MTN Veteran Executive Tapped to Head Cameroon Expansion for Wave
Wave Enters Cameroon's Mobile Money Market
Fintech unicorn Wave has made its move into Cameroon's dynamic mobile money market, partnering with Commercial Bank Cameroun (CBC) to offer services like deposits, withdrawals, peer-to-peer transfers, and bill payments.
The appointment of Joel Bertrand Ndjodo, a former MTN executive with over 20 years of digital finance experience, as Wave's Country Manager for Cameroon, is a strategic move aimed at driving Wave's expansion in the region. Cameroon, which accounts for over 70% of mobile money transactions in the six-nation CEMAC bloc, presents a highly promising market for Wave.
Mobile money transactions in Cameroon have surged in recent years, with a 162% increase in value between 2019 and 2023, reaching €37 billion. Active accounts also saw a 144% increase, reaching 24 million.
Wave's entry into the market coincides with strong financial backing, including a €117 million debt facility led by Rand Merchant Bank and supported by international development finance institutions. This funding will support growth in Cameroon and other African countries served by Wave.
However, the market presents challenges such as a 0.2% tax on every mobile money transaction that operators must absorb in an already low-margin environment. Brand loyalty heavily favors incumbents, making it a tough market to gain traction.
Despite these challenges, Wave's entry into Cameroon's mobile money market is setting the stage for a fierce battle. The company's trademark 1% transfer fee and free withdrawals, which have shaken up markets in Senegal and Côte d'Ivoire, have yet to be implemented in Cameroon. If they are, they may force other competitors to cut fees to remain competitive.
It's worth noting that Société Générale's YUP service, despite strong backing, shut down in 2022 after failing to gain traction in Cameroon's mobile money market. The success of Wave in Cameroon remains to be seen, but with the right strategy and strong financial backing, it could shake up the market and provide more affordable mobile money services to consumers.
- Wave Secures €117m for African Expansion
- Wave Appoints Joel Bertrand Ndjodo as Country Manager for Cameroon
- Cameroon's Mobile Money Market Grows Rapidly
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