The Regulation of Corporate Governance Practices in Cameroon: Challenges and the Way Forward

Abstract

The regulation of corporate governance practices in Cameroon is shaped by the country’s legal framework, including OHADA Laws and national laws promoting transparency and accountability, amidst challenges of governance quality and evolving business contexts. Key legal provisions aim to mitigate risks from ownership-control separation and enhance ethical operations, but implementation gaps and weak governance mechanisms persist. This article investigates the prospects and challenges in regulating corporate governance in Cameroon, focusing on how existing frameworks support or hinder good governance practices, and the effects on corporate performance and stakeholder trust. The main objective is to evaluate Cameroon’s corporate governance regulatory environment, identifying key issues and opportunities for reform and improvement. The study employs a qualitative methodology, including document analysis of legal texts, corporate governance codes, and relevant reports, complemented by interviews with regulatory authorities, corporate leaders, and experts. Findings reveal that while Cameroon has established important governance regulations (e.g., OHADA law, transparency laws, regulatory bodies), challenges include enforcement weaknesses, limited board diversity, underdeveloped self-regulation cultures, and inadequate integration of sustainability practices. The governance landscape is improving with reforms, increased awareness, and technological advancements, but gaps remain. The study concludes that strengthening enforcement, promoting board effectiveness, and integrating ESG criteria are critical for advancing corporate governance in Cameroon’s dynamic economic environment. It ends by recommending the need of enhancing regulatory oversight and compliance mechanisms; encouraging adoption of the Cameroon Code of Good Corporate Governance; fostering capacity building for corporate leaders; leveraging technology for transparency; and promoting stakeholder engagement to improve accountability and sustainability.