The evolution of public debt in the Democratic Republic of Congo: figures and issues
Public debt is a crucial subject for the Democratic Republic of Congo (DRC), which faces major economic challenges. According to the latest quarterly bulletin from the General Directorate of Public Debt (DGDP), as of June 30, 2023, the outstanding public debt amounted to 9.759 billion US dollars.
A predominant external debt
Of this total outstanding amount, $5,825 billion represents external debt, or 59.68% of public debt. As for the internal debt, it amounts to 3,934 billion dollars, or 40.32%.
This predominance of external debt raises questions about the economic sovereignty of the country. Indeed, excessive dependence on foreign creditors can limit the DRC’s ability to make economic decisions independently.
A worrying debt rate
The DRC’s public debt rate stands at 16.46%, while the external debt rate reaches 9.82%. These figures demonstrate a worrying situation, particularly with regard to debt sustainability.
It is essential that the Congolese government takes adequate measures to manage this debt and avoid a financial crisis. This can be achieved through economic reforms and diversification of financing sources.
The government’s new commitments
During the second quarter, the DRC government made new commitments by taking out a $30 million loan from Rufiji (Frontera Capital B.V.). This financing aims to support the construction project of the Kinshasa Financial Center.
These new commitments raise questions about the country’s ability to repay its debt in the future. It is essential to ensure that these loans are well used and truly contribute to the economic and social development of the country.
The need for transparent and effective debt management
Faced with these challenges, it is essential that the DRC implement transparent and effective management of its public debt. This requires rigorous monitoring of spending, a fight against corruption and reforms aimed at improving economic governance.
In addition, it is essential that the Congolese government diversifies its sources of financing by encouraging domestic and foreign investments, as well as by developing initiatives aimed at strengthening the country’s economic autonomy.
In conclusion, the public debt of the DRC is a complex and crucial subject for the development of the country. To ensure a strong economic future, it is essential that the Congolese government adopt transparent and effective management of its debt, while implementing economic reforms and diversifying its sources of financing.