Economy

BEAC reports drop in growth, rise in inflation.

by Maxcel Fokwen
07 Apr 2026 20:47
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Yvan Sana Bangui: BEAC Governor

The Bank of Central African States, BEAC, has reported a decline in growth across the Central African Economic and Monetary Community, CEMAC, from 3.6 percent in 2025 to 2.9 percent in 2026.
The drop in growth was made public at the end of the First Ordinary Session of the Monetary Policy Committee, MPC, of BEAC, on Thursday, April 2 in Yaounde.

The Governor of BEAC, Yvon Sana Bangui, chaired deliberations. The Committee indicated that inflationary pressure has increased to 2.3 percent compared to 2.1 percent in 2025.

In a release which sanctioned the meeting, the MPC indicated that budgetary deficit of the Public Investment Budget, BIP, outside gifts of 4.8 percent in 2025 now at 2.2 percent.

In terms of current account, the Committee reported that, the situation is at 5.2 percent of Public Investment Budget in 2026 compared to 2.9 percent of Public Investment Budget, PIB as at the close of 2025.

The Committee also projected that by the close of 2026, there will be increase in foreign reserve of 11.1 percent.

Foreign exchange reserves, in terms of covering importation of good and services, it said, would cover 4.52 months in 2026 as against 4.22 months last year.

In the Sana Bangui-signed release, the CPM noted that, the cost of covering external trade will stabilise at 68.0 percent this year as against 64.9 percent in 2025.

On the global scene, the CPM referenced the global economic outlook released by the International Monetary Fund, IMF. The IMF projections released in January this year had global economic growth at 3.3 percent just like in 2025.

The projections, the CPM noted, is based on the uncertain global trends of the time especially the United States-Israeli war against Iran.

Based on the sub regional economic and global outlook, the MPC decided to maintain key interest rates unchanged.

The Tender Interest Rate which was changed from 4.50 percent to 4.75 percent as at the close of 2025 was maintained.

The Marginal Lending Rate remains at 6.25 percent. This is the minimum below which a bank is not permitted to lend money.

The Deposit Rate which is the interest financial institutions pay on cash deposit of account holders stands at zero percent.

The Compulsory Reserve Coefficients, the Committee also said, will stay at 7.00% on sight liabilities and 4.50% on Term Liabilities was also maintained. This is the percentage of a bank’s deposit that must be kept as reserve.

This article was first published in The Guardian Post Edition No:3752 of Monday April 06, 2026