- Camtel plans to launch mobile financial services in 2025, challenging market leaders — MTN and Orange.
- Aiming to enhance financial inclusion, Camtel targets Cameroon’s large unbanked population.
- The state-owned operator will complete a feasibility study by the end of 2024 to guide its entry strategy.
- Camtel’s services could spur innovation and pricing shifts in Cameroon’s mobile finance sector.
Cameroon Telecommunications (Camtel), the country’s state-owned telecom provider, is preparing to launch mobile financial services by 2025, hoping to shake up a sector largely dominated by MTN and Orange.
This initiative, currently undergoing feasibility studies, reflects Camtel’s drive to diversify and leverage its existing telecommunications infrastructure to support digital finance services, a move that could deepen financial access for Cameroon’s underserved populations.
Financial inclusion remains a pressing need across Cameroon, where only 15% of the adult population uses traditional banking services. By contrast, mobile money usage has seen substantial growth, with users opting for these digital platforms due to their convenience and accessibility.
As of 2022, nearly 43% of Cameroonians aged 15 and older used mobile money services, up from about 30% in 2017. The sector has been primarily driven by MTN and Orange, which offer widespread agent networks and well-established platforms that facilitate money transfers, payments, and savings options without the need for a traditional bank account.
Despite the stronghold of MTN and Orange, Camtel’s planned entry could intensify competition in Cameroon’s fintech space. The company’s presence may drive 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 overcome regulatory and logistical hurdles. This support could aid in building a robust agent network and securing the partnerships necessary to succeed in mobile financial services.
Camtel’s expansion into fintech aligns with a trend seen among telecom operators across Africa, where diversification into digital finance has emerged as a strategic pathway to growth. Telecom companies from Kenya’s Safaricom to South Africa’s Vodacom have 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 a gap left by traditional financial institutions.
For Camtel, however, the road ahead may present some challenges. Establishing customer trust in financial services, particularly as a new entrant, will be crucial.
Give it a try, you can unsubscribe anytime. Privacy Policy.
The telco will need to differentiate itself from competitors, potentially by offering unique services, better user experience, or localised financial solutions designed to appeal to specific needs within the Cameroonian market.
By bridging the gap between telecommunication and financial services, Camtel has the potential to make a lasting impact on Cameroon’s economic landscape, fostering greater financial inclusion and stimulating competition in a sector 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. The funding, which aims to bridge gaps in connectivity and financial inclusion, will allow telecom operators like Camtel to improve service reach in underserved areas.
