Thanks to its market of over 1.2 billion people, the African Continental Free Trade Area (AfCFTA) is today a great opportunity for Cameroon to improve its finance and digital sectors
By Boris Esono Nwenfor
YAOUNDE, Cameroon – The African Continental Free Trade Area (AfCFTA) was enforced in January 2021 as a key initiative of the African Union to create a single market for goods and services across the African continent to boost intra-African trade and investment, create jobs, reduce poverty and increase economic growth.
Thanks to its market of over 1.2 billion people, AfCFTA is today a great opportunity for Cameroon to improve its finance and digital sectors. With this in mind, the Nkafu Policy Institute, a think tank of the Denis and Lenora Foretia Foundation, organized an operational working session on Wednesday, April 24, 2024, under the theme: “Impact of the African Continental Free Trade Area on Cameroon’s Digital and Finance Sectors.”
“The aim was to assess the impact on digital and financial sector in the implementation of the African Continental Free Trade Area. AfCFTA we know is a market of above 1.3 billion people but there is limited infrastructure to facilitate trade between countries,” said Dr Jean Cedric Kouam, Director of the Economics Affairs Division and Head of Fiscal and Monetary Policy Sub-section at the Nkafu Policy Institute.
“We think that developing the digital space can contribute to boosting Cameroon’s participation in AfCFTA. It was about discussing the challenges that our country is facing, and also sharing some recommendations that can help policymakers to improve in this sector.”
By ratifying the agreement, Cameroon recognizes the need for its implementation within the established timelines. However, the current finance and digital sectors may pose a challenge to the successful implementation of the African Continental Free Trade Area (AfCFTA).
Dr Jean Cedric Kouam added: “We need to facilitate access to the internet because statistics from the National Institute of Statistics show that only 12.7 million Cameroonians have access to the internet. We need to improve in this sector because most of the trade can be done through digital platforms. The issue of electricity supply has to be improved upon too. We are also too dependent on Western countries for our optic fibres. We also need to improve on the aspect of cyber security.”
“The population needs to be educated in digital trade. Our financial sector is more developed than other CEMAC countries but we know there is still more to be improved upon. Access to finance is a challenge to our entrepreneurs and most of them don’t have a bank account. We need to improve that and facilitate access to bank accounts so that many entrepreneurs can go to the bank and have loans that they want to use for their businesses.”
Innovative financial instruments such as blended finance, green bonds, trade finance facilities, and mobile money, may offer an opportunity to address some of the financial challenges facing entrepreneurs but a lot needs to be done on the digital side.
Victor Tibue, Department of American and Canadian Affairs at the Ministry of External Affairs, MINREX said: “With the digital, it touches on both the economy, social, security and trade and these are both interlinked. They do affect the livelihood, peace and cohesion that live in each of these countries.”
“The AfCFTA only comes to reinforce that will and desire for these countries to ensure a good way of running affairs. Given that the AfCFTA is equally projected to bring in progress, not only for Africa, but it is a blueprint for the world, as it will stand as the biggest grouping in terms of trade. It is a good thing that comes in at the right time.
