COVID-19 Impact: Hike in Prices of Basic Commodities

The increase in the cost of preparing for the just started school year is evidence of the global increase in commodity prices as a result of the COVID-19 pandemic.

As parents and guardians decry the hikes in the price of basic commodities and building material products, government’s drive to impose the respect of homologated prices has met with global price changes imposed by COVID-19 repercussions.

Government’s Response to Hike in Prices

As Cameroonians are struggling to cope with the increase in prices of wheat, soybeans and recently cement as well as building materials just to name these few, the Minister of Trade, Luc Magloire Mbarga Atangana, has called on the World Trade Organisation (WTO) to financially assist African Economies recover from the economic repercussions of the pandemic.

The Minister’s appeal is contained in a note signed September 2, 2021.

Reason for Appeal to WTO

Minister Luc Magloire Mbarga Atangana explained in his note that African economies have been negatively affected since the onset of COVID-19 in 2020.

The Trade Minister argues that things have worsened this 2021.

The Minister’s note elucidates, “Since the onset of COVID-19 in the first quarter of 2020, international supply chains have been experiencing serious disruptions. This year, it seems those disruptions have worsened with rising raw material prices, a steep increase in the prices of food products and an explosion of maritime freight rates.”

Cameroon’s Trade boss brought forth examples of commodities like clinker whose prices have increased by 100%.

Rebar and corn on their part have experienced a hike of over 90%.

Soybeans and wheat are also more expensive as well as other basic commodities.

Trade Minister proposes Way Forward

Remedial solutions to the hike in prices of basic commodities have also been advanced by Cameroon’s Minister of Trade, Luc Magloire Mbarga Atangana in his note.

Luc Margloire Mbarga Atangana suggests that the World Trade Organisation issues a set of strong measures to the institutions and bodies in charge of the world economy. These include the IMF, the World Bank and the G20.

According to the Minister, the measures will serve in cushioning the disastrous consequences of the hike in prices, looming over African economies.

If the Minister’s plea is considered by the WTO, then Cameroonians are sure to heave a sigh of relief in the days and weeks ahead

Eleanor Ayuketah Ngochi

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