Improvement in Export of Artisanal Gold Noted at the DRC’s Economic Situation Committee Meeting
Gathered around Prime Minister Jean-Michel Sama Lukonde, members of the Economic Situation Committee have observed an improvement in the export of gold from artisanal mining since the start of operations at Primera Gold. The Economic Committee noted with satisfaction that since the commissioning of Primera Gold, there has been an improvement in the export of gold from the artisanal sector.
On Wednesday, March 22, 2023, Prime Minister Jean-Michel Sama Lukonde Kyenge chaired the traditional meeting of the Economic Situation Committee, which was attended by several members of the Government, including the Governor of the Central Bank of Congo.
According to the Minister of State in charge of the Budget, the economic situation at both national and international levels was reviewed. The Economic Situation Committee analyzed various internal and external reports on economic issues.
“We started by examining the economic situation at the international level. In this regard, the publication since March 17th of the OECD report (Organization for Economic Cooperation and Development) on global economic prospects was discussed, and this report indicates that the consequences of the war in Ukraine have continued to impact the global economy, particularly on economic growth but also on pricing in the energy and cereal sectors. This report indicates that global growth rate will stand at 2.6% for the 2023 exercise following progress made in 2022 with a rate of 3.2%, but also the report indicates that for the 2024 exercise, there will be a slight acceleration of global economic activity with a projected rate of 2.9%. Also, at the international level, it is noted that the prices of most mining products have fallen except for cobalt, gold and silver. The price of oil has also fallen, while cereal prices have increased, except for the price of corn,” said Minister of State Aimé Boji.
At the domestic level, the following was observed:
“The second point, we evaluated the economic situation at the national level, and to this end, two significant events were highlighted. The first event was the presentation of the 2022 performance and 2023 prospects report for financial agencies by the Ministry of Finance. This report indicates that the economy of the Democratic Republic of Congo achieved a growth rate of 8.5% in 2022, placing the DRC among the best-performing countries in Africa. The report also indicates that the tax burden increased from 8% in 2020 to 15% in 2022, which continues to be lower than the average of 20% for sub-Saharan African countries. Efforts must continue to be made in revenue mobilization. That is why during this presentation ceremony of this report, the Minister of Finance signed performance contracts with the three main financial agencies to achieve or even exceed budgetary assignments for these three agencies. The report also indicates that the Democratic Republic of Congo continues to remain one of the least indebted countries with a debt-to-gross domestic product ratio of 17%. Secondly, it should be noted that the Minister of PTNTIC inaugurated the fiber optic segment linking Kinshasa to the city of Muanda. This segment is 690 km long and will be managed and marketed by Fast Congo,” said Aimé Boji Sangara to the press. The country’s main economic indicators and the issue of foreign exchange reserves were also closely examined. “Thirdly, we evaluated the main economic indicators. In the real sector, the acceleration of domestic price formation was noted with an inflation rate of 5.1% in annual cumulative and 17% in annual slippage and 9.7% projected at the end of the exercise as retained by the preparatory mission for the 4th review of the Government’s economic program supported by the International Monetary Fund.
Regarding the main economic indicators, the exchange rate remained relatively stable with the Congolese franc trading at 2031.99 against the US dollar as of March 17th. In the parallel market, a slight depreciation of 0.35% was noted with an exchange rate of 2313.1 Congolese francs against the US dollar. As for international reserves, there was a slight decrease of 1.49%, with reserves standing at $4.223 billion as of March 16th,” emphasized the Minister of State in charge of the Budget.
Finally, it should be noted that the Conjunction Committee noted with satisfaction that since the start of operations of Primera Gold, there has been an improvement in the export of gold from the artisanal sector. Primera Gold has exported 77% of artisanal gold.
