In Cameroon MTN Mobile Money activity increased by 28% in 2023
In 2023, Cameroon witnessed a significant surge in the activity of MTN Mobile Money, marking a 28% increase from the previous year. This remarkable growth is a testament to the region’s increasing reliance on digital financial services and MTN’s strategic positioning in the market.
In Cameroon, the MTN company continues to benefit from the rise of Mobile Money despite the tough competition imposed by the French Orange. The proof is that during the year 2023, the Cameroonian subsidiary of the South African telecommunications giant achieved a turnover of 59.3 billion CFA francs (more than 97.58 million dollars). According to the group’s financial statements, this performance is up 28.4% compared to 2022 and represents 18.76% of the overall turnover (316 billion CFA francs) achieved by the company in the country (including the call and internet connection segments).
The South African operator claims leadership in the Cameroonian Mobile Money market with just over 5.6 million active subscribers in this segment, out of a total of 11 million subscribers listed. MTN Cameroon has thus succeeded in consolidating its leadership in a context marked by legal proceedings during which its bank accounts were seized due to a conflict with Baba Danpullo’s holding company, Bestinver, and its South African banker First National Bank (FNB), a subsidiary of FirstRand Bank (FRB), one of the shareholders of the MTN group. A case that has not affected the company’s results.
“MTN Cameroon remains operational and present on the ground. Subscribers, Cameroonian users continue to appreciate MTN services, reassures an executive of the telecommunications company. The context linked to the legal case that we know is limited to the banks; it has nothing to do with the deployment of MTN which has the best deployment and the best network in the country, and in which Cameroonians continue to place their trust.” If in Cameroon, the South African operator seems to have found fertile ground for its Mobile Money activity, it is also because the incursions of banks like Afriland (Sara), Société Générale (YUP), UBA (M2U Money) in payment and electronic money transfer activities are slow to bear fruit.
Thus, to conquer more market share, the CEO of the group announced on the sidelines of the 15th BRICS Summit that an investment of 25 million dollars (more than 15 billion CFA francs) will be made for the benefit of its mobile Money branch in Cameroon over the next three years. MTN’s investment in Cameroon should enable the company to strengthen the activities of this branch.
MTN Cameroon’s financial results for 2023 showed a robust revenue of CFA325.7 billion, a 10.9% increase from 2022, outpacing its main competitor, Orange Cameroon. This growth is indicative of a broader trend in the adoption of fintech services across the country. The company’s success can be attributed to its comprehensive range of services, including credit lending, which saw a staggering 44.5% surge, reaching CFA 57.5 billion.
The rise in Mobile Money activity is part of a larger narrative of digital transformation in Cameroon. By the end of December 2023, MTN boasted 5.6 million active Mobile Money users, the highest in five years, and an average revenue per user in Cameroon reaching a new high of CFA2542.02. These figures reflect the growing confidence and preference for mobile financial services among Cameroonians.
MTN’s Ambition 2025 strategy played a crucial role in this growth, focusing on expanding digital and fintech services despite challenging global and regional macroeconomic conditions. The company’s investment in its network infrastructure and the resilience plan significantly improved network availability, which, in turn, supported the growth of data and fintech services.
The expansion of MTN Mobile Money in Cameroon also highlights the potential for financial inclusion in the region. With a large portion of the population lacking access to traditional banking services, mobile money offers a viable alternative for secure transactions and financial management. This is particularly important in rural areas, where access to physical bank branches is limited.
However, the journey is not without its challenges. The internet market in Cameroon continues to face consumer grievances regarding service quality across all providers. Moreover, MTN is navigating through legal proceedings that have led to the freezing of its bank accounts due to a dispute involving one of its shareholders[^1]. These issues underscore the complexities of operating in an emerging market and the need for continuous improvement in service delivery.
The growth of MTN Mobile Money in Cameroon is a clear indicator of the shifting dynamics in the financial sector, where digital platforms are becoming the cornerstone of economic transactions. As MTN continues to innovate and expand its services, it is poised to play a pivotal role in shaping the future of finance in Cameroon and beyond.
