COVID-19: How the pandemic has impacted the DRC’s growth outlook

The Democratic Republic of Congo recently lifted a nationwide state of emergency that was put in place in March to combat the spread of COVID-19. The decision came after a decline in the number of new infections and deaths in the country. However, the pandemic is still expected to have a significant impact on the country's economy, with a projected recession of negative 2.2% in 2020, primarily due to weaker exports caused by the global economic downturn. The nation heavily relies on exports from the mining sector, timber, and crude oil, making its domestic economy vulnerable to external shocks. The COVID-19 crisis has highlighted the need for the country to focus on developing its internal production capacity, especially in essential sectors like food and commodities. Al Kitenge, a strategic and economic analyst, emphasized the challenges faced by the DRC's economy, particularly the country's heavy dependence on informal businesses and limited government resources. The government is working to stabilize the situation and secure support from international partners to revive the economy post-pandemic. However, the lack of financial reserves and a sovereign fund poses a significant obstacle in the path to economic recovery. The impact of the pandemic has been especially devastating for small traders and SMEs in the country, leading to the closure of businesses and severe economic disruptions. The government is now focused on creating an inclusive economy that supports and promotes the growth of small businesses. Despite facing a low debt to GDP ratio of below 10%, the DRC struggles to access capital from the market. International financial institutions like the World Bank and IMF have advised against borrowing more money, urging the government to focus on investing in productive economic projects to stimulate growth. Kitenge also highlighted a major infrastructure project in the country, a hydroelectric plant being constructed in collaboration with Chinese and Spanish consortiums, which is expected to boost the economy. However, he stressed the importance of intensifying efforts in agriculture and rural development to ensure broad-based economic growth and inclusion of all citizens in the country's economic activities. The government's commitment to post-COVID economic transformation and resilience is crucial in navigating the challenges posed by the pandemic and charting a path towards sustainable growth and development. While uncertainties loom over the near-term economic outlook for the DRC, proactive measures and strategic investments will play a key role in shaping the country's recovery and future prosperity.