Towards the conclusion of a formal agreement with the International Monetary Fund (IMF), DR Congo has committed itself to implementing reforms related to macroeconomic and structural policies. It will also have to define, with the IMF, the specific instruments used to monitor progress towards the objectives set. Preparations are intensifying between Kinshasa and Washington.

These issues were raised by Finance Minister Sele Yalaghuli and IMF Executive Director for Africa II Group (including DR Congo) Mohamed Lemine Raghani during a working meeting on Tuesday, October 15, 2019 in Washington DC.

« These are commitments to reforms in public finances, the financial sector, monetary policy, the business climate, governance, etc. They are quite classic and usual. I think that the Government of DR Congo is in a good position to deepen the partnership with the IMF, » Mohamed-Lemine reassured us exclusively on Top Congo FM and Zoom Eco.

IMF Conditionality Principle

It is logical that any financial support from the IMF requested by one of its member countries should be subject to conditionality. This includes a series of commitments to enable, in the specific case, the Congo to resolve its balance of payments problems without resorting to measures that would undermine national or international prosperity.

Moreover, experts from the Bretton Woods Institution explain, the agreed policies also have the advantage of safeguarding IMF resources by ensuring that DR Congo’s balance of payments is strong enough to allow it to repay the loan.

These measures to improve economic and financial governance (essential for achieving the macroeconomic objectives of the formal programme) have one ultimate goal, namely to restore balance of payments sustainability and macroeconomic stability while laying the foundations for sustainable and high quality growth and poverty reduction.

J’ai eu des échanges fructueux en marge des #IMFMeetings2019 avec l’Administrateur de la #RDC au @IMFNews, le Dr. Mohamed LEMINE RAGHANI, au sujet des perspectives de reprise de programme formel avec le #FMI. @des_rdc pic.twitter.com/NtjV4Y2nU2

— Sele Yalaghuli (@SYalaghuli) October 15, 2019

Congo DR on the right track

The IMF Executive Director for Africa Group 2 was persuasive about the procedure initiated by DR Congo, as several IMF missions were carried out to mark the ground for Article IV consultations. Their successful implementation thus strengthens the close collaboration at the technical level between the IMF and the Democratic Republic of Congo.

It is up to him to specify: « we are in a good dynamic and very optimistic about the prospect of moving forward. But also to consider a partnership, in the form of a programme, that will shape the Congolese Government’s economic and social policies. »

To be Read : DRC: Preparations for the resumption of the formal programme with the IMF are intensifying

At this stage of the preparations, every effort is being made to ensure that the socio-economic policy description of the Ilunkamba Government’s programme is included in the letter of intent, to which the memorandum of economic and financial policies will be attached.

At the same time, a series of IMF evaluations will be carried out in the Democratic Republic of Congo, the positive results of which would give credibility to the IMF’s efforts to conclude a formal agreement.

« I can’t give you a specific date. But I hope that in the near future, we will turn this partnership into a program, » Mohamed-Lemine concluded.

According to experts, the most realistic hypothesis in terms of maturity is based on a period of 6 to 9 months from January 2020.

Eric TSHIKUMA, from Washington DC