(Business in Cameroon) – Between January and March 2024, Cameroon’s trade balance remained in deficit, continuing a trend seen in its global trade. This is according to the National Accounts report published by the National Institute of Statistics (INS).
“During this quarter, the sharper drop in imports (-9%) compared to exports (-1.8%) did not reverse the structural trade deficit, which, although improved, still represents 2.9% of quarterly GDP.” In other words, the reduction in foreign purchases, which helps preserve foreign reserves, has not been enough to turn the tide on Cameroon’s trade balance. While the situation has improved, the deficit still favors the country’s trading partners.
The decline in imports “is due to reduced imports of products from the agricultural processing industries, other food products, chemicals, and other manufacturing industries,” according to the INS. However, the agency did not directly link this import reduction to the import substitution policy that the Cameroonian government has been implementing since 2021.
This strategy, which may have contributed to the drop in imports, involves higher taxes on certain imported goods and incentives aimed at boosting local production. The goal is to reduce the heavy imports of certain products that strain Cameroon’s foreign exchange reserves.
