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The Yagoua Rice Expansion and Modernization Company (Semry) is continuing its evaluation of the future of its industrial operations. From November 12 to 13, 2025, the state-owned company, in collaboration with the Council for Partnership Contract Support (Carpa/CARPA), held discussions on potential concession options for the Yagoua and Maga paddy processing plants.
Sources indicate that these discussions are not indicative of a decision to privatize or outsource Semry’s industrial activities but rather part of an ongoing exploratory process. The aim is to assess whether the management of the two rice mills should remain internal or be transferred to a private operator. During these talks, the scope of the tasks to be assigned to any potential private partner and the current status of the project were closely examined, as noted by Carpa.
Both Semry and Carpa have agreed to develop a detailed action plan, which will include different scenarios along with their expected economic outcomes. A source familiar with the proceedings revealed that Semry’s primary objective is to identify the most effective way to modernize paddy processing and improve the competitiveness of locally produced rice. Although the idea of a concession remains under consideration, no immediate decisions are expected. Any potential project would likely begin in 2026, pending approval from relevant authorities.
This assessment is part of a broader restructuring effort aimed at strengthening Cameroon’s domestic rice production and reducing its heavy reliance on rice imports, which cost the country hundreds of billions of CFA each year. A recent audit by the Chamber of Accounts of the Supreme Court, covering the period from 2018 to 2021, paints a dire picture of Semry’s financial situation. Despite being a profit-oriented public enterprise, the company has struggled to break even and is unable to cover the true cost of its agricultural services. The audit warns that a company unable to meet the cost of its services is at risk of collapse.
In 2021, Semry spent CFA 2.8 billion to provide agricultural services across 10,348 hectares in Yagoua and Maga, covering mechanized fieldwork, irrigation, maintenance of hydraulic infrastructure, and seed production. However, producers are charged only CFA 102,000 per hectare for rice development services, with a state subsidy of CFA 40,588 per hectare. This results in a loss of CFA 133,959 per hectare, translating to a total deficit of approximately CFA 1.3 billion for 10,000 hectares. Additionally, the report highlights that Semry is selling rice at a significant loss: it costs CFA 743 per kilogram to produce milled rice, but it is sold at CFA 376, generating a loss of CFA 236 per kilogram despite a public subsidy of CFA 131 per kilogram.
To avoid insolvency, the Chamber of Accounts recommends a comprehensive restructuring, including discontinuing costly services such as plowing and direct farmland management.
The idea of transferring Semry’s rice mills to a private operator through a concession presents several potential benefits, including bringing in a partner with stronger financial resources, industrial expertise, and experience in modernizing processing chains. This option could also help Semry better manage its budget and refocus on its core agricultural responsibilities.
However, any such concession would need to be carefully structured, with clearly defined contractual obligations. These would include processing volumes, purchase prices for rice farmers, equipment maintenance, and the modernization of industrial assets. Ensuring a steady supply of locally sourced rice and maintaining affordable prices for both farmers and the domestic market would be key concerns in these negotiations.
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Alternatively, keeping the mills under Semry’s control would allow for full oversight of the rice production and processing value chain, ensuring better integration between irrigation, production, and processing. However, this would require substantial investment in the mills—an investment that Semry, due to its financial difficulties and reliance on sporadic state subsidies, is unable to fund on its own.