(Ecofin Agency) - According to the IMF, the member countries of CEMAC have made progress in structural reforms aimed at supporting the private sector, maintaining the stability of the financial system, and addressing debt-related vulnerabilities.

The International Monetary Fund (IMF) has praised the economic progress made by the member countries of the Central African Economic and Monetary Community (CEMAC) following the extraordinary summit of heads of state held on December 16, in Yaoundé, Cameroon.

In a statement, the IMF recognized the efforts made by CEMAC countries to rebuild foreign currency reserves, improve public spending efficiency, increase non-oil revenues, and address domestic arrears to support the private sector. The IMF also highlighted progress in stabilizing the financial system and managing debt vulnerabilities.

“The Heads of State Summit today was an opportunity to assess the macroeconomic situation of CEMAC, take stock of reform progress, and pave the way for coordinated economic policies for member states to foster sustainable, inclusive, and job-creating growth,” said Abebe Aemro Selassie (pictured), Director of the IMF’s Africa Department.

However, despite these achievements, the IMF warned about ongoing vulnerabilities, including high public debt, limited economic diversification, and weaknesses in governance and institutions. Debt vulnerabilities remain a major issue in most member countries. According to the IMF, the debt-to-GDP ratio in the region increased from 51.8% in 2022 to 53.5% in 2023 due to higher debt servicing costs in Gabon and the discovery of new payment arrears in Congo.

“The current uneven implementation pace of the reform agenda constrains the region’s potential growth and calls for accelerated and coordinated efforts to elevate CEMAC’s potential meaningfully and durably to provide greater opportunities to its young and vibrant population,” added Mr. Selassie.

The IMF recommended that CEMAC countries implement measures to improve transparency in public finances and in the oil and gas sectors. It also reaffirmed that the region’s fixed exchange rate system plays a key role in stabilizing inflation expectations and reducing economic uncertainty.

During his speech, Faustin-Archange Touadéra, the rotating president of CEMAC, expressed pride in the progress made since 2016. "Our community has been able to consolidate economic growth to reach 2.7% in 2024, up from -1.1% in 2016, and double the level of foreign currency reserves between 2016 and 2024, thanks to the implementation of over 60% of the reforms agreed upon in our economic and financial reform program," he said. However, he emphasized the need for collective action and increased support from international partners to ensure inclusive and sustainable growth.

“I would like to appeal to our development partners for an urgent and larger allocation of resources to our sub-region in order to increase access to energy and digital services, unlock the potential of the private sector to create more jobs, mobilize national resources, and improve resilience to climate change and conflict, as discussed during the African heads of state summit in Nairobi on April 29,” President Touadéra concluded.