In Paris, the France-Cemac ministerial meeting relaunches discussions

2023-04-25 22:35:18

Published on : 25/04/2023 – 22:35Modified : 25/04/2023 – 22:36

This Tuesday, April 25, the first France-Cemac ministerial meeting since 2021 was held in Bercy. All the finance ministers of the monetary zone, the governors and heads of CEMAC institutions were present. The French representatives too.

The meeting provided an opportunity to take stock and relaunch discussions on the financial plan in a post-Covid context. Despite very diverse economic situations between its member countries and with inflation at 4.6% in 2022 and a growth rate of 3.5%, the CEMAC zone has been able to withstand the various shocks. However, many challenges remain : indebtedness, infrastructure development, industrialization, climate change.

The question of funding for the deployment of regional integration projects and more broadly the development of States was raised. In this area, Bruno Le Maire defended the various initiatives launched or supported by France, in particular the restructuring of international financial institutions and development banks.

The financial needs of developing countries are growing. The tightening of financing conditions weakens these economies. We must therefore find new methods of financing, reform international financing and reform the World Bank. All of this is one of the absolutely major issues at the summit for a new financial pact.

????LIVE | Concluding speech of the Economic and Monetary Community of Central Africa by @‌BrunoLeMaire and Jean-Baptiste Ondaye ???? https://t.co/g7tjc2yqgZ

– Ministry of Economy and Finance (@Economie_Gouv) April 25, 2023

Other avenues put forward: better mobilization of Special Drawing Rights or increased private sector investment, etc.

Ministers stressed the need to mobilize new sources of funding from the international community and the private sector. The CEMAC ministers also mentioned the difficulties of their public finances in the global economic context. Jean-Baptiste Ondaye, Congolese Minister of Economy, Chairman of the Ministerial Committee of the Monetary Union of Central Africa reported the questions on this subject.

Is the sanction mechanism provided for in the event of non-compliance with the criteria still relevant in the current environment? The question has been asked by various speakers. How can it evolve with the full support of the Member States? Exceptional economic circumstances – COVID-19, Russian-Ukrainian war, inflation – largely explain the non-compliance with the criteria and the significant investment needs. But the most important thing is to see the trend which shows a gradual return towards compliance with the criteria by 2025-2026.

In a press release published Tuesday evening, Bercy affirms that the participants ” underlined that CEMAC’s regional integration and its monetary cooperation with France (…) also contribute to strengthening the economies of the sub-region and partially preserving them from inflation. ».

Digital currency, the fight against money laundering and the financing of terrorism, the diversification of economies, the reconstitution of financial savings and the reform of subsidies to free up budgetary room for maneuver were also discussed. The reflection will continue next June at the summit for a new financial pact.

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