, ,

“Made in Cameroon” and The African Continental Free Trade Area (AfCFTA): Are they compatible?

Key Takeaways

  • The “Made in Cameroon” initiative is a domestic strategy implemented by the Cameroonian government to promote local manufacturing, reduce imports, and enhance economic self-reliance.
  • Cameroon signed the African Continental Free Trade Area (AfCFTA) Agreement on 21 March 2018, and this marked the continuation of the country’s liberalization process for trade in goods and services and participation in the ongoing negotiations to conclude protocols on Competition Policy, Investment, and Intellectual Property Rights, Digital Trade and Women and Youth in Trade.
  • Challenges to the AfCFTA could include market saturation, poor infrastructure, enforcing intellectual property,y and regulatory harmonization.
  • Reforming these areas could allow the AfCFTA to complement the “Made in Cameroon”.
  • Cutting value-added tax for locally-made products like rice, pasta, eggs, sugar, and other homemade products can be reduced or removed entirely to make locally-made products cheaper.

Introduction

The “Made in Cameroon” initiative is a domestic strategy implemented by the Cameroonian government to promote local manufacturing, reduce imports, and enhance economic self-reliance. By prioritizing local industries, “Made in Cameroon” aims to harness the nation’s resources, foster innovation, and enhance the competitiveness of Cameroonian products. From Nextcoffee, Keuni Foods to Aschenti Cocoa, several local businesses are trying to make their mark in Cameroon and abroad.

However, Cameroon signed the African Continental Free Trade Area (AfCFTA) Agreement on 21 March 2018, and this marked the continuation of the country’s liberalization process for trade in goods and services and participation in the ongoing negotiations to conclude protocols on Competition Policy, Investment and Intellectual Property Rights, Digital Trade and Women and Youth in Trade. Parliamentary approval was granted in Law No 2019/010 of 19 July 2019 to authorize the President of the Republic to ratify the Agreement establishing the AfCFTA.

The AfCFTA involves 55 member states of the African Union covering a market of more than 1.2 billion people and creating a huge market for Cameroonian businesses. However, it will equally open the Cameroonian market to competition. It is, therefore, logical for us to understand how will the AfCFTA impact the “Made in Cameroon” policy. This policy brief looks at how the government supports the Made in Cameroon policy and how it will be complemented by the AfCFTA. We provide policy recommendations to ensure continued synergy between both policies, especially as the “Made in Cameroon” policy is seen as an ”import substitution” policy.

Conclusion

The “Made in Cameroon ” strategy and the AfCFTA can be mutually reinforcing if businesses adapt quickly and leverage the current incentives in the AfCFTA to increase productivity. By leveraging the opportunities presented by the AfCFTA, Cameroon can enhance its manufacturing sector, create employment opportunities, and promote economic growth. However, to fully realize these benefits, Cameroon must address the challenges mentioned above and prioritize investments in infrastructure, regulatory harmonization, and intellectual property protection.

Download the full article in English here

 

Share Post
commment
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments