DRC to Negotiate New IMF Program After Successful Completion of Previous Agreement
Following the completion of the sixth and final review of the economic program launched in 2021 with the International Monetary Fund (IMF) under the Extended Credit Facility (ECF), the Democratic Republic of Congo (DRC) government is preparing to negotiate a new program with the IMF, as well as a program under the Resilience and Sustainability Fund (RST).
During the tenth meeting of the Council of Ministers on Friday, August 23, 2024, President Félix Tshisekedi instructed the government to “formally” engage in a new program with the IMF.
He emphasized the importance of conducting a thorough assessment of the macroeconomic situation, with realistic simulations, to ensure the success of the upcoming negotiations.
President Tshisekedi highlighted the benefits achieved through the previous three-year program with the IMF, which helped consolidate international foreign exchange reserves, now valued at $6 billion—up from $1.7 billion at the program’s inception in July 2021.
The program also contributed to stabilizing the macroeconomic framework despite challenges such as health, security, and humanitarian crises. However, Tshisekedi noted that inflation remains high and the exchange rate unstable due to the ongoing international crisis.
The previous IMF program, valued at $1.5 billion, focused on strengthening the budget, increasing revenues, improving the monetary framework, and enhancing governance and economic transparency.
These efforts secured $2.25 billion in balance of payments support, boosting national reserves, and $1.5 billion in additional budget support co-financed by the World Bank.
These achievements have restored the confidence of international financial institutions, enabling the DRC to receive budgetary aid after more than fifteen years without external financial support.
This positive momentum is seen as a strong signal to national and international investors, reinforcing the government’s commitment to sustained reforms.
