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Analysis of Agri-Food Trade Structures

To Promote Agri-Food Trade Networks

In the Islamic Countries

91

Another important trade flow is in palm oil which has changed over time. In 2005, palm oil was

Cameroon's most exported product to the entire region with values of 6.260 in millions of USD

traded, but by 2016, palm oil had become third most imported product from Gabon. Intra

CEMAC trade flows of palm oil in Cameroon have been impacted by stagnant productivity in the

sector, and absence of appropriate government responses. As of 2014, “no fertilizer

manufacturing plant existed in the country, thus there is heavy reliance on imports with no

subsidy in the cost of inputs and most producers record meagre yields in their plantations”.

56

On the other hand, the consistent success of exports in edible products of animal origin reflects

in part how Cameroon’s livestock sector is quickly transforming into a “more cattle-oriented,

market-orientated system which is an important source of revenue for about 30% of the rural

population.”

57

While organized around traditional smallholders, the Cameroonian livestock

industry depends on a well-structured and longstanding market system to facilitate trade.

Overall, the trade between Cameroon and its CEMAC counterparts is in most cases

underestimated. While Cameroon belongs to the CEMAC and is thus subject to a formal RTA that

seeks to foster greater formal trade, the informal trade is a non-negligible element of trade

networks accounting for 96% of official trade in agricultural and horticultural products in

2008.

58

These trade trends are attributable to a range of factors of which non-compliance with

tariff and non-tariff barrier policies, is the most salient.

In addition to being the primary trading partner for each member state Cameroon is also one of

the lead exporters within the informal trade networks.

59

Trade flows between member

countries are often unaccounted within national accounts, distorting reported values of inter-

regional trade.

60

In their research on informal cross-border trade within the CEMAC region,

Nkendah, Nzouessin and Njoupouognigni find that in 2008, 37 billion CFAF (69 million USD)

worth of agriculture and horticultural products were exported to the CEMAC region. Broken

down by a select number of countries in the CEMAC, informal trade within Central Africa

amounted to 4.5 billion CFAF (8.5 million USD) to Gabon informally, 17.9 billion CFAF (33

million USD) to Guinea, 2.9 billion CFAF (5.4 million US) to Congo and 1.6 billion CFAF (3 million

USD) to the Central African Republic.

61

Notwithstanding the barriers to cross-border trade that curtail the impact of RECs, the

government has taken steps towards developing a more robust agricultural policy that can fulfil

its priorities and mobilize its potential to become a regional hub. These efforts include the

Agricultural Value Chain Development Project (AVC-DP). The project has a vision, outlined in

the 2010-2020 Growth and Employment Strategy Paper (GESP) that focuses on three pillars: (i)

growth, (ii) employment, (iii) governance and strategic management of the state.

62

To

implement this project the government has focused on developing value chains for plantain,

pineapple and palmoil through 100 kmof rural roads, 30 shops, 15 rural markets and laboratory

56

Raymond N. Nkongho et al. (2014).

“Strengths and weaknesses of the smallholder oil palm sector in Cameroon”, O

CL, 21:2,

D208

57

Pamo E. T. (2008). Country Pasture/Forage Resource Profiles CAMEROON. Tech. Rep., Food and Agriculture Organization

of the United Nations.

58

Nkendah, R., C. B. Nzouessin, and M. Njoupouognigni. (2014).

Estimating the Informal Cross-Border Trade in Central Africa.

Nairobi: African Economic Research Consortium.

59

Ibid.

60

Ibid.

61

Ibid.

62

African Development Bank. (2015)

Agricultural Value Chain Development Program- Appraisal Report

. Tunis: ADB.