Cameroon Telecommunications (Camtel), the state-owned telecom provider, is gearing up to launch mobile financial services by 2025, aiming to challenge the market dominance of MTN and Orange. This strategic move is part of Camtel’s broader effort to enhance financial inclusion and cater to Cameroon’s large unbanked population.
Currently, Camtel is conducting a feasibility study, which is expected to be completed by the end of 2024. The results of this study will guide the company’s entry strategy into the mobile financial services sector. By leveraging its existing telecommunications infrastructure, Camtel hopes to diversify its offerings and support digital finance services, thereby deepening financial access for underserved populations in Cameroon.
Financial inclusion remains a significant challenge in Cameroon, where only 15% of the adult population utilizes traditional banking services. In contrast, mobile money usage has seen substantial growth due to its convenience and accessibility. As of 2022, nearly 43% of Cameroonians aged 15 and older used mobile money services, a significant increase from about 30% in 2017. This sector has been primarily driven by MTN and Orange, which have established extensive agent networks and platforms that facilitate money transfers, payments, and savings without the need for a traditional bank account.
Despite the stronghold of MTN and Orange, Camtel’s planned entry into the mobile financial services market could intensify competition within Cameroon’s fintech space. The introduction of Camtel’s services may spur innovation, broaden service options, and potentially lead to lower fees, benefiting consumers across the board.
Camtel’s unique advantage lies in its status as a government-backed entity, which may help it navigate regulatory and logistical challenges more effectively. This support could be instrumental in building a robust agent network and securing the necessary partnerships to succeed in the mobile financial services sector.
Camtel’s expansion into fintech aligns with a broader trend among telecom operators across Africa, where diversification into digital finance has emerged as a strategic pathway to growth. Telecom companies such as Kenya’s Safaricom and South Africa’s Vodacom have successfully ventured into mobile banking to meet the growing demand for accessible financial solutions. Mobile money has proven to be a transformative force in sub-Saharan Africa, often filling gaps left by traditional financial institutions.
However, Camtel may face challenges in establishing customer trust in its financial services, particularly as a new entrant. The company will need to differentiate itself from competitors by potentially offering unique services, a better user experience, or localized financial solutions tailored to specific needs within the Cameroonian market.
By bridging the gap between telecommunications and financial services, Camtel has the potential to make a lasting impact on Cameroon’s economic landscape. This move could foster greater financial inclusion and stimulate competition in a sector that is central to the region’s digital economy.
In support of these expanding digital initiatives, Cameroon received a $38 million grant in mid-2024 to improve its digital and telecom infrastructure. This funding aims to bridge gaps in connectivity and financial inclusion, enabling telecom operators like Camtel to enhance service reach in underserved areas.
