Economy of the Democratic Republic of the Congo
Template:Short description Template:Distinguish Template:Use dmy dates Template:Infobox economy The economy of the Democratic Republic of the Congo declined drastically in the years leading up to and during the First and Second Congo Wars,<ref name=":0">Template:Citation-attribution</ref> despite being home to vast potential in natural resources and mineral wealth; its gross domestic product is $69.474 billion as of 2023. During the last five reported years, the exports of the Democratic Republic of the Congo have changed by $15.2B from $13.3B in 2017 to $28.5B in 2022. Since 2003, the DRC's economy has gradually grown, but it remains one of the poorest countries in the world.<ref>Template:Cite web</ref>
At the time of its independence in 1960, the Democratic Republic of the Congo was the second most industrialized country in Africa after South Africa. It had a thriving mining sector, and its agriculture sector was relatively productive.<ref name="CENADEP"> Template:Cite report</ref> Since then, decades of corruption, war, and political instability have been a severe detriment to further growth, today leaving DRC with a GDP per capita and a HDI rating that rank among the world's lowest and make the DRC one of the most fragile and, according to the United Nations, least developed countries in the world.
Despite this, the DRC is quickly modernizing; it tied with Malaysia for the largest positive change in HDI development in 2016. Government projects include strengthening the health system for maternal and child health,<ref> World Economic Forum: The DRC is offering pregnant women free maternity care. Retrieved 14 January 2025</ref> expansion of electricity access, water supply reconstructions, and urban and social rehabilitation programs.
Economic implications of conflicts
[edit]The two recent conflicts (the First and Second Congo Wars), which began in 1996, have dramatically reduced national output and government revenue,<ref name=":0" /> have increased external debt,<ref name=":0" /> and have resulted in the deaths of more than five million people from war and associated famine and disease.<ref>Template:Cite journal</ref> Malnutrition affects approximately two-thirds of the country's population.<ref>Template:Cite report</ref>
Agriculture is the mainstay of the economy, accounting for 57.9% of GDP in 1997.<ref name=":1">Template:Citation-attribution</ref> In 1996, agriculture employed 66% of the workforce.<ref name=":1" />
Rich in minerals, the Democratic Republic of the Congo has a difficult history of predatory mineral extraction, which has been at the heart of many struggles within the country for many decades, but particularly in the 1990s. The economy of the second largest country in Africa relies heavily on mining. However, much economic activity occurs in the informal sector and is not reflected in GDP data.<ref name="Dublin - Research and Markets">Template:Cite web</ref>
In 2006, Transparency International ranked the Democratic Republic of the Congo 156 out of 163 countries in the Corruption Perception Index, tying Bangladesh, Chad, and Sudan with a 2.0 rating.<ref name=e>Template:Cite web</ref> President Joseph Kabila established the Commission of Repression of Economic Crimes upon his ascension to power in 2001.<ref name=d>Template:Cite book</ref>
The conflicts in the Democratic Republic of Congo were over water, minerals, and other resources. Political agendas have worsened the economy, as in times of crisis, the elite benefit while the general populace suffers. This is worsened as a result of corrupt national and international corporations. The corporations instigate and allow the fighting for resources because they benefit from it. A large proportion of fatalities in the country are attributed to a lack of basic services, recognized as "communicable, maternal, perinatal, and nutritional conditions," which account for 56% of deaths by broad cause.<ref>Template:Cite web</ref> The influx of refugees since the war in 1998 only serves to worsen the issue of poverty. Money of the taxpayers in the DRC is often misappropriated by the corrupt leaders of the country, who use the money to benefit themselves instead of the citizens of the DRC. The DRC is consistently ranked among the lowest countries on the UN Human Development Index.<ref>Template:Cite web</ref>
Economic history
[edit]
After Leopold
[edit]Forced labor (slavery) was important for the rural sector. The corporations that dominated the economy were mostly owned by Belgium, but British capital also played an important role. The 1950s were a period of rising income and expectations. Congo was said to have the best public health system in Africa, but there was also a huge wealth disparity. Belgian companies favored workers in certain areas more and exported them to work in different areas, restricting opportunities for others. Favored groups also received better education and were able to secure jobs for people in the same ethnic group, which increased tensions. In 1960 there were only 16 university graduates out of a population of 20 million. Belgium still had economic power, and independence gave little opportunity for improvement. Common refrains included "no elite, no trouble" and "before independence = after independence." When the Belgians left, most of the government officials and educated residents left with them. Before independence, there were just 3 out of 5000 government jobs held by Congolese people.<ref>Template:Cite journal</ref> The resulting loss of institutional knowledge and human capital crippled the government.
_exports.PNG){kind=link}
Zaire
[edit]After the Congo Crisis, Mobutu arose as the country's sole ruler and stabilized the country politically. Economically, however, the situation continued to decline, and by 1979, the purchasing power was only 4% of that from 1960.<ref name=dvr>Template:Cite book</ref> Starting in 1976, the IMF provided stabilizing loans to the dictatorship. Much of the money was embezzled by Mobutu and his circle.<ref name=dvr/> This was not a secret, as the 1982 report by IMF's envoy, Erwin Blumenthal, documented. He stated, "It is alarmingly clear that the corruptive system in Zaire, with all its wicked and ugly manifestations, its mismanagement and fraud, will destroy all endeavors of international institutions, of friendly governments, and of the commercial banks towards recovery and rehabilitation of Zaire’s economy".<ref>Template:Cite book</ref> Blumenthal indicated that there was "no chance" that creditors would ever recover their loans. Yet the IMF and the World Bank continued to lend money that was either embezzled, stolen, or "wasted on white elephant projects".<ref>Template:Cite web</ref> "Structural adjustment programmes" implemented as a condition of IMF loans cut support for health care, education, and infrastructure.<ref name=dvr/>
1990s
[edit]Poor infrastructure, an uncertain legal framework, corruption, and lack of openness in government economic policy and financial operations remain a brake on investment and growth.<ref name=":0" /> In the early 1990s, a number of International Monetary Fund (IMF) and World Bank missions met with the government to help it develop a coherent economic plan, but without reform being implemented.<ref name=":0" />
Faced with continued currency depreciation, the government resorted to more drastic measures and in January 1999 banned the widespread use of American dollars for all domestic commercial transactions, a position it later adjusted.<ref name=":1" /> The government has been unable to provide foreign exchange for economic transactions, while it has resorted to printing money to finance its expenditure.<ref name=":1" /> Growth was negative in 2000 because of the difficulty of meeting the conditions of international donors, continued low prices of key exports, and post-coup instability.
2000s
[edit]DRC's economic growth decelerated from its pre-COVID level of 4.4% in 2019 to an estimated 0.8% in 2020. Growth was driven by the extractives sector which, helped by robust demand from China, expanded by 6.9% in 2020 (compared to 1% in 2019). Meanwhile, non-mining sectors contracted by 1.6% (vs. growth of 5.7% in 2019) due to pandemic-related mobility restrictions, weaker trading activities and constrained government spending. Private consumption and government investment fell in 2020 by an estimated 1.0% and 10.2%, respectively.<ref>Template:Cite web</ref>
Special economic zones
[edit]The DRC planned to establish special economic zones (SEZ) to encourage the revival of its industry. The first SEZ was planned to come into being in 2012 in N'Sele, a commune of Kinshasa, and will focus on agro-industries. The Congolese authorities also planned to open another zone dedicated to mining (Katanga) and a third dedicated to cement (in the Bas-Congo).<ref>[1] Le "paradis" où le droit fera la loi, L'Echo, novembre 2010 Template:In lang</ref> There are three phases to the program that each have their own objectives. Phase I was the precursor to the actual investment in the Special Economic Zone, where policymakers agreed to the framework, the framework was studied for its establishment, and to predict the potential market demand for the land. Stage one of Phase II involved submitting laws for the Special Economic Zone, finding good sites for businesses, and currently there is an effort to help the government attract foreign investment. Stage two of Phase II hasn't been started yet, and it involves assisting the government in creating a framework for the country, creating an overall plan for the site, figuring out what the environmental impact of the project will be, and guessing how much it will cost and what the return can be made on the investment. Phase III involves the World Bank creating a transaction phase that will keep everything competitive. The program is looking for options to hand over the program to the World Bank, which could be very beneficial for the western part of the country.
Gross Domestic Product (GDP)
[edit]GDP (Nominal)
[edit]Template:Center <timeline> Colors=
id:lightgrey value:gray(0.9) id:darkgrey value:gray(0.7) id:sfondo value:rgb(1,1,1) id:barra value:rgb(0.2,0.6,1)
ImageSize = width:1600 height:370 PlotArea = left:41 bottom:17 top:10 right:10 DateFormat = x.y Period = from:000 till:80000 TimeAxis = orientation:vertical AlignBars = late ScaleMajor = gridcolor:darkgrey increment:10000 start:000 ScaleMinor = gridcolor:lightgrey increment:10000 start:000 BackgroundColors = canvas:sfondo
BarData=
bar:1980 text:1980 bar:1981 text:1981 bar:1982 text:1982 bar:1983 text:1983 bar:1984 text:1984 bar:1985 text:1985 bar:1986 text:1986 bar:1987 text:1987 bar:1988 text:1988 bar:1989 text:1989 bar:1990 text:1990 bar:1991 text:1991 bar:1992 text:1992 bar:1993 text:1993 bar:1994 text:1994 bar:1995 text:1995 bar:1996 text:1996 bar:1997 text:1997 bar:1998 text:1998 bar:1999 text:1999 bar:2000 text:2000 bar:2001 text:2001 bar:2002 text:2002 bar:2003 text:2003 bar:2004 text:2004 bar:2005 text:2005 bar:2006 text:2006 bar:2007 text:2007 bar:2008 text:2008 bar:2009 text:2009 bar:2010 text:2010 bar:2011 text:2011 bar:2012 text:2012 bar:2013 text:2013 bar:2014 text:2014 bar:2015 text:2015 bar:2016 text:2016 bar:2017 text:2017 bar:2018 text:2018 bar:2019 text:2019 bar:2020 text:2020 bar:2021 text:2021 bar:2022 text:2022 bar:2023 text:2023 bar:2024 text:2024 bar:2025 text:2025 bar:2026 text:2026 bar:2027 text:2027 bar:2028 text:2028 bar:2029 text:2029 bar:2030 text:2030
PlotData=
color:barra width:23 align:center bar:1980 from:000 till: 68606 bar:1981 from:000 till: 59726 bar:1982 from:000 till: 64939 bar:1983 from:000 till: 52378 bar:1984 from:000 till: 34951 bar:1985 from:000 till: 31943 bar:1986 from:000 till: 35840 bar:1987 from:000 till: 33932 bar:1988 from:000 till: 39314 bar:1989 from:000 till: 40006 bar:1990 from:000 till: 41448 bar:1991 from:000 till: 40250 bar:1992 from:000 till: 36333 bar:1993 from:000 till: 47450 bar:1994 from:000 till: 25746 bar:1995 from:000 till: 25021 bar:1996 from:000 till: 32099 bar:1997 from:000 till: 28819 bar:1998 from:000 till: 21089 bar:1999 from:000 till: 19147 bar:2000 from:000 till: 19077 bar:2001 from:000 till: 7246 bar:2002 from:000 till: 8720 bar:2003 from:000 till: 9022 bar:2004 from:000 till: 10275 bar:2005 from:000 till: 12720 bar:2006 from:000 till: 15403 bar:2007 from:000 till: 18598 bar:2008 from:000 till: 22665 bar:2009 from:000 till: 18626 bar:2010 from:000 till: 22340 bar:2011 from:000 till: 26406 bar:2012 from:000 till: 30074 bar:2013 from:000 till: 34908 bar:2014 from:000 till: 38355 bar:2015 from:000 till: 40154 bar:2016 from:000 till: 38086 bar:2017 from:000 till: 39461 bar:2018 from:000 till: 48037 bar:2019 from:000 till: 50891 bar:2020 from:000 till: 49613 bar:2021 from:000 till: 57592 bar:2022 from:000 till: 65768 bar:2023 from:000 till: 66923 bar:2024 from:000 till: 72483 bar:2025 bar:2026 bar:2027 bar:2028 bar:2029 bar:2030
PlotData=
bar:1980 at:68606 fontsize:S text:68,606 shift:(0,2) bar:1981 at:59726 fontsize:S text:59,726 shift:(0,2) bar:1982 at:64939 fontsize:S text:64,939 shift:(0,2) bar:1983 at:52378 fontsize:S text:52,378 shift:(0,2) bar:1984 at:34951 fontsize:S text:34,951 shift:(0,2) bar:1985 at:31943 fontsize:S text:31,943 shift:(0,2) bar:1986 at:35840 fontsize:S text:35,840 shift:(0,2) bar:1987 at:33932 fontsize:S text:33,932 shift:(0,2) bar:1988 at:39314 fontsize:S text:39,314 shift:(0,2) bar:1989 at:40006 fontsize:S text:40,006 shift:(0,2) bar:1990 at:41448 fontsize:S text:41,448 shift:(0,3) bar:1991 at:40250 fontsize:S text:40,250 shift:(0,2) bar:1992 at:36333 fontsize:S text:36,333 shift:(0,2) bar:1993 at:47450 fontsize:S text:47,450 shift:(0,2) bar:1994 at:25746 fontsize:S text:25,746 shift:(0,3) bar:1995 at:25021 fontsize:S text:25,021 shift:(0,2) bar:1996 at:32099 fontsize:S text:32,099 shift:(0,2) bar:1997 at:28819 fontsize:S text:28,819 shift:(0,2) bar:1998 at:21089 fontsize:S text:21,089 shift:(0,2) bar:1999 at:19147 fontsize:S text:19,147 shift:(0,2) bar:2000 at:19077 fontsize:S text:19,077 shift:(0,2) bar:2001 at:7246 fontsize:S text:7,246 shift:(0,2) bar:2002 at:8720 fontsize:S text:8,720 shift:(0,2) bar:2003 at:9022 fontsize:S text:9,022 shift:(0,2) bar:2004 at:10275 fontsize:S text:10,275 shift:(0,2) bar:2005 at:12720 fontsize:S text:12,720 shift:(0,2) bar:2006 at:15403 fontsize:S text:15,403 shift:(0,2) bar:2007 at:18598 fontsize:S text:18,598 shift:(0,2) bar:2008 at:22665 fontsize:S text:22,665 shift:(0,2) bar:2009 at:18626 fontsize:S text:18,626 shift:(0,2) bar:2010 at:22340 fontsize:S text:22,340 shift:(0,2) bar:2011 at:26406 fontsize:S text:26,406 shift:(0,2) bar:2012 at:30074 fontsize:S text:30,074 shift:(0,2) bar:2013 at:34908 fontsize:S text:34,908 shift:(0,2) bar:2014 at:38355 fontsize:S text:38,355 shift:(0,2) bar:2015 at:40154 fontsize:S text:40,154 shift:(0,2) bar:2016 at:38086 fontsize:S text:38,086 shift:(0,2) bar:2017 at:39461 fontsize:S text:39,461 shift:(0,3) bar:2018 at:48037 fontsize:S text:48,037 shift:(0,2) bar:2019 at:50891 fontsize:S text:50,891 shift:(0,2) bar:2020 at:49613 fontsize:S text:49,613 shift:(0,2) bar:2021 at:57592 fontsize:S text:57,592 shift:(0,2) bar:2022 at:65768 fontsize:S text:65,768 shift:(0,2) bar:2023 at:66923 fontsize:S text:66,923 shift:(0,3) bar:2024 at:72483 fontsize:S text:72,483 shift:(0,2) bar:2025 bar:2026 bar:2027 bar:2028 bar:2029 bar:2030
</timeline> Source: International Monetary Fund (IMF)<ref>Template:Cite web</ref>
GDP per capita (nominal)
[edit]Template:Center <timeline> Colors=
id:lightgrey value:gray(0.9) id:darkgrey value:gray(0.7) id:sfondo value:rgb(1,1,1) id:barra value:rgb(0.2,0.6,1)
ImageSize = width:1600 height:330 PlotArea = left:36 bottom:15 top:10 right:10 DateFormat = x.y Period = from:0 till:3000 TimeAxis = orientation:vertical AlignBars = late ScaleMajor = gridcolor:darkgrey increment:500 start:000 ScaleMinor = gridcolor:lightgrey increment:500 start:000 BackgroundColors = canvas:sfondo
BarData=
bar:1980 text:1980 bar:1981 text:1981 bar:1982 text:1982 bar:1983 text:1983 bar:1984 text:1984 bar:1985 text:1985 bar:1986 text:1986 bar:1987 text:1987 bar:1988 text:1988 bar:1989 text:1989 bar:1990 text:1990 bar:1991 text:1991 bar:1992 text:1992 bar:1993 text:1993 bar:1994 text:1994 bar:1995 text:1995 bar:1996 text:1996 bar:1997 text:1997 bar:1998 text:1998 bar:1999 text:1999 bar:2000 text:2000 bar:2001 text:2001 bar:2002 text:2002 bar:2003 text:2003 bar:2004 text:2004 bar:2005 text:2005 bar:2006 text:2006 bar:2007 text:2007 bar:2008 text:2008 bar:2009 text:2009 bar:2010 text:2010 bar:2011 text:2011 bar:2012 text:2012 bar:2013 text:2013 bar:2014 text:2014 bar:2015 text:2015 bar:2016 text:2016 bar:2017 text:2017 bar:2018 text:2018 bar:2019 text:2019 bar:2020 text:2020 bar:2021 text:2021 bar:2022 text:2022 bar:2023 text:2023 bar:2024 text:2024 bar:2025 text:2025 bar:2026 text:2026 bar:2027 text:2027 bar:2028 text:2028 bar:2029 text:2029 bar:2030 text:2030
PlotData=
color:barra width:20 align:center bar:1980 from:000 till: 2730 bar:1981 from:000 till: 2301 bar:1982 from:000 till: 2422 bar:1983 from:000 till: 1891 bar:1984 from:000 till: 1221 bar:1985 from:000 till: 1080 bar:1986 from:000 till: 1174 bar:1987 from:000 till: 1075 bar:1988 from:000 till: 1206 bar:1989 from:000 till: 1188 bar:1990 from:000 till: 1192 bar:1991 from:000 till: 1120 bar:1992 from:000 till: 973 bar:1993 from:000 till: 1222 bar:1994 from:000 till: 639 bar:1995 from:000 till: 601 bar:1996 from:000 till: 750 bar:1997 from:000 till: 642 bar:1998 from:000 till: 461 bar:1999 from:000 till: 410 bar:2000 from:000 till: 397 bar:2001 from:000 till: 146 bar:2002 from:000 till: 171 bar:2003 from:000 till: 171 bar:2004 from:000 till: 189 bar:2005 from:000 till: 226 bar:2006 from:000 till: 265 bar:2007 from:000 till: 310 bar:2008 from:000 till: 366 bar:2009 from:000 till: 291 bar:2010 from:000 till: 338 bar:2011 from:000 till: 387 bar:2012 from:000 till: 427 bar:2013 from:000 till: 481 bar:2014 from:000 till: 512 bar:2015 from:000 till: 519 bar:2016 from:000 till: 477 bar:2017 from:000 till: 478 bar:2018 from:000 till: 564 bar:2019 from:000 till: 578 bar:2020 from:000 till: 546 bar:2021 from:000 till: 614 bar:2022 from:000 till: 679 bar:2023 from:000 till: 669 bar:2024 from:000 till: 702 bar:2025 bar:2026 bar:2027 bar:2028 bar:2029 bar:2030
PlotData=
bar:1980 at:2730 fontsize:S text:2,730 shift:(0,2) bar:1981 at:2301 fontsize:S text:2,301 shift:(0,2) bar:1982 at:2422 fontsize:S text:2,422 shift:(0,2) bar:1983 at:1891 fontsize:S text:1,891 shift:(0,2) bar:1984 at:1221 fontsize:S text:1,221 shift:(0,2) bar:1985 at:1080 fontsize:S text:1,080 shift:(0,2) bar:1986 at:1174 fontsize:S text:1,174 shift:(0,2) bar:1987 at:1075 fontsize:S text:1,075 shift:(0,2) bar:1988 at:1206 fontsize:S text:1,206 shift:(0,2) bar:1989 at:1188 fontsize:S text:1,188 shift:(0,2) bar:1990 at:1192 fontsize:S text:1,192 shift:(0,2) bar:1991 at:1120 fontsize:S text:1,120 shift:(0,2) bar:1992 at:973 fontsize:S text:973 shift:(0,2) bar:1993 at:1222 fontsize:S text:1,222 shift:(0,2) bar:1994 at:639 fontsize:S text:639 shift:(0,2) bar:1995 at:601 fontsize:S text:601 shift:(0,2) bar:1996 at:750 fontsize:S text:750 shift:(0,2) bar:1997 at:642 fontsize:S text:642 shift:(0,2) bar:1998 at:461 fontsize:S text:461 shift:(0,2) bar:1999 at:410 fontsize:S text:410 shift:(0,2) bar:2000 at:397 fontsize:S text:397 shift:(0,2) bar:2001 at:146 fontsize:S text:146 shift:(0,2) bar:2002 at:171 fontsize:S text:171 shift:(0,2) bar:2003 at:171 fontsize:S text:171 shift:(0,2) bar:2004 at:189 fontsize:S text:189 shift:(0,2) bar:2005 at:226 fontsize:S text:226 shift:(0,2) bar:2006 at:265 fontsize:S text:265 shift:(0,2) bar:2007 at:310 fontsize:S text:310 shift:(0,2) bar:2008 at:366 fontsize:S text:366 shift:(0,2) bar:2009 at:291 fontsize:S text:291 shift:(0,2) bar:2010 at:338 fontsize:S text:338 shift:(0,2) bar:2011 at:387 fontsize:S text:387 shift:(0,2) bar:2012 at:427 fontsize:S text:427 shift:(0,2) bar:2013 at:481 fontsize:S text:481 shift:(0,2) bar:2014 at:512 fontsize:S text:512 shift:(0,2) bar:2015 at:519 fontsize:S text:519 shift:(0,2) bar:2016 at:477 fontsize:S text:477 shift:(0,2) bar:2017 at:478 fontsize:S text:478 shift:(0,2) bar:2018 at:564 fontsize:S text:564 shift:(0,2) bar:2019 at:578 fontsize:S text:578 shift:(0,2) bar:2020 at:546 fontsize:S text:546 shift:(0,2) bar:2021 at:614 fontsize:S text:614 shift:(0,2) bar:2022 at:679 fontsize:S text:679 shift:(0,2) bar:2023 at:669 fontsize:S text:669 shift:(0,2) bar:2024 at:702 fontsize:S text:702 shift:(0,2) bar:2025 bar:2026 bar:2027 bar:2028 bar:2029 bar:2030
</timeline> Source: International Monetary Fund (IMF)<ref>Template:Cite web</ref>
Economic implications of instability
[edit]Ongoing conflicts dramatically reduced government revenue and increased external debt.<ref name=":0" /> As Reyntjens wrote, "Entrepreneurs of insecurity are engaged in extractive activities that would be impossible in a stable state environment. The criminalization context in which these activities occur offers avenues for considerable factional and personal enrichment through the trafficking of arms, illegal drugs, toxic products, mineral resources and dirty money."Template:Citation needed Ethnic rivalries were made worse because of economic interests and looting and coltan smuggling took place. Illegal monopolies formed in the country where they used forced labor for children to mine or work as soldiers. National parks were overrun with people looking to exploit minerals and resources. Increased poverty and hunger from the war increased the hunting of rare wildlife. Education was denied when the country was under foreign control, and very few people made money off the minerals in the country. The national resources are not the root cause of the continued fighting in the region; however, the competition has become an incentive to keep fighting.[1] The DRC's level of economic freedom is one of the lowest in the world, putting it in the repressed category. The armed militias fight with the government in the eastern section of the country over the mining sector or the corruption of the government, and weak policies lead to the instability of the economy. Human rights abuses also ruin economic activity; the DRC has a 7% unemployment rate but still has one of the lowest GDPs per capita in the world. A major problem for people trying to start their own companies is that the minimum amount of capital needed to launch the company is five times the average annual income, and prices are regulated by the government, which almost forces people to have to work for the larger, more corrupt businesses; otherwise, they won't have work. It is hard for the DRC to encourage foreign trade because of the regulatory barriers.<ref>Template:Cite web</ref>
International relations
[edit]Poor infrastructure, an uncertain legal framework, corruption, and lack of openness in government economic policy and financial operations remain a brake on investment and growth.<ref name=":0" /> A number of International Monetary Fund (IMF) and World Bank missions have met with the new government to help it develop a coherent economic plan, but associated reforms are on hold.<ref name=":0" />
Faced with continued currency depreciation, the government resorted to more drastic measures and in January 1999 banned the widespread use of U.S. dollars for all domestic commercial transactions, a position it later adjusted.<ref name=":1" /> The government has been unable to provide foreign exchange for economic transactions, while it has resorted to printing money to finance its expenditure.<ref name=":1" /> Growth was negative in 2000 because of the difficulty of meeting the conditions of international donors, continued low prices of key exports, and post-coup instability. 125 companies in 2003 contributed to the conflict in DRC, showing the corruption.
Foreign trade statistics
[edit]| Year | Goods Export (billion US$)<ref>Template:Cite web</ref> |
Goods Imports (in billion US$)<ref>Template:Cite web</ref> |
Net trade (in billion US$)<ref>Template:Cite web</ref> |
|---|---|---|---|
| 2023 | Template:Increase$29.6 | Template:Increase$28.0 | Template:Increase$1.6 |
| 2022 | Template:Increase$28.7 | Template:Increase$26.7 | Template:Increase$2.0 |
| 2021 | Template:Increase$22.2 | Template:Increase$18.3 | Template:Increase$3.9 |
| 2020 | Template:Increase$13.8 | Template:Increase$11.9 | Template:Increase$1.9 |
| 2015 | Template:Increase$10.3 | Template:Increase$10.6 | Template:Decrease$-0.3 |
| 2010 | Template:Increase$8.5 | Template:Increase$8.0 | Template:Increase$0.4 |
| 2005 | $2.4 | $2.7 | Template:Decrease$-0.3 |
World Bank
[edit]With the help of the International Development Association the DRC has worked toward the reestablishment of social services. This is done by giving 15 million people access to basic health services and giving bed nets to prevent malaria from spreading to people. With the Emergency Demobilization and Reintegration Program, more than 107,000 adults and 34,000 child soldiers stood down their militarized posture. The travel time from Lubumbashi to Kasomeno in Katanga went down from seven days to two hours because of the improved roads, which led to the decrease of prices of main goods by 60%. With the help of the IFC, KfW, and the EU, the DRC improved its businesses by reducing the time it took to create a business by 51%, reducing the time it took to get construction permits by 54%, and reducing the number of taxes from 118 to 30. Improvements in health have been noticeable, specifically that deliveries attended by trained staff jumped from 47 to 80%. In education, 14 million textbooks were provided to children, completion rates of school have increased, and higher education was made available to students that chose to pursue it.<ref>Template:Cite web</ref>
International Monetary Fund
[edit]The IMF plans on giving the DRC a $1 billion loan after its two-year suspension after it failed to give details about a mining deal from one of its state-owned mines and an Israeli billionaire, Dan Gertler. The loan may be necessary for the country because there will be elections in December 2016 for the next president, and the cost of funding this would range around $1.1 billion. The biggest problem with the vote is getting a country of 68 million people the size of Western Europe to polling stations with less than 1,860 miles of paved roads.<ref>Template:Cite news</ref>
Sectors
[edit]Agriculture
[edit]Template:Main Agriculture is the mainstay of the economy, accounting for 57.9% of the GDP in 1997.<ref name=":1" /> Main cash crops include coffee, palm oil, rubber, cotton, sugar, tea, and cocoa.<ref name=":1" /> Food crops include cassava, plantains, maize, groundnuts, and rice.<ref name=":1" /> In 1996, agriculture employed 66% of the work force.<ref name=":1" />
The Democratic Republic of Congo produced, in 2018:
- 29.9 million tons of cassava (3rd largest producer in the world, second only to Nigeria and Thailand);
- 4.7 million tons of plantain (largest producer in the world);
- 2 million tons of maize;
- 1.1 million tons of palm oil;
- 990 thousand tons of rice;
- 384 thousand tons of sweet potato;
- 309 thousand tons of banana;
- 307 thousand tons of peanut;
- 213 thousand tons of mango (including mangosteen and guava);
- 213 thousand tons of papaya;
- 205 thousand tons of beans;
- 186 thousand tons of pineapple;
- 168 thousand tons of orange;
- 101 thousand tons of potato;
In addition to smaller productions of other agricultural products, such as coffee (29 thousand tons), cocoa (3.6 thousand tons), natural rubber (14 thousand tons) and tea (3.6 thousand tons).<ref>Template:Cite web</ref>
Fishing
[edit]The Democratic Republic of Congo also possesses 50 percent of Africa's forests and a river system that could provide hydro-electric power to the entire continent, according to a United Nations report on the country's strategic significance and its potential role as an economic power in central Africa.<ref>Template:Cite web</ref> Fish are the single most important source of animal protein in the DRC. Total production of marine, river, and lake fisheries in 2003 was estimated at 222,965 tons, all but 5,000 tons from inland waters. PEMARZA, a state agency, carries on marine fishing.
Forestry
[edit]Forests cover 60 percent of the total land area. There are vast timber resources, and commercial development of the country's Template:Convert of exploitable wooded area is only beginning. The Mayumbe area of Bas-Congo was once the major center of timber exploitation, but forests in this area were nearly depleted. The more extensive forest regions of the central cuvette and of the Ubangi River valley have increasingly been tapped.
Roundwood removals were estimated at 72,170,000 m2 in 2003, about 95 percent for fuel. Some 14 species are presently being harvested. Exports of forest products in 2003 totaled $25.7 million. Foreign capital is necessary in order for forestry to expand, and the government recognizes that changes in tax structure and export procedures will be needed to facilitate economic growth.Template:Citation needed
Mining
[edit]Rich in minerals, the DRC has a difficult history of predatory mineral extraction, which has been at the heart of many struggles within the country for many decades, but particularly in the 1990s. Although the economy of the Democratic Republic of the Congo, the second largest country in Africa who has historically relied heavily on mining, is no longer reflected in the GDP data as the mining industry has suffered from a long-term "uncertain legal framework, corruption, and a lack of transparency in government policy." The informal sector.<ref name="Dublin - Research and Markets"/>
In her book entitled The Real Economy of Zaire, MacGaffey described a second, often illegal economy, "system D," which is outside the official economy (MacGaffey 1991:27).<ref name=MacGaffey> Template:Cite book</ref> and therefore is not reflected in the GDP.
Exploitation of mineral substances by companies
[edit]
The economy of the second largest country in Africa relies heavily on mining. The Congo is the world's largest producer of cobalt ore,<ref>Template:Cite web</ref> and a major producer of copper and industrial diamonds. The Congo has more than 30% of the world's diamond reserves.,<ref>"DR Congo poll crucial for Africa" BBC News. 16 November 2006.</ref> mostly in the form of small, industrial diamonds. The coltan is a major source of tantalum, which is used in the fabrication of electronic components in computers and mobile phones. In 2002, tin was discovered in the east of the country, but, to date, mining has been done on a small scale. Manono in Central DRC has a significant deposit of lithium and tin with tantalum and niobium and is being developed by an Australian company. Production is expected in 2023. According to a 2011 report, the total value of the major mineral reserves in the DRC amounted to a total of over 300 billion US dollars at the time.<ref>Template:Cite web</ref>
Smuggling of the conflict minerals, coltan and cassiterite (ores of tantalum and tin, respectively), has helped fuel the war in the Eastern Congo.<ref name=NYTLootedRiches> Template:Cite news</ref>
Today's larger mining companies are making changes and adhering to global demand for ESG (Environmental, Social and Governance) and IRMA (Initiative for Responsible Mining Assurance). One such globally recognised certification is the 3T iTSCi, the only widely implemented and accepted mineral traceability and due diligence system in the region for the 3T minerals—tin, tantalum and tungsten—an internationally recognised certification for responsible mining and traceability under the 2010 Dodd-Frank Act. Today, four central African countries, including the DRC, provides legitimate and ethical 3T minerals. ITSCI is the only industry initiative with standards 100% aligned with the OECD Guidance. Much has been done in the last 15 years, providing artisanal and small-scale miners a support network through iTSCi to build the foundations and regulate the industry. At the end of 2019 ITSCI has seen to 2000 mines, employment of around 80,000 miners, and the supply of over 2000 tonnes of tin, tantalum and tungsten minerals per month; the initiative has come a long way in the last decade. A report had been done by Pact in 2015, detailing iTSCi's progress over the previous five years; it discusses the successes, the challenges ahead and the work yet to be done. Entitled Unconflicted: Making Conflict-Free Mining a Reality in the DRC, Rwanda and Burundi.
Copper and cobalt
[edit]Katanga Mining Limited, a London-based company, owns the Luilu Metallurgical Plant, which has a capacity of 175,000 tonnes of copper and 8,000 tonnes of cobalt per year, making it the largest cobalt refinery in the world. After a major rehabilitation program, the company restarted copper production in December 2007 and cobalt production in May 2008.<ref>Template:Cite web</ref>
Informal sector
[edit]Much economic activity occurs in the informal sector and is not reflected in GDP data.<ref name="Dublin - Research and Markets"/>
Transport
[edit]
Ground transport in the Democratic Republic of Congo has always been difficult. The terrain and climate of the Congo Basin present serious barriers to road and rail construction, and the distances are enormous across this vast country. Furthermore, chronic economic mismanagement and internal conflict have led to serious under-investment over many years.
On the other hand, the Democratic Republic of Congo has thousands of kilometres of navigable waterways, and traditionally, water transport has been the dominant means of moving around approximately two-thirds of the country.
Data
[edit]The following table shows the main economic indicators from 1980–2023. Inflation below 5% is in green.<ref>Template:Cite web</ref>
See also
[edit]- Democratic Republic of the Congo
- List of companies based in the Democratic Republic of the Congo
- Mining industry of the Democratic Republic of the Congo
- United Nations Economic Commission for Africa
References
[edit]External links
[edit]- Template:Cite book
- Template:Cite report
- Democratic Republic of the Congo latest trade data on ITC Trade Map
- Dias, Elizabeth (24 July 2009). "First Blood Diamonds, Now Blood Computers?". Time.
- Oasis Kodila Tedika et Francklin Kyayima Muteba, The sources of growth in DRC before independence. A cointegration analysis, CRE Working paper, n°02/10, juin 2010
- Exenberger, Andreas/Hartmann, Simon (2007): The Dark Side of Globalization. The Vicious Cycle of Exploitation from World Market Integration: Lesson from the Congo, Working Papers in Economics and Statistics 31-2007
- Template:Cite report
- Template:Cite journal "The lucrative mining industry is unscrupulous, environmentally disastrous, and a linchpin of Congo’s economy. How can it be reformed?" Review of 5 books on the topic.