DRC: authorities and IMF concerned about rising fuel prices

The Congolese government is trying to anticipate a rise in fuel prices (Illustration).

AFP PHOTO / PAPY MULONG

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The International Monetary Fund (IMF) completed a week-long mission to Kinshasa three days ago.

She welcomed the country's economic prospects.

This year, GDP growth is estimated at 5.7%.

An increase due among other things to a recovery in the mining sector, slowed down during the global health crisis.

However, IMF experts warn of a probable decline in economic activity, this time due to soaring energy prices.

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With our correspondent in Kinshasa,

Among the risks, the IMF cites the rise in world food and energy prices due to the crisis of the conflict in Ukraine.

There is also the volatility of mineral prices which could cause inflation.

The oil situation is also particularly worrying.

Prices on the international market are soaring and the impact could be felt as far away as the DRC.

Generally, the price at the pump is fixed after negotiations between tankers and national authorities.

And if there is a shortfall from the oil companies, it is the government that fills this gap with subsidies.

►Also read: DRC: the IMF and Kinshasa provide an update on the financing program

This question was therefore the subject of discussions between the Congolese authorities and the IMF mission in Kinshasa.

Experts from the Bretton Woods institution fear that these subsidies will weigh on the national budget to the detriment of other social expenditures.

Thus, the IMF has called for transparency in setting fuel prices and to closely monitor the impact of these subsidies on the budget.

On the government side, it is announced that internal measures will be taken urgently to control the impact of this possible increase.

►Also read: DRC: the reforms desired by the World Bank, the IMF and the AfDB

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