Cameroonians now pay more for mobile money transactions, including withdrawals and transfers. The increase is part of the 2025 Finance Act, enacted by the Cameroonian government and confirmed in a circular issued by the Minister of Finance, Louis Paul Motazé, on December 31, 2024.

The circular introduces a new specific charge of CFA4 per transaction, which is added to the existing proportional tax rate. This charge applies to mobile money services as well as banks, credit institutions, and microfinance establishments, which were previously exempt from proportional taxes.

In addition, the CFA4 fee is combined with the tax on electronic money transfers (TTA), first introduced in Cameroon on January 1, 2022. Initially set at 0.2% of the transaction amount, the 2025 Finance Act increases this rate to 1% for deposits and withdrawals related to gambling and entertainment, citing the unique nature of financial flows in these sectors.

This higher taxation reflects the government’s increasing reliance on mobile money as a growing source of revenue. Mobile money services have expanded significantly in Cameroon over the years, despite concerns raised by international organizations about the potential negative effects of taxing such services.

In March 2022, shortly after the TTA was introduced, the International Monetary Fund (IMF) warned that taxing mobile money could worsen financial inequality and hinder financial inclusion. The IMF noted that such measures disproportionately impact poor and unbanked populations, particularly in rural areas, who already face high transaction costs from traditional banks.

Source: Business in Cameroon