Rationalizing tax incentives in the Democratic Republic of Congo (DRC) could make tax policies more effective and support future reductions in tax rates, while maintaining resources for development and social spending. This is according to the World Bank DRC Economic Update released today.
The report, titled "Reassessing Tax Incentives - Falling Short of Promised Growth and Equity," notes that the DRC recorded a GDP growth rate of 6.5% in 2024, driven by mining activities such as copper and cobalt extraction. While this figure is among the highest in Africa, it falls short of the 7.9% average seen from 2021 to 2023.
Despite strong economic performance, the report points out that there has not yet been significant progress in reducing poverty or creating jobs. The country has managed to keep macroeconomic stability through fiscal discipline and avoiding monetary financing of deficits. Inflation remains high but declined to 8.6% as of June 2025. The report highlights that the DRC still holds considerable potential for development with a positive outlook for its economy.
A special section in the update analyzes tax incentives, their history, and impact on public finances. Tax revenues represent only 12.5% of GDP in DRC compared to an average of 16% across Sub-Saharan Africa (SSA). The report estimates that tax incentives are responsible for a revenue loss equal to about 5% of GDP—one-third of total tax revenue or three times what is spent on health—and do little to benefit vulnerable populations.
“The DRC has strong economic potential. To achieve inclusive and sustainable growth, the country should boost domestic revenue, streamline tax incentives, and focus on social services and infrastructure investment,” said Albert Zeufack, World Bank Country Director for Angola, Burundi, the Democratic Republic of Congo (DRC), and Sao Tome and Principe.
The report recommends making fiscal policy simpler, harmonizing different tax rates across sectors, replacing profit-based with cost-based incentives, and improving transparency as well as evaluation methods regarding these incentives.
For further information:
In Kinshasa: Marinette Kegbia, +243 982 992 290, mkegbia@worldbankgroup.org
In Washington: Daniella Van Leggelo Padilla,dvanleggelo@worldbank.org