In CAR, adoption of the 2022 Budget by the National Assembly and a reform of the mining code

As the end of the current year 2021 approaches, the budget marathon is over at the National Assembly for the state budget for the year 2022.

The National Representation voted on Monday, December 20, in final reading, the finance bill for 2022, by 131 votes in favor and 4 against. Placed under the chairmanship of the Right Honorable President of the National Assembly Simplice Mathieu Sarandji, the bill was defended by the Minister of State for the Economy, Planning and Cooperation, Félix Moloua acting as his finance colleague and the budget HervéNdoba on mission. Following the admissibility of the finance bill for the 2022 financial year, the august plenary had entrusted the said project to the economy, finance and planning commission for its in-depth examination.

As part of the reform of certain sectors, the Central African Republic has announced a major reform of the mining sector, so that artisanal cooperatives will no longer have the right to sell their gold abroad and denounce a risk of monopoly. This is a very important step to develop this sensitive sector and increase its contribution to the national economy, starting with the development of relevant legislation to attract investment, as part of a comprehensive strategy for develop the sector in its various activities, to achieve maximum benefit from the mineral wealth of the Central African Republic, and work to increase its added value.And increase the contribution of mining activity to GDP, as part of a plan to transform the country into a global mining hub.

During a general assembly held in Bangui in mid-November, the National Union of Mining Cooperatives of the Central African Republic stressed the need for fundamental change to make the work of the sector more transparent, and the union renewed the the country’s ambitious plan in the mining sector, which aims for more income in the fund budget, which can be devoted to the development of the country’s economy.

 It should be noted that the rights of minors will necessarily be better protected than private traders who exploit labor for low wages. In addition, the National Union of Mining Cooperatives of the Central African Republic has also decided to eliminate the phenomenon of child labor widespread in the country, especially in mines.

It should also be noted that the preparation of the draft budget for fiscal year 2022 comes in a difficult context marked by the suspension of the economic and financial program of the government supported by the Extended Credit Facility (ECF) of the International Monetary Fund (IMF). ) and other budget support.

 It emerges from the presentation of the report of the said commission to the National Assembly of the General Economy of the finance bill for the financial year 2022 that the government has proposed a balanced budget with revenue and expenditure. Thus, the draft budget for fiscal year 2022 includes a State budget which provides for budgetary resources, sized at 298,155,473,000 CFA francs, of which 138,000 472,000 CFA francs in domestic resources and 160,155,001,000 billion in external resources. Expenses are estimated at CFAF 292,3304,807,000.