Kinshasa, February 1st, 2022 (CPA)– The Minister in charge of Finance Nicolas Kazasdi, hailed, on behalf of the Sama Lukonde government, the improvement in the rating of DRC by S&P Agency, for having crossed the highly speculative grade « CCC+ ‘ for ‘B-‘ during a working meeting which he chaired on Saturday, indicates a press release from this ministry received on Monday at CPA.
According to the document, on January 28th, 2022, S&P Agency upgraded the rating of the Democratic Republic of Congo from ‘CCC+, Outlook Positive’ to ‘B-, Outlook Stable’. This upgrade in DRC’s rating reflects a PROFOUND structural change that began several years ago, the statement said, which also notes that DRC has remained with ‘CCC+’ rating since 2017.
S&P Agency noted that DRC’s balance of payments vulnerabilities have abated, in particular thanks to the good performance of the mining sector thanks to copper and cobalt and to the significant financing of IMF since the conclusion of the three-year economic program in 2021. The Agency indeed welcomes the favorable developments in DRC’s external position, which is reflected in the significant accumulation of foreign exchange reserves, amounting to approximately USD 3.5 billion at the end of 2021.
The document also indicates that DRC’s economic prospects are also considered « stronger » by the Agency thanks to the expected expansion of production in the mining sector and favorable developments in commodity prices. These developments will also be supported by efforts to strengthen infrastructure, illustrated in particular by the start of production at Busanga hydroelectric plant.
According to the agency, the average real growth expected over the period 2022-2025 should reach 6.5% per year against 4% over the past five years.
This decision also reflects the government’s determination to pursue the implementation of an ambitious reform plan, particularly on the budgetary aspect which is part of the program relating to IMF’s Extended Credit Facility, note The source.
It notes, in this regard, that thanks to the increase in its rating, DRC thus joins the group of countries rated B- by the Agency, including in particular Nigeria and Cameroon.
This rating action comes following the change of the outlook from stable to positive, in July 2021, by the S&P Agency. In addition, the Moody’s Agency changed its outlook from ‘Positive’ to ‘Stable’ in October 2021, with the rating remaining at Caa1.
For the Minister in charge of Finance, who hailed this performance on behalf of the Sama Lukonde government, it is worth recalling the political will of the Head of State Felix Antoine Tshisekedi Tshilombo, who constantly urges the government of the warriors to work more towards to achieve development goals.AIMO
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