African Energy Chamber pushes BEAC to postpone Forex regulations

NJ Ayuk, executive chairman of the African Energy Chamber

South Africa - The African Energy Chamber, which represents nearly every segment of the energy sector in Africa, is pleased to announce the extension on the implementation of the BEAC (Banque des États de l'Afrique Centrale)  Forex Regulation from January 1st to December 1st, 2021. This is based on the decision on November 5th, 2020 made by H.E. Abbas Mahamat Tolli, Governor of BEAC, to delay the implementation.

“While we thank BEAC for listening to the African Energy Chamber, businesses, workers, and foreign investors, we still believe that these regulations need to be stricken down. Though extended, the regulations as they stand, without amendments, are the most dangerous and anti -African regulations in the world and cannot be left hanging on people’s heads without being corrected,” said NJ Ayuk, Executive Chairman of the African Energy Chamber.

According to the African Energy Chamber, the BEAC regulations stifle the core principles of the Economic Monetary Community of Central Africa (CEMAC) states, which are the promotion and strengthening of cooperation in order to achieve collective self-reliance, raise the standard of living for its peoples, increase economic stability and contribute to the progress and development of the sub-region and the African continent as a whole.

“These regulations violate the very ethos of government bodies, which is to serve the interests of its people and to ensure that any regulations passed do not obstruct economic growth and self-reliance of the people in the CEMAC region,” further laments the African Energy Chamber.

The African Energy Chamber believes that they must continue to fight for the ability of small businesses, everyday people, investors, especially oil and gas companies to hire, invest, grow, succeed and create jobs in Africa as this is required for the post-COVID-19 recovery.

“Certain provisions in the BEAC Forex Regulations appear to be anti-fair trade and against the objective of the AfCFTA (African Continental Free Trade Area), an agreement which has been ratified by all CEMAC member states. One of the key objectives of the agreement is to create a single market for goods, services, facilitated by movement of persons in order to deepen the economic integration of the African continent,” The African Energy Chamber states. “Therefore, these regulations are counterproductive as they have diminished the attractiveness of the CEMAC for foreign direct investments and cross border trade.”

“It is because of this that the African Energy Chamber asserts that it will continue with its intention to litigate against regulations that put extremely deterrent barriers for entry of investors in Gabon, Cameroon, the Republic of Congo, Equatorial Guinea, the Central African Republic and Chad. The regulation in itself is in clear contradiction with the spirit of the AfCFTA. It is illegal. It should be repealed and replaced with a more pro-growth and pro-jobs regulation which the chamber is willing to provide to BEAC,” Ayuk concluded.

The African Energy Chamber believes that this regulation will contribute to the growing challenge of energy poverty, corruption, and the increasing role of bureaucrats in business.