Press Release No. 24/474

Statement by IMF African Department Director Abebe Aemro Selassie at the Conclusion of the CEMAC Summit

December 16, 2024

• CEMAC (Economic and Monetary Community of Central Africa) countries and institutions have made progress in their reform agenda in recent years. However, challenges persist, including high debt levels, mounting fiscal and external imbalances, and economic diversification and governance issues.
• IMF staff welcomes CEMAC's leaders commitment to reforms and recommends further actions to rebuild buffers, enhance public finance sustainability and transparency, mobilize non-oil revenues, and address debt vulnerabilities. The IMF is ready to support the region in achieving sustainable and inclusive growth.
• The Heads of State Summit today set the stage for accelerating the reform agenda and preventing the build-up of fiscal and external imbalances. The IMF and country and regional authorities will work together to achieve the conclusion of the discussions on regional assurances and safeguard regional macroeconomic stability.

Washington, DC: At the conclusion of the meeting of the CEMAC Heads of State, Mr. Abebe Aemro Selassie, Director of the IMF’s African department, made the following statement:

“CEMAC countries and regional institutions have made substantial strides in the reform agenda since the 2021 Summit which brought together Heads of State, CEMAC regional institutions and the IMF. The Heads of State Summit today was an opportunity to assess the macroeconomic situation of CEMAC, take stock of reform progress, and pave the way for coordinated economic policies for member states to foster sustainable, inclusive, and job-creating growth."

"The IMF staff welcomes the regions’ renewed commitment to the principles of fiscal and external sustainability. These encompass policies designed to rebuild buffers, enhance the efficiency of public spending, increase the mobilization of non-oil revenues, clear domestic arrears to support the private sector and preserve the stability of the financial system, as well as to address debt vulnerabilities. Bold actions are needed, notably to enhance transparency in public finances and in the oil and gas sector. The fixed exchange rate regime continues to serve the region well by effectively anchoring inflation expectations and reducing uncertainty associated with international trade and investment. The Fund welcomes the renewed commitment to bolster the region’s external sustainability."

"Challenges remain and are compounded by pre-existing vulnerabilities such as high public debt levels, lack of diversification, governance and institutional weaknesses, and subdued improvements on poverty and living standards. The current uneven implementation pace of the reform agenda constrains the region’s potential growth and calls for accelerated and coordinated efforts to elevate CEMAC’s potential meaningfully and durably to provide greater opportunities to its young and vibrant population."

The Fund is committed to doing its part and stands ready to provide support. This Heads to State Summit has laid the groundwork to advance critical discussions on regional policy assurances and on safeguarding regional macroeconomic stability. IMF staff, and country authorities and regional authorities continue discussions to reach a common understanding on efforts needed to improve CEMAC’s sustainable adjustment fiscal path, preserve external buffers, and to strengthen debt sustainability.”