(Business in Cameroon) – The Central African States Bank (BEAC) and the Development Bank of Central African States (Bdeac) are joining forces to support projects aimed at promoting import substitution within the region. This commitment was shared by BEAC Governor Yvon Sana Bangui on September 23, 2024, in Yaoundé.
According to the governor, both institutions agreed on this need during a working session held on September 11, 2024, in the Cameroonian capital. He emphasized that BEAC, which holds a majority stake in Bdeac, is eager to provide the financial resources necessary for Bdeac to fund more projects within the CEMAC region. The goal is to enhance local industrial production and cut down on heavy imports that strain the economy.
Despite efforts to implement import substitution policies in some CEMAC countries, the reality is that imports continue to surge. This trend has led to a concerning forecast: CEMAC’s foreign exchange reserves are expected to drop by 5% in 2024 compared to the previous year. These reserves, which are crucial for ensuring the region can import essential goods and services, now stand at a level that covers only CFA4.5 months of imports, down from CFA4.8 months in 2023.
Reflecting on the past, the last time the central bank partnered with Bdeac to boost investment in CEMAC was back in 2016. On January 19 of that year, both institutions signed a series of agreements to strengthen Bdeac’s ability to finance development projects across the region. At that time, they allocated CFA400 billion to support these initiatives.
