Introduction

Foreign direct investment (FDI) does more than create factories and industrial jobs. It can also improve access to healthcare, finance medical infrastructure, strengthen local pharmaceutical production, and promote technology transfer. These benefits, however, depend on public policies that effectively direct investment toward these priorities.

What is Foreign Direct Investment?

Foreign direct investment refers to the long-term establishment of a foreign company in another country. It may involve building a factory, opening a private clinic, or acquiring a controlling stake in a local company. Unlike portfolio investment, FDI creates a lasting presence. In healthcare, it can support diagnostic laboratories, pharmaceutical manufacturing, medical equipment production, and telemedicine services.

Cameroon: An Attractive but Competitive Destination

According to the United Nations Conference on Trade and Development (UNCTAD), Cameroon attracted 929 million US dollars in FDI in 2024, an increase of 10.8 percent over 2023. Nevertheless, it ranked fourth in Central Africa for FDI inflows, behind the Democratic Republic of the Congo, Gabon, and Chad. A major Sino-Cameroonian pharmaceutical complex worth 948 million US dollars is under construction in Yaoundé. The project could reduce the country’s heavy dependence on imported medicines while strengthening local pharmaceutical production.

Jobs Expected and Jobs Created

Between 2014 and 2024, the Cameroon Investment Promotion Agency approved 453 private investment projects. Although investors announced 180,000 jobs, only about 40,000 were created, an implementation rate of 22 percent. These figures cover all sectors, as healthcare-specific statistics remain limited. The Yaoundé pharmaceutical complex is expected to create more than 4,000 direct and indirect jobs by 2035 while supporting partnerships with local universities.

Benefits That Require Stronger Policies

FDI can modernize healthcare services, but significant challenges remain. Profits are often repatriated to investors’ home countries, and health investments tend to concentrate in major cities. Cameroon also remains dependent on foreign suppliers for medicines, medical equipment, and some technologies. Stronger policies promoting technology transfer and local expertise are therefore essential.

The Strategic Role of Public Institutions

The Ministry of the Economy, Planning and Regional Development coordinates the national investment strategy, while the Investment Promotion Agency operates a digital one-stop service for investors. Public incentives can encourage pharmaceutical manufacturing, clinical research, and investment in underserved regions. The Yaoundé pharmaceutical project reflects this effort to combine industrial development with universal health coverage.

Conclusion

Foreign direct investment can strengthen Cameroon’s economy by supporting industrial development and creating opportunities for local growth. It can also strengthen the country’s healthcare system by improving healthcare capacity and expanding access to better services. However, these positive outcomes can only be achieved if supported by strong policies that promote local production, technology transfer, professional training, and equitable access to healthcare across the country. Otherwise, its greatest benefits may continue to accrue mainly to foreign investors and already advantaged areas.