Fatshimetrie, the economic and financial news magazine, recently published a captivating article on the economic situation in the Democratic Republic of Congo (DRC) in this year 2024. A supplementary finance law for the 2024 financial year was recently adopted, setting internal revenues at 27,195.6 billion Congolese Francs (CDF), an amount equivalent to 9.5 billion USD at the official exchange rate of 2,842 CDF for one US dollar.
This budget revision comes in a complex economic context where the DRC seeks to stabilize its public finances while meeting growing development needs. This 6.9% increase compared to the initial forecast of 25,446.6 billion Congolese Francs (CDF) is notably attributed to the renegotiation of the Sino-Congolese contract, which should bring significant additional budgetary resources.
The renegotiation of the Sino-Congolese contract is a key element of this amending law. This partnership, which involves Chinese investments in various sectors in the DRC, is crucial to generate additional revenues for the Congolese Government. The authorities have high hopes that these funds will not only serve to achieve budgetary objectives but also to finance infrastructure projects essential for the country’s development.
Recent budgetary performances show a higher than expected revenue mobilization. The DRC Government has made significant efforts to improve fiscal management and implement targeted reforms. However, it is important to emphasize that despite this progress, several challenges remain. Dependence on external revenues and volatility in global markets remain factors to monitor, which could impact the country’s financial stability.
It is essential to emphasize the importance of transparent and effective governance to ensure that the funds mobilized are used optimally. The economic outlook for the DRC remains mixed and it is essential that the country continues to diversify its revenue sources and improve its business environment to ensure sustainable economic development.
The Directorate General of Taxes (DGI) has played a key role in collecting public revenue, even exceeding its collection targets, which demonstrates an improvement in tax compliance among taxpayers. Dialogue between the Congolese Government and economic stakeholders is vital to ensure the successful implementation of this amending finance law. Regular consultations with businesses and citizens will help identify priorities and adjust tax policies accordingly..
In conclusion, the 2024 Amending Finance Act represents a crucial step for the DRC in its quest for more rigorous financial management and sustainable development. The Government’s ability to effectively mobilize internal resources and overcome current economic challenges will be crucial for the country’s future. The expected results of the Sino-Congolese contract could also play a key role in improving the DRC’s overall economic conditions.