Category: Economy

This article explores the impact of Treasury Bills and Indexed Treasury Bonds on the Congolese economy. These financial instruments, introduced to diversify government funding sources, provide benefits to local investors while reducing dependence on external loans. However, challenges persist, such as the low confidence of international investors and the lack of transparency in the process of issuing and redeeming securities. Measures must be taken to build confidence, improve transparency and stimulate the growth of the Congolese financial market.

The Entrepreneurship Guarantee Fund in Congo (FOGEC) continues to financially support micro, small and medium enterprises across the country. During a ceremony in Kinshasa, 90 entrepreneurs from fifteen different provinces received an envelope of 1.8 million dollars. The funds, with an interest rate of 5% per year, have a maturity of three years. FOGEC’s objective is to promote economic development by supporting entrepreneurship in the region. The Congolese government is thus seeking to create national millionaires and encourage the emergence of a class of successful entrepreneurs. Thanks to the support of FOGEC, these entrepreneurs were able to access bank loans at advantageous rates, which would have been difficult for them with commercial banks. These financial support initiatives are essential to help entrepreneurs realize their projects and contribute to the country’s economic growth.

BIAC bank is in liquidation procedure, marking the end of a difficult period for the institution. The shareholders thus seek to manage the bank’s assets as well as possible for the benefit of its customers and partners. This decision highlights the challenges faced by financial institutions in an unstable economic environment. However, this does not mean the end of the banking sector in the Democratic Republic of Congo. It is crucial to strengthen regulation and supervision to guarantee the stability of the financial system. The authorities must take measures to prevent such situations in the future and the shareholders must be vigilant and proactive in their management. This situation highlights the importance of sound financial management and adequate regulation.

The persistent instability of the exchange rate in the Democratic Republic of the Congo has significant repercussions on the country’s economy. Differences in the exchange rate used, ranging from 2,100 to 22,000 Congolese Francs for one dollar, make it difficult to forecast the real costs for Congolese households. This situation has a direct impact on purchasing power, with a general decrease and increase in the prices of food and basic necessities. Despite government attempts to stabilize the exchange rate, the results are mixed. Experts stress the importance of external financial support, notably from the World Bank and the IMF, to strengthen the country’s foreign exchange reserves. A strong partnership with these institutions could offer a long-term solution to stabilize the Congolese economy.

The General Inspectorate of Finance (IGF) in the Democratic Republic of Congo (DRC) expresses its concerns about the evolution of the Local Development Program initiated by President Tshisekedi. A delegation from the IGF noted difficulties in some territories, such as the destruction of an administrative building due to the use of inappropriate bricks and the dilapidated state of the road infrastructure. Despite this, the IGF remains optimistic but proposes control measures to guarantee the quality of the works under construction. The implementation of this program is essential to improve the living conditions of the population and requires transparent management of resources.

In the city of Bukavu, in the Democratic Republic of Congo, the Congolese franc is experiencing a period of appreciation against the US dollar. This situation has a significant impact on local commerce, especially for retail merchants who have to deal with fluctuating exchange rates. This article highlights the importance of this appreciation of the Congolese franc and calls on the authorities to act to establish a stable parity between the two currencies. Traders face higher supply costs, which affects product prices for consumers. It is therefore essential that the authorities take steps to ensure a fair and stable parity between the dollar and the Congolese franc in Bukavu, in order to foster a more stable business environment and support economic growth in the region.

The Deputy Prime Minister of the National Economy of the Democratic Republic of Congo, Vital Kamerhe, recently met with economic operators in the telecommunications sector and the import of basic necessities to discuss the maintenance of the exchange rate fixed by the Central Bank of Congo. This meeting follows a slight appreciation of the exchange rate recently observed in the country. The measures taken by the Congolese government to stabilize the national currency and regulate the foreign exchange market were discussed in order to guarantee economic stability in the DRC. This meeting opens up encouraging prospects for the economic development of the country.

The construction of the Nzolana road in Kinshasa will soon improve traffic in the capital of the Democratic Republic of Congo. This project, funded by Sicomines, aims to widen the current road from 6 to 14 meters to make traffic more fluid and travel safer. Despite some obstacles, the director of the Congolese Agency for Major Works is optimistic about the deadlines for the completion of the project. Once completed, this new thoroughfare will not only benefit the people of Kinshasa, but also stimulate economic development in the region.

The Congolese government plans to raise 470 billion Congolese Francs (CDF) on the local financial market of Treasury Bonds and Treasury Bills to compensate for budget deficits in the DRC. These issues are scheduled between August and September 2023 and will finance public spending. They will also help cover domestic public debt obligations. Treasury Bonds and Treasury Bills are debt securities issued by the public treasury and allow the government to raise funds by issuing public debt. These operations are essential to stabilize the Congolese economy and ensure its development.

The Democratic Republic of Congo (DRC) recently repaid 173.2 billion Congolese francs of its domestic public debt, including indexed treasury bills and indexed treasury bonds. Since October 2019, the Congolese government has issued these securities to diversify its sources of financing and to meet its high public expenditure. The next issue is scheduled for August and September 2023, with the aim of raising 470.0 billion Congolese Francs on the domestic market. These initiatives demonstrate the Congolese government’s commitment to responsible management of its public debt and strengthen confidence in the national economy. It is important to follow this situation carefully to understand its implications for the Congolese economy in the long term.