Cameroon’s Banking Sector (PART 2): Cameroon Now Counts 19 Commercial Banks, But – – – –

 One of the few banks that was created with local capital, Afriland First Bank, has in the last couple of years tenaciously stayed at the upper rungs of the classification table of commercial banks, and a times occupies the first position.   

With the newly created commercial bank, Africa Golden Bank, having gone operational, Cameroon now counts a total of 19 commercial banks, with a large majority being foreign banks. It is however interesting to note that some commercial banks of neighbouring countries like Nigeria, Gabon and Equatorial Guinea are  interested in doing business in Cameroon, as they have created subsidiaries or affiliates in the country, and  which are in fact doing well.

These include United Bank for Africa (UBA) and Access Bank of Nigeria, BGFI Bank of Gabon, and BANGE Bank of Equatorial Guinea. Worthy of note that though a commercial bank, ‘Banco Nacional de Guinea Equatorial’, BANGE Bank, that is, the National Bank of Equatorial Guinea, was created by the State of Equatorial Guinea, which remains the principal shareholder (64 %).  BANGE Bank which started operation in Cameroon in 2022, that is barely two years ago, already counts nine branches in the country. It is an indication that the bank is rapidly gaining an increasing share of the market in the banking sector.  Worthy of note that Manuel Osa Nsue Nsua, who has been the General Manager of BANGE Bank in Equatorial Guinea since 2012, was on August 17, 2024 appointed Prime Minister of that country.

The 19 Commercial Banks    

Meanwhile, the 19 commercial banks operating in Cameroon today include: 1) ‘Banque Internationale du Cameroun pour l’Epargne et le Credit, BICEC.  2) ’Societe Generale Cameroun’, SGC(former SGBC).  3) Societe Commerciale de Banque, SCB Cameroun. 4) Standard Chartered Bank Cameroon. 5) Afriland First Bank.  6) Citibank Cameroon. 7) Union Bank of Cameroon. 8) Ecobank Cameroun. 9) Banque Atlantique Cameroun 10) Commercial Bank Cameroun, CBC.  11) United Bank for Africa, UBA Cameroon 12) National Financial Bank, NFC Bank. 13) Bange Bank. 14) ‘Credit Communautaire d’Afrique Bank”, CCA Bank. 15) ‘Banque  Camerounaise des Petites et Moyennes Entreprises , BC – PME. 16) Banque Gabonaise pour le Financement International, BGFI Bank. 17) Access Bank. 18) La Regionale Bank. 19) Africa Golden Bank.

It should be noted that for strategic reasons, the State of Cameroon has shares (minority) in almost all, if not all financial institutions operating in the country.  In BICEC for example, the State of Cameroon is the second major shareholder, and that is why it is the Government that always appoints the Board Chair of BICEC, while the group with the majority share appoints the General Manager or top management.

Domination Of African Banks

It is also interesting to note that though there is a domination of foreign banks in the Cameroon Banking Sector, a majority of the banks in the country’s banking sector, including banks with local capital, are what can be called, African banks. That is, banks created in Africa by African investors, or with African investors being the majority shareholders. It should also be noted that BICEC which is one of the oldest, if not the oldest commercial banks in Cameron today, was originally an affiliate of a French group.  The French group was for many years the majority shareholder of the bank in Cameroon. But a few years ago, the French group sold its majority shares to a Moroccan group, and so BICEC is now an African bank.

Afriland First Bank Saving Cameroon’s Image

It is of course quite interesting that Afriland First Bank which is a bank that was created in Cameroon with local capital (majority shares), and which has the Cameroonian billionaire, Paul Fokam Kammogne, as principal shareholder or chief promoter, has in the last couple of years constantly been among the first three banks as regard the share or percentage of the market occupied in the banking sector in the country. This is according to information at Cameroon’s Ministry of Finace. In 2022 for example, Afriland First Bank occupied the first position, and with a comfortable lead ahead of the second and third which were Societe General Cameroun, SGC (former SGBC) and BICEC respectively.

Standard Chartered Bank Cameroon

It should be recalled that last year, precisely on July 14, 2023, a press release was issued in London, United Kingdom, which announced that Standard Chartered Bank had entered a sale agreement with Access Bank Plc (a Nigerian bank).

“Standard Chartered Bank and Access Bank Plc (Access) have entered into an agreement for the sale of Standard Chartered‘s shareholding in its subsidiaries in Angola, Cameroon, The Gambia and Sierra Leone, and its Consumer,  Private and Business Banking businesses in Tanzania. Each transaction remains subject to the approval of the respective local regulators and the banking regulator in Nigeria”, a portion of the press release read.  It was as well stated in the press release that the announcement, that Standard Chartered Bank had entered into a sale agreement with Access Bank Plc, was made at Standard Chartered Bank’s headquarters in London on that day (July 14, 20233) in the presence of senior representatives from both banks, and was signed by Sunil Kaushai, Regional CEO, Africa & Middle East, Standard Chartered, and Roosevelt Ogbonna, Group Managing Director, Access Bank Plc.  “The agreement with Access for the sale of the bank’s businesses in Sub – Sahara Africa is in line with Standard Chartered’s global strategy, aimed at achieving operational efficiencies, reducing complexity, and driving scale”, it was explained in the press release.

But so far Standard Chartered Bank Cameroon has continued operation, and it is not known whether the mother company in London has completed the sale agreement deal with Access Bank Plc., or if the handing over process of Standard Chartered Bank Cameroon to Access Bank Plc has been completed.  It is not also known whether Access Bank Plc. will fuse Standard Chartered Bank Cameroon into its subsidiary in Cameroon, that is, Access Bank Cameroon, or will give it a new name to operate separately, though as an affiliate or a subsidiary. Whatever the case, there is thus the possibility that the number of commercial banks in Cameroon which has today increased to 19, with the coming in of Africa Golden Bank, may sooner or later drop back to 18, with the withdrawal of Standard Chartered Bank Cameroon.

  Highest Number Of Banks In CEMAC Zone

Meanwhile it not surprising that Cameroon that has the largest economy among the six member countries of the Central African Economic and Monetary Community, CEMAC, has the highest number of commercial banks. Statistics at the end of 2023 showed that Central African Republic had 4 commercial banks, Chad had 10 commercial banks, Congo Republic (Brazzaville) had 10 commercial banks, Gabon had 7 commercial banks, and Equatorial Guinea had 5 commercial banks. It should be noted that though very rich in natural resources, the Central Africa Sub – region is ironically the most backward on the African Continent in terms of development. That is why there are few commercial banks in the sub –region.

Authorities Say More Commercial banks Are Coming

But officials of Cameroon’s Ministry of Finance have in the last few years repeatedly said that more commercial banks are to be implanted in Cameroon, but without giving any details. It is not known if they are serious or honest in the declarations, or if they are just playing CPDM politics. A French language newspaper, Defis Actuels for example, on Monday, July 15, 2024, quoted the Director General of the Treasury and Financial /Monetary Cooperation at the Ministry of Finance, Moh Sylvester Tangongho, in a front page story, as having declared that: “Au moins sept nouvelle banques vont implanter at Cameroun d’ici 2030”, that is, “At least seven new banks will be implanted in Cameroon by 2030”. But again, no details were given.