Banking rate in the DRC (Democratic Republic of Congo) and importance of banks in economic development
The Democratic Republic of Congo (DRC) faces a major challenge in terms of banking coverage. According to a study carried out by the audit firm Deloitte, this rate is around 6%, which is considered modest for a population of around 80 million inhabitants. Compared to the African average which is 15%, it is clear that efforts must be made to improve this situation.
The Deloitte study highlights two major players in the Congolese banking sector: Equity BCDC and Rawbank. These two financial institutions stand out with respective customer receivables of $998 million and $935 million. They thus hold significant market shares, with 24% and 22%, according to the audit firm’s report.
Despite the low banking rate, the banking sector in the DRC has demonstrated its resilience in the face of the shocks caused by the COVID-19 pandemic. In 2022, it recorded significant growth, especially in the digital domain. Digitalization and agency banking, which offer simplified services, could play a crucial role in increasing this banking rate. Particularly thanks to the untapped potential of the 35 million inhabitants using a mobile phone in the DRC.
However, the country faces a major challenge: the strong dollarization of its economy. More than 80% of banks’ balance sheets are expressed in US dollars and around 85% of deposits are made exclusively in this currency. This situation makes the banking sector vulnerable to exchange rate fluctuations and limits opportunities for citizens to use banking services for their daily transactions.
International Banking Day, observed every December 4, highlights the importance of banks in financing sustainable development and improving the standard of living of populations. In the DRC, this day also highlights the urgent need to increase the banking rate to promote the participation of all citizens in the national economy.
Efforts must be made to raise public awareness of the benefits of banking and promote confidence in the banking system. Training and awareness initiatives could be put in place, particularly among rural populations and marginalized groups, to help them access banking services and understand their benefits.
In conclusion, the low banking rate in the DRC represents a major challenge for the economic development of the country. However, opportunities exist thanks to digitalization and simplified banking services. It is important to promote trust and understanding of the banking system, while putting in place measures to reduce the dollarization of the Congolese economy. Thus, the DRC will be able to fully benefit from the contribution of banks to financing sustainable development and socio-economic progress.