Press Release No. 24/287

IMF Staff Concludes Visit to Central African Republic

July 24, 2024

• The Central African Republic (CAR) continues to implement public finance management and governance reforms, despite the particularly difficult socio-economic context and significant financing needs.
• In the very short term, the main challenges concern the country's fuel supply and the control of budgetary risks.
• The implementation of the reforms planned under the CAR program supported by the Extended Credit Facility (ECF) remains the best path to macroeconomic stabilization in the medium term.

Washington, DC: An International Monetary Fund (IMF) team, led by Mr. Albert Touna Mama, visited Bangui from July 10 to 17, 2024, to take stock of the recent macroeconomic developments and the implementation of structural reforms, as well as to discuss the major budget allocations for the upcoming revised 2024 finance law.

Mr. Touna Mama issued the following statement at the end of the discussions:

“The positive progress in domestic revenue mobilization since the start of the ECF program continued, reaching a record level of CFAF 80 billion during the first half of this year. The prospects for budget financing also continue to improve, aided by ongoing discussions with technical and financial partners, which could lead to new budget support programs. Likewise, fiscal reform has gained momentum, as illustrated by the strategic orientations resulting from the recent seminar on digital reforms organized by the Ministry of Finance and Budget.  

“However, significant challenges continue to weigh on the economic outlook and public finances. A first major and recurring challenge concerns the fuel supply campaign via the Ubangi River which is still struggling to get started. A failure of this campaign, for the third consecutive year, would contribute to slowing down economic activity, hampering government revenues, and delaying macroeconomic stabilization by at least two semesters given CAR’s import structure.

“Another major challenge concerns the control of budgetary risks, in particular those pertaining to weaknesses in budget planning and execution. These risks have already led to significant overspending during the first half of this year. The upcoming revised budget will therefore be an opportunity to take all appropriate measures to adapt to the economic situation and maintain a balanced budget.   

“Our macroeconomic projections remain anchored on a gradual acceleration of economic activity to 1.4% in 2024 and 2.9% in 2025. However, these growth prospects will depend crucially on the country's fuel supply and the effective implementation of the reforms planned under the ECF program.             

“The mission would like to thank the Central African authorities for their warm welcome, openness and frankness in the discussions.”

The IMF delegation met with President Touadéra, Prime Minister Moloua, First Vice-President of the National Assembly Ngamana, Minister of Finance and Budget Ndoba, BEAC National Director Chaïbou and other senior officials, as well as representatives of the development partner community.