The Central African Republic’s economy is facing stagnation, with a modest GDP growth forecast of 0.7 per cent in 2024, largely due to ongoing fuel shortages and power outages in Bangui.
However, despite these challenges, the World Bank’s latest report suggests that the country’s economy may recover, with an average growth of 1.6 per cent projected for 2025-2026. The report further forecasts a decrease in inflation to 1.5 per cent in 2024, stabilising near the 3 per cent mark by 2025-2026. Nevertheless, poverty remains widespread, with 65.7 per cent of the population living below the international poverty line of $2.15 per day (2017 PPP).
While the security situation has improved in recent months, sporadic violence and tensions continue to undermine short-term growth prospects and economic stability.
The World Bank also highlights the potential of the country’s forests as an economic resource and a provider of global environmental services. However, forests in the Congo Basin, including those in the Central African Republic, face threats from various forms of human activity.
Moreover, the report recommends several fiscal instruments, including environmental taxes, tradable permits, and biodiversity offsets to support sustainable forest management. It emphasises the need to combine these measures with improved forest governance, law enforcement, and enhanced surveillance and transparency.
The report also calls for strengthened regional cooperation within the Congo Basin, harmonised regulations, and better alignment of fiscal policies on forestry. It underscores the importance of increased institutional capacity and greater international financing, urging global recognition of forest conservation as a critical public good essential for regulating the climate and protecting biodiversity.
Attribution: World Bank
Subediting: M. S. Salama