(Business in Cameroon) – Shareholders of Cameroon’s cotton development company, Sodecoton, have approved a 500 million XAF dividend for the 2024 financial year.
An auditor’s report seen by Business in Cameroon showed that dividends paid to the State of Cameroon and former French shareholder Geocoton between 2021 and 2023 totaled 1.45 billion XAF. Of that amount, the Cameroonian state, the majority shareholder, received 1.33 billion XAF: 835 million in 2021 and 246.3 million in both 2022 and 2023. Geocoton, which has now fully exited the company, received 127.5 million XAF for 2023 after two years without payment.
The latest dividend follows a particularly strong year. At the general meeting, attended by representatives from the Ministry of Finance, SMIC (owned by billionaire Baba Ahmadou Danpullo), and senior management, the company reported 2024 revenue of 223.3 billion XAF, up 30% from 171.1 billion in 2023. Net profit rose to 5.49 billion XAF from 3.4 billion the previous year, while shareholders’ equity increased by about 5 billion XAF to reach 21.5 billion. The 500 million XAF payout, roughly 9% of 2024 net profit, reflects a conservative dividend policy aimed at strengthening the company’s capital base.
Government Takes Full Control, Plans Relisting
Geocoton’s withdrawal marks a turning point in Sodecoton’s governance. By repurchasing the French group’s 30% stake for 46 billion XAF, the State of Cameroon raised its ownership from 59% to 89%. The remaining 11% is held by Baba Ahmadou Danpullo’s SMIC, which is reportedly in talks to sell its shares.
This renewed public control secures Sodecoton’s industrial future and forms part of broader efforts to improve performance, clarify ownership, and preserve investment capacity. The move reassures producers and processors across the cotton value chain, confirming Sodecoton’s position as a key player in Cameroon’s cotton industry.
However, the State’s expanded role is not meant to be permanent. The government plans to relist part of Sodecoton’s shares on the Central African Securities Exchange (Bvmac). Listed since August 2022 among public enterprises earmarked for private sector participation, Sodecoton is central to Cameroon’s broader strategy to modernize the management of state-owned firms and invigorate the regional capital market.
In the long term, the move aims to attract new investors, diversify funding sources, and reinforce Sodecoton’s contribution to rural development in the Northern regions. In a context of volatile markets and rising costs, the government’s objective is clear: maintain profitability to sustain investment in ginning, logistics, and processing, while paying dividends that reflect the renewed strength of the company’s business model.
Amina Malloum
