(Business in Cameroon) – State-owned agro-industrial company Cameroon Development Corporation (CDC)recorded a net profit of 45.4 billion CFA francs for the 2024 fiscal year, according to an audit report by Forvis Mazars.
This profit is primarily due to the government’s cancellation of 59 billion CFA francs in tax and social debt, which the CDC recorded as extraordinary income. This debt included 24.1 billion CFA francs in social contributions owed to the National Social Insurance Fund (CNPS), which decreased by 80% in 2024, the report stated. The remaining 35 billion CFA francs comprised personnel-related debt.
Concurrently, the CDC’s tax liabilities significantly dropped, falling 78% as of December 31, 2024, after the government cancelled and assumed 14 billion CFA francs of tax debt.
The elimination of these liabilities substantially boosted CDC’s accounting performance. The company posted revenue of 23 billion CFA francs in 2024, marking a 3 billion CFA franc increase from the previous year and an 11% relative growth.
Specializing in banana and rubber production and marketing, CDC generated 13 billion CFA francs in value added, up by 1 billion CFA francs. This value added covered its raw material purchases, supplies, and external charges billed by third parties.
However, this performance was heavily impacted by personnel expenses totaling 20.7 billion CFA francs, as well as depreciation of equipment and buildings. Consequently, the company recorded a negative operating result of 12 billion CFA francs, reflecting a shortfall in its core operations.
The net profit of 45 billion CFA francs is therefore entirely attributable to the cancellation of these accumulated tax and social liabilities, categorized as extraordinary income. In 2023, CDC’s equity was negative at –35 billion CFA francs. Following the debt cancellation, it now stands at 9 billion CFA francs.
This measure aims to restore the company’s equity, in line with Article 664 of the OHADA Uniform Act on Accounting Law, which mandates that equity must not fall below half of the share capital. CDC’s current capital is 53 billion CFA francs.
To further this effort, CDC plans a second capital increase of 14 billion CFA francs, which would raise its share capital to 67 billion CFA francs. As the sole shareholder, the State will execute this increase by converting the cancelled tax and social debts into equity.
“At the Board of Directors meeting held in Yaoundé on January 23, 2025, it was approved that a 14 billion CFA franc tax debt cancelled by the State be converted into equity,” the report indicated. This conversion will involve the issuance of 1,401,933 new shares, each valued at 10,000 CFA francs.
Ludovic Amara
