Mobile Money, XAF/XOF convergence and single approval: the governor shares his vision
In an exclusive interview with Financial Afrik, Yvon SANA BANGUI, the Governor of the Central African States Bank (BEAC), reflects on the major projects shaping the monetary and financial future of the CEMAC zone. From the rise of Mobile Money to the reform of the single banking approval, and the discussions on the convergence of the XAF/XOF CFA francs, he shares his strategic vision and outlines a financial system that is more resilient, inclusive, and adapted to contemporary challenges.
Mr. Governor, you recently conducted a working visit to Bank Al-Maghrib, on the sidelines of the Central African Days in Morocco. Could you clarify the nature of these exchanges and the cooperation opportunities considered between the two institutions?
First of all, I would like to thank you for this interview that you have kindly granted me. The Central African States Bank (BEAC) and Bank Al-Maghrib (BAM) maintain very close relations, as evidenced by the existence of a Cooperation Agreement between the two institutions since 2011. Governor ABDELLATIF JOUAHRI has a long and invaluable experience at the helm of BAM, a position he has held for over 20 years. It was a pleasure for me to meet him for the first time since taking office and to discuss with him the common challenges faced by our central banks, particularly in terms of monetary and exchange rate policy, cross-border banking supervision, and macroprudential surveillance.
In recent years, BAM has intensified initiatives to promote green finance in the Kingdom and strengthen its environmental commitment, for a better consideration of climate change in its missions and the reduction of its environmental footprint. BAM has also undertaken the development of a regulatory framework for crypto-assets and the design of a national digital currency to contribute to increasing financial inclusion.
As the Bank’s Strategic Plan (PSB) 2026-2030 enters its operational phase, BAM’s experience could enlighten the ongoing reflections at BEAC in these areas. Exchange of experiences or capacity-building actions are also being considered in the fields of Islamic finance, electronic payments, and cybersecurity.
Africa is experiencing a surge in electronic payments and Mobile Money. How does BEAC approach this phenomenon? What regulatory and supervisory measures are you implementing to support its development while securing transactions?
The growth of electronic payments and Mobile Money in Africa is an undeniable reality. The widespread use of smartphones and mobile phones, as well as improved access to the Internet, have fostered rapid growth of mobile payments in most African countries. The CEMAC countries are not lagging behind in this digital revolution. In 2023, the number of electronic money payment accounts in the CEMAC exceeded 40 million, up from 37 million in 2022, representing a 7.10% increase. The number of transactions increased by 45.99% to reach 3517 million in 2023, up from 2409 million in 2022. In value terms, electronic money transactions grew by 23.91%, from 23,332 billion CFA francs in 2022 to 28,911 billion CFA francs in 2023.
This growth in electronic payments is partly due to the initiatives of Payment Service Providers (PSPs) to promote electronic payments to commercial, educational, and public administration establishments. Some national administrations have adopted electronic payments as a mode of payment for certain essential obligations (taxes, school fees, passport fees, etc.). Several PSPs allow their clients to receive funds from abroad. These operations enabled the CEMAC to collect over 557 billion CFA francs in 2023.
Moreover, electronic money transactions or instant transfers have been interoperable since 2020. In 2023, the Central African Monetic Interbank Group (GIMAC) processed over 8.9 million electronic money transactions, amounting to over 393.2 billion CFA francs, representing a 21.88% increase in number and 75.4% in value.
Regulatory-wise, the activity of issuing electronic money is regulated by Regulation No. 03/16/CEMAC/UMAC/CM of December 21, 2016 on payment systems, means, and incidents, CEMAC Regulation No. 04/18/CEMAC/UMAC/CM/COBAC of December 21, 2018 on payment services in the CEMAC, Regulation No. 01/20/CEMAC/UMAC/COBAC of July 3, 2020 on the protection of consumers of banking products and services in the CEMAC, and COBAC Regulation R-2020/04 of July 30, 2020 on the guaranteed minimum banking service.
BEAC and the Central African Banking Commission (COBAC), in consultation with the Central African Monetic Interbank Group (GIMAC), have been working on improving access to payment services, strengthening the legal and regulatory framework, as well as the essential technical infrastructures for financial inclusion.
The reforms currently underway aim to enhance consumer protection of payment services and strengthen resilience in terms of operation security and cybersecurity of payment platforms in the CEMAC. They should result in better organization of the payment environment in the CEMAC.
As always, in such circumstances, these regulatory adjustments will be subject to broad consultation with various stakeholders to ensure their adherence and to address any additional points that may have been overlooked in the proposed texts or require further clarification.
Several mining operators in the CEMAC zone complain of difficulties in making international transfers and operations. What is your analysis of this situation? What solutions does BEAC envisage to streamline these essential transactions for economic activity?
I would like to emphasize that transparency and anti-money laundering requirements demand unwavering discipline in monitoring and processing international financial transactions. Contrary to some opinions, the Central Bank does not impose exchange controls or hinder the free movement of capital. The current exchange regulations ensure the freedom of current and capital transactions, especially concerning the repatriation of investment income.
However, effective implementation of the exchange regulations has faced resistance since its entry into force in 2019, particularly from operators in the extractive sector, despite efforts made by BEAC to reduce transfer processing times and establish a specific mechanism for extractive companies.
Nevertheless, discussions continue with companies in the extractive sector, particularly on the issue of domiciling funds for the restoration of oil and mining sites (RES Funds) in BEAC’s books, to facilitate the harmonious implementation of community exchange provisions, stimulate economic activity, and promote deep transformation of our economies.
The resilience of the banking sector largely relies on the strength of capital adequacy. What ongoing reforms in banking supervision aim to enhance capital adequacy and improve financial system stability in the CEMAC zone?
Banking activity is one of the most regulated areas of activity in the world. As such, its regulation is continuously updated, especially to ensure the sector’s resilience, financial stability, and prevent the emergence of risks that could weaken the environment in which various economic actors operate.
Regarding the strength of bank capital adequacy, several related regulations are currently being evaluated by the General Secretariat of COBAC to align them with best practices internationally. These considerations include the convergence of the community banking regulatory framework with Basel 2 and 3 standards, raising the minimum share capital level of credit institutions, establishing a specific supervision framework for payment institutions, strengthening the fight against money laundering and the financing of terrorism and proliferation, and managing sovereign risks.
These reforms, in addition to the newly adopted provisions allowing for the single approval of credit institutions in the CEMAC to further enhance financial inclusion, could also extend to risk-sharing standards to better adapt to the specific context of our economies.
All these new regulations aim to strengthen the financial foundation of our banks in terms of liquidity and solvency, with the ultimate goal of enhancing their capacity to finance the economies of the region while remaining compliant with regulatory requirements.
The issue of convergence between the West African CFA franc (XOF) and the Central African CFA franc (XAF) is a recurring topic in African monetary debates. In your opinion, what are the ways and conditions that could promote such convergence in the medium or long term?
The issues of interchangeability and free circulation of the BEAC Central African CFA francs (XAF) and the BCEAO West African CFA francs (XOF) have sparked various criticisms. It is important to recall that until 1993, the currencies respectively issued by BEAC and BCEAO were freely exchangeable in their fiduciary form in each of the two issuing zones. In return, each central bank was required to buy back the banknotes of its issuance collected by banks residing in the other Zone. In August 1993, BEAC and BCEAO jointly suspended the repurchase of their exported banknotes. This measure aimed to contain capital outflows exacerbated by anticipations of the 1994 devaluation and to curb informal imports from neighboring countries with non-convertible currencies. Then, in September 1993, BEAC unilaterally decided to extend this measure to the UEMOA, and in December 1993, a reciprocal measure was taken by BCEAO.
Some voices are now calling for this restriction to be lifted so that the currencies issued by the two central banks can circulate freely in both issuing zones and be interchangeable. Following reflections on this issue, BEAC does not foresee lifting this measure in the current context marked, on the one hand, by increasing requirements in combating money laundering and the financing of terrorism, and on the other hand, by decisive progress in transfer capabilities across financial systems.
This decision does not affect the convertibility of the CFA franc issued by BEAC and does not hinder commercial exchanges. This currency remains convertible through banking channels, in strict compliance with exchange regulations, while the modernization of payment methods has significantly reduced the need to carry cash, with its evident high risks. Conversely, resuming the repurchase of banknotes would undoubtedly facilitate the accelerated development of illicit capital movements, undermining the efforts made by states to combat them.
Instead of resuming banknote repurchases, BEAC and BCEAO are working to accelerate the interconnection of payment systems and means between the CEMAC and UEMOA. This project, which involves the integration of payment systems in Africa, is among the priorities of the Association of African Central Banks (ABCA). The undeniable advantage of this approach lies in the intensification and better traceability of transactions between the two sub-regions, at lower costs, and in a secure technical and legal environment. In contrast, resuming banknote repurchases, somewhat anachronistic, would entail significant risks and hinder the deepening of the financial systems of the two monetary zones.
Enclosure
A Governor Advocate of Monetary Orthodoxy and Structured Openness
An advocate of monetary orthodoxy and structured openness, Yvon Sana Bangui embodies the new generation of leaders at the Central African States Bank (BEAC). Born on May 25, 1974 in Bégoua, Central African Republic, he initially trained in applied mathematics and telecommunications, before completing his academic journey with master’s degrees in economics and public management (University of Rennes 1) and management (University of Yaoundé II). After an initial career in telecommunications and higher education, he joined BEAC in 2005. His progression has been steady: recognized for his mastery of issues and reform-mindedness, he became a central director in 2017, before being appointed governor in February 2024 for a seven-year term.
At the helm of the institution, Yvon Sana Bangui has set a course: to preserve the stability of the CFA franc, strengthen the credibility of monetary policy, and accompany financial openness without haste. In a context marked by global volatility, inflationary pressures, and recurrent debates on monetary sovereignty, he appears as a pragmatic governor, committed to budget discipline as well as structured innovation. Married and father of four children, he remains a discreet man, but whose mission is central: to maintain BEAC as a pillar of trust in a sub-region seeking stability and investments.
