic Cacaos, Socapalm, SABC, etc.) and gives very little interest to local SMEs and SMIs.
However, most of these large companies are no longer creating growth and employment in line with the Growth and Employment Strategy Paper (GESP), which favors SMEs and SMIs in the revival of the national economy.
Therefore, if the Cameroonian government wants to boost its economy by investing, then it will have to reorient the activities of the SNI towards the development of new companies and new industries.
In the context of under-production and as a financial institution, the new NIS should support SMEs / SMIs to boost domestic supply to meet consumption needs and why not export the surplus to the Region and other international markets.
We reply in the negative. Our first observation is that the SNI focuses much more on large companies (Chococam, Sic Cacaos, Socapalm, SABC, etc.) and gives very little interest to local SMEs and SMIs.
However, most of these large companies are no longer creating growth and employment in line with the Growth and Employment Strategy Paper (GESP), which favors SMEs and SMIs in the revival of the national economy.
Therefore, if the Cameroonian government wants to boost its economy by investing, then it will have to reorient the activities of the SNI towards the development of new companies and new industries.
In the context of under-production and as a financial institution, the new NIS should support SMEs / SMIs to boost domestic supply to meet consumption needs and why not export the surplus to the Region and other international markets.
SNI FORESTS TRANSFORMATION INDUSTRY
Our second observation is that the SNI is positioned only upstream of the channels. In the forestry sector, for example, it is concerned only with raw logging.
The companies in this sector export the logs so that Cameroonians (the more affluent) import furniture and other manufactured wood products. The same is true in other sectors such as palm oil, coffee, mining, cocoa to some extent, and so on.
These products are exploited only raw or artisanal, in a context where the processing industry is largely open and open. It is therefore appropriate for SNI to also invest downstream (by encouraging and / or financing local processing) in order to increase the added value of local products and create more wealth.
SNI BEHAVIORS
Our third observation is that SNI is more interested in profitable investments and forgets its promotional role. This means that its only real mission is to take a stake in large companies (mainly multinationals).
It does not fund enough research and innovation. The SNI should also have the task of financing research and development in order to enhance the value of local creativity and contribute to solving the competitiveness problems of the national economy. In addition, it should mainly finance the modernization of businesses that commercial banks are reluctant to support.
Our second observation is that the SNI is positioned only upstream of the channels. In the forestry sector, for example, it is concerned only with raw logging.
The companies in this sector export the logs so that Cameroonians (the more affluent) import furniture and other manufactured wood products. The same is true in other sectors such as palm oil, coffee, mining, cocoa to some extent, and so on.
These products are exploited only raw or artisanal, in a context where the processing industry is largely open and open. It is therefore appropriate for SNI to also invest downstream (by encouraging and / or financing local processing) in order to increase the added value of local products and create more wealth.
SNI BEHAVIORS
Our third observation is that SNI is more interested in profitable investments and forgets its promotional role. This means that its only real mission is to take a stake in large companies (mainly multinationals).
It does not fund enough research and innovation. The SNI should also have the task of financing research and development in order to enhance the value of local creativity and contribute to solving the competitiveness problems of the national economy. In addition, it should mainly finance the modernization of businesses that commercial banks are reluctant to support.
NIS IS UNABLE TO DIVERSIFY SOURCES OF FINANCING
Our fourth observation is that the SNI focuses on the management of public resources. If the state has no means, then the SNI will not have the means either. However, it should be the operational arm of the State in the search for funding (including abroad) in order to support the national economy.
In order to finance the investment sufficiently, sufficient capital must also be available. The state and the SNI do not always have these assets today. For this reason, the SNI should work to diversify sources of financing and attract foreign investors.
Our fourth observation is that the SNI focuses on the management of public resources. If the state has no means, then the SNI will not have the means either. However, it should be the operational arm of the State in the search for funding (including abroad) in order to support the national economy.
In order to finance the investment sufficiently, sufficient capital must also be available. The state and the SNI do not always have these assets today. For this reason, the SNI should work to diversify sources of financing and attract foreign investors.
THE SNI NOYE WITH PLEDTHORIC STRUCTURES
Finally, our last observation is that the SNI is competing with other organizations and programs to promote private investment in Cameroon. At the Presidency of the Republic, there is now an Investment Promotion Agency (IPA). At the Ministry in charge of SMEs / SMIs, there is an SME / SME Promotion Agency (A-SME). At the Ministry of the Economy and other ministries in charge of national production, there are multiple investment promotion programs.
For example, in the Ministry of Agriculture, there were 45 in 2012. Such a fragmentation of the missions of promoting investment in several institutions favors clientelism and reduces the SNI to the role of investment company.
It is appropriate either to reduce the activities of the SNI to the investment activities or to give it the means to ensure the coordination of all the investment activities in Cameroon.
Finally, we say that the SNI should also focus on SMEs and SMIs, local processing, technological innovation and the mobilization of private capital.
It can not be limited to managing the state portfolio in a few large companies. It can not be limited to the financing of raw holdings. As a financial institution, it must take into account the needs of Cameroonian companies, which are stagnant mainly because of difficulties in accessing finance (especially modernization) and low competitiveness.
If the Cameroonian state wants to have a critical mass of SMEs / SMIs within a few years (2035) and capable of contributing to the development of the country, then it must refocus the SNI on its main missions by adding reinforcement Capacity, improving the business climate and developing the entrepreneurial culture, instead of multiplying committees, bodies and overflowing plans.
Finally, our last observation is that the SNI is competing with other organizations and programs to promote private investment in Cameroon. At the Presidency of the Republic, there is now an Investment Promotion Agency (IPA). At the Ministry in charge of SMEs / SMIs, there is an SME / SME Promotion Agency (A-SME). At the Ministry of the Economy and other ministries in charge of national production, there are multiple investment promotion programs.
For example, in the Ministry of Agriculture, there were 45 in 2012. Such a fragmentation of the missions of promoting investment in several institutions favors clientelism and reduces the SNI to the role of investment company.
It is appropriate either to reduce the activities of the SNI to the investment activities or to give it the means to ensure the coordination of all the investment activities in Cameroon.
Finally, we say that the SNI should also focus on SMEs and SMIs, local processing, technological innovation and the mobilization of private capital.
It can not be limited to managing the state portfolio in a few large companies. It can not be limited to the financing of raw holdings. As a financial institution, it must take into account the needs of Cameroonian companies, which are stagnant mainly because of difficulties in accessing finance (especially modernization) and low competitiveness.
If the Cameroonian state wants to have a critical mass of SMEs / SMIs within a few years (2035) and capable of contributing to the development of the country, then it must refocus the SNI on its main missions by adding reinforcement Capacity, improving the business climate and developing the entrepreneurial culture, instead of multiplying committees, bodies and overflowing plans.
An article from Libre Afrique | Société Nationale d'Investissement (SNI) Does Not Play Its Role
