CAMEROON – Cameroon has exempted locally produced flours made from corn, yam, cassava, and plantain from Value Added Tax (VAT) effective January 1, 2025.
This policy, outlined in the 2025 finance law and confirmed by the General Directorate of Taxes (DGI), is expected to lower the market prices of these flours by 19.25%, aligning with the current VAT rate.
The government’s decision is part of a broader strategy to promote “import substitution,” aiming to reduce the country’s reliance on imported wheat. Wheat has long been one of Cameroon’s most imported food items, alongside rice, contributing significantly to the country’s trade deficit.
Despite a 31.6% drop in wheat imports in 2023 compared to the previous year, Cameroon still spent approximately US$290 million on wheat, primarily sourced from France, Poland, Russia, and Germany.
This VAT exemption builds on earlier measures to support local flour production. In recent years, the government has amended bread production standards to allow up to 15% of local starch-based flours such as cassava and yam to be blended with wheat flour.
This step is intended to gradually transition bread-making away from imported wheat and toward locally produced alternatives.
In his national address on December 31, 2024, President Paul Biya highlighted progress in local flour production, reporting 12,800 tons of locally produced flour in 2024. However, this figure pales in comparison to the 887,400 tons of wheat imported in 2023, as reported by the National Institute of Statistics.
Efforts to boost local flour production extend beyond VAT exemption. In 2023, the Ministry of Youth initiated a training program aimed at equipping 378 young Cameroonians with skills in processing local flours and creating pastries.
Additionally, a platform established in 2022 for local producers aims to achieve a target of producing 5 million tons of high-quality local flours by 2030.
However, stakeholders, including the Cameroon Millers’ Industry Group (GIMC), recognize that achieving this target requires significant investments to adapt milling facilities designed primarily for wheat processing to handle tubers such as cassava, yam, and potatoes.
“The exemption is a welcome step, but we need to invest heavily in infrastructure to make local flour production scalable and sustainable,” noted Alfred Momo Ebongue, Secretary General of GIMC.
The VAT exemption signals Cameroon’s commitment to enhancing food security and reducing dependency on imports.
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