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DRC: analysis of the IMF’s economic and financial situation

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DRC: analysis of the IMF's economic and financial situation

Congo DR is facing considerable development challenges despite its rich natural resource base. For the International Monetary Fund (IMF), the first peaceful alternation of power at the top of the state offers the opportunity to initiate reforms to reduce widespread poverty, create jobs and promote inclusive growth.

IMF Executive Directors, at the end of the August 26 meeting, acknowledged the need to consolidate and capitalize on gains from prudent macroeconomic policies that helped to stimulate the recovery from falling export prices between 2016 and 2017.

According to IMF estimates, GDP growth is expected to fall to 4.3 percent in 2019 as copper and cobalt prices fall from their peak in 2018. A budget deficit of 0.2 percent of GDP is forecast and mining revenues are lower than those of 2018.

« The current account deficit is expected to decline 3.5 percent of GDP, with the central bank’s foreign exchange reserves rising to 3.7 weeks of imports. According to current policies, revenues in the DRC will remain well below the average for sub-Saharan Africa despite the positive impact of the revised Mining Code of 2018. The proliferation of taxes and fiscal institutions; generalized tax exemptions; a narrow tax base; and long porous borders are the underlying factors, « says the board of directors.

The assessment made by the IMF’s directors reveals that the Congolese state’s budget forecasts tended to deviate widely from the results, thus undermining the credibility of the budget process and parliamentary oversight. While emergency spending procedures have been widely used and large domestic arrears have been accumulated.

On the other hand, the IMF’s board of directors argues, monetary policy has been hampered by high levels of dollarization. Hence, the need to ensure the implementation of the new central bank law that was promulgated in 2018 to strengthen the independence of the central bank, increase its capital and strengthen its supervisory capacity of the financial system.

Transparency and accountability in the management of natural resources remain major challenges facing DR Congo. A 2011 decree requiring the Government to publish all mining, oil and forestry contracts has not been fully implemented.

« The audited financial statements of certain government enterprises are not publicly available. The IMF will conduct a governance assessment mission in October, « warned the directors.

As for the business climate, the Board notes that it remains difficult due to a wide range of factors, including the complexity of taxation and judicial vulnerabilities. Weak infrastructure also leads to high production costs.

Emilie MBOYO

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Kinshasa: the Presidential Clinic with a new Pavilion

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Kinshasa: the Presidential Clinic with a new Pavilion

The Presidential Clinic of the Cité de l’Union africaine has a new Pavilion. This building, named after the First Lady of the Republic, Denise Nyakeru Tshisekedi, was inaugurated on Wednesday, September 11, 2019 in Kinshasa, capital of the Democratic Republic of Congo.

The Denise Nyakeru Tshisekedi Pavilion is equipped with the latest generation of state-of-the-art equipment capable of treating a maximum of 100 patients per day. It includes two hospital rooms, two consultation booths, a sampling room, a laboratory and a reception area equipped with 25 seats.

Kinshasa: the Presidential Clinic with a new Pavilion

Two highlights marked the inauguration ceremony presided over by the First Lady.

First of all, the occasional word from the medical director, Dr. Joseph Kangudia Mbaya, who paid tribute to the Head of State, Felix-Antoine Tshisekedi Tshilombo, for his clearly expressed commitment to the country’s overall development, particularly in the health and well-being sector.

This Brigade general indicated that the inauguration of the Denise Nyakeru Tshisekedi Pavilion is in line with the logic of continuing the materialization of an old project to provide the presidential clinic with the necessary and modern infrastructure for its proper functioning.

The symbolic ribbon was cut by the First Lady to the frenetic applause of the medical staff and patients present at the site.

Kinshasa: the Presidential Clinic with a new Pavilion

This ceremony ended with a visit to the various departments of the new pavilion. Denise Nyakeru Tshisekedi signed the guest book marking her visit to the African Union Presidential Clinic, the second since the inauguration of her husband, Head of State Felix Tshisekedi Tshilombo.

Nadine FULA

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DRC: ARCA reminds the respect of article 286 of the Insurance Code!

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DRC: ARCA reminds the respect of article 286 of the Insurance Code!

DOCUMENT] – The Insurance Regulatory and Control Authority (ARCA) in the Democratic Republic of Congo reminds us of the scrupulous respect of article 286 of Law No. 15/005 of 17 March 2015 on the Insurance Code. It published a circular note on 6 September 2019 for the attention of authorised insurance operators. Below, the content:

DRC: ARCA reminds the respect of article 286 of the Insurance Code!

DRC: ARCA reminds the respect of article 286 of the Insurance Code!

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DRC: Bussa notes the invalidity of the orders issued by the temporary worker in Foreign Trade

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DRC: Bussa notes the invalidity of the orders issued by the temporary worker in Foreign Trade

Foreign Trade Minister Jean-Lucien Bussa Tongba has just put an end to a series of flagrant irregularities in certain acts committed during the interim period. The latter violated the Prime Minister’s formal injunction given to the temporary workers on 22 March 2019 to refrain from making arrests pending the installation of the new Government.

Legalistic, the new Minister of Foreign Trade found in the remission files and repeated a series of ministerial orders issued during this period of current business being conducted by the acting minister.

Without, however, annulling them by a contrary act, Jean-Lucien Bussa merely declared them invalid. This means that they are considered null and void.

« Any economic operator concerned by these provisions is requested, as of today, to contact the services of the office of the Minister of Foreign Trade for a review of the files in accordance with the regulations in force« , according to an official press release dated 10 September 2019 received by Zoom Eco.

For Minister Jean – Lucien Bussa, it is a question of maintaining the momentum of the business climate through efficient regulation of imports and exports, in the best interests of the Republic.

It therefore invites the Secretary General for Foreign Trade, the General Directorate of Customs and Excise (DGDA), the Congolese Control Authority (OCC), the General Directorate of Migration (DGM) and the Directorate of the National Programme for Border Hygiene (PNHF), each in its own right, to comply with these provisions and to ensure their prompt implementation.

Emilie MBOYO

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