Reacting to the outcomes of the extraordinary summit of the Economic and Monetary Community of Central Africa (CEMAC) on the region’s economic situation, the International Monetary Fund (IMF) has commended the commitment of the heads of state while urging “further actions.” These additional efforts, the IMF stated in a December 16 communiqué, should focus on “rebuilding buffers, enhancing public finance sustainability and transparency, mobilizing non-oil revenues, and addressing debt vulnerabilities.” The organization also reaffirmed its readiness “to support the region in achieving sustainable and inclusive growth.”

The extraordinary summit, held in Yaoundé, was reportedly convened at the insistence of the IMF. The Bretton Woods institution had raised concerns about declining foreign exchange reserves in the CEMAC region. These reserves increased from 2.3 months of imports in 2016 to 4.6 months in 2023 but showed a “downward trend” in 2024, according to the Cameroonian presidency.

Observers believe the IMF’s broader aim for the summit was to encourage Equatorial Guinea, Gabon, and Chad to join its Economic and Financial Reform Program, which Cameroon, the Central African Republic, and Congo-Brazzaville are already part of. Reflecting this objective, one of the summit’s recommendations called on “other member states to formalize agreements with the International Monetary Fund as soon as possible to benefit from its support and that of other technical and financial partners.”

Abebe Aemro Selassie, Director of the IMF’s Africa Department, emphasized the need for “bold actions,” particularly in improving transparency in public finances and the oil and gas sectors. He also reiterated the importance of CEMAC’s fixed exchange rate regime, which he noted “continues to serve the region well by effectively anchoring inflation expectations and reducing uncertainty associated with international trade and investment.” Selassie welcomed the renewed commitment to external sustainability, describing the summit as a pivotal step forward.

“This Heads of State Summit has laid the groundwork to advance critical discussions on regional policy assurances and on safeguarding regional macroeconomic stability,” he stated. Selassie added that IMF staff, along with national and regional authorities, are continuing discussions to align on efforts to improve CEMAC’s fiscal adjustment path, preserve external reserves, and strengthen debt sustainability.

Source: Sbbc

The Bank of Central African States (BEAC) conducted a new liquidity injection operation for commercial banks on December 17. This time, the central bank offered CFA220 billion, a rise of CFA60 billion compared to the previous operations on December 3 and December 10.

This increase in liquidity follows a prior reduction of 50%, when the offer dropped from CFA320 billion to CFA160 billion between late November and early December. The adjustment comes amid a renewed interest from banks in BEAC’s refinancing operations. For example, on December 3, the BEAC offered CFA160 billion, but the banks requested CFA224.8 billion. Similarly, on December 10, the entire CFA160 billion made available was taken up, yet not all banks could meet their financing needs, which totaled CFA162.8 billion.

This renewed interest in the central bank’s refinancing offers in December may be linked to increased demand for bank loans. According to banking officials, the year-end holiday season, a time of high consumer spending, often drives up demand for credit in commercial banks.

Source: Business in Cameroon

MTN Group has announced key leadership changes aimed at addressing succession, operational execution, and advancing the Ambition 2025 strategy.

Mitwa Ng’ambi, CEO of MTN Cameroon, will move to the same position at MTN Côte d’Ivoire, effective 1 March 2025, as Djibril Ouattara takes early retirement. We thank Djibril for his significant contributions to MTN, including his leadership of MTN Congo-Brazzaville. To ensure an orderly handover, Djibril will support Mitwa during her transition for a few months.

Mitwa brings over 15 years of telecom experience and transformational leadership, having served as CEO of MTN Cameroon since September 2022. She is also the Board Chairperson of Mobile Money Corporation, MTN’s fintech subsidiary in Cameroon. Prior to her role in Cameroon, Mitwa was CEO of MTN Rwanda, where she successfully led the renewal of the company’s licence and spearheaded its growth and listing on the Rwanda Stock Exchange. Previously, she held leadership positions at Airtel Tigo in Ghana and Tigo in Senegal. Mitwa’s experience and track record will add impetus to the growth and turnaround of MTN Côte d’Ivoire.

Wanda Matandela, Chief Commercial Operations Officer at MTN South Africa, has been appointed as the new CEO for MTN Cameroon, effective 1 March 2025. Wanda joined MTN in 2018 as Chief Enterprise Business Officer and drove the turnaround of this business. With over 20 years of experience, including more than 13 years in telecoms, he has held strategic roles across the FMCG and financial services sectors. Wanda serves on the boards of Supersonic (Pty) Ltd and MTN Rwanda PLC. His strong commercial and stakeholder management experience will be invaluable as he builds on the high impact and energy created under Mitwa’s leadership, bringing new capabilities and insights to drive growth in Cameroon.

Effective 1 January 2025, Mazen Mroue, MTN Group Chief Technology and Information Officer (GCTIO), will assume additional responsibilities as CEO of Digital Infrastructure (Infraco). This new role will incorporate the mobility and fibre businesses of Bayobab, along with executing our data centre strategy as we position MTN Group for growth and profitability in the development of AI across Africa. In this dual role, he will continue to report to the Group President and CEO and remain a member of the Group Executive Committee.

Since joining MTN in 1998, Mazen has held various senior positions within the Group’s regional operations in Africa and the Middle East, including CEO and COO roles across multiple operating companies. He has also served as a board member of various companies within the MTN Group. Mazen’s strong technology and operational experience, combined with his track record of delivery, positions him well to fulfil this dual mandate.

Frédéric Schepens, current CEO of Bayobab, will be leaving the group effective immediately. We thank Frédéric for his contributions and wish him success in his future endeavours.

MTN Group President & CEO Ralph Mupita extends his best wishes and appreciation to all incoming and outgoing colleagues, expressing confidence in the internal succession bench-strength of the business. He emphasises the importance of driving execution and maintaining our commitment to digital and financial inclusion priorities across our markets.

Source: Techafricanews

Road transport has failed to fully resume between Cameroon and the landlocked Central African Republic after a top-level crisis meeting this week to reopen borders sealed by Cameroon following escalating violence in C.A.R. Hundreds of truck drivers say they will cross into C.A.R. when government troops protect them from rebels.

Several hundred truck drivers who left Cameroon’s Douala seaport for Bangui, capital of the Central African Republic, say they are stranded in Garoua-Boulai, a town on Cameroon’s eastern border with C.A.R.

C.A.R. is a conflict-ridden landlocked country that depends on the Douala seaport for about 95% of its goods and humanitarian aid.

One of the stranded truck drivers, 49-year-old Kum Innocent, said all of the drivers who have been in Garoua-Boulai for over two weeks have agreed to stop shipping goods and humanitarian assistance into C.A.R. because their lives are regularly threatened by armed gangs operating there.

“We can’t enter Bangui right now because of the insecurity on the way,” he said. “Armed gangs put [up] road barricades on the way. They even kidnap some of us, and they ask us [for] ransom. Our lorries are blocked down. Many of our merchandise [is] getting rotten, and we are losing a lot. That’s what we go through when we leave Garoua-Boulai for Bangui.”

Kum said that late last month, C.A.R. rebels killed a Cameroonian truck driver and abducted at least two mechanics hired to carry out truck maintenance along the Douala-Bangui road corridor.

Cameroonian truck drivers say they want an immediate release of their kidnapped peers before they resume the shipment of goods to C.A.R.

El Hadj Oumarou, head of Cameroon’s land freight transportation bureau, said several hundred truck drivers stationed in Garoua-Boulai want assurances that the C.A.R. government will take responsibility for their security and safety, as well as the security and safety of their goods and trucks. He said the C.A.R. government is responsible for the safety of every civilian in its territory.

The angry drivers refused to fully resume work after a crisis meeting Wednesday of top Cameroon and C.A.R. government and military officials in Garoua-Boulai. Officials say the crisis meeting was to plead with the striking truck drivers to resume activity.

Cameroon said it had agreed to open the border.

Gontrand Djono Ahaba, C.A.R. minister of Transport and Civil Aviation, attended the crisis meeting. He said he was surprised that drivers are still reluctant to ship goods and humanitarian assistance to C.A.R.

Ahaba said he has informed C.A.R. President Faustin-Archange Touadéra that truck drivers along the Douala-to-Bangui road want assurances of their safety before shipping goods to C.A.R.

He said Touadera has given assurances that the central African state’s military will organize convoys for drivers who feel threatened by armed gangs operating in C.A.R. and attacking truck drivers for supplies.

Speaking on C.A.R. state TV on Thursday, Ahaba said the C.A.R. military had located the trucks abandoned by drivers, adding that the trucks will be restituted, but he did not say when.

Cameroon’s transport minister, Jean Ernest Messena Ngale Bibehe, told Cameroon state TV on Thursday that negotiations have continued for truck drivers to suspend their protest. He assured them that C.A.R. officials have agreed to protect trucks daily and free of charge from Garoua-Boulai to Bangui and back.

C.A.R. descended into violence in 2013, when a rebel group forced then-President Francois Bozize out of office.

Violence among C.A.R. armed groups since then has forced close to a million Central Africans to flee to Cameroon, Chad, the Democratic Republic of Congo and Nigeria.

Source: VOA

Cameroon’s economy is forecast to grow by 4.1 percent in 2025, up from 3.8 percent in 2024, according to the country’s Prime Minister Joseph Dion Ngute.

Ngute made the announcement while delivering the 2025 state budget to the National Assembly Sunday night.

Cameroon’s draft budget for 2025 stands at 7,317.7 billion Central African CFA francs (about 11.74 billion U.S. dollars), Ngute said, noting that the budget has slightly increased by 0.5 percent compared to that of 2024.

Inflation is projected to fall to 3.1 percent in 2025, down from 4.2 percent in 2024 and 5.1 percent in 2023.

The budgetary plan will remain focused on consolidating the public finance situation, in coherence with the economic and financial program concluded with the International Monetary Fund, he said.

Source: Xinhuanet

Fitch Ratings has affirmed Cameroon’s long-term foreign currency issuer default rating (IDR) at ‘B’ with a negative outlook. In a note, Fitch revealed that the negative reflects political risks related to potential succession issues and structural weaknesses in public finance management (PFM).

This is evidenced by weak liquidity management, late external debt payments, and accumulation of domestic arrears, according to the rating note. Cameroon’s ratings are supported by its resilient GDP growth, a manageable debt maturity schedule and expectations that moderate budget deficits and debt levels will be supported by non-oil revenue mobilization and spending restraint.

Analysts added that this is balanced against low GDP per capita, weak governance indicators, and persistent security challenges. The 92-year-old President Paul Biya, in power since 1982, will likely run in the presidential election, scheduled for October 2025, Fitch said.

The rating note stated that social and political tensions could increase in the run-up to the election, increasing concerns about Cameroon’s political stability, policy continuity and commitment to reform – which underpin bilateral support.

The lack of a succession plan and political divisions and rivalries within the ruling party exacerbate the risk of a disorderly transition of power. The rating note revealed that the country’s weaknesses in budget planning and execution, and debt management weigh on the rating.

The government’s exceptional spending procedures remain high, albeit declining, due to constant unexpected security spending and liquidity pressures.  PFM weaknesses are evidenced by occasional late external debt service payments.

It was revealed in July that Cameroon was late in making external debt payments to one commercial creditor in March 2024. Moreover, in 2024, Cameroon has cleared XAF467 billion of domestic arrears using proceeds of a private placement issuance and resources lent by Afreximbank.

“We see continued risk of arrears accumulation given a projected financing shortfall”, Fitch Ratings said amidst country’s tight finance.

In 2004, Cameroon is unlikely to obtain budgeted financing from the World Bank of USD200 million, due to delays in implementing structural reforms, Fitch stated.

Analysts explained that the projected shortfall in financing will be compensated by spending cuts. The funds could be disbursed in 2025, but the electoral context may further slow reform implementation.

“Nevertheless, we expect Cameroon’s funding needs will be covered through the existing IMF programme, ending June 2025, and official creditor support tied to the completion of the reviews”.

The government will also rely on the regional bond market.

Fitch baseline assumes strong support from official creditors will continue over the medium term, with a potential renewal of the IMF programme in 2026, which is key for the financing plan. Cameroon has limited fiscal room, and fiscal consolidation is being driven by spending cuts, mainly on capex under-execution.

“We forecast the fiscal balance on a commitment basis will shift to a surplus of 0.1% of GDP in 2024, remaining broadly stable in 2025-2026.

“Oil revenues will decline due to lower oil prices and production, but non-oil revenues will continue to improve through revenue mobilisation measures, tax exemptions reduction, and improvement in tax and customs administrations”.

Fitch also forecast the fiscal deficit on a cash basis to widen from 0.4% of GDP in 2023 to 1.6% in 2024, as net repayment of arrears is expected at 1.7% of GDP at end-2024.

“We expect the cash deficit will decline to 0.7% of GDP in 2025 and 0.6% in 2026, although the pace of net repayment of arrears casts uncertainty on the fiscal trajectory”. The government is committed to reduce fuel subsidies, increasing retail petroleum prices in 2024 by 15%, after a 21% rise in 2023.

However, given the importance of social stability and the presidential election, we assume the government will not increase petroleum prices in 2025, delaying the phasing out of fuel subsidies.

“We estimate fiscal financing needs, at 5.7% of GDP in 2024, will decline to 4.7% of GDP in 2025, owing to lower cash deficit and arrears repayment. We project fiscal financing needs will increase to 5.4% of GDP in 2026 as domestic debt amortisation will amount to 2.6% of GDP after 2.1% in 2024.

“External debt amortisation will increase from 2.0% of GDP in 2024 to 2.1% in 2025 and 2.2% in 2026, including Eurobond payment at 0.1% of GDP per year”. Fitch project GDP growth and moderate cash budget deficits will maintain government debt on a declining path from 41.7% of GDP in 2023 to 36.3% in 2026, below the ‘B’ median forecast of 56.4%.

Also, analysts expect real GDP growth to increase to 3.7% in 2024 from 3.2% in 2023. “We forecast growth at 4.0% in 2025 and 4.1% in 2026, driven by agriculture, construction, and the coming on-stream of infrastructure and electricity projects, below the ‘B’ median forecast of 4.7%”.

Downside risks to growth stem from geopolitical uncertainties leading to renewed commodity price volatility, supply chain disruptions, and inflationary pressures. The 2025 presidential election threatens reform implementation and increases security and social risks.

Analysts forecast the current account deficit (CAD) to narrow from 4.1% of GDP in 2023 to 3.6% of GDP in 2024 owing to higher cocoa prices supporting exports. Fitch projects the CAD will fall to 3.2% of GDP in 2025-2026, as the decline in oil production will be offset by the implementation of the import substitution policy, while exports will increase thanks to stronger agricultural production.

Source: dmarketforces

Cameroon Telecommunications (Camtel) plans to launch mobile financial services sometime next year once it has completed a feasibility study this year, an executive said on Thursday as the state-owned operator looks to challenge Orange and MTN.

Mobile operators have been expanding in financial services across Africa, where a large part of the population does not have good access to traditional banking.

In Cameroon, South Africa-based mobile operator MTN (MTNJ.J), opens new tab and French telecom operator Orange (ORAN.PA), opens new tab dominate the mobile money space. Other fintechs are also making a play in that space.

Camtel’s mobile financial services business called Blue Money will be housed under its commercial unit Blue.

“Blue Money will be launched very soon. We’re finalising studies around the regulatory environment and the market to be able to deploy,” Gilbert Ngono, Director of Cooperation at Camtel said in an interview at Africa Tech in Cape Town.

“This year we’re finalising that part and next year is really the year where we’re going to see an acceleration and deployment of Blue Money.”

Source: Reuters

Bank lending in Cameroon reached a record CFA5,607 billion between December 2023 and June 2024, representing a 3.75% increase compared to the previous six months. This data comes from the regulatory reports of the Collection, Processing, and Feedback System for Banks and Financial Institutions (Cerber), established by the Bank of Central African States (BEAC) and Cameroon’s National Economic and Financial Committee (CNEF).

Afriland First Bank (AFB), owned by Cameroonian billionaire Paul Fokam Kammogne, led the market with CFA1,280.5 billion in loans over the period. Right behind AFB was Société Générale Cameroun (SGC), a subsidiary of the French Société Générale group, which issued CFA771.3 billion in credit.

Banque Atlantique Cameroun (BAC), a branch of the Ivorian Atlantic Financial Group (AFG), took the third position, issuing CFA538.2 billion in loans. Société Commerciale de Banque (SCB) Cameroun, owned by Morocco’s Attijariwafa group, followed with CFA521.4 billion, while Commercial Bank Cameroun (CBC) completed the top five with CFA489.9 billion in loans.

Other notable players included Bicec, a part of Morocco’s Banque Centrale Populaire (BCP), which loaned out CFA455 billion; BGFI, owned by Gabon’s BGFI Group, at CFA441 billion; CCA Bank, a local Cameroonian institution, with CFA308 billion; UBA, the Nigerian UBA Group’s subsidiary, providing CFA265 billion; and Ecobank, a pan-African group, lending CFA167 billion.

The remaining eight banks—Citibank, NFC-Bank, Standard Bank, Bange Bank, La Régionale Bank, UBC, BC-PME, and Access Bank—collectively issued over CFA370 billion in loans.

The credit market grew by 3.75% in the first half of the year, with AFB leading the growth at 3.14%, as the only bank to lend over CFA1,000 billion. Newer players in the market, like Equatorial Guinea’s Bange Bank and Nigeria’s Access Bank, posted the highest growth rates of 73.28% and 26.43%, respectively. Financial expert Danny Dior Ngongang noted, “It’s expected for these banks to grow rapidly, as they are working to establish themselves and catch up.”

Source: Business in Cameroon