To improve citizen’s living standards: Gov’t urged to accelerate implementation of free trade agreements.

Held in Yaounde, the panel discussion moderated by CEPI founder, Henri Kouam, centred on the theme: “Can free trade reduce food prices?” 

The event attended by close to 30 members of civil society, is part of a project dubbed the “Trade for You” project, sponsored by the US-based Atlas Network and Cameroon-based Phoenix construction. 

During the panel brainstorming, it was revealed that following the decision by government to withdraw fuel subsidies, the prices of basic food stuff and other necessities and services have witnessed a stiff increased making life even more difficult for the poor.

The reduction in fuel subsidies is also said to have caused an inflation rate 7.4% in 2023 and is forecast to average 7% in 2024. 

However, with Cameroon haven signed the African Continental Free Trade Area, AfCFTA, and the Economic Partnership Agreement, EPA, the experts on set unanimously argued that an effective implementation will help to cushion the burden of high cost of living on local consumers.

One of the panelists, Yannick Ngelewi, noted in the event of a free trade area, there is price competition and local firms obliged to be innovative.

He insisted that this will push local firms and producers to upgrade and boost their capacities to ensure they can compete against foreign firms. 

On his part, Bate Enow, entrepreneur and founder of Petty Cash, stated that foreign firms use modern methods of production which helps in reducing their cost of production and enables them to charge lower prices, thereby benefitting consumers. 

According to Dr Tchemtchoua Eleazar, economist and rural development expert from University of Dschang, noted that imports from countries like China and Europe are comparatively cheaper for some products, which reduces the cost of living for poorer consumers and improves the quality of live. 

Over 25% of population living below poverty line

According to CEPI founder, Henri Kouam, over 25% of the population in Cameroon live below the poverty line while a further 45% experience multidimensional poverty. 

Kouam further explained that CEPI research shows that free trade ultimately improves wages and employment, while reducing the prices on non-premium agricultural imports such as rice, pasta and flour. 

In the face of the difficult economic situation, it was recommended that government should accelerate the implementation of free trade agreements like EPA and AfCFTA to support poorer consumers. 

It was equally recommended for the private sector to work collectively to boost capacity at an industry level, while public policies should support staff training and capacity building by making technology and training costs tax deductible. “This will reduce the burden on local businesses and promote free enterprise,” the CEPI founder proposed. 

The panelists reiterated that the “Made in Cameroon” policy and free trade are not in conflict. Rather, they propose improving Cameroon’s productivity capacity while making it easier and cheaper for consumers to access cheaper products.