Central African States Research Articles

Bureaucratic valves: paperwork as a contested tool in the international transfer of the franc CFA in Congo-Brazzaville

AbstractAfricanists have written much about interactions between multiple currencies in Africa, yet paperwork-based regulations that apply to these interactions remain less studied. Meanwhile, ethnographic studies of paperwork examine the roles of documents more in state administration than in commercial transactions. Based on ethnographic research with individuals and institutions involved in the international transfer of the franc CFA in Congo-Brazzaville during a severe foreign exchange (forex) shortage from 2016 to 2021, this article argues that the participants in forex transactions manoeuvre paperwork to regulate the speed of the forex outflow – where paperwork functions as what I term ‘bureaucratic valves’. Responding to the outflow of forex caused by the oil price slump since 2015, the Bank of Central African States (BEAC) required numerous documents from buyers of forex to justify their demand. This policy slowed down international money transfers because it took more effort to meet the paperwork requirements. Yet banks, money-transfer agencies and individuals in Congo subsequently developed their own paperwork-based mechanisms to cope with this change. These manoeuvres show that paperwork is a flexible and essential tool for adjusting transactions for different participants, especially in the money markets and in (central) banking in Africa.

Microbiology laboratories involved in disease and antimicrobial resistance surveillance: Strengths and challenges of the central African states.

Laboratory systems have been largely neglected on the margins of health systems in Africa. However, since the 2000s, many African countries have benefited from massive investments to strengthen laboratory capacities through projects fighting priority diseases (HIV/AIDS, tuberculosis, malaria). This review examined the laboratory capacities of the Economic Community of Central African States (ECCAS). Online research using specific terms was carried out. Studies published between 2000 and 2021 on the role of the laboratory in disease and antimicrobial resistance surveillance in the 11 ECCAS countries were considered. The number of human and animal health laboratories meeting international standards was very low in the sub-region. There were only seven International Organization for Standardization (ISO) 15189-accredited human health laboratories, with five in Cameroon and two in Rwanda. There were five high biosafety level (BSL) laboratories (one BSL3 laboratory each in Cameroon, the Central African Republic, Democratic Republic of Congo and the Republic of Congo, and one BSL4 laboratory in Gabon) and three ISO 17025-accredited laboratories in the ECCAS sub-region. Only six countries currently have whole-genome sequencing devices, which is insufficient for a sub-region as large and populous as ECCAS. Yet, a plethora of pathogens, particularly haemorrhagic viruses, are endemic in these countries. The need for laboratory capacity strengthening following a One Health approach is imperative. Since emerging and re-emerging zoonotic infectious diseases are projected to triple in frequency over the next 50 years and given the inextricable link between human and animal health, actors in the two health sectors must collaborate to preserve world health.

Taking Stock of African Union’s Sanctions against Unconstitutional Change of Government

This article examines the African Union (AU) sanctions against unconstitutional change of government. It reviews the legal background to this phenomenon and finds that unconstitutional changes of government remain recurrent and widespread across the continent. However, the AU has at its disposal a variety of sanctions, ranging from politico-diplomatic sanctions to targeted as well economic sanctions. Furthermore, perpetrators of unconstitutional change of government can be prosecuted at the domestic, regional and continental levels. But sanctions do not suffice to restore democratic order despite their punitive character. In fact, the AU also keeps diplomatic contacts and provides support to the establishment of transition governments, power sharing deals, and the organization of new elections. This fosters the rise of constitutionalism in times of crises which precedes the establishment of new democratic political orders. If this can be considered as a success in itself, the paper contends that in most of the cases, the AU and even Regional Economic Communities (RECS)/Regional Mechanisms (RMs) fail to restore to power overthrown governments. Rather, de facto authorities succeed to retain their positions after legitimizing their governments through presumed democratic elections. In addition, member states and some RECs, such as the Economic Community of Central African States (ECCAS) in the situation in CAR in 2003, undermine the AU policy of sanctions. Be it as it may, the study concludes that the AU legal framework still has some loopholes in that a number of situations are not covered by it, such as infringing the principles of democratic government through fraudulent or delayed elections, and popular uprising. Therefore, it suggests that the better way to deal with unconstitutional changes of government is prevention. This requires a universal African adherence to common values and principles of democratic governance, including the ratification of relevant AU treaties and their implementation at the domestic level.

Monetary Policy and Macroprudential Policy in Fixed Exchange: The Case of the Bank of Central African States

This article examines the nature of the policy-mix between monetary policy and macroprudential policy in the member countries of the Bank of Central African States (BCAS). For this, we test a monetary rule “augmented” by the financial stability objective using a regime-switching panel model over the period 2006-2018. The results show that the nature of the policy-mix between monetary policy and macroprudential policy depends on the economic situation, assessed by the evolution of BCAS’s net foreign assets.

Explaining the Absence of a Regional Hegemon in the Central African Sub-region

The end of the Cold War saw a shift in power dynamics globally, changing the security dynamics of many regions globally including those in Africa. With the security void left by these great powers in Africa, regional hegemons have played significant roles in promoting regional peace and stability. Regional hegemons have greatly helped to sustain peace and stability in the Economic Community of West African States (ECOWAS) and Southern African Development Community (SADC), but this has not been the case in the Economic Community of Central African States (ECCAS). This paper seeks reasons why no hegemon (dominant state) exists in the ECCAS region. The study analyses the material resource capacities of regional members and argues that a multiplicity of regional groupings, internal political instability, economic challenges and the neo-colonial hand of France accounts for the absence of a hegemon in the region.

The breach of banker's duty of confidentiality within the Economic and Monetary Community of Central African States (CEMAC Zone): The case of Cameroon

Banks are at the heart of every nation and the need to regulate this sector with a lot of care, since they are pivotal in catalyzing economic growth and development. Proper regulation of banking institutions would guarantee maximum and effective protection of its customers and the enhancement of economic growth and development. Adopting the doctrinal and analytical research methods, this paper sets out to determine the legal mechanisms established to ensure the protection of confidentiality, the information which falls within the ambit of secrecy, the ambiguity surrounding the disclosure of customers’ private information, the penalties imputed on violators of the laws and the qualifications of the duty of confidentiality. This paper reveals that clients still face divulgement of their secret information, though legislation guarantee the protection of their right to privacy. Thus, it is imperative for bankers to scrupulously respect their obligation of secrecy so as to instill clients with confidence in order to guarantee a sound banking environment in the CEMAC zone and Cameroon specifically. Furthermore, the optimization of banking secrecy would adequately protect customers since the underlying element governing banker-customer relationship would be cemented. In addition, there is high need for sensitization of bankers through seminars, workshops and conferences in order to guarantee a proper respect of banking deontologies when exercising their profession.

The breach of banker’s duty of confidentiality within the Economic and Monetary Community of Central African States (CEMAC Zone): The case of Cameroon

Banks are at the heart of every nation and the need to regulate this sector with a lot of care, since they are pivotal in catalyzing economic growth and development. Proper regulation of banking institutions would guarantee maximum and effective protection of its customers and the enhancement of economic growth and development. Adopting the doctrinal and analytical research methods, this paper sets out to determine the legal mechanisms established to ensure the protection of confidentiality, the information which falls within the ambit of secrecy, the ambiguity surrounding the disclosure of customers’ private information, the penalties imputed on violators of the laws and the qualifications of the duty of confidentiality. This paper reveals that clients still face divulgement of their secret information, though legislation guarantee the protection of their right to privacy. Thus, it is imperative for bankers to scrupulously respect their obligation of secrecy so as to instill clients with confidence in order to guarantee a sound banking environment in the CEMAC zone and Cameroon specifically. Furthermore, the optimization of banking secrecy would adequately protect customers since the underlying element governing banker-customer relationship would be cemented. In addition, there is high need for sensitization of bankers through seminars, workshops and conferences in order to guarantee a proper respect of banking deontologies when exercising their profession.

TOTIC: PORTUGUESE PRE- COLONIAL AND COLONIAL DIPLOMATIC AGENTS OF TERRITORIAL EXPLORATION AND EXPLOITATION OF SAO - TOME AND PRINCIPE ISLANDS OF THE GULF OF GUINEA IN THE ATLANTIC OCEAN 1485-1975

The present article brings out typologies of pre-colonial and colonial great figures that strongly coordinated, moderated and put in radical human forces of European exploration, exploitation and colonisation activities in the overseas colonies in Sub-Saharan Africa with examples drawn from the following important lucrative region known as the Gulf of Guinea within the Economic Community of Central African States (ECCAS). The two countries used as our case studies include Sao-Tome and Principe from 1485 to 1975 (490 years) with 210 official agents remarkably during the pre-colonial and colonial periods. Considering the fact that most history books at times mentioned only few colonial administrators of the Continent, we therefore deemed it necessary to carry out this research on the various portfolios of specific foreign actors in full beginning from pre-colonial to end of colonial exploitations. The pre-colonial era brings out some of the foreign agents who in one way or the other prepared the ground work for deeper colonial partition, expropriation, expansion, exploitation and exaggerations of colonial activities as the best means to compensate themselves from the natural providence of the Black Continent in terms of natural and human resources well accessible in to the Atlantic Ocean. The work is divided into two parts using a chronological approach as indicated on the various tables and it brings out the total number of all prominent pre-colonial and colonial agents of the two countries. The scrutiny of specialized documents based on the pre-colonial and colonial Africa actually inspired us in the writing of this paper which can open new avenues to future researchers to find out in detail which of the Portuguese agent did what and when during their tenure of offices characterized with changing portfolios and revision of radical exploitative colonial policies colonialism.

Minority rights and violence: A comparative analysis of the conflict in Southern Cameroon and Biafran separatism in Nigeria

AbstractRights disparity within a population, alongside an unresolved and long‐standing feud concerning minority rights, is a key factor in fuelling agitation and violence in a country. Consequently, it has a significant effect on a state’s peace, security, and development. This article presents a comparative analysis regarding the violence experienced in Southern Cameroon and in Southeastern Nigeria. The analysis is carried out using a qualitative approach based on a revised model of Relative Deprivation (RD) theory. Documentary evidence focusing on the causes of violence is analysed to explain specific factors associated with minority rights. The article argues that while the two cases studied are quite distinct, there are also certain similarities which illustrate how state‐destabilizing violence originates out of horizontal inequalities created by a state’s government. This conclusion is showcased in a model of RD theory as it relates to West Africa and the Central African States.

High Technologies in Central Africa’s Countries: Distant Future or a New Reality?

The article emphasizes the strengthening of the Central African states leadership position in the need to develop the latest technologies. The focus is on the ICT development as a digital platform for economic and social transformations. The realization of Central African Backbone project, which aims to expand the fiber optic cable network within the CEMAC countries, is of particular importance. Its implementation led to the emergence of 3G/4G networks, significantly increasing the population access to broadband services and penetration rate of high-speed Internet and mobile telephony. The unified telecommunications network will make an important contribution to the countries’ integration. The startup system development contributes to solving the problem of young population employment, by realizing the latest technological advances, using digital technologies in such important areas as medicine, finance, trade, farming, education. There is a gradual reduction in the gap between the digital market needs and the level of training for employees working in high technologies sphere. The impact of COVID-19 recession on the digital sector in the countries of the region is inevitable. Overall progress towards expanding 3G/4G networks could be slowed down and the cost for telecommunication services is possible to rise. However, the governments of most countries are striving to ensure that the citizens can make the best use of the digitalization advancements by developing subsidy schemes and promoting projects for telemedicine, education, financial and banking services.

Central Banks’ Responses to the COVID-19 Pandemic: The Case of the Bank of Central African States

Central Banks’ Responses to the COVID-19 Pandemic: The Case of the Bank of Central African States

Israel and the Francophone Central African States of the Democratic Republic of the Congo and Cameroon: The Development of Long-Term Relationships with Autocrats

Israel and the Francophone Central African States of the Democratic Republic of the Congo and Cameroon: The Development of Long-Term Relationships with Autocrats

Impact of Market Concentration on the Stability of the Banking Sector in the Central African Economic and Monetary Community (CEMAC)

The objective of this paper is to analyze the impact of banking market concentration on the stability of the banking sector in the Economic Community of Central African States (CEMAC). Using panel data from 2005 to 2015 and the system GMM technique, it is found that deposit and credit market concentration have a destabilizing effect on the banking system. Thus, it would be desirable to put in place mechanisms that can help reduce the market power of certain banks to guarantee banking stability.

Effects of the Quality of Institutions on the Economic Diversification of the States of the Economic and Monetary Community of Central Africa (CEMAC)

The objective of this paper is to analyze the effects of the quality of institutions on the economic diversification of the countries of the Economic and Monetary Community of Central African States (CEMAC). The panel data used cover the period 1995-2019 and are extracted from the UNCTAD, WGI and WDI databases of the World Bank. The econometric analysis of the panel data, using the Pooled Mean Group (PMG) technique, shows that two variables are significant in the short term: corruption control for Congo and political stability for Equatorial Guinea. In the long term, corruption control has a positive impact on economic diversification, while political stability has a negative effect on economic diversification. The results imply that 1) the leaders of CEMAC countries should ensure political stability by adding a measure of good governance to improve economic diversification, and 2) through the fight against corruption, the public authorities should adopt rational frameworks that enable them to effectively strengthen economic diversification.

Analysis of the Microeconomic Factors of the Financial Inclusion of the Population in the Republic of Congo

This article analyzes the microeconomic factors that explain the phenomenon of the financial inclusion of the population in Congo. The estimates are based on data from the Survey on Financial Inclusion in the Republic of Congo carried out in 2015 by the National Economic and Financial Council and the Bank of Central African States. The results obtained show that the requirement of low collateral is an incentive factor for inclusion and that individual characteristics (income, age group, level of education and marital status) are determining factors for financial inclusion in the Republic of Congo. These results help determine the economic policy implications of improving the population’s access to financial services for financial inclusion.

International Law and Monetary Sovereignty: The Current Problems of the International Trusteeship of the Cfa Franc and the Crisis of Sovereign Equality.

The CFA franc and the Comorian franc are colonial francs which derive from the split, made by the monetary reform of 26 December 1945, between the metropolitan franc and the currencies used in the French colonies. As far as the CFA franc is concerned, its history is fundamentally marked by the spectre of devaluation, the spectre of countless attempts and the spectre of numerous implementations, which are a reminder that the CFA franc carries a congenital infirmity: its birth coincides with the devaluation of the metropolitan franc. The CFA franc and the Comorian franc are the two currencies of the franc zone, a group of fifteen countries that depend on three central banks: the Central Bank of West African States (BCEAO), the Central Bank of Central African States (BEAC) and the Central Bank of the Comoros (BCC). It should be specified that the monetary unit designated by the CFA franc is different depending on whether the countries are in Central or West Africa. Originally called the franc of the French colonies in Africa, the CFA franc became in 1958 the franc of the African Financial Community in West Africa, within the framework of the West African Monetary Union (WAMU), acting within the limits of the objectives of the West African Economic and Monetary Union (WAEMU); and in parallel, the franc of the African Financial Cooperation in Central Africa, within the framework of the Central African Monetary Union (CAMU), acting within the limits of the objectives of the Central African Economic and Monetary Community (CEMAC).

São Tomé and Príncipe: More than the Land of Cocoa and Coffee

The Democratic Republic of São Tomé and Príncipe, a small and remote island state, located in the Gulf of Guinea, has long offered little geopolitical and geo-economic interest. This situation is however gradually changing. In fact, since 2016, interest in the country has begun to grow, after the country resumed diplomatic relations with People’s Republic of China (hereafter China) and recognized the “one-China policy”. While the island state and Cabo Verde have followed different development paths in the post-colonial era, both share common features and both have the potential to perform important geopolitical regional roles in the context of the Belt and Road initiative (BRI). This paper discusses São Tomé and Príncipe’s regional engagement in the Gulf of Guinea (GG), the Economic Community of Central African States (ECCAS), the Community of Portuguese-Speaking Countries (CPLP), and in multi-level cooperation in light of the Forum for Economic and Trade Cooperation between China and Portuguese-Speaking Countries (FM) as well as bilateral cooperation. We argue that São Tomé and Príncipe is of geopolitical value to China and that the island state will serve Chinese interests in extending the BRI in the Gulf of Guinea. The microstate of São Tomé and Príncipe has the potential to transform itself to function as the “Qatar of the Gulf of Guinea”, and contribute to regional stability by providing regional services for shipping, banking, finance, high-quality education, tourism and as an engaged partner. This paper presents a methodological theoretical-inductive and constructivist perspective, combining qualitative, quantitative and non-participant observation.

Potential impacts of free trade areas and common currency on sustainable agricultural export in Africa

This study probes the potential impacts of free trade areas and common currency in fostering agricultural export based on data from 45 countries in Africa from 1996 to 2018. The main concern is to determine whether exogenous events like becoming a member of Arab Mighreb (AMU), Community of Sahel‐Saharan States (CS‐SS), Common Market for Eastern and Southern Africa (COMESA), East African Community (EAC), Economic Community of Central African States, Intergovernmental Authority on Development (IGAD), Economic Community of West African States (ECOWAS), Southern African Development Community (SADC) or becoming a member of African Continental Free Trade Area (AFCFTA) can potentially accentuate agricultural export. From the main finding, there is evidence that membership becoming membership to AMU, CS‐SS, AMU, CEN‐SAD, COMESA, EAC, ECCAS, ECOWAS, IGAD or part of SADC has a positive marginal impact on agricultural export, its influence is not immediate. Also, the positive marginal impact on agricultural export for becoming a member of AFCFTA continues to decline after 1 or 2 years than the current year. Common currency and economic growth have a positive marginal impact on agricultural export for the period covered by the study.

What Have We Learnt of Joint Ventures in the Internationalization Process of Chinese Multinationals (MNCs)? Evidence from Central Africa

The purpose of this article is to analyze the specific role of joint ventures and other strategic alliances in Foreign Direct Investments (FDI) carried out by Chinese Multinationals Corporations in Central Africa. After exploring the extent to which the use of Sino‑Western joint ventures has helped Chinese firms to improve their technical and managerial skills both in domestic and foreign markets, the focus shifts to Central African countries members of the Economic Community of Central African States (ECCAS). The result is that joint ventures have become a major vehicle for Chinese multinationals firms to channel FDI, thus supporting the hypothesis that in the region under study this strategy allows them to guarantee the supply of raw materials (oil and mining products: copper, cobalt, gold, diamond,..), as part of a “package deals” linking FDI, Chinese Aid and Trade, also known as “Angolan model”; to conquer foreign markets (for technology and manufactured goods “Made in China”) and; to a lesser extent, to acquire strategic assets (brands, technological innovation, managerial skills).The commitment of Chinese stateowned MNCs through the “package deals” appears to be the keystone of stability and sustainability of Chinese FDI in Central Africa and in the continent In conclusion, the expectation is that the flow of Chinese FDI to Central Africa, should contribute to the process of sustainable development in recipient countries, provided that adequate political and economic governance is guaranteed. A pre‑requisite is to achieve institutional change, from a rent‑seeking to a developmental behavior at the state level, the result being an enhanced capacity to promote engineering potential, through the strengthening of human capital, and to negotiate transfer of technology and know‑how, with emerging countries partners, especially BRICS (Brazil, Russia, India, China and South Africa)

DOES THE PROCYCLICALITY OF CAPITAL REQUIREMENTS AFFECT FINANCIAL STABILITY IN CEMAC?

The objective of this article is to analyze the effects of procyclical variations of the capital requirements for risk coverage on financial stability in the CEMAC[1]. In order to achieve this objective, we have specified and estimated a panel VAR model using the structural factorization method on quarterly Central Bank data over the period 2006-2017. Firstly, the results show that procyclical capital adjustments in the CEMAC region lead to short-term financial instability through the contraction of credit to the private sector. Secondly, despite the low level of financial development, the effects maintained by the adjustment of monetary policy instruments in the short term remain significant on price stability. Finally, in the long term, the procyclicality of regulatory capital makes it possible to revive economic activity and guarantee financial stability. These results lead us to recommend the adoption of a more discretionary monetary policy so as to make more procyclical the capital requirement.
 
 
 [1] Economic Community of Central African States comprising Cameroon, Central African Republic, Chad, Congo, Gabon and Equatorial Guinea.