The not too long ago launched 2022 report on cost providers by the CEMAC Central Financial institution highlights the pivotal function of cellular cash in driving monetary inclusion, digitizing funds, and creating African economies. Cellular cash accounts for a formidable 98% of all opened cost accounts within the CEMAC zone, demonstrating its dominant place within the monetary panorama.
Through the referenced interval, a staggering 2.4 billion cellular cash transactions have been processed, amounting to a complete worth of over 107,126 billion CFA francs. This outstanding development is attributed to the widespread adoption of USSD know-how, which accounted for two,309 processed operations and a couple of.3 billion transactions.
As of the present publication, six cost establishments have been authorised to function throughout the CEMAC zone:
- Orange Cash Cameroun S.A. – Cameroon
- Cellular Cash Company – Cameroon
- Cellular Cash Congo S.A. – Congo
- Cellular Commerce Congo S.A. – Congo
- Airtel Cash S.A. – Gabon
- Airtel Cellular Commerce Tchad S.A. – Tchad
Moreover, the Central Financial institution has issued 15 favorable technical opinions to different cost service suppliers.
Vital Concerns for Cost Service Providers in CEMAC
I. Firm Incorporation
The supply of cost providers in CEMAC is a regulated sector, topic to necessary share capital and administration construction necessities. Cost establishments should preserve a minimal paid-up share capital of 5 hundred million FCFA and appoint a Normal Supervisor and a Statutory Auditor authorised by the Banking Regulatory Authority.
Subsequently, cost providers can solely be operated within the type of a public firm, both as a simplified joint-stock firm or a public restricted firm.
II. Regulatory Approvals
Cost service suppliers should receive regulatory approval from the Financial Authority. Nevertheless, prior authorization could also be crucial in sure circumstances.
1. Prior Authorization
a. Authorization to Present Worth-Added Providers
Cellular cash providers utilized USSD know-how are labeled as a Worth-Added Service in Cameroon. Consequently, suppliers intending to supply cost providers through a cellular telephony resolution should receive authorization from the related public physique overseeing telecommunications and knowledge and communication know-how. This course of entails an on-site go to.
b. Interoperability Certification
To safe the Central Financial institution’s technical opinion for approval, cost service suppliers should make sure the interoperability of their technical resolution. That is sometimes achieved by turning into a participant within the Interbank Monetics Group of Central Africa (GIMAC), which certifies the interoperability of individuals’ technical options by way of an on-site go to.
2. Approval
Three important authorities are concerned within the approval course of for cost service suppliers, every with distinct roles.
a. The Financial Authority
The Financial Authority is liable for receiving purposes and issuing approvals, topic to the favorable opinion of the Banking Fee and a technical opinion from the Central Financial institution. The applying file should embrace important components resembling shareholder breakdown, industrial names, distribution channels, domains, danger administration particulars, anti-money laundering procedures, and interoperability certification.
b. The Banking Fee (COBAC)
COBAC evaluates the applicant’s means to adjust to prudential requirements, contemplating components resembling consistency between providers, proposed technique, deliberate actions, and the adequacy of proposed capital to the danger profile. A good opinion from COBAC is contingent upon satisfying these standards.
c. The Central Financial institution
Earlier than COBAC points its favorable opinion, it seeks the technical opinion of the Central Financial institution on points resembling technical and practical requirements, info system safety and effectivity, transmission high quality, community entry, interoperability, and related authorizations. The BEAC’s on-site go to concludes with a technical opinion addressing these crucial points.
Conclusion
Cellular cash has emerged as a strong catalyst for monetary inclusion and financial growth within the CEMAC zone. Cost service suppliers play an important function in facilitating this development. By rigorously contemplating the crucial issues outlined above, potential payment service providers can easily get into the CEMAC market with a inhabitants of about 42.5 million folks.
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