- DRC Seeks Expanded IMF Support as Inflation Nears 9% And Growth Slows
The Democratic Republic of Congo has reached a staff-level agreement with the International Monetary Fund on two programme reviews, while asking for greater access to IMF financing and more room to run fiscal deficits as the Ebola response and conflict in the east increase pressure on public finances.
The agreement covers the fourth review of the DRC’s three-year programme under the Extended Credit Facility (ECF) and the third review under the Resilience and Sustainability Facility (RSF).
It remains subject to approval by IMF management and the Executive Board, whose consideration is tentatively scheduled for December 2026. The agreement is therefore a step towards possible additional support, not a completed approval or disbursement.
The talks expose the difficult balance confronting the government: respond to urgent security and health needs while maintaining fiscal control, managing inflation and continuing reforms. That challenge is sharpened by the Fund’s assessment that the economy is still expected to grow by more than 5% in 2026 and over the medium term, even as its performance slows.
The IMF said growth had moderated as the Ebola outbreak and challenges at two large mines began affecting economic activity. It also projected year-on-year inflation to rise to nearly 9% by December, driven by higher petroleum and food costs.
The Central Bank of Congo held its policy rate at 12.5% in October. The mission urged it to remain alert and be prepared to tighten policy if inflation expectations become unanchored.
The combination presents a policy dilemma. Higher interest rates could help contain inflation expectations, but tighter monetary conditions can also weigh on credit and economic activity. Meanwhile, the government’s room to respond to Ebola and the conflict is constrained by the need to preserve fiscal sustainability.
The IMF’s warning is that the country must manage these pressures without allowing temporary shocks to undermine macroeconomic stability.
The domestic fiscal deficit remained below the programme ceiling at the end of June 2026. But the Fund said budget implementation difficulties had emerged for the rest of the year, with continuing conflict in eastern DRC and the Ebola response weighing on public finances.
It called for delays in revenue measures approved in the 2026 budget to be addressed, as well as stronger control of the public wage bill and cuts to lower-priority spending.
The government has asked the IMF to relax the deficit ceilings for 2026 and 2027 and provide higher access to resources under the ECF to meet added costs and external financing needs.
It has also requested increased RSF support to strengthen epidemic preparedness and response, reducing the economic and budget risks associated with health shocks.
The IMF said these requests would go to the Executive Board for consideration. No new financing amount was specified in the staff statement.
The requests reflect the immediate cost of crises, but they also raise questions about how additional fiscal space will be used and monitored.
More flexibility may help the state fund urgent needs, but the value of that flexibility depends on spending being transparent, targeted and consistent with the programme’s objectives. IMF staff therefore called for stronger public financial management and more efficient use of public resources.
Among the priorities are limiting emergency spending procedures, extending spending authorisation to more ministries, completing the Treasury Single Account rollout and rationalising special funds and public entities.
The aim is to bring public spending under clearer controls and align the management of state funds with general public accounting rules.
These measures matter because emergency procedures and fragmented public accounts can make it harder to track government commitments and assess whether money has reached its intended destination.
Completing a Treasury Single Account would help consolidate government cash management, while tighter controls on special funds could improve oversight. But implementation not the announcement of reforms will determine whether these changes deliver stronger accountability.
The review also noted progress on financial integrity. The IMF welcomed the DRC’s removal from the Financial Action Task Force’s grey list, recognising progress in strengthening anti-money-laundering and counter-terrorist-financing systems.
It urged the authorities to sustain those gains and step up efforts to improve governance, fight corruption and strengthen the business climate.
Under the RSF, the IMF welcomed the government’s adoption of a draft revised Forest Code and a draft revised public-private partnership law that incorporates climate considerations. It also noted publication of a performance audit of the National Forest Fund.
The mission called for stronger legal requirements to ensure mining projects comply with environmental and social standards, alongside timely implementation of other reforms.
The environmental measures connect to a wider economic question for the DRC: how to convert its natural resources into durable development while reducing the risks created by poorly managed extraction and climate shocks.
Stronger forest protection and safeguards for mining projects can improve resilience, but their effectiveness will depend on enforcement, public access to information and the capacity of institutions to monitor compliance.
The DRC’s projected growth above 5% provides a measure of resilience, but it does not remove the vulnerabilities highlighted in the review.
Activity is already being affected by health pressures and difficulties in two major mines, while inflation is expected to accelerate and security needs continue to draw on the budget.
The outlook depends not only on headline growth, but on whether the economy can withstand these shocks without losing control of public finances or delaying reforms.
The December Board review will be the next formal test of the programme. Approval could provide the requested additional financing flexibility, subject to the Board’s decision.
The more enduring test, however, will be whether the government can pair emergency response with credible revenue measures, disciplined spending and reforms that strengthen the state’s ability to account for public money.
The staff-level agreement sets out that agenda; the country’s capacity to carry it through will determine how much resilience the financing can buy.
