An International Monetary Fund (IMF) staff team, led by Mr. Albert Touna Mama, visited Bangui, Central African Republic (CAR) from March 19 to March 28, 2025. The purpose of the visit was to engage in discussions with CAR authorities regarding the combined third and fourth reviews of a program supported by the Extended Credit Facility (ECF). The discussions are expected to continue virtually in the coming weeks.
Mr. Touna Mama highlighted improvements in security but noted persistent financial strains in CAR. These issues are attributed to the country's low domestic revenues, which were exposed when budget support programs were suspended by development partners in 2021. Although some development partners have resumed their support since 2023, the assistance remains insufficient at 2% of GDP, below the 5% required to stabilize public finances. Domestic revenues have increased but do not cover the residual financing needs.
The socio-political context, including social and humanitarian needs, election costs, and the government’s efforts to boost state presence outside of Bangui, has increased budgetary pressures. The partial suspension of US aid could further strain finances. The revised 2025 budget will involve difficult decisions to balance spending, refine financing strategies, and ensure sustainable public finances.
The fuel sector faces underperformance despite improved supply. High pump prices impact household consumption and economic activity, with revenues dropping from FCFA 24 billion in 2021 to FCFA 17 billion in 2024. Authorities plan to audit fuel price structures to address cost issues.
A 30,000-ton fuel grant from Russia provides a chance to ease CAR’s financial challenges and aid households and businesses. IMF estimates suggest real GDP growth in 2024 at 1.8%, with an expected 2.9% in 2025, driven by several factors, including the ongoing 4G rollout and a mining sector rebound. However, risks such as US aid suspension and energy sector challenges remain.
Public finance reforms continue, notably in tax administration digitalization, facilitating taxpayer transactions with customs. Exceptional tax exemptions at customs are being limited, and import procedures applied effectively.
Mr. Touna Mama calls for international support to stabilize CAR’s finances, emphasizing the need for concessional financing to reduce debt vulnerabilities. He also expressed appreciation for the collaborative discussions with CAR authorities, including meetings with key government and development partners.