Democratic Republic of the Congo: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of the Congo

IMF Staff Country Reports, September 4, 2019

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Canonical URL: Democratic Republic of the Congo: 2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of the Congo

Real gross domestic growth reached 5.8 percent in 2018, buoyed by stronger copper and cobalt prices and increased production.
Major risks identified:
- an escalation of the Ebola epidemic;
- fiscal loosening leading to monetization of budget deficits;
- a relapse in copper and cobalt prices;
- an intensification of ongoing armed conflicts;
- resistance to reform from vested interests.
Transparency and accountability in the management of natural resources are major challenges facing DRC.

Step-up revenue mobilization, notably by simplifying taxes and integrating mining revenue into the central government Treasury.
Enhance transparency through:
- public tendering for the sale of mining assets;
- publication of audited financial statements of state-owned enterprises;
- greater monitoring of public assets.

Mining sector central to recent growth dynamics (copper and cobalt price and production effects).
Fiscal and monetary risks tied to deficit monetization and commodity price volatility.
Governance weaknesses around natural resource management and state-owned enterprise transparency.