Central African Republic To Put Emergency Economic Revival Into Motion

Central African Republic To Put Emergency Economic Revival Into Motion

From Bloomberg

The Central African Republic is preparing an emergency program to deal with the effects of a coup four months ago that has left the government without funds, Finance Minister Christophe Mbremaidou said.

A 261 billion-CFA-franc ($525 million) budget approved in December is no longer in effect because individuals and companies have stopped paying taxes, Mbremaidou said in an interview in the capital, Bangui. The government plans to approach donors to help deal with “urgent problems” including a lack of access to healthcare and education, he said.

“The coffers are empty,” Mbremaidou said on July 20. “With the recent crisis, companies and institutions that facilitate the movement of money into state coffers through the payment of taxes are closed and no longer work.”

Central African Republic has descended into a “state of anarchy and total disregard for international law” since former President Francois Bozize’s government was deposed by rebel Seleka forces on March 24, according to the United Nations Security Council. The economic outlook is “highly uncertain” after the fall of Bozize’s regime, the African Development Bank said on its website.

Growth in Central African Republic last year was 3.1 percent, lower than forecast, and the outlook for 2013 and 2014 has deteriorated, the bank said in May. Mbremaidou didn’t provide an estimate for this year.

To revive the economy, the government plans to improve security to encourage people to return to work, Mbremaidou said. The state is also urging those displaced by the recent conflict, including employees of aid agencies, to return to the country, he said. R

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