DRC: the 2024 rectifying finance law forecasts 27,195.6 billion CDF in internal revenues

The Democratic Republic of Congo (DRC) recently adopted a rectifying finance law for the 2024 fiscal year, setting domestic revenues at 27,195.6 billion Congolese francs (CDF), equivalent to 9.5 billion US dollars at the official exchange rate of 2,842 CDF to the US dollar.
This represents a 6.9% increase on the initial forecast of 25,446.6 billion Congolese francs (CDF).

This budgetary revision is mainly attributed to the renegotiation of the Sino-Congolese contract, which should bring in significant additional budgetary resources.

This law comes in a complex economic context in which the DRC is seeking to stabilize its public finances while meeting growing development needs.

Cumulative internal revenue as at October 24, 2024 amounted to 79.1% of the annual forecasts set out in the State’s cash flow plan. This indicates an encouraging performance, although the figures do not yet take into account the resources expected from the Sino-Congolese contract for October 2024.

The renegotiation of the Sino-Congolese contract is a key element of this amending law. This contract, which involves Chinese investment in various sectors in the DRC, is expected to generate additional income for the Congolese government.

The country’s authorities hope that these funds will not only help meet budget targets, but also finance crucial infrastructure projects.

Analysis of budget performance shows that revenue mobilization has exceeded expectations.

In recent months, the DRC government has succeeded in mobilizing significant resources thanks to improved fiscal management and targeted reforms. However, there is still some way to go to achieve the targets set for the year.

Despite these advances, a number of challenges remain. Dependence on external revenues and the volatility of world markets may affect the country’s financial stability.

In addition, the need for transparent and effective governance is crucial to ensure that the funds generated are used optimally. Economic forecasts for the DRC remain mixed.

Although the increase in internal revenues is a positive sign, the country must continue to diversify its sources of income and improve its business environment.

Efforts to enhance transparency and combat corruption will also be key to attracting foreign investment.

The tax authorities played an essential role in the collection of public revenues.

The Direction Générale des Impôts (DGI) performed particularly well, exceeding its collection targets. This testifies to an increased willingness to respect tax obligations and improve compliance among taxpayers.

Dialogue between the Congolese government and economic players is crucial to ensuring the successful implementation of this rectifying finance law.

Consultations with businesses and citizens can help identify priorities and adjust tax policies accordingly.

The Amending Finance Law for 2024 represents an important step for the DRC in its quest for more rigorous financial management and sustainable development.

The Government’s ability to effectively mobilize domestic resources will be decisive in meeting current and future economic challenges. The expected results of the Sino-Congolese contract could also play a key role in improving the country’s economic conditions.

Mitterrand MASAMUNA