Informal Commodity and Derivatives Markets in the CEMAC Region: An Institutional Analysis of the Plantain Banana and Freshwater Fish Value Chains in the Republic of Congo
- Country : Democratic Republic of the Congo
- Subject : Economic Sciences
Keywords : CEMAC region; Congo; Informal markets; Commodities; Derivatives markets; Financial institutions; Agricultural value chains.
Abstract
This article analyzes informal practices observed in commodity exchange markets and derivatives markets within the CEMAC region, with a focus on Congo-Brazzaville. Despite financial reforms implemented since 2019, these markets remain underdeveloped and characterized by significant institutional weaknesses. Based on field surveys conducted with actors in the agricultural and fisheries value chains, this qualitative study highlights local informal practices, known as bissombela, in the marketing of plantain bananas and freshwater fish. The study shows that, although these transactions occur outside the formal regulatory framework, they rely on implicit rules, pricing mechanisms, and contractual commitments similar to those found in organized markets. The findings suggest that informality is not a temporary dysfunction but an endogenous response to failures in the formal financial system. Finally, the article proposes avenues for the gradual integration of informal actors into an appropriate regulatory and exchange market framework.
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