(Ecofin Agency) – The French Development Agency is releasing budget support to support the Central African government’s economic reforms and support social spending. The loan is part of the resumption of financial cooperation between Paris and Bangui, after the suspension of French aid in 2021.
The French Development Agency (AFD) has granted a budget support loan of 25 million euros to the Central African Republic. This financing, which strengthens bilateral cooperation between Paris and Bangui, aims to support reforms to strengthen the governance of public finances, macroeconomic stability, and meet the urgent needs of the populations of the Central African country.
The loan must in fact support essential social sectors by financing key needs such as the supply of vaccines and medicines. Part will be used to repay domestic debts and pay salary arrears in the public service.
The funding will be paid in two installments. First €15 million upon signature of the agreement, and then €10 million by the end of 2025, subject to validation of the fifth review of the International Monetary Fund program, as part of an adjustment program carried out in the CAR.
A resumption of French support after the 2021 freeze
This financing follows budgetary aid of 10 million euros granted in November 2024, again by AFD. This disbursement was then paid directly into the single account of the Central African public treasury to support the 2025 budget year.
5 million were intended for the Ministry of Finance and Budget to modernize tax management and accelerate the digitalization of administrations. 3 million was to be used to reduce payment arrears in the education sector, and the remaining 2 million was to be devoted to preparing for national elections, in addition to the national budget.
This resumption of French financial support illustrates a gradual normalization of relations between Paris and Bangui. France had in fact suspended its aid to the CAR in 2021, following an anti-French campaign in the country. Since 2024, AFD has reconnected with the Central African Republic to support budgetary consolidation and the modernization of public administration.
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Edited by: Feriol Bewa