Cameroon, MINFI Finalize Restructuring Plans of Commercial Banks Cameroon ( CBC)

Cameroon is currently moving to finalize the restructuring of Commercial Bank-Cameroon (CBC), 98% owned by the State of Cameroon. In that regard, Minister of Finance Louis Paul Motaze recently issued a call for expression of interest to recruit a consultant who will assist in the project.

The selected consultant will focus on the implementation of divestment provisions contained in the CBC restructuring plan. They will elaborate a schedule of operations, check whether all the procedures and prerequisites for the legal consistency of the project are abided by. They will also support the state in the selection of the necessary stakeholders, namely business lawyers, accountants, financial analysts, banking experts, human resources experts, etc.

The consultant must also assist in stock market operations and the elaboration of a call for expression of interests for the selection of a reference shareholder.    

Interested parties, be they investment banks or law firms, can submit their applications by April 5, 2022.  

CBC is 98% controlled by the State of Cameroon after its recapitalization (to the tune of XAF12 billion) in 2013. As of December 31, 2020, CBC had a net banking income estimated at XAF24.22 billion, against XAF12.33 billion three years earlier. At the same time, its reserves were estimated at XAF6.62 billion while the profits were XAF3.6 billion, up by 44% compared to the XAF2.5 billion recorded in 2019. 

Comforted by those performances, which are in line with the requirement of the provisions in the restructuring plan, the State wishes to partially divest from CDC, the call for expression of interest indicates. Specifically, the State will keep 17% of the stake, transfer 51% to a strategic partner and open 30% of the capital to investors on the regional stock market (BVMAC). 

According to an audit carried out by COBAC, in 2009, the bank’s capital was close to zero while in May 2008, it was estimated at XAF11 billion. That year (2009), COBAC placed the bank (which was being managed by the founder’s son Yves Michel Fotso at the time) under provisional administration.

In 2016, the provisional administration was ended -after six extensions- when the bank was recapitalized, with the government of Cameroon investing XAF10 billion to acquire 98% of CBC. Curled Cameroon Business News.