BVMAC : Socapalm and Safacam face investor reluctance despite rising stock market

(LVDE) – During the September 9, 2025 trading session, the Central African Stock Exchange recorded strong demand for shares of Socapalm and Safacam, but investors held on to their securities.

Located in the economic capital, Douala, the Central African Stock Exchange (BVMAC) witnessed a peculiar dynamic on September 9, 2025. Investors showed a marked interest in the shares of the Cameroon Oil Palm Plantations Company (Socapalm) and the African Forestry and Agricultural Company of Cameroon (Safacam). According to the Official Quotation Bulletin (BOC), order books recorded significant requests for 344 Safacam shares and 920 Socapalm shares.

Yet, despite this growing demand, current holders chose not to part with their stocks. This phenomenon reflects, on the one hand, the appeal to new investors eager to benefit from the encouraging performance of these companies, and on the other hand, the determination of existing shareholders to retain their assets. Both companies, subsidiaries of the Luxembourg-based Socfin group, are firmly established in palm oil and rubber production—sectors that remain buoyant in Cameroon.

The dominant position of Socapalm and Safacam in the Cameroonian palm oil market is reinforced by demand that exceeds supply. This situation, compounded by a widening gap between production and the needs of processing industries, ensures financial stability for these companies. Growth prospects in the sector appear even more promising as palm oil consumption remains strong both locally and internationally.

To illustrate this dynamic, the financial performance of the two companies for the year ended December 31, 2024, is revealing. Safacam posted a net profit of 2.78 billion CFA francs, with a total dividend of 442.1 million CFA francs paid to shareholders, representing less than 20% of its net earnings. This decision not to distribute all profits reflects a reinvestment strategy to support future growth. Socapalm, for its part, outperformed these results, paying out a total dividend of 1.7 billion CFA francs to its shareholders.

These solid performances explain the strong interest from investors in the companies’ securities, which were among the first to be listed on the BVMAC. Their financial results, combined with favorable market prospects, give these stocks a reputation as safe and profitable investments.

However, this situation raises questions about the future evolution of their share prices. While investor demand is high, the desire to retain shares could limit market liquidity. Financial analysts are also questioning the companies’ ability to sustain their performance in an ever-changing economic environment, particularly with regard to commodity prices and shifts in agricultural policies.

Esther Grace