Opportunities for Latvian Companies in West Africa: Cameroon Case

Abstract

The present study addresses the topic of European companies, including Latvian companies, sustainably entering African markets. The actuality of this topic relates to the recession and the decrease in demand in the classical export markets (such as Scandinavia and Western Europe) with which Latvian firms used to trade; this is why the re-orientation of companies to African countries was carried out. Academic research worldwide has conducted many investigations on the specifics of exporting to Africa. The lack of knowledge relating to local African business practices is considered one of the significant barriers. The aim of this study was to mitigate this barrier by exploring real-world situations in African economic sectors. Interviews with relevant African experts were conducted for this purpose. The results showed that East European entrepreneurs, including Latvian entrepreneurs, should first focus on West African French-speaking countries with big seaports (e.g., Senegal, Guinea, Ivory Coast, Benin, Togo, and Cameroon), where Latvian knowledge, professional skills, and products relating to port and transportation infrastructures are in significant demand. A case study was conducted in Cameroon as an example of a good business match with Latvian service providers. The case study also highlighted the nature of Cameroon’s sociocultural dynamics, which are distinguished by the presence of several sociocultural zones, each with its own specific characteristics that need to be taken into account.

1. Introduction

Many countries are seeking new trade partnerships worldwide in order to ensure export development; recent studies have investigated exports to Africa, including the possible risks faced by several countries that are using specific strategies to make new partnerships [1,2]. Several countries have specific interests in their export strategies [3,4], and the selection of various regions in Africa has several useful preconditions for analysis [5]. Researchers must also pay attention to the influence of environmental and food safety aspects [6,7]. Possible new markets [8,9] have to be examined carefully, and there is a need to take into account national and international specifics [10,11] for each export direction. In this process [12], researchers and scientists [13,14] play a significant role through their analysis [15,16] and critical evaluation of the possible solutions. Several detailed research and analysis methods are applied [17,18], highlighting the opportunities for sustainable European—including Latvian—businesses in West African countries, particularly Cameroon, where emerging markets, infrastructure development, and resource utilization can contribute to a more resilient global economy.

The present study addresses the topic of European companies, including Latvian companies, venturing abroad, specifically investigating the question of new overseas exporting directions. The traditional markets where Latvian producers were exporting include Scandinavian and Western European countries. However, recently, various sources and prognostics are predicting a further decline in demand, as well as a recession in the technology industries in these regions [19,20]. One of the newest and most influential European Commission reports, which evaluates EU (European Union) competitiveness in recent years, has signalized purchasing power difficulties in EU markets, the slowing of EU growth, a decrease in EU productivity, and the weakening of domestic demand [21]. In addition, a study from Serbia and Bosnia and Herzegovina [22] shows that fulfilling the requirements of export to EU markets is a difficult challenge for East European companies, including those in Latvia. Summarizing these issues, it can be stressed that due to the reduction in the demand for their exported goods in traditional markets, Latvian producers have been led to look for an alternative market to keep plants operating and to diversify their export directions. Therefore, West African countries have become a good alternative business direction. However, a lack of knowledge about West African economies, business practices, and communication culture has been noted among Latvian entrepreneurs, which blocks them from venturing into these markets. This complex problem has been studied through qualitative interviews with a broad range of experts from West African countries in order to determine the local economic situation, communication culture, and business opportunities and to transmit this information to Latvian entrepreneurs so that they can be more prepared for their venture into this region.

Firm internationalization is a well-studied topic, with the earliest studies, such as the approach of Johanson and Wiedersheim-Paul [23], emerging in 1975. SMEs (small–medium enterprises) increase the degree of international participation through four stages, starting with the lack of regular exports and finishing with overseas manufacturing units. The “Uppsala model” [24] from 1977 has been highly cited; in this model, Johanson and Vahlne proposed a step-wise process for a firm’s internationalization, clearly underlining the importance of business networks. Some other theoretical approaches proposed around the 2000s, such as the study from McAuley in 1999, focus on building business networks as a starting point for internationalization and resource-based approaches, specifically looking at a firm’s resources and capabilities, which could help with its internationalization [25,26]. The latest approaches have offered views on internationalization from the perspective of the application of crucial modern tools like e-marketing, the Internet, and Information Communication Technology (ICT) [27]. The works of Kahiya were chosen to guide our study strategy, dividing the export barriers of a firm into external or internal, highlighting the lack of knowledge surrounding venturing abroad as one of the key barriers [28].

The choice of West Africa was made for multiple purposes, including the general rise in African economies, which mostly remain resilient to global instabilities, having a prognosed average growth of ~4% in 2024–2025 [29]. Many other researchers confirm that Africa is an important continent, playing a role in the future international division of labor [30]. The continent has the potential to forge a new development path, harnessing the potential of its resources [31] and becoming an attractive place for business. In addition, strengthening global partnerships is one of the aims of the African Union Agenda 2063 and the United Nations’ Sustainable Development Goals (Goal 17) [32]. Other reasons and distillation principles were based on language criteria—only French-speaking countries were included. The links between the linguistic ability and international experience of export managers are highly related [33]; therefore, approaching French-speaking African countries using their mother tongue is a competitive advantage for Latvian firms. Only countries in three regions, i.e., Northern, West, and Central Africa, had this requirement. Next, countries were filtered in relation to their access to the sea and developed ports; Latvia has a significant historical maritime heritage, highly professional marine engineers, and a developed port infrastructure, and it produces various metal products that are used in ports, all of which provide a foundation of services, engineering knowledge, and experience that can be proposed to African port countries. In addition, ports play a central role in Africa’s trade, with over 80% of Africa’s foreign trade passing through them. It was stated that out of the three regions, only two of them have a sea coastline—Northern and West Africa. Therefore, Central Africa was excluded from further discussion. Finally, a country’s openness to new players was considered. It appeared that North African businesses still conduct a lot of work with French companies, and cooperation between France and Maghreb is strongly supported. This highlights that it is difficult for Latvian producers to enter these regions due to such strong competition with older European networks. New partners, such as Latvian companies, are welcome from the perspective of the social environment, law enforcement for safety, and the business environment in order to enhance the sustainability of West African countries.

In an increasingly interconnected global economy, enterprises from emerging European markets are actively seeking new avenues for trade and investment. Latvia, traditionally reliant on Scandinavian and Western European markets, faces growing challenges due to economic slowdowns, declining purchasing power, and stringent export regulations within the European Union. As a result, diversification into non-traditional markets has become imperative for sustaining industrial activity and fostering economic resilience.

West Africa, with its rapidly expanding economies, youthful workforce, and increasing openness to new international partnerships, presents a compelling opportunity for Latvian entrepreneurs. Among these nations, Cameroon stands out due to its strategic location, abundant natural resources, and growing industrial and infrastructure sectors. However, despite these prospects, Latvian firms encounter significant barriers to entry, including unfamiliarity with local business practices, cultural differences, and the absence of diplomatic representation in the region.

This study explores the economic and commercial potential of Central African countries—particularly Cameroon—as alternative markets for Latvian enterprises. By employing qualitative interviews with regional experts and business stakeholders, this research aims to uncover key economic drivers, infrastructural needs, and business culture intricacies that influence successful market entry. The findings highlight strategic sectors such as port logistics, renewable energy, agro-industrial development, and digital transformation as viable areas for Latvian engagement.

This study underscores the importance of cultural adaptability, tailored market entry strategies, and institutional collaboration in fostering long-term trade relationships. By addressing critical knowledge gaps and identifying practical pathways for engagement, this research serves as a strategic guide for European, including Latvian, businesses looking to navigate and capitalize on emerging opportunities in West Africa. By addressing the challenges faced by European, including Latvian, entrepreneurs in understanding local African markets and business practices, this article provides insights into fostering sustainable trade partnerships.

2. Materials and Methods

Semi-structured qualitative interviews were conducted (via recorded Internet video calls) to collect information and to determine the general appreciation of the situation. Furthermore, using Cameroon as a case study, information collection, synthesis, and analysis were carried out. Interviews were conducted, including checkboxes for answers and an available space for any free comments after each question. In relation to the research aim of discovering information in order for Latvian entrepreneurs to overcome the barrier of a lack of knowledge regarding the West African market, two surveys were utilized. The first (No. 1) determines the local economic conditions, the state of energy sources, and industrial conditions. The second (No. 2) determines common local business practices, cultural communication traditions, and methods of approaching people. Furthermore, the research survey target audience was predefined as consisting of two major groups. The first group includes African experts, academics, and significant actors, whose contribution to the survey involved describing and explaining African business practices, common business culture, communication specificity, etc. The second major group consisted of African port technical directors, operation managers, and industrial chamber representatives, i.e., personnel working in the ports or in the industrial infrastructure sector. Such personnel usually have professional competences, an engineering background, or an understanding of industrial matters. Interviewing these people is very valuable as they can explain the “real situation in the field”, which, in turn, is important for Latvian producers to understand in order to adapt their strategy accordingly. Questions related to task No. 1 were formulated based on an expert interview with the Latvian Metal Industry Director. Questions related to task No. 2 were formulated based on the academic literature on intercultural business communication and an analysis of scientific publication results. In total, 10 interviews were carried out.

The following difficulties were encountered during the survey: (a) The distance and cultural difference between Latvia and Africa resulted in a negative impact on the accessibility of the respondents and the responding rate. Africa, which is a difficult field to conduct academic research in [34], does not have widespread Internet access (sometimes, respondents were forced to go to their work office to ensure a better Internet connection for the interview or went to a city from their work site in the outskirts (e.g., a respondent from Guinea) and has become a “hard-to-reach” field for appropriate qualitative respondents. A cultural distance also resulted in negative aspects, e.g., a vertical hierarchy, which was explained multiple times by different respondents, whereby the researcher is considered to belong to a lower hierarchical level and cannot directly approach the head of ministries or experts; this should have been performed first by a superior from the Latvian side (University of Latvia or Academy of Science) and only then cascaded down to the researcher. (b) It was discovered that almost no Latvian diplomatic missions, embassies, or consuls existed in Western Africa (NB: at the moment of the research, at the end of 2024 and the beginning of 2025), which did not allow for any serious help from Latvian representatives in this region. (c) The “snowball” approach, i.e., where the sampling plan follows the chains of sociometric relations in the given population [35], was applied after each interview. It did not bring about many results, even though respondents agreed to connect with their colleagues or known experts; in reality, they did not. Therefore, this method did not bring about many limitations in this study. However, another threat to trustworthiness—author/coder fatigue [36]—was observed. To mitigate this, the voice memo recordings of each interview were performed. These recordings highlighted the main aspects of the interview, including insights and patterns of misunderstandings or focus that were present during coding. The author returned to earlier recordings during later interviews in order to keep a “fresh” and maximally objective approach.

3. Results

The survey results show the sectors that are developing most intensively in each target country, primarily investigating the agriculture sector (it was also frequently mentioned by respondents that the methods of land cultivation are still manual, not automatized) (see Figure 1). The information and communication sector was also mentioned several times, which can be attributed to the young and quickly developing population.

The next topic, relating to the most necessary infrastructure objects that need to be built in each target country, showed the dominance of automobile roads (see Figure 2). The necessity to connect multiple cities and populated areas in order to promote a country’s development was frequently mentioned.

Assuming an average budget for an industrial project in each target country, the preliminary findings showed an equal spread of all proposed amounts, as follows: USD 1 million/USD 10 million/USD 20–30 million/USD 100+ million (see Figure 3). This shows the scale of the projects so that Latvian industrials can compare it to their practices and understand the overall picture of target markets; this information may also help in relation to export direction decisions.

Regarding the problems or obstacles mentioned in relation to prohibiting launching a factory in each target country, the most frequently mentioned was an untrained workforce (see Figure 4). A respondent from Guinea (R-6) indicated the very low rate of workers trained to acquire knowledge and become suitable for the job, stating the following: “The main issue is the personnel… this really… we have to get exports for every single special position… you know… Need a lot of training, and out of 10 you will get 1 or 2 good [employee—Auth.]. If you train them, they will be good. But it’s not easy”. Another obstacle that was frequently mentioned was power cuts or simply the power itself (e.g., some respondents mentioned that small plants or manufacturers in their countries are being fed simply from diesel generators due to the lack of a centralized power supply).

As regards the main sources of energy in each target country, the most frequently mentioned were solar (via solar panels for private housing) and oil or gas (see Figure 5). It has been said that oil and gas deposits frequently do not belong to a country and that they are fully equipped and exploited by non-African companies and all production is exported abroad.

For the final topic—the importance of a non-colonial past of the partner country—a contradictory situation can be observed. Respondents were asked to evaluate its importance on a scale from 1 (not important at all) to 10 (very important); the preliminary findings showed there were no answers of moderate importance, e.g., values of 4 or 5 (see Figure 6). Some responses chose the minimal value of 1, saying that “business is business” and promoting the idea that it is time to move forward from past situations. On the contrary, other responses chose the maximal value of 10, with comments stating that this aspect is very critical as new governmental civil servants are young and want equal respect (e.g., in Senegal). A lot of respondents chose a value of 8, which is close to 10 but not so intense an opinion.

It was noted that these research questions have a high potential for further development in future studies.

4. Case Study—Cameroon: Exploring the Areas and Modalities of Economic and Trade Cooperation with Latvia

In a rapidly globalizing world that is characterized by economic interdependence and shifting trade patterns, diversifying international partnerships has become a strategic necessity. This imperative is particularly relevant for economies seeking new avenues for trade and investment. As Latvia explores alternative export markets beyond its traditional European partners, West Africa, and more specifically Cameroon, emerges as a promising option. Like Ivory Coast and Ghana in West Africa, where the Economic Partnership Agreement (EPA) is in force, Cameroon is the only Central African country where the EPA has been ratified and has been in effect since 2014. The Cameroon case study offers Latvian SMEs market diversification opportunities in sectors like digital transformation, energy, logistics, and agro-industry, supported by favorable investment policies and regional access. It also highlights the need for inclusive trade policies, bilateral agreements, and cooperation, promoting development goals and mutual benefit.

With its strategic geographic position and economic dynamism, Cameroon offers valuable opportunities for foreign investors, including Latvian entrepreneurs.

It serves as a gateway to the Central African market, benefiting from abundant natural resources, a young and growing workforce, and expanding infrastructure [37]. Despite these advantages, the country faces structural challenges such as regulatory complexities, infrastructural deficits, and socio-political uncertainties. On the other hand, Latvia, a technologically advanced and innovation-driven economy, can leverage its expertise in sectors like information technology, logistics, and energy to foster mutually beneficial economic ties with Cameroon.

This section presents a strategic analysis of the opportunities and challenges in fostering and developing a dynamic, balanced, and mutually beneficial cooperation between Cameroon and Latvia. Using data and economic and cultural dynamics that are specific to each country [38], it outlines strategic and innovative sectors for collaboration. It also explores potential synergies and provides concrete recommendations to optimize opportunities, establish bilateral institutional and regulatory frameworks to promote trade and investment, develop sustained political and diplomatic dialog, and ensure the effective monitoring of commitments to guarantee lasting benefits for both nations.

The principal conclusions drawn from this case study highlight that Latvian enterprises have substantial opportunities in Cameroon, particularly in sectors such as ICT, port logistics, and renewable energy. However, cultural adaptation, strategic market entry approaches, and partnerships with local entities are essential for sustained success. Moreover, Cameroon’s efforts to enhance its investment climate, coupled with Latvia’s interest in non-traditional markets, set the stage for a dynamic and productive economic relationship. By fostering targeted interventions and strategic collaborations, both nations can unlock significant economic potential and contribute to a more diversified and resilient trade landscape.

4.1. Brief Overview of Cameroon: Strengths, Risks, and Perspectives

As one of the largest economies in Central Africa, Cameroon plays a pivotal role within the Economic and Monetary Community of Central Africa (CEMAC). Its geographic location, economic diversity, and increasing infrastructural investments position the country as a strategic hub for regional trade and integration. This section provides an overview of Cameroon’s economic positioning, highlighting its structural advantages, trade potential, and investment climate, while also addressing the key risks and vulnerabilities that continue to challenge its development trajectory. Cameroon’s potential is shaped by a unique combination of opportunities and constraints. Understanding this duality is essential for identifying viable entry points for investment and policy engagement in the Central African sub-region.

From a descriptive overview, Cameroon has a diversified and strategic economy within the Economic and Monetary Community of Central Africa (CEMAC). In 2019, CEMAC’s total population was estimated at 55.85 million, with nearly half residing in Cameroon. The country also significantly contributes to the regional economy, accounting for approximately 29% of the community’s GDP and holding nearly half of the region’s financial assets.

Its strategic geographic position in the Gulf of Guinea, coupled with its proximity to Nigeria—the largest economy in sub-Saharan Africa with an estimated population of 223.8 million—reinforces its role as a regional hub. Indeed, Cameroon serves as an ideal gateway to an expanded market of over 300 million consumers, encompassing not only CEMAC member states but also neighboring West and Central African countries [39]. Cameroon and Benin are both neighbors of Nigeria and can serve as entry points to its market. However, they belong to two distinct economic communities. Benin is part of the West African sub-region, integrated into frameworks such as the West African Economic and Monetary Union (WAEMU) and ECOWAS (Economic Community of West African States). In contrast, Cameroon is located in Central Africa and is a member of regional organizations like CEMAC (Economic and Monetary Community of Central Africa) and CEEAC (Economic Community of Central African States). Furthermore, the Economic Partnership Agreement (EPA) with the European Union is already fully in force in Cameroon, whereas in Benin, it has yet to be implemented. This gives Cameroon a clear comparative advantage as a gateway for Latvian small- and medium-sized enterprises to introduce their goods and services into the Central African sub-region and Nigeria.

With its growing infrastructure network, including modern ports such as Douala and Kribi, and an expanding logistics system, Cameroon is well-positioned to play a key role in regional and international trade exchanges. Additionally, its economic diversity, which is based on key sectors such as agriculture, energy, mining, and services, makes it a growth driver for the entire region.

Moreover, Cameroon offers an attractive environment for foreign investors by ensuring equal treatment, protection against expropriation, and the freedom to transfer capital. Fiscal incentives include tax exemptions on exports, local raw material purchases, and import duty reductions. Special regimes are in place for new businesses, firms, strategic large enterprises, free-zone companies, and those reinvesting profits, offering tax and customs advantages over a period of several years. Finally, administrative measures such as the one-stop shop and international arbitration facilitate investments and ensure enhanced legal protection.

However, significant challenges remain, including corruption, security instability in the anglophone regions, and, in Northern Cameroon, dependence on raw materials, as well as an imperfect institutional framework (see

Table 1. Economic strengths and weakness of Cameroon in 2025.

Strengths	Weaknesses	Government Corrective Measures
Extended political stability. Affordable labor force. Abundant natural resources (agriculture, oil, mining). Developing gas capacities. Strong hydroelectric potential. Diversified export-oriented economy. Infrastructure projects (ports, roads, railways) supported by bilateral and multilateral partners. Monetary stability through the CFA Franc pegged to the Euro. Major player in CEMAC and ECCAS (Economic Community of Central African States). Foreign investors can hold 100% ownership of businesses.	Complex business environment (167th out of 190 in the 2020 Doing Business ranking). Poor governance and corruption. Insufficient public revenue mobilization (14.5% of GDP in 2023). Infrastructure deficits (transport, energy, water access, sanitation). Insecurity in the North due to Boko Haram terrorist threats from neighboring Nigeria. Anglophone crisis in the Northwest and Southwest regions with separatist tendencies. Uncertainty regarding the outcome of the October 2025 presidential elections and the potential succession of President Paul Biya, who has been in power since 1982. Dependence on food imports and exposure to external shocks.	Prioritization of investments in key sectors—transport, agro-industry, tourism, and rural development. Infrastructure development efforts, energy supply improvement, administrative procedure simplifications. Creation of free zones offering fiscal and economic benefits to exporting companies (tax exemptions, unrestricted currency transfers, tax reduction after 10 years, etc.). Cameroon’s 2019 “Major National Dialogue” recommended special status for anglophone regions, promotion of bilingualism and unity, a Disarmament, Demobilization, and Reintegration program for ex-combatants, and a major reconstruction plan for conflict-affected areas. In view of the presidential elections scheduled for October 2025, opposition parties and civil society organizations have reiterated their call for measures to ensure a free, transparent, and inclusive electoral process, in accordance with democratic principles and international best practices.

Source: created by Timothée Tabapssi based on mentioned sources [40,41] and personal expertise.

below). In summary, Cameroon presents economic opportunities due to its dynamism in key sectors (see

Table 2. Trends in Cameroon’s key indicators, as a percentage (%).

Economic Indicators	2022	2023	2024 (f)	2025 (f)
GDP growth	3.6	3.8	4.1	4.4
Inflation, average consumer prices	6.3	7.4	6.3	4.3
Budget balance/GDP	−1.1	−0.9	−0.5	−0.2
Current account balance/GDP	−3.4	−2.7	−1.9	−1.6
Public debt/GDP	45.3	41.8	41	35.4

(f): forecast. Source: created by Timothée Tabapssi based on reports of the African Development Bank Group (AfDB) and personal expertise [42,43].

below), but security risks, political uncertainties, and its continued dependence on raw materials hinder its potential.

Building on this macro-level overview, the following section presents a more detailed economic dashboard for 2025. It outlines Cameroon’s current economic performance, identifies sector-specific strengths and weaknesses, and examines the government’s ongoing efforts to tackle structural challenges through targeted reforms and corrective measures.

4.2. Cameroon: Economic Dashboard

This section of the paper provides an analysis of Cameroon’s economic strengths and weaknesses in 2025, highlighting the challenges that the country is facing, as well as the government’s efforts to address them through targeted corrective measures.

The significant strengths of the country, such as political stability, a diversified export-oriented economy, and abundant natural resources, are outlined, along with the serious challenges faced, including a complex business environment, governance issues, and regional security threats. In response, the government is pursuing corrective measures like prioritizing investments in key sectors, enhancing infrastructure, and establishing free zones to incentivize exports and improve the overall economic performance.

4.3. Cameroon’s Key Economic Indicators

Cameroon’s key economic indicators are presented in Table 2. They suggest a modest but positive economic trend, with GDP growth and declining inflation rates projected to improve in the coming years. Additionally, fiscal consolidation appears to be taking place, as is evidenced by the decreasing public debt-to-GDP ratio, although the current account remains in deficit.

5. Investment and Cooperation Opportunities Between Cameroon and Latvia

Despite limited trade between Cameroon and Latvia to date, both countries possess complementary strengths that can foster mutually beneficial partnerships. By leveraging Cameroon’s strategic location and market access with Latvia’s technological and industrial expertise, there is significant potential to deepen economic ties. This section explores key sectors where cooperation could be expanded, starting with digital transformation.

The current descriptive overview shows that there is almost no Cameroonian export to Latvia; in reverse, Latvia exported goods of around EUR ~17 million in value to Cameroon in 2024, corresponding to the following groups of products (Top 5):

• Cereals (largest proportion of the whole volume);
• Articles of iron or steel;
• Machinery and mechanical appliances, e.g., boilers and parts thereof;
• Pharmaceutical products;
• Electrical machinery and equipment and parts thereof [44].

Cameroon offers privileged access to regional and international markets, benefiting from CEMAC’s market of 50 million consumers, as well as preferential trade agreements with the European Union [45]. Taking into account the strengths, opportunities, and comparative advantages of both countries, a strategic partnership between Cameroon and Latvia could generate significant mutual benefits and strengthen their economic and diplomatic relations.

From an analytical perspective and given the trade imbalance and the underexplored commercial relationship, there is considerable potential for deeper economic cooperation. Both countries have complementary strengths that can be leveraged through strategic partnerships—particularly in the fields of technology, agriculture, and infrastructure. Strengthening trade and investment ties in these sectors would not only diversify Cameroon’s international partnerships but would also give Latvian enterprises a competitive entry into the Central African market.

5.1. Digital Transformation

In 2023, approximately 35% of Cameroon’s population had Internet access, with significant disparities between urban and rural areas [46].

Smartphone use stands at 47%, presenting an opportunity for mobile-based digital solutions.

Cameroon aims to digitize 100% of its public services by 2030, as well as increasing the ICT sector’s contribution to GDP from 6% in 2022 to 15% [46]. By digitizing all public services and expanding the ICT sector’s share of GDP, Cameroon could enhance governmental efficiency, drive innovation, attract investments, and stimulate broad economic growth.

Latvia’s expertise in e-governance [47,48] can support Cameroon in implementing digital platforms that enhance service delivery and transparency.

Strengthening ICT infrastructure, including fiber optics, data centers, and cybersecurity [49,50], is crucial for Cameroon’s digital transformation.

Cameroon is developing an artificial intelligence (AI) strategy, focusing on health, agriculture, education, and governance, where collaboration with Latvia could provide cutting-edge technological support [51]. It could also foster skills development and innovation within Cameroon’s tech sector, accelerating digital transformation and boosting its global competitiveness.

5.2. CO₂ Emission Reduction

Latvian governmental programs for CO₂ emission reduction targets [52] include waste sorting and recycling initiatives, electrical vehicle programs, and a reduction in the construction sector [53,54]; these should be of significant interest to Cameroonian authorities.

Automatization is applied to industrial solutions to diminish emissions during operative work on production plants (e.g., automatic welding robots that replace a labor welder and significantly reduce gas consumption; replacing petrol trucks in the transport of dry bulk with automatized electric conveyor lines); these processes may be shared as good practices with Cameroonian industrial actors. As a positive result of these reduction actions, indicators of CO₂ emissions have reduced in Latvia in the period from 2000 to 2020 by an annual average of 1.48 thousand t for biomass used as a fuel and by an average of 4.7 thousand t when biomass is not used as a fuel. This reduction was not permanent; in the period from 2000 to 2007–2010, it grew. Then, from 2011 to 2020, it descended [55]. Latvia’s automation expertise applied to industrial solutions can help Cameroon modernize its production processes, leading to reduced operational costs, improved energy efficiency, and enhanced global competitiveness.

5.3. Agro-Industry, Food Processing, and Extractive Industries

Technology partnerships with Latvia can modernize agricultural value chains, reducing post-harvest losses and increasing export value. The Agricultural Value Chain Development Project (AVCDP) in Cameroon (EUR 115.08M) aims to boost rural infrastructure and strengthen agricultural value chains to enhance food security, create jobs, and modernize agriculture by 2025.

Cameroon can access Latvian agricultural machinery, cold storage facilities, and irrigation technologies to boost production. Agricultural, mechanical, and electrical machines play a vital role in Cameroon’s economic development. In 2022, imports in this category accounted for 10.6% of the total import spending, amounting to XAF 520 billion (EUR 793.5 million) and reflecting the country’s growing technological capacity [56].

The country possesses abundant natural resources such as oil, bauxite, iron, gold, cobalt, uranium, and diamonds, offering investment opportunities in extractive industries [57].

Latvia can source raw agricultural products from Cameroon, diversifying its supply chain while leveraging Cameroon’s competitive labor force. Cameroon’s exports increased from 4,308,000 tons valued at XAF 1580 billion (EUR 2,410,042,862) in 2020 to 5,076,000 tons valued at XAF 1,823 billion (EUR 2,780,701,352) in the first half of 2021 [58].

5.4. Industrial and Economic Zones

Cameroon offers multiple industrial zones, which are managed by the Mission for the Development and Management of Industrial Zones (MAGZI) [37], that act as a preview for Latvian entrepreneurs in relation to manufacturing, processing, and agro-industrial activity, technology hubs for innovation, and logistics hubs in Douala and Kribi, facilitating potential Cameroon–Latvia imports and exports.

According to a report on the economic, social, and financial situation and prospects of Cameroon covering the 2022 fiscal year [59], as well as some other sources [60], the growth of the non-oil sector in Cameroon was projected at 4.2% in 2024 and at an average of 7.6% between 2024 and 2026. To achieve this objective, the Cameroonian government is relying, among other measures, on improving energy supply with the progressive commissioning of the Nachtigal dam, which has a capacity of 420 MW; it is also relying on strengthening the electricity distribution network. This improvement in energy supply would foster an increase in the production capacities of factories in industrial zones (e.g., Bassa (150 ha, Douala), Bonabéri (192 ha, Douala), Yaoundé-Sud (316 ha, Yaoundé), Banengo and Koptchou (28 ha, Bafoussam), Ngaoundéré (115 ha), Djamboutou (90 ha, Garoua), Nkwen (44 ha, Bamenda), Ombé (133 ha, Tiko), Koumé-Bonis (105 ha, Bertoua), and Mandjou-Kano (120 ha, Bertoua)), supporting the dynamism of manufacturing industries.

5.5. FDI Conditions, Procedures, and Support

Foreign investors enjoy the freedom of establishment and can hold 100% ownership of businesses [41]. Cameroon provides attractive fiscal incentives, including VAT exemptions on strategic equipment and tax deductions for new businesses.

Companies must fulfill some administrative requirements; however, business registration has been simplified, allowing companies to be established within three days through one-stop business registration centers [61].

A lot of Cameroonian state agencies and financial institutions are supporting investments and securing bank environments, as follows:

• Investment Promotion Agency of Cameroon (API): Facilitates foreign and domestic investment through advisory and administrative support services.
• Public Procurement Regulatory Agency (ARMP): Ensures transparency and fair competition in public contracts.
• Tenders Info and DgMarket: Online platforms providing access to national and international business opportunities.
• Financial institutions:

  ○

  Afriland First Bank: Offers specialized banking services, including project financing and investment credit.

  ○

  International Finance Corporation (IFC): A World Bank Group entity providing financial support to private-sector projects in Cameroon.

The important question of Cameroonian partner credibility verification for European (and Latvian) companies can be addressed by contacting the Chamber of Commerce, Industry, Mines, and Crafts of Cameroon (CCIMA) [62]. One can find useful information on the business environment in Cameroon, a database of Cameroonian companies, economic outlook and situation reports, and details on procurement processes, as well as a variety of online services.

These institutions collectively ensure that investors receive adequate support for establishing and expanding their businesses in Cameroon [41]. They offer a wide range of services, including expert advisory and financing options, as well as access to both national and international business opportunities.

6. Recommendations

The following recommendations aim to strengthen mutually beneficial cooperation between European countries including Latvia and Cameroon by supporting sustainable development, diversifying economic opportunities, and fostering a deeper cultural and educational understanding. The establishment of strong institutional frameworks and monitoring mechanisms will ensure the sustainability of economic and trade relations.

6.1. Adaptation to Cultural Contexts

• In-depth studies of local business cultural economy

To fully understand local realities, it is essential to conduct detailed, multidimensional studies of sociocultural dynamics. This includes analyzing values, traditions, and social structures that influence behavior in key economic sectors [38,63]. Such studies help identify specific needs, opportunities, and challenges. For example, mapping value chains with consideration for traditional practices can lead to more tailored and sustainable interventions.

Cameroon is home to several distinct sociocultural zones, each with unique characteristics—the northern region is predominantly Muslim; the south is largely inhabited by the Fang–Ewondo–Beti group; Grassfields is home to the Bamiléké; and the English-speaking Northwest and Southwest are shaped by Anglo-Saxon traditions. A more in-depth study of these regional dynamics is recommended to guide culturally sensitive economic strategies.

• Strengthening cultural exchanges

Building cultural bridges is key to enhancing bilateral partnerships. Organizing joint economic and cultural forums can bring together entrepreneurs, artists, researchers, and academics. These events—featuring exhibitions, discussions, workshops, and artistic showcases—will celebrate cultural diversity, create business opportunities, promote local talent, and strengthen mutual understanding. Such efforts support both trade and diplomatic relations.

• Intercultural communication and training

Training in intercultural communication enhances the effectiveness of economic and diplomatic engagements. Programs should raise awareness of local cultural norms, communication styles, and institutional protocols. Practical methods such as workshops, role-plays, and expert insights can enrich learning. These training practices will prepare diplomats, investors, and trade representatives to engage respectfully and effectively with local communities. Ongoing support should be offered to adapt strategies to evolving cultural and economic contexts.

6.2. Financing and Support

• Mobilizing European and multilateral funds: Exploring opportunities offered by institutions such as Horizon Europe, the European Development Fund (EDF), and other multilateral partners for high-impact projects.
• Creating a Latvia–Cameroon bilateral fund: Establishing a joint financing mechanism targeting strategic sectors such as sustainable agriculture, renewable energy, and cultural and creative industries.
• Facilitating public–private partnerships (PPPs): Encouraging private investors from both countries to collaborate in structuring projects through tax incentives and institutional support.

6.3. Communication and Visibility

Establishing a Latvian Economic Office in Cameroon and promoting cultural and educational exchanges

• Create a permanent platform to promote economic exchanges, support businesses, and facilitate institutional communication between both countries.
• Develop academic mobility programs, including scholarships and university exchanges for students and faculty.
• Support joint cultural festivals to showcase each country’s heritage and boost tourism.
• Encourage partnerships between educational and technical institutions to foster skill transfer.

6.4. Negotiating a Cooperation Framework Agreement and Establishing Diplomatic Relations

• Negotiate a comprehensive agreement to define the foundations of diplomatic, economic, trade, and cultural relations. The agreement should identify priority areas and include mechanisms for monitoring and evaluation.
• Establish a Latvian embassy or consulate in Cameroon, and vice versa, to provide an official diplomatic presence and consular services.
• Appoint economic and cultural attachés in both countries to promote bilateral relations.
• Strengthen dialog through high-level meetings among sectoral, political, diplomatic, and economic leaders to assess progress and explore new opportunities.

7. Discussion

The economic and trade cooperation between Latvia and Cameroon could represent a remarkable example of strategic partnership in a globalized world, which could be useful for other European countries in relation to the sustainable development of all involved in this cooperation. By leveraging their respective strengths, these two nations can pave the way for profound and mutually beneficial transformations in key sectors.

The potential for collaboration in sectors such as renewable energy, agro-industrial development, and digital transformation underscores the importance of sustainability in fostering long-term, equitable growth for both nations. The research also emphasizes the need for tailored strategies that respect cultural contexts while promoting green technologies and reducing environmental footprints, making it a valuable contribution to the journal’s focus on sustainable development and cross-border collaboration.

Digital transformation, which is a cornerstone of this partnership, presents an unprecedented opportunity to modernize public and private infrastructures, improve access to essential services, and drive innovation. By relying on Latvia’s advanced technological expertise, Cameroon can accelerate its digitalization process, particularly in areas such as e-government, cybersecurity, and artificial intelligence. This technological leap promises not only to reduce urban–rural disparities but also to create thousands of jobs and strengthen economic resilience.

Renewable energy is another strategic area of collaboration. By combining Latvia’s green technologies with Cameroon’s vast natural resources, this partnership can contribute to sustainable electrification, particularly in rural areas. The energy transition will help reduce dependence on fossil fuels while meeting international climate commitments, offering substantial environmental and economic benefits.

The socio-economic impacts of this cooperation are also significant for both countries. Cameroon will benefit from inclusive growth through optimized agricultural value chains, the creation of new business opportunities, and improved living conditions. Meanwhile, Latvia will gain a strategic market for its technological innovations and exports in Central Africa, consolidating its position as a dynamic European economic player.

Cultural and educational exchanges play a fundamental role in strengthening this bilateral relationship. By promoting academic mobility, intercultural training, and joint initiatives, both countries can deepen mutual understanding and build a solid foundation for lasting and harmonious relations.

Such a partnership will likely offer an inspiring vision of inclusive and balanced development, founded on innovation, sustainability, and cultural collaboration. By fully seizing these opportunities and overcoming challenges together, Latvia and Cameroon could not only transform their respective economies but also serve as a model for other nations seeking to establish fruitful cooperation in a constantly evolving world.

8. Conclusions

Latvian companies are re-orienting their trade directions towards the African continent due to a recession in their classical markets, including Scandinavia and West Europe. They face a lack of knowledge of African business culture and economic conditions, which is a barrier to their venture into local markets. In order to overcome this barrier, interviews with local experts and industry actors were conducted in relation to African business practices and economic conditions. The interviews determined that the potential for Latvian entrepreneurs in African countries (West African French-speaking countries with big seaports) is of an implicit nature—it is not introduced on the surface yet can be understood from the context. Commercial opportunities for the firms can reveal the current state of things, such as the economic situation, and can be evaluated by each interested Latvian or European entrepreneur separately.

This case study of Cameroon highlights the details of the local business environment with examples of potential solutions for specific Latvian and other European countries, including e-governance and CO₂ emission reduction systems. It also underlined the important role of understanding Cameroonian business communication and cultural contexts, which are distinguished by the co-existence of several sociocultural zones—Muslims, the Fang–Ewondo–Beti group, Bamiléké, and English-speaking regions with Anglo-Saxon culture and traditions.