Fintech in Cameroon
With a population of over 25 million as of 2018 and a GDP of 29 billion USD as of 2019, Cameroon is still considered a lower middle income country. Moreover, the Covid-19 pandemic led the economy to a recession of-2.8 percent. Fortunately, is expected that the growth should record a rebound in 2021 to 3.4% and keep its ascending trajectory in 2022 with a 4.3 percent (Santander Trade, 2021)
Poverty is also a big problem, with the total number of poor in Cameroon reaching the 8.1 million mark in 2014, focusing on the northern regions. The poor performance in the economy stem from weak governance and corruption, which are seen as the main challenges for Cameroon (World Bank, 2021).
Access to financing or banking products is also low as less than 5 percent of Cameroonians have access to a bank account. Furthermore, the microfinance sector cannot fully develop as it is hampered by a regulatory and supervisory framework for microfinance institutions.
Cameroon Fintech ecosystem
Fintech in Cameroon has growing in last years, which is reflected by rising digital financial services adoption. For example, about 76% of the population used mobile money services (Finextra, 2021) According to data compiled by the Bank of Central African States, mobile money transactions in Cameroon reached XAF 2,224.7 billion (US $ 4 billion) between June and September 2017 (Liquid Africa, 2021).
Among the main drivers are improved internet connection, increased sales of phones and mobile technology that made it possible for people to have easier access to financial services, especially benefiting people in rural areas. Also, it is seen that banks in Cameroon have lost a lot of their customers to mobile money and other Fintech services such as e-wallets, mainly due to the stress of waiting hours only to get a simple transaction through (Finextra, 2021).
Currently, digital payment is the principal Fintech sector, with big players like Maviance which raised a US$3 million seed round from pan-African fintech MFS Africa. However, Blockchain and crowdfunding are gaining presence in recent years. In terms of crowdfunding, Guanxi Invest is one of the pioneers in Cameroon, with a community of over 15,000 registered users (Monkeypesa, 2021).
Fintech are a great option for people in Cameroon since this helps them get access to financial services that are currently limited. The fact that only 5 percent Cameroonians have access to a bank account is surprising. The government also needs a big change just like the current regulations; however this is unlikely to change anytime soon.
