Embassy of the United States

Speeches Former Ambassadors

Ambassador Marquardt’s Address to the American Business Association

Douala
May 9, 2006

• Thank you very much for inviting me to speak today; I am always delighted to meet with the American Business Association, and I appreciate the excellent partnership we have enjoyed over my time in Cameroon.  With American business now the leading foreign investor here, the ABA’s role, voice, and influence are all significant.  During my remaining time in Cameroon, I look forward to working even more closely to make the most of our collective influence.

• The last time I spoke to you, I focused, as one often does when talking about Cameroon, on the immense potential I saw – and continue to see – here.  16 months and thousands of miles across the roads of Cameroon later, I am still very “bullish” on Cameroon.  I believe the country is at a turning point, and that the country can “flip” if current trends continue.  Why this optimism?

• Well, the positive decisions by the World Bank and IMF two weeks ago on Cameroon reaching the HIPC completion point are obvious strong indicators that the country is moving in the right direction.  I also believe that the political will to continue on the reform path remains strong, as shown by the Government’s growing commitment to fight corruption. 

• I have long believed that the corrupt environment here is the leading impediment blocking Cameroon from achieving its full potential.  Recent decisions to implement Article 66 of the Constitution, to create a high-level anti-corruption commission (CONAC) and a unit to investigate financial crimes, and to end the climate of impunity with investigations and arrests of conspicuously corrupt senior officials all indicate that a sea change is under way here. 

• I do not share the somewhat cynical view of some observers that these actions were merely tactical maneuvers to impress outsiders like the IMF, World Bank, and bilateral donors as Decision Point approached.  No, I am optimistic that this represents instead a new commitment on the part of Cameroonians themselves – in the government, but also across civil society -- to improve their society, their politics, and their economy -- by rooting out corruption. 

• I believe Cameroonians have begun the long process of changing mentalities that, alas, have become too accepting of -- and even complicit with -- corruption.  As such, this change will not take place overnight; it will take years.  It will require our patience as well as our support.  

• While optimistic, I am also sober about the risks and impediments.  The effectiveness and credibility of the future CONAC will depend on two things:  naming respected, credible, independent members who can guarantee its effectiveness, and funding it adequately to do its important job.  There are too many examples of other well-meaning commissions that failed because the wrong people were appointed or insufficient resources were allocated.  I hope that this not occur in the case of the CONAC.   It must be robust and independent to fulfill the promise it represents to the people of Cameroon.

• I share the public’s strong desire to recover stolen funds and to see wrong-doers prosecuted.  I too hope that this continues and succeeds and that officials in the public trust know they will be held accountable for any misdeeds.  Nevertheless, as this fight against corruption intensifies, as I believe it will, there may be too much focus at present on arrests alone as a barometer of government intentions. 

• I believe that there must be more understanding of the critical roles of good governance and new institutions that will prevent future corruption.  New institutional structures like the Article 66 process – which will prevent corruption more than reveal it – can change popular attitudes and create an environment of zero tolerance for corruption.

• Business has a very important role to play in this effort, and I would expect American business – given your long-standing commitment to zero tolerance of corruption around the globe to share the lead this effort in Cameroon.  I believe that American business, and any business that adopts American ethical standards, shows by example, wherever it goes, what a corruption-free business environment looks like and what benefits it brings. 

• Ever since the Foreign Corrupt Practices Act was passed in 1977, foreign governments and foreign buyers have known that awarding a contract to Americans was as close to a guarantee of ethical business practices as human nature allows.

• So, in practical terms, what am I suggesting to you all?  Please consider the following ideas.

• First, if problems you experience are not getting resolved after reasonable efforts or if bureaucratic bottlenecks are impeding your ability to maximize business opportunities, let your government know – let me know.  I will gladly raise your issue at the right level of the government, and having concrete examples of problems informs our approach at the policy level. 

• In the changing atmosphere here, I take at face value government assurances that they too want to create an environment conducive to business and that they will facilitate this.  In the overriding war on poverty that is Cameroon’s greatest challenge, it is clear that you – businessmen, investors, entrepreneurs – are the ones –who will create wealth, create jobs, create opportunity and future wealth. 

• Second, carry out your activities with integrity.  You have daily contact, at a variety of levels, with the full range of government.  Your refusal to accept corruption and abuses will reinforce the words and actions from the top.  

• Third, please speak out.  Diplomats are doing so, as are churches, politicians, and civil society.  I believe that a louder voice from business encouraging the government to continue on its stated path toward reform and against corruption will help reinforce the changes now under way. 

• I have a special suggestion for the American Business Association.  I encourage you to consider formally transforming your organization into an American Chamber of Commerce – the American Chamber of Commerce in Central Africa.  By becoming an AmCham, you become part of a world-wide group with global name recognition and an international reputation for doing what you already do so well. 

• This change would tie you into America’s pre-eminent international business organization and make you the business organization of reference not only in Douala but across the sub-region.  As many billions of dollars in new American investment are likely to come to Cameroon and to Central Africa in the coming years, I believe that the presence here of a familiar brand name and organization – a full-fledged American Chamber of Commerce – will accelerate and facilitate realization of Douala’s natural role as the regional hub.  And, when you speak out, your voice will be heard not only by governments here, but around the world.  I have a long  personal experience with American Chambers of Commerce around the world, and, if you so desire, I and my team in Douala and Yaounde will be pleased to work closely with you on this project. 

• Let me change the subject to politics.  Elections and stability are issues on the minds of many in Cameroon.  There is wide recognition that certain changes in the political structure and institutions will enhance Cameroon for investment not just by foreigners, but also by Cameroonians themselves.  One of the most important steps is to ensure that future political transitions will be smooth and peaceful and follow the rule of law.  Doing so, I think you would agree, will make Cameroon even more attractive to potential investors, among many other benefits.  

• I applaud the recent decision to create an independent electoral commission and I expect that the National Assembly will consider next month enabling legislation to create this new body.  I also understand that changes in the electoral code are being considered, all with the view toward enhancing stability.

• Cameroon reaching the HIPC completion point was a wonderful achievement.

• Let me mention several other challenges that follow Completion Point.  One is to manage expectations.  Completion Point and the debt relief it brings, while important, are not a panacea.  Indeed, the portion of the Cameroonian budget that will come from HIPC funds will remain relatively small:  it will rise from less than six percent of the total budget today, to just over ten percent.  This is a significant boost to the fight against poverty, but that it is not sufficient to change overnight the basic conditions prevailing in Cameroon. 

• A second challenge will be ensuring that HIPC funds are properly spent – on the right projects that are part of the war on poverty, without diversions to other purposes, and in a timely way so that beneficiaries receive them expeditiously.  The government’s recent moves to tighten up the management of the HIPC process, including by punishing those who misused funds in the past, are commendable. 

• It is an axiom that “success breeds success.”  I hope that Cameroon’s recent success with HIPC and Completion Point will also lead to future Cameroonian eligibility for the Millennium Challenge Account, or MCA.  This new U.S. assistance program rewards nations that meet 16 criteria relating to political and economic freedoms and commitment to investing in their people through health and education programs. 

• In other words, we want to invest U.S. taxpayer funds in countries that govern well.  This is based on the growing consensus that aid is most effective when it goes to such nations.  Ongoing improvements in governance here make it possible for Cameroon to become eligible for MCA.  I applaud the government for its efforts – through such improvements as the recently-unveiled Penal Code – to improve political freedoms.  Another welcome step that will enhance prospects for MCA and which I believe is just around the corner, will be the granting, after years of delay, of radio and television licenses to private broadcasters.  A government delegation was just in Washington to work on Cameroon’s MCA file. 

• Not wishing to stand much longer between you and your lunch, let me quickly enumerate several other issues which I think are of concern to us all.  One is the need to implement a modern investment code here.  Passing the enabling legislation for the investment code will be a good first step, followed by implementation and enforcement.  The objective must be a streamlined approach whereby the government coordinates a welcoming approach to investors, in lieu of an array of confusing hurdles to be navigated and overcome.  In this regard, we are still waiting for so-called “One Stop Shop” for investors here in Douala. 

• Another issue is air transportation.  Despite some glimmers of hope, reliable domestic air service does not yet exist here.  I was just in the north two weeks ago and I was struck by two things: the incredible business and tourism opportunities this area offers, and the near impossibility of traveling there.  Key players must rise above individual interests and take the national interest into account so Cameroon can get tourists and businessmen where they want to go.
  
• For Americans, Cameroon remains a distant and expensive travel destination.  The U.S. and Cameroon governments took a first step in addressing this issue in February when we signed an Open Skies Agreement.  Cameroon is the 75^th country with which the United States has negotiated Open Skies; the 16^th such country in sub-Saharan Africa.  Open Skies Agreements liberalize international aviation markets and minimize government intervention to facilitate growth and competition in air transportation. 
  
• These agreements remove restrictions on routes, capacity, frequencies, designations and pricing; include liberal "doing-business" rights; provide a basis for cooperative marketing arrangements; and give carriers the flexibility to respond to market conditions.  Our agreement applies to scheduled and charter passengers and all-cargo air services.  These liberal ground rules will facilitate the growth of an efficient, market-based international aviation system with potential for increasing commercial and business exchanges, investment, exports and tourism. 

• I should clarify that this agreement does not automatically or necessarily mean that U.S. airlines will fly directly into Douala tomorrow.  But now, any such decision will be based on market forces and security and safety considerations, and it will be taken by business people – not by their governments.  In other words, henceforth any Cameroonian or American company that wants to do so, can.  It means that Cameroon’s air market is now more open to those airlines (of any nationality) that do business with the U.S., either through code shares or through flights directly or indirectly between the two countries. 

• Airlines, however, cannot do the job alone.  To get to Cameroon one first needs a visa, and obtaining them overseas can be difficult and time-consuming.  While acknowledging our own rigorous standards for visa issuance, our adjudication of visa cases is quick, usually within a day or two. 

• The problems American investors, tourists and even families of diplomats have encountered trying to get Cameroonian visas are purely bureaucratic -- lengthy delays in approving visa issuance, often so pronounced that travel has to be postponed or cancelled altogether.  Those who have a choice about where to spend vacations or where to invest will be discouraged when trying to obtain a visa for Cameroon.

• Another issue critical to maintaining and enhancing Douala as an investment hub is the continuing existence of a quality American School here.  I believe that having such a facility here is essential.  Therefore, we are working closely with the government and with the American School of Douala to ensure its strong future here.  I remain optimistic on this issue as well, and I deeply appreciate the partnership we enjoy with the government on this issue.

• I said I am “bullish” on Cameroon, and optimistic on its future both politically and economically.  This is the message I will be taking to the Cameroonian Diaspora when I meet with them next week outside Washington D.C.  I will tell them about changes occurring in Cameroon and encourage them to play a role in supporting these changes by investing here, by working here, or by coming back to live here.  Cameroon needs their talent and their resources, and I suspect many will want to do so if they too are convinced that a New Cameroon is in the making.  
  
• I also want to thank and to congratulate those of you who just returned from participating in the U.S. - Cameroon Investor Forum in Washington, which my embassy organized.  The Forum brings together American and African government and business leaders, investors and bankers, suppliers and business promotion organizations, such as the Corporate Council on Africa.  This was a terrific opportunity for African delegates to learn about U.S. programs – such as the U.S. Export –Import Bank, the Overseas Private Investment Corporation, the U.S. Trade and Development Agency and the USAID West Africa Trade Hub.  
  
• The delegates also discussed their projects with U.S. financial institutions, held meetings with exporters and prospective U.S. partners for their investment projects, and inspected products and equipment.  I hope those of you who attended this year and last year found it useful.  Please be sure to share your experiences with your colleagues who have not attended so we can begin recruitment for next year’s forum, which will take place in April 2007 in Washington, D.C.
  
• In closing, let me simply restate two messages.  One is that Cameroon is changing, and that we, collectively, have a role and a responsibility to support this trend.  The second message is that this embassy is your embassy:  we are here to serve you and our doors and our ears are always open to you.  Whether you come directly to me and my team in Yaounde, or work through Rob Heater and Olivier Dakayi here in Douala, is up to you.
   
• But please do come to us and share with us your ideas, your observations, and, if you wish, your problems and challenges.  We in turn promise our support in every appropriate way.  Our goals are to see more U.S. firms doing business in Cameroon, and more Cameroonian firms making use of the African Growth and Opportunity Act to find markets in the United States.  I am optimistic that, together, we will accomplish these goals in the months and years to come.
  
• After our meal, I look forward to hearing any comments or questions you have for me.  Thank you for your attention.