The World Bank has urged urgent structural reforms in the Central African Republic (CAR) to strengthen public finances, improve economic stability, and support long-term growth and job creation.
A new report titled “Strengthening the Transparency, Sustainability and Efficiency of the Public Sector” highlights that despite recent improvements in security and public finance management, CAR continues to face deep structural challenges that limit its development capacity.
According to the report, domestic revenue collection remains below 10% of GDP, while the public wage bill consumes up to 73% of government resources, leaving very limited fiscal space for investment in infrastructure, education, and health. The country also remains heavily dependent on external aid, with insufficient investment in key human development sectors.
The World Bank emphasized that strengthening domestic revenue mobilization and improving public financial management could help CAR create the fiscal space needed to invest in essential services and build a more inclusive economy.
The report identifies significant untapped potential in sectors such as forestry and mining, along with opportunities to modernize tax administration and improve transparency in public governance.
It proposes a reform agenda built around five key priorities: expanding the tax base and digitizing tax systems, improving cash and debt management, strengthening transparency and accountability in procurement and public enterprises, redirecting public spending toward priority social sectors, and improving coordination of international assistance.
World Bank officials noted that better fiscal management could reduce CAR’s reliance on external aid over time, while enabling more sustainable investment in development priorities and creating conditions for private sector growth and job creation.
The findings underscore that stronger institutions and more efficient public spending are essential for unlocking long-term economic stability and development in the Central African Republic.
