Cameroon Study Suggests Joint Ventures Employ More Workers Than Wholly Foreign-Owned Firms

Joint ventures account for the majority of jobs reported by foreign-investment companies surveyed in Cameroon, according to Cameroon’s Business Climate at a Glance, a report based on pilot UNIDO-API surveys of foreign direct investment (FDI) firms operating in the country.

The study found that partnerships between foreign investors and local businesses play a significant role in employment within the sample analyzed.

According to the report, joint ventures account for 32 of the 75 companies surveyed, representing 42.7% of the sample. However, they account for 14,785 of the 24,430 jobs reported, or 60.5% of total employment.

By contrast, wholly foreign-owned enterprises (WFOEs) represent 50.7% of the companies surveyed but account for only 32.2% of reported jobs. Companies owned by domestic investors number five and represent 6.7% of the sample.

For the authors of the report, the gap reflects the larger average size of joint ventures.

“Joint ventures contribute a larger share of total employment than their weight in the sample would suggest, indicating a higher average workforce,” the report states.

A Potential Tool for Investment Policy

The stronger employment contribution of joint ventures may partly reflect the profile of the companies involved.

These partnerships typically combine international investors with local partners, which can encourage investment in activities that require larger workforces, including manufacturing, processing, logistics, and certain infrastructure-related services.

The report cautions, however, that the data alone do not establish a direct causal relationship between ownership structure and the number of jobs created.

The study also notes the importance of distinguishing between the role of joint ventures within the sample and their contribution to the broader national economy.

The findings cover 75 companies linked to foreign direct investment and therefore do not provide a comprehensive picture of Cameroon’s entire productive sector. This distinction is particularly important because foreign-owned firms naturally dominate the sample, given the report’s focus on FDI enterprises.

Still, the data suggest that partnerships between foreign investors and local businesses could serve as an effective tool in policies aimed at attracting and retaining investment.

If supported by local-content policies, workforce training, and skills-transfer programs, joint ventures could strengthen the integration of foreign investment into the national economy.

The report therefore highlights a central issue for Cameroon’s industrial strategy: attracting foreign capital alone is not enough. The nature of investment, the way companies establish themselves, their degree of local integration, and their ability to create formal jobs also matter.

European and Asian Firms Lead Employment

The report also shows that Europe and Asia are the two largest sources of jobs among the companies surveyed. European firms account for about 45% of total reported employment, compared with about 34% for Asian companies.

Sector profiles differ, however, depending on the origin of investors. European firms operate across manufacturing, services, and infrastructure, while Asian companies are more concentrated in manufacturing and port-related activities, particularly in the Littoral Region and the city of Douala. African investors account for seven companies in the sample, including one Cameroonian company, and represent about 11% of total reported employment.

Although fewer in number, these firms therefore generate a meaningful share of the jobs observed in the survey. The findings confirm the diversity of investor origins among the companies studied, with Europe and Asia accounting for the largest share.

More importantly, they show that the assessment of foreign investment cannot focus solely on capital volumes. Its impact on employment, local production, and industrial transformation also depends on the type of company, the sector in which it operates, and the extent of its integration into Cameroon’s economy.

Amina Malloum