As part of the financial restructuring of the Cameroon Development Corporation (CDC), the Minister of Finance released an envelope of 20 billion FCFA intended to partially settle salary arrears accumulated between 2018 and 2022. This measure, which is part of a global plan aimed at clearing the social and tax debt of the public agro-industrial company, is a real lifeline for the 20,000 employees of this structure, formerly flagship of Cameroon’s agro-industry and now destroyed by repeated attacks by separatist militias.
In a context where state coffers are under increased pressure, the government’s decision, carried out rigorously and quickly by the Minister of Finance Louis Paul Motaze, reflects a strong political will. President Paul Biya also reportedly gave firm instructions to avoid any dismissals within the CDC, despite the company’s structural and cyclical difficulties. “These measures demonstrate the solidarity of the State and its commitment not to abandon CDC employees, who are at the heart of the economic and social stabilization of regions in crisis,” said a close collaborator of Minister Motaze.
This disbursement, so much hoped for over several years of distress, was greeted with relief by CDC employees, who were plunged into a critical situation. For these 20,000 families, this breath of financial oxygen marks the end of a long period of uncertainty. “Pockets that have been empty for years are finally starting to fill up. This is a strong signal that restores dignity to these workers. It’s a real Christmas gift for 20,000 families. We thank the Minister of Finance and through him, the Head of State Paul BIYA,” confided a staff delegate.
In addition to this initial financing, an additional sum of 15 billion FCFA will be allocated at the beginning of 2025 to complete the payment of arrears. At the same time, the government plans to honor unpaid contributions to the National Social Security Fund (CNPS), estimated at 30 billion FCFA, as well as 49 billion FCFA in taxes owed to the State. These decisions reflect the commitment of President Paul Biya, faithfully implemented by the Minister of Finance, Louis Paul Motaze, to preserve the jobs of 20,000 CDC workers, despite the socio-economic crises hitting the English-speaking regions.
A coordinated plan to turn around the CDC
The government decision arises from the recommendations of a Working Group created in August 2023 by the board of directors of the CDC, through Resolution No. 1203. Responsible for assessing the company’s debt situation and proposing concrete solutions, this group prepared a report submitted to the government.
The proposals include urgent measures such as: Clearing the salary debt of 35.75 billion FCFA through a tripartite operation involving the State, a commercial bank and employees, spread over two years; Negotiation with the CNPS for a staggered repayment of the social debt of 28.1 billion FCFA over seven years, with two years of grace without interest; The conversion of tax debts of 31.8 billion FCFA into capital for the CDC, accompanied by budgetary coverage for the General Directorate of Taxes.
A strategy to revive activity and stabilize affected regions
These measures, described as historic, aim to restore the financial viability of the CDC while contributing to the stabilization of the North-West and South-West regions, hard hit by the Anglophone crisis. According to Fai Yengo Emmanuel, chairman of the Working Group, their implementation would build confidence and accelerate the pacification process.
CDC Board Chairman Hope Sona Ebai welcomed these efforts by the government, emphasizing the strategic importance of the company. “The CDC, as the second largest employer after the State, is essential not only for the national economy but also for the stability of regions in crisis,” he said.
However, Ebai and the director general of the CDC, Franklin Ngoni Njie, recall that the sustainable recovery of the company requires a modernization of its plantations, factories and equipment. The crisis has seriously affected crops, particularly the banana sector, which generated an annual turnover of 35 billion FCFA.
To ensure a sustainable future, the government is also committed to financing new infrastructure, such as an oil mill and a rubber factory. However, as Franklin Njie points out, “the key to recovery lies in plantations. Agriculture does not tolerate inactivity; we must rehabilitate and diversify our farms to guarantee their productivity.”
The CDC, once a flagship of the Cameroonian economy, has been struggling for several years to emerge from the slump caused by separatist militias. Observers believe that the government’s financial commitment could mark a decisive turning point for its recovery, making it possible to both preserve employment and contribute to the economic and social reconstruction of the English-speaking regions.
With these ambitious measures, the CDC seems on track to regain its role as an economic engine and social stabilizer, despite the many challenges that remain.
