Inflation will be 7% in Cameroon this year
By Eratus Ndueh
The inflation rate in cameroon is expected to increase by 7%, in 2024. The projection was revealed by the National Institute of Statistics on their evolution of inflation in 2023 and prospects for 2024, published recently which confirmed that, the increase is due to the 15% readjustment of fuel prices in the country.
The surge represent more than double the limit of the 3% threshold set by CEMAC with Cameroon included in its multilateral surveillance system.
This projection is far more pessimistic than that of the government which predicted, in the 2024 finance law, a decline in inflation to 4% during this year compared to 7.4% in 2023.
The institution further explained that this situation may have a direct or indirect impact on other prices such as transport, food stuffs and manufactured products.
A burden which cripples the socio-economic development and productiveness of the state.
However, to face the prospect of inflationary tension in 2024 and with the aim of further reducing Cameroon’s external dependence, Henri Kouam the founder of the Cameroon Economic Policy Institute, whose mission is to improve the quality of economic policies through fact-based research to encourage free market idea and entrepreneurship, affirmed that this rise was predictable and proposed solutions.
“This inflation was already expected, and for us to contain inflation over the long run, we have to encourage more people to formalize their businesses, more people to manufacture and to trade. If we encourage entrepreneurship it means that we are not going to rely on other countries for things like flour, chocolate, sugar and butter but instead let’s fuster local entrepreneurs to manufacture” said Henri Kouam.
He further urged the government not to stifle free trade over their campaign on import substitution policy. ” If we reduce tarifs and non tarifs barriers it will permit Cameroonians to get more goods and services from other countries. we have to improve domestic capacity and encourage our local entrepreneurship. Also watch out on local producers not to increase prices due to the readjustment in fuel prices.”
Also the development of agricultural production units, the construction of road and communication infrastructures to open up production basins, the acceleration of the restructuring/modernization of the National Refining Company (Sonara), and the valorization of the hydroelectric energy produced in dams.
