The public debt in Congo could exceed the amount previously forecasted, NGO Global Witness found in a report published January 27. 

The document reports a debt amounting to about $3.3 billion, so far undisclosed, contracted by the National Oil Corporation of Congo (SNPC) mainly from foreign oil companies including Total, ENI, and many banks.  

This newly reported liability could further widen existing debt, owed by the State and other companies such as Glencore and Trafigura, which have been at the centre of debates in recent years. Global Witness says Congo's total public debt could now reach about $13 billion, or over 30% higher than the latest IMF estimates.  

Of the $3.3 billion debt, around $2.7 billion is owed by the national oil company to major oil companies, mainly for operating costs that these companies assume on behalf of the SNPC. Global Witness, however, reports that the companies charged SNPC for many outlays that were not supposed to be included. 

“Our analysis reveals that the majors can recover an extensive range of costs, including salaries and pension contributions for employees, their medical, transport, telephone and accommodation fees, and their children’s school fees,” the document read.

“Total’s predecessor Elf even managed to get a $50 million ‘signature bonus,’ a one-off signing fee and key source of oil revenue for the state, treated as one of these costs, and charged Congo five percent interest on this so-called loan,” the NGO added.

These new revelations reflect the opacity of the country's resource management system, which has often been denounced by many NGOs. In 2018, Congo had succeeded in negotiating a new financial arrangement with the IMF to reduce its debt and diversify its oil-dependent economy. For Global Witness, the Congolese government and the IMF must carefully take into account the liabilities of the SNPC in future fiscal planning, including debt sustainability analysis.

Moutiou Adjibi Nourou