of CEMACinstitutions and agreements. In this regard, they call on the Fund and the international community for an adequate technical assistance to help them build the capacity needed to deal with the important challenges facing the region including fighting poverty, and enhancing the regional integration process.
Moreover, in their efforts to diversify the non oil sector in the region, the CEMAC authorities intend to host in collaboration with the Fund a workshop on the sources of growth in member countries.
3 – Strengthening Regional Surveillance
an emerging market by 2025. In addition, efforts to remove barriers to internal and external trade, address labor market mobility issues will be pursued at both national and regional levels. These reforms together with improved governance and business environment will help increase the region competitiveness and enhance growth and economic diversification.
Under the technical assistance of the Fund and other partners including the World Bank, significant progress has been made in strengthening the capacities of CEMACinstitutions including
authorities to strengthen CEMACinstitutions and work together more closely . Several institutions lack appropriate human and financial resources and countries do not coordinate policies with significant regional impact (e.g., public investment programs, taxation). Efficient regional institutions could support efforts to diversify growth, improve budget management, and promote financial sector development. The CEMAC Commission should work with national governments to improve the business environment and to promote private investment and economic diversification. Similarly
Regional growth weakened in 2013 due to a fall in oil production in most countries. GDP growth is expected to pick-up in 2014 due to the recovery of oil production and the continuation of the implementation of public investment plans in most of CEMAC countries. Despite large spending of oil wealth during the last years, poverty, income inequality and unemployment remain high. The business climate is one of the most challenging in Africa. The region’s most pressing challenge is to implement structural reforms to promote sustainable and inclusive growth while adopting macro policies to preserve financial stability, ensure an efficient use of oil revenues and increase resilience to shocks.
This paper provides detailed assessment of the Central African Economic and Monetary Community's (CEMAC’s) financial system. Over the past decade, primarily as a result of high oil prices, CEMAC achieved robust economic growth, although lower than the SSA average, but insufficient to significantly reduce poverty. A poor business climate and weak governance are hampering financial sector development and its contribution to financing investments. The weakness of regional integration also limits the growth potential. The drop in oil prices by about 60 percent between June 2014 and January 2015 has had a large impact on CEMAC countries’ macroeconomic performance.
sector will be further encouraged. The authorities are also hopeful that the implementation of the regional business climate observatory will help make significant inroads in the process of regional integration.
6. Strengthening CEMACInstitutions
In order to achieve the CEMAC objectives, the authorities are committed to further strengthen the regional institutions’ capacity. Good progress has been made in implementing the BEAC’s operational reform plan. The authorities are also developing a human resources management plan and a new employee charter. In
Macrofinancial linkages and the financial sector . Important links between the public and the banking sectors require (i) the non-accumulation of arrears to ensure the stability of the banking system; and (ii) a strong microprudential framework to sustain macrofinancial stability. Progress has been made in implementing some of the 2015 FSAP recommendations.
Regional integration and convergence framework . CEMACinstitutions continue to face internal constraints, which undermine their capacity to support regional integration and growth. The newly approved convergence
5. Indicators of Public and Publicly Guaranteed External Debt under Alternatives Scenarios, 2015–35
1. External Debt Sustainability Framework, Baseline Scenario, 2012–35
2a. Sensitivity Analysis for Key Indicators of Public and Publicly Graranteed External Debt, 2015–35
2b. Sensitivity Analysis for Key Indicators of Public and Publicly Guaranteed External Debt, 2015–35
CEMAC—INSTITUTIONS AND MEDIUM-TERM FISCAL FRAMEWORK
A. Institutional Setup
B. Macroeconomic Policy Coordination
C. CEMAC’s Fiscal Surveillance Framework