Yaoundé - 30 September 2023 -

Cameroon: Yango reaches deal with unionists to have its suspension lifted

Cameroon: Yango reaches deal with unionists to have its suspension lifted
  • Comments   -   Tuesday, 21 February 2023 18:13

(Business in Cameroon) - After a unionits-backed suspension notice was issued against it in Cameroon, Yango rushed to reach an agreement with the association of transporters' unions to have the suspension lifted. The agreement was signed on February 15 by Enangue Holding, which manages the fleet of vehicles registered on the Russian platform in Cameroon. It will run for five years renewable.

The partnership seeks to “modernize and better secure urban transport via the Yango platform". Specifically, Enangue Holding is committed to "supporting the unions and the Cameroonian government in the promotion of prevention and road safety as well as in the fight against clandestine transport and insecurity in Cameroon"; "registering in the platform only vehicles and drivers who have the documents required by the legislation in force"; "training and providing all the technical and organizational support to the drivers' union organization", "paying a training bonus for each driver after training at the Hub"... In return, the drivers' unions have committed to "making themselves available for organizational and operational support" and "to supporting the establishment of Yango in Cameroon".

The parties have also decided to “collaborate to gradually renew the fleet or cabs used for urban transport in Cameroon”; "obtain subsidies from the Cameroonian government for the contribution to the reduction of greenhouse gases"; "collaborate with the government in the promotion of natural gas for vehicles (NGV)".

According to article 6 of their agreement, “the financing of their activities will be done according to a system of commission levied on the turnover generated by the members of the union registered in the fleet created by Enangue Holding, for the benefit of the union". The same article stipulates that "Enangue Holding will pay a monthly royalty to the syndicate". This amount is defined in an annexed document to which we did not have access.

A strong ally to get the suspension lifted

This agreement is considered a victory for Yango. Before the suspension was pronounced, unionists met with the government to discuss the increase in fuel pump prices and asked for the suspension of Yango's activities. For a long time, the taximen have accused Yango of leading an "unfair competition". The reason is that this company has reportedly never required drivers who use its application to comply with local transport rules, as explained by Patrice Samen, the president of urban transporters’ unions.

"We want to work with social partners in a win-win framework to contribute to the improvement of the transport ecosystem in Cameroon," said Rachid Moulay El Rhazi, head of government relations of this Russian platform.

 "We need the city cab transport to modernize. The unions are not opposed to Yango. We are just making sure that everyone is in order, that the laws on public transport in Cameroon are respected," said Patrice Samen. 

Yango does not hide its ambitions in Cameroon, which the company presents as "a country with great potential". Unfortunately, its plan has come up against numerous disagreements with the transport unions. However, Rachid Moulay El Rhazi hopes the suspension will be lifted in the coming days.

Michel Ange Nga

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