DRC: total public securities outstanding amounted to CDF 2,624.8 billion at October 24, 2024

The Congolese government’s total outstanding public debt reached 2,624.8 billion Congolese francs (CDF) on October 24, 2024, reflecting improved public debt management in the Democratic Republic of Congo.

This figure reflects the Government’s commitment to mobilizing financial resources to support its development projects, while effectively managing its obligations.

The results of the October 22, 2024 auction show that the Treasury raised USD 55 million out of an expected USD 50 million for two-year Treasury Bonds. This success is the result of strong demand, with bids reaching USD 75 million. This indicates growing investor interest in Congolese government securities.

At the same time, the Government raised all the bids received for the Obligations indexées du Trésor, totalling 5 billion Congolese francs (CDF), whereas the amount announced was 50 billion Congolese francs (CDF). This underperformance can be explained by the instability of the Congolese franc against the US dollar in recent years.

In terms of repayments, the Treasury repaid a total of 2,469.6 billion Congolese francs (CDF), including 1,532.3 billion CDF in Treasury Bills and 937.3 billion CDF in Treasury Bonds. These repayments are essential to maintain investor confidence and ensure liquidity on the market.

The total outstanding amount of government securities is a key indicator of the country’s financial health.

Year-on-year, it reflects the Government’s efforts to diversify its sources of financing and reduce its dependence on traditional tax revenues. This is particularly important in an uncertain global economic climate.

The economic situation in the DRC remains complex, with challenges linked to budget management and inflation. The country’s authorities must navigate between the need to invest in development and the prudent management of public debt.

Increasing the stock of government securities could be seen as a strategy to attract more foreign investment.

In the future, the Congolese government should continue to strengthen its public debt issuance strategy. This includes not only improved issuance conditions, but also transparency in the management of the funds raised. Clear communication with investors will be essential to maintain their confidence.

Transparency in the management of public securities is crucial to avoid problems of corruption and ensure that funds are used efficiently. In addition, the Government must put in place robust mechanisms to monitor the use of resources and report back to citizens.

The DRC government should also consider organizing regular forums with investors to discuss the opportunities and challenges associated with public securities. This could help strengthen relations between the public and private sectors and foster a positive investment climate.

The overall stock of public securities in the DRC reflects the Government’s increasing commitment to improving its financial management and attracting investment. However, it is imperative that these efforts are accompanied by increased transparency and effective communication with stakeholders.

The road to sustainable financial management is still long, but these recent developments represent a step in the right direction.

Mitterrand MASAMUNA