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DRC: Cooperation with AfDB targets projects worth US $ 1.4 billion
The country portfolio of the African Development Bank (ADB) is currently US $ 1.4 billion. It was reviewed with satisfaction during the stay in Kinshasa of President Akinwumi Adesina. Relevant projects are those underpinning the five pillars of the AfDB program that also fit into the DRC government’s priorities.
Finance Minister Henri Yav Mulang discussed the key to allocating this amount of the country portfolio across several sectors. This, before thanking, on behalf of the government, the management of the ADB for all the allowances that are granted to the DRC by this institution in the framework of the partnership.
“To date, this co-operation is characterized by a USD 1.4 billion portfolio, spread over several sectors, namely: (i) transport infrastructure (30%), (ii) energy ( 26%), (iii) water-sanitation (12%), (iv) agriculture (12%), (v) social (8%), (vi) governance (7%), (vii) industry and mining (4%) %) and (viii) finance (1%), “he said.
High 5 of the ADB in the DRC
Thus, the first pillar of the AfDB’s “enlighten Africa” program contains 7 projects in the DRC for a total amount of USD 486 million.
The second pillar, which is “feed Africa”, has 5 projects in the DRC in the agricultural sector for an amount of 160 million USD.
These first two pillars prepare and support the near completion of the third pillar projects, which is “industrializing Africa”.
As for the fourth pillar, “integrating Africa”, chosen as a theme in the last annual meetings organized in Malabo, it informs 7 projects for a total amount of 480 million USD.
“The geostrategic position of our country, in the center of the continent, with 9 neighboring countries, gives it undeniable assets to play the leading roles in the integration of Africa, from North to South and from East to West.” Said Henri Yav.
Finally, the fifth pillar, namely “to improve the living conditions of Africa”, not only that it is the natural consequence of achieving the first four pillars, but also the major projects in the field of electricity, as INGA 3 and in the drinking water service, contribute to its realization.
Advocacy of the DRC
However, the attention of the AfDB President was drawn to the need, in view of the extent of cooperation between his institution and the DRC, to strengthen the staffing of AfDB staff at the resident mission.
Henri Yav insisted: “We think it would be appropriate to complete the National Office with the following key positions: (i) Country Manager, (ii) Energy Task Manager, (iii) Task Manager in Agriculture and (iv) Governance Task Manager. This would be timely, as part of the AfDB’s decentralization policy. ”
Moreover, the DRC intends resolutely to capitalize the political progress and the economic gains of these last years to impel, with the collaboration of its bi and multilateral partners, such as the ADB, the World Bank and the International Monetary Fund, a sustainable revival of its economy.
“The Government of our country is pleased that these projects are in line with the Country Strategy Paper, extended until 2020, pending the finalization of its National Strategic Development Plan (PNSD), on which will be able to rest the constitution of the 15th ADF. “Concluded the Minister of Finance.
As a reminder, the cooperation between the ADB and the RDC dates back to 1973. Since then, projects in the DRC have been evaluated at a total amount of US $ 6.4 billion.
Eric TSHIKUMA
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DRC: FEC’s Lionel Kabeya calls for adoption of Startup Act
Representing the Fédération des Entreprises du Congo (FEC), and at the same time a committed player in the Congolese entrepreneurial ecosystem, Lionel Kabeya took part this Thursday, October 20, 2024, in the inauguration of the Pan-African Data Center named Silikin village.
In his address, Lionel Kabeya delivered a poignant speech on the crucial importance of the Startup Act in the Democratic Republic of Congo, recalling the need to take measures to implement Ordinance-Law no. 22/030 of September 08, 2022 on the promotion of entrepreneurship and startups. This ordinance was adopted in the hope of creating an environment conducive to the emergence of national champions. Unfortunately, two years after its signature, this law remains a dead letter.
Retracing his career path, Lionel Kabeya spoke of the many challenges facing Congolese entrepreneurs.
“Among these challenges are limited access to financing, complex administrative procedures and lack of networks. Difficulties that are holding back the development of many promising initiatives”, he enumerated, before
before calling for urgent action.
“I therefore appeal to the public authorities, to players in the ecosystem and to all Congolese to ensure that the Startup Act is finally implemented. Because this law is an essential lever for creating jobs. Startups are engines of growth and employment. It will also foster innovation. New technologies, new products and services to improve everyone’s lives”, he added.
This expert is of the opinion that this creation will also enhance the country’s attractiveness. A dynamic entrepreneurial ecosystem attracts foreign investors and strengthens the DRC’s international reputation.
Untapped potential
Lionel Kaveya also pointed out that the DRC has immense entrepreneurial potential, with almost 600,000 SMEs by 2022. However, this figure is still well below that of Nigeria, which has over 35 million SMEs.
“The benefits of a Startup Act are not limited to startups. It’s a virtuous circle that benefits everyone: job creation, social impact, improving the daily lives of entrepreneurs and citizens alike. The Startup Act represents a unique opportunity for the DRC to strengthen its economic fabric and become a major player in African innovation. It’s time to turn promises into reality and give Congolese entrepreneurs the means to succeed. “To Pesa Startup Act Chance”, he asserted.
Startup Acts are new, comprehensive legal instruments designed to encourage the creation and development of startups by taking into account their specific needs.
AGNES KAYEMBE
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World: USD 21 billion needed to provide 400 million people with access to electricity
Stakeholders across the globe should adopt an investment agenda of US$21 billion to realize the potential of “off-grid” solar energy, contributing to universal access to energy.
This estimate comes from a new report by the Energy Sector Management Assistance Program (ESMAP), in partnership with the World Bank and the Global Off-Grid Lighting Association (GOGLA).
Entitled “Off-Grid Energy Market Trends Report 2024”, the source notes that mini-grids would have the potential to supply electricity to 500 million people by 2030.
In the opinion of the report’s authors, off-grid solar power is the most cost-effective way to provide electricity to 41% of the world’s people who still have no access to electricity by 2030, and the sector has already secured 55% of new connections in sub-Saharan Africa between 2020 and 2022, where more than 80% of the non-electrified population lives.
Without concrete action, the current trajectory is likely to persist, leaving 660 million people without electricity by 2030.
Despite galloping inflation and extreme currency devaluations, among other factors, over 50 million off-grid solar products were sold in 2022 and 2023.
Market sales reached USD 3.9 billion in 2022 and USD 3.8 billion in 2023.
Flory Musiswa
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DRC: at the end of September 2024, the Treasury recorded a surplus balance of USD 28.3 million
The execution of the Government of the Democratic Republic of Congo’s (DRC) cash flow plan at the end of September 2024 revealed a surplus of 80.8 billion Congolese francs (CDF), or 28.3 million USD, well below the 169.8 billion CDF forecast for this fiscal year.
This counter-performance raises questions about the country’s financial management and budget forecasts.
“At the end of September 2024, the execution of the Government of the Democratic Republic of Congo’s cash flow plan resulted in a surplus of 80.8 billion Congolese francs (CDF), compared with the programmed surplus of 169.8 billion Congolese francs (CDF)”, states the Central Bank of Congo.
The cash-flow plan, designed to rationalize public spending, was put in place following recommendations from the International Monetary Fund (IMF).
Experts believe that this surplus could be attributed to less effective revenue mobilization than expected.
Fluctuations in the prices of raw materials, essential to the Congolese economy, also had an impact on forecasts.
However, the Congolese government has promised to improve transparency and management of public finances. Reforms are underway to strengthen revenue collection and optimize spending.
Critics also point to a lack of anticipation in the face of economic challenges. The need for better budget planning has become apparent to avoid such deviations in the future.
International support, notably from the IMF and the World Bank, remains crucial. These institutions condition their aid on structural reforms and better economic governance.
The DRC must therefore navigate cautiously in this uncertain economic context.
The current surplus could provide an opportunity to strengthen budgetary capacities, but this will depend on the central government’s compliance with its financial commitments.
Although the cash surplus is a positive sign, it must be interpreted with caution. The authorities must ensure that it does not mask structural weaknesses in public finance management.
Mitterrand MASAMUNA
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