Congo completes first-ever high-level IMF loan programme
Democratic Republic of Congo, the world’s second-biggest copper producer, completed an International Monetary Fund loan program for the first time in its history, the Washington DC-based lender announced Wednesday.
Congo’s performance under the 3-year, $1.5 billion program was “generally positive,” allowing for a final disbursement of $224.7 million to support the country’s foreign reserves, the IMF said.
“While the growth outlook is generally favorable, risks are tilted to the downside due to the persistent armed conflict in the East and further inflationary pressures stemming from oil and food price volatility,” Kenji Okamura, IMF Deputy Managing Director, said in an emailed statement.
Congo has struggled to overcome years of war and corruption that have left it one of the world’s poorest nations despite dazzling mineral riches.
The IMF canceled its last loan program with the country in 2012 after the government failed to publish controversial mining contracts. On Wednesday the lender called for further improvements in governance and transparency to support private sector development and “inclusive growth.”
Fighting over resource-rich eastern Congo has also hampered development, contributing to exceptional spending that caused the government to miss its fiscal balance target, the IMF said.
That was the only performance criterion the country missed in its final review, and “corrective actions are being implemented,” according to the IMF statement.
Growth is expected to fall to 4.7% this year after an 8.4% expansion in 2023, with inflation averaging 17.2% for 2024, the lender said.
The economy will average 4.8% growth through 2028 through the expansion of “major mines” and gradual development of non-extractive industries, according to IMF predictions.
