DRC growth trumps regional average
The Democratic Republic of Congo has recorded among the highest growth rates in the region, according to a recently completed annual assessment by the International Monetary Fund.
Growth in the country rebounded from 1.7% in 2020 to an estimated 6.2% in 2021, well above the 4.5% rate in sub-Saharan Africa.
According to the IMF report, the strong recovery was driven by the country’s mining and services sector performance. “Under a Fund-supported programme, the authorities have adopted policies that have helped moderate inflation and stabilise the exchange rate, while commodity prices have supported higher exports, revenues, and international reserves. While the war in Ukraine has led to an increase in inflation, raising food insecurity risks, the outlook remains favourable, with support from elevated commodity prices.”
But it’s certainly not smooth sailing, with decades of war, poor governance, and underinvestment having left the country with high poverty rates, very low access to basic services, and one of the largest infrastructure gaps in the world.
Reforms are needed to diversify and improve the resilience of the economy and to promote higher and more inclusive growth, says the IMF.
“Continued efforts to improve governance and the business climate would support private sector development and economic diversification.
“The DRC’s vast and varied mineral resources, rainforests and peatlands are key to the global energy transition and, with adequate policy frameworks and improved governance, can raise growth and living standards for its population.”
