### DRC Treasury Bond: A Bold Financial Maneuver or a Call for Caution?
On January 21, 2025, the Government of the Democratic Republic of Congo (DRC) made a significant splash on the financial market by issuing Treasury Bonds of 53.50 billion Congolese Francs (approximately 18 million US dollars). This initiative, orchestrated by the Ministry of Finance, is symbolic in more than one way, both for the country’s economic dynamics and for the recurring challenges it faces.
The issuance of bonds, a form of securitization of receivables, aims to repay a debt owed to the Central Bank of Congo (BCC). At the heart of this operation is the five-year maturity, a strategic choice that could impact not only the financial health of the Treasury, but also that of the BCC as a whole.
#### The Need for Prudent Management
Looking at the DRC’s economic history, increased reliance on other sources of financing, in addition to revenues from natural resources, is essential. Issuing Treasury Bonds could be seen as a temporary solution to debt, but it requires careful management to avoid getting stuck in a debt spiral. The country’s level of debt has already raised serious concerns, particularly given the informal structure of its economy and the uncertainties that weigh on its natural resources.
Experts are alarmed by the consequences of such an issue on the perception of the DRC’s solvency on international markets. At an average exchange rate of 2954.4 CDF to the US dollar, the constant devaluation of the Congolese currency could weaken the State’s purchasing power at the time of repayment. With this in mind, the long-term strategy must imperatively integrate an economic resilience dimension.
#### Comparison with other practices in Africa
When looking at the experiences of other African countries, a note of optimism can sometimes emerge. Rwanda, for example, has managed to develop its public debt instruments through bond issues, contributing to a significant increase in transparency and accountability. Angola, for its part, recently launched its own bond issuance program, adding depth to its internal markets. However, solidarity within these markets depends heavily on confidence in their budgetary balance. Indeed, the lack of credibility of the respective commitments and the volatility of natural resources can lead to putting these apparent successes into perspective.
#### The ecological footprint of securitization
A deeper analysis of this initiative cannot ignore the environmental impact. The link between economy and ecology has become essential in the march of development. Can the funds thus mobilized be used to promote an ecological transition in the DRC, in particular through economic diversification? The DRC has tremendous potential in terms of biodiversity and renewable resources, potentially underexploited, which would deserve to be integrated into the long-term economic calculation.
#### The future of Treasury Bonds in the DRC
The crucial question that arises is whether the issuance of Treasury Bonds, at first glance, seems to be a pragmatic strategy. This could allow the BCC to strengthen its financial capacity and play a crucial role in economic development, provided that it is accompanied by a robust implementation of public policies. The repayment scheduled for January 2027 will be a pivotal moment, not only for the Treasury, but also for economic actors, whether national or international.
The transformation of the Congolese economy cannot be summed up in a simple issue of bonds. It is a collective work, which must mobilize a coherent national vision, integrating both the human element and the preservation of the environment.
In conclusion, if the decision to issue Treasury Bonds appears as a potential financing vector for the Congolese government, it raises more questions than it answers. The time has therefore come for caution, observation, but also for commitment to responsible management of the country’s financial, economic and ecological resources. The road to true prosperity remains winding and strewn with pitfalls, but it can also be transformed into an opportunity for affirmation and renewal for the DRC.
**Mitterrand MASAMUNA**
*Fatshimetrie*