Page 4 - AfrOil Week 39 2022

AfrOil COMMENTARY AfrOil

(Photo: BEAC)
The BEAC and CEMAC’s major

monetary and economic mistakes

This hydrocarbon-dependent region of Africa will have much higher hopes of economic diversification if

the BEAC works to mitigate the damage caused by its foreign exchange policies, writes Leoncio Amada

THE global health and economic crisis caused countries have been talking about economic
by the COVID-19 pandemic impacted the eco- diversification programmes that have not been
WHAT: nomic foundations of the CEMAC zone in an as successful as we all hoped.
Efforts to diversify the unprecedented way due to the limited integra- The reason: excellent economic diversifica-
economies of this hydro- tion and economic diversification of the region. tion plans and programs have been prepared on
carbon-dependent region The six countries of the union – Cameroon, paper, but the private sector’s development has
of Africa have been less Equatorial Guinea, Gabon, Chad, the Central not kept pace.
successful than hoped.
African Republic and the Republic of Congo – One cannot speak of diversification and
share a regional economy dominated mainly by economic growth in the absence of a strong
WHY: hydrocarbons, which represent 80% of export national or regional business fabric that gener-
BEAC’s forex policy
have helped discourage revenues and 75% of tax revenues, according to ates employment and business opportunities for
private enterprise. the World Bank and the International Monetary nationals and foreigners.
Fund. In short, the private sector must have the
WHAT NEXT: From the six member states, only Cameroon weight it deserves; it must be the thermometer
The bank’s governor will is a net importer of oil. However, Chad, Con- with which the temperature and vigor of eco-
hear different points of go-Brazzaville, Equatorial Guinea and Gabon nomic activity is measured. Above all, it must
view if he attends the are more dependent on oil than Cameroon. be the master of the orchestra in the design and
AEW 2022 conference. articulation of any macroeconomic programme
Waiting for diversification in the medium and long term for it to have a
For decades, governments from CEMAC minimum chance of prospering.

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