Cameroon’s State Livestock Company Yet to Write Off CFA92.7 Million in Uncollectible Customer Debts More Than 15 Years Later

Cameroon’s Livestock Development and Production Corporation (Sodepa) continues to carry CFA92.7 million ($160,000) in old trade receivables on its balance sheet, most of them linked to meat sold on credit to customers who have since died or cannot be located. Fully impaired, some of the receivables date back more than 15 years and now require formal approval to be written off.

In the notes to its 2025 financial statements, the state-owned company said that “doubtful receivables amounting to CFA92,699,815 as of December 31, 2025, are very old and have been fully provided for.” The receivables mainly stem from credit sales of meat to customers who “have died or disappeared for more than 15 years,” as well as to former employees, most of whom have retired or passed away. The financial statements recommend that management formally approve the write-off of the unrecoverable balance.

More Than 90% of Customer Receivables Are Doubtful

As of the end of 2025, Sodepa reported gross trade receivables of CFA102.5 million. Doubtful or disputed receivables accounted for about 90.4% of that total, leaving only CFA9.8 million in performing customer receivables.

The entire CFA92.7 million has been fully impaired, reducing the net value of trade receivables to CFA9.8 million. Because the receivables have already been fully provisioned, the company no longer expects to recover them to improve future cash flow or earnings.

As a result, these receivables did not create a new expense in 2025. Their impairment had already been recognized in previous years. They remain on the balance sheet mainly as a legacy of past weaknesses in Sodepa’s credit sales practices and customer account management.

Their continued presence in the accounts nevertheless requires management and the board of directors to formally remove receivables whose debtors are deceased, missing, or can no longer be identified.

Net Loss Widens by 43%

The disclosure comes as Sodepa’s financial performance continued to deteriorate. The company posted a net loss of CFA2.127 billion in 2025, up 42.8% from CFA1.490 billion a year earlier.

Revenue remained broadly stable, edging up from CFA2.181 billion to CFA2.201 billion. However, value added declined from CFA1.085 billion to CFA739.8 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) worsened from negative CFA913 million to negative CFA1.387 billion.

Operating loss widened to CFA1.740 billion from CFA1.285 billion in 2024. Personnel expenses reached CFA2.126 billion, almost matching the company’s annual revenue. The final result was also weighed down by non-operating items. The negative balance from those activities increased from CFA152 million to CFA344.6 million as non-operating expenses rose from CFA365 million to nearly CFA463 million.

Cattle Trading Business Lost CFA434.9 Million

Beyond the old receivables, the statutory auditor highlighted losses generated by Sodepa’s cattle trading business.In 2025, the segment generated revenue of CFA427.8 million, while the purchase cost of the livestock sold reached CFA862.7 million, resulting in a negative gross margin of CFA434.9 million.

The audit report identified several weaknesses, including poorly controlled procurement procedures, carcass weights recorded manually without consistent documentation, and inadequate segregation of duties between commercial and finance teams responsible for collecting payments.

The findings indicate that the business is structurally loss-making. For every CFA100 of cattle sales, Sodepa incurred more than CFA200 in livestock purchase costs before accounting for any other operating expenses.

Public Funding Supports Cash Position

Despite continued operating losses, Sodepa ended 2025 with net cash of CFA2.044 billion, compared with CFA100.6 million a year earlier. The improvement did not come from its core business.

Operating activities consumed CFA654.2 million in cash during the year. The increase in liquidity was driven primarily by CFA1.973 billion in investment grants and CFA743.2 million in new borrowings.

Borrowings and financial liabilities increased from CFA5.007 billion to CFA5.750 billion, while investment grants rose from CFA11.028 billion to CFA12.956 billion. The funding is linked to government programs aimed at modernizing the company’s infrastructure and production capacity. However, the 2025 financial statements show that those investments have yet to translate into a recovery in operating profitability.

The CFA92.7 million in unrecoverable receivables therefore represents less a driver of Sodepa’s current losses than a legacy of longstanding weaknesses in its commercial management. The company’s more pressing financial challenge now lies in restoring margins, strengthening payment collection, and improving oversight of its cattle trading business, which alone destroyed nearly CFA435 million in value in 2025.

Amina Malloum