Cameroon’s second largest employer after the state, the Cameroon Development Corporation (CDC), which specializes in the production, processing and marketing of export crops such as bananas, palm oil and rubber, is going through an alarming financial crisis. In five years, the company has accumulated a colossal debt of 81.7 billion CFA francs. This is divided between a tax debt of 31 billion CFA francs, a social debt to the National Social Security Fund (24 billion CFA francs) and a salary debt estimated at 35.7 billion CFA francs.
This situation is mainly due to the security crisis that has been raging in the English-speaking regions since 2016. The CDC’s activities have been regularly suspended, weakening its finances. Despite a recent improvement in the security situation, the salary debt of 55 months of arrears is plunging employees into deep disarray.
A dramatic drop in performance
Before the crisis, the CDC was performing well. It had more than 20,000 employees and generated annual revenues of 55 billion CFA francs from the export of agricultural products. But the situation has deteriorated. The number of employees has fallen to around 13,000, a decrease of 35%, while revenues have plummeted to 20 billion CFA francs in 2024, a loss of 63.6%. As for exports, they have fallen from 71,789 tonnes in 2015 to only 24,216 tonnes in 2024, a drop of 66%. This poor performance illustrates the scale of the difficulties facing this 77-year-old public company.
A recovery plan in slow motion
In September 2022, the Cameroonian Prime Minister instructed the development of a recovery plan to clear salary debts and revive the CDC. The plan provides for the payment of arrears in two tranches: 20 billion CFA francs in 2024 and 15.7 billion CFA francs in 2025. However, the disbursement of funds remains suspended on interminable negotiations between the State and partner banks. Initially, NFC Bank had been selected to manage the payments, but its ongoing restructuring disqualified it. Currently, three banks, FedhEn Capital, Société Générale Cameroun, and NFC Bank, are in the running to execute the project. According to internal sources, Société Générale Cameroun has submitted a proposal to its parent company in France, and a decision is expected in the coming days.
Employees angry, strike threatens
Despite promises of payment, the slow pace of negotiations has aggravated employee discontent. In 2022, they were already denouncing 28 months of salary arrears. This figure has almost doubled to 55 months in 2024, according to current demands. Faced with this situation, a new strike is looming, threatening to paralyze the meager still functional activities of the CDC.
The CDC, once a pillar of the Cameroonian economy, is today a company on borrowed time. If the State fails to quickly implement the recovery plan, the situation could worsen further, compromising the survival of this agro-industrial giant. More than an economic issue, it is a social and strategic question for Cameroon.
