Economy

BEAC report reveals: Cameroon highest driver of inflation, consumer of imports in CEMAC.

by Edmond
07 Jul 2024 18:24
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Ministry of Trade officials on field work trying to enforce price control regulations

The Bank of Central African States, BEAC, has expressed concern that Cameroon, one of the six countries that make up the Central African Economic and Monetary Community, CEMAC, alone consumes more than 50% of goods imported in the sub region.
In the recent BEAC Monetary Policy report, the Central Bank expressed dismay that Cameroon drives inflation in CEMAC Zone with its 52% of total sub regional consumption.

The report highlights that Cameroon, which also hosts 40% of the community's industrial fabric, is the primary driver of price dynamics in the sub-region.

Statistics which also portray the population as consumer inclined rather than production, with the balance of 52% consumption to a modest 40% total industrial production output for the sub region.

The self-acclaimed giant of the CEMAC sub region is also portrayed in negative light when drivers of inflation in the sub region are evaluated. Here, the BEAC Monetary Policy report said Cameroon is driving inflation of around 6.6% in 2024.

On the same sloppy side compared to consumption, the report under review showed that average inflation within the sub region stands at 4.5% with Cameroon contributing 57 points.

This represents a slight drop compared to the 4.8% rate recorded as at the end of December 2023. The recent report highlighted that peak inflation rate was in February 2024, when it hit 4.6%.

BEAC, the report holds, attributes the situation to fuel price increases in Cameroon and the Republic of Chad. Further analysis again showed that Cameroon is the main driver of price dynamics in the CEMAC zone as of the end of March 2024.

Yaounde is followed by the Republic of Chad that was attributed a contribution of 20.4 points, up from 14.9 points in December 2023; Congo Brazzaville, 9.1 points, down from 10.2 points during last assessment; Equatorial Guinea, 4.8 points, up from 4.2 points; Gabon, 3.6 points, down from 4.0 points; and the Central African Republic, CAR, 0.0 points, down from 1.6 points during previous assessment.

Cameroon´s gloomy performance notwithstanding, the BEAC report concluded that while the proportion of inflation contributions decreased in the other five CEMAC countries, it increased significantly in Equatorial Guinea from 4.2 points as at December 2023 to 4.8 points in March 2024.

This story was first published in The Guardian Post Issue No:3159 of Friday July 5, 2024