3-5% Locally Produced Flour Should Be Included in Baked Products.

Introduction

Cameroon imports too much wheat flour because it does not produce enough. Last week, the Minister of Commerce, H.E. Luc Magloire Mbarga, met with major cassava flour producers and the owners of large bakeries and supermarkets to encourage more of them to switch to cassava flour. Although an increasing number of bakeries are using cassava flour in their baked goods, such as bread and cakes, this practice remains uncommon. It is imperative to enact legislation requiring the use of other types of flour in small quantities in the production of baked goods. This article analyzes the benefits of legislation requiring that at least 3 to 5 percent of flour-based products be made from cassava, potato, or plantain flour.

1. Legal certainty will stimulate investment in cassava value chains: Once policymakers enact legislation requiring all bakeries to include 3–5% of non-wheat flour in the production of their baked goods, this will give local investors the confidence needed to invest in the cassava value chain. Cassava production in Cameroon is expected to increase from the current 5.5 million metric tons to 10 million metric tons annually, with yields rising from 25 to 30 metric tons per hectare. It is the second most widely cultivated food crop after plantains.

“By enacting legislation requiring bakeries to add 3 to 5 percent cassava, plantain, or potato flour to their products, this will accelerate investment in the sector, as producers will rush to meet the growing demand driven by the law. ”

Furthermore, 55.2% of workers in the informal sector are employed in the informal sector. Therefore, measures to support demand for local agricultural products will encourage investment in this sector and may foster the emergence of new businesses that will contribute to the formal economy. Only registered, formal businesses supply supermarkets and bakeries; a law requiring that 3 to 5% of bread and baked goods contain cassava, plantain, or potato flour will certainly stimulate investment in this sector.

2. Long-term employment for young Cameroonians: While the official unemployment rate is estimated at 3.5%, nearly 90% of workers are trapped in the informal sector. If we want to create decent, long-term jobs, we must facilitate the formalization of farmers’ work. If we mandate the use of wheat-free flour in all bakeries across Cameroon, most young farmers could be encouraged to start businesses or cooperatives. Linking traditional production to processing centers and bakeries will ensure job creation for all Cameroonians.

Legitimizing the use of other flours in the production of baked goods will create a range of jobs unrelated to agricultural work. A company producing 10 metric tons of cassava or potato flour will need administrative assistants, accountants, and so on. The ripple effects on formal employment will foster inclusive prosperity. Every local community or small town has a bakery. By requiring these bakeries to source cassava flour—which is generally locally produced—they will help create jobs within their communities. This will promote social cohesion, reduce social problems linked to economic and social inequalities, and support “Made in Cameroon” initiatives and import substitution. Ultimately, this will reduce regional inequalities and create stronger incentives for entrepreneurship and agribusiness.

3. Simplified Industrialization: Producing cassava flour on a large scale requires expertise and machinery to peel, grate, dry, and grind cassava. Local products will support and encourage the creation of industrial machinery that will be optimized over time to accommodate different types and levels of production. Demand for this machinery is low because few people produce cassava flour. A one-page press release could generate sustained demand and create a new class of entrepreneurs in Cameroon.

4. Accelerating “Made in Cameroon”: Cameroon launched its import substitution strategy two years ago, but it is failing to meet its production targets no matter what. The problem is not so much production, as millions of workers in the informal sector produce mats and fish but are not counted in official statistics.

It is important to note that the Agency for Norms and Standards (ANOR) has already undertaken significant work to ensure the regulation and use of cassava flour in Cameroonian bakeries. A two-page statement from the minister will now create sustainable demand for the millions of workers in the informal sector who grow cassava. And why not extend this initiative to plantains and potatoes to enable these subsectors to develop effectively?

We don’t have three years to convince a multitude of policymakers of the merits of this measure. We already consume bread and dough balls containing cassava. Let’s ensure that every bakery incorporates cassava, potato, or plantain flour into its products. This will create jobs, stimulate employment in the agri-food sector, and generate government revenue.

At the Cameroonian Institute of Economic Policy (CEPI), we are all in favor of limited regulation. Drafting a two-page bill should therefore not take us another three years. However, ensuring that cassava, potato, and plantain flour make up 3 to 5% of each loaf of bread or cake will go a long way toward stimulating entrepreneurship and employment in Cameroon and ensuring that markets respond to positive demand signals.

Author

Henri Kouam

Executive Director