Hervé Ndoba, Central African Minister of Finance and Budget, was in Douala on Tuesday April 9, 2024 at the head of a large delegation, as part of a prospecting operation for CAR treasury securities. The country intends to raise 200 billion CFA francs on the CEMAC sub-regional capital market. This strategy will enable the country, which is gradually recovering from a crisis situation, to engage in a more controlled debt process, with less volatile rates.
The aim of the mission led by the Central African Minister of Finance and Budget, Hervé Ndoba, to Douala on April 9, 2024, was to present CAR treasury securities to investors in the CEMAC sub-region. The operation aims to raise 200 billion CFA francs on the BEAC capital market in bonds and bills. The proceeds will be used to finance the country’s cash flow requirements in 2024, fund priority projects included in the National Development Plan, and pay off part of the country’s domestic debt.
“For fiscal year 2024, the financing requirement expressed in the Finance Act rises from FCFA 100 billion in 2023 to FCFA 200 billion in 2024. Accordingly, the State intends to raise FCFA 100 billion on the treasury market through assimilable treasury bills and bonds. The mobilization of a further FCFA 100 billion in the form of a bond issue on the financial market will depend on how well the debt and solvency parameters are met.”
Hervé Ndoba, Minister of Finance and Budget – Central African republic
The financial rating agency Bloomfield Investment Corporation has awarded the Central African Republic a BB+ rating as an index of financial credibility. This rating reflects an improvement in the political and economic situation, with a reliable capacity for repayment on the capital market. This situation is the result of the reforms undertaken so far to improve living conditions in this Central African country. According to IMF forecasts, CAR’s economic growth should rise to 1.5% in 2024 and 2.5% in 2025.
“In addition to public finance reforms, the government has taken major steps to improve the business climate in order to attract national and international investment and combat corruption. The pursuit of these reforms should also extend to strengthening the institutions working for good governance, notably the Cour des Comptes, whose resources are still limited, the Agence Nationale d’Investigation Financière and the Haute Autorité Chargée de la Bonne Gouvernance.”
Hervé Ndoba, Minister of Finance and Budget – Central African republic
Established in 2008 by the CEMAC authorities, the Treasury securities market is today one of the main sources of financing for the countries of the sub-region, with the particular merit of fostering healthier indebtedness and promoting sub-regional integration. In a decade on this market, CAR has never recorded a repayment default..
