World Bank Sees Recovery in CAR Economy, Calls for Reforms and Investments

After two years of sluggish performance, the Central African Republic (CAR) is beginning to show signs of recovery, according to the eighth edition of the World Bank’s Economic Update for the country. Growth in 2024 is estimated at 1.5 percent, supported mainly by steady agricultural production, progress in agribusiness, and a stronger services sector boosted by improved energy supply toward the end of the year.

A Fragile Recovery

While the outlook is cautiously optimistic, the World Bank stressed that the recovery remains fragile. The report warns of several risks that could derail momentum, including:

• Persistent fuel shortages and high energy costs.

• A fragile security environment that continues to disrupt economic activity.

• Potential instability linked to the upcoming elections.

• Global financial market tightening that could limit access to capital.

These risks, the report notes, underscore the urgency for the government to accelerate reforms that can diversify growth and strengthen resilience.

Outlook Through 2027

The World Bank projects that CAR’s economy will expand by 2.7 percent in 2025, with growth potentially doubling by 2027 if authorities sustain reforms and step up investments in:

• Energy supply to reduce bottlenecks and power shortages.

• Agribusiness development to build on the country’s agricultural potential.

• Private services to encourage entrepreneurship and employment.

Such measures could help stabilize the economy, create jobs, and reduce poverty.

Need for Resource Mobilization

World Bank officials highlighted the importance of increasing domestic revenue.

“There is an urgent need to pursue resource mobilization, particularly through better taxation of the fuel and mining sectors, as well as modernization of the tax system for taxpayers through the E-tax project,” said Guido Rurangwa, World Bank Resident Representative for CAR.

Reforms to improve tax collection efficiency and transparency are seen as vital to reduce dependence on external aid and provide funding for critical infrastructure.

Harnessing Wealth for Inclusive Growth

The report emphasizes the multidimensional nature of CAR’s wealth, including its natural resources, human capital, and produced assets. To unlock this wealth for inclusive and sustainable growth, the World Bank proposes strategies such as:

• Developing natural resources responsibly to generate revenue without environmental damage.

• Promoting ecotourism, leveraging the country’s biodiversity and natural landscapes.

• Strengthening agricultural productivity and modernizing farming practices.

• Ensuring sustainable grazing land management to support livestock production.

• Protecting key ecosystems critical for long-term environmental balance.

“The Central African Republic could maximize its total wealth by better developing its resources, ecotourism, improving its agriculture, and ensuring optimal grazing land management, while ensuring the protection of key ecosystems,” said Robert Utz, World Bank Lead Economist.

Building a Resilient Future

The Economic Update underscores that CAR’s path to sustainable growth depends on:

• Political stability to ensure reforms are implemented.

• Infrastructure investments in energy, transport, and digital systems.

• Strengthening institutions to improve governance and fight corruption.

• Human capital development, particularly in health and education, to unlock long-term productivity.

If reforms are sustained and investments aligned with the country’s potential, the CAR could transition from fragile recovery to robust growth, creating opportunities for its citizens and laying the foundation for greater resilience against future shocks.