For some years in the capital city of Yaoundé as well as in many other cities of Cameroon, economic operators in general and taxi drivers in particular have been complaining of the persistence shortage of coins in the economy.
Indeed, the quantity of this legal tenders in circulation has progressively and considerately reduce, tokens of 1,2,5,10,25,50,100 and 500frs are limited in circulation. This complex situation has enormous negative consequences in the transport sector, more specifically for taxi drivers, for whom coins are fundamental for their proper functioning.
For some taxi drivers in the city of Yaounde, the disappearance of coins in the city is causing them huge losses in their activities, Roger FOKO, Taxi driver ” we generally obliged to give up some customers because we don’t have coins. Or at sometimes we’re are forced to transport them bellow normal tarifs. These modes of operation are not beneficial to us at the end”. Others are also pointing the altercation they usually having with their clients, either because of a 50frs or 100frs difference. Adamou NJAYOU, taxi driver. ” quarrels between us and some clients they at times don’t declare that they don’t have coins, for a distance of 100frs or 150frs, clients deliberately decide not to tell you they’re holding a 500frs or 1000frs note. it’s only when you transport them to their destination that they give you the money, waiting for their balance. The loss of time generally attributed by this type of quarrel is really enormous,
and therefore has a negative impact on our daily profits”.
Main Causes of the Coins ShortagesAccording to some experts, the disappearance of coins in the city of Yaounde as well as in the other parts of Cameroon, is principally due to the metal use for the production of the coins. Dr Bertrand NDIOMO, Monetarist, “the reality is that the metal used in producing a 100frs Coin, is about 80% more than it face value. As a result, some of those in the jewelery industry, have deliberately decided to use the coins as their raw material”. The precious metals like copper, silver, bronze, used for the production of the token money are scarce that is limited in supply, and the procedures that has to be in order to get autorisation to go in for mining in Cameroon is generally very complex especially when it comes to foreigners. Face you with this barrier most of them developed strategies in order to camouflage the coins of the country for other usage. According to some taxi drivers in Yaoundé, this phenomenon is also caused by the development of a new sector of activity, which is that of the sale of parts. Adamou Njayou “we a few people around Etoug-ebe Carrefour, are specialized in the sale of parts to individuals, to work more easily you have to buy them, this is how the losses also increase. For example 1000frs we give you pieces of 900fts”.Measures takenThis illegal act which is perpetrated and perpetuated by some foreigners as well as Cameroonians has not been neglected by the government and by the monetary authorities. The government of Cameroon through the ministries of defense and finance has intensified control at the borders in order block the outflow of coins in the economy, thanks to this measure, in the month February, close to 27 bags of coins was seized from an Asian business man in Yaounde.
Also, gambling machines operating with the usage of coins has been prohibited. In addition, the Bank of Central African States (BEAC), has put in circulation additional coins in order to curb the shortage of coins in the CEMAC subregion.Despite the measures taken by authorities in order to tackle the phenomenon, the situation is still cobweb, drivers still complained, there has been little or no change in their domain of activity. Some experts proposes that heavy sanctions should be levied on those responsible the transformation of the token in to paper money in other to definitely stop the phenomenon in Yaounde, and in the rest of the country. How ever extra efforts has to be taken by the government and monetary autorités, in order to curb the problem of coins shortages in the long run.