Consolidation and Social Inclusion Development Program: Supplemental Financing

closed

Closed

The development objective of Consolidation and Social Inclusion Development Program valued at US100 million dollars, is to support the consolidation of basic fiscal management and social inclusion. While supporting the same objective, the proposed SF operation responds to the effects of the Coronavirus disease (COVID-19) pandemic on CAR’s economy. The exponential rise of the COVID-19 pandemic has swiftly dampened global economic activity, which is set to decline on a scale not seen since the Great Depression. The pandemic has adversely impacted economic activity in the Central African Economic and Monetary Community (Communaute Economique et Monétaire de l’Afrique Centrale, CEMAC) region and growth is projected to decline to -1.7 percent. In response, the Government has adopted several measures to contain the spread of the virus. The Government developed a preparedness and response plan designed to strengthen coordination between the various sectors, improve the management and lab capacities, step up prevention measures, improve medical treatment of confirmed cases, and improve communications. The measures in the Health Response Plan will be complemented by additional activities the Government is considering strengthening social protection, support private sector and economic recovery, and enhance justice and security. On the fiscal front, the Government will rationalize some non-priority expenditures, but the fiscal impact will still be significant given the need to maintain basic services and security, and to target the pandemic, while domestic revenues are expected to fall sharply. In turn, the regional central bank, Banque des Etats de l’Afrique Centrale (BEAC), has taken measures to provide monetary stimulus to the CEMAC zone and reduce risk factors weighing on monetary and financial stability. The authorities are also preparing a study on the socioeconomic impacts of COVID-19.

World Bank Group

Project

Road, Hospital, Government, Education, Automotive