Shanda Tonme calls for Orange and Mtn to list on CM stock exchange

• Shanda Tonme, President of COMICODI and MPDR, has written an open letter to the Minister of Finance, Louis Paul Motazé, calling for Orange and MTN to list on the BVMAC (Central African Securities Exchange), which is based in Douala, Cameroon.
• Tonme accuses the companies of accumulating enormous profits without contributing significantly to Cameroon's economy.
• The proposed listing would require significant regulatory changes, including government intervention and potential updates to rules from the Central African Banking Commission (COBAC) and Cameroon's telecommunications regulator, ART.

Il faut imposer au plus vite à ces deux sociétés d'entrer en bourse, ouvrir leur capital et permettre que le maximum de personnes y accède, en fixant le prix de l'action entre 10.000 (dix mille) et 15000 (quinze mille) Cfa au trop.

Shanda Tonme, a prominent figure in Cameroon's civil society, who is also the President of the Independent Commission Against Corruption and Discrimination (COMICODI) and President of the Popular Movement for Dialogue and Reconciliation (MPDR), has written an open letter to the Minister of Finance, Louis Paul Motazé, calling for Orange and MTN to list on the BVMAC (Central African Securities Exchange), which is based in Douala, Cameroon. In the letter, Tonme argues that the two telecom companies have accumulated enormous profits without contributing significantly to the country's economy. He claims that the companies' actions are 'insolent' and 'exploitative,' and that they have become 'banks in all but name.' Tonme demands that the government impose a listing on the BVMAC (Central African Securities Exchange), allowing for greater public ownership and transparency.

According to Tonme, Orange and MTN have amassed over 1 trillion CFA francs annually, largely at the expense of Cameroonian users. He accuses the companies of violating COBAC norms and ethics by engaging in questionable financial practices. Tonme also criticizes the lack of investment in tangible assets, such as buildings or infrastructure, and instead highlights the companies' reliance on 'flattering' sponsorships to maintain a positive public image.

Tonme's letter concludes with a call for the government to take decisive action, imposing listing requirements on Orange and MTN while also demanding that they construct a respectable headquarters worthy of their massive profits.

The proposed listing of Orange and MTN on the BVMAC (Central African Securities Exchange) would require significant regulatory changes. Currently, there is no clear framework for telecom companies to list on the exchange, and any such move would need to be facilitated by government intervention. The Central African Banking Commission (COBAC), which regulates the banking sector within CEMAC, has established norms and ethics that govern financial institutions, but Tonme's letter suggests that these rules have been consistently flouted by Orange and MTN. Cameroon's telecommunications regulator is the Agence de Régulation des Télécommunications (ART), also known as the Telecommunications Regulatory Board (TRB).

The listing of telecom companies on a national stock exchange is not unprecedented in Africa; several countries have implemented similar regulations to promote greater public ownership and transparency. However, the specifics of such listings can be complex and require careful consideration of regulatory frameworks, market conditions, and investor interests.

The potential listing of Orange and MTN on the BVMAC (Central African Securities Exchange) has significant implications for lawyers advising clients with interests in these companies. If the government imposes listing requirements, it could lead to increased regulatory scrutiny and compliance demands. Lawyers will need to navigate complex regulatory frameworks, market conditions, and investor interests to ensure their clients' interests are protected.

Moreover, the proposed listing highlights broader concerns about public ownership and transparency in Cameroon's telecom sector. As Tonme's letter emphasizes, the accumulation of enormous profits by Orange and MTN without contributing significantly to the country's economy raises questions about the companies' social responsibility and accountability.

Lawyers advising clients with interests in Orange and Mtn should monitor the potential for increased regulatory scrutiny and compliance requirements if the companies are forced to list on the CM stock exchange.

Source: Original reporting via Actu Cameroun