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.

The 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.

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