Category: Economy

### DRC: Budget Deficit or Opportunity for Reform?

The Democratic Republic of Congo is facing a major economic challenge with a budget deficit of $903.8 million for the year 2024. Although this figure may seem alarming, it hides economic dynamics that must be taken into account. Public revenues increased by 30%, but expenditures increased by 26.6%, revealing an unpreparedness to manage these flows.

In a context where other nations such as Rwanda have been able to transform their deficits into effective reform efforts, the DRC can learn to rationalize its public expenditures and strengthen transparency to restore investor confidence. Engaging civil society and fostering dialogue between stakeholders can also catalyze innovative solutions.

Instead of viewing this deficit as inevitable, the DRC has the opportunity to rethink its economic structures. The future of the country will depend on the courageous measures and reforms that the government chooses to implement. The long-awaited financial stability is within reach if concrete actions are taken now.

**Davos 2025: DRC at a Crossroads**

At the World Economic Forum in Davos in 2025, the Democratic Republic of Congo (DRC) faces a historic opportunity to redefine its image on the international stage. Despite its immense natural wealth, the country is struggling with humanitarian crises and major environmental challenges. Under the leadership of President Félix Tshisekedi, the DRC aspires to leverage technological advances to boost its development while tackling climate change with an ambitious strategy.

The presence of senior Congolese figures in Davos demonstrates a desire to build strong partnerships, particularly in the energy transition, where the DRC could become a key player by supplying essential minerals for renewable energies. The challenge is to transform discussions into concrete actions to build a sustainable and responsible future.

With the emphasis on effective international cooperation, the DRC could not only improve its internal situation but also serve as a model for other nations in Africa. The world is waiting to see how the country, rich in potential, will navigate these diplomatic mechanisms to face global challenges.

**Kinshasa in Ebullition: A Strike That Highlights Deep Problems**

In Kinshasa, tensions are rising ahead of a transport strike that could become a turning point. Governor Daniel Bumba calls the action “savage”, but behind this label lies a much broader socio-economic malaise. Faced with a fare structure deemed inadequate by a majority of Kinshasa residents, anger is simmering. A recent survey found that 60% of residents are struggling to meet their food needs, making the new fares unsustainable for those living on less than two dollars a day.

Transport unions, often singled out, play a key role in representing workers’ concerns, with 75% of drivers disapproving of the new measures. Criminalizing the strike will only deepen already eroded distrust of the authorities. This movement highlights an urgent need for constructive dialogue to improve living conditions and redefine the relationship between the administration and unions.

As the city is gripped by growing tensions, this strike could be an opportunity to rethink an inclusive and sustainable transport system. Kinshasa is at a crossroads: will it choose to listen and cooperate to build a better future? Fatshimetrie.org stands ready to follow this development and analyze its consequences.

**The Global Economic Landscape: Towards a New Balance?**

As global growth reaches 3.3% this year, worrying disparities are emerging across regions, with strong momentum in emerging economies and worrying stagnation in the euro area. Political tensions, particularly around the US elections and protectionist policies, threaten to upend the positive outlook. Similarly, declining inflation offers some respite, but challenges remain, with supply chains still fragile. In this volatile environment, the need for international cooperation and sustainable economic approaches is crucial. As we navigate these uncertainties, today’s choices will shape the future of an interconnected and resilient global economy.

### Kalemie: Transport Challenges and Their Impacts

In Kalemie, transport fares are soaring, from motorcycle taxis to 2000 FC and tricycles to 1000 FC, revealing the extent of an economic crisis linked to the deterioration of infrastructure. The roads, already damaged by floods and torrential rains, make the passage of vehicles chaotic, undermining a vital service for 65% of the population dependent on informal transport.

This price increase not only impacts the daily mobility of residents, but also threatens the stability of prices for food products, creating a vicious circle that must be avoided. In response, urgent measures are needed: rehabilitation of key roads, flood emergency plans, community consultation and subsidies for the most vulnerable. Faced with this crisis, the action of the provincial authorities is crucial to ensure a viable economic future in Kalemie.

### SMIG Review in the DRC: A Crucial Economic Issue

The recent decision by Prime Minister Judith Suminwa Tuluka to suspend the adjustment of the guaranteed minimum interprofessional wage (SMIG) to 14,500 Congolese francs (approximately USD 5.16) raises critical questions about economic governance in the Democratic Republic of Congo (DRC). With soaring inflation already above 9% in 2023, the need for an adequate SMIG, which aims to lift 60% of the population living below the poverty line, is more pressing than ever.

This episode highlights the importance of an inclusive dialogue between all stakeholders, including trade unions and employers’ organizations, to develop a coherent wage policy adapted to the country’s realities. While previous initiatives to discuss the SMIG have shown their limits, the upcoming commission promises an opportunity for transformation.

For real change, a model inspired by the living wage, as practiced in South Africa, could be a starting point. In short, the DRC is at a turning point where the reassessment of economic priorities could offer a path towards social justice and sustainable balance, meaning that the future of workers cannot be built without inclusivity, transparency and active participation.

**The Darkness of the Underground: A Reflection on Illegality and Life in the Shadow of South Africa’s Mines**

Deep in the abandoned mines of South Africa, thousands of “zama zama” engage in a desperate struggle to survive, driven by poverty and unemployment. The heartbreaking story of a miner who survived six months in the shadows tragically illustrates the consequences of an economic crisis that does not spare families. As the government opts for repression, the urgency of adopting a policy of sustainable development and offering viable alternatives is felt. The human stories behind these alarming figures reveal a dark reality that calls for a collective reflection on the value of life and the importance of building bridges to hope rather than walls of despair.

### TikTok: Catalyst for South Africa’s E-commerce Revolution

The rise of TikTok in South Africa is not just a social phenomenon; it is radically redefining the e-commerce landscape. According to Carl Jordan, Head of Sales for TikTok in Sub-Saharan Africa, the platform is transforming the way we consume, embedding a new attention economy where engagement is more important than simply promoting products. With 84% of users focused on content, brands must ride this creative wave to build authentic emotional connections with Generation Z.

Amid a boom in smartphone usage, South African consumers are spending 1.3 times more on TikTok than on other platforms, transforming their purchasing behaviors. The urgency of immediacy and personalization has become paramount, leading brands to rethink their strategy. TikTok is even influencing diverse sectors, such as financial services, where complex information is now explained in a fun way.

However, this revolution does not come without challenges: political and economic support is needed to ensure a robust digital infrastructure and equitable access. Businesses must navigate between innovation and social responsibility, integrating ethical values ​​to adapt to the expectations of modern consumers. At the dawn of this new era, e-commerce in South Africa is establishing itself as a fertile ground for invention, but also for more responsible and engaged commerce.

### Draft animals in Ethiopia: economic partners to be valued

In Ethiopia, horses and donkeys play a crucial role in agriculture and transport, yet their well-being is often relegated to the background. Veterinarian Mulugeta Alemu highlights the endemic neglect that affects these animals, often victims of abuse due to lack of financial means for adequate veterinary care. Although their health is essential for rural productivity, their low perceived value hinders the investments necessary for their care.

The economic reality could be quite different: a healthy horse can generate significant income, representing up to 4% of rural GDP in some regions. This raises the need for collective awareness of their importance, both economically and socially.

Animal health issues also go beyond the economic framework, affecting public health through the spread of zoonotic diseases. A reform of public policies, combining awareness, regulation and veterinary care, therefore appears crucial to improve the condition of these animals and, by extension, that of rural communities.

By integrating an ethical approach to economic development, Ethiopia could transform the perception of working animals, seeing them not just as tools, but as valuable allies in the quest for a sustainable future. It is time to act for meaningful change.

**Buffelsfontein tragedy: Urgent need for social reform in South Africa**

The Buffelsfontein Gold Mine disaster, which claimed the lives of 87 miners, highlights a systemic failure in crisis management in South Africa. With the country facing record unemployment of 34%, thousands of people are resorting to illegal exploitation of abandoned mines, reflecting economic desperation. In this context, the response of the authorities, characterized by repressive rather than humanitarian methods, has not only exacerbated the tragedy, but also widened a gap of mistrust between citizens and the state. This tragedy must serve as a catalyst to reassess public policies, encourage inclusive solutions and foster constructive dialogue with local communities. Beyond the recovery of bodies, it is crucial to rethink the future, guaranteeing dignity and hope for everyone.