Policy Reforms Essential to Unlock Full Potential of Free Trade in Cameroon, CEPI Experts Say

By Boris Esono Nwenfor

YAOUNDE, Cameroon – Experts at a recent panel discussion organized by the Cameroon Economic Policy Institute, CEPI, have indicated that policy reforms are essential in unlocking the full potential of the African Continental Free Trade Area (AfCFTA), as the country embraces free trade.

The panel discussion on December 18, 2024, at Hotel Franco was under the theme “Impact of Free Trade on Sustainable Development.” The event, sponsored by the Atlas network brought together over 42 participants, policy makers, students, experts and entrepreneurs. Panelists included Julie Ngomo (Gender Specialist, FEICOM), Isidore Njinju (Head of Incubator, YIBS) and Sebastiao Sebastien (Entrepreneur) and were moderated by CEPI's founder & executive Director, Henri Kouam.

The event comes on the heels of the publication of CEPI's report that measures the impact of the African Continental Free Trade Area (AfCFTA) and the European Union Trade Agreement (EPA) on the Cameroonian economy.

CEPI is boosting economic development through research, advocacy and events to boost entrepreneurship and free market ideals. After brief refreshments and networking, CEPI’s Free Market Society continued discussions. The new group is comprised of 9 students from three universities.
Free Trade benefits Cameroonians

With millions of Cameroonians poised to benefit from enhanced trade opportunities, the panellists highlighted the transformative potential of the African Continental Free Trade Area, AfCFTA. At the same time, they emphasized the need for targeted reforms to ensure inclusive growth and sustainable development.

In Cameroon, free trade presents both challenges and opportunities for Cameroonians. Julie Ngomo cited research from CEPI, which finds that free trade has supported employment and led to cheaper agricultural products. She stated that free trade will boost demand for products like cocoa and coffee produced in the informal sector, allowing over 3 million people to benefit from higher wages, improved standards of living, and stable employment.

Sebastiao Sebastien noted that while jobs have been created, they have not been significant. Cameroon still needs to reform its business environment and make it easy for businesses to operate while accelerating investment in infrastructure. He also noted a need for policymakers to focus on social development, as access to healthcare and education is vital for achieving sustainable development goals (SDGs).

Isidore Njinju stated that higher wages, a strong manufacturing base, and improved efficiency in agriculture are just a few of the many benefits of free trade. However, moving away from the protectionism that came about during the colonial era will ensure millions of Cameroonians benefit from free trade.

AfCFTA, a game-changer

The African Continental Free Trade Area (AfCFTA) has the potential to position Cameroon as a leading food exporter in the region. According to CEPI’s founder and moderator of the panel, Mr. Henri Kouam, this transformation hinges on creating a conducive legislative and regulatory framework.

Henri Kouam, noted that this will only be possible with a good legislative and regulatory framework that is conducive to strengthening regional economic integration and one that facilitates trade, production, infrastructure development, and the free movement of people, while simultaneously adhering to the FTA guidelines on reducing tariffs and NTBs. This will allow for a more efficient allocation of resources across the region and act as a boost to Central Africa’s agricultural sector.

To fully leverage the benefits of free trade, panelists recommend that at least 1000 - 2000 km of roads should be graded each year and be graded every year, new businesses should be exempt from paying taxes for 3-5 years and efforts should be made to encourage the formalization of businesses by a clever mix of incentives and subsidies.

Henri Kouam noted that the government should accelerate efforts to enforce property rights to encourage producers to invest the increased revenue they will gain from increased intra-African trade into the production process, further improving efficiency.

With the complexities of free trade, the discussions hosted by CEPI underscore the importance of balancing economic growth with social and environmental sustainability. Free trade offers a unique opportunity to transform Cameroon into a competitive player in regional and global markets, but only if the challenges of infrastructure, policy reform, and social development are addressed.

“We have the tools and the potential,” Kouam concluded. “It’s up to us to create an environment were free trade drives not just growth, but sustainable development for all Cameroonians.”