(Business in Cameroon) – In 2023, foreign products accounted for 23.7% of Cameroon’s domestic market. This marks the highest level in seven years, according to a report by the Competitiveness Committee. The report highlights the ongoing struggle of local producers to capture a larger share of the domestic market.
The penetration rate of foreign products was just 20% in 2017, but it gradually increased, reaching 23% in 2019. However, it dipped below 20% in 2020, likely due to COVID-19 border closures. Once international trade resumed in 2021, the rate climbed back to 20%. The upward trend continued, reaching 23.2% in 2022 and 23.7% in 2023.
The Competitiveness Committee emphasized that the domestic market penetration rate is often overlooked in economic discussions, overshadowed by more popular indicators like GDP, employment rates, and trade balances. However, it is crucial to understand how competitive a country is in the global market. This rate also sheds light on a country’s reliance on imports and the health of its local production sector.
The rise in foreign product penetration coincides with the government’s import substitution policy, which aims to reduce imports by promoting local production through tax and customs incentives. Despite these efforts, foreign products continue to take a larger share of the market.
