The debt securities market in the Democratic Republic of Congo continues to generate strong interest with the government’s recent announcements regarding its mobilization on the domestic market. In the third quarter of 2024, the Government plans to mobilize a total amount of $366 million to finance its various activities.
According to data from the Central Bank of Congo, the next Treasury Bond auctions indicate a forecast of raising 190.0 billion Congolese Francs (CDF) as well as 300.0 million Treasury Bonds in US dollars. This fundraising dynamic has already begun with the recent auction of September 3, 2024, during which the Treasury managed to raise an amount of $95.0 million in Treasury Bonds with a maturity of 1 year and 6 months.
It should be noted that during this auction, the interest rate was set at 9% per year, with the possibility of split repayments each quarter until maturity, and recorded a coverage rate of 105.6%. These figures highlight the attractiveness of Congolese debt securities to investors, despite the economic challenges facing the country.
Indeed, the Democratic Republic of Congo must deal with inflation expected at 6.5% and a relatively high public debt-to-GDP ratio. However, the Government does not hesitate to issue securities on the market to finance its projects and support the country’s economic activity.
In this context, growth forecasts remain encouraging, with a GDP growth rate estimated at 6% at the end of June 2024, mainly driven by the extractive sector. This positive trend could help strengthen investor confidence and attract more capital to the Congolese debt securities market.
In conclusion, the mobilization of funds on the domestic debt securities market in the Democratic Republic of Congo reflects the government’s desire to strengthen its financial position and support the country’s economic growth. Despite the challenges, the economic outlook remains encouraging, fueling hope for a more prosperous future for the Congolese nation.