National Economy: Over FCFA 255B lost annually

The revelation was made during the general assembly of the Cameroon Chamber of Commerce in Douala August 29.

There are fears of a crumbling Cameroon economy if concrete measures are not taken to check goods entering the country. The Cameroon Chamber of Commerce, Industry, Mines and Crafts (CCIMA) during its 2014 general assembly meeting in Douala on Friday revealed that illicit trade and contraband are seriously draining the economy of its vital revenue.

The country loses over FCFA 70 billion in terms of taxes annually, while the business community (industrialists, producers) losses at least FCFA 185 billion per year, according Takor Takor, member of CCIMA. Besides, over 200 jobs are lost every year because of counterfeit products with outcomes such as poor living conditions and a disgruntled population. Customs revenue alone also dwindles to over 20% annually to contraband products. These products include especially cigarette, alcohol and medication.

According to a recent study by the Ministry of Industry, Mines Technological Development, the most affected were alcohol, precious stones, cigarette, etc. it blames the situation on porous borders, corrupt customs and security officials, unscrupulous business persons who have been identified as the main vectors of contraband and illicit trade in Cameroon have hardly seen any reason to comply.

This situation partly explains why growth rate in 2013 was 4.8% instead of 6.1% projected by the Ministry of Finance.

Takor Takor said; “We want to work with ANOR to ensure that products entering the country are of the right quality and meet norms. Another strategic partner is the Customs Department we will be working with to ensure that the country does not lose revenue and that our businesses are not put at risk. We can also create jobs for young people.”

The statutory meeting was also opportunity for local industrialists who were educated on how to fight contraband, which are often products of low and poor standards not fair for the population. However, not only revenue is lost as they evade customs duties, genuine and regular importers of similar and legally imported products face unfair competition from contraband in terms of their cheapness on the market.

Addressing the general assembly, The President of CCIMA, Christophe Eken, said most preoccupying is the fact that despite the numerous legislation put in place by the government to check against these setbacks, the situation is instead degenerating. A major focus of the assembly was also to lay the groundwork for 2015.