CEMAC: Urgent action to address economic challenges

The Heads of State of the Economic and Monetary Community of Central Africa (CEMAC) , meeting in an extraordinary session in Yaoundé on Monday, December 16, 2024, highlighted the need to adopt urgent measures to stabilize the regional economy. They stressed the importance of structural reforms and rigorous management of public finances in the face of a worrying economic situation.

A regional economy under pressure

Declining foreign exchange reserves and weak growth

Cameroonian President Paul Biya opened the discussions by warning of the worrying decline in CEMAC’s net foreign assets , stressing the urgency of corrective actions:

“Our net foreign assets have been significantly reduced. This situation is worrying and calls for urgent action on our part to reverse this trend.”

The region faces fragile economic growth , compounded by challenges such as dwindling foreign exchange reserves and complex fiscal management . The Heads of State stressed that if rapid reforms are not undertaken, the consequences for national economies and the sub-region could be disastrous .

Priority measures: reforms and budgetary rigour

CEMAC member states have agreed on a series of structural measures to stabilize regional finances:

• Budget consolidation to better control spending.
• Strict debt management to limit the risks of over-indebtedness.
• Strengthening banking regulations and better management of oil revenues .

According to Paul Biya, these actions are crucial to strengthen the economic resilience of the sub-region in the face of multiple shocks.

A call for international support

Supporting economic transformation

The heads of state also requested increased support from international partners to assist the region in its economic transformation , particularly in the management of revenues linked to natural resources such as oil .

Central African President Faustin-Archange Touadéra highlighted the notable progress made despite the crises:

“The numerous exogenous and endogenous shocks that CEMAC has experienced over the last decade have not had the better of our community space.”

He recalled that regional economic growth reached 2.7% in 2024 , compared to only 1.1% in 2016 , and that the level of foreign exchange reserves doubled thanks to the implementation of more than 60% of the agreed economic reforms .

Conclusion: A concerted vision for economic resilience

Faced with growing economic challenges, CEMAC member states have demonstrated a common desire to redress the situation by strengthening structural reforms and seeking increased international support . The Yaoundé extraordinary session marks a decisive step towards ensuring the region’s economic stability and resilience in an uncertain global context