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By Stéphane Mbiankeu Nguea

Executive Summary

This policy brief analyzes the paradox of Cameroon’s fiscal performance, where the largest contributors to customs revenue are also the main drivers of the country’s food import dependency. Based on figures from the General Directorate of Customs’ honor roll (2024-2025), it demonstrates that entities like SABC (48.6 billion FCFA) and Congelcam SA (14.1 billion FCFA) finance the State budget through massive imports that weaken the trade balance and contradict the objectives of the SND30 (National Development Strategy 2020). While Cameroon faces a deficit of 500,000 tons of maize and imports 50% of its fish needs, this paper proposes a strategic shift: the creation of a Local Investment Tax Credit. This mechanism aims to redirect customs revenue towards building a national productive capacity, transforming the “kings importers” into industrial champions. This brief formulates operational recommendations for the Ministries of Finance, Economy, Agriculture, Fisheries and Livestock in order to operationalize this shift towards the progressive reduction of dependence on imports in strategic sectors.

Key Messages:

  • The budgetary illusion: The substantial tax contribution of agri-food industries (Customs’ Top 10) should not obscure the structural drain on foreign currency reserves and the chronic production deficit (maize, fish, sorghum). Current customs performance is the barometer of our productive failure.
  • The local investment tax credit as a disruptive tool: The proposal for a local investment tax credit is an incentive-based, rather than punitive, an industrial policy instrument. It allows import taxes to be transformed into investment capital for local production (a ratio of 0.50 FCFA exempted for every 1 FCFA invested locally).
  • Strict conditionality and traceability: The effectiveness of the system is based on a rolling three-year “Performance Contract” incorporating objectives for reducing imported volumes (-10% per year) and a dissuasive penalty mechanism in case of non-compliance with commitments.

Introduction: The Illusion of Tax Performance

Over a month ago, the General Directorate of Customs unveiled its list of the top taxpayers for the 2024-2025 fiscal year. To the untrained observer, the figures are a source of fiscal pride: the Société Anonyme des Boissons du Cameroun (SABC) tops the ranking with over 48.6 billion FCFA in duties and taxes, followed by major players such as Cami SA and Congelcam SA, the latter ranking 6th with 14.1 billion FCFA paid to the public treasury. Yet, behind these fiscal accolades lies a worrying structural truth. This “top 10” of contributors actually reflects Cameroon’s external dependence. Every billion FCFA collected at the port of Douala on consumer goods is a reflect of Cameroon’s lack of food sovereignty. For the National Development Strategy (SND30) to move beyond the planning stage, breaking this economic cycle is a prerequisite. Without breaking the vicious cycle linking dependence on imports and insufficient local production, the agricultural and industrial objectives of the SND30 will remain unattainable. It is high time we transformed these “kings importers” into industry builders through an innovative performance contract. The central hypothesis of this policy brief is that the Local Investment Tax Credit could serve as a fiscal incentive capable of transforming the customs burden of Cameroon’s largest importers into productive investment capital, thereby breaking the structural dependence on imports. This mechanism aims to achieve three strategic objectives: (i) to progressively replace imported volumes of fish, maize, and sorghum with local industrial production, (ii) to sustainably reduce the balance of payments deficit and the pressure on foreign exchange reserves, and (iii) to secure Cameroon’s food self-sufficiency over a ten-year horizon, in line with the objectives of the SND30.

The Gap between the objectives of the SND30 and the reality on the ground

Cameroon has an annual demand for 500 000 tons of fish, while local production struggles to reach 250,000 tons. These figures are light years away from the goals of the Integrated Agro-Pastoral and Fisheries Import-Substitution Plan (PIISAH) 2024-2026, which aims for 602 500 tons by 2026. This 50% deficit is met by massive imports that weigh heavily on our balance of payments, while our coastlines and inland waters offer immense potential. The situation for maize is hardly any better. With a domestic demand of 3.542 million tons, Cameroon produces only 2.8 million tons. This structural deficit of over 500,000 tons directly affects our poultry and brewing sectors. The supply of millet/sorghum, strategic cereals for food security and highly valued by the brewing industry, is clearly insufficient. Despite growing interest from brewing companies, domestic production is struggling to meet demand. In 2022, production amounted to 1 012 600 tons, or half of the national demand estimated at 2,000,000 tons. As an example, Boissons du Cameroun was only able to collect 8,000 tons of sorghum on the local market in 2024, a negligible volume compared to their colossal industrial needs.

Why this stagnation? It is because Cameroon has long relied on handicrafts and small producers to feed a rapidly growing nation. Yet, global economic history teaches us that no self-sufficiency can be achieved without scaling up to industrial production. We need “driving forces” and these driving forces are today’s top importers.

The local investment tax credit

To reverse this trend, the State must guide capital, not just tax it. The solution is a conditional exemption, aligned with Ordinance No. 2025/002 of 18 July 2025, which establishes a progressive tax credit (from 25% to 80% depending on the zone). The proposed local investment tax credit complies with this by offering a tax credit on profits (and not on customs duties, to remain compatible with WTO rules) of 0.50 FCFA for every 1 FCFA invested in new locally produced assets (fish farms, corn dryers, storage facilities). To prevent a windfall effect, only investments exceeding the average of the last three fiscal years are eligible. To safeguard public finances, an annual ceiling is set (e.g., 50 billion FCFA), with a semi-annual review by the Ministry of Finance. This mechanism, open to all operators in the sector (WTO neutrality), transforms taxation into an investment lever. Rather than seeing the 14 billion FCFA from Congelcam absorbed into the general budget, a portion would finance aquaculture complexes in the Center and Littoral regions, creating jobs and generating foreign exchange.

A three-pillar performance contract

This incentive requires a three-pillar performance contract with a phased exit clause to avoid dependency: the tax credit rate will decrease by 0.05 FCFA per year after the 5th year (from 0.50 to 0.25 in year 10). First, the 15/10 plan: a commitment to invest 15 billion FCFA annually in new assets dedicated to local production, an amount exceeding the amount allocated to the PIISAH program for the 2026 fiscal year . Second, the gradual reduction: the company commits to reducing its imports by 10% per year in absolute value (a linear trajectory towards zero). Third, the excess import penalty: 30% of the value of the excess imports, paid into a Local Agricultural Development Fund. A force majeure clause (unforeseen events validated by MINADER/MINEPIA) suspends the penalty, subject to a recovery plan. To correct the distortion of competition, the beneficiary company will have to purchase 20% of its raw materials from small local producers (three-year contracts). The State will facilitate land acquisition, ensure the quality of inputs, and implement rigorous monitoring of investments. In ten years, Cameroon could thus move from structural dependence to total self-sufficiency, by leveraging the financial capacity of these major importers. The stakes of this reform go far beyond the simple issue of food. It is a comprehensive societal project.

  • Securing supply: In a world marked by the instability of supply chains and global prices (wheat for example), producing locally is the only life insurance for a nation.
  • Massive job creation: Transforming 250,000 tons of fish deficit into local production represents tens of thousands of direct jobs, from aquaculture to cold chain logistics.
  • Balance of payments protection: Every ton of locally produced maize or fish is a net foreign exchange saving, strengthening the stability of our currency and our ability to invest in other strategic sectors.

Recommendations​

To implement the local investment tax credit in compliance with Ordinance No 2025/002 of 18 July 2025, the following actions are recommended.

  • For the Ministry of Finance and the General Directorate of Customs (DGD): draft an interpretive circular setting the annual budget ceiling and the terms for its revision; establish a digital monitoring platform between the DGD and MINCOMMERCE to verify that tax credits align with actual investments; model the short-term budgetary impact.
  • For MINEPAT: integrate the local investment tax credit into PIISAH; coordinate one-stop shop for land matters.
  • For MINADER and MINEPIA: produce a catalogue of bankable projects (50 ha farms, 100,000 t storage); strengthen technical controls to certify investments.
  • For the Ministry of Commerce: establish a Monitoring Committee including a chartered accountant, a representative of civil society, and a member of the National Competition Council, tasked with calculating the annual reduction (absolute -10%), disbursing the 30% penalty to the Fund, ensuring compliance with the force majeure clause, and verifying the local purchasing obligation (20%). Finally, notify the WTO of the scheme in advance to prevent any trade disputes.

Conclusion

Cameroon has the land, the water, and above all, a dynamic private sector capable of rising to this challenge. What is missing is a bold legislative framework that transforms tax burdens into industrial opportunities. The government can no longer be content to see our “champions” rewarded for the volume of their imports. The true champion of tomorrow—the one that customs authorities should prioritize—will be the one who can say: “In 2024, I imported 100,000 tons; today, thanks to my farms and factories in Cameroon, I produce 100,000 tons locally.” Import substitution cannot be decreed; it must be financed and built. It is time to move from rhetoric to industrial action. The SND30 charts the course; all that remains is to have the courage to follow it.