• DRC launches campaign to diversify investors in government securities

• 98% of bonds now held by banks; aim is to reduce risk and broaden access

• Part of wider African push to deepen local debt markets

Doudou Fwamba, the Finance Minister of the Democratic Republic of Congo, has launched a program to raise awareness of public securities issuance, including Treasury bills and bonds. The initiative aims to attract a larger number of investors, both institutional and individual.

The details of the initiative have not yet been made public, but it was presented at the Council of Ministers meeting on July 11, 2025. It seeks to broaden the investor base in the local government securities market, which is currently dominated by commercial banks.

In the DRC, commercial banks currently hold 98% of the government securities issued by the state. The remaining 2% is divided among a few institutional investors, such as insurance companies or pension funds. Individual investors are almost entirely absent from this market.

This situation exposes the Congolese financial system to high sovereign risk, meaning an excessive dependence on the state's ability to repay its debts. It also limits market depth, which is its ability to attract diversified medium and long-term financing.

To correct this situation, the government intends to open up the government securities market to insurance companies, pension funds, and even individuals. This will notably help increase the number of market participants and diversify the state's sources of domestic financing.

The government hopes to build a more stable, more liquid market that is less dependent on banks, while continuing to raise funds through this channel. In 2024, this allowed the government to mobilize more than 2,000 billion Congolese francs ($687 million) to finance budgetary spending.

A Broader Trend Across Several African Countries

The Congolese government’s approach is part of a wider trend observed in other African nations. In March 2022, Cameroon announced the launch of a strategy to encourage non-bank actors to participate in the government securities market, in partnership with the Bank of Central African States (BEAC). At that time, commercial banks still held 90% of these securities.

In a monetary policy report on the Central African Economic and Monetary Community (CEMAC) published in March 2025, BEAC revealed that in the six countries of the zone Cameroon, Congo, Gabon, Equatorial Guinea, Chad, and the Central African Republic, the total outstanding public securities amounted to 10.6% of gross domestic product as of December 31, 2024. This market was dominated by primary dealers, mainly commercial banks. These banks alone held 62.2% of the outstanding securities as of the end of 2024. Institutional investors such as insurance companies or pension funds held 19.4%, and individuals held 3.1%.

According to BEAC, several factors hinder non-bank participation in the public securities market of the region. These include the low financial literacy of economic agents (institutional and individual investors), who remain largely unaware of the investment opportunities offered by Treasury bills and bonds. Additionally, some institutional investors consider the return levels too low, believing the interest rates offered by public securities are not sufficiently attractive, which limits their motivation to subscribe, especially to assimilated Treasury bills. The central bank also noted a lack of strong incentives for non-bank participants due to the absence of robust incentive mechanisms.

This limited presence of non-bank actors weakens the financial system. If banks reduce their purchases of government securities, this could create stress for states relying on these financial resources. To prevent this and make the market more stable and accessible, BEAC recommends that governments carry out awareness campaigns, improve securities yields, and facilitate market access for small investors.

Through this awareness program, the DRC aims to secure its domestic financing more sustainably and build a more open and inclusive bond market.

Chamberline Moko