Strengthening Fiscal Policy and Financing Development in the DRC: Félix Tshisekedi Signs Ratification Laws
In a significant move towards bolstering fiscal policy and financing development in the Democratic Republic of Congo (DRC), President Félix-Antoine Tshisekedi has signed seven ratification laws. These laws, initially presented by Finance Minister Doudou Fwamba Likunde during the ordinary session in September at the National Assembly and the Senate, aim to enhance the mobilization of public resources, combat tax evasion, and fund priority projects in agriculture, infrastructure, and health sectors. The announcement was made on December 31, 2024, during a series of ordinances broadcasted on the national channel RTNC.
Sectoral Impact of the Ratification Laws
Two of the ratified projects focus on recent multilateral fiscal instruments signed by the DRC. The first project targets combating base erosion and profit shifting (BEPS), addressing aggressive tax planning strategies employed by multinational corporations to shift profits to low-tax jurisdictions, thereby reducing national tax revenues. The second project aims to implement the tax liability rule under pillar 2 to ensure fair and effective taxation.
Ratification Projects for External Resources
The first project involves a five-year, $118 million funding for governance and skills development to enhance agricultural transformation in the DRC by improving investment climate and training over 50,000 youths in innovative trades. The second project, with a total financing of $262 million, focuses on agricultural value chain development to reduce food insecurity and imports, creating 75,000 jobs and assisting over 1.7 million farmers and small-scale producers. The third project entails a $500 million loan from Germcorp Capital Management Limited to purchase essential goods, medical equipment, and support energy projects like the Katende hydroelectric plant.
Impact on Health and Infrastructure Sectors
A $250 million financing agreement with the World Bank will strengthen healthcare capacities in the DRC to prevent epidemics and enhance health system resilience, benefiting 43.8 million inhabitants, particularly women during prenatal and postnatal periods. Additionally, a syndicated credit of $270 million from two South African banks will fund the acquisition of over 5,000 equipment to modernize and rehabilitate the DRC’s road network, facilitating countrywide connectivity and integration of its 26 provinces.
As these projects are ratified and promulgated in accordance with Article 214, paragraph 1 of the DRC Constitution, which mandates approval of public finance-engaging agreements through laws, President Félix Tshisekedi’s administration demonstrates a commitment to economic growth and development in the country.
Personal Touch: As a journalist, I have witnessed firsthand the transformative impact of sustainable development projects in communities. It is heartening to see leaders like President Félix Tshisekedi prioritize initiatives that not only strengthen fiscal policies but also directly benefit the people of the DRC, paving the way for a brighter future for all citizens.