The Bank of Central African States (BEAC) injected CFA230 billion into the banking system in the CEMAC region on January 21, responding to a surge in demand from commercial banks. This latest liquidity operation saw requests totaling CFA258 billion, exceeding the offer by 112.5%, highlighting the growing need for central bank refinancing.

This renewed interest in BEAC’s funding facilities follows a sluggish period during which the central bank had scaled back its operations due to weak demand. However, since December 2024, commercial banks have been increasingly turning to BEAC, signaling a shift in financial activity across the region.

Bankers link this trend to rising loan demands, which have stretched their available funds. When banks face a gap between loan requests and their liquidity reserves, they typically seek refinancing from BEAC to cover the shortfall.

Source: Business in Cameroon

Of the three economically distressed zones in Cameroon the Far North, Northwest, and Southwest the Southwest has emerged as the most appealing to investors. On January 15, Finance Minister Louis Paul Motazé revealed in Buea, the region’s capital, that it is home to half of the 33 projects benefiting from tax and customs incentives tied to this special status.

“The Southwest alone accounts for over half of the projected investments, with 17 companies involved,” Motazé said. He added that 10 companies in the region have also registered under Cameroon’s 2013 private investment promotion law, securing tax benefits and creating tens of thousands of jobs.

Indeed, unlike the Far North, which is economically underdeveloped, and the Northwest, which lacks industrial capacity, the Southwest has several advantages. Key cities like Buea, Limbe, Kumba, and Tiko are near Douala, Cameroon’s economic hub. An efficient road network connects the Southwest to Douala, simplifying trade and logistics.

The Southwest also shares a border with Nigeria, Cameroon’s largest trading partner, and has modern road infrastructure supporting cross-border trade. The Far North also borders Nigeria but lacks comparable infrastructure.

Proximity to the Atlantic Ocean further strengthens the region’s economic appeal. The Southwest hosts informal maritime trade with Nigeria and includes the Cap Limboh oil terminal, which supplies crude oil to Cameroon’s national refinery (Sonara). Plans to build a deep-sea port in Limbe could further boost the region’s economic potential.

In 2019, Cameroon designated the Far North, Northwest, and Southwest as economically distressed zones, granting businesses tax breaks and other incentives for three to ten years. This initiative aligns with a broader investment promotion law from 2013, revised in 2017.

The Far North received its designation due to repeated Boko Haram attacks since 2013, which have devastated its already fragile economy. The Northwest and Southwest regions, meanwhile, have faced unrest since 2016, driven by armed conflicts between government forces and separatist groups in the country’s Anglophone regions.

Source: Business in Cameroon

Locally produced flours made from corn, yam, cassava, and plantain are now exempt from Value Added Tax (VAT). This new policy, outlined in the 2025 finance law and confirmed by the General Directorate of Taxes (DGI), is expected to lower the price of these products on the market by 19.25%, which matches the current VAT rate in the country.

The government sees this move as part of its strategy to promote “import substitution.” By encouraging the production of local flours, Cameroon aims to reduce its reliance on imported wheat, one of the country’s most imported food products, alongside rice. This dependency has heavily contributed to the country’s trade deficit.

In 2023, although imports dropped by 31.6% compared to the previous year, Cameroon still spent CFA178.3 billion on wheat imports, down from CFA260.7 billion in 2022. France remains the top supplier of wheat to Cameroon, followed by Poland, Russia, and Germany. Notably, Poland saw a 9% increase in wheat exports to Cameroon in 2023.

To lessen the country’s dependence on imported wheat, particularly for bread production—which is one of the most widely consumed foods in Cameroon—the government has been promoting local flours in recent years. Before removing VAT on these products, the government had already modified bread production standards, allowing up to 15% of local starch-based flours, such as cassava and yam, to be blended with wheat flour. The long-term goal is to gradually replace wheat flour with local flours in bread-making.

In 2023, the Ministry of Youth launched a training program for trainers in local flour processing, with the aim of teaching at least 378 young Cameroonians to make pastries using locally produced flours. In line with these efforts, a platform for local producers was established in 2022, with a target of producing around 5 million tons of high-quality products by 2030. However, this target seems ambitious, given the current pace of local flour production.

In his national address on December 31, 2024, President Paul Biya announced that 12,800 tons of local flours were produced in Cameroon in 2024. In comparison, the country imported 887,400 tons of wheat in 2023, according to the National Institute of Statistics (INS).

Achieving the goal of producing 5 million tons within five years will require significant investments, especially from millers whose factories are mainly designed to process wheat. As Alfred Momo Ebongue, Secretary General of the Cameroon Millers’ Industry Group (GIMC), pointed out, mills will need to be redesigned or adapted to process local tubers like cassava, yam, and potatoes instead of just wheat.

Source: Business in Cameroon

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