The resolution mechanism triggered by the Central Bank of Congo has failed to rescue the institution, whose gross loan portfolio of $175 million now has only $37.8 million in healthy outstanding loans, forcing the provisional management to set aside $131.9 million in provisions for non-performing loans. The loss of strategic markets, including the management of 29,513 teachers' salaries worth 12 billion Congolese francs per month, has deprived the structure of crucial liquidity. The eviction of founder Paul Kammogne Fokam and parent company Afriland First Group, which initially held 95.6% of the shares, has led to a legal battle before the International Centre for Settlement of Investment Disputes, while the regulatory requirement for a minimum capital of $50 million since January 2025 makes the cost of rescue prohibitive for the monetary authorities.

The accumulation of toxic debts and the collapse of operating revenues are blocking the coverage of structural costs. The seizure of the ICSID by the former major shareholders is paralyzing the search for a solvent private buyer. The obligation to fully provision for unpaid losses is destroying the necessary capital base for compliance with prudential norms.

The erosion of customer deposits is weakening the immediate treasury of the institution in resolution. The outcome of international arbitration proceedings will determine the financial burden borne by the Congolese public treasury. The transfer of institutional portfolios to competing banks is redistributing market shares within the Kinshasa financial hub.


Ndjomo Carlos

Tags: banque congo crise financiere afriland first bank faillite congo banque centrale crédits provisions liquidité réglementation