Composante 1

TRANSFAGRI

Programme Intégré de Valorisation et Transformation des Produits Agricoles et Agroalimentaires

Non-financial support

An important fabric of VSEs that can emerge

  Cameroon's development vision is to be an emerging country by 2035. Current growth is not robust enough (4.8 percent in 2016) to generate sufficient jobs and reduce poverty in a sustainable manner. The balance of payments is in deficit due to the economy's low competitiveness and stagnant exports. In order to stimulate exports and substitute domestic products for imports, it is necessary, among other things, to upgrade local enterprises and develop new ones, as well as diversify production. The Government considers the SME as an important engine of its strategy for growth and employment. Therefore, in line with its orientations, the Ministry of Small and Medium-sized Enterprises, Social Economy and Handicrafts (MINPMEESA) aims to provide the country with a healthy and competitive fabric of manufacturing SMEs, the basis for growth and a powerful lever for a successful private sector. The last business census in 2009 counted approximately 90,000 businesses, of which more than 99% were SMEs. The tertiary sector (trade, services, etc.) leads the way (62%), followed by the secondary sector (34%) of production development and processing. In the SME category, more than three out of four SMEs are Very Small Enterprises (VSE), as defined by law. In spite of the high number of VSEs and even Small Enterprises (SEs), it must be recognized that their mortality rate is quite high (Source: SME Mortality Monitoring System / Sep 2016/ CAMERCAP/MINEPAT), thus indicating the urgent need to develop appropriate tools for the creation, development and support of these VSEs. Due to its agro ecological conditions, Cameroon benefits from a considerable potential of agricultural and agro alimentary SMEs. Cameroon's agriculture contributes to about 70% of the CEMAC's intra-community agricultural trade and ranks first among Central Africa's agricultural and agri-food producers. However, this sector has significant potential for creating wealth and jobs that is still under-exploited due to, among other things:

  • The low productivity and competitiveness of agricultural production;
  • The insufficient structuring and compartmentalization of the actors' interventions;
  • The institutional, regulatory, judicial and fiscal environment often lacks incentives;
  • Difficulties in accessing financing;
  • The insufficient valorization of the productions of the soils.

  Rapid urbanization combined with the increase in women's salaried employment is influencing the consumption patterns of households, which are resorting more to restaurants and the consumption of processed products.

News

Project owners

The challenge of valorization, transformation, industrialization of agro-food products

  In June 2016, a mission from AFD headquarters pre-instructed the "Valorization, processing and industrialization of agri-food products" component, included by the Cameroonian authorities in the strategic axes of the 3rd Debt Reduction and Development Contract (C2D). The main objectives of this instruction were to identify or specify :

  • The government priorities and the institutional framework in which the action should take place;
  • Interventions of technical and financial partners, civil society/community actors in progress or to come;
  • The program intervention logic resulting from the priorities and needs expressed (method of financing: project aid/budget support and contracting authority, target audience, objectives, results to be achieved, etc.);
  • The principles for setting up direct aid to beneficiaries, the definition of these rules should make it possible to harmonize the modes of intervention between the different initiatives;
  • Theprivate sector involvement in the management and steering of the various interventions;
  • The bridges between the different C2D projects in order to give them more readability and allow beneficiaries to have a set of "windows" to contact according to their problems.

Indeed, within the framework of the Franco-Cameroonian discussions on the orientations of the 3rd C2D, two sectors of concentration have been identified: infrastructure and in particular urban development on the one hand, rural development on the other. For the latter, two main objectives have been defined:

  • The sustainability agricultural training and youth integration schemes as well as support for decentralization;
  • The recovery and transformation agricultural products through the implementation of an integrated approach combining the development of formal self-entrepreneurship, very small, small and medium-sized enterprises (VSEs/SMEs)3, small and medium-sized industries (SMIs), cooperatives and family farms, their financing, as well as the structuring of the vocational training offer, in order to best meet the needs of the labor market.

Indeed, the objective of the Cameroonian Government, to which the AFD adheres, is to increase the added value of agricultural products and to move from a primary economy to a secondary economy, to reduce post-harvest losses and marketing " forced” due to liquidity needs to meet basic needs.
In the 3rd C2D, the shared will is not to create new devices, but to strengthen and perpetuate the existing one. The Cameroonian side is considering the sustainability and deepening of the activities tested under the PMEAA Program through their transfer to the SME Promotion Agency (APME) as well as their expansion. This 3rd C2D offers the opportunity to operate in a progressive and greater representativeness of the private sector in the decision-making bodies of the projects, an enlargement both geographically and in the field of intervention. The topics considered relate to the dissemination of technical and economic data, the economic animation of the territories, the consulting and training service voucher, the refinancing of MFIs, support for quality assurance and certification.
It also appears that a better readability of the existing systems and the establishment of operational bridges allowing the beneficiaries to get out of a project logic and to benefit on the other hand from a corpus of coherent tools promoted by the Government and available at the territorial level, would be able to optimize the initiatives in progress and the level of user satisfaction while rationalizing the budgetary efforts of the State.

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