IMF warns Central African economies to brace for hard times

The International Monetary Fund has warned of hard economic times for Member Countries in the Central African Economic and Monetary Community.

In a recent statement, the Executive Board of the International Monetary Fund (IMF) said the annual discussions on Common Policies and Challenges of Member Countries with the Central African Economic and Monetary Community (CEMAC) was one that needed attention.

Growth of countries in the CEMAC reduced in 2015 slowing to 1.6 percent, from 4.9 percent in 2014.

The stunted growth was due to reduced public investment and lower oil production. Growth is projected to be 1.9 percent in 2016, as oil production and investment remain sluggish, the World Bank projects.

The IMF has further suggested a weak economic growth of 1.6% against 1.9% last year.

Compared to 4.9% growth in 2014, it says the economy of Central African States has lost 3.3 per cent of
growth of money.

The general negative outlook is due to oil price collapse on the world market and the cost of fighting terrorism especially on Boko Haram who have access to the border of Chad and Cameroon.

The IMF has recommended more fiscal discipline, and the freezing of statutory advances from the Central Bank to support rebuilding efforts.

It has also asked for diversification of foreign exchange reserves.