logoBC
Yaoundé - 15 August 2022 -
Finance

Cameroon: IMF advises a UBC-NFC Bank divestment plan in the “near term”

Cameroon: IMF advises a UBC-NFC Bank divestment plan in the “near term”
  • Comments   -   Tuesday, 15 March 2022 15:51

(Business in Cameroon) - In its recent Country Report No. 22/75, the IMF discussed the situation of UBC and NFC Bank, two private banks that were recently recapitalized by the Cameroonian government.   

“In the near term, the Staff recommends signing performance contracts with each of the two banks, including a governance framework aligned with best practices, and a strategy for the State to sell its Shares,” the report indicates.  

This recommendation comes just months after the government entered into the two banks’ shareholding. Indeed, in late November 2021, Cameroon officially took over UBC by acquiring 54% of the shares previously owned by Ecobank Transnational Incorporated (ETI). For NFC Bank, there is currently no official communication regarding the shares acquired by the government but, according to local media EcoMatin, it took over the shares previously owned by the Awanga and Co (58.2612%) and  Mutuelle de retraite complémentaire des agents Eneo (24.4802%).

The advice may prompt Cameroon to avoid long restructuring plans as was the case with the Commercial Bank of Cameroon (CBC). The latter was going through a tumultuous provisional administration period (that lasted seven years) when, in 2014, the government of Cameroon took over 98% of its stakes owned by late businessman Victor Fotso at the time. Up to this year (2022), the government’s divestment from CBC is still ongoing.  

Sylvain Andzongo

euro-dollar-fluctuation-raised-cameroon-s-debt-by-cfa420bn-in-one-year
Recent fluctuations between the euro and the U.S. dollar have increased Cameroon's debt by CFA420 billion (+11.2%) between June 2021 and June 2022. Data...
e-guinean-bange-bank-to-get-listed-on-the-bvmac-first-bank-to-join
Guinean Bange Bank is preparing its listing on the regional stock exchange Bvmac. Louis Banga, MD of the stock market, met on August 9 in this regard with...
cameroon-beac-forecasts-brewing-profit-to-fall-in-q3-2022
The Bank of Central African States Beac forecasts the brewing industry in Cameroon to experience a sharp decline in Q3 2022. In its bulletin, the...
cameroon-fuel-subsidies-could-finally-exceed-cfa780-billion-in-2022
The Cameroonian government announced it will approve CFA780 billion in fuel subsidy to keep pump prices unchanged in this harsh period marked by rising...

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 »