Investors in YUP, Société Générale’s mobile money venture in Africa, have faced considerable financial losses following the company’s liquidation. Confidential reports from Africa Intelligence indicate that shareholders of YUP — a subsidiary established by Société Générale for mobile payments — lost approximately $8 million (around 4.8 billion CFA francs) when the company ceased operations in 2022. Key shareholders included Société Générale Cameroon, holding over 80% of the entity, alongside the Cameroonian government and Allianz Cameroon. However, details of the stakes held by the government and Allianz were not disclosed.
Originally launched in 2017 across seven African countries, including Côte d’Ivoire, Senegal, Burkina Faso, Guinea, Ghana, Madagascar, and Cameroon, YUP was Société Générale’s attempt to penetrate Africa’s fast-growing mobile payments market. Yet, the initiative proved unable to establish a sustainable foothold in the face of formidable competition from established telecom operators like MTN and Orange. In Cameroon, both telecom giants already dominated the mobile money market when YUP entered, and by 2021, Orange Cameroon claimed a market share of 70%, supported by 10 million accounts and a network of over 100,000 commercial partners. MTN, too, reported a growing user base and positioned itself as a leading mobile financial services provider in the region.
YUP’s Market Struggles and Inactive Accounts
Despite significant efforts, YUP was unable to gain meaningful traction. At its peak, YUP had attracted 689,071 registered customers, a relatively small share compared to the more than 21 million mobile money accounts recorded in Cameroon by 2022. According to the Bank of Central African States (BEAC) report on payment services in the CEMAC region, only 22,332 of YUP Cameroon’s accounts were active, meaning 96% of its accounts remained dormant. This low engagement pointed to an underlying challenge for YUP in capturing a market already accustomed to the established services offered by MTN and Orange.
In a message to employees on March 1, 2022, Société Générale Cameroon CEO Nicolas Pichou acknowledged these difficulties, announcing the decision to end YUP’s operations. “Despite all the efforts made by the YUP teams in the seven geographies concerned, including Cameroon, to develop our market share and improve the experience, the service has not managed to create a viable model, and the market outlook does not allow us to consider its maintenance,” stated Pichou.
Following Pichou’s announcement, YUP initiated a three-month period to reimburse customer deposits beginning March 15, 2022. YUP was formally placed into liquidation during a shareholder meeting on December 29, 2023, in Douala, with Manfred Penda, a financial expert associated with the Courts of Appeal of the Littoral and Adamaoua, appointed as liquidator. Under OHADA (Organisation for the Harmonisation of Business Law in Africa) insolvency regulations, creditors had a limited period to submit their claims, including proof of debt and related documentation, as the process moves forward.
The OHADA framework requires all foreign currency debts to be converted into local currency at the exchange rate effective on the date of liquidation, a stipulation that could further affect recovery amounts for foreign investors.
Lessons from a Competitive Market
YUP ’s liquidation shows the high risks facing new entrants in Africa’s digital finance sector, particularly in competitive markets like Cameroon where early entrants already command customer loyalty and extensive infrastructure. The established presence of MTN and Orange, which had both been operating in the region’s mobile money space nearly a decade before YUP’s arrival, created a challenging landscape that YUP struggled to navigate. Orange ’s leadership position in the region, coupled with MTN’s growing base, left YUP’s service in a largely residual role.
The experience also indicates the operational risks for foreign-backed ventures within Africa’s rapidly changing fintech ecosystem. With Société Générale’s withdrawal from mobile money in Cameroon, future ventures may weigh the challenges of local market penetration, regulatory frameworks, and capital allocation in planning their entry strategies.
As Société Générale and other stakeholders absorb the financial impact, the YUP case serves as a cautionary example of the difficulties international investors may encounter when attempting to establish new financial services in saturated or highly regulated markets. While Africa remains an attractive destination for fintech innovation, YUP’s exit underscores the necessity of robust market research, adaptability to local conditions, and strategic partnerships with local entities for any sustainable expansion.