IMF Staff Concludes Visit to the Republic of Congo

IMF News, November 3, 2023

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IMF mission led by Roland Kpodar visited Brazzaville from October 19 to November 02.
Discussions were held under the fourth review of the authorities’ program supported by the IMF Extended Credit Facility (ECF) approved by the IMF Executive Board on January 21, 2022.
End-of-mission statement issued at the end of the visit; completion of the review would be subject to approval of the IMF Executive Board.
Virtual discussions will continue to finalize implementation details for reaching a staff-level agreement.

Economic growth is on track to reach 4 percent in 2023.
Production in the oil sector recovered in the first semester after three years of contraction, driven by a new oil field, an uptick in investments, and the resolution of technical issues that were impeding production.
Private investment and consumption are gaining momentum, supported by robust performance in agriculture, food manufacturing, utilities, construction, and services.
Economic growth is expected to strengthen and reach an average 4 percent in the medium-term, with the non-oil sector being the main driver of growth.

Significant progress was made on policy measures to address fiscal consolidation and advance key structural reforms.
Priorities identified by the mission include:
- Boosting domestic revenue mobilization by streamlining tax exemptions.
- Prioritizing critical social spending and investment in key infrastructure.
- Rationalizing energy subsidies, while strengthening mitigating social measures to help the most vulnerable.
Continued efforts are needed to support implementation of structural reforms to:
- Strengthen public investment management.
- Improve governance.
- Support fiscal consolidation.
The overarching aim is to maintain public debt at sustainable levels, redirect spending towards social spending and essential infrastructures, and provide a sound basis for a stronger and more diversified economy.

“The IMF team welcome the authorities’ renewed commitment to implement policies needed to maintain macroeconomic stability, promote inclusive and sustainable growth, and to safeguard fiscal and debt sustainability.”
“The team is grateful to the authorities for the open and constructive discussions.”

Press Release No. 23/376 — November 3, 2023