logoBC
Yaoundé - 13 April 2024 -
Public management

CEMAC sees commodity price rise in Q4 2023 but faces bleak outlook for 2024

CEMAC sees commodity price rise in Q4 2023 but faces bleak outlook for 2024
  • Comments   -   Monday, 04 March 2024 14:44

(Business in Cameroon) - Export commodity prices for the six CEMAC countries experienced a 1.3% increase in the fourth quarter of 2023, according to the Composite Commodity Price Index (CCPI) released on February 29, 2024, by the Bank of Central African States (Beac). In the previous quarter, the increase was 8.3%. The central bank attributes this growth to rising prices in the agricultural market sector. "The index of prices for major agricultural products exported by CEMAC countries rose by 8.0% to 153.29. This increase, starting since the third quarter of 2022, correlates with ongoing uncertainties in the global economic situation, affecting international markets for products like coffee, cocoa, and bananas," Beac explains.

The central bank also reported that climate change impacts have affected agricultural yields, while disruptions in supply chains have led to temporary shortages of other products such as rice and palm oil. "Positive variations were observed in the markets for cocoa (13.5%), rubber (9.5%), tobacco (5.2%), rice (4.5%), and coffee (3.0%)”, and the opposite trend was observed for metals and minerals (-0.9% after -3.3% in Q3 2023) and fishery products (-1.1% after 4.9% in Q3 2023) plus and a slowdown in forestry products (0.5%, after 0.8% in the previous quarter).

Although the prices for many raw materials remain historically high, "they are likely to normalize below last year's levels due to global demand stagnation," Beac cautions. According to data published by the World Bank in the "Commodity MarSkets Outlook" report of October 2023, commodity prices are expected to decrease by 4% in 2024, following a nearly 24% drop in 2023, marking the steepest decline since the Covid-19 pandemic. This downturn could dampen growth prospects for nearly two-thirds of the economies in the sub-region, which are highly dependent on these exports.

The CCPI is based on the prices of 20 commodities exported by CEMAC, representing 90% of the export values. The basket is divided into five main categories: energy products, metals and minerals, forestry products, agricultural products, and fishery products.

air-peace-expands-service-with-new-route-from-abuja-to-yaounde
Nigerian airline Air Peace has expanded its operations in Cameroon with the opening of a new flight route from Abuja, Nigeria's capital, to Yaoundé, the...
cameroon-cuts-rice-prices-following-import-deal-with-india
The Cameroonian Ministry of Commerce announced yesterday a significant reduction in rice prices effective Friday. This price adjustment follows the...
cameroon-exported-657-3-tons-of-palm-oil-in-2022-despite-production-shortfall
Cameroon, grappling with a chronic shortage of palm oil production, exported 657.3 tons of the commodity in 2022. This export generated about 713.6...
cameroon-s-trade-deficit-worsens-over-six-years-despite-import-substitution-efforts
Cameroon’s trade deficit has significantly worsened from 2017 to 2022, totaling a loss of CFA256 billion over the six-year period, according to the...

Mags frontpage


Business in Cameroon n110: April 2022

Covid-19, war in Europe: Some Cameroonian firms will suffer


Albert Zeufack: “Today, the most important market is in Asia”


Investir au Cameroun n120: Avril 2022

Covid-19, guerre en Europe : des entreprises camerounaises vont souffrir


Albert Zeufack: « Le marché le plus important aujourd’hui, c’est l’Asie »