The International Monetary Fund (IMF) just completed the fourth review of the economic program in the Democratic Republic of Congo (DRC). According to the Fund, the country's reform efforts have been satisfactory despite a turbulent year in 2022. Nevertheless, risks for 2023 are on the downside, despite weak revenue levels.

In a statement released on June 28, the IMF announced that it will provide the DRC $203 million in financing to address its balance of payments needs. The objective is to support foreign exchange reserves amid global economic uncertainties and multiple risks.

This disbursement is part of the DRC's three-year Extended Credit Facility (ECF) program, totaling $1.5 billion. The aim is to help maintain macroeconomic stability, increase fiscal space, and promote sustainable economic growth led by the private sector.

According to the IMF, progress under the program is satisfactory. "All end-December performance criteria were met. All indicative targets for 2022 were achieved, except for two: the social spending floor and the ceiling on central bank guarantees for central government loans, due to tracking issues, although no new guarantees were granted. All structural benchmarks were met, except for the publication of mining contracts, due to delays. The authorities have now published all agreements related to the renegotiated mining contract with Ventora and the contract for the joint venture with Primera Gold," the IMF noted.

Despite facing conflicts in its eastern region, and food prices going up, the IMF believes that the Congolese economy is resilient.

In 2022, the DRC recorded an estimated growth of 8.9%, despite inflation reaching 13% by the end of the year. This was "driven by spending pressures and the related depreciation of the exchange rate, despite a decline in import prices."

It is true that there are downside risks associated with the conflict in the eastern part of the country, the upcoming 2023 elections, and negative shocks to the terms of trade. However, for this year, the IMF sees favorable growth prospects. The institution added: "Budget execution through May 2023 reveals that exceptional expenses remain high, and other expenses are under-executed, in a context of declining revenue."

Moutiou Adjibi Nourou