(Business in Cameroon) – Cameroon’s rubber production is expected to decline between July and September 2024, according to a forecast report from the Bank of Central African States (Beac). This quarterly report is based on surveys conducted with business leaders, government officials, and other key stakeholders across the Economic and Monetary Community of Central Africa (CEMAC) region.
The report highlights two main challenges contributing to this expected drop in rubber output. First, the deterioration of rural roads due to a lack of maintenance is making it difficult for producers to transport their goods. Second, inadequate maintenance of factories and mills is hampering production capabilities.
Beyond these factors, the situation at the Cameroon Development Corporation (CDC) is also a significant concern. The CDC, a state-owned agro-industrial company, has struggled to fully exploit its rubber fields due to ongoing security issues. This is particularly linked to the Anglophone crisis, which has plagued the Northwest and Southwest regions since 2016. The crisis forced the CDC to halt operations between September 2018 and May 2020. Although the company has gradually resumed production since 2021, many of its plantations were abandoned and even turned into training camps by separatist militants during the height of the conflict.
This projected decline in rubber production comes at an unfortunate time for local producers like Hevecam, Sud Cameroun Hévéa, Socapalm, and Safacam. Global rubber prices have been on the rise since late 2023, with a notable 25.8% increase in the first quarter of 2024. Rubber, alongside cocoa, has been a key driver of the rise in agricultural export prices for CEMAC countries.
The anticipated drop in production is also expected to have a negative impact on Cameroon’s public treasury, as it will likely lead to a decrease in tax revenue and other related income.
