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Congo’s Fragile State Hampers Anti-Corruption Efforts

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Kinshasa - Despite being one of the poorest countries in the world, the Democratic Republic of Congo (DRC) is rich in natural resources, including copper and cobalt. However, its fragile state and political instability continue to hinder anti-corruption efforts, according to a recent report.

A Fragile State

The DRC has been classified as having the highest MLT political risk category 7/7, due to its weak institutional capacity, poor governance, and high levels of corruption. The country’s economic growth projections are strong, with a projected 6% annual growth rate over the coming years, but this is largely driven by the mining sector.

Challenges Ahead

The IMF has implemented an Extended Credit Facility program in the DRC, which aims to provide financial support in exchange for structural reforms, including anti-corruption measures. However, the implementation of these reforms is being hindered by the run-up to presidential elections in 2023 and capacity development issues.

Economic Challenges

  • The country’s domestic savings rate is traditionally low, but it is expected to increase over the coming years, which could improve its growth potential.
  • Despite improved Covid-19 vaccine availability, deep mistrust and scepticism remain major obstacles to widespread vaccination in the DRC.
  • The mining sector remains a key driver of the economy, with 90% of official export revenues stemming from mining and oil exports. However, this also makes the country vulnerable to terms of trade shocks and great instability.

Fiscal Space

Fiscal space for public investment and development spending is narrow due to limited mining-related revenues that end up on the state budget and curbed access to external financing and donor support. The government has set a goal of increasing public revenues from 10% of GDP in 2021 to 13% by 2024, but this will require far-reaching anti-corruption measures and reforms.

Conclusion

While the DRC has made some progress in recent years, its fragile state and political instability continue to hinder its ability to implement effective anti-corruption efforts. The country’s economic growth projections are strong, but it remains vulnerable to external shocks and high levels of corruption.

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