- DRC Economy Holds Firm as IMF Backs Reform Path
The International Monetary Fund has reached a staff-level agreement with the Democratic Republic of Congo on the third review of its Extended Credit Facility arrangement and the second review of its Resilience and Sustainability Facility, while also completing the country’s 2026 Article IV consultation.
The agreement, reached after an IMF mission to Kinshasa from April 23 to May 6, 2026, remains subject to IMF management approval and Executive Board consideration, tentatively scheduled for June 2026.
The IMF team, led by Calixte Ahokpossi, said the DRC’s economy had remained resilient despite persistent armed conflict in the eastern part of the country and spillovers from the war in the Middle East.
“Economic activity remains resilient, with real GDP growth exceeding 5½ percent in both 2025 and 2026,” Mr Ahokpossi said, noting that growth was being supported by renewed dynamism in construction, services and agriculture, which had more than offset a mild slowdown in the extractive sector.
The Fund said the exchange rate had remained broadly stable since the end of 2025, supported partly by a narrowing current account deficit and favourable mineral export prices. However, those gains have been partly offset by higher oil prices following the onset of the war in the Middle East.
The IMF said external stability had improved gradually, supporting continued reserve accumulation. International reserves reached US$8.8 billion at the end of March 2026, although they remained slightly below the conventional adequacy benchmark of three months of import cover.
Inflation has also remained contained. Year-on-year inflation has stayed at 2.5 per cent or below since October 2025, well below the Central Bank of the Congo’s 7 per cent target. However, the Fund warned that inflation could edge higher in the coming months following increases in pump fuel prices linked to the Middle East conflict.
Against this background, the IMF urged the Central Bank of the Congo to remain prudent in the conduct of monetary policy, particularly after policy rate cuts from 17.5 per cent to 15.0 per cent in January 2026 and 13.5 per cent in April 2026.
The Fund said the persistence of armed conflict in eastern DRC continues to weigh on public finances. It cited intensified diplomatic and socio-political mobilisation following the capture of Uvira town by AFC/M23 rebels in December 2025.
As a result, the ceiling on the domestic fiscal deficit at the end of December 2025 was exceeded by 0.6 percentage points of gross domestic product, despite strong revenue collection. The IMF said corrective measures, including stronger domestic revenue mobilisation and cuts to non-priority spending, would anchor the supplementary 2026 budget.
The supplementary budget will also include additional investments financed by the DRC’s recently issued inaugural Eurobond, as well as measures to cushion spillovers from the Middle East war.
The IMF welcomed the Eurobond issuance, describing it as a source of funding that could boost productive investment while providing an alternative to more costly domestic financing. But it urged the authorities to ensure that the proceeds are used transparently and effectively.
The Fund said strict compliance with safeguards for the use of Eurobond proceeds would be crucial, alongside continued progress in public financial management reforms.
It cited the operationalisation of the Treasury since February 2026 and the decentralisation of spending authorisation to four pilot ministries as important reforms. But it called for further action, including limiting emergency spending procedures, strengthening public investment management, completing the rollout of the treasury single account, and improving oversight of special funds and public entities.
The IMF also urged the DRC authorities to improve the quality and level of social spending, accelerate labour market reforms, improve the business climate and strengthen governance to fight corruption and money laundering, including through the recently established economic and financial tribunal.
Under the climate-focused RSF arrangement, the Fund welcomed the early adoption of an ex-ante climate impact assessment methodology for investment projects. It also encouraged stronger institutional coordination to revise the Forest Code, which has faced delays, and to maintain reform momentum for future review commitments.
