MINPMEESA, GECAM: Agree on 20 Cameroon Business Formalization Reforms

• Cameroon's MINPMEESA and GECAM have agreed on 20 recommendations to address tax and financing barriers for informal businesses.
• These measures are intended to be part of a 2027–2030 roadmap aimed at encouraging business formalization.
• A national consultation in Douala on November 4 preceded the joint statement signed by Minister Achille Bassilekin III and GECAM president Célestin Tawamba.
• MINPMEESA's 2024 yearbook estimated 3.7 million informal production units, compared to 569,208 formal units in its 2025 yearbook.
• Only 2.1% of informal-sector workers in Cameroon have written contracts, while 50.2% work under verbal agreements.

The twenty recommendations resulting from the MINPMEESA GECAM agreement are slated to become integral components of a broader strategic initiative: the 2027–2030 business roadmap.

Cameroon's Ministry of Small and Medium-Sized Enterprises, Social Economy, and Handicrafts (MINPMEESA) has reached an agreement with the employers' organization, GECAM, on a set of twenty recommendations. These proposals are specifically designed to address the significant tax and financing obstacles currently faced by businesses operating within the informal sector. The objective is to facilitate their transition into the formal economy, a critical step for national economic development.

This collaborative effort emerged from a national consultation event held in Douala on November 4. The discussions involved a diverse group of stakeholders, including various government agencies, local municipal councils, financial institutions, and representatives from the private business sector. Following these extensive talks, a joint statement was formally signed by Minister Achille Bassilekin III, representing MINPMEESA, and Célestin Tawamba, the president of GECAM, solidifying the commitment to these proposed reforms.

The imperative for these Cameroon business formalization reforms is underscored by recent statistical data highlighting the vast size of the country's informal economy. According to MINPMEESA's 2024 Statistical Yearbook, an estimated 3.7 million informal production units were operational in Cameroon during that year. This figure starkly contrasts with the formal sector.

In comparison, the 2025 yearbook from MINPMEESA, as reported by Business in Cameroon, identified only 569,208 formal economic units. Within this formal count, 472,208 were categorized as active small and medium-sized enterprises (SMEs). Further insights from Cameroon's National Institute of Statistics (NIS), derived from its third survey on employment and the informal sector, revealed that a mere 2.1% of informal-sector workers possessed written employment contracts, while a substantial 50.2% relied solely on verbal agreements.

The twenty recommendations resulting from the MINPMEESA GECAM agreement are slated to become integral components of a broader strategic initiative: the 2027–2030 business roadmap. This comprehensive plan is specifically engineered to encourage and support the formalization of businesses across Cameroon. The upcoming roadmap is expected to introduce significant Cameroon tax financing reforms, aiming to create a more attractive environment for informal entities to register and operate legally.

Formal registration offers businesses crucial legal protections and access to a wider range of financial services and growth opportunities. The strategic implementation of this Cameroon informal sector policy through the 2027-2030 business roadmap will be pivotal in transforming the economic landscape, fostering greater transparency, and enhancing the overall stability and growth potential of Cameroon's enterprise sector, particularly for Cameroon SME formalization.

Lawyers advising businesses in Cameroon should monitor the upcoming 2027-2030 roadmap for business formalization, as it will introduce new tax and financing reforms. These changes will impact compliance requirements and potential incentives for clients operating in or transitioning from the informal sector, necessitating proactive advice on adapting business structures and operations.

Source: Original reporting via Business in Cameroon