IMF and Central African Republic Reach Staff-Level Agreement on Second Review of Extended Credit Facility

The Central African Republic (CAR) is making significant progress in stabilizing its economy and achieving fiscal consolidation, despite facing numerous economic and social challenges. A recent visit by a team from the International Monetary Fund (IMF) led by Mr. Albert Touna Mama has resulted in an agreement on economic policies that will support the approval of the second review of CAR’s ECF-supported program.

During the discussions held in Bangui and Washington DC, Mr. Touna Mama commended CAR for its efforts in increasing government tax revenues and improving fiscal continuity with the support of international financial institutions. The country’s economic growth is estimated to have slightly increased in 2023, although challenges in the fuel and electricity supply sectors persist.

While CAR has met most of the performance criteria set by the IMF, there are still obstacles to overcome, particularly in the energy sector and the humanitarian crisis exacerbated by limited fiscal space. The government has adopted a series of reforms under the ECF program to address these challenges, including measures to boost tax revenues, provide relief to consumers, and modernize government finance systems.

Looking ahead, the IMF anticipates a gradual acceleration of economic activity in CAR, contingent on the success of initiatives such as the ‘river campaign’ for importing fuels and overcoming electricity supply difficulties. The authorities are urged to implement the agreed action plan and ensure the attainment of tax revenue targets to support economic growth.

The IMF delegation also met with key officials in CAR, including President Touadéra and Minister of Finance Ndoba, to discuss the country’s economic progress and future plans. The mission expressed gratitude for the cooperation and open dialogue with CAR authorities during the discussions.