The Cameroonian government has intervened to dissuade billionaire businessman Baba Ahmadou Danpullo from selling his stake in the Société de Développement du Coton (Sodecoton).
According to Billionaire Africa, the Presidency instructed the Ministry of Finance to open negotiations with Danpullo, who had been preparing to divest his 11 percent stake, estimated at XAF 17 billion. For several months, he had reportedly been seeking buyers, approaching Asian investors through local intermediaries.
The government recently tightened its control over Sodecoton by acquiring the 30 percent stake previously held by France’s Geocoton for CFA 46 billion, thereby increasing the State’s ownership from 59 percent to 89 percent in the agro-industrial firm.
Sources say the government considers Danpullo’s continued presence, through his investment firm, Société Mobilière d’Investissement du Cameroun (SMIC), as vital for maintaining an external perspective in the company’s governance.
Meanwhile, local groups such as the National Confederation of Cotton Producers of Cameroon (which represents more than 200,000 farmers) have expressed interest in acquiring shares. The group reportedly offered to buy 12 percent of the capital for about XAF 18 billion ($31.8 million), while the staff mutual Ficocam proposed to acquire 1.5 percent.
Sodecoton is among Cameroon’s top four revenue-generating companies, following the National Hydrocarbons Company (SNH), Tradex, and Congelcam, with the 2022 INS ranking confirming its recovery and strategic importance
