The executive director of the Bourse de sous-traitance et de partenariat du Cameroun (BSTP) emphasizes the relevance of the recent workshop in Douala aimed at finalizing and validating a local content charter. This event seeks to define how local content can invigorate the national economy and contribute to Cameroon’s emergence.

What is Local Content?

Local content refers to the local resources that a company uses or develops along its value chain when investing in a project in a host country. According to the Cameroonian government, this encompasses the development of local capacities, the utilization of local human and material resources, technology transfer, as well as the creation of measurable added value to the local economy. In essence, local content is measured by:

• The development and employment of local labor.
• Training of this labor force.
• Investments aimed at developing local suppliers.
• Purchases of local supplies and services.

Why Develop a Local Content Charter?

With 99.8% of the Cameroonian economic fabric composed of SMEs, of which 79.32% are very small enterprises, these entities face numerous challenges, including international competition and lack of funding. The local content promotion charter aims to enhance the competitiveness of these SMEs and VSEs, enabling them to better withstand foreign competition. Indeed, this instrument is crucial for stimulating job creation and ensuring the sustainability of subcontracting companies.

A Response to an Established Need

The BSTP's interest in local content is not new. Since its inception, the organization has worked to integrate local content into subcontracting activities. Previous workshops, such as the one in December 2014 in Yaoundé, laid the groundwork for promoting this approach. In May and June 2021, advocacy was also conducted to integrate local content into the country’s economic policies.

Expected Outcomes of the Workshop

The two-day workshop in Douala is expected to yield:

• A local content promotion charter for SMEs and VSEs.
• Recommendations for implementing this charter, including participation from contracting parties and stakeholders.
• The establishment of a monitoring and evaluation system to measure the charter's impacts.
• A communication plan to raise awareness among economic actors about the importance of local content.

Contribution to the National Economy

Currently, about 40% of Cameroonians live below the poverty line, particularly in rural areas where many natural resources are exploited. However, local economic development struggles to keep pace, leading to insufficient inclusive growth. The low local content in current projects limits the participation of local actors and the creation of added value.

Promoting local content is therefore essential for redistributing wealth derived from local resources and fostering the emergence of a skilled workforce. It represents a genuine “win-win” model for sustainable development, aimed at reducing poverty, increasing living standards, and developing a local industry.

Benefits for the Subcontracting Sector

The BSTP plays a key role in promoting and developing subcontracting. By reserving a significant portion for local companies in projects, a guarantee of resource redistribution at the local level is established. For example, if 50 to 60% of a contract is allocated to local enterprises, it translates into significant economic returns. For a one-billion contract, this could generate 500 to 600 million being redistributed, thus contributing to the country’s economic growth.

In summary, the local content charter represents a strategic lever to enhance the competitiveness of Cameroonian SMEs and VSEs, while the development of local content is essential for ensuring a prosperous and inclusive economic future for Cameroon.