(Business in Cameroon) - The cotton producers operating in the northern regions of Cameroon have been waiting for payment for over six months, we learned from reliable sources. The treasury challenges currently experienced by the Société de Développement du Coton (SODECOTON – Cotton Development Company) are at the origin of these rather rare payment delays, following the delays in exporting the cotton fibre cargo, Bebnoné Payouni, Vice-President of the National Confederation of Cotton Producers of Cameroon (CNPCC), explained.

Considering the unease in the cotton producers’ union, Le Quotidien de l’Economie reveals, the Cameroonian State supposedly decided to make FCfa 30 billion available to SODECOTON, to enable this public company honour its commitments to the producers, while awaiting the proceeds from the sale of the cotton.

As a reminder, SODECOTON manages approximately 250,000 producers. In order to cover its purchases from producers in due time, the company sometimes resorts to credits generally obtained from local banks. On 27 January 2015, FCfa 36.5 billion were raised from a pool of five local banks to purchase 266,400 tons of cotton in 2015.

BRM