FAO Investment Centre

Breaking down regional trade barriers in Central Africa

A farmer produces green gram (Mung bean), and sorghum.
06/08/2019

The World Bank commissioned a study to identify regional agricultural trade barriers and support the Central African Economic and Monetary Community (CEMAC) countries in their efforts to diversify their economies.

Upon gaining their independence, the nations of Central Africa – Cameroon, the Central African Republic, Chad, the Republic of Congo, Equatorial Guinea and Gabon – embarked on a journey of economic integration that led to the signing of the CEMAC Treaty in 1994. While the monetary component of regional integration has been operational for many years, provisions related to the free movement of goods, people and services remain problematic. In particular, less than a quarter of food imports are sourced within the region.

The Investment Centre led the data collection and analysis using a ‘corridor approach’ to understand current conditions at selected border crossings and in nearby assembly markets that shape CEMAC’s competitiveness in food production and the farmers’ ability to compete in their own regional market. The analysis found substantial potential for regional trade to drive agricultural development and poverty reduction through increased farm revenues and lower food prices. At the same time, this would reduce the food import bills and improve the balance of payments. Yet weak links between farmers and markets, poor market-related infrastructure and high trade costs due to corruption along regional trade corridors are keeping that potential from being fully realized.

Coordinated action to increase the capacity of producer associations, invest in market facilities and warehouses, improve the effectiveness of legitimate checkpoints and remove harassment along trade corridors would have substantial economic impacts benefitting producers and consumers on both sides of the border. Addressing these constraints will require cross-sectoral collaboration and strong political leadership.

Photo credit ©FAO/Petterik Wiggers / FAO
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