Cameroon to extend tax relief for new listings on the stock market
The government proposed a three-year extension.The Government of Cameroon has proposed, under its Finance Bill 2016, to extend by three years a tax incentive scheme for new listings on the Douala Stock Exchange (DSE).
However, the measure had "mixed results" so far, according to Invest in Cameroon magazine.
It said the market suffers from "very low liquidity levels, slow operational architecture and transaction costs that are still higher than when financing through banks or other sources."
The market currently counts three companies in the stock compartment and six institutions in the bond compartment for a market capitalisation of just over CFAF500 billion (€ 762 million).
The announcement comes as Cameroon's government is about to sell its shares in three companies via the DSE to revitalise the country's stock exchange, according to Jeune Afrique.
It plans to sell at least 20 per cent of its shares in sugar producer Sosucam and aluminum specialists Socatral and ALUBASSA.