DRC Initiates New IMF Programs to Boost Economic Reforms
Following the successful conclusion of the sixth and final review of the economic program in 2021 with the International Monetary Fund (IMF) under the Extended Credit Facility (ECF), the Democratic Republic of Congo (DRC) is preparing to negotiate a new three-year program.
This announcement comes from a press release issued on Wednesday, July 3, 2024, by Minister of Finance Doudou Fwamba Likunde.
In the statement, Minister Likunde reaffirmed the government’s commitment, led by Prime Minister Judith Suminwa Tuluka, to embark on significant structural reforms aimed at fostering economic growth for the benefit of the Congolese population.
“The Government, having completed the last conclusive Letter of Intent for the program, is determined to implement the commitments made under the leadership of the President of the Republic.
In the coming days, we will negotiate both a new three-year program supported by the Extended Credit Facility and a program under the Resilience and Sustainability Fund (RST).
Our commitment remains steadfast towards deep structural reforms to drive sustainable economic growth that benefits all,” said Minister Likunde, succeeding Nicolas Kazadi in this role.
Minister Likunde also commended President Félix Tshisekedi’s strategy upon assuming office in 2019 to renew formal cooperation with the IMF and oversee its diligent implementation by the government.
“The completion of this program, a first in our country’s relationship with the IMF since becoming a member in 1963, signifies international recognition of the paradigm shift undertaken by our country, despite the challenges posed by neighboring conflicts.
I extend my appreciation to the previous Government, the Central Bank of Congo, and all experts in public and financial administrations who contributed significantly to this achievement,” added the Minister.
The 2021 three-year program, funded with $1.5 billion, focuses on strengthening the budget, enhancing revenue generation, improving the monetary framework, and advancing governance and economic transparency.
These efforts have bolstered national reserves and secured $2.25 billion in balance of payments support, along with an additional $1.5 billion in co-financed budgetary aid from the World Bank.
These developments have restored confidence among international financial institutions, marking a positive signal for both national and international investors and underscoring the government’s steadfast commitment to ongoing reform efforts.
Since President Félix Tshisekedi took office, relations between Kinshasa and the IMF have notably improved, culminating in the DRC’s sustained participation in IMF programs since 2021 under the administration of Prime Minister Jean-Michel Sama Lukonde Kyenge.
