Determinants of Failures of Local Agricultural Firms in Cameroon: The Case of Soderim, Ugicaes and Ugirilcopam in the Mbo Plain (Cameroon)

Ediamam Epalle Guy Marcel; Usongo Patience Ajonina

doi:doi:10.11648/j.ijber.20211002.13

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Determinants of Failures of Local Agricultural Firms in Cameroon: The Case of Soderim, Ugicaes and Ugirilcopam in the Mbo Plain (Cameroon)

Ediamam Epalle Guy Marcel, Usongo Patience Ajonina

Published in International Journal of Business and Economics Research (Volume 10, Issue 2)

Received: 29 June 2020 Accepted: 5 March 2021 Published: 30 March 2021

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Abstract

Despite significant financial and technical resources mobilized by the State through financial institutions, local development has not followed the investment curve and the peasantry is still drowned in underdevelopment. In the 1960s, the State of Cameroon launched the five-year development plan where, one of the major components is the development of structuring projects keeping in mind the construction of agro-industrial complexes to serve as models for small farms placed under their supervision. Therefore, specialized development companies (SODES) such as SODERIM, UGICAES and UGIRILCOPAM were created and received 1,200,000,000FCFA, 20,000,000FCFA and 177,000,000FCFA respectively and 5,200,000FCFA grants each per year. However, it is difficult nowadays to appreciate the input of this funding into local development. This study aims at evaluating the contribution of agricultural project financing to local development and its sustainability in the Mbo plain. We used empirical observation based on semi-directive interviews with the managers of SODERIM, UGICAES and UGIRILCOPAM firms (former employees), and questionnaire administration to peasants and agricultural extension agents as well as the exploitation of secondary data collected from the Sub-Divisional Delegation of Agriculture, registers of these firms, and field observation. Results show that SODERIM, UGICAES and UGIRILCOPAM did not foster the development of the Mbo plain and all went bankrupt when funding stopped since they were unable to self-finance. The determinants of these local agricultural firms failure were both external and internal. The infrastructural, political and socio-economic aspects have remained dormant. Thus, financing has not stimulated a new peasant dynamic in an autonomous framework.

Published in	International Journal of Business and Economics Research (Volume 10, Issue 2) This article belongs to the Special Issue Microfinance and Local Development
DOI	10.11648/j.ijber.20211002.13
Page(s)	76-86
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Determinants, Failures, Local Agricultural Firms

References

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[2]	Yaron, J., Benjamin, M., Piprek, G., (1997). Rural finance: Issues, design, and best practices. Environmentally sustainable development studies and Monographs series, The World Bank, Washington, D. C.
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[4]	Malango Kitungano J-L. (2007), Les théories technologiques explicatives de la crise des entreprises publiques congolaise, Mémoire de Master en Sciences politiques et administratives, Université De Lubumbashi, RDC, 110p.
[5]	Ediamam Epalle G. M. (2008) the land issues of the former domain of the Rice Development Society in the Mbo plain (SODERIM) West Cameroon. Master's thesis in Geography, University of Dschang. 128p.
[6]	Feuddjeu G. B. (2002) peasant organizations and food security: the case of rice-growing peasant organizations of west region of Cameroon. DEA dissertation in Geography, University of Dschang. 143p.
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[14]	Guillermou. Y. (2016): Paysans, encadrement étatique et appuis extérieurs: quelles voies pour un développement durable? In savoirs et politiques de financement rural en Afrique subsaharienne. Editions CLE, Yaoundé, p331-334.
[15]	Lutz Goedde & all, (2019), Winning in Africa’s agricultural market. McKinsey’s Denver office. Nairobi, Kenya.
[16]	Dongmo. J. L, Tazo. E, Feudjeu. G. B. (2001): Emergence of UGICAES on a part of the SODERIM estate in liquidation in Santchou (West-Cameroon): explanation of a revenge of peasant agriculture on agro-industry in an immigration zone. Annales of the FASH University of Ngaoundéré, vol VI p5-24.
[17]	Tazo. E, Miendjiem. I. L, Ediamam Epalle G. M. (2010): land issues and the problematic of the revival of agricultural activities on the former SODERIM land (West-Cameroon) In multidisciplinary views on land conflicts and their socio-economic political impacts in Cameroon. Laboratory of Sustainable Development and Territorial Dynamics, University of Montreal. Vol 10. P175-187.
[18]	Eze Christopher et all. (2018): Agricultural financing policies and rural development in Nigeria. The 84th Annual Conference of the Agricultural Economics Society Edinburgh. 20p.
[19]	Mideksa Dabessa Iticha (2020): Review on Determinants of Economic Efficiency of Smallholder Maize Production in Ethiopia. International Journal of Agricultural Economics. Vol. 5, No. 4, 2020, pp. 123-132. doi: 10.11648/j.ijae.20200504.15.

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Ediamam Epalle Guy Marcel, Usongo Patience Ajonina. (2021). Determinants of Failures of Local Agricultural Firms in Cameroon: The Case of Soderim, Ugicaes and Ugirilcopam in the Mbo Plain (Cameroon). International Journal of Business and Economics Research, 10(2), 76-86. https://doi.org/10.11648/j.ijber.20211002.13

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ACS Style

Ediamam Epalle Guy Marcel; Usongo Patience Ajonina. Determinants of Failures of Local Agricultural Firms in Cameroon: The Case of Soderim, Ugicaes and Ugirilcopam in the Mbo Plain (Cameroon). Int. J. Bus. Econ. Res. 2021, 10(2), 76-86. doi: 10.11648/j.ijber.20211002.13

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AMA Style

Ediamam Epalle Guy Marcel, Usongo Patience Ajonina. Determinants of Failures of Local Agricultural Firms in Cameroon: The Case of Soderim, Ugicaes and Ugirilcopam in the Mbo Plain (Cameroon). Int J Bus Econ Res. 2021;10(2):76-86. doi: 10.11648/j.ijber.20211002.13

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@article{10.11648/j.ijber.20211002.13,
  author = {Ediamam Epalle Guy Marcel and Usongo Patience Ajonina},
  title = {Determinants of Failures of Local Agricultural Firms in Cameroon: The Case of Soderim, Ugicaes and Ugirilcopam in the Mbo Plain (Cameroon)},
  journal = {International Journal of Business and Economics Research},
  volume = {10},
  number = {2},
  pages = {76-86},
  doi = {10.11648/j.ijber.20211002.13},
  url = {https://doi.org/10.11648/j.ijber.20211002.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211002.13},
  abstract = {Despite significant financial and technical resources mobilized by the State through financial institutions, local development has not followed the investment curve and the peasantry is still drowned in underdevelopment. In the 1960s, the State of Cameroon launched the five-year development plan where, one of the major components is the development of structuring projects keeping in mind the construction of agro-industrial complexes to serve as models for small farms placed under their supervision. Therefore, specialized development companies (SODES) such as SODERIM, UGICAES and UGIRILCOPAM were created and received 1,200,000,000FCFA, 20,000,000FCFA and 177,000,000FCFA respectively and 5,200,000FCFA grants each per year. However, it is difficult nowadays to appreciate the input of this funding into local development. This study aims at evaluating the contribution of agricultural project financing to local development and its sustainability in the Mbo plain. We used empirical observation based on semi-directive interviews with the managers of SODERIM, UGICAES and UGIRILCOPAM firms (former employees), and questionnaire administration to peasants and agricultural extension agents as well as the exploitation of secondary data collected from the Sub-Divisional Delegation of Agriculture, registers of these firms, and field observation. Results show that SODERIM, UGICAES and UGIRILCOPAM did not foster the development of the Mbo plain and all went bankrupt when funding stopped since they were unable to self-finance. The determinants of these local agricultural firms failure were both external and internal. The infrastructural, political and socio-economic aspects have remained dormant. Thus, financing has not stimulated a new peasant dynamic in an autonomous framework.},
 year = {2021}
}

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TY  - JOUR
T1  - Determinants of Failures of Local Agricultural Firms in Cameroon: The Case of Soderim, Ugicaes and Ugirilcopam in the Mbo Plain (Cameroon)
AU  - Ediamam Epalle Guy Marcel
AU  - Usongo Patience Ajonina
Y1  - 2021/03/30
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N1  - https://doi.org/10.11648/j.ijber.20211002.13
DO  - 10.11648/j.ijber.20211002.13
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 76
EP  - 86
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20211002.13
AB  - Despite significant financial and technical resources mobilized by the State through financial institutions, local development has not followed the investment curve and the peasantry is still drowned in underdevelopment. In the 1960s, the State of Cameroon launched the five-year development plan where, one of the major components is the development of structuring projects keeping in mind the construction of agro-industrial complexes to serve as models for small farms placed under their supervision. Therefore, specialized development companies (SODES) such as SODERIM, UGICAES and UGIRILCOPAM were created and received 1,200,000,000FCFA, 20,000,000FCFA and 177,000,000FCFA respectively and 5,200,000FCFA grants each per year. However, it is difficult nowadays to appreciate the input of this funding into local development. This study aims at evaluating the contribution of agricultural project financing to local development and its sustainability in the Mbo plain. We used empirical observation based on semi-directive interviews with the managers of SODERIM, UGICAES and UGIRILCOPAM firms (former employees), and questionnaire administration to peasants and agricultural extension agents as well as the exploitation of secondary data collected from the Sub-Divisional Delegation of Agriculture, registers of these firms, and field observation. Results show that SODERIM, UGICAES and UGIRILCOPAM did not foster the development of the Mbo plain and all went bankrupt when funding stopped since they were unable to self-finance. The determinants of these local agricultural firms failure were both external and internal. The infrastructural, political and socio-economic aspects have remained dormant. Thus, financing has not stimulated a new peasant dynamic in an autonomous framework.
VL  - 10
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Author Information

Ediamam Epalle Guy Marcel

Department of Geography, University of Buea, Buea, Republic of Cameroon
Usongo Patience Ajonina

Department of Geography, University of Buea, Buea, Republic of Cameroon

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Ediamam Epalle Guy Marcel, Usongo Patience Ajonina. (2021). Determinants of Failures of Local Agricultural Firms in Cameroon: The Case of Soderim, Ugicaes and Ugirilcopam in the Mbo Plain (Cameroon). International Journal of Business and Economics Research, 10(2), 76-86. https://doi.org/10.11648/j.ijber.20211002.13

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Ediamam Epalle Guy Marcel; Usongo Patience Ajonina. Determinants of Failures of Local Agricultural Firms in Cameroon: The Case of Soderim, Ugicaes and Ugirilcopam in the Mbo Plain (Cameroon). Int. J. Bus. Econ. Res. 2021, 10(2), 76-86. doi: 10.11648/j.ijber.20211002.13

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AMA Style

Ediamam Epalle Guy Marcel, Usongo Patience Ajonina. Determinants of Failures of Local Agricultural Firms in Cameroon: The Case of Soderim, Ugicaes and Ugirilcopam in the Mbo Plain (Cameroon). Int J Bus Econ Res. 2021;10(2):76-86. doi: 10.11648/j.ijber.20211002.13

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@article{10.11648/j.ijber.20211002.13,
  author = {Ediamam Epalle Guy Marcel and Usongo Patience Ajonina},
  title = {Determinants of Failures of Local Agricultural Firms in Cameroon: The Case of Soderim, Ugicaes and Ugirilcopam in the Mbo Plain (Cameroon)},
  journal = {International Journal of Business and Economics Research},
  volume = {10},
  number = {2},
  pages = {76-86},
  doi = {10.11648/j.ijber.20211002.13},
  url = {https://doi.org/10.11648/j.ijber.20211002.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20211002.13},
  abstract = {Despite significant financial and technical resources mobilized by the State through financial institutions, local development has not followed the investment curve and the peasantry is still drowned in underdevelopment. In the 1960s, the State of Cameroon launched the five-year development plan where, one of the major components is the development of structuring projects keeping in mind the construction of agro-industrial complexes to serve as models for small farms placed under their supervision. Therefore, specialized development companies (SODES) such as SODERIM, UGICAES and UGIRILCOPAM were created and received 1,200,000,000FCFA, 20,000,000FCFA and 177,000,000FCFA respectively and 5,200,000FCFA grants each per year. However, it is difficult nowadays to appreciate the input of this funding into local development. This study aims at evaluating the contribution of agricultural project financing to local development and its sustainability in the Mbo plain. We used empirical observation based on semi-directive interviews with the managers of SODERIM, UGICAES and UGIRILCOPAM firms (former employees), and questionnaire administration to peasants and agricultural extension agents as well as the exploitation of secondary data collected from the Sub-Divisional Delegation of Agriculture, registers of these firms, and field observation. Results show that SODERIM, UGICAES and UGIRILCOPAM did not foster the development of the Mbo plain and all went bankrupt when funding stopped since they were unable to self-finance. The determinants of these local agricultural firms failure were both external and internal. The infrastructural, political and socio-economic aspects have remained dormant. Thus, financing has not stimulated a new peasant dynamic in an autonomous framework.},
 year = {2021}
}

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TY  - JOUR
T1  - Determinants of Failures of Local Agricultural Firms in Cameroon: The Case of Soderim, Ugicaes and Ugirilcopam in the Mbo Plain (Cameroon)
AU  - Ediamam Epalle Guy Marcel
AU  - Usongo Patience Ajonina
Y1  - 2021/03/30
PY  - 2021
N1  - https://doi.org/10.11648/j.ijber.20211002.13
DO  - 10.11648/j.ijber.20211002.13
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 76
EP  - 86
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20211002.13
AB  - Despite significant financial and technical resources mobilized by the State through financial institutions, local development has not followed the investment curve and the peasantry is still drowned in underdevelopment. In the 1960s, the State of Cameroon launched the five-year development plan where, one of the major components is the development of structuring projects keeping in mind the construction of agro-industrial complexes to serve as models for small farms placed under their supervision. Therefore, specialized development companies (SODES) such as SODERIM, UGICAES and UGIRILCOPAM were created and received 1,200,000,000FCFA, 20,000,000FCFA and 177,000,000FCFA respectively and 5,200,000FCFA grants each per year. However, it is difficult nowadays to appreciate the input of this funding into local development. This study aims at evaluating the contribution of agricultural project financing to local development and its sustainability in the Mbo plain. We used empirical observation based on semi-directive interviews with the managers of SODERIM, UGICAES and UGIRILCOPAM firms (former employees), and questionnaire administration to peasants and agricultural extension agents as well as the exploitation of secondary data collected from the Sub-Divisional Delegation of Agriculture, registers of these firms, and field observation. Results show that SODERIM, UGICAES and UGIRILCOPAM did not foster the development of the Mbo plain and all went bankrupt when funding stopped since they were unable to self-finance. The determinants of these local agricultural firms failure were both external and internal. The infrastructural, political and socio-economic aspects have remained dormant. Thus, financing has not stimulated a new peasant dynamic in an autonomous framework.
VL  - 10
IS  - 2
ER  -

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