Cameroonian businessman Antoine Ndzengue’s delayed mega-tyre project advances with $730 million deal

Cameroon’s long-delayed tyre manufacturing project linked to businessman Antoine Ndzengue has advanced a step further after India’s GHV Infra Projects Limited announced it has received a letter of intent tied to the development of a major industrial facility in the country.

The notice relates to a planned engineering, procurement, and construction (EPC) contract for a greenfield tyre manufacturing plant to be developed by Cameroon Tyres Factory Project SA in Bekoko, an industrial zone on the outskirts of Douala.

Scaling industrial ambition in Central Africa

According to GHV Infra, the proposed project envisions a fully integrated turnkey facility with an annual production capacity of about 7.6 million tyres, positioning it among the largest industrial manufacturing investments in Cameroon’s automotive supply chain. The EPC contract is valued at €630 million ($731.91 million) before taxes, equivalent to roughly CFA413 billion, with an estimated execution timeline of 36 months from the official commencement order.

GHV Infra noted that the transaction is structured as an international contract and is not linked to any related-party arrangement, underscoring its cross-border industrial nature. However, the announcement remains at the letter-of-intent stage, meaning no final contract has been signed, and construction has not yet officially begun.

A project with shifting scale and scope

The development marks another evolution in a project that has been under discussion for several years as one of Cameroon’s most ambitious industrial undertakings.

In 2023, Cameroon Tyres Factory, a subsidiary of Neptune Holding, had outlined plans for a tyre plant in Bomono, west of Douala, then estimated to cost about CFA400 billion ($708.3 million) with an annual output of 4.6 million units and roughly 2,500 projected jobs.

Since then, the scope has expanded significantly. The planned production capacity has risen to 7.6 million tyres annually, while the project location has shifted to Bekoko, a more established industrial corridor near Douala. The updated investment figure also exceeds earlier estimates, reflecting a broader industrial scale-up.

To support the expansion, the sponsors previously pursued a restructuring that merged Cameroon Tyres Factory SA and Cameroon Tyres Factory Project SA, aiming to consolidate production and distribution under a unified industrial structure. The plan also included a capital increase from CFA100 million ($177,077) to more than CFA15.2 billion ($26.92 million) through new share issuance.

Building a local rubber value chain

The industrial strategy is anchored on vertical integration, with planned reliance on domestic natural rubber supply chains. Local producers, including the Cameroon Development Corporation and other rubber growers, have been identified as potential feedstock suppliers.

If fully executed, the plant could reduce Cameroon’s dependence on imported tyres at a time when rising vehicle ownership and logistics demand are increasing pressure on transport and industrial infrastructure.

Financing questions remain unresolved

Despite repeated assurances from project sponsors, key questions persist around financing and execution timelines. Earlier disclosures indicated that Structure Finance Group, a subsidiary of Société Générale, had been mandated to structure a syndicated financing package involving BDEAC, Afreximbank, and several commercial lenders operating in Cameroon.

At the time, Ndzengue stated that financing had been secured and the project had entered its final phase. However, none of the referenced financial institutions has publicly confirmed participation in the funding arrangement. Similarly, while construction was initially projected to begin in late 2023, there is no visible evidence that physical work has commenced.

Expanding industrial footprint

If completed, the project would further extend Ndzengue’s footprint across Cameroon’s economy through Neptune Holding, which operates across fuel distribution, logistics, port services, healthcare, and hospitality.

However, the group’s overall financial strength remains opaque, as it does not publish consolidated financial statements, making it difficult to independently verify its balance sheet capacity relative to its expanding industrial ambitions.