Deteriorating Infrastructure, Internal Crisis Dip Cameroon’s Rubber Industry Fortunes

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News in Brief:
– Cameroon’s rubber industry is facing significant challenges due to deteriorating infrastructure and the ongoing Anglophone crisis.
– These factors have led to declining production and exports, presenting opportunities for neighbouring countries like Nigeria to increase their market share.

Cameroon’s rubber production is predicted to decline significantly in the third quarter of 2024. This forecast, issued by the Bank of Central African States (BEAC), is based on surveys conducted within the Economic and Monetary Community of Central Africa (CEMAC) region.

Infrastructure challenges, crisis hampering rubber production

Effectively, several factors are contributing to this downturn. Deteriorating rural roads have made it challenging for rubber producers to transport their goods to market. Additionally, inadequate maintenance of processing facilities has limited production capacity.

The Cameroon Development Corporation (CDC), a state-owned company, has been particularly impacted by the ongoing Anglophone crisis. The conflict had forced the CDC to abandon plantations and halt operations, hindering its rubber production.

While the company has resumed some activities, the damage caused by the crisis continues to affect its output. This crisis is a significant factor affecting the country’s rubber industry. The conflict, which began in 2016, is centered in the English-speaking regions of the Northwest and Southwest.

It has led to violence and insecurity, disruption of operations in many rubber plantations and processing facilities and forced displacement.

Rising global rubber prices exacerbate challenges

Meanwhile, the decline in production comes at a time when global rubber prices are rising. Rebounding from $1.2 per kilogramme (kg) during the peak of the COVID pandemic, current prices stand at $1.70 per kg, with a continental share of the global rubber output at five to seven per cent.

Cameroon’s rubber industry has been a significant contributor to the country’s agricultural exports, and this setback could have negative consequences for both producers and the government.

The country ranks among the top ten rubber producing countries globally, and top three, alongside Ivory Coast and Nigeria.

In 2022, Cameroon’s rubber exports reached a value of $66.6 million, solidifying its position as the world’s 20th largest exporter of this commodity. Rubber was also a prominent export for the country, ranking 13th among all products exported.

Key export destinations for Cameroon’s rubber present opportunities

The primary destinations for Cameroon’s rubber exports were the United States, Spain, Germany, France, and Belgium. These countries accounted for a significant portion of the country’s total rubber exports, highlighting their importance as key markets for Cameroon’s rubber industry.

Ultimately, the challenges faced by Cameroon’s rubber industry present an opportunity for countries like Ivory Coast (continental leader in rubber production) and Nigeria.

Nigeria for example, can capitalise on this opportunity and strengthen its position in the global rubber market, by leveraging its advantages and addressing challenges. The country generates about 350 metric tonnes of the product annually.

Joseph Akahome
Joseph Akahome
Joseph O Akahome (OJ) is a writer, with a Bachelor of Arts degree in English and Literature from the University of Benin. He is an avid agriculturist, with a bias for poultry and an insatiable appetite for chicken wings. When he is neither reading nor researching, he likes to spend recreational time playing board games, or swimming in serene forested lakes.

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