CAMEROON- The Cameroon Cocoa and Coffee Development Fund (FODECC) has announced plans to grant 75,231 coffee and cocoa producers US$19.6 million in 2024 as part of the government’s agricultural subsidy policy program.
The Cameroonian government will allocate US$10.3 million, while the Central African Forest Initiative (CAFI) will allocate the remaining amount.
The government’s allocation will support 80% of cocoa farmers, around 42,380 farmers, and 11,853 farmers (20% of coffee farmers).
CAFI’s grant will support 13,500 cocoa farmers and 7.500 coffee farmers.
The subsidy policy program will utilize Producer Counter data to provide farmers with funding and extension services.
The Producer Counter was introduced in 2021, making it easier for farmers from Cameroon’s various agricultural regions to access government subsidies and extension services.
The main prerequisite for the grant is registering with FODECC and depositing at least 60% of the investment amount into a financial institution.
The grant will mostly be provided through vouchers for acquiring farm inputs, crops for propagation, pesticides, equipment, and infrastructure to support production. These vouchers will correspond to 40% of the farmer’s investment.
The subsidy program has proven successful in the past.
FODECC announced the allocation of US$10 million in 2021 in subsidies to cocoa and coffee farmers, resulting in an overall turnover of US$26 million.
Gabriel Mbaïrobe, Cameroon’s agriculture minister, said, “The assessment of agricultural subsidies scheduled for 2023, conducted a few months ago, showed a realization rate of 99.97% for agricultural subsidies under the FODECC Producer Counter and 79% for other entities.”
The overall objective of the subsidy policy program is to inject an estimated US$82 million into coffee and cocoa production in Cameroon over the next five years.
These subsidy programs are in line with the government’s intention of doubling the country’s cocoa and coffee production by 2030.
In addition to the subsidy program, the government is also set to invest US$28 million in training farmers and more than US$10 million in modernizing farms.
The subsidy investment initiative comes as the IMF is urging economic and structural reforms in Africa, especially in food and agriculture.
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