The Congolese Minister of Economy and Finance, Jean-Baptiste Ondaye, President of the Central African Monetary Union (UMAC) and Chairman of the Board of Directors of the Bank of Central African States (BEAC) , chaired an ordinary session of the said Council, Thursday July 20, 2023, in Douala (Cameroon).

Among the files submitted for examination by the members of the Board of Directors of this monetary issuing institute of the CEMAC zone, were the economic situation, the prospects and the macroeconomic framework of the Economic and Monetary Community of Africa (CEMAC), as well as the international situation. They noted that growth at the global level is, overall, experiencing a slight slowdown. “In the Central African Economic and Monetary Community (CEMAC), growth of 3% was expected. But, according to the new forecasts for 2023, we expect an average of 2.4%,” the administrators estimated.

This situation, according to them, remains marked by inflationary tensions, both for the CEMAC sub-region and for the rest of the world. The inflation rate exceeds, for example, 6% in the CEMAC zone, while the community standard is 3%.

The Council also examined the various measures taken by the six Member States, in 2020 and 2021, following the Covid-19 epidemic. All these measures boil down to subsidies for petroleum products at the pump and food products; the freezing of bills for everyday consumer products (such as water and electricity), as well as tax relief and customs duties on the importation of essential products.

Administrators observed that this inflation is not just the responsibility of the Central Bank. For the short term, they suggested better targeting of social spending in all Member States and vigilance by the Central Bank in examining the economic situation, in order to adjust all monetary policy instruments to control the economy. inflation.

Directors also examined the determinants of inflation. It emerges from this analysis that inflation of external origin is dominant at more than 58% in the zone, and that the "Food products and non-alcoholic beverages" component constitutes the most important component in the formation of inflation. inflation in the CEMAC zone.

Among the long-term recommendations made by participants to counter the surge in prices is the diversification of economic bases in the CEMAC zone, in order to increase supply.

The external sustainability situation of the BEAC was also examined. It appears from this analysis that foreign exchange reserves are consolidated with a 5-month import guarantee. In April 2023, we recorded a peak of 7,600 billion, compared to only 1,000 billion CFA francs in foreign exchange reserves in 2018. “This trend should be consolidated,” indicated Abbas Mahamat Tolli, Governor of the BEAC.

The Central Bank Budget was also examined. It highlights, by the end of 2023, a forecast of nearly 300 billion, while the initial budget was estimated at 142 billion CFA francs.

The BEAC Strategic Plan 2018-2023 was also examined. Its execution rate was established at around 90%. The Council welcomed these results and, above all, the impact of the effects of this Plan and its implementation.

Note, for information purposes, that the ordinary session of the BEAC Board of Directors on July 20, 2023 was preceded by the meeting of the BEAC Government.

During this meeting, Jean-Baptiste Ondaye mentioned certain blocking points which undermine the functioning of this monetary issuing institute, considered the flagship of sub-regional integration in the CEMAC zone (Cameroon, Congo, CAR, Gabon , Equatorial Guinea and Chad).

The Communication Unit of the Ministry of Economy and Finance

Photo credits : B2B Communication