New hire: Cameroon operations to be overseen by ex-MTN executive, Joël Bertrand Ndjodo, at Wave
Fintech unicorn Wave has made a strategic expansion into Central Africa, marking its entry into the mobile money sector of Cameroon. This move is set to disrupt the current market landscape, dominated by telecom giants MTN and Orange.
Wave's partnership with Commercial Bank Cameroun (CBC) is the driving force behind this entry. CBC holds the necessary e-money license, allowing Wave to offer a full range of services including deposits, withdrawals, transfers, and bill payments. The partnership received authorization from the regional banking commission COBAC in June 2025.
The company brings a disruptive, low-cost model to Cameroon, reminiscent of its operations in Senegal and Côte d’Ivoire. Wave's pricing strategy features a flat 1% fee for transfers and free cash withdrawals, placing competitive pressure on incumbents. In response, Orange Cameroon has already reduced its mobile money withdrawal fees from 1.5% to 1%, indicating a potential price war in the market.
Cameroon's mobile money sector has experienced rapid growth in recent years. Transaction volumes surged by 162% between 2019 and 2023, reaching approximately €37 billion ($43 billion), with over 24 million active accounts. This makes Cameroon the largest mobile money market in the CEMAC region, accounting for about 70% of its activity.
However, Wave faces challenges in the market. Heavy competition from entrenched providers like MTN and Orange, who are keen to defend their market share, is one such challenge. Regulatory constraints requiring Wave to operate through a bank partner rather than issuing e-money directly, and a 0.2% tax on every mobile money transaction, add operational costs in a low-margin industry.
Wave is well-equipped to navigate these challenges, backed by substantial capital investment. A €117 million debt facility led by Rand Merchant Bank and supported by international development financiers is fueling its ambitious expansion plans across eight African countries, including Cameroon.
The company aims to learn from past failures, such as Société Générale's YUP, and leverage local expertise to challenge established players like MTN and Orange. Wave's entry into the Cameroonian market could lead to innovative solutions and improved services for customers.
In summary, Wave Fintech is entering a fast-growing but fiercely competitive Cameroonian mobile money market with a disruptive pricing model, backed by strong financial resources and local partnership, while navigating regulatory and taxation challenges that affect profitability and operations. The company's entry is significant, as it adds competition to the market and could potentially disrupt the status quo.
- Wave Fintech, a fintech unicorn, enters the mobile money sector of Cameroon after securing a strategic partnership with Commercial Bank Cameroun (CBC) and receiving authorization from COBAC.
- The entry of Wave into the Cameroonian market marks a potential disruption to the current landscape, dominated by telecom giants MTN and Orange.
- The company brings a competitive pricing strategy, offering a flat 1% fee for transfers and free cash withdrawals, which could lead to a price war in the market.
- Despite challenges such as heavy competition, regulatory constraints, and operational costs from taxation, Wave's entry could lead to innovative solutions and improved services for customers in the Cameroonian market.
