Over the past three and half years, the World Bank invested in a total of 19 projects in Cameroon, including 17 national and two regional projects, for a total amount of $2.145 billion, or about XAF1,240 billion.

These projects covered areas such as energy, transport, rural development, education, social protection and health, according to information revealed March 19, 2019 in Yaoundé during the opening of the joint review of the World Bank-Cameroon portfolio. 

“Diversified WB operations in Cameroon is in line with the government's objectives, which, in its strategy for growth and employment, aims to achieve higher middle-income country status by 2035,” said Mazen Bouri, World Bank Program Officer and Director of Operations representative at the Yaoundé Open House on 19 March 2019.

BRM

Cameroonian Treasury is raising, today March 20, 2019, on the Beac securities market an amount of XAF20 billion, official sources said. Monies will be mobilized through the issue of a 13-week treasury bills (BTAs).

Given investors’ interest in Cameroonian operations since the Beac market was launched in 2011, the Treasury hopes this new fundraising will be successful. On February 27 this year, the country successfully raised XAF50 billion on the market with record issue of 26-week BTAs.   

BRM

The National Credit Council of Cameroon (CNC) has just published a note on the Cameroonian banking sector, specifically concerning the period between the second half of 2017 and the first half of 2018.

With regard to the evolution in the Annual Percentage Rate (APR), CNC notes that, on average, the cost of credit granted by banks fell slightly between the second half of 2017 and the first half of 2018 for all customer categories, with the exception of large companies. Indeed, the rate applied to large companies increased from 5.70% to 5.76% between the two periods.

In detail, the average APR fell from 14.09% to 12.89% for individuals and from 9.50% to 9.40% for small and medium-sized enterprises (SMEs). For legal entities other than SMEs and large companies, the rate declined from 7.02% to 6.78%. For public administrations and decentralized local authorities, it went from 6.22% to 6.07%.

According to the credit council, this decrease in the cost of credit granted by banks can be justified, in part, by strong competition in the banking sector ; each institution trying its best to attract customers whose deposits increased from XAF4,029.1 billion in November 2017 to XAF4,175.4 billion in November 2018, an improvement by 3.7% between the two periods under review.

Sylvain Andzongo

Total balance sheet of banks operating in the country reached 5,596.2 billion in November 2018 from XAF5,353 billion November 2017, an improvement by 4.5%, the National Credit Council (CNC) reports.

Customer deposits with banks increased by 3.7% from XAF4,026.1 billion to XAF4,175.4 billion between the two periods. Meanwhile loans grew by 5.8%, from XAF3,318.8 billion to XAF3,512.9 billion. However, the external position of the banking sector deteriorated by 310% (XAF-45.9 billion in November 2017 to XAF-188.1 billion in November 2018).

As for financial institutions, balance sheet grew by 7.7% from XAF396 billion to XAF426.3 billion. Customer deposits increased from XAF33.7 billion to XAF43.8 billion, up 30%.

CNC also noted a 3.3% increase in customer loans, from XAF197.7 billion to XAF204.2 billion during the period under review.

S.A.

In 2018 despite good performances achieved by MTN Cameroon in data (Internet) and Mobile Money, the company witnessed a decline by XAF16 billion in revenues, according to the worksheet in the related financial report issued March 7 this year.

Based on a XAF/ZAR average exchange rate of 1R for XAF45.07 in 2018, and 1R for XAF44.06 in 2017, MTN Cameroon's total revenues in 2018 peaked at R4.549 billion (XAF223.5 billion), against R5.373 billion (XAF239.6 billion) in 2017. This thus reflects a decline by XAF16 billion.

The poor result is attributable to lower voice revenues. In 2018, outgoing voice revenues were R2.778 billion (XAF125.2 billion) against R3.026 billion (XAF133.3 billion) a year earlier. In that segment alone, the company lost XAF8 billion between the two years.

Incoming voice revenues shrunk by XAF6 billion in 2018 to R515 million (XAF23.2 billion), compared to R663 million (XAF29.2 billion) in 2017. Decrease in overall voice revenues cost MTN Cameroon XAF14 billion over the period reviewed.

According to the company’s top management, the ongoing Anglophone crisis significantly impacted revenues. “Our performances are strongly affected by the crisis in the northwest and southwest regions, where MTN holds 60% of telecoms market shares,” Hendrik Kasteel (photo), MTN Cameroon’s MD said during a meeting held January 31 in Douala.

Massey Njiti Bongang, Corporate communications manager at MTN Cameroon, told NewsWatch that in the two Anglophone regions “a total of 206 MTN sites have been ransacked or put out of order ; also, access to them are difficult due to insecurity.”

Let’s however note that in 2018, the Cameroonian subsidiary of South African group MTN saw its customer base expand reaching 8 million subscribers, against 7.1 million in 2017, with 800,000 new comings in Q4. This was achieved probably thanks to a new enrolment of some of the 3 million subscribers deactivated by MTN Cameroon, in accordance with the regulations in force regarding the identification of telephone subscribers in the country.

Brice R. Mbodiam

After Cameroonian former Defense Minister Edgard Alain Mebe Ngo’o was jailed in the central prison of Yaoundé on March 8, his spouse Bernadette joined him on March 11, we learnt.

The couple, along with three other persons involved, have been charged by the Special Criminal Court, which handles cases of embezzlement of public funds, for alleged corruption over the purchase of military equipment from French company Magforce.

The ongoing investigation showed that the misconduct caused the Public Treasury to lose more than XAF100 billion. Sources said two sons of the Mebe Ngo'o couple are also implicated in the case.

Let’s note that before Mr Mebe Ngo'o was appointed Defense Minister in 2009, he served as Delegate-General for National Security and was an active actor promoting the “opération Epervier,” a system put in place by President Paul Biya in 2006 to fight corruption. Now the former minister is considered the biggest victim of this system.

BRM

Cameroonian firm Enko capital, founded by brothers Alain and Cyrille Nkontchou, has just acquired shares in the capital of Kenyan company Software Technologie Ltd (STL), it is officially reported. The acquisition was made through subsidiary Enko Africa Private Equity Fund (EAPEF), the company’s African arm.

“This is EAPEF's first investment in East Africa. But Enko, a pan-African investor, is also well positioned to facilitate cross-border growth in Africa and believes that STL's suite of software products will be well received in other key markets in Africa [...],” said Ralph Gilchrist who led the transaction on behalf of Enko Capital.

This is the 7th and latest investment, made by Enko Africa Private Equity Fund, which closed at $64 million (about XAF38 billion). Monies mainly go to companies operating in the finance and technology sectors in Africa.

BRM

Cameroon just got suspended from the World Trade organization (WTO) for non-payment of its contribution amounting to XAF180 million. Trade minister, Luc Magloire Mbarga Atangana, has referred the matter to the Prime Minister’s office on March 5 and requested that the country complies with the requirements of WTO’s Trade Facilitation Agreement.

 “I have the honor to inform you, Mr. Prime Minister, Head of Government, that the arrears of our contributions to the World Trade Organization have now peaked at XAF138 million for 2015, 2016, 2017 and 2018,” the trade minister wrote, stressing there is another XAF42 million to be paid for the FY2019, making an aggregate amount of XAF180 million.

According to Mbarga Atangana, Cameroon is currently subject to category III administrative sanctions, which consist of the suspension of all technical assistance activities and the denial of any access to training organized by the WTO. “Only the clearance of these arrears would allow our country to regain its rights within the Organization,” he concluded.

Sylvain Andzongo

Following the decision to increase drink prices by brewers, Sabc and Guinness Cameroon notably, early this month, the Cameroonian trade minister, Luc Magloire Mbarga Atangana (photo), called for a crisis meeting on March 6 in Yaoundé.

“When a brewing company plans to change the price of any product or even any service, it must first keep the ministry in charge of prices updated ; and the price department has 15 days to consider the file. No change can be applied if not approved by the ministry,” said Atangana, at the end of the meeting.

“They (the brewing companies) didn’t follow this process. Customer rights associations are also governed by the law of 6 May 2011, the framework law on consumer protection that lays down a number of principles, including the right to information. This has not been respected. There was a haste, there was a mistake in the method,” he added.

The official has however promised a new consultation framework with brewing companies to decide on new beverage prices. “I cannot foresee how much the new beer price will be. But in any case, as we say, everyone must understand, especially the industry, that without the consumer, there is no industry.”

As a reminder, Guinness increased prices of beer and non-alcoholic beverages on March 4, few days after Société anonyme des brasseries du Cameroun (Sabc). The companies explain they increased prices due to an “excessive” tax pressure. Indeed, the 2019 Finance Act introduced an augmentation of excise duties, concerning alcoholic beers, up to 5.5%. As a result, the price of alcoholic and non-alcoholic beverages has risen by XAF25-100. Negotiations between the government and the brewers will therefore continue. But for the time being, the price hike is suspended.

Let’s note that the crisis meeting with the trade minister was attended by brewing companies, trade unions of distributors of brewery products, consumer rights associations and the Cameroon Alcohol Producers Association (CAPA).

S.A

London-based investment firm YF Finance pumps an additional £5.85 million ($7.7 million) in the equity of AIM-quoted Victoria Oil and Gas (VOG), the parent company of Gas du Cameroon.

If approved, this investment will enable YF Finance which is already VOG’s largest shareholder (6.5%) to increase shares. As a reminder, the operation falls in line with a strategy to raise equity through the issue of new shares that saw the company mobilize, in aggregate, £13.6 million ($17.7 million).

The entire sum will be used to strengthen cash flow since VOG faced difficulties throughout 2018; difficulties mainly caused by the suspension of contract with Cameroon’s power utility Eneo. Also, VOG had to restructure debt to maintain liquidity.  

The equity increase is another good news for the company which resumed contract with Eneo in late 2018. However the company planned a number of measures to limit spending. These include a reduction by 53% in the salaries of senior executives, -50% for the Board Chairman and -33% for the Managing Director. According to its yet to be audited books, VOG ended 2018 with a turnover of $10.6 million, 50% down that of 2017. $3.6 million cash flow was far below the $11.4 million in 2017 and net debt was $17.3 million.

Meanwhile, the company will pursue the development of its projects in Cameroon, especially the Matanda project.

Idriss Linge