INS Reports Chad Ascends as Cameroon’s Top 5 Trade Partner in 2023
Chad, primarily known for its crude petroleum exports, has seen a substantial increase in its trade volume over the years. In 2022, Chad’s top exports included crude petroleum, gold, and other oily seeds, with Germany, China, and the United Arab Emirates being the primary export destinations. On the other hand, Cameroon’s economy, which is diverse in its export portfolio ranging from crude petroleum to cocoa beans, has also experienced growth in its trade figures. The Netherlands, France, and India were among the top export destinations for Cameroon in 2022.
The rise of Chad as a key trade partner for Cameroon highlights the interdependency and potential for economic growth within the region. The bilateral trade between the two countries has been on an upward trajectory, with Cameroon’s exports to Chad increasing significantly from $20.9 million in 1995 to $159 million in 2021. This growing trade relationship is crucial for the economic development and stability of both nations, as it fosters mutual benefits through the exchange of goods and services.
The economic complexity of both Chad and Cameroon, as indicated by their rankings on the Economic Complexity Index, suggests that there is room for further development and sophistication in their trade activities. As they continue to expand their trade networks and diversify their economies, the partnership between Chad and Cameroon could serve as a model for regional cooperation and integration.
The strategic geographic locations of Chad and Cameroon, sharing a border and serving as gateways to landlocked regions in Central Africa, further enhance their trade potential. The improvement in trade relations is also likely to have positive spillover effects on the political and social spheres, fostering greater collaboration and understanding between the two countries.
As we move forward, it will be interesting to observe how this partnership evolves and what new opportunities arise from this alliance. The ascendancy of Chad as a top trade partner for Cameroon is not just a reflection of the current economic landscape but also a promising sign for the future of trade in Central Africa. For more detailed information and the latest trends in the trade relations between Chad and Cameroon, readers can explore the data provided by The Observatory of Economic Complexity.
Read also: Chad: imports from Cameroon fall by nearly 70,000 tonnes in 2023
The remarkable growth in the trade partnership between Chad and Cameroon
can be attributed to a combination of factors that have synergistically contributed to their economic rapprochement. Here are some key elements that have played a pivotal role in bringing them this far:
1. **Geographical Proximity**: Sharing a border, Chad and Cameroon have leveraged their geographical proximity to enhance trade. This has facilitated easier and more cost-effective transportation of goods, fostering a natural trade relationship.
2. **Infrastructure Development**: Significant investments in infrastructure, particularly the Cameroon-Chad Transport Corridor project, have improved connectivity between the two countries. This project includes upgrades to road and rail networks, reducing transport costs and time, and making trade more efficient.
3. **Economic Complementarity**: The two countries have complementary economic profiles, with Chad’s strength in crude petroleum exports and Cameroon’s diversified export portfolio, including agriculture and petroleum products. This complementarity has allowed each country to benefit from the other’s resources and demands.
4. **Political Will and Diplomacy**: Strong political commitment from both governments to enhance bilateral relations has been crucial. Diplomatic efforts have led to agreements that facilitate cross-border trade and address barriers.
5. **Regional Stability and Security**: Efforts to maintain stability and security in the region have made it possible for trade to flourish. A stable political environment is essential for the smooth flow of trade.
6. **International Support**: External funding and support from international organizations like the World Bank have enabled the implementation of projects that directly boost trade capacity.
7. **Trade Facilitation Measures**: Both countries have worked on simplifying and harmonizing customs procedures, which has reduced delays and costs associated with cross-border trade.
8. **Economic Policies**: Economic reforms and policies aimed at liberalizing trade have encouraged the growth of the private sector and attracted foreign investment, further boosting trade.
9. **Cultural and Social Ties**: Shared cultural and social ties have also contributed to a favourable trade environment, with mutual trust and understanding facilitating business transactions.
10. **Global Economic Trends**: The global demand for commodities such as crude oil and agricultural products has influenced the trade dynamics between Chad and Cameroon, with each country strategically positioning itself to meet these demands.
These factors, among others, have collectively contributed to the robust trade partnership that Chad and Cameroon enjoy today. As they continue to build on these foundations, the future holds promising potential for even greater economic integration and prosperity for both nations.
The trade relationship between Chad and Cameroon is a robust one
characterized by the exchange of a variety of goods that are essential to the economies and daily lives of both nations. The major goods that flow between these two countries reflect their economic structures and needs.
From Cameroon to Chad, the exports are predominantly composed of essential supplies that support the Chadian market. Given that Chad is landlocked, it relies heavily on Cameroon for about 80% of its imports. These imports include a wide range of products, from manufactured goods to food items and more.
On the other hand, Cameroon imports primarily agricultural products from Chad. These include food staples such as sorghum, onions, and groundnuts. Such agricultural commodities are vital for Cameroon’s food security and also contribute to its culinary diversity.
The exchange of these goods is facilitated by a well-established trade corridor and is supported by both government’s commitment to enhancing bilateral trade. The infrastructure developments, such as the Cameroon-Chad Transport Corridor project, have significantly improved the efficiency and safety of cross-border trade and transit.
This trade is not just a matter of economics; it also strengthens the social and cultural ties between the two countries, fostering a sense of community and mutual reliance. The continued exchange of goods between Chad and Cameroon is a testament to the enduring partnership and shared aspirations for growth and prosperity in the Central African region.
Other important changes were also recorded, notably the rise of China and France in the ranking of key customers of Cemac’s leading economy.Cameroon’s first African customer for several years, Chad enters the top 5 of the country’s key export destinations in 2023 according to figures revealed by the National Institute of Statistics (INS) relating to foreign trade activities. With a 3.8% market share, the country of Toumaï imported 278,700 tonnes of goods from Cameroon during the year 2023 for a total amount of 149.1 billion CFA francs.
According to the data contained in the report, Chad outperforms Italy and returns the European country to 6th place. Indeed, INS figures reveal, that the Southern European country only purchased 275,900 tonnes of goods from Cameroon in 2023 with import expenses of 132.5 billion CFA francs compared to 449,300 tonnes imported in 2022 for a cash value of 210.7 billion CFA francs, i.e. a decline of 38.5% for goods and 37.1% for import expenditure. Italy thus loses 1.6 percentage points and holds 4.4% of the market share in 2023.
Other important changes were also recorded, notably the rise of China and France in the ranking of Cameroon’s key customers. China moves from 6th to 4th place, gaining 2 percentage points. The Middle Kingdom holds 7.8% of the market share with 936,100 tonnes of goods purchased for 231.9 billion CFA francs. France gains 2.4 percentage points and moves from 3rd to 2nd place, thus relegating India to 3rd place. France imported 962,900 tonnes of goods from Cameroon for 369.1 billion CFA francs with a 12.3% market share. Relegated to 3rd place, India holds 9.6% market share.
Cameroon thus exported 917,000 tonnes of goods to Bharat for a total amount of 286.1 billion CFA francs compared to 1,161,300 tonnes of goods exported a year earlier. The Netherlands remains at the top for the second year in a row with a 23.2% market share despite a slight drop of 3.8 percentage points compared to the year before. The country also called Holland would have imported 1,302,900 tonnes of goods for a total expenditure of 693.7 billion CFA francs.
According to the INS, Cameroonian products were exported to 133 countries around the world during this financial year. However, upon analysis, the six aforementioned countries represent Cameroon’s main clients and concentrate 62.3% of total exports in 2023. For the body responsible for developing official statistics in Cameroon, the leadership of European countries in this ranking would be justified by the agreements signed between these countries and Cameroon. “This dominant positioning of European countries was made possible thanks to economic partnership agreements” we can read.
Intra-African trade
If overall exports of goods to other African countries have declined significantly in 2023, Chad is doing much better than the other CEMAC countries. The Central African Republic (CAR), Gabon and Congo are ranked respectively 4th, 5th and 6th African customers of Cameroon in 2023. These countries purchased goods from Cameroon with respective volumes of 58,400 tonnes, 40,500 tonnes and 22,600 tonnes for amounts of 34 billion, 30.9 billion and 19.3 billion CFA francs. As for Equatorial Guinea, its purchases of goods from Cameroon peaked at 11,900 tonnes for 10 billion CFA francs, making this country Cameroon’s 8th customer in Africa in 2023. Outside the Cemac zone, Nigeria which occupied in 2022 4th place, downgraded the RCA and took 3rd place. Indeed, INS figures reveal, that the most populous country in Africa purchased 60,700 tonnes of goods from Cameroon in 2023 with import expenses of 39.5 billion CFA francs.
Read also: Chad: imports from Cameroon fall by nearly 70,000 tonnes in 2023
According to the INS, trade with African countries remains limited in customs statistics, despite the diversification of partners and represents only 12.7% of total export revenue, including 8.1% towards other African countries. Cemac and 1.3% for Nigeria. “This weak commercial integration, particularly with other CEMAC countries and Nigeria, may not reflect the real level of trade, mainly due to the porosity of borders which generates cross-border trade not recorded in customs statistics,” specifies the INS report.
