COVID-19: Finance Minister Nicolas Kazadi details DRC’s recovery blueprint

The Democratic Republic of Congo (DRC) is facing the challenges of the COVID-19 pandemic while exploring options for a quicker economic recovery. Finance Minister Nicolas Kazadi discussed the country's recovery trajectory in an interview with CNBC Africa. Despite the hurdles faced, the DRC is striving to maintain a robust growth rate, exceeding the continental average. Last year, the country saw a 1.7 percent GDP growth, surpassing the continent's average of minus 3.2 percent. The DRC is anticipating a 4.9 percent growth this year and 5.6 percent for the following year, indicating a positive recovery trajectory. While the country has a population of nearly 100 million, the COVID-19 situation remains under control with around 1,050 deaths and 50,000 infections reported since the onset of the pandemic. Minister Kazadi highlighted the government's efforts to address vaccine hesitancy by mobilizing funds, ordering millions of vaccine doses, and increasing vaccination rates across hospitals. The DRC is committed to extensive deployment and awareness campaigns to improve vaccine acceptance among the population. Despite concerns about vaccination hesitancy, Minister Kazadi emphasized that significant progress is being made in enhancing vaccine distribution and uptake. The government's focus on economic diversification and investment in non-mining sectors is crucial for long-term sustainable growth. While the mining sector plays a significant role in the DRC's economy, efforts are being made to attract investments and create a conducive environment for diversifying the economy. The IMF's support through the Special Drawing Rights (SDR) will contribute to establishing an investment fund aimed at diversifying the economy and engaging the private sector, including the mining industry, in economic growth initiatives. Additionally, the DRC has received financial support from the United States, with a focus on sectors such as education, health, energy, and government reforms. The government is committed to fostering strong cooperation with the US and leveraging bilateral relations for economic development. Minister Kazadi highlighted the importance of transparency in the mining sector to attract investors and boost contributions to the country's fiscal revenue. By adopting mining transparency roadmaps and promoting beneficial ownership registries, the DRC aims to create a more transparent and investor-friendly mining environment. The government's efforts have resulted in a 30 percent increase in revenue from the mining sector compared to 2019, showcasing positive growth and improved compliance with tax regulations. Job creation remains a priority for the DRC, with a focus on diversifying the economy to generate employment opportunities beyond the extractive industries. Collaboration between the government, private sector, and mining industry is essential in achieving economic diversification and sustainable growth. Addressing security challenges, particularly threats from armed groups like the Allied Democratic Forces, is crucial for ensuring stability and fostering economic development in conflict-affected regions. The DRC is working towards strengthening security measures and collaborating with international partners to address security threats effectively. Despite concerns about potential waves of the COVID-19 pandemic, Minister Kazadi emphasized the importance of vaccination in mitigating transmission and easing restrictions. The DRC remains vigilant in monitoring the pandemic's developments and adapting strategies to combat its impact. As the country prepares to host the Africa Business Forum, initiatives that aim to connect the mining sector with downstream industries for value addition and processing of raw materials are expected to drive economic growth and enhance the country's industrial capabilities. Minister Kazadi's insights shed light on the DRC's concerted efforts to navigate the challenges of the pandemic and advance economic recovery in the face of uncertainty.