Société de distribution nouvelle d’Afrique (Sodinaf), controlled and majority-owned by Cameroonian businessman Fabrice Siaka, is facing an ownership claim over industrial equipment acquired from Chinese supplier CNBM General Technology Co. Ltd, with a retention-of-title clause securing an obligation valued at $6.47 million.

The equipment, intended for Sodinaf’s palm oil processing and refining operations, remains subject to the clause until the obligation covered by the agreement is fully paid, according to a recently released certificate from the registry of the Douala-Bonanjo Court of First Instance.

Equipment contract predates Sodinaf’s refinery project

The clause was registered with the Trade and Personal Property Credit Register (RCCM) by the registry of the Douala-Bonanjo Court of First Instance on September 24, 2024, while the certificate places the value of the obligation covered by the security arrangement at CFA3.81 billion ($6.47 million) at the reference exchange rate on the registration date.

Sodinaf acquired the equipment under a sales contract signed in Zhengzhou, China, on September 20, 2017, nearly two years before the public announcement of its palm oil refinery project and seven years before the retention-of-title clause was registered.

The equipment was intended for palm oil processing and refining, forming part of Sodinaf’s plans to diversify its industrial operations.

Under OHADA law, a retention-of-title clause allows a seller to retain legal ownership of delivered goods until the buyer settles the obligation specified in the contract. Once registered with the RCCM, the seller’s ownership rights can be enforced against other creditors and potential buyers. If payment is not made when due, the seller may seek the return of the goods, with their value deducted from the outstanding claim and any excess returned to the buyer.

Registered amount represents 27% of announced investment

In 2019, Fabrice Siaka’s group announced a CFA14 billion investment to establish a facility in Douala through Nouvelle Raffinerie du Cameroun for crude palm oil refining and household soap production. The project was expected to create 158 direct jobs.

The CFA3.81 billion ($6.47 million) obligation covered by the retention-of-title arrangement is equivalent to approximately 27% of the announced investment. The certificate, however, does not establish that Sodinaf owed the full $6.47 million when the clause was registered. It does not disclose payments already made, the outstanding balance or why the 2017 agreement was registered only in 2024.

In August 2019, the project received approval from Cameroon’s Investment Promotion Agency, making it eligible for incentives under the country’s private investment legislation.

The refinery formed part of Sodinaf’s diversification following its July 2018 acquisition of Rougier’s forestry and industrial subsidiaries in Cameroon and the Central African Republic.

Refinery operations remain unclear

By 2023, Nouvelle Raffinerie du Cameroun was still identified by industry sources as one of four prospective entrants into Cameroon’s palm oil refining market, alongside Société de raffinage du Cameroun.

The RCCM certificate also contains no reference to seizure proceedings, a demand for equipment recovery or insolvency proceedings against Sodinaf. The $6.47 million therefore represents the obligation secured by the retention-of-title arrangement, not necessarily a debt that remains outstanding today.