By Jo Foster Douala, Cameroon

A new stock exchange, designed to open up Cameroon to the modern world, is finally open after long delays.

The only problem for Central Africa's first stock exchange is that no companies are yet quoted, so no-one can actually trade any shares.

But that has not dampened enthusiasm.

Cameroon's Prime Minister Peter Mufany Musonge declared the Douala Stock Exchange open and said it was vital for the development of the country.

"It opens us to the world, to the modern world."

"It was an instrument which was lacking from our economic landscape," Mr Musonge said.

"In the central African region we are the biggest economy and we think a financial instrument like this will help the economy of our country and of our region".

Slow process

The Douala Stock Exchange has been a long time coming.

There are sanctions foreseen for rogue traders - these people will be expelled and even face prison Mathurin Ndoumbe Epee Douala Stock Exchange

It is three and a half years since work started, and two launch dates have already come and gone.

For the last year about a dozen staff have been working full time in impressive new offices.

But even now, after the official opening, the general manager Mathurin Ndoumbe Epee can't give an exact date for the start of trading or say how many companies will float.

"Many customers are coming through the banks and lots of companies have been waiting for the opening," he said.

"Now the tool really exists, it's concrete, so we'll see. But we have a firm operation of 10 billion CFA Francs, about $15m."

Tough line

For several years Transparency International - an organisation that monitors corruption - rated Cameroon as one of the world's worst offenders.

Epee: no firm date for the start of trading yet

Many commentators here recognise that as a potential stumbling block for the new mechanism.

Mr Ndoumbe said strict measures were being taken to ensure fairness.

"All operators have signed a code of conduct and they will have to respect it," he said.

"There are sanctions foreseen for rogue traders - these people will be expelled and even face prison".

These efforts will be helped by the OHADA agreement - a common framework for company law and accounting which was imposed on all Central African firms earlier this year.

Raising funds

There is no doubt that companies are desperate for the opportunity to raise more capital and seek investment in the long term - both of which are hard to achieve through the banks.

The government has come to realise that it cannot finance the infrastructure of the country by itself Michael Tamdio, National office of industrial free zones

Helen Tarnoy is the Managing Director of AES Sonel, an American firm which took over Cameroon's privatised electricity company two years ago.

Its staff will become the country's first investors, as under its agreement with the government it has to sell 5% of its shares to employees.

"The assets that we own are old and unreliable and they need to be replaced. One of the sources of finance we're looking at is a local bond," she said.

"We expect, in capital expenditure, to be looking at 50 billion CFAs up to 70 billion in 2004.

"Clearly not all of that is going to be raised on the stock exchange but I hope we can make 20-25 billion on that route".

Progress

Cameroon's Government is also looking to raise money.

Michael Tamdio, the director general of the national office of industrial free zones, says the new stock exchange will allow it to privatise vital parts of the infrastructure.

"The government has come to realise that it cannot finance the infrastructure of the country by itself so it has joined with the private sector and this is one of the elements which will go a long way to long term financing," he said.

In private, some insiders voice concerns about this and many will be watching closely to see if funds raised on the stock market are spent wisely.

Questions are also being asked about brokers and advisers such as: Where will they come from? Who will give training?

Experts from the Tunisian stock exchange have been brought in to nurse Cameroon's newest industry through its infancy.

But for every anxious voice there are many more raised in excitement - as the headline in Cameroon's biggest daily paper declared - serious business begins at last.