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In the aftermath of an international financial crisis which has not spared the African continent, the economic recovery observed in late 2010 in the CEMAC zone is expected to
strengthen in 2011, according to the BEAC, in its last note on the economic conditions.

 
The economic outlooks across the CEMAC zone (Economic and Monetary Community of Central Africa) in 2011 are encouraging. Beyond the differences from one country to another, with growth rates ranging between 3% and 9%, all countries of this economic and monetary area gradually emerge from a difficult environment inherent to the financial crisis, which has shaken the global economy over the past two years. The macroeconomic data, which pass gradually from red to green, will only be visible to people when this announced improvement will be felt in their daily basket.

Thus it was decided to drop twenty-five basis points from
the rate of the BEAC on both interest rates and on those of tenders.

During its meeting in Douala on 10th December, 2010, as part of its fourth and final session of the year, the Monetary Policy Committee (MPC) of the Bank of Central African States (BEAC) noted that 2010 should end with a sharp upturn in economic activity in the sub-region through an international favorable environment due to increased public and private investment and buoyant non-oil sector. And it sees mainly good economic prospects in 2011 for the CEMAC countries.

A good economic orientation

Two years after the international economic conjuncture that led to deceleration of growth, the current recovery is expected to strengthen in the coming months, because "for 2011, this correct orientation of the economy is expected to continue and even increase, related to a sharp increase in oil production and the initiation of development projects." Thus, growth was 4% in 2010 and 4.8% in 2011 against 2.1% in 2009.
Moreover, the inflationary pressures will ease to 1.8% in 2011 against 2.1% in 2010. With this in mind, the BEAC notes that public and external accounts should also continue their recovery, while the coverage taxes outside of the currency should remain around 100%.

In order to consolidate the recovery of economic activity in the sub-region, the CPM stressed the need for continued implementation of tight fiscal and monetary policy in the context of economic and financial programs of the States. Given all these analyses and examination of risk factors likely to affect monetary stability, the CEMAC countries have decided to maintain unchanged the conditions for intervention of BEAC applied to banks, to keep unchanged the rates for public interest on investments, as will remain unchanged the required reserves ratios and the rate of pay for these reserves.

The improvement depends on the return to global growth, on the one hand, the increased production of oil and gas, the launch of major projects for the exploitation of minerals and the increased construction of public infrastructure in the member States, on the other hand.

A drop of 25 points in the rate of the BEAC
In this context, the macroeconomic outlook over the next three years suggest an increase in activity of around 4.8%, "although it is below the capabilities of countries in the sub-region," noted the Central Bank. Another important measure of CPM is probably the decision to proceed with the redevelopment of certain provisions to strengthen the economic recovery which remains still fragile.

Thus it was decided to drop twenty-five basis points from the rate of the BEAC on both interest rates and on those of tenders. Similarly, interest rates on investment banks will experience a decrease of twenty-five points, while the basic rate on public investment will decline by twenty points. The mechanism of stabilization of fiscal revenues will drop twenty-five basis points for special deposits. Other rates, as well as reserve requirements remain unchanged.
Achille Mbog Pibasso

Rates and coefficients in effect since July 2010

A - Lending Rates
Interest rate tenders (TIAO) 4% instead of 4.25%
Interest rates on reverse repo (TIPP) 5.75 instead of 6%
Penalty rates of banks (TPB) 10%
Advance Rate treasure within statutory limits 4% instead of 4.25%
Advance Rate treasure beyond the statutory 10% limits

B - Creditor rates
Investments at seven days 0.60% instead of 0.85%
Investments at 28 days 0.60% plus 1/16th point
Investments at 84 days 0.60% plus 2/16th point
Source BEAC