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(Business in Cameroon) - Following a request from transporter unions for an adjustment in fares after the recent fuel price hike in the country, the Cameroonian government agreed to increase cab ride prices by CFA50 for urban transport. The decision was taken after the two parties met on February 7 in Yaoundé.
In detail, cab fares will rise from CFA250 to CFA300 (+20%) during the day and from CFA300 to CFA350 at night (+16.6%). For intercity transport, the government decided to keep the price at CFA14 per km. A ministerial decree is expected in the coming days to formalize the decision.
Before this agreement was reached, the unionists sent a letter last week to the Prime Minister, demanding that the night fare be CFA400 –finally set at CFA350- and the intercity trip be raised to CFA16 per km.
Inflation
Other demands of the unionists were also not approved by the government. These include the immediate suppression of the newly introduced transport taxes; the exemption of the payment of the insurance premium sticker; and the immediate decrease of insurance rates.
Let’s note that the approved increase in fares should further boost inflation in the country since transport costs generally impact the entire commercial chain. According to the IMF, inflation in Cameroon is expected to be 6% this year, double the threshold tolerated in the Cemac region. Household purchasing power is also expected to decline, despite the 5.2% increase in civil service salaries decided by the government.
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