Investment incentives driving growth in factory capacity in Cameroon

Aug 10, 2020

Pasta manufacturer Africa Food Manufacture (AFM) has a signed a XAF13bn($23.4m) investment agreement with Cameroon’s investment promotion agency, API, to build a durum flour production plant. The Agropastoral and Industrial Company of Ngaoussai has also signed a XAF9bn ($16.2m) investment agreement with API to build a new dairy.

Douala-based Africa Food Manufacture’s new pasta plant will have the capacity to produce 350 tonnes of pasta daily. AFM was founded in 2016 and is a large domestic manufacturer and owner of the Bolero, Pasta Bella, Rahama, Senorita and Taliya brands. The investment is aimed to cut imports of pasta brands into Cameroon. AFM’s agreement with investment promotion agency API means that it will benefit from tax and customs incentives for 5-10 years.

AFM competes directly with Cadyst Invest, which manufactures locally and owns the La Pasta brand and is a local partner for the Panzani brand.

The Agropastoral and Industrial Company of Ngaoussai will build a factory for the production of dairy products such as milk, cheese, yogurt, as well as and biogas. It will be located in the Adamaoua region, which is known for cattle farming. Two dairies built in the towns of Ngaoundéré and Meiganga by the Cameroonian government have largely sat idle for the past five years even though Cameroon has an average production deficit of over 170,000 tonnes of milk per year.

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