Why Many Family Businesses In Cameroon, Do Not Survive Their Founders (Part 1):

Studies Show That 83 % Of SMEs In The World Are Family Businesses.

But In Cameroon, A Large Majority Of Family Businesses Die With Their Founders. Where Is Nangah Company? What Also Of Kilo And Bros Company, Or Che  And Sons Company? What Has Become Of The Business Empire (Fotso Group) That Victor Fotso, Left Behind, Or That Which Paul Soppo Priso Left Behind?  What Has Become Of SCTM Gas Company That Christophe Silienou, Left Behind? What Of The Flourishing Businesses that Chief Dr HNA Enonchong Left Behind? Etc, Etc

On Pages 6 & 7 of edition No. 02111 of Friday, July 24, 2020 of the leading English language newspaper in Cameroon, THE POST, is an investigative report which I (Uncle Joe) did, with the headline: Tussle Over Deceased Billionaires’ Assets.  The report showed how many big Family Businesses in Cameroon are ruined by tussles or fights over assets, after the Founders pass away. This is one of the reasons why many Family Businesses in Cameroon, do not survive their Founders, or better still die with their Founders.  But the principal reason that opens the floodgates to the tussles over assets is that, most Founders of Family Businesses in Cameroon die without having effectively resolved the issue, of succession in the management of the businesses.

Meanwhile in 2023, United Bank for Africa, UBA Cameroon, made bold to launch the first public debate in the country, on a very important issue that many people seem not to realize. The topic of the online debate which was coordinated by a banking expert, OLIVIER DJABA, was:  Financing Of SMEs, With Focus On The Plan Of Succession In SMEs And Companies That Are Family Businesses, As A Factor Of Eligibility For Bank Credits (Loans).

Importance Of Family Businesses

AS aforementioned, experts are unanimous that the principal reason why most Family Businesses , be they small or big in Cameroon,  do not survive their Founders, is that the Founders themselves do not put in place a solid succession  plan in the management of the Family Businesses.  And so when they die, the Family Businesses follow them.

Studies show that as high as 83 % of Small and Medium Size Enterprises, SMEs, across the world, are Family Businesses. The statistics is definitely higher in Cameroon and many other African countries. This is indicative of the socio –economic importance of Family Businesses in a society, or indicative of the huge impact of Family Businesses on families and the economy of the country. The Government is thus normally supposed to pay much attention to the problems that many Family Businesses face in Cameroon when their Founders pass away, and which result in many of these Family Businesses collapsing, and thus not surviving their Founders.

But come to think of it, that SAMSUNG which is today a reputed worldwide or international brand, started as a small Family Business in Japan in the 1960s.  SUZUKI, HONDA, KAWASAKI and son, are also all Family Businesses in Japan that started small.

Some Big Family Businesses In Anglophone Cameroon, That Did Not Survive Their Founders

If one meticulously carry out an investigation about economic activities in the two Anglophone  Regions (Northwest and Southwest Regions) in the last 50 years or more, he will  realize that quite a number of construction companies, real estate companies, private schools, public transport enterprises, Law Firms, clinics, big workshops, big plantations and many other enterprises that  were thriving businesses  at one time or the other,  disappeared  because the Founders either retired, became incapacitated  or passed  away.

These are businesses that did not survive their Founders.  And the question is why those once thriving enterprises did not survive their Founders? Why for example was the once renowned NANGAH COMPANY, unable to survive after its Founder, DANIEL NANGAH, passed away in 1990?  Why did other renowned companies of Anglophone Cameroon like KILO and BROS COMPANY and CHE and SONS COMPANY, not survive their Founders? In a recent case, why for example, was the once thriving real estate company, SCI ABANE in Douala, unable to survive its billionaire Founder, CHIEF DR. HENRY NDIFOR ABI ENONCHONG, who suddenly passed away in 2008? What about Fresh Food Cameroon, FREFOCAM, which included rubber plantations in the Southwest Region that CHIEF ENONCHONG also left behind?  What about the SAVANNAH HOTELS AND TRANSPORT ENTERPIRSE of late MONKAM NDAHJI? Remember those public transport buses, SAVANNAH EXPRESS, on which was written: Follow Me To Savannah Hotel.  Today in Bamenda, only the name Savannah Street, which was named after one of the hotels remain.

Just Imagine!  (Victor Fotso)

Come to also think of it.  For many years, Cameroon’s business magnate, Victor Fotso, was considered the richest Cameroonian. Victor Fotso was the Founder of big chain of Family Businesses, known as Fotso Group. He had several industries and other businesses in Cameroon. The Fotso Group which created Commercial Bank Cameroon, CBC, was also involved in large scale agriculture. The Fotso Group also had businesses in some African countries like Ivory Coast.  Victor Fotso had a total of 25 wives, and over 100 children. Hmmmmmm!  Anyway, he had the money to take good care of them. Victor Fotso passed away on March 20, 2020 in a hospital in Paris, France at the age of 94, and was buried in his native Bandjoun in the West Region of Cameroon on, on June 25, 2020.

But come to think of it, that even before the burial of Victor Fotso,, tussles over  assets had already erupted in the family.  Some 25 of late Fotso’s children dragged one of their sisters to a court, for gross mismanagement of some of companies their father left behind.  Of course Victor Fotso did not train her to manage those businesses.  The companies are said to be on the decline.

Today a tiny minority of Late Victor Fotso’s children are enjoying, while the large majority are wallowing in poverty.  Come to think of it, that it has become a common headline of some newspapers in the West Region, at the beginning of each school year: “Honorable Albert Kouinche, Justin Talom and David Kegne, soutiennent encore les enfants et veuvres de Victor Fotso” . That is, “Honourable Kouinche, Justin Talom and David Kengne , again support the children and widows of Victor Fotso”.  Imagine that many children and widows of late multibillionaire, Victor Fotso, who died just in 2020, have been depending on the humanitarian gesture of some Bandjoun elite led by Hon Albert Kouinche , for  the children to be able to go to school. At the beginning of each school year, these Banjoun elite contribute 10 million francs CFA, to support t late Victor Fotso’s children to go to school.  The fact of the matter is that Victor Fotso died without having effectively resolved the issue of succession in the management of the huge Family Business.

Meanwhile,  we will in the investigative report on the Family Business, Fotso Group, brings out details of what is happening to the Fotso Group, and Why.

Paul Soppo Priso’s Case

Another sad case in Francophone Cameroon is that of the huge Family Business whose Founder was another multibillionaire, Paul Soppo Priso. He was proprietor of the once great and popular ‘Polyclinique Soppo’, at Bonapriso, Douala, which today shamefully lies in ruin.  So unfortunate a situation! Paul Soppo Priso had real estates, he had land all over the place,   had rubber plantations, cocoa plantations, and other businesses,  He  had shares in Brasseries du Cameroun, CAMI Toyota,  Bollore Africa Logistics, and so on. He passed away on May 25, 1996, leaving behind a total of 7 children. The Mentor will avoid talking about the wife or wives, because the issue has remained a subject of hot dispute till date.

But imagine that since the billionaire, Paul Soppo Priso, died in 1996, the Family Business has been the subject of multiple court cases till date.  Not even one of the seven children has so far succeeded to be the made Administrator of the Soppo Priso estate or Family Business, and not even one of them has also succeeded to own any of the assets.  Rather, it is the lawyers, the State Counsels and magistrates that have been eating fat from the gold mind that Paul Soppo Priso left behind for the family. It is the court that has continued till date to appoint successive Administrators of the Estate of Late Paul Soppo  Priso, and of course is not in a hurry for  the matter to be resolved, for obvious reasons.  We will in our investigative report, explain why the Family Business has been in such a mess since the Founder passed away since 1996.

FAKO SHIP And MUKETE PLANTATUINS

Meanwhile the above unfortunate situations definitely makes us  concern  or to ask questions as to  how two huge Family Businesses , left behind not long ago in the Southwest  Region  by two Founders ,who were in fact businesses giants  are faring. We are talking of MUKETE PLANTATIONS whose Founder was NFON V.E MUKETE, and FAKOSHIP whose Founder was the great Philanthropist, CHARLES NAMME MENYOLI.  However  the fact that so far  noise has not been coming out of these businesses, probably a sign of hope  that these Family Businesses are  waxing on strong, after the passing away of  the great Founders.

It Is Not Completely Bleak

But in fact the picture is not all bleak.  The famous KADJI GROUP which includes the brewery, UCB,   is moving on smoothly after the Founder, JOSEPH KADJI DEFOSSO, passed away. Why so?  The same thing also for SOHAING Group of late ANDRE SOHAING,  whose businesses include the popular  Akwa Palace Hotel in Douala. Why so?  It is the same thing with the business chain that Pa FRANCIS YONG left behind in the Northwest Region. Why So? It should  however be noted after the passing away of  Pa Franicis Yong, the huge Family Business he left  behind  faced some challenging or tumultuous periods, before stabilizing.

The Investigative Reports

Meanwhile beginning today (Monday, January 13, 2025), THE MENTOR NEWS has started publishing a series of Investigative reports, that that we  patiently took a couple of months to  gather the facts, and in fact continue to gather more facts, on why  many Family Businesses in Cameroon do not survive their  Founders.  We will look at why many Founders of Family Businesses in Cameroon consider the issue of the succession in Family Businesses a taboo subject, and how such reasoning ends up running the businesses when they are no longer there. We will look at why commercial banks in Cameroon are very interested in the issue of succession in the management of Family Businesses, and want an open debate on the issue.

We will also look at the negative role that unscrupulous lawyers, State Counsels and magistrates play in running Family Businesses for their selfish interests, when the Founders are no longer there.   We will look at examples of Family Businesses in both Anglophone and Francophone Cameroon, that have not survived their Founders and why, as well as examples  of Family Businesses that have survived their Founders and why.  We will also look at the complaints that the Cameroon Government has over the years, been indifferent in the face the several problems that many Family Businesses do face, when the Founders pass away, and why. There will be much more.  WATCH OUT!