Enhancing Sustainable and Inclusive Growth in the Central African Economic and Monetary Community: Suggested Policies and Structural Reforms
Analytical Notes, April 25, 2024
Source details
- Canonical URL
- Enhancing Sustainable and Inclusive Growth in the Central African Economic and Monetary Community: Suggested Policies and Structural Reforms
Other formats
Bibliographic details
- Published: April 25, 2024
- Series: Analytical Notes
- DOI: https://doi.org/10.5089/9798400208317.064
Context and recent shocks
- Two major shocks hit CEMAC within a few years:
- First shock: "2015–16"—triggered by a sharp decline in oil prices, occurring as many countries were ramping up public investment programs.
- Second shock: "the first quarter of 2020"—the COVID-19 pandemic and another collapse in oil prices produced a large demand and supply shock, exacerbated by mitigation measures to contain contagion.
- The second crisis struck before fiscal and external buffers had fully recovered from the 2015–16 shock and threatened to erase earlier recovery gains.
- CEMAC’s structural vulnerability: a largely undiversified economic basis overly dependent on oil.
Policy response to date
- CEMAC countries implemented coordinated efforts relying on large fiscal adjustments under IMF- and World Bank Group-supported programs following the 2015–16 shock.
- The CEMAC Commission established the CEMAC Economic and Financial Reform (PREF), a strategy organized around five pillars to promote diversified, inclusive, private sector–led growth and improved public sector governance.
- Initial PREF measures focused on closer financial engagement with the IMF and other development partners.
- Most CEMAC countries have benefited from the IMF’s sizable emergency financing to cope with the social and economic fallout of the COVID-19 crisis.
Purpose and focus of this position note
- Objective: identify priority reforms at national and regional levels to guide second-generation IMF programs.
- Emphasis: boost progress on the PREF and address growth bottlenecks to put CEMAC on a more sustained and inclusive path.
- This position note highlights a set of priority reforms that can underpin second-generation programs.
Major themes and suggested priorities (as presented)
- Accelerate implementation of the PREF to diversify economies away from oil dependence.
- Strengthen governance of the public sector to support private sector–led growth.
- Design second-generation IMF programs that focus on reforms addressing growth bottlenecks and building resilience to external shocks.
- Maintain and deepen financial relationships with the IMF and development partners to support reform implementation and recovery.
Publication metadata and identifiers
- Pages: 100
- Volume: 2022
- Issue: 002
- Series: Analytical Notes No 2022/002
- DOI: https://doi.org/10.5089/9798400208317.064
- Stock No: ANEA2022002
- ISBN: 9798400208317
- ISSN: 2708-8049
- Publication date shown on the landing page: April 25, 2024
- Subjects: Economic sectors, Financial crises
- Keywords: agriculture, CEMAC, Central African Economic and Monetary Community, financial sector development, inclusive growth, reforms, social protection, sustainable development
International Monetary Fund. "Enhancing Sustainable and Inclusive Growth in the Central African Economic and Monetary Community: Suggested Policies and Structural Reforms", Analytical Notes 2022, 002 (2022).
Content in this bundle
- Enhancing Sustainable and Inclusive Growth in the Central African Economic and Monetary Community