Economic Community of Central African States (CEMAC)

 

The CEMAC was formed in the 1990s to provide a union in central Africa between Cameroon, Central Africa Republic, Chad, Equatorial Guinea, Gabon, and the Republic of the Congo.

The Central Bank of African States was formed in 1972 with the CFA Franc which is now being transitioned to the ECO – pegged to the Euro. 

The CEMAC countries have a total population of 55 million people.

The world bank reports on CEMAC’s objectives and growth.  

“Different governance indicators all raise serious issues for the CEMAC countries all of which are ranked in the bottom half or even the bottom third of the ranked countries.”

Five of these six countries are oil exporters and oil has been a key factor in CEMAC development. These economies are diversifying now.

What is critical is building a digital infrastructure and the EIB (European Central Bank) has published a document addressing digitalization in Africa –

“Digitalisation contributes to the 2030 Agenda for Sustainable Development by supporting many of the UN Sustainable Development Goals.”

Digital access not only provides greater economic freedom, but also enables digital currencies move one step nearer to being used. Hence financial inclusion is closely linked to digital inclusion.

The OECD reports on some of these digitalization issues.

 

OECD Report

BANQUE DES ÉTATS DE L’AFRIQUE CENTRALE (BEAC)

The IMF has reported on the uncertain nature of the CEMAC inflation and the need for continued IMF support with a tight monetary policy.

The IMF welcomed BEAC’s resolve to continue to refrain from extending any type of direct monetary financing to its member states.

The IMF has underlined the need to make significant structural change in the CEMAC and for the BEAC to address non-performing loans.

The IMF determines that 6.6 billion Euro is needed in external fund support for CEMAC.

The Central African
Banking Commission (COBAC) has a role to play.

Lending

The Groupement Interbancaire Monétique de l’Afrique Centrale (GIMAC)
should continue working at achieving the full interoperability of mobile and digital
payments in the region (CEMAC).

 

Pan African Banks

The Ecobank has been evident in Cameroon

Private banks are a means to improve CEMAC’s objectives.

The Ecobank announced innovation.

 

CBDCs

The CFA Franc is used in CEMAC countries and this is pegged to the Euro.

As the ECB advances the CBDC case, the BEAC will have more opportunities to use CBDCs.

 

 

 

UnionPay

With the GIMAC a payment system is being rolled out for the CEMAC region.

Announcement

 

 

 

By cryptorocks_editor

Editor.