SODECOTON : The State of Cameroon blocks Baba Danpullo’s withdrawal and his 11% stake in the company

(LVDE) – The announced withdrawal of Baba Ahmadou Danpullo, a key investor in the Cotton Development Company (Sodecoton), has been blocked by the Presidency of the Republic of Cameroon. Negotiations for a compromise have been launched to maintain his influence within this strategic enterprise of the cotton sector.

In a move likely to have major implications for Cameroon’s cotton industry, the Presidency has recently halted Baba Ahmadou Danpullo’s plan to withdraw from Sodecoton’s shareholding structure. This intervention comes at a time when economic stakes are high, with the government seeking to preserve a balance between public and private capital. According to sources close to the matter, the Etoudi Palace has instructed the Ministry of Finance to open discussions with Danpullo to dissuade him from selling his shares. One authorized source confirmed : “An agreement was reached with the State for him to stay, so he will not be leaving.”

Through his investment vehicle, the Société Mobilière d’Investissement du Cameroun (SMIC), Baba Danpullo holds about 11% of Sodecoton’s capital. For several months, he had been preparing to divest his shares, engaging in talks with Asian partners and seeking support from local advisory firms for the transaction. His stake is estimated to be worth between 15 and 17 billion CFA francs. From the State’s perspective, his withdrawal would have disrupted the ownership structure of a company deemed strategic for the national cotton sector. A source within the Ministry of Finance emphasized the need for balanced governance : “It was important to maintain an external perspective in the company’s management.”

These developments come as the State recently acquired 30% of Sodecoton’s shares previously held by Advens-Geocoton for 46 billion CFA francs, increasing public ownership to 89%. This acquisition has reshaped internal dynamics within the industry. The National Confederation of Cotton Producers of Cameroon (CNPC-C), representing over 200,000 producers, has expressed interest in acquiring 12% of the company’s shares (roughly 18 billion CFA francs). Meanwhile, the employees’ mutual fund Ficocam is reportedly seeking 1.5%, while Sodecoton itself plans to raise its own participation by 4.5%.

Sodecoton is also preparing for a stock market listing, having initiated the selection process for a financial intermediary to guide the operation. This step aims to strengthen transparency, improve governance, and attract new investors. By ensuring Baba Danpullo remains among the shareholders, the government is sending a strong signal about the importance of maintaining a private-sector reference point, especially as public ownership becomes dominant.

Keeping Danpullo within Sodecoton’s shareholding structure is seen as a way to stabilize governance ahead of the planned IPO, while reassuring both investors and producers of the company’s capacity to balance public service obligations with the discipline required by capital markets. This balance is all the more crucial as the cotton sector—vital to rural development in northern Cameroon—faces mounting economic challenges and the urgent need to modernize its structures.

By Amélie Yandal