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East Africa

In Summary

  • The Executive Board of the International Monetary Fund (IMF) approved today a 38-month arrangement for The Democratic Republic of the Congo under the Extended Credit Facility (ECF), in the amount of US$1,729 million (125 percent of quota), as well as a 38-month arrangement under the Resilience and Sustainability Facility (RSF), in the amount of US$1,038 million (75 percent of quota).
  • The ECF-supported program aims to preserve macroeconomic stability, improve the business climate, enhance governance and transparency, and foster inclusive growth.
  • The RSF-supported program will support DRC in advancing its climate adaptation and mitigation agenda while consolidating its role as a “solution country” in the transition to a low-carbon global economy.

Washington, DC: The Executive Board of the International Monetary Fund (IMF) approved today a 38-month arrangement for The Democratic Republic of the Congo under the Extended Credit Facility (ECF), in the amount of SDR1,332.5 million (about US$1,729 million or 125 percent of quota), as well as a 38-month arrangement under the Resilience and Sustainability Facility (RSF), in the amount of SDR799.5 million (about US$1,038 million or 75 percent of quota).

Economic activity remained strong in 2024, with real GDP growth projected at 6.0 percent. Inflation, which peaked at 23.8 percent at the end of 2023, decelerated to 12.8 percent in November 2024 and continued its decline in recent weeks. The domestic fiscal balance is projected to have narrowed in 2024, as stronger-than-expected revenue mobilization was only partially absorbed by higher-than-anticipated wage bill and exceptional security expenditures. The current account deficit also is projected to have narrowed, thereby helping strengthen international reserves.

The new ECF-supported program aims to build on the progress made under the 2021-2024 ECF program completed in July 2024, by preserving macroeconomic stability, improving the business climate, enhancing governance and transparency, and fostering inclusive growth, The ambitious endeavor entails among other things continued strong revenue mobilization efforts and deeper public financial management reforms, with a focus on enhancing efficiency and accountability in the use of public resources.

The RSF-supported program aims to help DRC realize its strategic vision as a “solution country” in the transition towards a low-carbon global economy, while strengthening its resilience to climate shocks.

At the conclusion of the Executive Board’s discussion, Mr. Okamura, Deputy Managing Director, and Chair stated[1]:

“The economy of the Democratic Republic of the Congo (DRC) has remained resilient with robust economic growth, declining inflation and fiscal deficits despite the significant challenges it faces, including a recent pickup in decades-long armed conflicts in its eastern part and a public health crisis linked to the Mpox outbreak. These challenges have imposed heavy human and economic costs to the DRC. The outlook is positive, though subject to substantial downside risks, including from the above-mentioned conflicts. 

“The authorities have made progress under the 2021 ECF, thereby helping achieve a stronger-than-expected economic growth and a build-up of foreign exchange reserves. However, macroeconomic policy, structural and climate-related challenges remain and require deeper reforms.

“Under the new ECF arrangement, the authorities plan to boost growth and create fiscal space for priority investment and social spendings. This would be achieved by strengthening domestic revenue mobilization and stepping up fiscal discipline, including through a stricter adherence to normal expenditure chain procedures, the operationalization of the Directorate-General of the Treasury and Public Accounting, the decentralization of payment authorization, and the setting up a Treasury Single Account. A gradual transition toward a resource-based fiscal framework, to insulate the budget from volatile mining revenues, and to curb procyclicality of spending would be important. The authorities also aim to improve the business climate, governance, and transparency, and more decisively tackle corruption.

“The Central Bank of the Congo (BCC) has appropriately maintained a tight monetary policy stance to combat inflation, which has consequently declined substantially in 2024. The authorities aim to continue efforts to accumulate international reserves, strengthen the monetary policy implementation framework and the foreign exchange intervention strategy, to help enhance the transmission of monetary policy and alleviate pressures in the foreign exchange market.

“The new RSF arrangement will provide the necessary support to navigate the ongoing challenges and advance the country's climate adaptation and mitigation agenda while consolidating its role as a “solution country” in the transition to a low-carbon global economy. In particular, the RSF-supported program will focus on protecting the DRC's significant rainforest, building resilience to climate disasters, and better integrating climate considerations into public investment management.”

 

Table 1. Democratic Republic of the Congo: Selected Economic and Financial Indicators, 2023-26

 

2023

2024

2025

2026

 

Est.

CR No. 23/434

Proj.

CR No. 23/434

Proj.

CR No. 23/434

Proj.

 

(Annual percentage change, unless otherwise indicated)

GDP and prices

 

 

 

 

 

 

 

  Real GDP

8.4

4.8

4.7

5.6

5.1

5.2

4.5

     Extractive GDP

18.2

4.4

5.8

6.4

4.8

4.8

2.9

     Non-extractive GDP

3.5

5.0

4.1

5.3

5.3

5.4

5.4

  GDP deflator

14.4

13.0

16.2

8.1

9.1

6.4

6.7

  Consumer prices, period average

19.9

14.7

17.2

8.5

8.8

7.0

7.0

  Consumer prices, end of period

23.8

11.6

12.0

7.0

7.0

7.0

7.0

 

 

 

(Annual change in percent of beginning-of-period broad money)

Money and credit

 

 

 

 

 

 

 

  Net foreign assets

20.0

10.7

22.0

13.2

11.3

11.4

8.9

  Net domestic assets

20.3

10.0

-0.3

2.8

3.4

2.0

2.5

     Domestic credit

34.1

12.6

7.2

11.0

8.7

9.6

7.5

  Broad money

40.3

20.7

21.6

16.0

14.7

13.3

11.4

 

 

 

(Percent of GDP, unless otherwise indicated)

Central government finance

 

 

 

 

 

 

 

  Revenue and grants

14.8

14.9

15.7

14.7

14.2

14.9

14.4

  Expenditures

16.5

16.3

17.8

15.8

15.5

15.8

15.5

  Domestic fiscal balance

-1.3

-0.6

-0.5

-0.4

-0.4

-0.3

-0.4

 

 

 

 

 

 

 

 

Investment and saving

 

 

 

 

 

 

 

  Gross national saving

9.4

6.8

10.9

9.3

11.7

9.6

11.8

  Investment

15.7

10.8

15.6

12.6

15.3

12.4

15.3

     Non-government

12.0

6.0

10.0

8.0

10.0

7.8

10.0

 

 

 

 

 

 

 

 

Balance of payments

 

 

 

 

 

 

 

  Exports of goods and services

44.3

39.6

43.9

37.2

43.2

35.5

42.3

  Imports of goods and services

50.3

45.2

48.5

42.6

47.8

40.3

46.9

  Current account balance, incl. transfer

-6.2

-4.1

-4.6

-3.2

-3.5

-2.8

-3.5

  Current account balance, excl. transfers

-7.6

-5.4

-5.1

-4.6

-4.4

-4.1

-4.4

  Gross official reserves (weeks of imports)

9.3

10.4

10.0

11.0

10.0

11.7

10.2

 

 

 

 

 

 

 

 

External debt

 

 

 

 

 

 

 

  Debt service in percent of government revenue

7.7

7.4

6.4

7.3

7.8

7.0

8.0

 

 

 

 

 

 

 

 

Sources: Congolese authorities and IMF staff estimates and projections.

As part of ongoing regional engagements, European Union Special Representative, Borgstam will hold high-level discussions with the Minister of Defence, H.E. Stergomena Lawrence Tax, and the Deputy Minister of Foreign Affairs, H.E. Cosato David Chumi, as well as prominent members of the diplomatic community, academia, and civil society representatives in Tanzania. 

As part of ongoing regional engagements, the European Union Special Representative (EUSR) for the Great Lakes Region, Johan Borgstam, is visiting Tanzania from 16 to 18 January, following previous visits to Burundi, DRC, Rwanda, Angola, Kenya and Uganda.

EUSR Borgstam will hold high-level discussions with the Minister of Defence, H.E. Stergomena Lawrence Tax, and the Deputy Minister of Foreign Affairs, H.E. Cosato David Chumi, as well as prominent members of the diplomatic community, academia, and civil society representatives in Tanzania. The visit aims to exchange on Tanzania’s role in the Great Lakes region and reaffirm the EU’s commitment to peace, stability, and security in the region through the EU Great Lakes Strategy. As EU Special Representative, Johan Borgstam is especially focused on exploring East and Southern African regional integration, taking into account its economic, political, and peace and security dimensions.

Reflecting on the ongoing discussions, Borgstam said, "I am grateful to be in Tanzania and engage directly with key stakeholders on matters of regional importance. Tanzania plays a vital role in addressing the security and humanitarian crisis that is unfolding in parts of the Great Lakes region, and I appreciate the positive and constructive nature of our discussions. I look forward to continued collaboration between the European Union and Tanzania to promote regional peace, stability, and security."

EU Ambassador to Tanzania H.E. Christine Grau highlighted the enduring partnership between the European Union and Tanzania. "The European Union remains committed to supporting dialogue in the region and long-term regional and peaceful solutions for the Great Lakes region.  The visit of the EU Special Representative for the Great Lakes marks another step in our shared commitment to addressing the current challenges facing the region," she said.

This was EUSR Borgstam’s first visit to Tanzania since the start of his mandate which focuses on supporting regional mediation efforts, including the Luanda and Nairobi processes, and fostering a stronger partnership with all Great Lakes countries to enhance prosperity and security.

Appointed as European Union Special Representative (EUSR) since September 2024, Borgstam’s mission is to support the implementation of the renewed EU Great Lakes Strategy, whose objectives include: to contribute to peace, stability and security in the Great Lakes region, by promoting de-escalation of tensions and supporting dialogue and long-term regional solutions to crisis and conflicts, in particular in Eastern DRC; and to contribute to the regional efforts to transform the root causes of insecurity and instability into shared opportunities, unlocking the region’s full potential. The EU Strategy further aims at supporting stronger regional integration, as a stabilisation factor that can drive future prosperity for the region and the entire continent. European Union 

Wiper leader Kalonzo Musyoka addresses a press conference at SKM command centre, in  Nairobi, on January 15, 2025.  [David Gichuru, Standard]

The opposition is now asking President William Ruto to resign, accusing him of  blatant refusal to respect and enforce the Constitution.

Condemning a spate of abductions, the leaders on Wednesday said the President should take responsibility as the “commander in chief of the abduction squad”.

Azimio co-principal Kalonzo Musyoka said the Kenya Kwanza administration has turned out to be a criminal enterprise. 

“For avoidance of doubt, the Director General of National Intelligent Service (NIS) cannot be held responsible alone. The ICC Statute talks about the person bearing the highest responsibility, and that is not Noordin Haji, that is William Ruto. Ruto and his allies’ dictatorship must be considered an ICC statute case,” said Kalonzo. 

Kalonzo, who was accompanied by other Azimio leaders at the SKM Command Centre in Nairobi, said Kenyans would no longer agree to be intimidated.

During the meeting, the Wiper Party Leader announced the expulsion of his deputy, Farah Maalim, who he accused of violating the Constitution and the rights of Kenyans.

“The people’s loyal opposition will not sit back and allow this disgraceful attempt to take us back into the dark days of fear and oppression. We shall lead from the front. We have actually demonstrated leadership from the front because we have been in court,” he said. 

“We will fight them in court, we’ll fight them in the streets, we’ll fight them everywhere. We demand that Ruto respects Kenyans and the oath of office he has sworn to preserve under Kenya’s Constitution 2010. We also demand the immediate release of the remaining abductees.”

Maalim is one of the legislators who have been fiercely defending the president. In a recent gathering, the Daadab MP used unprintable words in reference to government critics.  

Last year, the National Cohesion and Integration Commission summoned the MP over  what they termed as inflammatory remarks against protesting youth.

On Wednesday, Jubilee Secretary General Jeremiah Kioni hit out at Ruto allies angered by Public Service Cabinet Secretary Justin Muturi’s police statement on the abduction of his son. 

“So if your son or daughter is abducted  and you cannot get hold of Ruto, what does that mean to us? We are on our own,” he said. 

The CS, who served as the Attorney General at the time of his son’s abduction on June 22 last year, said he has been waiting for answers to no avail.

Kalonzo noted that Muturi sat on the National Security Council, the top security organ, at the time. “Muturi has been seeking answers for the past six months and they have not been forthcoming to someone so senior in the Kenya Kwanza regime,” he said.

Dadaab MP Farah Maalimduring the 20th Anniversary of NG-CDF Celebrations at Safari Park Hotel on May 3, 2024. [Elvis Ogina, Standard]

Kalonzo praised the CS for his response after the Director of Criminal Investigations Mohamed Amin invited him to record the statement.

“If the idea was to cower Muturi into silence, they picked on the wrong man. If the bombshell of the Sunday statement was not enough, Muturi’s signed statement clearly and squarely pointed the blame at the main culprit behind the inhuman abductions...That man, as we have previously stated, is President William Ruto.”

The opposition also accused the Kenyan Kwanza regime of establishing command and control structures outside of the Constitution.

“We have actually since established that some headquarters of this abductions squad are somewhere near Ruaraka. As we have previously stated, William Ruto is the Commander-in-Chief of the abductions squads,” said Kalonzo.

“If the Attorney General of Kenya cannot get answers to the whereabouts of his son, who can? If the Attorney General cannot get his phone calls answered by junior staff such as the Director of NIS or DCI, who can? If the then Interior Cabinet Secretary Kithure Kindiki and Principal Secretary, Raymond Omolo are furnished with lies by their juniors, what is the state of the Kenyan Kwanza regime?” 

The leaders also hit out at Ruto for the failure to reconstitute the Independent Electoral and Boundaries Commission. By Irene Githinji, The Standard

The Government of Eastern Equatoria State has deployed SSPDF forces at Tsertenya, between South Sudan and Uganda, to deter disputes.

The development follows tensions, including the alleged livestock theft and encroachment by Ugandan forces into South Sudan through Ikotos County.

Last Year, a local chief was killed, his head cut off and body burnt to ashes by suspected Uganda forces as well as raiding unspecified number of cattle from South Sudan.

Eastern Equatoria State Minister for Local Government Peter Lokeng and law enforcement agencies told Radio Tamazuj that the deployment is to protect the border communities and their properties.

He, however, decried the lack of water points for the recently deployed SSPDF forces, urging the government to intervene.

“Our forces are in Tsertenya but that is South Sudan. The reason for putting them there is the raiders who disturb the border people and their properties. This is the time for cultivation and they have to cultivate without criminals disturbing them. The forces along the corridor need water,” he said.

Ikotos County Paramount Chief Joseph Odong told Radio Tamazuj on Wednesday that the deployment would help reduce tensions and the encroachment along border.

Odong said the communities along the borders have been living in fear following threats and attacks by Ugandan forces.

“It is a good initiative by the government because the issue of the border has been causing tension between the South Sudan citizens and Ugandans. The deployment will also help control the border and protect the communities,” he explained.

The Lokwaru Eastern Equatoria State Chairperson of the Civil Society Network Charles Onen, commended the initiative and appealed for additional deployments, including at Bira, Ngomoromo and Nimule.

He urged the governments of Uganda and South Sudan to use diplomacy and respect the international borders to help ease the tensions.

“We appreciate the Eastern Equatoria State Government for deploying forces along the border between Tsertenya in South Sudan and Apiriti in Uganda. We still appeal to our government to ensure that our international borders are protected and not tempered with.

“The current controversies need to be sorted out so that our borders remain intact and each country should ensure that there is respect for international borders,” he stated. Radio Tamazuj

The Narc-Kenya party leader Martha Karua has applauded Wiper party leader Kalonzo Musyoka for expelling Daadab Member of Parliament (MP) Farah Maalim from his party.

In a statement on Wednesday, January 15, 2025, Karua said that the move by Kalonzo was bold and commendable, adding that discipline is the key to any organization. 

“Bold and commendable move my brother @skmusyoka discipline is key in any organization and that’s the greatest deficit in Kenya’s leadership today, “Karua wrote via her official X account.

Farah’s expulsion

Addressing the press on Wednesday, Kalonzo announced that the MP had been thrown out of the party following his recent remarks, adding that the vocal lawmaker violated the constitution without revealing the specific sections breached.

“For the avoidance of doubt, honourable Farah Maalim who until now has been Wiper Democratic Party Deputy Leader stands expelled from the Wiper Democratic Movement for violating the constitution and the rights of Kenyans and even abusing Kenyan mothers,” Kalonzo Musyoka announced.

This expulsion comes months after the Wiper Party vowed to take action on the outspoken legislator following his reckless utterances against the anti-government protestors.

Wiper Party leader Kalonzo Musyoka in a past address. PHOTO/@skmusyoka/X
Wiper Party leader Kalonzo Musyoka in a past address. PHOTO/@skmusyoka/X

Farah’s controversial remarks

The Daadab MP, during a recent political roadside rally, hurled expletives and unprintable adjectives towards the youthful Gen Zs who criticize the government online.

“When you see everything progressing and then some fools say ‘Kasongo Ruto must go.’ To hell with those who say that! Is he sitting in your mother’s or father’s seat? He is sitting in our seat, and we will re-elect him; we will deliver 99 per cent or even 100 per cent. We are saying Ruto will stay until 2032,” Maalim stated, adding unprintable insults directed towards youthful Kenyans. 

However, that was not the first time the former Deputy Speaker of the National Assembly of Kenya used reckless utterances when addressing the public, during the anti-Finance Bill 2024 protests, Maalim in an interview in his local dialect vowed to clamp down on the youthful protesters.

Following his sentiments, he was summoned by the National Cohesion and Integration Commission (NCIC) to shed light on his remarks. By , PD

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