International Monetary Fund (IMF) Executive Board Completes the First Review under the Extended Credit Facility Arrangement for the Democratic Republic of the Congo

 

• The IMF Executive Board has completed the first review under the Extended Credit Facility arrangement for the Democratic Republic of the Congo. The decision allows for an immediate disbursement of US$ 261.9 million towards international reserves, to continue building buffers.
• The DRC’s economy has been resilient in a challenging environment amid the escalation of the armed conflict in the eastern part of the country, which placed significant strains on the budget. The authorities have made good progress on the structural reform’s agenda, but a few quantitative targets were missed.
• The recent peace agreement signed between the governments of the DRC and Rwanda, mediated by the United States, is encouraging for the prospect of a peaceful resolution of the conflict and renewed focus on development goals.

The Executive Board of the International Monetary Fund (IMF) completed the first review under the Extended Credit Facility (ECF) Arrangement for the Democratic Republic of the Congo (DRC) approved on January 15, 2025 (see PR 25/003). The completion of the first review allowed an immediate disbursement equivalent to 190.4 million SDR (about US$ 261.9 million) to support balance-of-payment needs, bringing the aggregate disbursement to date to 380.5 million SDR (about 523.4 US$ million).  

The DRC has been facing significant challenges amid the intensification of the armed conflict in its eastern part since end-2024. The escalation of hostilities has claimed thousands of lives and caused severe social and humanitarian damages, including disruptions in access to essential services such as food, water, and electricity. Diplomatic efforts are ongoing to secure a cessation of hostilities and ensure sustainable peace in the region. The signing on June 27, 2025, of a peace agreement between the governments of the DRC and Rwanda, under the mediation of the United States, is encouraging for the prospect of a peaceful resolution on the ongoing conflict and renewed focus on addressing development goals.

Despite the challenging environment, economic activity remained resilient, with robust GDP growth of 6.5 percent in 2024, driven by continued dynamism in the extractive sector.  External stability has strengthened, as the current account deficit narrowed and the accumulation of international reserves continued. Inflationary pressures continue to ease, and year-on-year inflation declined from 23.8 percent at end-2023 to 11.7 percent at end-2024 and [8.5] percent at end-June 2025.

Performance under the program was mixed, as the intensification of the conflict has placed significant strains on the budget. Despite strong revenue collection, the domestic fiscal deficit reached 0.8 percent of GDP in 2024, exceeding the program target of 0.3 percent, owing to spending overruns linked to the escalation of the conflict, including on exceptional security spending and public investments. The program target on the Central Bank of the Congo (BCC)’s foreign exchange assets held with domestic correspondents was missed as well, due to higher-than-expected tax payments in foreign currency on government accounts. Other quantitative performance criteria of the ECF were met. Most indicative targets were also met, except those related to the floor on social spending and the ceiling on spending executed through emergency procedures—owing to elevated exceptional security spending linked to the conflict intensification. Appropriate corrective measures are being implemented by the authorities.

In completing the first review, the Executive Board also approved the authorities’ request for waivers of nonobservance of the performance criteria on the floor on the domestic fiscal balance at end-December 2024 on the basis of corrective actions, and the continuous ceiling on the levels of foreign currency assets of the BCC held with domestic correspondents on the basis of the temporary nature of the deviation which has since been remedied. Further, the Executive Board completed the financing assurances review under the ECF arrangement. No reform measures under the Resilience and Sustainability Facility (RSF) arrangement, approved in January 2025, were due for review at this time.

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

“The Democratic Republic of the Congo (DRC) has been confronted with heightened security challenges since late 2024. The escalation of the conflict in the eastern part of the country has caused serious human, social and economic damage and induced the government to increase spending. Despite these difficulties, the macroeconomic environment of the DRC remained broadly stable. Growth has remained robust, due to the resilience of mining production. Inflation continues to decrease, and the external position has strengthened. The economic outlook remains positive, but is fraught with downside risks related to the persistence of the conflict, declining external humanitarian assistance, global economic headwinds, and potential escalation of geopolitical conflicts. The authorities are committed to closely monitor these risks and to respond proactively to evolving challenges.

“Budget implementation remains challenging in a difficult security context. As a result, the domestic fiscal deficit is projected to be larger than initially projected for 2025, but is expected to return to the path envisaged at program approval starting in 2026, reflecting the authorities’ commitment to carry out measures to enhance domestic revenue mobilization and strengthen the budget implementation process. Additionally, to guard against unforeseen adverse shocks, the authorities have adopted a contingency plan.

“The Central Bank of the Congo (BCC) has maintained a tight monetary policy stance, thereby helping bring inflation down to single digits for the first time in three years. The accumulation of international reserves has continued, on the back of the narrowing of the current account deficit. Efforts must continue, to strengthen the monetary policy implementation framework, refine the foreign exchange intervention strategy, enhance the governance and safeguards of the BCC and ensure its adequate recapitalization.

“The authorities have committed to accompany these efforts to preserve macroeconomic stability with an acceleration of structural reforms in key areas, including strengthening the AML/CFT framework, improving the business climate, enhancing transparency and governance, combating corruption and upgrading national statistics. Efforts to lay the groundwork for a timely implementation of the reform measures underpinning the RSF arrangement approved in January should be stepped up.”

Table 1. Democratic Republic of the Congo: Selected Economic and Financial Indicators, 2023-26
	2023	2024		2025		2026
	Est.	CR No. 25/023	Prel.	CR No. 25/023	Proj.	CR No. 25/023	Proj.
	(Annual percentage change, unless otherwise indicated)
GDP and prices
Real GDP	8.5	6.0	6.5	5.4	5.3	5.1	5.3
Extractive GDP	19.7	11.6	12.2	7.7	8.2	5.2	5.8
Non-extractive GDP	3.5	3.2	3.5	4.2	3.6	5.0	5.0
GDP deflator	14.4	17.4	19.9	8.8	8.2	7.4	6.7
Consumer prices, period average	19.9	17.7	17.7	8.9	8.8	7.3	7.1
Consumer prices, end of period	23.8	12.0	11.7	7.8	7.8	7.0	7.0
	(Annual change in percent of beginning-of-period broad money)
Money and credit
Net foreign assets	19.9	17.4	23.0	18.2	14.5	23.7	22.7
Net domestic assets	20.3	4.9	5.6	-3.5	-1.0	-10.9	-10.5
Domestic credit	34.3	15.4	15.2	9.9	10.5	3.7	4.2
Broad money	40.3	22.4	28.1	14.7	13.8	12.8	12.3
	(Percent of GDP, unless otherwise indicated)
Central government finance
Revenue and grants	14.8	15.6	15.2	15.0	14.8	14.9	14.9
Expenditures	16.5	16.8	16.5	16.8	17.0	16.6	16.6
Domestic fiscal balance	-1.2	-0.3	-0.8	-0.8	-1.2	-0.8	-0.8
Investment and saving
Gross national saving	9.5	9.1	9.6	12.2	11.2	13.0	12.5
Investment	15.7	14.2	13.5	15.0	14.4	15.3	14.8
Non-government	12.0	10.0	10.0	10.0	10.0	10.0	10.0
Balance of payments
Exports of goods and services	44.0	45.1	47.4	45.4	46.1	45.5	46.6
Imports of goods and services	49.9	48.9	50.3	47.3	47.5	46.9	47.0
Current account balance, incl. transfer	-6.2	-5.1	-3.9	-2.8	-3.2	-2.4	-2.4
Current account balance, excl. transfers	-7.5	-5.1	-5.0	-2.7	-3.4	-2.3	-2.6
Gross official reserves (weeks of imports)	8.2	10.0	10.1	11.5	11.8	12.7	12.8
External debt
Debt service in percent of government revenue	7.6	5.7	6.1	6.7	7.1	7.0	7.4

Distributed by APO Group on behalf of International Monetary Fund (IMF).