The Cameroon Development Corporation (CDC) is set to receive fresh financial support just days after reaching an agreement to clear part of its wage arrears. The Minister of Economy, Planning and Regional Development has been authorized to sign a €7.1 million ($7.6 million) commercial loan with Standard Chartered Bank in London, equal to about CFA4.6 billion.

The funding will cover the supply and installation of processing plants for palm oil, margarine and rubber, sectors considered strategic for diversifying and modernizing the operations of the state-owned company.

Clearing part of wage debt

The loan follows a broader financial recovery effort that included settling part of the company’s salary arrears. On September 17, 2025, the government signed a deal with FedhEn Capital, Société Générale Capital Securities Central Africa (arranger), Société Générale Cameroun, CCA Bank and AFG Bank. The operation cleared CFA15.7 billion in back pay owed to nearly 20,000 workers, as part of a plan to address a total salary debt of CFA35.7 billion accumulated between 2018 and 2022.

Company weakened by Anglophone crisis

CDC, the largest agribusiness in Cameroon and the country’s second-largest employer after the state, has been heavily affected by the sociopolitical crisis in the Anglophone regions. Between 2019 and 2021, it posted losses of CFA38.7 billion and saw its workforce shrink from 22,000 to around 15,000, according to the Technical Commission for the Rehabilitation of Public Enterprises (CTR).

With financial support from Standard Chartered Bank, the government aims to strengthen CDC’s competitiveness and production capacity. The installation of new factories is expected to add value to its output, reduce reliance on imports, and support jobs in a region hit hard by the crisis. Between debt relief and industrial revival, the state-owned firm now appears to be moving toward stabilization.

Source: Business in Cameroon

Cameroon’s cocoa industry, the world’s fourth-largest, is facing a compounding crisis that combines disease, insecurity, and corporate pullback. The sector generates over CFA 359 billion (about USD 595 million) from 180,095 tons in the first half of 2024/25 and sustains nearly one million people, but output is under acute pressure. National production, commonly ranging from 250,000 to 290,000 tons, is expected to contract by at least 10% this season, with the South-West region, the supplier of nearly half the crop, being hit hardest.

The first blow is biological. Heavy rains since July 2025, topping 2,200 mm in the South-West, have triggered a surge in black pod disease (Phytophthora megakarya). Infection rates of 65–70% have been reported in key districts such as Muyuka and Kumba. Counterfeit fungicides undermine farmers’ efforts to contain the outbreak, as many are smuggled across the Nigerian border. The result is pod losses ranging from 30% to as high as 90% on some farms, eroding both quality and volume simultaneously.

Layered on top is insecurity. The Anglophone conflict has entrenched “ghost town” lockdowns in the South-West and North-West, enforced by separatist groups. On these days, all economic activity halts, and farmers risk ambush if they attempt to reach plantations. A recent one-month lockdown disrupted government field inspections and fungicide quality checks, worsening the spread of disease. Historically, these ghost towns have cut cocoa sales from the South-West by as much as 40%, and 2025 has seen their persistence alongside sporadic clashes and extortion on rural roads.

Corporate retrenchment adds another dimension. Telcar Cocoa Ltd., which once handled up to 40% of the nation’s beans, suspended processing operations in mid-September, citing a “bean quality crisis.” The move follows Telcar’s earlier split with Cargill and reflects both the deterioration of crop quality and the logistical disruptions caused by ghost towns. By withdrawing, Telcar reduces domestic processing capacity, pushes more beans onto spot markets, and signals growing uncertainty to investors. The suspension also deprives farmers and small grinders of a key buyer, deepening income losses.

The mechanics of the crisis show a classic supply shock in a commodity with inelastic short-term output. Farmers cannot quickly expand acreage or replace diseased trees. With fewer beans being moved to market, prices rise. At the same time, ghost towns and insecurity impose frictional costs: shipments are delayed, storage risks rise, and smuggling surges. For small grinders, the effect is severe — input costs can increase 20–30%, throughput is disrupted, and margins are compressed by as much as 70%. Many risk closure without relief.

Global markets are already feeling the ripples. Futures on ICE were trading at USD 7,364 per ton on September 17, down slightly on the day but vulnerable to upward spikes. Cameroon’s potential 25,000–40,000-ton shortfall alone cannot overturn global supply dynamics dominated by Côte d’Ivoire and Ghana, yet in a context of regional weather shocks and political volatility, it magnifies uncertainty. Price volatility in Q3 has already risen above 7%, and Telcar’s exit will feed risk premiums in forward contracts.

Policy and commercial responses are lagging. Government inspection programs remain hampered by insecurity, while fungicide certification and distribution channels are too porous to prevent the penetration of counterfeit products. Extension services are restricted, and there is no adequate insurance or risk-sharing mechanism for grinders. Without rapid action, production in 2025/26 could contract by 15–25%, resulting in sustained high local prices (4,000–6,000 CFA/kg) and hollowing out processing activity and rural incomes.

The crisis is a test of resilience for Cameroon’s cocoa economy. Farmers require secure corridors to access plantations and reliable fungicide supply chains. Small grinders need cooperative mechanisms and hedging tools to manage volatility. For investors, the message is twofold: the near-term opportunity lies in long positions on West African cocoa, but the long-term risk is systemic — without integrated solutions that tackle both disease and insecurity, Cameroon’s comparative advantage in premium-quality cocoa could erode irreversibly.

Source: Business in Cameroon

Cameroon Airlines Corporation (Camair-Co) has taken delivery of a Boeing 737-800, marking the launch of a five-year expansion plan aimed at transforming the national carrier into a competitive regional airline. The aircraft, leased from Czech operator Smartwings, is the first step in Camair-Co’s 2024–2028 strategy to rebuild and expand its fleet.

The project envisions an initial fleet of 14 aircraft—11 passenger and three cargo planes—before reaching 18 jets by the fifth year, comprising 16 passenger and two cargo planes. Financing is supported by a CFA47 billion ($76.8 million) direct loan from the Development Bank of Central African States (BDEAC).

Fleet Modernization Amid Challenges

Camair-Co currently operates six owned and two leased aircraft, with repeated breakdowns of aging planes causing operational disruptions. The wet lease of the Boeing 737-800 provides immediate reliability while management works to phase in additional aircraft.

“The new aircraft allows us to restore confidence in our existing routes while we prepare for broader expansion, this is about building the foundation for sustainable operations.” said General Manager Jean Christophe Ella Nguema.

The recovery strategy focuses on three key objectives: enhancing competitiveness, improving operational efficiency, and restoring profitability. Executives view short-term leasing as a necessary bridge to long-term modernization, although the higher costs of wet leasing weigh on already fragile finances.

Camair-Co’s network today serves six domestic destinations—Douala, Yaounde, Bafoussam, Garoua, Maroua, and Ngaoundéré—alongside three regional routes to Libreville, Bangui, and N’Djamena. The expansion plan includes resuming suspended regional services and opening new ones, with Douala and Yaounde targeted as transit hubs for Central Africa.

Management hopes to capture some of the regional traffic that currently transits through Addis Ababa, Nairobi, or Lomé. However, competition is intense, as Ethiopian Airlines, Kenya Airways, and ASKY already dominate the skies of Central and West Africa.

Financial Pressures

The expansion highlights both ambition and risk. Camair-Co carries a total debt of CFA 124 billion ($204 million), making it Cameroon’s second most indebted state-owned company. Since its creation in 2006 and operational launch in 2011, the airline has never posted a profit and has relied on repeated government bailouts.

Analysts note that successful African turnarounds—such as Ethiopian Airlines or Air Côte d’Ivoire—required heavy upfront investment. But they caution that Camair-Co must address fundamental operational weaknesses alongside fleet growth to avoid repeating past failures.

Government project documents indicate that the expansion could generate 3,000–4,500 indirect jobs over five years, with benefits extending across aviation services, logistics, and hospitality. New frequencies and additional domestic routes are also expected to improve integration between northern and southern Cameroon, strengthening national cohesion.

The initiative could create opportunities for local aviation professionals, though Camair-Co faces labor tensions. Reports of disputes between pilots and management over pay and working conditions underscore the importance of maintaining workforce stability as the fleet expands.

The wet-lease arrangement offers an immediate boost, but it also increases operating costs. With Camair-Co’s owned aircraft prone to breakdowns, sustainability hinges on the airline’s ability to modernize its core fleet while integrating leased capacity.

“The arrival of the new jet is encouraging, but execution will be decisive,” said one regional aviation consultant. “Expanding routes without fixing fundamentals risks repeating old mistakes.”

Looking Ahead

Management emphasizes that the 737-800’s arrival is only the first milestone in a staged program. Over the next five years, the fleet is expected to grow from 14 to 18 aircraft, encompassing both passenger and cargo segments. Long-haul ambitions remain on the horizon, with Paris identified as a potential route once regional expansion consolidates.

“This isn’t just about adding aircraft, it’s about building an airline Cameroon can be proud of. The real challenge lies in execution.” said Nguema.

As the aircraft begins commercial service, Camair-Co faces a dual test: delivering growth while addressing structural weaknesses. Success would strengthen Cameroon’s regional connectivity and help Douala and Yaounde emerge as aviation hubs. Failure could add to the financial burden of one of Central Africa’s most fragile carriers.

Source: Business in Cameroon

On the hillside of Olezoa in Yaoundé, the Concord International Hotel is taking shape, reshaping the skyline near Avenue Charles Atangana. Backed by the Mutual Fund of Treasury Staff (Mutresor), the five-star complex aims to redefine luxury hospitality in Cameroon’s capital.

The CFA18 billion ($29.6 million) investment was financed mainly through Mutresor’s own funds, supplemented by a bank loan, according to the Ministry of Finance. Construction is nearing completion, with every detail designed to meet international standards.

The facility will offer 119 rooms and suites, including 72 executive and 16 standard rooms, plus two presidential suites and two accessible rooms. Amenities include two restaurants, a snack bar, a panoramic terrace, a spa, an indoor pool, a night club, a casino, conference floors, and parking. Local artisans will supply art and décor to give the hotel a cultural touch.

A diversification strategy

Founded over a decade ago within the Ministry of Finance’s Treasury Directorate, Mutresor counts around 4,000 members including public servants, retirees, and contract staff. Already active in microfinance through Cremincam and owner of a commercial property in Yaoundé, the mutual is expanding its portfolio with the Concord project.

“The profitability of the Concord should increase our lending capacity and help finance health and retirement insurance products,” a Mutresor official said.

Competitive luxury market

Yaoundé’s high-end hospitality market is becoming increasingly competitive. Alongside established hotels like Hilton and Mont Fébé, new entrants are on the way: the 220-unit Radisson Serviced Apartment set for 2026, the 30-story Hôtel du Lac backed by Belgian firm IIDG, and a future Méridien. Investments in these projects range from CFA50 billion to CFA90 billion.

“Luxury hospitality is highly capital-intensive but also high risk,” noted a Douala-based consultant. “It takes more than a beautiful building. Clear marketing, agile management, and internationally trained staff are essential.”

To address these challenges, Mutresor hired Bekolo & Partners to conduct market studies, design the business plan, and lead staff recruitment.

The Concord illustrates a broader shift among public service mutuals in Cameroon. Once limited to member contributions and solidarity, these organizations are emerging as investment vehicles. The National Mutual of Tax Staff (Mundi) has also expanded into commercial real estate and hospitality.

This evolution positions mutuals as economic actors capable of creating wealth and strengthening their role in national development.

High stakes ahead

Venturing into luxury hospitality carries financial and operational risks for Mutresor, whose core mission remains mutual solidarity. Success will depend on governance, strong financial planning, and professional hotel management.

If the Concord succeeds, it could set a precedent for other African mutuals, showing that solidarity-based organizations can drive major investments while continuing to serve their members.

Source: Sbbc

Cameroon’s National Refining Company (Sonara) approved on August 13 the Acceleration Plan for Restructuring and Rehabilitation Measures for Refining Restart within 24 months (Parras 24). The initiative agreed upon during a Board Meeting aims to resume production by 2027 with government support.

 “Parras 24 is designed to relaunch Sonara’s core functions and ensure the continuity of petroleum product supply,” the company’s official statement said. The plan calls for recapitalization and new partnerships to fund the rehabilitation and quick restart of production. Sonara has not yet clarified whether recapitalization will involve debt buyback or fresh capital injection. In June, a joint delegation from UBAF, ING, and Mauritius Commercial Bank had proposed potential financing for the project.

Technically, Parras 24 aims to restore facilities to their state before the May 2019 fire that severely damaged part of the refinery. At the same time, Sonara will implement a workforce management program to strengthen staff skills and prepare for operations to restart.

The company continues to struggle with high debt. It currently owes CFA261 billion to banks, restructured over 10 years since 2021 at an interest rate of 5.5%. It also owes CFA185 billion to Vitol, CFA8.5 billion to PSTV, CFA14 billion to Trafigura, and CFA20 billion to Mercuria Energy. Repayment of these debts has been ongoing since 2022 through a state mechanism that collects CFA47.8 on each liter of fuel sold at the pump.

While Parras 24 is underway, Sonara has assured partners and customers of steady supply. “The supply of refined products on the national and international market will continue in both quantity and quality until the full restart of the refinery,” the company said.

This ambitious plan, combining strategic financing, technical rehabilitation, and workforce development, marks a decisive step for Cameroon’s oil sector and the stability of its domestic market.

Source: Business in Cameroon