CAR Economy Regains Momentum as Investment and Agriculture Drive Growth

The country’s overall budget deficit declined to 3.5% of GDP in 2025 from 5.1% in 2024, signalling an improvement in public finances at a time when the government faces significant development demands.

The Central African Republic's economy is beginning to gather strength after several years of weak expansion, with real gross domestic product estimated to have grown by 3.3% in 2025, compared with 1.8% in 2024 and just 0.7% in 2023. The improvement was supported by stronger activity in the primary sector and a recovery in investment, according to the African Development Bank's 2026 Country Focus Report, launched in Bangui on 19 August.

Titled Mobilising Central African Republic's Development Financing at Scale in a Fragmented World, the report presents a cautiously positive picture of the country's economy while making clear that stronger growth will be needed to create jobs, reduce poverty and improve daily life. CAR has valuable agricultural land, natural resources and energy potential, yet limited infrastructure, security concerns and financing shortages continue to restrict its ability to turn these assets into broad-based prosperity.

Fiscal Pressures Ease as Investment Begins to Recover

The country's overall budget deficit declined to 3.5% of GDP in 2025 from 5.1% in 2024, signalling an improvement in public finances at a time when the government faces significant development demands. Public debt still increased slightly, reaching 59% of GDP compared with 58% a year earlier, which leaves limited room for borrowing without stronger revenue collection and more careful management of public spending.

CAR's current account deficit also narrowed from 9% of GDP in 2024 to 7.4% in 2025. This improvement offers some relief, though the remaining gap reflects the country's continued dependence on imports and its narrow export base. Greater domestic production, better transport connections and more competitive agro-industrial businesses could help retain more value inside the economy while creating opportunities for farmers, workers and local companies.

Central African Minister for the Economy, Planning and International Cooperation Marc Mandaba described the recovery as encouraging but insufficient for the country's social needs. He noted that the present pace of growth cannot yet generate enough employment or deliver the sustained improvement in living standards expected by communities.

Security, Electricity and Infrastructure Will Shape Growth

Economic performance during 2026 and 2027 will depend heavily on security conditions, reliable energy supplies and progress on infrastructure projects across transport, power and agro-industry. The African Development Bank expects real GDP growth to slow to 2.9% in 2026 before rising to 3.9% in 2027, while inflation is projected to remain above the regional target of 3%.

The general government deficit is forecast at 3.5% of GDP in 2026 and 3% in 2027. These projections show that recovery remains possible, though it is closely tied to the country's capacity to complete productive projects, strengthen public institutions and provide businesses with a more stable operating environment. Electricity shortages and weak transport networks raise costs for companies, restrict rural market access and discourage investment in processing industries that could create better-paid jobs.

A $12.8 Billion Development Plan Needs New Sources of Finance

Financing CAR's 2024–2028 National Development Plan represents one of the country's largest challenges, with total requirements estimated at $12.8 billion. Traditional public funding and development assistance are unlikely to cover the full amount, making domestic savings, diaspora resources, institutional investors, regional finance and private capital increasingly important.

Mandaba said the African Development Bank Group's New Financial Architecture for African Development should help CAR use guarantees, blended finance, local-currency instruments and risk-sharing mechanisms to make projects more attractive to investors. These tools could reduce perceived risks and help promising projects secure funding that might otherwise remain unavailable.

Bank Group Country Manager Mamadou Coulibaly stressed that CAR's ambitions will require stronger domestic resource mobilisation, better economic governance, more efficient public investment and deeper private-sector participation. Turning the current recovery into structural transformation will depend on directing limited resources toward projects that expand electricity access, connect producers with markets, support value-added agriculture and create dependable employment for a young population.