This year, Congo is expected to achieve a budget surplus, a sharp recovery after the deficit in 2020. The good news was reported last week by the International Monetary Fund.

IMF says 2020 had been a tough year due to the covid-19 pandemic and the decline in oil prices, one of the country’s main exports. While Congo has been facing a debt crisis that has made economic recovery difficult in recent years, a budget surplus should help reduce the burden on public finances. The country is already benefiting from the G20 Debt Service Suspension Initiative (DSSI), which has provided debt service relief to official creditors for 2020 and the first half of 2021.

Also, Congo signed a $448.6 million Extended Credit Facility Agreement with the IMF in 2019 to undertake reform programs. “Congo’s debt remains unsustainable. After reaching 103 percent of GDP in 2020, public debt is expected to fall below 100 percent of GDP this year,” IMF says.

Welcoming the authorities' efforts, the institution nevertheless called on the government to pursue reforms and, more specifically, discussions with creditors.

“The authorities have made advances in debt restructuring discussions with their external creditors. However, they must step up their efforts and promptly complete the restructuring process in a manner that restores medium-term debt sustainability - which is critical for sustainable development and poverty reduction,” said Pritha Mitra who led the IMF mission to Congo.

The country's growth is expected to remain negative but will recover to -0.8% this year against -7% in 2020. The non-oil primary budget deficit is expected to deteriorate to 18% against 15% last year.

Moutiou Adjibi Nourou