Congo Economy Looks Poised to Undergo Growth Surge in 2015

According to data from the International Monetary Fund, the Democratic Republic of Congo’s economy could grow 9.2 percent in 2015. Congo’s growth is mainly attributed to copper and gold mining.

The government is more optimistic than data from the IMF, expecting the economy to grow 10.3 percent in 2015, and data from Moody’s suggests that Congo could undergo the second fastest growth rate in the world throughout 2015 and 2016, growing at around 10 percent. Congo is one of the wealthiest regions in Africa, containing gold, diamonds, zinc and other precious minerals.

According to data from the International Monetary Fund, the Democratic Republic of Congo’s economy could grow 9.2 percent in 2015. Congo’s growth is mainly attributed to copper and gold mining.

The government is more optimistic than data from the IMF, expecting the economy to grow 10.3 percent in 2015, and data from Moody’s suggests that Congo could undergo the second fastest growth rate in the world throughout 2015 and 2016, growing at around 10 percent. Congo is one of the wealthiest regions in Africa, containing gold, diamonds, zinc and other precious minerals.

Congo is becoming a leading copper producer in Africa, ranking with other copper-producing nations such as Zambia. Congo mined over one million tons of copper in 2014, but a recent petrol strike may hamper future production goals. Workers from the southern Katanga province are upset over tax increases, and protesters allege that the government is extending favors to larger companies, such as Engen and Total in the western region. These workers supply fuel to the mining industry, and the strike will affect certain mining companies, including businesses affiliated with the industry.

The private sector is also sitting on the sidelines as elections are set to start in October, and the lack of engagement from the business community concerns the IMF. The IMF also urges tax reform in order to pay for the elections, and the organization hopes the funds would go to infrastructure development. According to IMF reports, Congo also needs to address customs enforcement and improve tax collection measures to make the economy more efficient. Congo’s opposition is also concerned that election funds would dry prematurely, giving incumbent President Joseph Kabila the excuse needed to postpone elections and retain power. Violent protests erupted in January over whether Kabila would hold onto power, and the opposition suspects Kabila will run for a third term, even though it is forbidden by the constitution. However, a Kabila representative stated he intends to step down when his term is finished.

In contrast to its economic potential, Congo ranks at 186 out of 187 in terms of human development, and most of the nation’s people remain in desperate poverty.  Congo is also in the midst of a delicate power transition as the government aims to quell the last remaining rebels in the country. The relative calm has lured in foreign investment, but violence still plagues parts of the nation. The conflict has taken the lives of over five million people, stemming from rivalries between Hutu and Tutsi ethnic groups.  According to the United Nations, Congo’s long-lasting conflict prevents the nation’s full potential, including other factors such as systemic corruption.