Law no.2025/010 of July 15, 2025, lay down the subcontracting regulation in Cameroon, introduces a major advancement: the obligation for principal contractors to pay a minimum advance of 30% before the start of work. This is a revolution for SMEs that previously had to bear the burden of pre-financing alone.

How Does It Work?

• Automatic payment upon contract signing
• Mandatory bank guarantee to secure the advance
• Gradual deduction as work progresses

Benefits for SMEs

1. Secured Cash Flow: No need for debt to start a project
2. Investment Capacity: Ability to purchase equipment and raw materials
3. Risk Reduction: Less dependence on payment delays

Obligations of Clients
• Bank guarantee issued by an accredited institution
• Transparency in the deduction mechanism
• Strict adherence to the payment schedule

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