The agreement reached between the Central African Republic authorities and the Fund staff on economic policies is expected to lead to the approval of the second review of the ECF-supported program by the IMF Executive Board. Despite facing tough economic and social challenges, the Central African Republic (CAR) is making progress in stabilizing its economy and achieving fiscal consolidation. Implementing reforms, especially in the fuel market, will be crucial in addressing the numerous economic and social challenges faced by the authorities in a fiscally constrained environment.
A team from the International Monetary Fund (IMF), led by Mr. Albert Touna Mama, conducted discussions with the Central African Republic (CAR) authorities in Bangui from April 03-12, 2024, and later in Washington DC on April 18, 2024, in relation to the second review of CAR’s ECF-supported program.
At the conclusion of the discussions, Mr. Touna Mama praised the progress made by the Central African Republic in stabilizing its economy and achieving fiscal consolidation. The increase in government tax revenues by 0.5 percent of GDP in 2023 and the resumption of budget support from various sources show improved prospects for financing and delivering basic social services. Despite facing challenges in the energy sector and other areas, the CAR government has committed to reforms under the ECF program to address these issues.
Mr. Touna Mama highlighted that there have been achievements in fiscal consolidation but acknowledged that there are still economic and social challenges that need to be addressed. He emphasized the importance of implementing reforms in the fuel market, providing relief to consumers, and modernizing government finance systems to improve fiscal management. The IMF mission expects a gradual acceleration of economic activity in 2024 but underscores the importance of overcoming challenges in the fuel and electricity supply sectors.
The IMF delegation met with various CAR officials and partners during their visit, expressing gratitude for the constructive discussions held. The mission looks forward to continued collaboration with the CAR government to address economic challenges and support sustainable growth.