Industry insiders reveal that Somdia’s exit from the Société Sucrière du Cameroun (Sosucam) was not due to internal conflicts, but rather a calculated move to preserve its investments elsewhere.

While Somdia’s leadership claimed family disputes as the reason for leaving Cameroon, financial records tell a different story. The group has recently signed a binding agreement with the Ivorian government, committing to invest 100 billion CFA francs in Côte d’Ivoire’s sugar sector. This shift highlights a deliberate strategy to avoid the mounting challenges faced in Cameroon’s sugar industry.

«Somdia’s departure from Cameroon was not a sudden decision, but the result of a deliberate business strategy. The real issue lies in the Cameroonian market’s saturation with cheap imported sugar, which has crippled local production profitability,» explains a leading economic analyst.

The analyst adds that despite Somdia injecting 4.5 billion CFA francs last year to boost production, the company struggled to compete. «Over 125 billion CFA francs worth of sugar was imported into Cameroon, most of it under questionable circumstances. Some of these imports were allegedly facilitated by influential figures within the regime, who used proxy buyers to secure import licenses. These buyers not only benefited from customs exemptions but also diverted sugar meant for the local market to neighboring countries, creating artificial shortages and driving up prices at home,» he reveals.

This practice has severely undermined local producers like Sosucam, which have seen their market share dwindle. «The situation became unsustainable. While we were investing in our facilities, others were profiteering through illegal import schemes, leaving us with no choice but to reassess our operations,» the analyst notes.

The sugar stockpiled at the Ngaoundéré railway terminal further illustrates the depth of the issue. «Large quantities of sugar, imported under dubious circumstances, are being stored there. These stocks are then reintroduced into the Cameroonian market, exacerbating the crisis,» he explains.

Why Côte d’Ivoire?

«In Côte d’Ivoire, the government regulates sugar imports strictly. Authorities assess production deficits and allocate import quotas exclusively to licensed producers, preventing market distortion by proxy buyers. This ensures fair competition and protects local industry,» the analyst concludes.

Somdia’s move to Côte d’Ivoire signals a broader trend of foreign investors seeking more stable and transparent business environments in West Africa. For Cameroon, the challenge remains: how to reform its sugar sector to retain investment and protect local industries from predatory practices.