logoBC
Yaoundé - 08 December 2022 -
Finance

Cameroon: Banking and Communication activities supported service sector improvement in Q1 2022

Cameroon: Banking and Communication activities supported service sector improvement in Q1 2022
  • Comments   -   Monday, 03 October 2022 18:18

(Business in Cameroon) - The service sector in Cameroon performed well during the first three months of 2022, according to the National Institute of Statistics (INS).

The information and communication services, and the banking services contributed 4.6% of the improvement, the report found. "Information and communication services increased by 13.4% over the period, after 4.7% the previous quarter, boosted by higher consumption of the Internet and greater use of mobile money. The segment contributed 0.3 points to quarterly GDP growth," INS said in its report.

Over the past decade, the Cameroonian government and telecom operators have made significant investments in telecom infrastructure, which have enabled the country to make great progress in Internet access. "From less than 10% in 2007, the Internet penetration in Cameroon reached 30% in 2020," the Minister of Posts and Telecommunications, Minette Libom Li Likeng, said while speaking on August 12, 2020, during the launch of a national campaign on cybersecurity and responsible use of social media in Yaoundé.

Mobile Money

This higher internet use in Cameroon is also the result of "a sharp drop in retail prices," according to a recent report by the International Finance Corporation (IFC), the World Bank’s private arm.

The investments in telecom infrastructure, coupled with the increase in the mobile penetration rate (90% according to the IFC), have also enabled the expansion of mobile money in the country. As a result, Cameroon has become the leader in Mobile Money services across the Cemac zone. Data from the central bank Beac revealed that the country was home to 64.8% of all mobile money accounts and accounted for 73.1% of transactions in the region in 2020.

Another segment that supported the quarterly improvement in the service sector is the banking segment. "The sustained growth of net banking income (NBI) enabled financial services to record a notable performance of 14.6% in the first quarter of 2022 for the third consecutive quarter, contributing 0.4 points to quarterly GDP growth," INS indicated.

Written by Brice R. Mbodiam

Translated from French by Firmine AIZAN

bdeac-issued-3rd-consecutive-bond-on-bvmac-seeking-cfa78-billion
The Development Bank of Central African States (BDEAC) announced the launch of its third consecutive bond issue on the Douala-based Central African Stock...
cameroon-seeks-cfa4-4bln-from-unicredit-bank-austria-for-solar-project
Cameroon wants to borrow CFA 4.46 billion from Unicredit Bank Austria. According to official information, the money will be used to carry out a public...
fitch-maintains-b-rating-for-cameroon-despite-security-and-governance-challenges
The U.S. agency Fitch Ratings issued a report on December 2 maintaining Cameroon's rating at B with a stable outlook on all long-term foreign currency...
62-of-cameroonian-exports-in-2021-went-to-five-countries-ins
Cameroonian exporters shipped goods to 128 countries overall last year, according to a report recently published by the national institute of statistics....

Mags frontpage


Business in Cameroon n110: April 2022

Covid-19, war in Europe: Some Cameroonian firms will suffer


Albert Zeufack: “Today, the most important market is in Asia”


Investir au Cameroun n120: Avril 2022

Covid-19, guerre en Europe : des entreprises camerounaises vont souffrir


Albert Zeufack: « Le marché le plus important aujourd’hui, c’est l’Asie »