Central African leaders order urgent reforms to shore up weakening economies
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Central African leaders ordered urgent fiscal and monetary measures to stabilise the region’s weakening economies, including repatriation of state assets and export revenues held abroad.
In a communique issued after an extraordinary summit in Brazzaville held under the Central African Economic and Monetary Community (CEMAC), the six leaders agreed to immediately implement the return of export revenues, with priority on companies in the extractive sector.
They also instructed governments to pursue and finalise negotiations with firms to repatriate funds set aside for the environmental restoration of areas affected by oil production, which officials described as critical for restoring liquidity in the region’s banking system.
The summit was convened as CEMAC countries face sluggish growth, weaker commodity prices, climate shocks and tightening global financial conditions.
The reforms build on a Bank of Central African States (BEAC) move last year requiring international oil companies to place environmental restoration funds in BEAC-managed accounts under an IMF-backed reform, despite industry pushback; the funds are estimated at 3 trillion to 6 trillion CFA francs ($5 billion to $10 billion) and are currently held in foreign banks for future clean-up once production ends.
The leaders additionally directed governments to advance or finalise economic and financial programmes with the IMF and to align national budgets with IMF commitments, particularly on debt sustainability and strengthening external positions.
