Cameroon: Société Générale, Allianz, Govt Lose CFA5 Billion in YUP Mobile Money Collapse

Shareholders in YUP Cameroon, a mobile payment subsidiary of Société Générale, have lost nearly $8 million (around CFA4.8 billion) as the company shut down in 2022, according to a liquidation notice disclosed by Africa Intelligence. Société Générale Cameroon held over 80% of the company, while other shareholders included the State of Cameroon and Allianz Cameroon, though their stakes weren't specified.

On March 1, 2022, Nicolas Pichou, CEO of Société Générale Cameroon, informed employees of YUP's closure. Launched in 2017 across seven African countries Côte d’Ivoire, Senegal, Burkina Faso, Cameroon, Guinea, Ghana, and Madagascar—the platform struggled to maintain profitability despite its reach. Pichou explained that despite efforts to expand market share and enhance customer experience, YUP could not create a viable model, and market conditions made its continuation unsustainable.

Following the announcement, YUP set a three-month deadline from March 15, 2022, to reimburse customer deposits. During an extraordinary shareholders’ meeting on December 29, 2023, in Douala, YUP entered liquidation, with financial expert Manfred Penda appointed as liquidator.

YUP’s Mobile Market Struggle: 96% of Accounts Remained Inactive

Despite five years of effort in Cameroon’s dynamic mobile money market, YUP’s offering failed to achieve profitability. The dominant positions of established operators, MTN and Orange, posed a significant challenge. These two companies, having entered the market nearly a decade before YUP, established extensive networks with their MTN Mobile Money and Orange Money services, leaving little room for new players.

A 2022 report from the Bank of Central African States (BEAC) highlights the scale of YUP’s struggle. By the time it shut down in March 2022, YUP Cameroon had attracted 689,071 mobile money customers,pale in comparison to the more than 21 million accounts registered in Cameroon that year. Even more telling, only 22,332 of YUP’s accounts were active, meaning that over 96% of accounts saw little to no use after their initial setup.

Meanwhile, Orange and MTN continue to vie for dominance. In 2021, Orange Cameroon claimed 70% of the mobile money market with 10 million accounts and over 100,000 business partners. However, MTN Cameroon’s CEO, Mitwa Ng’ambi, countered this, stating that MTN’s Mobile Money Corporation now boasts the country’s largest active user base, solidifying its leadership in mobile financial services.

SOURCE: BUSINESSINCAMEROON