logoBC
Yaoundé - 28 March 2024 -
Finance

Cameroon: State companies recorded XAF224 bln cumulated loss in 2017-2019 (official)

Cameroon: State companies recorded XAF224 bln cumulated loss in 2017-2019 (official)
  • Comments   -   Wednesday, 08 September 2021 17:42

(Business in Cameroon) - Over the 2017-2019 period, the 44 state-owned companies in the government portfolio recorded XAF224 billion losses, a document attached to the 2021 finance bill estimates; 2019 was the most daunting year with XAF119 billion recorded by those companies. This was twice the losses they recorded in 2017 (XAF48 billion losses ) and even in 2018 (XAF57 billion).

The net losses affect the state budget since the government is obliged to provide various support for recapitalization and rehabilitation, the document explains. For instance, in 2019, the government disbursed XAF7.2 billion (out of a budgeted XAF10 billion) as state-owned companies’ rehabilitation subsidies. That same year, three companies (Matgénie, EDC, and Cicam) received XAF5 billion of current account advances from the government. Apart from undermining fiscal balance, those losses accumulated over the years reduce the companies’ equity, therefore, increasing insolvency risks. We learn.

Let’s note that there are nevertheless companies performing well. For instance, the companies in the tertiary sector generated a cumulated XAF8.7 billion profit in 2019. Also, the government reveals, that year, state companies operating in three sub-sectors (out of nine) generated profits. The profit-generating sub-sectors are water and energy, hotel and catering, as well as finance and insurance.

Brice R. Mbodiam

mtn-cameroon-sees-record-growth-with-cfa325-7bn-revenue-in-2023-amid-market-challenges
MTN Cameroon reported a robust revenue of CFA325.7 billion for 2023. According to data released on the Johannesburg Stock Exchange in South Africa, this...
cameroon-s-customs-enforces-air-cargo-regulations-threatens-fines-for-non-compliance
Edwin Fongod Nuvaga, the Director-General of Customs in Cameroon, has issued a reminder to airlines about their obligations to comply with standard...
cameroon-s-brewer-sabc-surpasses-decade-s-average-annual-investment-in-2023
Cameroon’s brewing company SABC, a local subsidiary of the Castel Group, claimed a cumulative investment of CFA313 billion over the past decade, as...
cameroon-sabc-s-turnover-falls-by-cfa4bn-yoy-in-2023-despite-increase-in-sales
Cameroonian brewing company SABC announced it has wrapped up 2023 with a turnover of around 729 billion FCFA, slightly down by CFA4 billion compared to...

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 »