E-commerce growth turns digital trade into tax target in Cameroon

Online commerce is rapidly emerging as both a growth engine and a new tax niche in Cameroon, as revenues from digital platforms surged 18 percent in 2024, according to official data.

The increase was highlighted in a midterm review of the National Development Strategy 2020–2030 (SND20-30), published by the Ministry of the Economy, which points to e-commerce as one of the fastest-expanding segments of the digital economy.

“E-commerce recorded significant growth, with 75 companies trained in 2024, compared with 52 in 2022, and an 18 percent increase in revenue generated by online platforms,” the report said.

Authorities attribute the momentum to targeted institutional support, particularly from the Ministry of Trade, alongside technical assistance from the Commonwealth Secretariat, which has helped small and medium-sized enterprises improve online marketing and access international markets.

e-commerce in Cameroon

Officials expect growth to accelerate further as new platforms, payment solutions and logistics services expand access to digital transactions in a country where cash has long dominated commercial exchanges.

A key constraint to online trade has been limited access to banking services. That gap is now being addressed by telecom-led financial products. MTN Cameroon, through its subsidiary Mobile Money Corporation, recently launched a virtual prepaid card that can be used on both local and international e-commerce platforms.

Built on the expansion of mobile money services, the product targets millions of unbanked Cameroonians who have traditionally been excluded from online shopping and cross-border digital payments.

The logistics side of e-commerce is also evolving. Cameroon Postal Services (Campost) is preparing a return to the market after a brief partnership with pan-African platform Jumia.

During the presentation of the Ministry of Posts and Telecommunications budget to the National Assembly, Minister Minette Libom Li Likeng announced that Campost will launch a new online marketplace, Bolamba, in 2026.

To support the project, the postal operator plans to install two logistics hubs at Douala and Yaoundé airports, on land already allocated by the Cameroon Airports Company (ADC).

Campost estimates its investment at between CFA2 billion and CFA3 billion, as it seeks to capture a share of a market that data firm Statista values at €811.09 million in 2025, or roughly CFA531 billion.

Cameroon tax

As digital trade expands, the government has stepped up efforts to bring the sector into the tax net, viewing e-commerce as a growing source of public revenue at a time of fiscal pressure.

Over the past five years, authorities have progressively tightened taxation of online activities. Since 2020, sales of goods and services carried out in Cameroon through digital platforms as well as commissions earned by intermediaries have been subject to value-added tax.

In 2023, customs duties were extended to imported goods purchased online, a move the Ministry of Finance said was aimed at curbing revenue losses linked to the dematerialisation of transactions.

Further measures followed in 2024, when income generated by individuals on digital platforms from sales, services or shared-economy activities became subject to a reduced 5 percent tax rate under the non-commercial profits regime.

The latest step took effect on January 1, 2026. Under new rules issued by the Directorate General of Taxes, all online platforms generating business in Cameroon without a physical presence are now liable to corporate income tax at a minimum rate of 3 percent of locally generated revenue.

Depending on turnover and activity levels, companies may also be moved to the standard tax regime, where corporate income tax is set at 30 percent of net profit.

For the government, the objective is to broaden the tax base and align digital commerce with traditional sectors. For operators, the challenge will be balancing compliance costs with growth in a market still constrained by infrastructure gaps and consumer purchasing power.

As e-commerce becomes more entrenched in daily life, officials say the sector’s rapid growth leaves little doubt that digital trade will play an increasingly central role in both Cameroon’s economy and its public finances.

Background to e-commerce in Cameroon

E-commerce in Cameroon has evolved from a largely informal, small-scale activity into a growing segment of the digital economy, shaped by structural constraints and policy reform. For years, limited banking penetration, weak logistics networks and low consumer trust slowed adoption, despite strong demand in major cities such as Douala and Yaoundé.

The rapid expansion of mobile money services—led by telecom operators—has been a turning point, allowing millions of unbanked consumers and small businesses to transact online. This shift has aligned with the government’s National Development Strategy 2020–2030 (SND20-30), which positions digitalisation as a driver of economic diversification, private-sector growth and job creation.

At the same time, the rise of digital platforms raised concerns over tax leakage and unfair competition with traditional businesses. Since 2020, authorities have progressively introduced fiscal measures—VAT on online sales, customs duties on imported e-commerce goods and simplified tax regimes for digital incomes—to bring the sector into the formal tax system.

The state has also sought to strengthen domestic capacity through training programmes, public-private partnerships and planned investments in logistics infrastructure, including postal services and airport hubs. Together, these reforms reflect a broader strategy to harness e-commerce growth while expanding the tax base and improving regulatory oversight in an increasingly digital economy.

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