Story, Louvier Kindo Tombe
The report was carried out by the Cameroon Economic Policy Institute (CEPI) and focused on the “significant impact of the African Continental Free Trade Area (AfCFTA) and the Economic Partnership Agreement (EPA) on the Cameroonian economy”.
“What our report found is that these trade agreements are going to cause our GDP to increase, they would improve employment, and attract investment, says CEPI Director Henri Kouam.
He was speaking during the press conference organized at Mansel Hotel which brought together policymakers, academics, entrepreneurs, and students to engage with the findings of CEPI’s latest report, one which evaluates how trade agreements are poised to reshape the economic landscape in Cameroon.
The report projects growth in agricultural and industrial exports to the EU, highlighting the potential for increased market access. It estimates that, between now and 2030, there will be an increase in the country’s GDP by approximately 2.5% if the different trade agreements are respected.
Concerning domestic demand trends, while the EPA is expected to moderately increase domestic demand for various products -0.01% for agro products, 0.59% for industrial products and 0.03% for services, it is feared that the AfCFTA may introduce challenges, particularly for the agricultural and industrial sectors. As such, this dual impact necessitates careful consideration and targeted interventions to support local markets.
“Free trade in these trade agreements is beneficial to the Cameroonian economy but much more have to be done to ensure that our businesses can effectively leverage and benefit from these trade agreements.” Henri Kouam said.
Key recommendations
To fully leverage the benefits of these trade agreements, the CEPI report outlines several strategic recommendations. Key among them is the need to strengthen infrastructure, which is vital for facilitating trade and reducing costs for exporters.
Director Kouam believes that, improving the overall business environment by reducing bureaucratic hurdles and fostering political stability will attract much-needed foreign investment. “No investor would want to invest in a politically unstable country. Cameroon needs to fix the Anglophone crisis and the Biko Harram crisis which are plaguing the nation,” he reiterated.
The report revealed that Cameroon should aim to increase its manufacturing sector’s contribution to GDP to 25%, as outlined in its national development strategy for 2020-2030. This is crucial for reducing reliance on imports and enhancing export capacity, especially in agriculture and processed goods.
CEPI suggests that, a comprehensive national strategy should be created to align with AfCFTA goals, focusing on building credible regional value chains and boosting intra-African trade in intermediate and manufactured products. Implementing effective regulations that facilitate trade, such as simplifying customs procedures and adhering to AfCFTA rules, is essential for smooth business operations.
There is also need for improving transport and logistics infrastructure in facilitating trade flows and reducing costs associated with moving goods across borders.
”These regulations can help maximize the benefits of these trade agreements while safeguarding local industries and promoting sustainable growth,” says Henri Kouam.
