Cameroon’s sugar industry is facing a critical moment as Somdia, a major investor, abruptly withdraws from the Sosucam operation. Behind this decision lies a web of unmet promises, regulatory manipulation, and a shadowy network of import quotas that have crippled local production.
The company’s departure follows a decade-long struggle to maintain profitability in an increasingly distorted market. Despite commitments made by Pierre Castel to national authorities, Somdia has chosen to relocate its operations to Côte d’Ivoire, where it has just signed a landmark $150 million (100 billion FCFA) investment deal in the sugar sector.
How Cameroon’s sugar market became unsustainable
According to industry observers, the collapse of Sosucam’s competitiveness stems from a deliberate policy of granting lucrative sugar import licenses to regime-connected elites. These actors, often acting as fronts for powerful figures, have flooded the domestic market with cheaper imported sugar, making it impossible for local producers to compete.
«For years, Somdia has been the backbone of Cameroon’s sugar industry. Yet, despite injecting 4.5 billion FCFA last year to expand production and reduce reliance on imports, the government failed to act. Instead, over 125 billion FCFA worth of sugar was imported, most of it under questionable customs exemptions», explains a long-time industry analyst.
Investigations reveal that some of these importers are not only avoiding duties but are also re-exporting Cameroonian sugar to neighboring countries. Large stockpiles have been discovered at the Ngaoundéré railway terminal, trapped after President Mahamat Idriss Déby reinstated sugar import tariffs to protect local production. This sugar is now being redirected back into Cameroon’s market through unofficial channels, further destabilizing the sector.
Why Côte d’Ivoire won Somdia’s trust
Unlike Cameroon, where import quotas are routinely misused, Côte d’Ivoire maintains a transparent system. The Ivorian government evaluates local production deficits and allocates import permits exclusively to producers during shortages. This ensures that the benefits of trade protection reach those who contribute to the economy, not shadowy middlemen.
«In Côte d’Ivoire, the rules are clear: only those who produce sugar receive import rights. This creates a fair playing field and encourages investment in local capacity», states a regional trade policy expert.
Somdia’s shift to Côte d’Ivoire signals a broader trend of capital flight from Cameroon’s sugar industry, driven by regulatory capture and systemic inefficiency. As the country’s sugar sector struggles to recover, the question remains: will authorities act to restore fairness, or will more producers follow Somdia’s lead?
