By NDIMUH B. SHANCHO
The Inter Patronal Groupings of Cameroon, GICAM, has recommended the temporary suspension of the importation of certain goods and the prioritizing of payment for the importation of essential products and services as well as strategic sectors, as some urgent measures to resolve the currency crisis plaguing the economy of Cameroon for several months now.
In an official communiqué published recently, the President of GICAM, Celestin Tawamba, said the currency shortage is “unprecedented” and has induced a considerable decline in the importation of inputs, production equipment and maintenance tools by local firms. According to him, the currency crisis has short term ramifications: “In the short term, this shortage could force companies to suspend their activities because of a loss of confidence by suppliers and foreign partners. Some suppliers have already suspended operations with Cameroon,” he noted in the communiqué.
The GICAM boss attributed the status quo to rise in transfer charges and delay in honouring transfer requests: “As of June 15, tens of billions Fcfa of transfer requests were made with transfer deadlines no longer respected. In addition, currency transfer and purchase fees, as well as various bank charges are on the rise, and the transfer procedures are longer and more complex,” he indicated.
Mr. Tawamba explained that “at the beginning of this crisis, GICAM, in collaboration with the Professional Association of Credit Institutions in Cameroon (APECCAM), drew the attention of monetary authorities to the increasing risks of foreign exchange shortage on the country’s economy; companies could lose the protection of their assets due non-payment of premiums owed international re-insurance companies. Country risk is deteriorating and tends to distract credit insurers from our businesses”.
He maintained that their efforts were in vain as new exchange regulations have hardly provided concrete solutions to the problems of the companies or reassure economic operators, “but has been characterized by increased administrative controls which are detrimental to import operations”. This according to him, has plunged the economy in the face of real threats of paralysis.