businessincameroon.com

Several international banks, including four African financial groups are vying for the purchase or equity participation in the Commercial Bank of Cameroon (CBC), while the mandate of the interim administration expires next month.
Within a month, it will end the mandate of the provisional administration of the Commercial Bank of Cameroon (CBC). Yet another term in reality, since this is almost two and a half years since the bank was placed under temporary administration by the Banking Commission of Central Africa (COBAC). Officially, the regulatory body and the Cameroonian government officials as well as the CBC did not say more about this, waiting probably until the end of the process. Sources familiar with the matter, however, suggest that several international and African banking groups would be interested in taking over the facility. Among African banks whose names would come back quite often, figure prominently the Financial Bank, already present in Benin, Gabon, Guinea, Chad and Togo. The firm has taken over late last year, First Trust Savings and Loan, a microfinance institution (MFI) and was also in the running for the resumption of International Finance Company (COFINEST), another structure of microfinance, finally liquidated in February 2011 by COBAC, after more than three years of interim administration.
Besides the two South African firms, reliable information announces also among the major potential bidders for the CBC, the Bank of Africa, which is a subsidiary of the Moroccan Foreign Trade Bank (BMCE).

South Africans and Moroccans in the race

Other pan-African banking group, who will also be involved in the acquisition of CBC, is the giant South African Standard Bank. COBAC experts as well as experts from the Ministries of South African and Cameroonian economy evoked, in favor of a South African economic mission in Cameroon in last January, the opportunity for this banking giant considered as one of the most important continent's financial groups, of wiling to open a subsidiary in Cameroon. In this context, said a source close to the case, the recovery of the CBC might be an excellent opportunity for the South African multinational to launch its activities in Cameroon, this country actually representing the starting point and the main hub of a deployment program for sub-regional coverage throughout the Economic and Monetary Community of Central Africa (CEMAC).
Besides the two South African firms, reliable information announces also among the major potential bidders for the CBC, the Bank of Africa, which is a subsidiary of the Moroccan Foreign Trade Bank (BMCE).

Nearly three years ago, Jaloul Ayed, then director and CEO of BMCE, had clearly promised in the aftermath of a series of consultations with the Cameroonian authorities and the local business community, the creation of a subsidiary of the BMCE in Douala, indicating that the project was advanced enough, the opening of the representative in Cameroon being suspended only till the approval of COBAC.
The business plan of BMCE, unveiled at the occasion had, among other priorities for financing investment and development of real estate. It is therefore understandable that the possibility to redeem the CBC can seriously interest the Moroccan group, particularly as this Cameroonian bank, which boasts a good sub-regional basis, is present in most countries of the CEMAC zone.

Equity participation of the State of Cameroon

There are still four months, the promoters of the CBC, including the chairman of the board of directors Yves-Michel Fotso, had clearly indicated that the Ivorian insurance group NSIA had shown interest in taking actions at the CBC. A reorganization plan proposed by the bank's shareholders could be realized more smoothly, especially that in the same time, a Qatari bank was also involved in the operation. These examples demonstrate that the CBC interests a lot of potential buyers, which bodes a return to serenity for which this financial institution placed under provisional administration is at the center of a controversy in Cameroon.
Two weeks ago, the CBC was the head of a syndicate of local banks to provide financial assistance of 6.5 billion FCFA to the Cotton Development Corporation (SODECOTON) and allow the company to redeploy its activities.
Latest news are showing that any remaining misunderstandings between COBAC and the Cameroon government on the reorganization plan of the CBC could be lifted because the Cameroonian authorities, who have challenged the approach of the organ in charge of regulation, would have appealed to the Arbitration Court of CEMAC based in N'djamena, in Chad, for a redefinition of the facts that led COBAC to place the CBC under provisional administration. This complexity is being lifted, there is hope for a turnaround in the bank, especially as to the Cameroonian authorities are in favor of making equity participation of the state, and it is out of question to consider liquidation of the CBC.
Achille Mbog Pibasso, Douala