Cameroon State General Bank of Cameroon Sale Accelerated

• Cameroon is accelerating the sale of its 83.68% stake in General Bank of Cameroon (GBC).
• The divestment aims to avoid a 150 billion FCFA digital transformation cost and address concerns from international lenders.
• Direct negotiations are prioritized with the national NSIA-CNPS consortium, which is favored by the Presidency.
• Other African banking groups, including BGFIBank, Coris Bank International, and Zenith Bank, have shown interest.
• The final sale requires mandatory approval from the Central African Banking Commission (COBAC).

The finalization of this expedited sale process is contingent upon receiving mandatory validation from the Central African Banking Commission (COBAC).

The Cameroonian state is moving swiftly to offload its substantial 83.68% ownership stake in the General Bank of Cameroon (GBC), formerly known as Société Générale Cameroun. This decision to accelerate the Cameroon State General Bank of Cameroon sale comes directly from the Presidency of the Republic, which has mandated a rapid conclusion to the divestment process. The state initially increased its holding to 83.68% in May 2026, following an earlier acquisition of 58.08% of the bank's shares, making it the dominant shareholder.

Authorities in Yaoundé are keen to avoid any protracted delays, specifically opting against a conventional public tender process. This strategic choice is informed by past experiences, such as the privatization of Commercial Bank Cameroon (CBC), which has faced significant stagnation over several years, leading to an undesirable enmeshment of the state. Instead, the government is prioritizing direct, one-on-one negotiations to expedite the Cameroon GBC divestment and finalize the transaction without undue bureaucratic holdups, aiming for efficiency and speed.

A primary driver for this significant Cameroon state asset disposal is the considerable financial burden associated with the bank's necessary digital transformation. The General Bank of Cameroon requires a complete overhaul of its information technology systems, a costly undertaking estimated at 150 billion FCFA to replace the legacy infrastructure from Société Générale. The state aims to avoid shouldering this entire expense alone, which would be necessitated by continued public ownership of the institution.

Beyond the immediate financial outlay for technological upgrades, the divestment also addresses concerns from key international lenders. Institutions such as the International Monetary Fund (IMF) and the African Development Bank (AfDB) have reportedly expressed apprehension regarding the Cameroonian state's expanding and potentially risky presence within the nation's banking sector. This external pressure from financial partners underscores the strategic importance of reducing state involvement in GBC and rebalancing the financial landscape.

While direct negotiations are underway, particularly with the national consortium NSIA-CNPS, other significant players in the African banking landscape have also expressed keen interest in the General Bank of Cameroon. The NSIA-CNPS General Bank of Cameroon consortium, which includes the National Social Insurance Fund, is reportedly favored by the Presidency of the Republic. However, prominent regional banks such as Gabon's BGFIBank, Burkina Faso's Coris Bank International, and Nigeria's Zenith Bank are also closely monitoring the Cameroon banking sector M&A opportunity.

The finalization of this expedited sale process is contingent upon receiving mandatory validation from the Central African Banking Commission (COBAC). This regulatory body's approval is a critical step for any significant transaction within the banking sector of the Central African Economic and Monetary Community (CEMAC) region, ensuring adherence to prudential standards and financial stability. The COBAC General Bank of Cameroon approval will be the ultimate determinant for the successful transfer of ownership.

Lawyers advising financial institutions or investors interested in Cameroon's banking sector should closely monitor the accelerated sale process of General Bank of Cameroon, particularly the direct negotiation strategy and the critical COBAC approval, as it represents a significant M&A opportunity and a shift in state involvement.

Source: Original reporting via Actu Cameroun