The World Bank Group President, David R. Malpass highlighted the urgent need for the six (6) Central African Economic and Monetary Community (CEMAC) countries to focus on prudent structural reform policies to help sustain and develop their economies.
The President disclosed this development within the region in his address during the Heads of State of Central Africa summit organized by Cameroon’s President Paul Biya, who also serves in the capacity of CEMAC’s President.
“Deep structural reforms are needed now more than ever to secure social cohesion and put the region on a sustainable and more inclusive development path.
“Even so, the region faces multiple challenges, and the resources provided through both debt relief and concessional financing won’t be enough. Strong reform efforts within CEMAC countries are needed.
“The World Bank Group and IMF are working closely with CEMAC countries to shape new policy programs, projects, and incentive structures.”
David R. Malpass
Meanwhile, Mr. Malpass used the opportunity to express his sincere condolences to the Chadian people on the death of their President Idriss Deby.
Chad is a member state of the CEMAC, some other members include the Heads of States of Cameroon, Congo, Equatorial Guinea, Gabon, and the Central African Republic.
Additionally, Mr. Malpass identified some challenges such as stalled economic growth, high unemployment, and the socio-economic impact of Covid-19 faced by the region.
“COVID-19 is aggravating long-standing challenges of the region. Growth turned negative, and there has been a widespread loss of jobs and economic opportunities.
“Fiscal and external imbalances have grown wider, reducing the room for governments to respond. In addition, the sharp reduction in oil prices during the pandemic exposed again CEMAC’s vulnerability to the volatility in the demand and price for commodities.”
Furthermore, Mr. Malpass outlined some economic supports they have rendered to the CEMAC. Some of these supports include financing health programs, advisory services, and investment programs among others.
“The World Bank Group has maintained a long-standing partnership with CEMAC and its members, providing a range of support including investment programs, budget support, advisory services, and technical assistance.
“As of today, the net commitments under our CEMAC-related portfolio are over $5 billion, covering investments in human capital, infrastructure, energy, forestry, and agriculture.”
David R. Malpass
Economic recovery measures
Undoubtedly, Covid-19 has had a significant adverse socio-economic impact on the region. Mr. Malpass further disclosed some Covid-19 alleviating measure that has been implanted to help the region recover from the prevailing economic downturn.
“Since the COVID pandemic started, we have ramped up our support, including financing for programs in health, adaptation, social safety nets, education, and digital services.
“We are providing COVID-19 vaccine financing and we are ready to increase it. In addition, we are partnering with the African Union to support the Africa Vaccine Acquisition Trust (AVAT) with resources to purchase and deploy single-dose vaccines for up to 400 million people across Africa.
“The funding extends through deployment, and I cannot stress enough the importance of your leadership in rolling out these programs.
“The pandemic has left many CEMAC member countries with elevated debt levels. Debt transparency and sustainability will be vital to a sustained recovery and attracting new investment.”
David R. Malpass
Also, Mr. Malpass stressed the essence of initiating and implementing prudent debt servicing measures to better place the region to attract investors.
“Lasting debt relief will be needed to encourage investment and growth, and we are working toward a strong G20 Common Framework for Debt Treatment.
“To succeed will require the full participation of commercial creditors in the workout for debt and debt-equivalent instruments, including comparable treatment using consistent discount rates.
“I want to also underscore the crucial role of continued and large IDA net positive flows, which provide vital grants and zero-interest loans.”
David R. Malpass
Mr. Malpass further admonished member states to accord the structural policy reforms with all urgency to recover from the current economic situation.
He further outlined recovery measures such as strengthening the management of public funds, enabling business growth, and building human capital among others.
“With limited room for fiscal and monetary policy stimulus, the urgency of priority structural reforms is even greater if countries are to achieve stronger growth that is inclusive and sustainable, and that generates more and better jobs for its citizens.
“Reforms in governance and transparency likely have the biggest potential of boosting private sector growth.”
David R. Malpass
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