Consolidating foreign exchange reserves tops CEMAC concerns.

In a release issued on January 25, at the end of their three-day gathering, they admitted that governments of member countries are facing macroeconomic tensions, resulting to rapid depletion of foreign reserves, a development which they agreed, constitutes a significant macroeconomic risk for the region.

They then agreed to adopt a strategy anchored on continuous effort to consolidate reserves by exercising financial discipline, adopting monetary stabilisation measures, and strengthening cooperation with the International Monetary Fund, IMF.

The cooperation, members hoped, would guide recovery measures with aim to stabilise external reserves at a level deemed sustainable and in line with member state´s continuing economic programmes with the IMF.

The leaders disclosed that a document prepared by financial institutions in the community showed a marked deterioration in external reserves during the 2025 financial year. 

Stating further that between March and November 2025, foreign reserves fell by 1,335.7 billion FCFA. This, they stated, erased in a few months the gains recorded at the end of 2024 and in the first quarter of 2025.

According to calculations by the Bank of Central African States, BEAC, the contraction corresponds to nearly a month’s imports of goods and services. 

The leaders, however, downplayed the impending danger stating that compared to the currency crises that plagued the sub region in 1993 and 2016, the observed trend merely weakens the external anchoring of the franc CFA, though it reignites questions about the sustainability of the current macroeconomic framework.

Country specific measures

The Heads of State agreed that overall sustainable financial and economic stabilisation of the zone depends on each member country adopting a combination of measures. 

They mentioned increased budgetary discipline, administrative reforms and better repatriation of export earnings, particularly in the extractive sector.

“This orientation,”, they stated, “confirms the centrality of the IMF as a financial partner, and a guarantor of macroeconomic credibility with international markets and donors”.

Compared to the Economic Community of West African States, WAEMU, they stated that the latter continues to record higher growth in Gross Domestic Prodcut, GDP, despite facing similar macroeconomic challenges.

“Over the past five years, average GDP growth has been limited to 2.1%, according to the IMF’s World Economic Outlook published in October 2024,” the final document made public at the end of their meeting showed. 

As the leaders insisted that this rate is lower than the regional population growth, estimated at around 3% per year, and significantly below the performance recorded in the West African Economic and Monetary Community, or in the whole of sub-Saharan Africa.

They expressed dismay that this insufficient dynamic, mechanically reduces the CEMAC zone´s capacity to generate sustainable external impulses, which are essential for the soundness of the exchange rate regime and the replenishment of reserves.

Resurgence of budget deficits

The regional leaders deplored what they categorised as a return of budget deficits across member states, a situation they attributed to sluggish growth in economies of member states. 

“This sluggish growth is compounded by a progressive deterioration of public finances. After an aggregate budget surplus of 0.3% of GDP in 2023, the CEMAC region shifted to a deficit of 1.6% in 2024, then to an estimated deficit of 1.4% in 2025, according to consolidated data from community institutions,” they stated. 

They blamed the development on expansionary fiscal policies adopted by member States, as well as insufficient mobilisation of tax revenues outside the oil sector. 

The leaders also projected that without rapid adjustment, the budget deficit could reach 3.1% of GDP during this budgetary year, 2026. While the current account deficit could also widen to 1.5% of GDP by end of year.

This article was first published in The Guardian Post Edition No:3687 of Wednesday January 28, 2026