The World Bank has released a report highlighting the stagnant state of the Central African Republic's economy, with GDP growth projected at 0.7% for 2024. This slow growth is attributed to ongoing fuel shortages and power outages in Bangui during the first half of the year. The report anticipates a gradual economic recovery, with an average growth rate of 1.6% expected between 2025 and 2026.
Inflation is predicted to decrease to 1.5% in 2024, approaching a threshold of 3% by 2025-2026. Despite these projections, the country remains one of the lowest in terms of human capital and development scores, with extreme poverty affecting approximately 65.7% of its population since 2023.
Security issues continue to hinder economic stability, as sporadic violence and tension persist despite minor improvements. The report emphasizes the potential role forests can play in supporting the economy by providing livelihoods for indigenous groups and offering global environmental services. However, Central African forests face significant threats from human activities within the Congo Basin.
Guido Rurangwa, Country Manager for the Central African Republic, stated: “The Central African Republic has the opportunity to improve forest governance and develop a solid wood processing industry while achieving the twin objectives of promoting forest conservation and ensuring a bigger stake for the forest sector in the country’s economy.”
The report suggests fiscal instruments such as environmental taxes, tradable permits, and biodiversity offsets could aid sustainable forest management efforts. It also recommends combining these tools with improved governance to enhance law enforcement and transparency.
Additionally, it calls for strengthened regional cooperation through harmonized regulations across Congo Basin countries, increased institutional capacity building, international financing support, and compensation for conservation efforts due to their global importance in climate regulation and biodiversity protection.