Cameroon Anticipates 4% Rise in Customs Revenue for 2024
Cameroon’s Economic Outlook: The Rise in Customs Revenue Forecasts for 2024
Cameroon’s economy is on the rise, with a notable forecast of a 4% increase in customs revenue for 2024. This positive trend reflects the country’s ongoing efforts to enhance its fiscal policies and customs operations. The General Directorate of Customs (DGD) has been at the forefront of this economic boost, implementing strategic measures that have significantly improved revenue collection.
In the first quarter of 2024, the customs sector of the Southwest region alone saw an impressive increase of over 129% in revenue, collecting more than CFA11.8 billion, excluding Sonara[1]. This remarkable growth is attributed to the improved security situation in the region, which has been a challenge in the past due to the Anglophone crisis. Enhanced security measures, continuous improvement in cargo handling, and effective collaboration with partners have been key factors in achieving these results.
The DGD’s report highlights a substantial increase in validated declarations and manifests, indicating a more robust and efficient customs processing system. The profitability per declaration has also seen a significant rise, from CFA776,000 in 2023 to CFA1.1 million in 2024, marking a tax progression of CFA400,000 per declaration over the two periods.
For the fiscal year 2024, the State of Cameroon aims to mobilize a total of CFA1,079.9 billion in customs revenues, which is a 10% increase from the previous year’s forecasts. In 2023, the DGD collected CFA1,019.8 billion, surpassing the initial target of CFA973.7 billion. These figures not only demonstrate the country’s fiscal resilience but also its potential for further economic growth.
The increase in customs revenue is a testament to the government’s commitment to modernizing its customs administration. Technological innovations have played a crucial role in optimizing resource mobilization. For instance, the introduction of applications like “Cosmos” has enabled better tracking of non-cleared vehicles, while “portrans. cm” assists in authenticating clearance slips for vehicle registration, reducing fraud and safeguarding customs revenue.
Cameroon’s strategic location as a gateway to Central Africa, coupled with its efforts to improve customs services, positions it as a burgeoning economic hub in the region. The projected increase in customs revenue for 2024 is not just a number; it represents the country’s dedication to creating a more transparent, efficient, and business-friendly environment.
This positive trajectory in customs revenue is a clear indicator of Cameroon’s economic vitality and its readiness to embrace the challenges of the future. With continued focus on security, technological advancement, and regional cooperation, Cameroon is poised to achieve even greater heights in its economic development.
Cameroon’s Trade Dynamics: A Closer Look at Imports and Exports
Cameroon, often referred to as “Africa in miniature,” presents a diverse and rich economic landscape, reflective of its varied geography and cultural heritage. The nation’s trade profile is a testament to its strategic position and resource wealth, which contribute significantly to its economic activities.
**Exports: The Pillars of Cameroon’s Economy**
The backbone of Cameroon’s export economy is its rich natural resources, particularly in the petroleum sector. Crude petroleum stands as the top export, accounting for a substantial portion of the nation’s trade revenue. Following closely are petroleum gas, sawn wood, cocoa beans, and gold[2][2]. These commodities highlight the country’s reliance on raw materials and primary goods, which are in high demand globally.
Cameroon’s primary export destinations include the Netherlands, France, India, Spain, and China, reflecting a diverse market reach spanning Europe and Asia[2][2]. This global footprint underscores the country’s role as a significant player in the international trade of these essential commodities.
**Imports: Meeting Domestic Demand**
On the import side, Cameroon’s economy is bolstered by a variety of goods necessary to meet the domestic demands of its population and industries. Refined petroleum leads the import list, followed by essential commodities such as wheat, rice, packaged medicaments, and non-fillet frozen fish[. These imports are crucial for maintaining the daily life and health of Cameroonians, as well as supporting the nation’s food security.
China emerges as the leading supplier for Cameroon’s imports, indicative of the strong trade relations between the two nations. Other key import partners include France, India, Belgium, and the United Arab Emirates, providing a mix of goods that range from industrial products to consumer goods.
**Economic Complexity and Future Prospects**
Cameroon’s trade profile also sheds light on its economic complexity. The Economic Complexity Index (ECI) places Cameroon as the 113th most complex economy, suggesting room for growth in diversifying its exports and climbing up the value chain. By focusing on processing its raw materials and developing manufacturing capabilities, Cameroon could enhance its economic complexity and resilience.
The future of Cameroon’s trade looks promising, with the potential to expand its export portfolio and further develop trade relations. The country’s ongoing infrastructure projects, such as the deep seaport in Kribi, are set to bolster its position as a central trade hub in the region. Additionally, initiatives aimed at improving trade policies and customs procedures could streamline operations, making Cameroon an even more attractive destination for international business.
In conclusion, Cameroon’s trade dynamics offer a snapshot of a nation rich in resources and potential. With strategic investments and policy reforms, Cameroon can leverage its assets to foster sustainable economic growth and further integrate into the global economy. For more insights into Cameroon’s trade and economic developments, keep an eye on the latest reports and analyses.
According to sources within customs, the proposal was made by the International Monetary Fund (IMF) whose delegation is staying in Cameroon until May 8.
Since last week and until May 8, 2024, a mission from the International Monetary Fund (IMF) has been in Cameroon as part of the 6th review of the Economic and Financial Program concluded in July 2021. According to the Ministry of Finance (Minfi), the Bretton Woods institution works with the government not only to ensure sustainable growth but also to put in place measures that will enable the country to cope with global shocks. Among these planned measures, we mention the mobilization of more revenue to achieve the budgetary objectives voted at 6,740.1 billion CFA francs for the 2024 financial year.
Upon observation, customs, which is one of the Republic’s revenue providers, is among the targets of the mission of this multilateral financial partner. Well-connected sources within the General Directorate of Customs (DGD) indicate that the initial objectives of 1,079.9 billion CFA francs (16% of the state budget) in the 2024 finance law should increase. of 40 billion CFA francs (+3.7%) under the proposal from the donor. “The IMF is proposing 1,120 billion CFA francs in revenue in 2024. We must follow an adjustment plan and this at the customs level is at three levels: the mobilization of revenue, the attractiveness of the economic territory and the liquidation debt,” our informant tells us.
Debt recovery
In this regard, it is possible to ratify this increase and achieve the expected objectives thanks to a certain number of factors. This would initially involve recovering the debt of traders or that of the State. “The price at the pump has increased and this also needed to be increased through customs revenue. When marketers import fuel, they import all taxes included (TTC). All these marketers owe us several tens of billions of CFA francs. And every time we want to hold a meeting, some always find an excuse…They still pay in small amounts when they want. In short, people owe us a lot of money, including public administrations,” our source whispers before explaining: “If fuel was for example at 100 F and it increased to 150 F, in the surplus of 50 F, there is an equalization where we distribute the 50F over what already exists and customs will end up having, for example, 5F, 7F and that’s what we want.” However, according to the price structure for oil in Cameroon over the period from April 1 to 30, 2024, the “price of the imported product” category displays 10% of the taxable value of the Cost-Insurance-Freight (CAF) to levy on super (14 Fcfa) oil (15.81 Fcfa) and 15.42 F for diesel, as customs duties.
Sale of cocoa
On the other hand, we learn, that the selling price of cocoa in Cameroon would be another avenue to explore to boost customs revenue. A kilogram of cocoa bean is currently sold for more than 5,000 CFA francs. This price improvement should therefore continue at the level of exports, which would allow customs to mobilize more revenue through the exit duty set at 10%. Moreover, if customs already expect an upward revision, it also does not rule out the uncertainties which could affect the mobilization of revenues: the Russo-Ukrainian war, the economic partnership agreements (EPA), the Zlecaf, the war in Sudan, etc. The majority of these factors led the DGD to revise its objectives to 973 billion CFA francs in 2023, which was initially 1,004 billion even if the institution headed by Edwin Fongod Nuvaga finally exceeded these projections until crossing the bar of 1,000 billion CFA francs at the end of 2023 for the first time.
