the citizen's blog
The government of the Democratic Republic of Congo publishes its cash plan for the first two quarters of the 2023 fiscal year. The planned tax and non-tax revenues amount to 10,742.2 billion Congolese Francs, while the total amount expected is 13,704.5 billion Congolese Francs. Despite significant revenue mobilization, the reliance on mineral exports poses a challenge to long-term financial stability. Economic diversification is needed.
Africa is facing a significant decline in foreign direct investment (FDI) which has worrying consequences for its economic development. Despite an increase in announcements of new projects, the value of investments has fallen, particularly affecting countries such as Nigeria and Ghana. This decrease in FDI leads to an economic slowdown and an increase in the deficit of foreign direct investment in Africa. In order to reverse this trend, it is essential that African countries create an enabling environment for investment by putting in place favorable policies, reducing bureaucratic obstacles and enhancing their attractiveness to international investors. FDI is essential to boost growth, create jobs and foster innovation in Africa.
In a recent article, the NGO ACEDH welcomed the sanctions imposed by the US State Department on Congolese officials implicated in acts of corruption and illicit wildlife trafficking. According to ACEDH, these sanctions mark a step towards justice for biodiversity and the fight against corruption. The organization calls for in-depth investigations to clarify this matter and asks that the measures also extend to other officials in the sub-region. It is essential to fight against illicit wildlife trafficking and corruption, which threaten Congolese biodiversity and the climate.
The ARSP in the DRC actively supports the strengthening of local industry by proposing measures to protect Congolese companies. One such measure includes waiving VAT for local businesses to make their products more competitive. In addition, the ARSP is also committed to resolving the payment problems of entrepreneurs in Mbuyi-Mayi in order to preserve the local industry. A technical commission will be set up to study and implement concrete measures to strengthen Congolese industry. This initiative aims to foster the country’s economic development and support job creation and growth.
Summary :
The Democratic Republic of Congo is experiencing an increase in sales of its agricultural and forestry products on international markets. The prices of Robusta and Arabica coffee, as well as cocoa and papain, have increased, demonstrating the quality and competitiveness of these productions. Rubber, on the other hand, maintains a stable price. This positive trend offers economic opportunities and strengthens the reputation of the DRC on the international scene.
The Democratic Republic of Congo plans to further exploit gold ore to increase its public revenue. The price of gold is expected to see a significant increase in international markets this week. In July 2023, the DRC has already exported more than three tonnes of raw gold thanks to a joint venture with the United Arab Emirates. Experts estimate that the country has the capacity to export more than 60 tonnes of gold per year. The general trend in mining products exported by the DRC is increasing, which is good news for its economy. However, it is essential to put in place measures to guarantee responsible and sustainable exploitation of these resources.
The construction of the hydroelectric power station on the Mbombo falls in the province of Kasaï-Central is an important step towards the electrification of the city of Kananga and its surroundings. The plant, with a capacity of 10 megawatts, is expected to be built within the next 12 months. Funding for the project has already been secured and construction will create local jobs. This initiative will meet the growing demand for electricity in the region and stimulate local economic development. This is good news for the population who will soon benefit from a clean and sustainable source of energy. The political will and commitment of the authorities are encouraging for the energy future of the Kasai-Central province.
The United States supports the DRC’s Local Development Program aimed at fostering sustainable economic growth. US Ambassador to the DRC Lucy Tamlyn expressed US support during a meeting with Congolese Deputy Prime Minister of Economy Vital Kamerhe. Bilateral cooperation between the two countries is strengthening, particularly in the mining and agriculture sectors. The United States recognizes the importance of the DRC’s economic situation and wishes to contribute to its economic development by attracting more foreign investment.
Summary :
The launch of the Partial Loan Portfolio Guarantee Fund in the DRC offers many opportunities for local entrepreneurs. This fund aims to reduce the risk of non-repayment of loans granted to micro, small and medium-sized enterprises (MSMEs). It also promotes financial inclusion for women and young entrepreneurs by relaxing collateral requirements and prevents over-indebtedness by providing better debt management. The aim is to improve access to credit and encourage economic development in the country.
European economic operators show their interest in the exploitation of critical minerals in the DRC, with a desire for social development. Beyond the development of natural resources, they want to invest in improving working conditions and respect for workers’ rights. Strategic partnerships are envisaged to promote the transfer of knowledge, skills and technologies. The European Union is also interested in the agro-food sector to stimulate its growth and create sustainable economic opportunities. Balanced economic and social development is at the heart of this collaboration.