Bangui, the capital of the Central African Republic, has been facing a fuel shortage in recent weeks. Queues are getting longer in front of gas stations, causing frustration and impact on the daily lives of residents. This situation results from the closure of the branches of Tamoil RCA, formerly TotalEnergies, following the sale of its activities to TransAfricaMarket Oil.
However, the transition between the two companies proved problematic. The authorities are demanding payment of tax debts from Tamoil amounting to more than 2 billion CFA francs. In addition, the buyer allegedly failed to request the necessary authorizations to carry out its activities, which results in an additional fine of 200 million CFA francs. Overall, the government estimates that Tamoil must pay a total sum exceeding one billion CFA francs.
Some question the preparation of Rochefort International, the investment bank which acquired Tamoil, in the face of the country’s administrative complexity and regulations. Discussions between the different parties appear to be ongoing to resolve these issues, but in the meantime, the government has initiated steps to obtain fuel supplies from Neptune Oil, a Cameroonian company.
This new episode of fuel shortage in Bangui highlights the challenges that companies must face when setting up in countries with complex regulations. Administrative compliance is essential to conduct business in compliance with current laws and avoid future problems. It is therefore essential for companies to anticipate and understand the specificities of the market in which they operate.
In conclusion, the closure of Tamoil branches in Bangui led to fuel shortages and administrative problems. The authorities are demanding payment of tax debts and denouncing the lack of approval on the part of Tamoil. Resolving these issues is ongoing, but highlights the importance of businesses complying with regulations and anticipating potential challenges in their process of establishing themselves in a given country.