Attachments
HIGHLIGHTS
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In 2022, inflation rate reached a historic level of 6.3%, compared to 2.3% in 2021 in Cameroon according to the National Statistics Institute, driven by high food inflation reaching 12.7% compared to 4.3% in 2021.
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In the second quarter of 2022, 77.8% of Cameroonian agribusinesses reported a decline in net income, while 80% of Cameroonian industries indicated higher supply costs, such as freight and raw material prices as a major constraint on their activities.
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In 2022, subsidies to petroleum products cost the Government of Cameroone about XAF 775 billion, compared to XAF 120 billion initially planned in the 2022 Finance Law, due to the surge in energy prices.
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According to the Cadre Harmonisé results, the number of acute food insecure people increased by 48% between October 2021 and October 2022, from 2.4 to 3.6 million people for the period of October-December.
Background
Since its onset on 24 February 2022, the RussianUkrainian crisis had a significant global humanitarian impact. The high cost of agricultural losses in was mainly driven by export disruption and depressed domestic prices, as well as a decrease in crops production throughout 2022. Barley, wheat and sunflower were especially affected, as a large proportion of these crops are produced in areas directly affected by the crisis.
As of February 2023, the production output of grain crops in Ukraine was reduced by 37%, compared to 2021, causing a 24% reduction in the country's exports in 2022, accoridng to UCAB. This reduction in grain exports was mainly caused by the blockade of sea ports, which was the traditional export route of Ukraine.
While growth forecasts for 2022 were 3.8% for SubSaharan Africa, the Russian-Ukrainian crisis instead accentuated the fragility of economies, barely recovering from the effects of the Covid-19 pandemic.
The disruption of global supply chains caused by damage to Ukraine's logistical infrastructure (ports, roads, bridges, airports, etc.) and sanctions imposed on Russia by the international community had multiple and immediate effects on international trade, including soaring prices for agricultural products and hydrocarbons.
In the agri-food sector, the crisis caused both an inflationary shock and a scarcity of cereals, and other food products and agricultural inputs for which Russia and Ukraine are leading exporters to Africa, such as wheat, fertilizer, sunflower oil, soybean oil, etc.
Focusing on the situation in Cameroon one year after the onset of the Russian-Ukrainian crisis, this bulletin details the impact of the crisis on key food and nonfood commodities, as well as essential sectors of the Cameroonian economy such as agriculture.