The Governor of the Bank of Central African States (BEAC) recently issued a distress call regarding the massive fuel imports within the Economic and Monetary Community of Central Africa (CEMAC). This situation concerns regional authorities and highlights a growing and worrying dependence on imported petroleum products.

According to data from the French Treasury and BEAC, fuel imports in the CEMAC region have shown significant variations over the past decade. In 2021, regional oil production reached 39.2 million tonnes, or approximately 770,000 barrels per day. However, these figures represent an 11% decrease compared to 2020 and a 15% decrease compared to 2019. Revenue from the oil sector has also declined, with a 5% decrease in the sector’s contribution to the regional GDP.

Although CEMAC has substantial oil resources and crude oil refineries in Cameroon and Chad, incidents and facility closures have exacerbated the heavy reliance on imports. Before the fire on May 31, 2019, which ravaged the National Refining Company (Sonara) in Cameroon, this refinery played a major role in Africa, producing about 10 million liters of crude oil per day, equivalent to 63,025 barrels per day. Since the incident, all production units have been shut down, resulting in a total lack of data on crude processing. Similarly, the Chad refinery, before its closure in 2020, produced about 20,000 barrels per day, or approximately one million tonnes per year. These events have intensified the dependency on imports.

In addition to the aforementioned causes, the impact of the COVID-19 pandemic and global geopolitical tensions, particularly the conflict between Russia and Ukraine, have also contributed. Fuel imports continue to rise, highlighting the region’s energy fragility. Confronted with this alarming situation, BEAC has made a pressing call to raise awareness among sector stakeholders in the sub-region.

The CAPS Project as a Solution

In response to this critical situation, it is imperative that CEMAC countries collaborate to establish strategic refineries in the region. The Central Africa Business Energy Forum (CABEF) advocates for an ambitious project called CAPS (Central Africa Pipeline System), aimed at constructing a common sub-regional pipeline. This project seeks to address energy poverty while fostering strong south-south cooperation in the energy sector in Central Africa.

The CAPS initiative could reduce dependence on imports, enhance energy security, and combat capital flight related to excessive petroleum product imports.

The CAPS project will transport petroleum products and gas across 11 African countries, with energy transformation and distribution infrastructure along its route. This will create jobs and promote industrial development in the sub-region. CABEF is calling for widespread support from CEMAC and ECCAS countries to implement the CAPS project.

In summary, the urgent call from the BEAC Governor highlights the challenges faced by the CEMAC region regarding fuel supply. Increasingly subjected to massive fuel imports, the continent would benefit from implementing strategies to address this troubling situation.

Sources: French Treasury; BEAC; BBC News; CNPC.

The team of CABEF