The International Monetary Fund (IMF) has reached a staff-level agreement with the Democratic Republic of Congo (DRC) on two significant financial arrangements. These include an Extended Credit Facility (ECF) and a Resilience and Sustainability Facility (RSF), as announced by Calixte Ahokpossi, IMF Mission Chief for the DRC.
The agreement was finalized following discussions held in Kinshasa from October 31 to November 13. The proposed economic and financial program under the ECF amounts to approximately US$1.77 billion, while the climate-focused RSF program is valued at about US$1.1 billion. Both programs are pending approval by IMF management and its Executive Board, with consideration scheduled for mid-January 2025.
"The programs will be anchored on the DRC Government’s Action Program (2024-28). Key pillars include fostering strong and inclusive growth by restoring peace and security, tackling the cost of living, investing in infrastructure and priority social and agricultural sectors to accelerate economic diversification and stimulate job creation, and by strengthening resilience to climate change," said Mr. Ahokpossi.
Despite ongoing challenges such as conflict in the Eastern region and health issues like the Mpox epidemic, economic growth in DRC is projected to remain above 5% during the program period. This growth is expected to ease inflationary pressures, bringing it back to the Central Bank's target of 7% by 2026.
A major focus of the ECF-supported program is ensuring strict adherence to public expenditure procedures. Reforms will include operationalizing Treasury systems, decentralizing spending authorizations, and developing a resource-based fiscal framework to stabilize public spending against revenue fluctuations from extractive industries.
The IMF also highlighted that these policies could expand fiscal space for addressing essential spending needs such as security, humanitarian aid, education, health, justice, infrastructure investment, and agriculture.
"The DRC is uniquely positioned to play a pivotal role in the global low-carbon transition," noted Mr. Ahokpossi. The country's extensive natural resources provide opportunities for integrating climate considerations into public investment management.
Lastly, improving governance and transparency remains crucial for unlocking private sector-led economic growth in DRC. The IMF emphasized reforms aimed at combating corruption and enhancing digitalization in public services as vital steps forward.
Mr. Ahokpossi expressed gratitude towards various stakeholders involved in these discussions: "The IMF staff would like to express its gratitude to the authorities...for their hospitality, continued support and constructive discussions."