New Micro Finance Establishment, With 5 Billion FCFA Capital, ABC Finances, An Affiliate of Neptune Oil, Launches Activities

Another affiliate of Neptune Oil, a 400 billion FCFA Cameroon Tyre Factory, CTF, is a project that will hopefully help to revive the Cameroon Development Corporation. 

A new micro finance establishment, ‘Agence Bancaire pour le Commerce’, ABC Finances (Banking Agency for Trade, ABC Finances), with headquarters in the nation’s economic capital, Douala, officially launched its activities on November 15, 2024.  ABC Finances with a staggering capital of 5 billion FCFA, is an affiliate or subsidiary of the Group, Neptune Oil, a petroleum company with local capital, which has as President / Director General (PDG), Antoine Ndzengue.  The creation of ABC Finances is part of a policy that was adopted by the Neptune Oil Group, to diversify investments or business activities.

Worth recalling that last year, precisely in August 2023, the President / Director General of Neptune Oil Group, Antoine Ndzengue, who hails from the Centre Region, announced the creation by  the oil company of a micro finance establishment known as ‘Agence Bancaire pour le Commerce’, Abc Finances, with headquarters in the nation’s economic capital, Douala. He explained that the new project, Abc Finances, was in line with the oil company’s decision to diversify its investments. He also announced that the Pioneer General Manager of Abc Finances was Michel Onomo.

The PDG of the Neptune Oil Group as well disclosed that the capital of Abc Finances was the huge sum of 5 billion francs CFA.  This is more than the capital required to create a new commercial bank in Cameroon or in the CEMAC Zone.  In fact 5 billion francs CFA is capital to create some 20 Category 1 Micro Finance Establishments.  Some people will definitely question why Neptune Oil Group did not instead go for a project to create and operate a commercial bank with that capital.  It is not clear why the Group opted to create a micro finance establishment, than to create a commercial bank.

However it should be noted that to create and operate a commercial bank is much more complicated.  The Central African Banking Commission, COBAC, which is the official regulator of the banking sector in the Central African Sub – region, is very strict with the operations of commercial banks. More so, the process to create a commercial bank is much complicated or difficult both at the level of COBAC and the Cameroon Government.

CDC to Supply Rubber To CTF

Meanwhile, it would be also be recalled that last year, The Mentor reported that the PDG of the Neptune Oil Group, Antoine Ndzengue, had announced the Group’s first major project to diversify their investments, which was the creation of the Cameroon Tyre Factory, CTF, which  will be the first tire manufacturing company in Cameroon. The construction of the 400 billion francs CFA project is located at Bomono, along the Douala – Mbanga Highway. The PDG of Neptune Oil who disclosed that the funds (400 billion FCFA) needed for the construction of the Cameroon Typre Factory was already available, also disclosed that part of money was a loan obtained from the Development Bank of Central African States, BDEAC.

Interesting to also recall as The Mentor reported last year, that the Cameroon Development Corporation, CDC,  which has being  in a serious financial crisis  in the last couple of years due to the escalated Anglophone Crisis which severely affected the activities of the Corporation, will be  the main supplier of the major raw material (rubber), that CTF will use  in manufacturing the tires. CTF will manufacture two categories of tires. The tires with brand name, ‘Afri Star’, will be for heavy duty vehicles, while the tires with the brand name, ‘Pcr’, will be for small vehicles. The technical partners in the Cameroon Tyre Factory Project are companies from Finland, and are reportedly reputed in tire manufacturing of tires.

Gov’t’s Import Substitution Policy 

Last year as well, the PDG of Neptune Oil Group, Antoine Ndzengue, accompanied by the General Manager of CDC, Franklin Ngoni Njie, visited the Minister of Commerce, Luc Magloire Mbarga Atangana, to formally present the tire project to the Trade Minister. The CDC Boss, while speaking at the occasion, expressed the hope that the partnership between CTF and CDC will be the veritable oxygen that will help to revive the CDC, especially the rubber sector.  The Minister of Trade who said  the Cameroon Government  was quite appreciative  of  the  CTF project  that will  among other things  help to revive CDC,  assured that the Government will on its part take appropriate measures to protect the local production of  the high quality tires, in line with the import substitution policy of Government to protect Made – In – Cameroon products.

Meanwhile, construction work on the Cameroon Tyre Factory Project at Boinomo, in the outskirt of Douala, has far advanced.

By Joe Dinga Pefok (Uncle Joe)

Website: www.thementornews>com

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Email : djpefok@yahoo.com / djpefok13@gmail.com

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