EU supports Central African Republic with €54 million to limit socio-economic risks

As part of the European Union’s response to the COVID-19 crisis in Africa, the European Commission has decided to grant €54 million to the Central African Republic to help the government shore up public expenditure negatively affected by the fight against the virus.

European Commissioner for International Partnerships, Jutta Urpilainen, said: ‘The European Union has long stood alongside the Central African Republic to help the country overcome the crises it has suffered. This additional budgetary support aims to help the country address the socio-economic risks associated with the health crisis and contribute to the gradual restoration of State authority over the country, which is essential for the country’s economic and social development.’

Slowing the spread of the COVID-19 virus means that the Central African government must use part of its resources for preventive health measures, which significantly increases pressure on public finances. The EU is, therefore, intervening with two budget support programmes going towards consolidating the State (€45 million) and reforming the security and governance sector (€9 million).

The new programme for consolidating the State (PACAE-RCA II) will consolidate economic governance in the Central African Republic and increase its fiscal space in 2020-21, by enhancing dialogue with the government in terms of the macroeconomic framework, public-finance reform, and the education and health sectors.

Budgetary strengthening under the ongoing Support Programme for Reforming the Security and Governance Sectors will ensure continued European support for a return to peace and security. It is in addition to the initial allocation of €38 million to meet the funding needs for national security and justice policies and gradually to redeploy and resize the Central African Republic’s domestic security forces and judiciary.

In order to get help to the government as quickly as possible, an advance disbursement of €23.5 million will be made in the coming weeks.

Other measures to support the COVID-19 response in the Central African Republic

This financial support is supplemented by an immediate reallocation of €6.5 million from ongoing European Development Fund (EDF) programmes and the Bêkou Trust Fund to help the water, sanitation and health (WASH) sector. Water fountains and water supply sources have already been built in Bangui and Paoua and the distribution of medical equipment and local production of masks have been stepped up (160,000 units).

On 8 May, the Central African Republic benefited from the first ‘Team Europe’ humanitarian air bridge bringing in health equipment and humanitarian staff to support the fight against the pandemic in the country.

Original source: European Commission
Published on 18 June 2020