Press briefing on the Agreement between SPX-CMR – PAK 

The Cameroon Subcontracting and Partnership Exchange (SPX-CMR) is now linked to the Autonomous Port of Kribi (PAK) by a framework agreement and this is a real surprise. How did we get here?

The Cameroon Subcontracting and Partnership Exchange (SPX-CMR) has been practically in de facto partnership with the Autonomous Port of Kribi since 2019. In October 2020, we organized a visit of more than 200 SMEs/SMIs to the port area of Kribi, for the benefit of the PAK. To date, no other visit to this port place has attracted so many companies to the PAK for an event. The day after this site visit, a "Suppliers Day" was held in Kribi, which the participation of 216 SMES from all regions of the country. Following this event, SMEs/SMIs won contracts at PAK. And several other companies have since been part of the portfolio of PAK approved service providers. These agreements which follow, therefore constitute a formalization of the partnership which already bound the two structures. They now set the terms of collaboration between the parties and the framework in which these will be implemented. The general framework in question is the promotion of subcontracting activities in the area of influence of the PAK.

We have heard of not one agreement, but four. What is it exactly?

Indeed on May 26, 2023 in the Conference Room of the Emergence building, PAK headquarters in Kribi, four agreements were signed. They were initialled by the Minister of Small and Medium-Sized Enterprises, Social Economy and Handicrafts (MINPMEESA), and the Director General of the Autonomous Port of Kribi (PAK). The first is entitled “Framework partnership agreement” between the two institutions and is more encompassing. It determines the strategic axes and the methods of collaboration between the parties within the framework of the promotion of SMEs and the spirit of enterprise in the area of influence of the PAK.

This agreement has the following strategic areas of collaboration: 1. support for local incubation structures; 2. support for the migration of actors from the informal sector to the formal sector and 3. the promotion of subcontracting activities in the area of influence of the PAK. Each of these strategic areas of collaboration was subsequently the subject of a specific agreement. It is therefore the signing of a last specific agreement relating to the promotion of subcontracting activities in the area of influence of the PAK which concerns the SPX.

Let us look at this specific agreement relating to the promotion of subcontracting activities to which the BSTP is mainly concerned. What are the outlines of this agreement?

The aforementioned agreement establishes the terms of collaboration between the parties in the context of the promotion of subcontracting activities in the area of influence of PAK. The areas of collaboration are - the promotion and establishment of conditions and mechanisms facilitating the subcontracting activities of local SMEs, and support with a view to building their capacities; - the dissemination of PAK subcontracting opportunities in the network of the Cameroon Subcontracting and Partnership Exchange (SPX-CMR); - facilitation of access for local SMEs referenced in the SPX-CMR network to PAK subcontracting opportunities; - the choice of the SPX-CMR as a mobilization body in the PAK's area of influence; - the allocation of space in the port public domain for the construction of a logistics zone in accordance with the terms and conditions for authorization of temporary occupation in force at the PAK; - the organization of “supplier days”; - the exchange of data and information on subcontracting activities in the port area; - monitoring and evaluation of the implementation of the Agreement. It is clear that all aspects related to the multifaceted relationship, to the activities of promotion subcontracting and to the development of the partnership have been effectively taken into account within the framework of the said partnership for the common interests of the donors and the contractors.

How will this agreement benefit the SPX and SMEs?

The whole answer lies in the strategic axes of the agreement that I listed above. The agreement provides for a space that will be allocated to us for the construction of a logistics base that can serve as a relay for our various members. In concrete terms, we are going to build facilities there that will serve as an office for local branches of the SPX in order to listen to the Principals of the industrial-port complex. We will also welcome on this dedicated site SMEs / SMIs who will provide services in the field of application related to port activities and operations. Many SMEs/SMIs are based outside Kribi and will be forced to move teams there and equipment for services. This will therefore contribute to the reduction of transaction costs for SME/SMI members of the BSTP who will capture work from the PAK and other Principals installed in the port area. There will therefore necessarily be a rapprochement between the Principals and their subcontractors, the contractors. The PAK is not only port activities, but it is also an entire industrial-port complex with large partner companies in the value chain that have already begun to set up there.

It goes without saying that with regard to the provisions of this agreement that I have listed in the strategic axes, the SME/SMI members of the SPX will benefit from present and future subcontracting opportunities. It will be from our portfolio that most of the subcontractors for this industrial-port complex will be selected. The immediate consequence will be the growth of the turnover of subcontracting companies with the main benefit of increasing the tax base of our country, with the corollary of the increase in jobs within the framework of subcontracting activities, thus impacting local content.

Finally, through this agreement, the SPX will be able to further establish its position as a privileged intermediary for connecting SMEs and contractors, while guaranteeing a healthy and beneficial partnership framework for all parties. 

What does the port community as a whole and even the town of Kribi benefit from?

Both entities will inexorably benefit from the socio-economic benefits of industrial-port activities and other related activities. This will be additional revenue for the various town halls of the city and for all other activities due to the demographic boom that the presence of several companies in the region will induce. There will be jobs for the people of this region. The implementation of this agreement will therefore allow La Région du Sud as a whole and the Department of the Ocean in particular, to increase their attractiveness to investors, businesses and populations.

What do the two parties intend to do so that this agreement can be truly beneficial for SMEs, in short that it does not just remain on paper?

The SPX-CMR and the PAK have an interest in ensuring that the content of this agreement is fully translated into action for the benefit of both entities and more for SMEs and the economy of our country. I must tell you that the operation of the logistics base to which I alluded will contribute to the sustainability of the SPX and its activities carried out within the framework of supporting companies thanks to the resources generated by the operation of this logistics base. The SPX remains within its institutional mission, which is to create a favorable and transparent framework for the development of the connection between the supply of major companies and the demand of subcontractors.

Monitoring and evaluation procedures have been provided for in the agreement and we will ensure at our level that they are implemented. A joint unit responsible for monitoring the implementation and evaluation of the Partnership Agreement and subsequent Specific Agreements will soon be set up. As regards the specific report relating to the promotion of subcontracting activities which concerns us, a working group is being set up for its implementation. The SPX has already appointed its representatives in this body. The agreement was concluded for a renewable period of three years.