Mixed Fortunes for Secondary Sector in Fourth Quarter of 2013

According to the country's economic prospects as surveyed by the national office of the Bank of Central African States, BEAC, the secondary sector would witness mixed fortunes in the current fourth quarter of the ongoing fiscal year.

Sugar: Envisaged Boom But...

The demand for sugar by brewery companies is expected to boost the activity of the sugar sector. The survey projects an improvement in the production capacity of the national stakeholder. But a recent press briefing given by managing officials of the country's sugar producing company, SOSUCAM, waters down this optimism. Louis Yinda, the Chairman and General Manager of the company told the press in Yaounde last Friday that the new sugar production season to be launched on October 28, 2013 will produce less sugar that expected. Instead of the initially envisaged 120,000 to 125,000 metric tons, only 110,000 to 115,000 metric tons could be attainable. This is far below national demand which is in the neigbourhood of 215,000 to 220,000 metric tons per annum.

Cooking Gas: Stability Envisaged

Unlike before when scarcity used to haunt the sector, BEAC envisages a stable supply during the ongoing period. The hope is raised by increase in activity in the sector whereby several business people have come up with diverse marks that inundate the market at moment. Gone are the days when Camgas and SCTM duopoly deprived the population of the precious good.

Energy: Projected Increase

Energy supply shortfall is projected to be a thing of the past during this period given the envisaged full functioning of the 216 MW Kribi Gas Fired Plant. But this may not stop the intermittent power supply that haunts households and industries given that energy transportation and distribution equipment are yet to live up to the challenges of the time.

Potable Water: Reduced Supply Awaited

The return of the dry season could slow down potable water supply. But projections are that production could witness an increase given ongoing rehabilitation work on the distribution network and the installation of new equipment by CAMWATER.

Cement: Brighter Prospects

The report notes that the skies are brighter for cement business in the fourth quarter of the year thanks to envisaged promotional sales to boost demand. This is however diluted by the influx of cement produced in other countries.

Textile: Stable Production

The survey notes that considering the evolutions of needs expressed to the country's main textile outfit, CICAM, production could be stabilised in the ongoing period.

Brewery Products: Projected Boom

Given that the ongoing period will culminate in end-of-year festivities and other celebrations characteristic of the season, the survey projects a boost in activities of the sector. However, this might not necessarily induce an increase in the returns of the business people given that an increased rate in access duty is envisaged for soft drinks.

Coffee: Increase Local Processing

With projections of an increased production of coffee, BEAC national envisages an increase in local processing of the product. But the activity might not quite expand for want of financial means to boost the local industry.

Refined Oil, Savon: Swell in Demand

End of year is usually a period of high demand for oil and savon. But the price of crude palm oil, the main raw material for savon, risks augmenting for what BEAC survey notes is insufficiency in local supply. Importations that could have filled the gap would also be hampered given an increase in tax and customs duties.