Tche Irene Morikang
5 March 2008
For sometime now, there has been a galloping increase in the prices of some basic commodities and services.
The food and building materials sectors are the hardest hit. Cameroonians are finding it difficult to make ends meet as they are obliged to pay more to have fish, cooking oil, rice, flour, beef, chicken, pork, milk, etc. on their table. The price hike in building materials is accentuated by scarcity. Work at most construction sites, for example, has been suspended for lack of cement. Most people are on a loss on what to do. But must we despair? The answer is no. There are reasons to anticipation that the tough times consumers are going through are but the darkest moments before dawn. Yes, the dawn of a brighter day.
There is hope in the horizon if we have to go by the actions around. Already, concrete measures have been taken to satisfy some urgent demands. Such is the case with fuel. Government has downed the prices of a litre of petrol by six francs, gas oil by five francs and kerosene by five francs. Consumers are therefore paying less. But someone is making up for the loss. And that someone is the State. Because of last week's reduction in fuel prices, government's subvention for petroleum products will increase by FCFA five billions each year. This goes to add to the FCFA 30 billion which the State is already pumping into the production and commercialisation of fuel. In effect, things could have been worse if the State were not footing part of the fuel bills of Cameroonians. For each litre of petrol (super) consumed, the State is paying FCFA 106 frs, for each litre of kerosene it disburses FCFA 227 frs and for each litre of gasoil FCFA 137 frs. As for cement, the government is bent on making sure that the precious commodity is available and affordable. After liberalising importation, the government last week ordered for a drop in customs duty on ordinary cement.
As for food items and other services, things are bound to get better. For the past couple of days, there has been a multiplicity of high level meetings all geared at seeking a lasting solution to the prevailing price hikes in the country. Yesterday, the Minister of Trade began meeting with business persons to find out ways to render their goods cheaper and more accessible. By the time the meetings end tomorrow, Minister Mbarga Atangana would have a clear idea of what it will take to reduce the price of fish, rice, flour, oil, chicken, salt, sugar, milk, beef, pork, building materials and even water, electricity and telephone bills.
The Commerce boss is simply taking the relay from the Prime Minister and Head of Government, Ephraim Inoni who last Monday instructed the Ministers in charge of economic issues to seek fiscal solutions (customs duty and VAT) that will facilitate a drop in the prices of basic commodities. A similar move had been taken in September 2006. Then, the Head of State, Paul Biya, thoughtful of the plight of Cameroonians, signed an ordinance instructing a reduction in the custom duties of frozen fish, rice, salt, flour and maize and their exoneration from Value Added Tax.
All these actions would however be useless if consumers do not feel the impact in their pockets. Stories abound of how some dishonest business persons divert tax exonerated goods meant for the local markets to other neighbouring countries where market prices are more competitive. Others have simply increased their profit margin, watering down the possibility of consumers buying at a cheaper price. It is therefore important that in the present move, whole sellers and retailers should be honest and made to respect their gain margins so that consumers can also feel the impact of government's actions.
In effect, improving the livelihood of Cameroonians is a permanent concern of the Head of State as he is aware of the sacrifices which his people have been making. "Many households are facing great difficulties in coping with the various family expenses. Where illness or unemployment sets in, the situation becomes dramatic", the President had noted in his address to the nation on 31December 2006. Improving the purchasing power of Cameroonians is therefore crucial. Today, more than ever before, the issue of a salary increase of State employees is topical. And there is every reason to believe in President Biya who has promised a "gradual raising of remuneration in the coming months".
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