IMF Staff Completes Mission to the Central African Republic
November 8, 2019
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board.
- The IMF welcomes the progress made in implementing the Political Agreement for Peace and Reconciliation (APPR).
- Recent economic developments have been broadly favorable, with an accelerating economic growth, a contained inflation, and a reduction in the current account. However, tax revenues are below expectations.
- The Central African authorities and the IMF team discussed a program of economic policies and structural reforms for the next three years, which could be supported by a new agreement under the Extended Credit Facility. These discussions will continue in the coming weeks.
An International Monetary Fund (IMF) team, led by Mr. Édouard Martin,
visited Bangui from October 28 through November 8, 2019 to discuss the
program of economic policies and reforms that the government intends to
implement over the next three years, and which could be supported by the
IMF through a new arrangement under the
Extended Credit Facility (ECF)
At the end of the visit, Mr. Martin issued the following statement:
“The IMF welcomes the progress made in implementing the Political Agreement
for Peace and Reconciliation (APPR) signed on February 6, which has
contributed to a steady reduction in violence in the country. Although this
progress remains fragile, it shows the potential of the agreement in
improving the security in C.A.R. and thereby create the conditions for
sustained growth and sustainable poverty reduction.
“Recent economic developments have been generally favorable. Economic
growth, driven by mining, forestry, and construction, is expected to reach
4½ percent this year and 5 percent next year. Inflation remains contained,
being forecast at around 3½ percent in 2019 and less than 3 percent in
2020. The current account deficit is expected to shrink to 5.5% of GDP in
2019, mainly due to the exceptional level of budget support granted by the
economic and financial partners. The banking sector remains largely
capitalized and liquid. However, tax revenues were below expectations. This
is all the more concerning as revenue mobilization is critical to the
sustained financing of the country’s most pressing spending needs.
“The favorable economic outlook is subject to substantial risks: downward,
owing to the volatile security situation and the risks of a slowdown in the
global economy; and upward, in connection with the implementation of the
“The mission’s discussions focused on the program of economic policies and
structural reforms that the government intends to implement over the next
three years in the context of the Recovery and Peacebuilding Plan (RCPCA)
and which could be supported by the IMF through a new arrangement under the
Extended Credit Facility. Building on the progress made over the past three
years, this program will aim to further reduce fiscal and external
imbalances while promoting strong and sustainable growth and poverty
reduction. It will be based on a sound fiscal policy aimed at ensuring
sustainable financing of humanitarian, social, security, and infrastructure
spending needs through further domestic revenue mobilization efforts and
rationalization of non-priority spending. It will also be based on an
ambitious and realist program of structural reforms aiming at: further
strengthening the institutions and governance in the country, which is
essential for strengthening social cohesion; and removing bottlenecks and
regulatory barriers to private investment. These discussions have been
productive and will continue in the coming days, with a view to submitting
a new arrangement to our Board of Directors by the end of the year.
“The team thanks the authorities for their warm hospitality, cooperation,
and constructive discussions.”
The IMF team met with President Touadéra, President of the National
Assembly Ngon-Baba, Prime Minister Ngrébada, Minister of Finance Dondra,
Minister of Economy Moloua, Minister of Mines Mbolifatrane, Minister of
Water and Forest Amit, National Director of the BEAC Chaibou, and other
senior government officials and parliamentarians. The team also met with
representatives of the private sector, civil society, and donor community.
IMF Communications Department
PRESS OFFICER: Lucie Mboto Fouda
Phone: +1 202 623-7100Email: MEDIA@IMF.org