This projection assumes normal conditions for agriculture, continued expansion in the forestry sector, and sustained growth in manufacturing and trade. Fiscal policy under the program is consistent with the interim poverty reduction strategy program. A key challenge facing the authorities is to raise revenue collection. The revenue ratio in the Central African Republic remains one of the lowest in sub-Saharan Africa and constrains the functioning of the central administration. The authorities have adopted a two-pronged approach to improving revenue by implementing measures to strengthen tax, customs and treasury directorates administrations, and, streamlining the tax system.
Measures are also under way to improve expenditure control and treasury cash management.
The structural reform agenda continues to focus on measures designed to improve economic efficiency and increase growth potential. In this regard, the privatization or leasing out of the three major public enterprises in the energy, oil and telecommunications sectors remain key. The authorities also intend to launch additional privatization or liquidation operations in the second batch of public enterprises. The preliminary statement on poverty reduction strategies and medium-term economic policies describes the timetable to be followed in convening a national conference aimed at defining this strategy, in the context of a participatory process that would bring together the civil society, nongovernmental organizations, bilateral donors, and international organizations. In percent of broad money at beginning of the period.