The economic context of the Democratic Republic of Congo

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

The Democratic Republic of Congo (DRC) possesses two-thirds of Africa's tropical forests, has a rich subsoil and a significant hydroelectric potential. The economy has suffered political conflicts over the past two decades. In 2022, the economy grew 6.1%, mainly driven by an increase in mining sector investment and exports. In 2023 and 2024, mining should remain the main contributor to the country's growth, with GDP being expected to reach 6.7% and 6.9%, respectively.

The economy of the DRC is mainly based on extractive industries, which are very dependent on world prices and international economic dynamics. The country's economy is therefore fragile and vulnerable to shocks. In 2023, with copper and cobalt prices expected to remain high, production and exports are set to increase in the coming years, which should continue to benefit the economy as a whole. In 2022, inflation decreased to 8.4%, thanks to a relatively more stable Congolese franc. However, inflation should increase to 9.8% in 2023, before decreasing to 5.6% in 2024. The debt-to-GDP ratio decreased in 2021, to 14.7%, and it further decrease in the coming years, reaching 10.8% in 2023 and 9% in 2024. Although the pandemic has significantly impacted the Congolese economy, the country has been recovering, with the government implementing measures to counteract the economic crisis resulting from it. However, although a relatively low inflation and a robust recovery plan have bolstered private consumption in the country, its contribution to growth was constrained by the large share of the population living below the poverty line.

The DRC is one of the poorest countries in the world, with 70% of the population living in extreme poverty (World Bank, 2020). It is among the lowest-ranked in the human development index and violence is frequent, especially in the east of the country. According to the latest data from the World Bank, in 2021, the unemployment rate in the country stood at 22.2% - a slight decrease from the previous year, when that rate was 22.5%. However, among the employed share of the population, a high percentage of workers have informal jobs.

Main Sectors of Industry

The agricultural sector represented 19% of GDP in 2021 and employed 64.3% of the population (World Bank). The vast majority of the population is engaged in agricultural activities for their subsistence and not for commercial purposes. The main crops are cassava, plantains, yams, rice and corn. Farmers across the country were negatively impacted by COVID-19 restrictions, as border closures limited trade flows of agricultural inputs, which resulted in a decrease in the country's planted area, fewer agricultural jobs, and overall below-average production. However, as restrictions lifted in 2021, the sector began to show signs of recovery.

The industrial sector contributed to 45.3% of GDP in 2021, and employed 9.8% of the population. The country is presented with vast natural resources, the mining sector playing a major role in the economy and being the main source of export earnings. The Katanga region is particularly rich in minerals, including copper, cobalt, zinc, cassiterite, manganese, coal, silver, cadmium, germanium (a fragile element used as a semiconductor), gold, palladium (a metallic element used as catalyst and in alloys), uranium and platinum. The DRC also has deposits of gas (methane) and diamonds. Manufacturing plays a marginal role in the country's economy, due to the lack of skilled labour and machinery. Industrial activity in the DRC continued to experience growth in 2022, registering a steady recovery from the impacts of the pandemic, with the export of metals and minerals being major contributors to the sector's growth.

The services sector represented 33.2% of GDP in 2020 and employed 25.9% of the working population. The banking system is dominated by foreign companies, but only a fraction of the Congolese have a bank account. Tourism is also underdeveloped due to the prevailing security problems in the country. Even though the services sector was negatively impacted by the pandemic, it registered an overall growth in 2022, which, according to the IMF, was among the highest in region.

 

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	64.3	9.8	25.9
Value Added (in % of GDP)	19.0	45.3	33.2
Value Added (Annual % Change)	2.4	7.8	5.5

Source: World Bank, Latest Available Data. Because of rounding, the sum of the percentages may be smaller/greater than 100%.

 

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Indicator of Economic Freedom

Definition

Definition:

The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labour freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.}}

Score:

49/100

World Rank:

165

Regional Rank:

43

Economic freedom in the world (interactive map)
Source: Index of Economic Freedom, Heritage Foundation

 

 

Sources of General Economic Information

Ministries

Ministry of Mines
Ministry of Hydrocarbons
Ministry of Environment and Sustainable Development

Statistical Office

Statistics about DRC

Central Bank

Central Bank of East African States

Stock Exchange

Central African Stock Exchange

Economic Portals

Financial Times
BBC News