Surmounting Multiple Shocks : CEMAC States Making Impressive Strides

With a diligent follow up of the Economic & Financial Reform Programme of CEMAC, countries of the sub-region are collectively working to upset the impact of economic, security and humanitarian crises.


Cameroon, Chad, Congo (Republic), Gabon, Equatorial Guinea and Central African Republic; all member countries of the Central African Economic and Monetary Community (CEMAC) have been reeling from multiple shocks, yet the countries have remained steadfast on a joint action to change the tides. 
These countries started moving on jerky rails around mid-2014, following economic and financial crises largely caused by a weak exchange rate due to profound and sustained drop in the prices of global commodities, particularly petroleum products. The situation was aggravated by recurrent terrorist attrocities in the Lake Chad Basin, insecurity posed by rebels in CAR and upsurge in violence following the outbreak of socio-political upheavals in the North West and South West Regions of Cameroon. These security situations brought about humanitarian crises, with the different countries grappling with IDPs, refugees and returnees. 
To respond to the macroeconomic instability marked by slow growth, drop in foreign reserves, and unsuitable public finance accounts, Heads of State of the sub-region decided to put in place an Economic & Financial Reform Programme of CEMAC. The programme is based on five pillars: budgetary policies, monetary policies and financial system, structural reforms, regional integration and international cooperation.
Since the reformation programme started running following its putting in place in 2016, it has been paying off. In a July 2019 report, the International Monetary Fund said “the regional strategy has helped stabilise the regional economic position thanks to large fiscal consolidation efforts, a tighter monetary policy, and external financial assistance.” The report shows that external position in the sub-region improved while external reserves picked up.
According to officials of the Economic & Financial Reform Programme of CEMAC, member countries have taken appropriate measures to rigorously reduce public spending while increasing the tax base in order to mobilise more resources. Also, CEMAC countries, particularly Camero...

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