Kribi Port Industrial Zone: The New Destination for Industrialists in Cameroon
Cameroon is poised to take a significant leap in its industrial and economic development with the establishment of the Kribi Port Industrial Zone (KPIZ). This ambitious project is not just a testament to the country’s growth potential but also a beacon of opportunity for industrialists looking to invest in Africa.
The KPIZ is strategically positioned to harness Cameroon’s rich natural resources and bolster its position as a key player in the Central African region. With an estimated cost of $900 million, the project promises to create a robust infrastructure that includes a deepwater port, logistics centre, and an industrial zone spread over 1,500 hectares.
One of the most compelling aspects of the KPIZ is its potential to generate approximately 50,000 direct jobs, which will significantly impact the local economy and livelihoods. This aligns with Cameroon’s National Development Strategy 2020-2030, which aims to accelerate the country’s industrialization and improve its competitiveness in international trade.
The KPIZ is a collaborative effort involving international partners such as the Tangier Mediterranean Special Agency, Bolloré Africa Logistics, ICTSI, and CHEC, who bring their expertise and financial resources to the table. This international consortium underscores the global confidence in Cameroon’s vision and the viability of the KPIZ.
The industrial zone will focus on processing subsoil raw materials and agricultural products, primarily for export, positioning Cameroon as a vital gateway for trade in the region. Additionally, the KPIZ is expected to enhance trade with neighbouring countries, unlock the country’s mining potential, and create a sustainable development model that can be replicated across Africa.
Investors in the KPIZ will benefit from substantial tax and customs exemptions under the 2013 law governing economic zones in Cameroon, providing a conducive environment for businesses to thrive. The project also includes the construction of supporting facilities like telecommunications, water, electricity, public lighting, and roads, ensuring that the industrial zone is well-equipped to meet the demands of modern industries.
The KPIZ represents a forward-thinking approach to economic development, one that leverages Cameroon’s strategic location, natural resources, and human capital. It is a clear signal that Cameroon is open for business and ready to welcome industrialists from around the world.
Cameroon has reached a new milestone in its industrial development with the inauguration of the Cimpor cement plant in the Industrial Zone of the Port of Kribi (ZIPK) on July 19, 2024. This event, chaired by Prime Minister Joseph Dion Ngute, underlines the importance of this new facility for the country. Cimpor, a major player in the cement sector, now has a production capacity of one million tons per year, thus consolidating the country’s ambitions to not only meet the national demand for cement estimated in 2014 at more than 3 million tons, but also to position itself on regional markets.
Before the Portuguese, the Cadyst group had made the same choice, that of establishing itself in the industrial-port zone of Kribi. It aims to transform 100,000 tons of wheat into flour annually, to be used in particular for the manufacture of pasta, with a production capacity of 12,000 bags of flour of 50 kg per day for an investment of 13.5 billion CFA francs.
The diversity of companies present in the ZIPK is a testament to the ongoing industrial dynamics. Players such as Atlantic Cocoa Corporation (ACC) stand out in the agri-food sector, transforming local raw materials into finished products for local and international markets. Logistics, another key sector, is well represented by companies such as IHM, KIS, and SCI Kaloupe, which ensure the efficient transport and distribution of goods. In addition to these companies, there are also others including: Société industrielle de construction d’appareils électroménagers et de climatisation, Bolloré Transport Logistique (BTL), Ocean Shipping and Logistics Company SA, Kribi Island Service (KIS), Société d’exploitation des parcs à bois du Cameroun (SEPBC), and IHS (telecommunications). These companies benefit from the state-of-the-art port infrastructure offered by the Autonomous Port of Kribi.
In addition, these investments, estimated at 200 billion CFA francs by the end of October 2023, to which others will be added, will further strengthen the ZIPK. Already, these facilities generate a significant number of direct and indirect jobs, estimated at more than 5,000, namely: 300 for KCT, 300 for KMT, 800 for CHEC, 150 for ACC, 100 for Cimpor, and 150 for La Pasta… This is without counting the ongoing mining projects that will stifle the job offer, such as the Kribi iron project by Sinosteel CAM SA. The Chinese company plans to invest 425 billion CFA francs in this project, which will generate 600 direct jobs and 100 indirect jobs.
The banking sector is not left out
The rush of private companies to the seaside city has pushed Cameroonian commercial banks to integrate it into their expansion strategy. As evidence, UBA Cameroon recently opened a new VIP branch in the port area, providing a full range of financial services tailored to the specific needs of businesses. Bange Bank, CCA, and others are also established there. Indeed, the trade generated by the activity of these large industries, coupled with the increase in population, should benefit from the growth in staff numbers and therefore the expected increase in the bankable population in this part of the country. A niche for banks. According to the projections of the third general census of population and housing, the population of the city was estimated at 100,000 inhabitants in 2015, compared to 55,702 in 2002.
A niche of opportunities
The ZIPK, which covers 15,000 hectares, is one of Cameroon’s major industrial development projects. This zone offers an environment conducive to the establishment of companies from various sectors, including the logistics sector, agricultural resource processing sectors, forest products, and mining resources. Since its inauguration in 2018, the zone has attracted a multitude of investors, with around forty partners already installed or in the process of installing.
Sources at the Port of Kribi inform us that the development of the Industrial Zone is being carried out in phases, with a strategic approach based on clusters. These include specific zones for heavy and medium industries, agri-food industries, and research and development activities. This organization facilitates the creation of synergies between companies, thus optimizing value chains and promoting innovation. The infrastructure also includes essential services such as telecommunications, water, electricity, and sanitation networks, as well as support facilities such as living centres and warehouses.
