IMF Staff Completes Mission for a Staff-Monitored Program to the Central African Republic
IMF News, March 4, 2022
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- Published: March 4, 2022
Mission overview
- Press Release No. 22/59
- IMF staff team led by Mr. Oral Williams visited Bangui from February 22 to March 4, 2022, to discuss the first review of the Central African Republic’s staff-monitored program (SMP), which was approved in December 2021.
- End-of-Mission statement: views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.
- IMF Communications Department — MEDIA RELATIONS: PRESS OFFICER: Andrew Kanyegirire. Phone: +1 202 623-7100Email: MEDIA@IMF.org. @IMFSpokesperson
Economic outlook and recovery signals
- “The economy is showing signs of recovery with the reopening of the main trade corridor with Cameroon and the improvement in security. This has enabled an easing of supply bottlenecks and associated inflationary pressures.”
- “Efforts are ongoing to vaccinate the population against the COVID-19 pandemic to protect lives and safeguard livelihoods.”
Main risks to the outlook
- “The main risks to the outlook include a sustained uptick in international food and oil prices, limited progress on the various peace commitments, and uncertainties surrounding the disbursement of budget support.”
- “Recent efforts to reinvigorate the peace process under the ‘Republican dialogue’ are critical to consolidating security and sustaining growth.”
Progress under the SMP and fiscal execution
- “IMF staff and the Central African Republic authorities discussed the progress that has been made in the implementation of the SMP.”
- “The execution of the 2021 budget appears to be broadly in line with the SMP as key end-December budget targets were met.”
Structural reforms and benchmarks implemented
- Progress on key structural benchmarks implemented:
- (i) the submission to parliament of the 2022 draft budget law;
- (ii) the issuance of ministerial orders governing compliance with tax obligations and electronic declarations for large taxpayers; and
- (iii) the submission to parliament of a new anti-corruption law.
Treasury liquidity management and capacity development
- Authorities are pursuing measures to improve treasury liquidity management by auditing and consolidating government accounts.
- This initiative is being supported through capacity development from the IMF’s Regional Capacity Development Center in Gabon.
Measures to mitigate risks to 2022 budget execution and strengthen transparency
- Measures discussed include:
- (i) ensuring that expenditures and commitments are kept within available funding;
- (ii) re-instating monthly meetings of the treasury committee with the participation of technical partners;
- (iii) conducting a Public Expenditure and Financial Accountability Assessment (PEFA).
Importance of development partner support
- “Reaching a consensus with development partners on the remainder of the budget support is critical to safeguarding pro-poor spending and the provision of public services.”
Engagement and acknowledgements
- The IMF team expressed “deep appreciation to the authorities for their excellent collaboration, openness, and hospitality during the discussions.”
- The IMF staff team met with President Touadéra, Prime Minister Moloua, President of the National Assembly Sarandji, Finance Minister Ndoba, Health Minister Somse, Mining Minister Benam-Beltoungou, BEAC National Director Chaïbou, other senior government officials, development partners, and representatives from the private sector.
Source: IMF press release, March 4, 2022.