Cameroonians face another tax burden as the government implements a new mobile money fee starting January 1, 2025.
This additional charge of 4 Francs per transaction is on top of an existing 0.2 percent tax introduced in 2022. Finance Minister Louis Paul Motazé’s announcement has sparked outrage among users of major mobile networks like MTN and Orange.
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Increased financial strain
The new tax is part of the 2025 Finance Law, which aims to expand the government’s revenue sources amidst a struggling economy. Many users expressed their frustration, with one stating, “The increase in charges is unbearable… it feels like they are scamming us”.
Critics argue that these taxes disproportionately affect low-income individuals, particularly in rural areas with limited access to traditional banking. The International Monetary Fund (IMF) has warned that such measures could hinder financial inclusion, exacerbating existing inequalities.
A broken promise?
A few weeks before the tax started, Minister Motazé told the public there wouldn’t be any new taxes in 2025.
This contradiction has fuelled suspicion and anger among citizens. “Did Motazé lie? He said no new taxes would be introduced… Wonders shall never end,” lamented one concerned citizen.
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Economists predict this could be just the beginning of further tax increases as the government grapples with a budget shortfall and ambitious revenue targets.
Mobile money has become a critical financial tool in Cameroon, with nearly 12 million users relying on it for transactions. However, as costs rise, many fear they may revert to informal channels, undermining years of progress in expanding financial access.
The government’s strategy appears to prioritise immediate revenue generation over long-term economic stability, raising questions about the sustainability of its approach.
As Cameroonians adjust to this new reality, the impact of these taxes will likely resonate throughout the economy, affecting not only individual users but also the broader mobile money ecosystem.