Digital finance in the Central African Republic (1): A poor country sitting on a treasure
In the Central African Republic, digital finance is an opportunity to transform the resources of the subsoil into investments necessary for the integral and sustainable development of the country and the populations. First episode: a poor country sitting on a treasure.
May 5, 2017. The German newspaper Die Zeit publishes the article "Central African Republic: a poor country sitting on a treasure" [2] which analyzes the causes of underdevelopment in this country. If the local knowledge of the country validates the paradox, for all that it does not arise from an immutable fatality. Beyond the many international aids, digital finance can offer the authorities opportunities to transform the geological potential of the country into resources likely to get it out of the trap of underdevelopment. First episode: Feedback on endemic poverty and a potential treasure.
In the Central African Republic, poverty is omnipresent. The Central African Republic (CAR) is one of the poorest countries in the world. There are many human capital challenges to overcome. It ranks at the bottom of the UN Human Development Index ranking with the future we imagine for the younger generations. Those under 35 represent 75% of the population. 71% of the population live below the international poverty line of less than two US dollars a day. Maternal and child mortality under 5 years old are among the highest in the world. The country has one of the lowest education and gender equality indicators. The average life expectancy is 53 years. The fertility rate of 6.2 children per woman is high. More than half of the population needs humanitarian aid. A quarter is in a situation of extreme emergency. The roots of poverty are to be found in the history of the country. The economic predation of the colonizer remained very present after the independence of the country. The events of the past decade have petrified the country. They can be summarized as well.
The crisis experienced by the country between 2013 and 2015 led to a collapse of the economy and public services. It has placed the populations in a difficult humanitarian situation. Many infrastructures and businesses have been destroyed. The administration, particularly the management of public finances, has been paralyzed.
The political situation improved with the election of President Faustin Archange Touadéra on February 14, 2016, which closed the chapter of the years of unrest and then of transition. On February 6, 2019, another page was turned by the signing of a peace agreement with 14 armed groups mediated by the African Union. However, the security situation is far from stabilized. On September 24, 2020, during the annual debate of the 75th session of the United Nations General Assembly, the President regretted the violations of human rights and humanitarian law which, despite the efforts of the government, continue to be perpetrated by certain armed groups signatories to the Peace and Reconciliation Agreement.
The already fragile economic situation was worsened by the Covid-19 pandemic. Its impact should translate into a drop in economic growth of around 0.8 to 1.2% out of the 4.8% initially forecast. Prior to the health crisis, CAR's economic growth slowed to 3.7% in 2018. The resumption of insecurity destabilized economic activity by disrupting agricultural, forestry and mining production and delaying investment projects. . Despite this, the World Bank's forecasts remained optimistic. If the security situation does not deteriorate, the medium-term outlook for the CAR is positive, thanks to the expected re-establishment of security, the gradual restoration of public services to the provinces,
When poverty reigns on the ground, the basement conceals a treasure. The rue de Bangui whispers that it would be enough to stoop to get rich. It is said that in some villages children sweep the streets to find and then sell the few plots of gold that will suffice for their food. Scientific studies are the basis for these rumors. From the geological sketches of French Equatorial Africa, the diversity and geological richness of the CAR are known. The national mining plan completed in March 1995 with the assistance of the World Bank identified and located 470 mineral showings, of which only gold and diamonds are artisanally mined. Gold is abundant, precious stones are of very good quality, 70% of which are intended for jewelry and 30% for industry. Why are the authorities and the people unable to take advantage of these treasures? It is the result of a long history. The events of the last decade have made matters worse ...
[1] Die Zeit, 2017, Central African Republic. A poor country sitting on a treasure. https://www.courrierinternational.com/article/republique-centrafricaine-un-pays-pauvre-assis-sur-un-tresor
[2] Die Zeit, 2017, Central African Republic. A poor country sitting on a treasure. https://www.courrierinternational.com/article/republique-centrafricaine-un-pays-pauvre-assis-sur-un-tresor
