YAOUNDÉ, Cameroon (CU)_A meeting was held on Monday (17 May), between the Central Bank of Central African States (BEAC) and the African Energy Chamber (AEC) in order to discuss implications of the BEAC’s new FOREX regulations, which are due to come into effect in January next year.
Previously, energy companies operating the Economic and Monetary Community of Central Africa voiced their concerns over the new regulations, which they claim would stifle investment, increase operational cost, and lead to job losses and unnecessary bureaucracy, rendering the region’s energy industry uncompetitive. Moreover, given the global efforts on transition to green energy, the industry is facing added pressure in the present day.
Some of the key concerns raised by energy companies include the significant expansion of bureaucracy on any transaction that exceeds FCFA 1 million (approximately USD 1,700) per month and per entity or person, which is expected to result in delays for multiple weeks. Moreover, opening an account outside of the region requires express authorisation from the BEAC, which means that local businesses involved in the dollar-dominated energy industry will be unnecessarily subjected to currency fluctuations, which would lead to poor competitiveness.
Participating in the meeting on Monday, officials from the BEAC shared the reasons behind the new regulations, and at the centre of it is the desire to support the region’s hard currency reserves.
Meanwhile, the Chamber acknowledged the importance of the Central Bank’s efforts and therefore agreed to continue to work together in order to discover constructive ways to address the well founded concerns of the industry.
CEMAC Region President for the African Energy Chamber, Leoncio Amada Nze, who also joined the meeting, expressed his gratitude towards the BEAC’s Management for their consistent efforts to address any concerns over regulations that are being adopted.
“BEAC has consistently engaged with the oil and gas industry to address any concerns that we have. We believe it is important to be pragmatic and find common sense solutions to a concern of the industry,” he said. “This region needs attract investors and keep investors, our job at the Energy Chamber is to work with BEAC towards market friendly pro-growth policies and an enabling environment for local and foreign investors.”
