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Cameroon Dives into more Debts as Gov’t to Secure 41 Billion Loan from AFDB

minader
MINADER boss to collect a loan

The Minister of Agriculture and Rural Development, MINADER, Gabriel Mbairobe disclosed the intention of the state on July 1st 2022. Government reports final moves to seek a loan of 41 billions FCFA from the African Development Bank to boost  the agricultural sector.

 

On responding to lawmakers at the National Assembly,he hinted that officials of the Ministry of Economy ,Planning and Regional Development,MINEPAT, have been authorised to engage the process of securing the loan. The MINADER boss sounded positive that the,the loan could be secured before mid-july to ease the burden on farmers especially  agro-industrial companies.

Its being six months since 2022 started, the minister assured the people’s representatives that authorities are working on what seems to be contingency move to adress a decljine in harvest in  some major food production basins.

Mbairobe cited the Southern zone of the country wherein,he said production in the first six months of this year was not at its best. The minister mentioned weather changes before later telling MPs that the high cost fertilizers was also a major headache that contributed to low yields.

While noting that the farming season has also taken off in the Northern region, the minister said ” We believe we are catching up with tthe farming season in the Southern zones where planting isn supposed to begin in August”

Once the loan is approved, the minister said, the money would be injected in the form of sector support.He futher detailed that the support to agricultural producers would be within the context of the African Development Bank ” African Emergency Food Production Facility” scheme

Gov’t reprensetative explained that he will make use of about 200 tons of fertilizer annually.About 150 tons,he specified is used by insitutions such as  SODECON,SOSUSCAM,CDC,SOCAPALM and SAFACAM. Other producers  who lack the capacity to meet up with the skyrcketing fertilizer prices,he noted make use of just 50 tons.

The other areas of intervention once the funding is available,the minister noted would be support for seed production in rice,maize, sorghum,millet,palmoil, vegetables and other sectors.

The loan will certainly boost the agri sector in Cameroon if well managed. The return and key question is to how Cameroon will refund the loan provided the country is also heavily indedted. Sustaining farmers without a mechanism for an industrial production to return profit will simply be waste.

Farmers and Agri industries as above mentioned must be able to generate income after some time, either through local sales, transformation of primary product into secondary, or most essentially export tarrifs. This is a chain which must be alined not only by MINADER but in accordance with the ministry of trade.



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mm Published on 01.08.2022

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