"Over the past 13 months, the nation's seemingly incessant struggles for political power and resources have degenerated into anarchy, hatred and ethnic cleansing -- the country stands on the brink of genocide; some would say it has already commenced," Archbishop Emeritus Tutu said in a statement released by his peace foundation.
The former French colony, one of the poorest countries in the world, plunged into a crisis after a coup by the mostly Muslim Seleka rebels in March last year.
The abuses prompted members of the Christian majority to form vigilante groups, unleashing a wave of brutal tit-for-tat killings, leaving thousands dead and close to a million displaced.
In his message, Tutu called on people on all sides of the conflict -- Christian, Muslim and Atheist -- to "rekindle the spirit of tolerance".
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"It is the people of the Central African Republic who hold the key to sustainable peace. It is the people who must re-learn to live together," he said.
"They will assist to restore broken systems, including policing and justice," he said.