Cameroon has taken a historic leap in economic governance with the enactment of Law no. 2025/010 of July 15, 2025, establishing a comprehensive framework for subcontracting operations nationwide. This groundbreaking legislation aims to streamline, secure, and energize a sector that contributes over 10% of the nation's GDP.

The need for regulatory reform

For decades, subcontracting in Cameroon operated under a patchwork of sector-specific regulations (Mining Code, Petroleum Code, Public Procurement Laws, etc.), resulting in:

·       Legal fragmentation across industries

·       Vulnerability for SMEs facing payment delays

·       Lack of transparency in contract awards

The new lawe liminates these challenges by:

·       Creating a unified legal framework

·       Implementing robust SME protections

·       Introducing strict compliance measures

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Key provisions of the new law

Comprehensive legal structure

The legislation clearly outlines:

·       Subcontracting categories (capacity-based, specialty-based, contractual)

·       Covered sectors

·       Clear obligations for contractors and subcontractors

SME safeguards

·       Priority for Cameroonian SMEs in major projects

·       Mandatory 30% advance payment before project commencement

·       60-day maximum payment terms

Enforcement mechanisms

·       Establishment of a Subcontracting Regulatory Authority

·       Severe penalties (up to 75% of contract value) for violations

·       Annual financial reporting requirements for prime contractors

Practical impact

The legislation transforms Cameroon's subcontracting landscape by:

·       Securing cash flow for SMEs through advance payments

·       Ensuring timely compensation with strict payment deadlines

·       Promoting transparency through mandatory disclosures

·       Deterring malpractice with substantial penalties

This reform represents a watershed moment for local businesses, fostering fair competition, financial stability, and sustainable growth.

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