Biya regime removes VAT on locally produced flours ⁰

Locally produced flours made from corn, yam, cassava, and plantain are now exempt from Value Added Tax (VAT). This new policy, outlined in the 2025 finance law and confirmed by the General Directorate of Taxes (DGI), is expected to lower the price of these products on the market by 19.25%, which matches the current VAT rate in the country.

The government sees this move as part of its strategy to promote “import substitution.” By encouraging the production of local flours, Cameroon aims to reduce its reliance on imported wheat, one of the country’s most imported food products, alongside rice. This dependency has heavily contributed to the country’s trade deficit.

In 2023, although imports dropped by 31.6% compared to the previous year, Cameroon still spent CFA178.3 billion on wheat imports, down from CFA260.7 billion in 2022. France remains the top supplier of wheat to Cameroon, followed by Poland, Russia, and Germany. Notably, Poland saw a 9% increase in wheat exports to Cameroon in 2023.

To lessen the country’s dependence on imported wheat, particularly for bread production—which is one of the most widely consumed foods in Cameroon—the government has been promoting local flours in recent years. Before removing VAT on these products, the government had already modified bread production standards, allowing up to 15% of local starch-based flours, such as cassava and yam, to be blended with wheat flour. The long-term goal is to gradually replace wheat flour with local flours in bread-making.

In 2023, the Ministry of Youth launched a training program for trainers in local flour processing, with the aim of teaching at least 378 young Cameroonians to make pastries using locally produced flours. In line with these efforts, a platform for local producers was established in 2022, with a target of producing around 5 million tons of high-quality products by 2030. However, this target seems ambitious, given the current pace of local flour production.

In his national address on December 31, 2024, President Paul Biya announced that 12,800 tons of local flours were produced in Cameroon in 2024. In comparison, the country imported 887,400 tons of wheat in 2023, according to the National Institute of Statistics (INS).

Achieving the goal of producing 5 million tons within five years will require significant investments, especially from millers whose factories are mainly designed to process wheat. As Alfred Momo Ebongue, Secretary General of the Cameroon Millers’ Industry Group (GIMC), pointed out, mills will need to be redesigned or adapted to process local tubers like cassava, yam, and potatoes instead of just wheat.

Source: Business in Cameroon