(Business in Cameroon) – Cameroon’s Minister Delegate to the Minister of Economy, Paul Tasong, recently reported that the government is discussing with development partners to boost the production capacity of key agro-industrial companies. Particular focus is on the Cotton
Development Corporation (Sodecoton) and the Yagoua Rice Farming Development and Modernization Company (Semry), both located in northern Cameroon. The Cameroon Development Corporation (CDC), the second-largest employer in the country after the central government, and Pamol Plantations PLC, in the southern part of the country, are also included in the talks.
The Minister explained that these efforts are part of the Integrated Agricultural, Pastoral, and Fisheries Import Substitution Project (Piisah), although the identities of the development partners providing funding remain undisclosed. However, it is known that Sodecoton, in which the government holds 59% of the shares, has been working to expand its operational capacity for several years. The company, which supports around 200,000 farmers, is building new storage facilities, an 11th cotton ginning plant, and a new oil mill. These investments aim to increase cotton production to 600,000 tons by 2030, up from 350,000 tons.
Both CDC and Pamol Plantations, where the government holds 100% of the shares, have faced challenges due to the ongoing socio-political crisis in the North-West and South-West regions since 2016. In 2019, Pamol reported a loss of CFA40 billion since the start of the separatist conflict in these regions. The company had to halt its operations due to intense clashes between the regular army and separatist militants.
The conflict has also hindered CDC’s investments, which have been ongoing since 2015. The company planned to acquire a palm oil production unit with a capacity of 30 tons per hour, build a soap factory, and expand its plantations on 500 hectares in the Bakassi Peninsula. However, the crisis led to a halt in activities, with some of CDC’s plantations being turned into training camps by separatist militants. From 2019 to 2021, the company accumulated losses of CFA38.7 billion, according to data from the Commission for the Rehabilitation of Public and Parastatal Enterprises, which is now part of the reformed National Investment Corporation (SNI).
Despite resuming operations in 2020, the CDC has lost about 5,000 jobs out of 22,000. By June 2023, the company had CFA35 billion in salary arrears and owed CFA26.7 billion in social debt to the National Social Security Fund (CNPS). In 2019, CDC had already estimated its financing needs at CFA29 billion to fully restart its operations.
Semry, which supports around 20,000 rice farmers in northern Cameroon, produces just 100,000 tons of rice annually, while the country often imports 800,000 tons. After a board meeting in early 2024, Semry’s leaders aimed for a production of 180,000 tons in 2024, largely relying on support from the Ministry of Agriculture and Rural Development (Minader). This support comes through the Logone Valley Investment Development and Management Project (Viva Logone), funded by the World Bank.
