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“Cameroonian Exporters Should Adopt New Strategies”

Dr. Cletus Neba Yah, Senior Lecturer, Department of Economic Analysis and Policy, University of Doua
The Federal government of Nigerian has launched an economic recovery and growth plan 2017-2020 to rejuvenate its struggling economy hit by recess as a result of shrinking oil prices. What new perspectives do you think this will bring in the Nigeria-Cameroon trade exchanges? Nigeria is one of the largest economies in Africa and one of the major trade partners of Cameroon, second only to France. Nigeria has a po- pulation of above 180 million inhabitants and shares about 2,000 km long border with Ca- meroon. The recent oil prices greatly affected Nigeria as its economy highly depends on crude oil exports. These ex- ports represent 70% of public revenue and 90% of foreign reserves. The economic and recovery plan launched by the Nigerian Federal government aims at diversifying the Nige- rian economy so as to boost economic growth and make the economy resilient to commodity price shocks. These reforms entail the development of the other sectors of the economy so as to diversify their export base. The way these policies will affect trade between Nige- ria and Cameroon depends on which strategy Nigeria adopts: If they intend to promote the development of the goods they import from Cameroon, then Cameroonian exporters to Nigeria would need to adopt new strategies to remain in business e.g. by entering into partnerships with Nigerian pro- ducers. On the other hand, if they concentrate on developing the production of goods they export to Cameroon, this will profit Cameroonian consumers as these goods will become cheaper and they will enjoy large consumer surpluses. Also, since the ambitious plan of Nigeria depends on the availability of adequate energy sources, Cameroon stands to benefit by harnes- sing its natural endowments potential in the production of hydro-electricity so as to com- pete for the supply of energy to Nigeria. How can you assess trade relations between Came- roon and Nigeria at the moment? In recent years, trade has never been so blossom between Nigeria and Cameroon. In 2012, Nigeria went over France to become the first trading partner of Ca- meroon. Though since then, the advent of the terrorist group Boko Haram and other rebels in the gulf region has greatly affected trade between the two countries, the volume of trade still remains very important. Recent statistics show that in 2015, Cameroon exports to Ni- geria represented 42.36 Million US dollars and imports stood at 731.74 Million US dollars. Though Cameroon has a nega- tive trade balance with Nigeria, Nigeria remains a privileged trade partner for Cameroon and there is hope that with the trade agreement signed between the two countries in 2014 and the completion of the tarring of the Bamenda-Enu- gu 433 Km road, the volume of transactions will increase for the mutual benefit of both countries. How has the devaluation of the Naira affected trade links with Cameroon which happens to be one of Nige- ria’s major trade partners? Devaluation means the voluntary reduction of the price of one currency in terms of another. The recent devaluation of the Naira by abandoning the fixed exchange rate regime which pegged the value of the Na...

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Commentaires

  • avatar
    03-01-1976

    Die idee ist gar nicht schlecht. Nigeria und Kamerun haben immer viel gemeinsam in Zusammenhang mit trading gehabt. Kamerun hast viel Bodenschätze denen man in Afrika finden kann und davon hat Kamerun dir Name “L'Afrique En Miniature“ Mit die Resource von Kamerun und die Öl von Nigeria beide Lände können davon was haben. Daumen hoch.

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