Triple handover at the Ministry of Finance

THE NEW MINISTER, CHRISTIAN YOKA, TAKES COMMAND OF FINANCE, BUDGET AND PUBLIC PORTFOLIO
15 Jan, 2025

On Wednesday, January 15, 2025, in the morning, three handovers took place, successively, in the large room of the Ministry of Finance, in Brazzaville.

The first handover concerned Mr. Jean-Baptiste ONDAYE, outgoing Minister of Finance, and Mr. Christian YOKA, new Minister of Finance.

The second was carried out between Mr. Jean-Baptiste ONDAYE, outgoing Minister of the Economy, and Mr. Ludovic NGATSE, incoming Minister of the Economy.

The third and final transfer of responsibilities was made between Mr. Ludovic NGATSE, outgoing Minister of Budget and Public Portfolio, and his colleague Christian YOKA, Minister of Finance, Budget and Public Portfolio.

Addressing his successor in the Finance Department, Mr. Jean-Baptiste ONDAYE took the opportunity to, first, thank the President of the Republic, His Excellency Mr. Denis SASSOU-N’GUESSO, for having placed his trust in his modest person, then, to draw his attention to five challenges, namely: “the finalization of the 6th review of the program with the International Monetary Fund (IMF), to consolidate the economic and financial progress made; the completion of discussions with the extractive industries, within the framework of the signing of the escrow account agreements of the Site Restoration Funds, a key pillar for monetary stability, thanks to the consolidation of the level of foreign exchange reserves which will definitively remove the specter of a monetary adjustment; the evolution of monetary cooperation with France, in accordance with the recommendations of the Conference of Heads of State of the Economic and Monetary Community of Central Africa (CEMAC), of November 22, 2019 and March 15, 2023. This issue will be examined at the next session of the Ministerial Committee of the Central African Monetary Union (UMAC), scheduled for January 31, 2025; the continuation of the digitalization of the public finance management system, in particular with the Single Treasury Account (CUT), which will end with the role that the banking Treasury will play, once implemented; the reorganization of departmental services; the qualitative and quantitative improvement of strategic resources; the continuation of work on boosting the mobilization of resources, in particular with CenterView Partners, for the Debt for Nature Swap Operation and the African Solidarity Fund (FSA), dedicated to the settlement of social debt. Previously, the outgoing Minister of Finance broadly took stock of his twenty-seven and a half months of action in these terms:

"...Concerning organizational and institutional reforms, the ministry has proceeded to align the texts governing the administrations under supervision with international standards and developments in our environment. This work resulted in the publication of thirteen (13) organic decrees and nine (09) subsequent orders.

Our action has also focused on the success of the transition from the means budget to the program budget, which marks our desire to become a leader in Results-Based Management (RBM). To this end, all strategic documents have been finalized and validated with all stakeholders involved in a participatory approach.

The success of the various reviews of the program concluded with the International Monetary Fund (IMF) under the Extended Credit Facility (ECF) has not been left behind. On the contrary, we have spared no effort to maintain the reforms and successfully conclude five (5) successive reviews.

The prospects for the conclusion of the sixth and final review are rather optimistic.

At the Treasury level, we had made the bet to move from a cash management at sight to a proactive management. (…) This is how our efforts focused on the launch and acceleration of reforms aimed at implementing the Single Treasury Account (CUT); making the banking functions of the Treasury operational; and setting up a Deposit and Consignment Fund (…)

I had the privilege of chairing the Steering Committee of the Economic and Financial Reform Program (PREF)-CEMAC. In this regard, the work carried out at this level allowed the success of the investors' round table, which resulted in an oversubscription of the needs expressed for the financing of the integrating projects.

At the UMAC level, we have been keen to advance several issues of common interest, particularly the development of monetary cooperation with France; negotiations with the foreign industries sector

The handover of instructions between Ministers ONDAYE and NGATSE

After recalling some achievements, the outgoing Minister of Economy, Mr. Jean-Baptiste ONDAYE, urged his replacement in the Department of Economy to take to heart the important projects that remain to be carried out. "This concerns, in particular, the modernization of forecasting and macroeconomic analysis tools, to better integrate all the growth sectors of our economy, and the strengthening of the mechanism for monitoring compliance with the commitments of companies benefiting from tax advantages, particularly in terms of job creation," he stressed.

Taking note of this exhortation, Minister Ludovic NGATSE said he was willing to draw inspiration from all the qualities and the path that his predecessor has already traced. "My action, in this Ministry, will therefore be in line with yours. I will take action to promote the development of many economic sectors and create the conditions for a strong, sustainable, inclusive and resilient economy," he said.

The challenges of the Ministry of Budget and the public portfolio, mentioned by the outgoing and incoming

On the financial level, according to the outgoing Minister, Ludovic NGATSE, a vast public finance reform project has been launched to resolve the effects of the 2014 financial crisis, which had highlighted the weaknesses of the Congolese model. These reforms, he said, mainly focus on two essential aspects: the need for better mobilization of domestic resources other than oil; and the need to optimize public spending, while controlling the problem of public debt.

Regarding the public portfolio component, Minister NGATSE mentioned a preliminary draft law, developed with the assistance of the World Bank, which is currently being registered, with a view to its examination by the Council of Ministers.

Regarding the accounting component, he cited the transition to accrual and asset accounting in Congo, which is another challenge that must be met.

"The table that I have just drawn up for you is a good basis to help you achieve the budgetary objectives set in the 2025 finance law, which requires, in terms of revenue, a level of resource mobilization of around 1,220 billion CFA francs, at a rate of 1,000 billion for taxes and 220 billion for customs. This budgetary objective, which contributes to the improvement of the primary balance excluding oil, was set by the President of the Republic," said Minister NGATSE, addressing his colleague Christian YOKA.

In response, the latter reassured his colleague in these terms: "We are two sides of the same coin. To achieve this, we will have to amplify and accelerate the work already started within this ministry, which is a ministry of all Congolese. Beyond the expected figures and statistics, dialogue, integrity and audacity will be, among others, the key words of my action".

It should be noted that this triple handover of service on January 15, 2025 took place in the presence, in particular, of representatives of the Presidency of the Republic, the Prime Minister's Office, and the General Secretariat of the Government.

The Communication Unit of the Ministry of Finance, Budget and Public Portfolio

Photo credit: B2B Communication

Category:NEWS
Sub Category:THE MINISTER