Cameroon is the largest trading partner of the Economic and Monetary
Community of Central Africa (CEMAC) countries. Despite belonging to the
same sub-regional organization, the formal trade ties between Cameroon and
its neighbours have been hampered by a combination of factors that have spurred the
growth of informal (unrecorded) trade. Interest in cross-border trade of agricultural and
horticultural commodities between Cameroon and its neighbours has been overwhelming,
but knowledge of its magnitude, determinants and consequences remains inadequate.
This leads not only to undervaluation of figures in the national accounts, but also
inhibits formulation of appropriate policies and strategies to exploit its potential impact,
particularly on food security. Using a monitoring method of cross-border flows of informal
trade, this study sought to estimate the volume/value of unrecorded cross-border trade
between Cameroon and its CEMAC neighbours and compare it with recorded (official
figures) trade. The results indicate that in 2008 a volume of just over 155,000 tons of
agricultural and horticultural commodities were shipped from Cameroon to its neighbours
in CEMAC at an estimated value of almost 38 billion CFA francs, representing 0.4% of
the gross domestic product (GDP) of Cameroon. The comparison in relative terms shows
that informal or unrecorded trade represents 96% of official trade and mainly includes
agricultural and horticultural commodities. The failure of the institutional intra-business
community framework through informal trade policy practices explains the informal
trade in the CEMAC.
