Following two consecutive years of substantial increases in fertilizer import volumes, reaching 73,724 tons in 2022 and 100,000 tons in 2023, Cameroon must expedite its plans for local fertilizer production facilities to curb expenditures in this sector.
Financial Strain on the Economy
Fertilizer imports have cost Cameroon 173.9 billion FCFA from 2021 to 2023, according to the National Institute of Statistics (INS). The data reveals annual increases in import volume of 82% in 2022, totaling 129,600 tons and costing 66.4 billion FCFA (compared to 36.5 billion FCFA in 2021), and a further 76.2% increase in 2023, reaching 228,326 tons and costing 70.9 billion FCFA (a 6.7% increase in value).
The INS highlights that costs surged in 2022 due to the Russo-Ukrainian conflict, as Russia is a major fertilizer supplier to Cameroon. These escalating costs are impacting the country’s trade balance, while plans for local fertilizer production facilities struggle to materialize.
Stalled Projects and Negotiations
Invest in Cameroon cites the example of a project by German company Ferrostaal in Limbé, in the Southwest region, to establish a facility with an annual production capacity of 600,000 tons of ammonia and 700,000 tons of urea.
Although a preliminary commercial agreement for natural gas supply was signed in 2013 with EurOil Ltd and the National Hydrocarbons Corporation (SNH), negotiations have since stalled for this project, estimated to cost around 2 billion USD.
Sources within the Ministry of Economy reveal that “negotiations are stumbling over the proposed gas price, which makes the project unprofitable. The matter is now with the SNH.”
New Initiatives on the Horizon
In late June, the interim Minister of Industry, Fuh Calistus Gentry, unveiled a government project for a fertilizer plant in Douala, which Gaz du Cameroun, the subsidiary of British company Victoria & Gas operating the Logbaba gas fields, has already agreed to supply. The feasibility study, funded by the state, is expected to commence this year.
Furthermore, Vision Global aims to construct two production units for chemical and organic fertilizers in Yaoundé and Limbé, respectively. These projects, with a combined estimated cost of approximately 816 million USD and feasibility studies underway, are expected to produce “230,000 tons of ammonia and 400,000 tons of urea per year,” according to the minister.