Gov't set to sell CICAM to Indian firm, Arise IIP.

But over time, the company has not been able to break even and make profit to be able to reimburse the money. 

Government, through the Ministry of Finance is therefore proposing that this loan be converted into equity that will increase its share capital to 85%.

This will overturn the prevailing shareholding structure where the National Investment Corporation, SNI is presently the major shareholder.

Indeed, business in Cameroon reports that CICAM shareholders are presently in dispute as the proposed arrangement by the government will mean that SNI will cease from holding 75% of the share capital and be reduced to holding a mere 15% of the share capital of the corporation.

This, the news outlet said has sparked a revolt from the SNI, which fears losing its majority shareholder status. 

“At the moment, no consensus has been reached between the two parties," a reliable source told the media organ.

Disclosing further that these discussions are taking place as the Cameroonian government continues to negotiate with the Indian group, Arise Integrated Industrial Platforms, Arise IIP, to inject capital into CICAM by buying over government's share capital. 

The source added that the takeover talks with the Indian Group, which began in late 2024, are expected to be conclude by the end of this month of September 2025. 

Meanwhile, Arise IIP is seeking to acquire approximately 85% of the company, which is exactly the amount of state capital holding at CICAM if the 3 billion FCFA unpaid or unreimbursed loan is converted into equity. However, the sources say the government is cautious about outright sale of its shareholding as it aims at retaining at least 30% holding in order to continue having a say in the company's major strategic decisions.

Overall, the sources say the maneuvers are coming amid a long-running crisis at CICAM, which has faced severe financial and operational difficulties for over a decade.

 Its negative equity had fallen to a level that, under OHADA law, should have led to the liquidation of the corporation. 

To prevent this, the Minister of Finance reportedly ordered a revaluation of the company's assets, including its factories, buildings, and land reserves. 

The accounting adjustment artificially boosted the company's equity from a negative 19 billion FCFA to a positive 24 billion FCFA, giving the state significant leverage in the negotiations.

Despite the accounting improvement, the corporation remains burdened with a 35 billion FCFA debt, which has strained its cash flow and limited its operational capacity. 

This has resulted in a loss of competitiveness; for the past four years, due to lack of modern equipment and sufficient production capacity. 

The company has been forced to import fabric, even for the wrappers used for International Women's Day—a paradoxical situation for a company meant to promote local cotton production, transformation and use.

However, sources say CICAM's rescue plan is considered strategic by industry players, who hope it will reduce the country's dependence on textile imports and revive a declining national industry.

This article was first published in The Guardian Post Edition No:3555 of Friday September 05, 2025