(Business in Cameroon) – In 2023, shares of the African Agricultural Forestry Company of Cameroon (Safacam), the palm oil and rubber producer affiliated with Luxembourg-based Socfin, rose by 8.2% on the Central African Stock Exchange (Bvmac). According to Bvmac’s 2023 report, Safacam’s stock, valued at CFA24,500 at the start of the year, closed at CFA26,500 by year-end.
The report noted that Safacam’s stock trading activity declined significantly during the year due to a lack of available shares on the market. Despite high prices offered by buyers, many Safacam shareholders chose to hold their shares rather than sell, demonstrating a “buy and hold” strategy that prioritized long-term investment over short-term gains, according to Bvmac.
On May 10, 2023, for instance, only 158 Safacam shares were traded, while buyer demand exceeded 1,300 shares, making it the most sought-after stock on the market. Investors’ loyalty to Safacam stock is understandable.
Safacam operates primarily in the palm oil sector, a resource that remains in high demand in Cameroon due to an ongoing supply shortage. As a result, local refineries, which are growing in number, purchase the entire domestic production of palm oil each year. Additionally, sources in the palm oil industry revealed that authorities discreetly increased the regulated sale price of palm oil to processors in 2022 from CFA450 to CFA550 per liter. This increase also supported a rise in the purchase price of palm nuts from producers, from CFA60 to CFA100 per kilogram.
Thanks to this favorable market environment, Safacam concluded 2022 with a net profit of CFA2.7 billion, an 11% increase from 2021. The entire profit was distributed as dividends to shareholders, with CFA488.5 million allocated to shareholders whose stocks are listed on the Cemac financial market, providing a payout of CFA1,966.9 per share. Payment of dividends for publicly traded shareholders, who hold 20% of Safacam’s capital, took place on July 24, 2023.
