Cameroon has revised upward the rehabilitation cost of its Société nationale de raffinage (Sonara), which has been out of operation since a 2019 fire. The new budget is now estimated at XAF300bn (USD533mn), an increase of XAF50bn over the initial estimate. The announcement was made by Prime Minister Joseph Dion Nguté on November 26 during the presentation of the government’s 2026 economic programme before the National Assembly.
International lenders take the lead
This revision comes as several foreign financial institutions have stepped up efforts to support the revival of the Limbé-based industrial site. On June 17, a joint delegation from the Union de Banques Arabes et Françaises (UBAF), Dutch bank ING and Mauritius Commercial Bank (MCB) visited the site to explore financing options and project support. These discussions aim to accelerate the restart of the country’s only oil refinery.
The Bank of Central African States (BEAC) also reiterated its willingness to support the project via its B window, a refinancing mechanism for medium-term loans dedicated to productive investments. “This window can support the rehabilitation of Sonara,” said BEAC Governor Yvon Sana Bangui during a press conference on September 29 at the close of the Monetary Policy Committee session.
Regional currency reserves under pressure
Before the 2019 fire, Sonara helped cover a significant portion of Cameroon’s fuel needs. Since operations ceased, the country has imported 100% of its petroleum products, putting considerable pressure on its foreign exchange reserves. This strain is shared by other members of the Economic and Monetary Community of Central Africa (CEMAC), whose joint reserves are used to finance imports.
According to sources close to the central bank, BEAC had initially offered to cover up to 60% of the previously estimated XAF250bn cost via its B window. The upward revision of the budget may require an adjustment to that financial commitment, though institutional interest remains strong.
A strategic facility for the subregion
Sonara’s prolonged shutdown poses a strategic risk for regional energy balance. “Today, all the countries in the subregion import finished petroleum products. This weakens our external position,” Yvon Sana Bangui warned as early as June 2024 in Yaoundé, calling for the swift restoration of the refinery.
