Afriland First Bank’s Congolese unit is facing a significant financial crisis, with $116.9 million in negative equity, amid a dispute with the Congolese government.
The bank’s financial woes stem from a combination of factors, including a large portfolio of non-performing loans and the loss of key government contracts.
The crisis began in July 2021 when the Congolese government and central bank allegedly removed shareholders and dismantled the bank’s board.
Afriland First Group, controlled by Cameroonian billionaire Paul Fokam, claims it has had no operational control over the bank since then.
The central bank, however, says it introduced enhanced oversight due to an internal governance crisis.
The bank’s financial situation has deteriorated significantly, with:
- Negative net banking income: $4.68 million in 2025, compared to $2.241 billion in positive net banking income for the broader banking sector.
- Non-performing loans: 78% of the loan portfolio, with provisions of $131.9 million.
- Loss of government contracts: Stripped of contracts to manage salary payments for teachers and schools, affecting 29,513 employees and 2,039 schools.
Afriland First Group has filed for arbitration at the International Centre for Settlement of Investment Disputes (ICSID), accusing the Congolese state of expropriation.
The outcome of the dispute is uncertain, but the bank’s financial position suggests a high risk of shareholder wipeout.
