The second Monetary Policy Committee for the year held in Yaounde Friday July 19, 2013.

The Monetary Policy Committee (CPM) of the Bank of Central African States (BEAC) is projecting a 6 per cent economic growth rate for the Central African Economic and Monetary Community (CEMAC) in 2014 to 2016. The Governor of BEAC, Lucas Abaga Nchama, who is also the Statutory President of the CPM made the disclosure last Friday July 19 during a press briefing that was preceded by the second ordinary session of the committee for 2013 at the BEAC’s headquarters in Yaounde.

The promising macroeconomic perspectives, Mr Abaga Nchama said, is based on the rhythm with which growth-induced projects are being executed in member countries. He said many giant projects in the mining, energy and infrastructure sectors are off the ground and raising hopes that upon completion, they would be able to fire the economies of the respective countries to boom.

As earlier projected, CPM confirmed a recession in the economic growth in the sub-region from 6.6 per cent in 2012 to current 3.2 per cent in 2013. CPM’s Statutory President said the drop, although not dangerous, is as a result of reduction in petroleum production which is the main export product of the sub-region and a reduction in public investments in CEMAC member countries. Initially, economic growth in the sub-region was projected at 5.8 per cent IN 2013 but during the first session of CPM for the year which held on March 22, 2013 the Statutory President said only 4.1 per cent economic growth rate could be feasible this year.

While enjoining member countries to hold tight to existing reforms as well as formulate new ones that can engender sustainable socio-economic growth, CPM in its second session also resolved to reduce by 50 points the interest rates on calls for tenders applicable for banks. In turn, banks are expected to reduce interest rates on the business class that are susceptible to boosting the economy. It also adopted a revised monetary and loan objectives of the six member States as proposed by the National Monetary and Financial Committees  for the fourth quarter of 2013 and first quarter of 2014 compatible with the different macro-economic standings of the respective countries.

Assisted in the Friday’s press conference by the BEAC’s Director General of Studies, Finances and International Relations, Joachim Lema Okili, CPM’s Statutory President prayed member countries not to relent their efforts in improving their business climate so that they can attract viable and sustainable direct foreign investors with whom they can carry their economies to desired emergence. “The bank is continually reflecting on how it can better serve the States and their population,” Lucas Abaga Nchama noted.