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FINANCE
BEAC, African Energy

Chamber discuss impact
of forex regulations for

energy industry

The African Energy Chamber (AEC) on Mon-
day, May 17, held a meeting with the Central
Bank of Central African States (BEAC) to dis- now also only possible with express authorisa- Official event sponsors include Nilepet and its
cuss the effects of the regulations BEAC adopted tion from the BEAC. Local businesses operating joint ventures as Host Sponsors; Dar Petroleum
in December 2018 that are due to come into in the oil and gas sector, for example, which is Operating Company, Greater Pioneer Operat-
effect on January 1, 2022. dollar-dominated, will be unnecessarily exposed ing Company, and Sudd Petroleum Operating
The meeting was in response to concerns by to currency fluctuations, eating up margins and Company, Petronas and CNPC as Lead Spon-
energy companies operating in the CEMAC leading to poor competitiveness vis-à-vis foreign sors; Atlas-Oranto and Centurion Law Group as
region, that the new forex regulations will stifle competitors. Gold Sponsors; and Trinity Energy, Nile Petro-
investment, lead to a loss of jobs, increase oper- Finally, the regulation requests that pro- leum Service Co., IPTEC and Stanbic Bank. ECP
ational cost, lead to additional and unnecessary ceeds from exports of CFA5mn and above be extends its thanks to all sponsors and exhibitors
bureaucracy and eventually render the regions repatriated within 150 days from the exporta- for making this highly anticipated and valuable
energy industry uncompetitive compared to tion date. Whilst the African Energy Chamber event possible.
other regions globally. These concerns are even understands the desire to repatriate such export “With immense resource potential, and
more pertinent today, given the added pres- proceeds, we expect many businesses to seek to against a backdrop of reformed political stabil-
sures and competition that the industry in the avoid putting the proceeds of their exports under ity, South Sudan is well on its way to become an
CEMEC region is facing in light of the global the very restrictive foreign exchange regime established regional energy producer. Our event
move towards energy transition. coming into place on January 1, 2022. partners pave the way for a successful conference
The Chamber delegation, which was led by The Central bank representatives elaborated in which critical investment and energy deals
Leoncio Amada Nze, CEMAC Region Presi- the reasons for the regulations. At the centre of can be made to elevate South Sudan to economic
dent for the African Energy Chamber, thanked it was the desire to shore up the region’s hard prosperity,” states Kelly-Ann Mealia, Chairper-
BEAC’s Management, under the leadership of currency reserves. The Chamber understands son, ECP.
its Governor, Abbas Mahamat Tolli, for their this desire and acknowledges its importance. It Under the theme #BuildtheNation, SSOP
consistent efforts since the adoption of the will therefore continue to work together with 2021 looks forward to welcoming ministers from
regulations to address any concerns and facil- the central bank in industry to find constructive Egypt, South Africa, Sudan, Djibouti, Kenya
itate its implementation. “BEAC has consist- ways to address the legitimate concerns of the and Ethiopia, as well as other key international
ently engaged with the oil and gas industry to industry. stakeholders.
address any concerns that we have. We believe it African Energy Chamber, May 18 2021 SSOP 2021, being the first event in ECP’s
is important to be pragmatic and find common 2021 calendar, will take place in partnership
sense solutions to a concern of the industry,” with the South Sudan authorities and Juba-based
stated Amada Nze. “This region needs attract EVENTS MedBlue Laboratories under strict COVID-19
investors and keep investors. Our job at the protocols to ensure the safety of all attendees.
Energy Chamber is to work with BEAC towards Energy Capital & Power All in-person attendees will be required to show
market friendly pro-growth policies and an ena- a negative COVID-19 test with sample taken
bling environment for local and foreign inves- confirms high-level within 72 hours of the event opening. Interna-
tors” Amada Nze concluded. tional delegates will be permitted to use the tests
Key tenets and concerns about the new sponsors for South Sudan they used to enter the country, provided they
forex regulation include: Any transaction over entered Juba airport no earlier than 28 June.
CFA1mn (approximately $ 1,700) per month Oil & Power 2021 Rapid test facilities will be available on-site for
and per entity or person now attracts signif- all delegates.
icantly more bureaucracy and consequently Energy Capital & Power (ECP, formerly Africa “With sponsorship confirmations by top
delays of multiple weeks. Oil & Power) is excited to announce the official energy companies and stakeholders, SSOP 2021
Companies and individuals must now also confirmation of several high-profile sponsors is able to unite industry leaders and international
receive an authorisation from the BEAC before for the fourth edition of its national energy con- stakeholders in one, essential gathering. With
opening an account outside of the region. There ference, South Sudan Oil & Power (SSOP) 2021. significant infrastructure opportunities availa-
are many viable reasons for companies to own Returning to Juba on June 29-30, 2021, and in ble in the energy, power, and transport sectors,
foreign accounts, including for ease of business, partnership with the Ministry of Petroleum, the South Sudan is seeking regional and interna-
ease of payments, tax efficiency and reduction of Ministry of Energy and Dams, and the Ministry tional investment and collaboration. SSOP 2021
transaction costs. of Trade and Industry, SSOP 2021 will be held in connects investors with opportunities, enabling
Similar to demanding an authorisation a hybrid format, with international speakers and the country to realise its developmental goals,”
before foreign accounts can be opened, foreign delegates participating online alongside the local says James Chester, Senior Director, ECP.
currency accounts domiciled in the region are in-person event. Energy Capital & Power, May 12 2021

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