The Democratic Republic of Congo (DRC) has received a credit rating upgrade, moving from 5.1 to 5.5, as reported by the pan-African rating agency Bloomfield. The improvement is recorded for the years 2022 and 2023 and analysts say it is a testament to the country’s high growth rates within the sub-Saharan region.
Over the course of a year, the DRC gained 40 basis points, which has positively impacted its economic profile. The second edition of the Congolese Country Risk Conference recently took place in Kinshasa on 28 June. This event was specifically designed to attract more investments and establish the DRC as a sustainable success.
Nicolas Kazadi, the DRC’s finance minister, expressed his support for the conference, stating, “This is an endogenous exercise. The Democratic Republic of Congo wants it. It is an opportunity for dialogue between all the stakeholders, first and foremost the private sector.” He also highlighted that this event would provide an opportunity for external observers, such as rating agencies, to reassess the country’s progress.
Despite these positive developments, the DRC still faces significant challenges, including inadequate infrastructure, arbitrary taxes, and insecurity in the eastern part of the country. Ethnic tensions and conflicts over vital natural resources have led to the loss of six million lives in eastern DRC since 1996. The presence of instability poses a hindrance to potential investors.
However, the government has implemented various reforms in recent years and placed a strong emphasis on macroeconomic performance, responsible management of public finances, and stabilization of the financial system. These factors are crucial for building the country’s credibility, especially in the eyes of private investors, and ensuring that social issues, job creation, and wealth generation receive due attention.
Marie Chantal Kaninda, the Chief Executive Officer of Glencore in the DRC, praised the government’s initiatives, saying, “Generally speaking, I would say that this is a very good thing and that these are very good initiatives. Because you can feel the government’s desire to do the right thing.”
In order to diversify its economy, the DRC aims to move beyond its vast mineral deposits. To support this ambition, banks must advocate for effective and transparent policies. Gancho Kipulu Baya, the Country Head of Rawbank, highlighted the major challenge of transparency, specifically regarding traceability for exported products. Baya stressed the importance of state support in ensuring transparency and traceability to secure adequate financing.
An exciting development on the horizon is the inauguration of a new financial centre in Kinshasa, scheduled for December. This centre, part of a larger project involving five towers and a conference centre spanning 90,000 m2, has been made possible through an investment exceeding $300 million (€275 million). It aims to provide interconnected services and optimize the Ministry of the Budget and the Ministry of Finance’s operations. These public-private partnerships are shaping the future financial and urban landscape of the Congolese capital.
Turhan Mildon, the Chairman of the Board at construction giant Milvest, shared his enthusiasm, stating, “It’s going to be like a financial hub and a governmental hub of the DRC, situated in the heart of the country. Additionally, the Kinshasa airport project will serve as the central African region’s hub, with a capacity of eight million passengers and one of the largest cargo terminals on the African continent.”
Despite the challenges it faces, such as inadequate infrastructure and insecurity, the Democratic Republic of Congo (DRC) has made significant strides in improving its credit rating and economic profile. The recent credit rating upgrade from 5.1 to 5.5, as reported by Bloomfield, is a testament to the country’s high growth rates in the sub-Saharan region.
The DRC has been proactive in attracting investments through initiatives like the Congolese Country Risk Conference, which serves as a platform for dialogue and collaboration between stakeholders, including the private sector. The government’s commitment to implementing reforms, focusing on macroeconomic performance, responsible financial management, and financial system stability, has further enhanced the country’s credibility.
Transparency and diversification are key goals for the DRC’s economic development. The upcoming inauguration of a new financial centre in Kinshasa, supported by substantial investment, is expected to contribute significantly to the country’s growth. Additionally, the DRC aims to optimize its agricultural policy to capitalize on its vast fertile land and reduce dependency on imported food products.
While challenges remain, including ethnic tensions, conflicts over resources, and the need for improved infrastructure, the DRC is actively working towards establishing itself as a prominent player on the international stage. Through partnerships with international organizations and the support of foreign companies, the country is paving the way for sustainable economic growth and development.
With a combination of reforms, transparency, diversification, and strategic investments, the Democratic Republic of Congo is making progress towards creating a more prosperous and stable future for its citizens and attracting valuable investments from around the world.
