As part of my work as a consultant for the T.I.E. project, funded by the European Union, I conducted an in-depth study in 2022 on the effectiveness of the technological and digital entrepreneurship ecosystem (ECOTECH) in Cameroon. The study aimed to identify the key success factors for startups in this sector, assess the obstacles, and propose concrete recommendations to enhance the ecosystem’s performance.
A Young but Fragile Ecosystem
The findings reveal an ecosystem in its early stages, marked by significant potential but also numerous structural weaknesses. Key statistics from the study include:
- 69.74% of startups rate themselves as ineffective, often hindered by administrative challenges, lack of professionalism, and non-productive side activities.
- 51.3% of startups operate informally, making it difficult for them to access opportunities such as tax exemptions or structured funding.
- Despite efforts by the government, such as the 2021 Finance Law, which exempts some startups from taxes for five years, 87.2% of startups report not benefiting directly from these measures.
- The ecosystem is heavily concentrated in the tertiary sector, with 80.3% of startups focusing on software design and application development. These companies employ an average of 3 full-time and 4 part-time employees but struggle with profitability: 65.81% fail to cover their expenses through revenue.
The Role of Support Structures
Incubators play a central role in ECOTECH, but their impact is limited by financial constraints and reduced accessibility for startups. The study highlights:
- 33.33% of startups have used incubator services, with an average incubation period of 6.5 months.
- These services are deemed 63.5% effective, particularly for lobbying (32.4%) and providing workspaces (25.7%).
- However, 70.7% of incubator services are not monetized, weakening their economic sustainability.
Startups affiliated with incubators tend to be more formal, led by educated entrepreneurs, and benefit more from tax exemptions. This underlines the importance of strengthening incubator support to enhance startup sustainability.
Structured Recommendations for Lasting Impact
To address the challenges identified, the study outlines 6 strategic areas for improvement:
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Strengthening Infrastructure
- Increase 3G and 4G coverage (currently 2.7 kbit/s per user, compared to 11.2 kbit/s on average in sub-Saharan Africa).
- Develop shared workspaces to lower rental costs, identified by 43.6% of startups as a major obstacle.
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Improving the Regulatory Framework
- Create a semi-formal status for startups (linked to incubator registration) to provide tailored support toward formalization. This would address the needs of the 51.3% of startups operating informally.
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Adapting Financing Options
- Develop seed funds through crowdfunding platforms and institutions like BCPME, as 99% of startups lack access to bank loans.
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Enhancing Technological Skills
- Offer training in emerging technologies (AI, cloud computing, etc.), which remain underutilized by Cameroonian startups.
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Supporting Incubators
- Subsidize these structures and introduce digitalization micromarkets, funded by the government or NGOs, to ensure incubators and startups collaborate on practical projects.
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Improving Communication
- Better inform startups about available measures, as 46.2% are unaware of the tax exemptions in place.
A Vision for the Future
This study highlights the immense potential of Cameroon’s ECOTECH while emphasizing the need for targeted improvements to make it a true driver of economic development. With adequate infrastructure, flexible regulations, and accessible financing, Cameroonian startups can play a key role in innovation and growth.
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