Cameroonian SMEs are not in line with major projects – EDC

A statement made by the Electricity Development Corporation (EDC) revealed that Cameroonian SMEs are not in line with major projects, during the 3rd suppliers day of Bstp Monday, July 28 in Douala.

The Gicam conference room hosted the suppliers day for the “activity of the award of subcontract and partnership of Cameroon to bring together an originator (large businesses) and clients (SMB) for exchanges on subcontracting opportunities offered by these big businesses.

In this edition, Electricity Development Corporation (EDC), in charge of the construction of the Lom Pangar dam project, was faced with subcontractors to present opportunities that this project continues to offer. This was an opportunity for the Assistant Director in charge of Communication and the development of the project, Alphonse Emadak, earmark the weaknesses that leads small and medium-sized businesses (SMEs) Cameroon, in the race for the award of contracts.

According to him, the observation point is that Cameroonian SMEs are experts in all kinds of juggling. First in terms of legality, they are never in good standing while juggling with the CNPS, taxes, and other aspects. Very few spontaneously register their employees at the national Social Insurance Fund (Cnps) and pay their taxes. But when the call for tenders is issued, they "manufacture" all these documents to be in good standing and tender.

Then, for those who get the contract, the project is quickly abandoned because they are overtaken by the reality that “equipment that they claimed to have does not exist, they do not have the financial means to rent as they were doing. Staff that they had mentioned do not exist. These things hinder the progress of the work and cause delays and shortfalls.

The problem of governance is not left out. According to the exhibitor, business leaders get confused with everything. They use and abuse the funds of the undertaking which in generally joined to their pocket money, the company allocates because of too much customization.

Obligation to upgrade

These weaknesses and many others have been identified only to show that opportunities exist in the Lom Pangar project but Cameroon SMEs cannot grasp them due to lack of "level." From EDC, the Lom Pangar project is funded by 5 donors who are very meticulous when it comes to contract. And generally Cameroonian SMEs do not pass between the cracks. The database of 400 companies selected for the project is constantly updated and non-environmentally friendly standards companies are "blacklisted".

To fill the gap, the SPX has established a SMEs upgrade program which permits them to assess their practices and their performance and certify them at the end of the process. This certification is now required by the clients in the contracts. Except that SMEs are reluctant to join the program; they are too stringent. But globalization is more than ever effective, standards apply to all and everywhere, and those of SMEs which will not want to comply will die of their own death as is already the case.