Warehouse receipt financing has proven to provide effective solutions to agricultural production and market risks. This policy brief presents the existing Warehouse Receipt Systems (WRS) in Cameroon, the contributions to agricultural risk management, and recommendations for improvement.
Two major forms of WRS can be distinguished in Cameroon; the third party holding, and community inventory systems. These schemes are beneficial in reducing commodity and input price risks, protecting against harvest losses and increasing access to finance. Notwithstanding the usefulness, WRS activities in Cameroon are fraught with fraud, high defaults, and no legislations. The brief recommends a strong regulatory framework to guide the practices, in addition to increasing capacity building programmes for stakeholders.