What You Need to Know
The Central African Economic and Monetary Community is facing a severe funding crisis due to significant financial arrears from member states. A recent report revealed that unpaid dues amount to 263 billion CFA francs, highlighting the urgent need for financial reform and improved regional cooperation to address economic challenges.
Africa-Press. The Central African Economic and Monetary Community is facing a severe funding crisis due to significant financial arrears from member states, while economic and administrative challenges dominate the region.
This week, the general report on the community’s operations for 2025 was presented to its parliament in Malabo, including details from an internal memorandum issued on February 5, which announced the commission’s suspension of all activities due to a severe lack of financial resources.
The report reveals a shocking figure of 263 billion CFA francs, approximately 400 million euros, representing the arrears owed by member states for the Community Integration Tax (CIT), which is the primary source of funding for the community.
Despite its importance, the report indicates that this tax is still collected at an extremely low rate, with collection rates not exceeding 60% last year. While Gabon and Cameroon paid amounts exceeding the minimum stipulated in the regulations, the other member states have failed to make full payments.
Interpretations of the crisis vary, with some linking it to a lack of solidarity within the group, while others attribute it to the difficult financial situations faced by the countries in the region.
Djimandoum Mandikour, the former director of the Central African States Bank, asserts that the roots of the crisis stem from internal economic challenges, which aligns with the latest index from the World Bank, indicating that public spending in the region’s countries is increasing at a rate that exceeds revenue growth.
World Bank experts warn that this financial dynamic has exacerbated public debt levels, which have surpassed 70% in both Congo and Gabon, reflecting the mounting pressures on government budgets. These pressures coincide with rising poverty rates, as more than one-third of the region’s population lives in extreme poverty, earning less than 3 dollars a day.
In an effort to halt this economic decline, the Central African Economic and Monetary Community has renewed its call for member states to improve the movement of goods and people within the region and to address non-tariff barriers that continue to hinder intra-regional trade. Additionally, there is a push to develop cross-border infrastructure, as these measures are seen as essential for restoring financial balance and enhancing economic integration.
The Central African Economic and Monetary Community (CEMAC) was established to promote economic integration and stability among its member states. However, over the years, the region has faced numerous economic challenges, including high public debt and low revenue collection. The current funding crisis reflects deeper issues within the region’s economies, exacerbated by external pressures and internal governance challenges.
