The International Monetary Fund (IMF), in its report on “Regional Economic Outlook for Sub-Saharan Africa” published this month of May 2017, notes that many countries, in 2016, suffered from the sharp fall in commodity prices.

“This is particularly the case for countries exporting commodities, particularly oil exporting countries, such as Angola, Nigeria and the countries in the Central African Economic and Monetary Community (CEMAC)”, indicates the IMF. According to this report, the delays observed in the execution of necessary adjustments lead to an increase in the public debt, create uncertainty, restrict investments and could possibly generate even more important problems in the future.

“For the most affected countries, it is still urgent to clean up the public finance sector to put an end to the decrease in foreign exchange reserves and offset losses in budget revenues, especially in the CEMAC countries”, repeats the IMF. The insistence of this global financial institution is in direct line with the alarm raised in April by Kadima Kalondji, Resident Representative of the IMF in Cameroon.

In 2010, while visiting Libreville in the framework of a seminar addressed to media professionals in the sub-region, Kadima Kalondji assured that the community’s foreign exchange reserves were FCfa 6,000 billion. But these reserves have since dropped to FCfa 2,000 billion, therefore an erosion of FCfa 4,000 billion in 2016.

The Representative of the IMF then pointed an accusing finger at the fall in revenues and oil exports as well as the explosion in public investment expenditure in a difficult and unfavourable financial environment for oil-based economies.

S.A

The general management of Ecobank Cameroon announced in a press release that in 2017, the company is focusing on digital channels to boost the financial inclusion currently estimated at 20% in the country, for a population of over 20 million people.

To exceed the rate of access to banking services of 20%, Ecobank indicates that it will capitalise on digital services such as “Ecoank Mobile App”, internet banking for private and corporate customers, the use of bar codes for payments, and banking partnerships with third parties. “The digital strategy in question directly promotes one of the main development factors of our economies, which is, financial and economic inclusion of the population. Ecobank will thus be able to reach and serve a greater number of clients in Cameroon, including those who do not have any bank account”, the bank explains.

Already in 2016, the banking group highlighted, the digital transformation enabled the company to consolidate its growth in 2016 with an increase of 23% in the earnings before tax (FCfa 13.840 billion) compared to 2015, and a rise in the equity yield ratio at 50%. In Cameroon, as in Africa in general, Ecobank is even considering merging a number of branches for a better digital optimisation. The objective of the Pan African group is to serve 100 million clients by 2020 against the current 11 million.

S.A

The Cameroonian microfinance outfit Express Union (EU) which has lagged behind telecoms operators MTN and Orange in Mobile Money since 2011, has just launched an offensive aiming to entice.

To this end, Express Union, is actually inviting traders, credit retailers (call-boxes), dealers, hairdressers, shop keepers and economic operators to join the network of franchise/retailers of the service "Express Union Mobile Money". The microfinance company promises up to 40% in commission on charges in the form of micro credits to develop subscriber activities.

The offer of EU appears enticing because it is higher than the percentage of 5% that call-boxes, for example, receive from MTN and Orange for the different types of transfers. Considerably more, Express Union Mobile is proposing a commission nearer to the 50% that the Union of Delegates and Commercial Distributors of Telecom Products in Cameroon (Syndicat des Délégués et Commerciaux Distributeurs des Produits des Télécommunications au Cameroun - SYDECDIPROTEC) claim, often through strikes, at the duopoly Orange-MTN.

As a reminder, the Telecoms Regulatory Body in Cameroon indicates that, since its launch in 2011, this sector recorded up until 2014 transactions totalling FCfa 72 billion. This amount corresponds to 9 million transactions via SMS. To date, more than 6,000 Mobile Money payment points exist throughout Cameroon.

S.A

The Cameroonian government proceed on 17 May 2017, with a new issuance of fungible Treasury bonds (BTA in French) worth FCfa 5 billion and with a maturity of 52 weeks. The results of this auction session are expected tomorrow 18 May 2017, we learned.

Generally speaking, the Cameroonian public Treasury always succeeded in its fundraising operations on BEAC’s government securities market, despite the competition on this market which has become very tough with the arrival these past months of new States such as Equatorial Guinea or Congo.

As a reminder, during the 2^nd quarter of 2017, through these public securities operations, the Cameroonian government is planning to raise between FCfa 60 and 70 billion globally on BEAC’s market. FCfa 300 billion in total are scheduled to be raised for the budget year 2017, through the issuance of public securities on capital markets.

BRM

The Financial Markets Commission (CMF), regulatory body of the Douala Stock Exchange (DSX), the stock market in Cameroon, just published a press release advising investors against the activities of Société d’aménagement de l’Océan (Soado).

This company, revealed CMF, recently met with the general public, in Douala, the economic capital of the country, and Kribi, a seaside town in the Southern region; to raise funds to finance a real estate project called “Kribi horizon 2020”.

However, CMF points out, “said company is not authorised to collect subscriptions and deposits on behalf of the Cameroonian public” and “to date does not meet the conditions to publicly trade and the operation in question has not been approved by the Financial Markets Commission”.

BRM

Ecobank Cameroon announced that it launched in February 2017 the app “Ecobank Mobile” enabling clients to send and receive money instantly in 33 African countries (Côte d'Ivoire, Gabon, Benin, Burkina Faso, Ethiopia…) including Cameroon. The parent company, Ecobank Transnational Incorporated, is for its part implanted in 36 African countries via its subsidiaries.

Based on the explanations provided by Longo Manasse, Head, Cards and Digital Products at the Pan African bank, users can also open a free digital account. This unique account can be opened at any time instantly without having to provide any reference or document. “This is an important stage in our ambition to digitise the country's banking system”, explains Gwendoline Abunaw, Deputy Managing Director at Ecobank Cameroon.

With this new app, the financial establishment is pleased to be the first bank to launch a digital product in Cameroon which also enables users to make purchases, transact or trade without using cash.

Ecobank Cameroon has been posting commendable performances for the 2 past years. Indeed, it managed to moved from the 5^th spot in the top list of Cameroonian banks to become 4^th behind Afriland First Bank, Bicec, and Société Générale.

S.A

At the end of the year ended 31 December 2016, the Société Africaine Forestière et Agricole du Cameroun (SAFACAM), agro-industrial company listed on the Douala Stock Exchange (DSX), had FCfa 716 million in net profit after tax, we learned in the financial statements just published by SAFACAM.

In comparison to the previous year, this net profit has decreased by more than 50%, the company ending the year 2015 with a net earning after tax of FCfa 1.8 billion. According to SAFACAM, in spite of an increase in the turnover of the company (particularly due to oil palm kernel pressing activities which started last year), this under-performance is mainly explained by a drop of 13% in the production of palm oil, and the fall of the average selling price for rubber (-4%).

Despite these mixed performances, SAFACAM should pay a global dividend of FCfa 1.6 billion (resources were taken from the account for Retained Earnings from previous years to add to the net profit for 2016) to its shareholders, with FCfa 1,310 per share, we learned.

Brice R. Mbodiam