“This Trend Is Good News For Cameroon Economy”

 Dr Ariel Ngnitedem (PhD), Economic Scholar, expert in Public Finance, Senior lecturer at the University of Yaoundé II-SOA.

What accounts for the growth of supermarkets owned and run by Cameroonians?

Many factors account for the growth of these companies. First, the raising of the middle class in Cameroon made up mostly of young and well educated people who have either studied or lived in foreign countries across the world and decided to return home. This class of citizens is at both ends of these businesses. They are owners or managers or both, but also customers or suppliers or both for these companies. Second, the consumption habits are evolving due in part to social media and consequently the customer base of these companies is growing faster, pretty much at the same pace as the urban population of Cameroon. This trend is good news for Cameroon economy provided that focus is placed on the improvement of the share of locally manufactured goods and commodities on the shelves of these companies.

What is their impact on the economy?

They have gone a long way but still have more to achieve. They impact is mostly felt on the consumption of urban dwellers as they make it easier for the later to buy manufactured goods and commodities locally made or imported. By consuming these goods they contribute to the boost economic activities that in turn contribute to the improvement of the job market and investments through a ripple effect. More goods consumed mean more goods produced locally or imported which means more jobs, more custom revenues for the State, more fiscal revenues notably through the value added tax for the State coffers, more domestic investments and sometimes more foreign direct investments. Their impact on the economy will be even better if they were carrying more locally manufactured goods and commodities that will go a long way to create more domestic jobs indirectly. This will improve tremendously the day they will start selling agricultural products and groceries from domestic...