Foreign currency repatriation: the BEAC–oil companies showdown gets serious

The heart of the problem

CEMAC mainly exports oil and minerals. But much of the foreign currency generated by these exports stays outside the zone for long periods, in accounts abroad. For the BEAC, that means fewer foreign exchange reserves to guarantee the stability of the CFA franc.

CEMAC's foreign exchange regulations, in force since 2019, in principle require export earnings to be repatriated. The extractive sector has long benefited from exemptions, on account of its particular constraints: heavy investment, international financing and contracts signed with governments.

From 35% to 70%

Until now, extractive companies had to repatriate 35% of their export earnings into the zone. The BEAC has decided to raise this rate gradually to 50%, then to 70%. The phased increase gives operators time to adapt, and its effects on reserves are expected from 2027.

Site restoration funds

A second issue pits the central bank against the companies: site rehabilitation funds, known as RES funds. Oil and mining companies must set aside a reserve each year to restore sites after production ends. These sums, often held abroad, are considerable.

Gabon led the way in 2026: after direct involvement by the presidency, the repatriation of about 150.6 billion FCFA (nearly 270 million dollars) of RES funds was confirmed in April. A country-by-country negotiated approach now seems to be favoured.

What are the risks?

Companies warn that investment could fall if the rules become too restrictive. Governments need the foreign currency to stabilise their accounts. The challenge for the authorities is to strike a balance: strengthening reserves without discouraging investors, especially in producing countries such as Chad.

Key figures

• Repatriation rate for extractive earnings: from 35% to 50%, then 70%
• RES funds repatriated by Gabon: about 150.6 billion FCFA
• Expected effect on reserves: from 2027