Cameroon’s State Housing Company Eyes $267 Million Capital Boost to Unlock Real Estate Expansion

Cameroon’s state-owned real estate company SIC plans to more than triple its share capital through the transfer of 11 state-owned land parcels valued at CFA151.82 billion ($267 million), a move designed to strengthen its financial position and support future housing developments.

If approved by the relevant authorities, the operation would raise the company’s share capital from CFA75 billion to about CFA226.8 billion. The transaction is based on the contribution of nearly 407 hectares of land spread across six regions: Center, Littoral, Adamawa, North, Far North, and West. A valuation table prepared for the transaction lists the size, land title, unit value, and contribution value of each parcel, for a combined value of CFA151.82 billion.

SIC’s 2025 financial statements clarify the legal nature of the transaction. They show that the land was transferred by the state as a capital contribution. Although ownership has already been transferred, the parcels had not yet been valued or recorded on the company’s balance sheet as of the end of 2025. Their valuation is therefore a prerequisite for recognizing the assets and completing the capital increase.

More Than 90% of the Value Comes From the Center Region

Most of the transaction’s value is concentrated in Cameroon’s Center Region. Four parcels located in Nkolmeyos, Nkolntsam, Zoatoupsi, and Bibey account for about CFA136.85 billion, or just over 90% of the total valuation.

The 123.6-hectare Nkolntsam site in Mbankomo is valued at CFA63.04 billion, while the 163.6-hectare Zoatoupsi property, also in Mbankomo, is worth CFA50.73 billion. The 59.5-hectare Nkolmeyos parcel in Mfou is valued at CFA18.46 billion.

Together, the Nkolntsam and Zoatoupsi sites represent nearly three-quarters of the transaction’s total value. The remaining parcels are located in Dang, Zokok-Laddéo, Douala’s Marché des Fleurs district, Karewa, Kolléré, Tingling, and Yawoum. Their values vary widely depending on location, ranging from CFA11,000 per square meter in Tingling to CFA202,500 per square meter at the Marché des Fleurs site in Douala.

Valuation Differences Exceed CFA11 Billion

The transaction documents reveal several valuation estimates. A revised consolidated table values the initial proposal prepared by Cameroon Audit Conseil at CFA141.2 billion, compared with CFA152.22 billion estimated by SIC’s technical services, a gap of more than CFA11 billion.

The largest difference concerns the Marché des Fleurs property in Douala. Cameroon Audit Conseil valued the site at CFA1.74 billion, while SIC’s revised estimate reached CFA8.59 billion. Significant differences also appear for the Karewa, Kolléré, Tingling, Zokok-Laddéo, and Yawoum sites.

After comparing the initial estimates with official benchmark values and market references, the final contribution schedule set the total valuation at CFA151.82 billion, slightly below SIC’s revised estimate.

The existence of several valuations highlights the importance of the independent contribution auditor’s report, which is expected to justify the methods and final values assigned to each property.

Stronger Balance Sheet, but No Immediate Cash

Unlike a cash recapitalization, the transaction would not provide SIC with new liquidity. Instead, it would strengthen the company’s share capital, asset base, and equity because the land transferred by the state had not yet been recorded on its balance sheet.

As of December 31, 2025, SIC reported share capital of CFA75 billion, shareholders’ equity of CFA149.78 billion, and land assets worth CFA86.45 billion.

Adding the 11 new parcels would significantly expand the company’s asset base and could improve its ability to secure bank loans, concessional financing, public-private partnerships, and other funding for future housing developments.

“The capital increase will give us greater room to maneuver. Vision 2040 calls for the mobilization of about 3,000 hectares for future housing programs,” a source familiar with the matter said.

However, SIC’s ability to raise additional financing will depend on several factors, including the legal status of the land titles, the availability of the land, the absence of disputes or illegal occupation, the quality of the projects attached to the sites, and how banks and investors value the assets.

A Process Underway Since 2023

The land transfers took place over several years.

According to SIC’s financial statements, five presidential decrees issued in 2023 covered the Karewa, Dang, Kolléré, Bibey, and Zoatoupsi sites. Another decree issued in 2024 transferred the Nkolmeyos parcel, while two decisions signed in 2025 covered the Yawoum and Tingling properties.

The planned transaction builds on a recapitalization process launched in 2020, when SIC’s share capital increased from CFA1 billion to CFA75 billion.

That operation relied mainly on the incorporation of a CFA70 billion upward revaluation of the company’s built assets, supplemented by CFA4 billion in retained earnings and the original CFA1 billion share capital.

The new transaction differs because it involves additional land transferred by the state that has not yet been recorded in the company’s accounts.

Profit Improves, but Cash Position Weakens

The planned recapitalization follows stronger financial results in 2025. According to the company’s financial statements, net profit rose 48% to CFA878.5 million from CFA592.7 million a year earlier. Revenue increased from CFA3.53 billion to CFA5.02 billion, supported mainly by rental income and home sales.

Property rentals generated 62.35% of revenue, while home sales accounted for 32.66%. Other real estate services represented the remaining 4.99%.

Despite higher earnings, SIC’s cash position weakened sharply. Net cash fell from CFA7.47 billion at the end of 2024 to CFA2.58 billion a year later. Operating activities used CFA465.7 million in cash, while investment spending reached nearly CFA4 billion.

As a result, the planned capital increase will strengthen the company’s balance sheet but will not directly finance feasibility studies, construction work, utility connections, compensation payments, or housing construction.

SIC must still convert its expanded land portfolio into projects capable of attracting financing. The success of the transaction will depend on formal approval, final validation of the land valuations, and the company’s ability to develop projects that convince banks and investors to provide funding.

Ultimately, the significance of the transaction will depend less on the sharp increase in share capital than on whether SIC can transform these land assets into financed housing projects that are actually built.

Amina Malloum