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The Future?, page-1174

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FrankMe

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08/01/22

23:11

Post #: 58729391
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Originally posted by Sammael ↑

DRC: the ten evidences attesting to the new impetus of the economic recovery

ANALYSIS - The economy of the Democratic Republic of Congo is entering a new era, a new virtuous cycle. As the performances observed over the past two years demonstrate, contrary to the negativist discourses of certain bad tongues propagated in social networks with the intention of causing harm, the economic recovery of this country, the engine of Africa's development, seems to be well underway. .
Many analysts have evidenced evidence that contradicts certain supporters of the thesis of the failure of the economic recovery under the regime of President Felix Tshisekedi. From our exchanges with some, we identified ten, namely:
1 ° The main macroeconomic indicators are giving encouraging signals despite the fairly restrictive health environment. Real GDP grew by 4.9% in 2021 against 1.7% in 2020.
At the same time, it should be noted that all the projections converge to confirm the improvement of the economy of the DRC over the next three years. The best predictions suggest a possibility of a recovery of 5.6% in 2022, 6.6% in 2023 and 6.8% in 2024.
For the International Monetary Fund (IMF), the economic growth of the DRC should also stand at 6.4% in 2022 while the average for sub-Saharan Africa is 3.9%.
2 ° Inflation was brought under control, standing at 5.2% in 2021 against 15.7% in 2020.
This means that the loss of purchasing power of the Congolese citizen has been reduced by a third compared to the previous year, despite the impact of Covid-19. According to estimates, the change in the consumer price index will be 6.3% in 2022, 6.7% in 2023 and 7% in 2024.
3 ° The foreign exchange market remained broadly stable, evidenced by small variations in the exchange rate on the two market segments. The year 2021 ended with a variation of 3.5%, i.e. a slight depreciation of the Franc Congolais unlike the previous year when it was more than 14%.
4 ° Thanks to the macroeconomic performances achieved by the DRC, the country has reconnected with the International Monetary Fund (IMF) .
At the end of the well-secured negotiations, the two parties succeeded in concluding a three-year economic program supported by the Rapid Credit Facility (FCR) to the tune of 1.52 billion US dollars. A new Program successfully renegotiated after ten years of interruption. It is a catalyst for other funding from bilateral and multi-lateral donors in favor of structuring and integrating projects for the development of the country.
The commitments of the President of the Republic and the Prime Minister vis-à-vis the Nation tend to reassure that the momentum initiated by financial orthodoxy, the increased mobilization of internal revenue, the fight against the sinking and embezzlement of public funds as well as that the rationalization of expenditure will not only be maintained but accelerated.
5 ° The rating agency Moody's changed the outlook for the DRC from stable to positive in 2021. This was motivated precisely by the solid economic outlook and the potential for improving economic resilience thanks to the implementation in progress. structural reforms within the framework of the program with the IMF.
By putting itself on the path of good governance, the Congolese Government is making progress. On December 15, 2021, the IMF Executive Board completed the first review of this program and authorized the immediate disbursement of US $ 212.3 million.
6 ° The reforms implemented so far have enabled the DRC to improve the positioning of the national rating in terms of the business climate . The efforts which resulted in bringing the DRC back from 23rd rank in 2017 to 9th rank of the most attractive African countries in September 2020, according to the report published by the firm Deloitte and Africa CEO Forum, are constantly consolidating.
If on the one hand, the Congolese Head of State invited Parliament to complete the legal framework relating to the functioning of commercial courts and the additional provisions of OHADA law, the Government has adopted a Roadmap containing urgent measures, in the short, medium and long term in order to remove the obstacles which still persist in the conduct of business.
This Roadmap contains 69 reforms, the implementation of which should be monitored and evaluated in real time by means of a Digital Dashboard. In the meantime, the central government is also called upon to work more on streamlining taxation and reducing red tape to which some businesses are victims.
André Wameso: "S & P's rating indicates the DRC's resilience to the shock of Covid-19 compared to economies in the region"

8 ° The Government is making efforts to meet the urgent needs of basic infrastructure.
Although the Government carried out social projects in favor of the population during the year 2021, the Head of State encouraged him to do more during this new year. In his message to the Nation, he invited him to accelerate the implementation of projects with rapid and visible impacts.
This is how several major works are announced during the year 2022. These include asphalting and rehabilitation projects of several roads across the country such as the Kolwezi-Dilolo, Boma-Moanda sections. , Tshikapa-Kamuesha, Beni-Komanda-Niania-Kisangani.
The electricity sector is not left out with the construction of mini photovoltaic power stations, alongside major electrification projects; projects aimed at improving the supply of drinking water, building and equipping health centers and schools.
Among the major projects expected in 2022 are the construction works of the deep-water port of Banana.
9 ° The Finance Law for fiscal year 2022 saw a substantial increase in budgetary allocations to public investments, ie 21% against 11% in 2021. All this with the objective of building the ecosystem to accelerate the development of the country in sectors with sustainable growth.
The other issue is that of further improving the living conditions of populations from the grassroots. This is the meaning of the country's ambitious development program, through its 145 territories.
10 ° The DRC is at the heart of the energy transition .
From this perspective, the country is keen to develop the country's immense natural resources through the development of strategic mineral value chains. The construction work of the electric battery manufacturing plant in Manono is part of this path.
Considered the best destination for all battery buyers, but also for manufacturers, the DRC can hope to capture part of the "8 trillion dollars" in income from the sale of electric vehicles by 2025, "46,000 billion by 2050 ”.
Moreover, it is to be hoped that the progress made and to be consolidated over time will strengthen the economic recovery process and substantially improve the social status of the Congolese population.
Patrick BOMBOKA

https://zoom-eco.net/economie/rdc-l...tant-le-nouvel-elan-de-la-relance-economique/

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The other challenge is to further improve the living conditions of populations from the ground up.

This is the meaning of the country's ambitious development program, across its 145 territories.

The DRC is at the heart of the energy transition.

From this perspective, the country is keen to develop the country's immense natural resources through the development of strategic mineral value chains.

The construction of the electric battery manufacturing plant in Manono are part of this path.

Wtf ? Manono?
Not without a ML is isn't - Hello !

Considered the best destination for all battery buyers, but also for manufacturers, the DRC can hope to capture part of the "8 trillion dollars" in income from the sale of electric vehicles by 2025, "46,000 billion by 2050 ”.

Moreover, it is to be hoped that the progress made and to be consolidated over time will strengthen the economic recovery process and substantially improve the social status of the Congolese population.

AVZ Price at posting: 86.5¢ Sentiment: Buy Disclosure: Held
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7 Great analysis

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