In recent years, the United States has increasingly engaged in commercial relations with Africa, yet many markets and sectors remain untapped. Cameroon serves as a prime example of this potential.
While U.S. firms have historically concentrated on Cameroon’s hydrocarbons, the decline in reserves and output has created a pressing need for economic diversification. To sustain growth and protect foreign exchange reserves, Cameroon must look beyond hydrocarbons and its two key commodities—cocoa and timber—could be essential to this strategy.
Cameroon ranks among the top ten cocoa exporters globally, serving as the country’s second-largest commodity export after hydrocarbons. Notably, over 90 percent of the cocoa produced in Cameroon comes from smallholder farmers, providing income for more than five hundred thousand citizens. Recent years have witnessed a surge in the country’s cocoa exports, peaking in 2023.
This rise in cocoa trade comes at a time when other major cocoa producers such as Ghana and Côte d’Ivoire are facing challenges due to crop diseases and drought, resulting in a global price surge. This situation has prompted a scramble among sourcing firms to secure cocoa from Cameroon, creating a unique opportunity for U.S. firms.
U.S. importers, particularly those relying on cocoa paste, have historically depended on Ghana and Côte d’Ivoire. With the domestic cocoa market valued at over $15 billion, Cameroon presents an opportunity to diversify sourcing away from these two countries, particularly as the Cameroonian government plans to boost cocoa paste exports to 50 percent of total output.
In addition to cocoa, Cameroon is recognized as a significant exporter of tropical timber, a sector in which the U.S. typically sources resources from South America and Asia. With around eighty out of three hundred to five hundred commercially grown tropical timber species present in Cameroon, including high-value varieties such as Ayous and Ebony, the potential for growth is substantial.
Currently, Cameroon’s timber trade is dominated by exports of logs and sawn wood, which are largely unprocessed. However, the government is making strides to shift this dynamic by limiting unprocessed timber exports through doubled export duties, aiming to enhance domestic timber processing.
Access to Cameroon’s logging land is governed by Forestry Management Units (FMUs) allocated through public tenders, although this process can be vulnerable to political influence. Furthermore, inadequate oversight permits illegally sourced timber to infiltrate the legal supply chain, posing challenges for compliance with international conservation standards.
Despite these concerns, timber exports have been on the rise and are projected to continue increasing through 2025, highlighting the untapped potential in this sector. As the timber industry is essential for various U.S. industries and cannot be cultivated domestically, imports from Cameroon could help meet significant demand while maintaining jobs within the U.S.
However, current timber imports involve complex logistics and can be cost prohibitive. Though Cameroon is producing a limited range of veneer and plywood, government incentives are being offered to promote further domestic processing.
To turn the potential in Cameroon’s cocoa and timber sectors into reality, U.S. policymakers must focus on encouraging greater U.S. investment. Political risk and bureaucratic hurdles often deter investment, creating hesitance among companies to commit capital to these ventures. Targeted support, especially early-stage equity, could mitigate these risks for U.S. firms.
The administration of President Donald Trump has proposed reorganizing development finance institutions to streamline funding, thereby providing U.S. companies with the necessary financial tools to enhance their presence in Cameroon. The anticipated budget increase for the Development Finance Corporation (DFC) in fiscal year 2026 represents a pivotal opportunity to channel resources into these critical sectors.
Moreover, preserving trade preferences for Cameroonian cocoa and timber is fundamental. Currently benefiting from duty-free access under the African Growth and Opportunity Act (AGOA), these products face potential tariffs after the act’s expiration in September. This would not only affect Cameroonian goods but also complicate imports from across Africa, adding logistical challenges and increasing costs for U.S. firms.
To avert disruption and ensure a stable supply chain, bilateral agreements are essential for maintaining favorable trade conditions. In discussions with Cameroon, the U.S. should strive to secure continued duty-free access for key agricultural products like cocoa and timber. Such agreements could initially focus on eliminating tariffs, establishing a foundation for broader trade frameworks down the line.
Additionally, the U.S. government has a unique opportunity to support Cameroon’s agricultural infrastructure by investing in local processing capabilities. The U.S. has shown commitment to fostering sustainable, inclusive growth globally and can leverage this to revamp foreign assistance through agencies such as the USDA, State Department, and DFC, targeting infrastructure development and agricultural best practices.
These investments would facilitate not only increased exports but also improved living conditions in Cameroon. Enhanced infrastructure would boost connectivity and resilience across various sectors, maximizing the return on U.S. investments.
In conclusion, U.S. engagement in Cameroon’s cocoa and timber markets presents a significant opportunity for mutual growth. By lowering barriers for U.S. firms and advocating for favorable trade conditions, the stage can be set for a beneficial partnership that strengthens both U.S. industries and the economy in Cameroon.
image source from：atlanticcouncil
