The International Monetary Fund (IMF) have highlighted several economic challenges facing the Democratic Republic of Congo as a result of the government’s incompetence and imprudent management of finances.
The IMF recently concluded the 2024 Article IV consultation and the sixth review under the Extended Credit Facility arrangement with the DR Congo who are set to receive over US224 million debt.
Although a relative improvement has been noted in DR Congo’s performance in the IMF debt progrma, however the organization highlights several and major economic challenges, mainly induced by the structures of the Félix Tshisekedi government.
The IMF highlighted the following challenges;
• Security and Humanitarian Crisis: The situation in the country’s eastern region continues to weigh heavily on the economy, worsening macroeconomic conditions.
• High Inflation : Inflation remains high, reaching 23.8% by end-2023, with persistent pressures on oil and food prices.
• Budget Deficit: The domestic budget deficit exceeded forecasts due to exceptional spending on security and elections.
• Slow Structural Reforms: Public financial management reforms are progressing slowly, requiring additional efforts for better budgetary and cash management.
Downside Risks: The economic outlook is favorable but remains vulnerable to risks of armed conflict, fluctuations in commodity prices, and global economic slowdowns.
Moderate Over-Indebtedness : The DRC remains at moderate risk of over-indebtedness, requiring prudent management of external debt.
The IMF have since guided that these challenges faced by the DR Congo requires prudent macroeconomic policies, the strengthening of reforms and rigorous management to stabilize and sustain economic growth.
