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DRC: « Establishment of an internal market for government securities », White Paper by Déogratias Mutombo



DRC: "Establishment of an internal market for government securities", White Paper by Déogratias Mutombo

The economic literature of DR Congo has just been enriched with a new book entitled « Establishment of an internal market for government securities. « A white paper written by the Governor of the Central Bank of Congo (BCC), Deogratias Mutombo Mwana Nyembo. The book was published on Friday, October 4 in Kinshasa, by the president of the Federation of Congolese Enterprises (FEC), Albert Yuma Mulimbi.

This white paper by Deogratias Mutombo, prefaced by Professor Evariste Mabi Mulumba, is devoted to the establishment of an internal market for government securities in the DRC.

It is an advocacy and information source both on the functioning of capital markets and on the economic and technical prerequisites for the implementation of an organised financial market in a particular well-defined economic environment, namely the Congolese economy.

Published in the Weyrich edition (Belgium), this book highlights 30 proposals for action to accelerate the development of the financial sector and meet the challenge of emergence. This is done in four chapters.

DRC: "Establishment of an internal market for government securities", White Paper by Déogratias MutomboThe first chapter reviews the issuance of public securities and the evolution of public debt in the DRC. Chapter 2 provides an overview of public debt management in the DRC. The third chapter deals with the legal and governance framework for government securities in the DRC. And in the last chapter, the author discusses the policy implications of government securities issues.

The 30 proposals made in the book summarize the author’s vision for the consolidation of the financial system, which is conducive to economic diversification, growth and inclusive development.

Therefore, Deogratias Mutombo believes, « it is up to every compatriot to appropriate it in order to materialize it. It is only under this condition that the country will see its emergence accomplished ».

Through a retrospective analysis of the causes of the failures of the economic programmes implemented in the Democratic Republic of Congo from the Independent State of Congo (EIC), Deogratias Mutombo highlights the inadequacy of financial resources as the underlying cause of these setbacks. Solving this problem, the author believes, is one of the essential keys to align the Congolese economy on the path of emergence.

For the author, the Congolese government’s determination should lead it to find other means of financing to fill the gap due to the shortfall in current income through borrowing, in this case the issuance of Bonds and Treasury bonds on the local financial market, as a priority.

DRC: "Establishment of an internal market for government securities", White Paper by Déogratias Mutombo

View of the ceremony that took place in the amphitheater of the Congo River Hotel by Blason in Kinshasa

The objective of the approach is to direct the savings collected towards financing infrastructure and covering public deficits, in order to boost economic development and accelerate poverty reduction. In this context, for a country like the DRC, the solution would be to mobilize public resources of at least 20% of GDP, of which 30% should be allocated to public investment.

Thus, the author’s vision is to place the country in a strong financial position by equipping it with the solid financial and institutional capacities to achieve, in an accelerated and sustainable manner, its economic development objective.

The author therefore believes that it is high time for the Congolese state to support economic activity through an ambitious programme of public investment in infrastructure, in order to build confidence and attract private investors.

Olivier KAMO

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DRC: the « education » project will be submitted to the WB Board of Directors in February 2020



DRC: Education project to be submitted to World Bank Board in February 2020

The Government’s emergency project on free « Basic Education » will be submitted to the World Bank’s Executive Board in February 2020. According to the Vice President for Africa, Hafez Ghanem, preparations are being intensified to ensure that this deadline is met.

« We are working very quickly on this education project. And we plan to bring this project to our Council as early as February. Regarding the height of the amount, we are in the process of making evaluations. It’s going to be a big amount, around a billion US dollars, » he told reporters at the end of his meeting with the Congolese delegation led by Finance Minister José Sele Yalaghuli.

Indeed, this emergency project is part of World Bank support for the Government’s efforts to provide free basic education, the implementation of which began last September.

To relieve the pressure on public finances to allocate at least US$25-37 million each month, the World Bank has pledged to support the Congolese Government in this regard. line with the commitment of the Head of State, Felix Antoine Tshisekedi, and the President of the World Bank, David Malpass, the Minister of Finance, José Sele Yalaghuli, has clearly indicated the Congolese Government’s firm desire to see the process speed up so that funds are released within an acceptable time frame.

« This is the right time for the partners of DR Congo to match the real political will of the Congolese national executive to meet one of the aspects of the World Bank’s mandate, namely: the fight against poverty, » he said at a previous meeting with the World Bank delegation led by Jean-Christophe Carret.

With regard to the health coverage programme, Hafez Ghanem reiterated his institution’s commitment to continue working alongside the Democratic Republic of Congo, particularly in the fight against Ebola.


He added: « We will also work with the Government on a new health programme to strengthen basic health centres and improve access to health across the country. »

However, he gave no indication of the amount of funding for this health programme, especially since it is currently under study.

As a reminder, the delegations of DR Congo and the World Bank held a working meeting on Thursday 17 October 2019 in Washington DC. Experts from both sides, led by José Sele Yalaghuli and Hafez Ghanem respectively, reviewed ongoing projects within the World Bank portfolio and those under preparation.

In addition to education and health, projects related to infrastructure, connectivity (roads) and the digital economy were also discussed.

Eric TSHIKUMA, from Washington

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DRC: the three axes of the Accelerated Programme to Combat Poverty and Inequality



DRC: the three axes of the Accelerated Programme to Combat Poverty and Inequality

The President of the Republic launched his Accelerated Programme to Combat Poverty and Inequality in Kinshasa on Wednesday 16 October at the site of my valley in the commune of Mongafula.

This Programme aims to ensure that twenty million Congolese living in rural and peri-urban areas in the 145 territories of our country leave poverty or extreme poverty within the next 5 years.

It has three components: improving rural and peri-urban populations’ access to basic socio-economic infrastructure and services; promoting rural and peri-urban economies; and building capacity in managing for development results at the national, provincial and local levels.

The first component aims to increase the population’s access to basic services such as housing, electricity through the promotion of micro hydroelectric power plants, drinking water, health and agricultural access roads. This list is not exhaustive.

The second component aims to ensure that people in villages and peri-urban neighbourhoods have improved and stable sources of income and that they consume at least one balanced meal per day. This component will place particular emphasis on promoting inclusive agricultural sectors.

The third component aims to develop a culture of autonomy, which will result in the appropriation of development by the beneficiary populations, the strengthening of self-esteem, meritocracy and a motivated attachment to their living environment.

Substantial resources for this ambitious program!

« The Programme, the main components of which I have just unveiled, requires ambitious funding over several years, » said Félix Tshisekedi, aware of these challenges. In the face of such an ambition, the Head of State asks the Government to spare no effort to explore all possible avenues likely to provide the means for this saving action for the people.

It is with this in mind that the last Council of Ministers adopted the hypothesis of a budget reaching the 10 billion mark.

In addition, Félix Tshisekedi intends to engage the country in far-reaching reforms ranging from the rebuilding of the state with justice as the epicentre to the sectors of national life.

This is how he makes his main focus the fight against anti-values, particularly corruption, embezzlement of public funds, tax fraud, smuggling and tribalism. And all means will be used to ensure that all State revenues are channelled into the Public Treasury.

Finally, to make this programme a success, the President of the Republic is counting on the involvement of all his compatriots, beyond the divisions.

Harris Kasongo

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DRC: Economic and financial situation at the heart of a meeting at the World Bank



DRC: Economic and financial situation at the heart of a meeting at the World Bank

The economic situation in DR Congo is the focus of a meeting on Thursday 17 October 2019 at the World Bank’s headquarters in Washington DC. The Minister of Finance, José Sele Yalaghuli, leads the delegation of Congolese experts.

In his presentation, the national silversmith described a macroeconomic framework for DR Congo that has remained stable.

Despite accumulated deficits of 420 billion Congolese francs at the end of September 2019, domestic prices and the exchange rate fluctuated slightly. And at this rate, the Government reports inflation of 4.2% at the end of December 2019, which is below the 7% end of period forecast level.

Referring to the strategic and political orientations of the Government of the Democratic Republic of Congo, Minister Sele Yalaghuli cited in particular the tightening of public spending in order to limit deficits and the subscription of treasury bonds with the ambition of mobilizing 150 billion CDF by the end of 2019 to fill the gaps.

The first results are promising, especially since a small monthly budget surplus was recorded at the end of September 2019.

Moreover, added Sele Yalaghuli, the third orientation concerns the Government’s firm commitment to pursue the implementation of reforms with the support of partners to remove obstacles sector by sector and to be able to remedy them.

With regard to cooperation between the Congo DR and the Bretton Woods institutions. After the break-up of the formal programme with the IMF in 2012, the ongoing recovery strategy of the current discussions is based on two options.

First, the interim program. Then, the formal program. If the first one will cover the preparation period of the second one, the conclusion of the formal programme could take place after the third quarter of 2020.

« This is the right time for the partners of DR Congo to match the real political will of the Congolese national executive to meet one of the aspects of the World Bank’s mandate, namely: the fight against poverty, » José Sele Yalaghuli said, addressing the World Bank delegation led by Jean-Christophe Carret.

With the World Bank, experts from DR Congo are working on preparations and options to initiate disbursement of funds for the Government’s priority sectors on are: basic education and universal health coverage.

This interaction with World Bank teams continued, with Hafez Ghanem, Vice President in charge of the Africa region, as the focus.

Eric TSHIKUMA, from Washington DC

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