Central African Republic Prioritizes Fiscal Reforms for Sustainable Development and Job Creation

Bangui—The World Bank today released a new report urging urgent structural reforms in the Central African Republic’s (CAR) public finance sector to foster macroeconomic stability and catalyze long-term growth.

The review, titled *Strengthening the Transparency, Sustainability and Efficiency of the Public Sector*, underscores that while improved security and incremental public finance reforms have created a “window of opportunity,” deep structural vulnerabilities persist. Domestic revenue collection remains stagnant at under 10% of GDP, with the wage bill consuming 73% of public resources, stifling investment in critical areas. Overreliance on external aid and underfunded social sectors—particularly education and health—further undermine sustainable development.

“By enhancing domestic revenue mobilization and public financial management, CAR can secure the fiscal space necessary to invest in human capital, public services, and inclusive growth,” said Cheick Fantamady Kante, World Bank Country Director for CAR and neighboring nations.

The report identifies untapped revenue potential in forestry, mining, and tax administration modernization. It outlines a five-point reform agenda:

• Broaden the tax base and digitize tax systems
• Strengthen cash and debt management to enforce fiscal discipline
• Enhance transparency in public procurement and enterprise governance
• Reallocate spending toward social sectors
• Improve coordination of international aid

By prioritizing fiscal reforms and efficient resource allocation, CAR can reduce aid dependency, finance development priorities, and create conditions for private-sector growth.

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