6, July 2026
Gov’t upgrades Ndop rice facilities to support import substitution 0
Cameroon is counting on Ndop to become one of the country’s leading rice-producing areas after investing more than CFA4 billion to modernize production and processing facilities at the Upper Noun Valley Development Authority (UNVDA).
Agriculture and Rural Development Minister Gabriel Mbairobe inspected the new equipment on July 2 alongside North West Regional Council President Prof. Fru Angwafo III.
The government hopes the investment will increase UNVDA’s annual rice production from 21,000 tons to 100,000 tons, nearly a fivefold increase.
Achieving that goal, however, will require far more than new processing equipment. Expanding cultivated land, improving irrigation, ensuring access to seeds and fertilizer, strengthening farmer support, and increasing UNVDA’s capacity to purchase, process, and market paddy rice will all be critical.
Modern facilities, but production must follow
The newly installed equipment can process up to 20 tons of paddy rice per hour, replacing aging machinery that had long limited the authority’s operations. The upgrade should reduce processing bottlenecks, improve rice quality, and allow larger volumes of paddy to be handled.
But higher milling capacity does not automatically translate into higher agricultural output. UNVDA still faces challenges related to land development, irrigation, and farm productivity. Although the Ndop plains offer significant agricultural potential, only part of the available land has been developed for rice cultivation.
Unless irrigation systems, rural roads, improved seeds, fertilizers, and extension services expand alongside the processing facilities, the new plant could operate well below capacity. The government’s own assessment of the rice sector highlights these constraints. The Ministry of Agriculture cites post-harvest losses, insufficient milling capacity, outdated storage infrastructure, high input costs, shortages of improved seed varieties, limited mechanization, and inadequate irrigation among the industry’s biggest obstacles.
The Ndop investment addresses one of those challenges, but not all of them.
Reducing dependence on imported rice
The project is part of Cameroon’s broader effort to reduce its dependence on imported food. According to the National Institute of Statistics (INS), cereal imports totaled CFA466.9 billion in 2025, down 14.1% from the previous year but still accounting for 8.9% of the country’s total import bill.
Rice remained the largest imported cereal, with purchases valued at CFA268.7 billion, or 5.1% of total imports, despite declining 15.6% from 2024.
By increasing UNVDA’s processing capacity, the government hopes to expand domestic rice production, gradually replace imports, and create more value within local farming communities.
The initiative fits into Cameroon’s import substitution strategy, which aims to increase the productivity, output, and competitiveness of domestic agriculture.
Still, local rice will need to compete with lower-cost imports, particularly from Asia. That means producing enough rice of consistent quality, packaging it effectively, and keeping prices affordable for consumers.
More than equipment will determine success
Farmers have welcomed the arrival of the new facilities, saying they should shorten processing times, improve access to milling services, and increase the value of their harvests. However, producer prices, access to fertilizer and improved seeds, farm machinery, better roads, and UNVDA’s ability to purchase paddy on time will remain critical to the project’s success.
Security also remains a concern. UNVDA operates in Cameroon’s North West Region, which has been affected by the Anglophone crisis since 2017. Although the Ndop plains retain strong agricultural potential, insecurity continues to affect access to farms, the movement of farmers and inputs, and the transport of rice to markets.
Against that backdrop, the presence of the regional council president alongside the agriculture minister underscored the government’s intention to anchor the project within the region’s broader development strategy.
Ultimately, however, the success of the investment will depend less on political support than on whether it can secure the entire production chain.
The CFA4 billion investment marks an important step in modernizing UNVDA and strengthening Cameroon’s ambition to expand domestic rice production. But increasing annual output from 21,000 tons to 100,000 tons will require much more than new machinery. It will depend on whether higher processing capacity is matched by sustained gains in agricultural production and a more competitive local rice industry.
Source: Business in Cameroon



















7, July 2026
Cameroon’s economy grew 3.5% in 2025 despite a sharp drop in exports 0
Cameroon’s economy expanded by 3.5% in real terms in 2025, but the growth came largely from domestic demand rather than stronger export performance, according to the National Institute of Statistics (INS).
In its report on fourth-quarter 2025 national accounts, the INS said annual economic growth reached 3.5% compared with 2024. Excluding oil and natural gas, growth stood at 3.8%.
The figures point to an economy that continued to expand, but with growth driven primarily by spending at home rather than by stronger external demand. Over the year, export volumes fell 7.6%, while imports rose 10.1%, leaving the trade deficit at 3.9% of nominal GDP.
Domestic demand remained the main growth engine
According to the INS, domestic demand was the main source of economic growth in 2025. Final consumption increased 4.6%, while investment rose 6.8%. Household consumption expanded 4.4%, reflecting resilient consumer spending, while government consumption increased 6%, providing additional support to economic activity.
Investment also strengthened during the year. Gross fixed capital formation rose 6.8%, driven by a 16.3% increase in public investment and 4.2% growth in private investment. That spending supported sectors such as construction, engineering services and equipment-related activities.
At the same time, it raises a broader question about the quality of growth. A significant share of investment still relies on imported machinery, equipment and intermediate goods, suggesting that stronger domestic demand has also fueled higher imports.
Exports weakened as imports accelerated
External trade remained the economy’s main weak spot in 2025. Goods exports fell 10% in volume over the year, while services exports grew 2.7%.
Meanwhile, goods imports increased 10.6%, and services imports rose 7%. The result was an economy that relied increasingly on imported products to sustain domestic activity while generating fewer export earnings to offset those purchases.
The INS data show some improvement during the final quarter of the year. On a seasonally adjusted basis, total exports rose 3.5% between the third and fourth quarters of 2025, with goods exports increasing 6% and services exports 8.2%. Total imports edged down 0.1% over the same period.
That quarterly improvement, however, did not reverse the broader trend. Compared with the fourth quarter of 2024, total exports were still down 8.5%, while imports were up 13.2%.
Although the trade deficit narrowed during the fourth quarter to 4.5% of GDP for the period, the country still ended 2025 with a full-year trade deficit equivalent to 3.9% of nominal GDP.
Services continued to lead the economy
On the production side, the services sector remained Cameroon’s strongest growth driver. Output expanded 4.6% over the year, supported by financial services (9.7%), information and communications (9.3%), transport (4.2%) and public services (4.7%).
Industry posted more modest growth of 2%. Construction expanded 4.8%, while water supply and sanitation grew 6.4%. Those gains were partly offset by a 6.9% decline in extractive industries, particularly oil and gas.
Growth in the primary sector slowed to 1.7%. Industrial and export agriculture contracted 3.2%, reducing the sector’s contribution to export earnings at a time when stronger external sales are becoming increasingly important.
Growth remains uneven
The INS figures show that Cameroon’s economy continued to grow in 2025, supported by household spending, investment, construction and services. But they also point to an economy with an increasingly unbalanced growth model.
Domestic demand is providing solid support for activity, yet rising imports and weaker exports leave the country more exposed to external pressures and a widening trade gap.
Over the longer term, sustaining growth will require more than stronger domestic spending. It will depend on expanding productive capacity, increasing local manufacturing, reducing reliance on imports where feasible and strengthening the country’s export base. For now, Cameroon’s economy is growing. The next challenge will be making that growth more balanced and more competitive.
Source: Business in Cameroon