The International Monetary Fund (IMF) Executive Board has completed the first review under the Extended Credit Facility (ECF) Arrangement for the Democratic Republic of the Congo (DRC), initially approved on January 15, 2025. This completion enables an immediate disbursement of approximately US$261.9 million to address balance-of-payment needs, bringing total disbursements so far to about US$523.4 million.
The DRC is currently facing significant challenges due to intensified armed conflict in its eastern region since late 2024. The ongoing hostilities have resulted in substantial loss of life and disrupted access to essential services such as food, water, and electricity. Diplomatic efforts continue to seek a resolution, with a recent peace agreement signed between the governments of the DRC and Rwanda on June 27, 2025.
Despite these challenges, economic activity remains robust with GDP growth at 6.5 percent in 2024, primarily driven by mining activities. Inflation rates have decreased significantly from 23.8 percent at the end of 2023 to [8.5] percent by June 2025.
Performance under the ECF program was mixed due to increased budgetary strains from conflict-related spending overruns. Although revenue collection was strong, the domestic fiscal deficit reached 0.8 percent of GDP in 2024 against a target of 0.3 percent due to security expenditures and public investments related to the conflict escalation.
"The Democratic Republic of the Congo (DRC) has been confronted with heightened security challenges since late 2024," said Mr. Okamura, Deputy Managing Director and Chair at the IMF Executive Board meeting.
He noted that despite these difficulties, "the macroeconomic environment of the DRC remained broadly stable." However, he cautioned that "the economic outlook remains positive but is fraught with downside risks related to...potential escalation of geopolitical conflicts."
Budget implementation continues to be challenging amid security concerns but is expected to align with initial projections by 2026 through enhanced revenue mobilization measures and strengthened budget processes.
The Central Bank's monetary policy helped reduce inflation rates significantly while accumulating international reserves as current account deficits narrowed.
Mr. Okamura highlighted ongoing efforts: "Efforts must continue...to enhance governance and safeguards...and ensure adequate recapitalization" while stressing commitment towards structural reforms including anti-corruption measures and improving transparency within national statistics frameworks.