When gov't rejects high instructions from IMF.

Their logic has been that government is a bad business manager, and privatisation would ensure quality services at affordable price to the public.

But that IMF/World Bank theory has been the opposite, as observed in the privatisation of the electricity and water sectors, with disastrous results.

In the banking sector, which has also been under the unfinished business of barring the government from competing with the private sector, the result has, however, met some benchmark of success.

In its last year's review of Cameroon’s banking performance, under the Extended Credit Facility and the Extended Fund Facility Arrangements, the IMF pointed out that: "The development of the financial sector is hindered by fragilities in the banking system. The capital adequacy ratio is improving and liquidity ratios are stable at 16.3 and 29.8 percent, with 15.4 percent of total loans by mid-2023, from 13 percent at end-2022". Moreover, banks’ exposure to the IMF noted that Cameroonian government assets increased to 35.3 percent of total assets in 2022, up from 23 percent in 2019. This has likely crowded out credit to the private sector and continues to present risks to financial stability".

But government does not seem bothered by that IMF instructions or "conditionalities", often used to get loans from the Bretton Woods Institutions. 

In a statement this week, the Minister of Finance, Louis Paul Motaze, noted that following instructions from the President of the Republic, the State of Cameroon, which is "a shareholder in the said bank to the tune of 25.6%, has acquired all the remaining shares of (58.08%), held by Société Générale Group, in accordance with the provisions of the Articles of Association of Société Générale Cameroun”. 

The takeover is said to be the culmination of various discussions between the various parties while government's full ownership is said to ensure the "sustainability and continuity of the activities of this leading bank in Cameroon's financial landscape and, on the other hand, to protect and guarantee the interest of its clients, partners, and staff".

The Minister of Finance reassured all stakeholders that the State intends to preserve the bank's good governance, transparency, and performance over the long term, while ultimately considering opening its capital to other strategic national and/or international partners.

It further reaffirms its "commitment to strengthening a robust, inclusive, and efficient banking system, serving Cameroon's economic and social development".

There is no need splitting hairs that a government isn't an efficient business manager to compete with the private sector, especially in a country like Cameroon, often accused of being influenced by tribal or partisan political considerations for top appointments, instead of merit.

There have also been credible and professional commentaries that most government businesses in Cameroon are not profitable, because relatives and friends of the top management are employed where there isn’t any job for them, just to remain idle and get paid from government subsidies from the tax payers.

Taking over the shares of the Société Générale wasn't the intention of Yaounde, as the French investors, since last year, announced their intention to pack out despite their profitability.

The reason for the decision was reportedly the multinational's need to "improve its profitability," but the regulatory tightening of BEAC/COBAC on the repatriation of profits was the dominant reason.

The takeover puts more pressure from the International Monetary Fund and the World Bank, which are instructing that it reduces its 98% controlling stake in the Commercial Bank of Cameroon and transfer it to the private sector.

As the IMF notes in its report, the banking sector in Cameroon is "fragile," especially faced with numerous microfinance institutions and the mobile money revolution.

The government cannot surely compete in such a situation with the private sector. It has to search for private sector partners to buy majority shares in its new venture.

But in the meantime, competent personnel should be employed, based on competence to replace the French employees in the management and Board of Directors who should normally be redundant because of the State's acquisition.

The IMF/World Bank might have had it wrong in the privatisation in sectors like electricity, water and partially, the Cameroon Development Corporation, CDC; but not in the competitive banking sector, where investors and ordinary citizens decide where to put their money.

This article was first published in The Guardian Post Edition No:3506 of Thursday July 17, 2025