Which sub-Saharan African country is home to the undisputed film production capital of the continent?

With a surface area equivalent to that of Western Europe, the Democratic Republic of Congo (DRC) is the largest country in Sub-Saharan Africa (SSA). DRC is endowed with exceptional natural resources, including minerals such as cobalt and copper, hydropower potential, significant arable land, immense biodiversity, and the world’s second-largest rainforest.

DRC has the third largest population of poor globally. Poverty in DRC is high, remains widespread and pervasive, and is increasing due to impacts from COVID-19. In 2018, it was estimated that 73% of the Congolese population, equaling 60 million people, lived on less than $1.90 a day (the international poverty rate). As such, almost 14% — or one out of six people living in extreme poverty in SSA — live in DRC.

Political Context

Félix Antoine Tshisekedi Tshilombo, son of Etienne Tshisekedi, the country’s longstanding opposition leader, won the December 2018 presidential election. He succeeded Joseph Kabila, who had led the country for 18 years, in the first peaceful transition of power in the DRC’s history.

Following President Félix Tshisekedi’s establishment of a new political alliance known as the "Sacred Union," the former Prime Minister and the head of the Senate stepped down in January and February 2021. On February 15, a week after he was sworn in as Head of the African Union, President Tshisekedi appointed a new Prime Minister, Jean-Michel Sama Lukonde Kyenge, who had served as CEO of Gecamines, the state-owned mining company, since 2019. A new government was put in place last April to support the program of the President of the Republic and to prepare for the next general elections scheduled for 2023.

On October 16, the National Assembly endorsed a new central electoral president, Denis Kadima and his team — already strongly contested before being confirmed by the head of state.

Economic Situation

After a pandemic-induced slowdown to 1.7% in 2020, economic growth is expected to moderately rebound to 3.6% in 2021 driven by a robust growth in mining (8.7%), owing to rising commodity prices and production capacity expansion. Non-mining sectors (particularly agriculture and services) are expected to gradually recover, growing at 1.4% in 2021 as the economy remains open despite some COVID-related restrictions.

The current account deficit (CAD) is projected to narrow to 2.0% of GDP in 2021 (from 2.3 in 2020), reflecting a strong growth in mineral exports and global prices of copper and cobalt. FDI and international support (including the recent SDR issuance by the IMF) are likely to finance the CAD and raise international reserves to an estimated 3.4 weeks at end-2021 (from 2020: 1.9 weeks), putting downward pressures on local currency and inflation. As inflation moderated, the central bank also eased monetary policy to support economic recovery.

The fiscal deficit is projected to narrow to 1.7% of GDP in 2021, from 2.1% in 2020, funded by the IMF ECF disbursements and project loans, which offset the repayment of T-bills. Domestic revenue collection is expected at 10.2% of GDP (up from 8.7% in 2020), as economic recovery generates higher income taxes and VAT. This may allow the government to increase current expenditures to address high public sector wage bills, COVID-19-related spending and emergency expenditure related to the Goma volcano eruption of May 2021 while remaining on a path of fiscal consolidation.

Social Context and Development Challenges

On February 7, 2021, a resurgence of the Ebola virus disease (EVD) was reported in Butembo, in the province of North Kivu, where a previous epidemic (EVD10) had been declared over in June 2020. As of March 30, 2021, a total of 12 cases had been confirmed in four provinces: Biena, Butembo, Katwa, and Musienene. A total of four deaths and four recoveries have been recorded. The 11th epidemic of the EVD was officially declared over on November 18, 2020, with 119 confirmed cases and 55 deaths.

On October 8, a new case of Ebola was reported in North Kivu province. Immediately a vaccination campaign began. As of October 16, 2021, three new cases, including one death, have been confirmed in the Butsili health area in northeastern DRC, bringing the total to five confirmed cases with three deaths. Some 369 contacts have been identified and 308 contacts are being followed by the Congolese health services. This is the 13th wave of the Ebola virus in the Democratic Republic of the Congo.

Measures have been in place since March 10, 2020, to contain the spread of COVID-19. As of October 14, more than 57,000 cases had been confirmed in the DRC.

DRC ranks 175 out of 189 countries on the 2020 Human Development Index, though some HCI indicators are estimated to have slightly improved from 2018 to 2020. DRC’s Human Capital Index is 0.37%, below the SSA average of 4.0%. This means that a child born in DRC today will be 37% as productive in adulthood as she could be if she enjoyed complete education and full health in her early years. On average, a Congolese child receives 9.1 years of schooling, though translating into 4.5 years of Learning-Adjusted Years of School (2020 estimate). 43% of children are malnourished.

The DRC’s natural resources are immense and diverse, and the country has the world’s second largest primary humid tropical forest endowment and carbon sink globally. However, forest loss rates have accelerated in recent years, and in 2020, the DRC lost 1.31 million ha of natural forest, equivalent to 854 million ton of CO₂ of emissions. This has had deleterious environmental impacts (including on climate change, biodiversity, and rainfall patterns) and is threatening the livelihoods of the 35 million people who depend on forest resources.

Last Updated: Oct 27, 2021

Since the WBG re-engaged in 2001, the World Bank has financed 55 projects in the DRC, with a total committed amount of nearly $9 billion. Out of the $9 billion committed since 2001, $4 billion went to infrastructure investments — with a focus on reconstruction and rehabilitation of basic infrastructure. Investments have spurred economic activities and improved the connectivity and proper functioning of DRC’s high-priority transport corridors, resulting in 71% of the country’s high-priority road network being rehabilitated, maintained, or built out. Energy sector investments have focused on rehabilitating hydropower plants and transmission networks, increasing Inga’s electricity production by 632 MW and augmenting power supply to mines, but with limited investment in the distribution network segment.

WBG engagement is guided by a Country Partnership Framework (CPF) prepared for a five-to-six year period. A new DRC-WBG CPF for 2021-2026 is currently under preparation. The CPF builds on extensive analysis of WBG engagements in DRC since 2001 and key analytical work, including a 2018  Systematic Country Diagnostic (SCD), a 2021 update to a DRC Risk and Resilience Assessment, spatial analysis, poverty analysis, and a 2020 CPSD. Government priorities and input from consultations will be carried forward and reflected in the CPF structure and proposed program. The forthcoming CPF and engagements supported under the framework will have a strong focus on addressing drivers of fragility, conflict, and violence. There will also be a focus on mitigating impacts from COVID-19 and building resilience to shocks and on climate. The World Bank is proposing to adopt a territorial development approach in the DRC, focusing on provinces that have high population density, high concentration of poor and are affected by conflict and violence. Furthermore, the World Bank is proposing to engage through large, multi-sector projects that aim to achieve synergies and provide holistic development responses. The WBG will also support reform agendas in a new generation of infrastructure investment projects that aim to bring in the private sector. Starting in FY20, during which the World Bank committed $1.65 billion to social sectors, World Bank engagements in the DRC focus on social sectors and human capital development, strengthening governance and supporting key reform initiatives. To support the implementation of this approach, the World Bank has opened liaison offices in Goma in North Kivu province, and in Kananga, in the Kasaï Central province.

As of March 1, 2021, the World Bank portfolio in the DRC totaled $4.8 billion, with 20 national projects ($4.23 billion) and four regional projects ($565 million). Engagements span key development areas, including: economic management, governance, and private sector development; human capital (health, education, social protection); sustainable development (infrastructure and connectivity, agriculture and food security, access to electricity and water, urban development); women’s empowerment and prevention and response to Gender-Based Violence.

On April 2, 2020, the World Bank approved a $47.2 million emergency operation to help the country respond to the COVID-19 pandemic. In addition, a Pandemic Emergency Financing Facility (PEF) allocation of $13 million for COVID-19 has been approved. In addition to support the COVID-19 vaccine purchase and deployment n on June 29, 2021 an additional financing of $200 million was approved by the board of the World Bank. The AF will finance vaccine procurement to cover 10% of the population through procurement of 10 million doses of Johnson & Johnson vaccines through AVAT, as well as deployment costs for all vaccines to support the government in reaching its target of covering 30% of the population. As of October 15, 2021, the project is awaiting project effectiveness and ratification by the National Assembly.

Last Updated: Oct 27, 2021

HUMAN CAPITAL

Social protection

Building on the success of the Eastern Recovery Project (STEP), additional financing for “STEP 2,” continues to support the restructuring of the social protection sector, while financing a comprehensive safety nets program. Results include:

• Providing temporary employment to more than 6,800 vulnerable people beneficiaries in 27 communities of Kasai central, 50% of whom are women;
• Rehabilitating and/or building 26 schools (nearly 200 classrooms)

STEP 2 is also supporting the government’s efforts in mitigating the socio-economic impacts of COVID-19 (coronavirus) on vulnerable households in Kinshasa.

Additionally, an Ebola emergency social response program has provided temporary employment for more than 26,937 people in nine affected health zones of eastern DRC, 55% of whom are women.

INFRASTUCTURE AND SUSTAINABLE DEVELOPMENT

Infrastructure

• The High-Priority Roads Reopening and Maintenance Project (Pro-Routes) has rehabilitated more than 3,000 kilometers of roads in the country’s northern and western regions, reviving economic activity. The project also provided access to an all-weather road for more than 6 million rural residents.
• The regional Great Lakes Trade Facilitation Project has improved border infrastructure and operating environment for small-scale traders at four locations in North and South Kivu, and supported associations for small-scale traders to continue to trade across borders during the COVID-19 pandemic.

Energy

Under the ongoing Electricity Access and Service Expansion project:

• Nearly 200,000 people have gained access to electricity from the grid in Kinshasa and Goma. The number is expected to rise significantly, as major works began to rehabilitate and expand the distribution network in the central and western communes of Kinshasa.
• Over 9,500 households were equipped with solar home systems, as off-grid solar private operators start to roll out solar kits and lanterns, thanks to results-based subsidies provided through the project financing
• Start up support was provided to the recently established electricity regulator (Autorité de Régulation du secteur de l’Electricité) and rural and peri-urban electrification agency (Agence Nationale de l’électrification et des Services Energétiques en milieu Rural et Peri-urbain). Further support will be provided to help these important agencies become operational.  
• The development of a national geospatial electrification plan along with an investment prospectus for the first five years, and prefeasibility studies to electrify 21 provincial capital cities is nearing completion.

Water

Under the World Bank Urban Drinking Water Supply Project (PEMU):

• More than 75,000 new private connections and more than 450 new standpipes were installed in Kinshasa, Lubumbashi, and Matadi, providing drinking water access to over 2.7 million people.
• REGIDESO’s operational and financial performance was strengthened.

Urban

The Urban Development Project (PDU) has contributed to:

• Improved connectivity and livability for about 290,000 persons in eight secondary urban centers through upgrading of more than 27 kilometers of roads.
• Improved urban governance through technical assistance and performance-based investments.
• Investing to stop fast advancing erosions in Kananga that threaten main infrastructure (airport, railway, markets).

Forests and Climate Change

Under a World Bank Improved Forested Landscape Management Project (IFLMP):

• 20,000 hectares of agroforestry plantations established on degraded lands in western DRC to provide the city of Kinshasa with more sustainable charcoal and agricultural commodities
• 168,000 hectares of exclosures established and maintained to protect land areas from bush fires and facilitate natural regeneration.
• 110,000 people in forest & adjacent communities with monetary and non-monetary benefits, and 2.6 million USD in Payment for Ecosystem Services distributed to communities.
• 86,000 efficient cookstoves distributed with improved climate and health benefits.
• 5.9 million tCO2eq emission reduced through the above results.

Last Updated: Oct 27, 2021

The World Bank is a member of the Donor Coordination Group that aims to harmonize development partner activities in the field. It is working closely with the UN, UNFPA, UNICEF, WHO, USAID, the Agence française de développement (AFD), the British Development Agency (DFID), GIZ/KFW and the Belgian Cooperation Agency.

Last Updated: Oct 27, 2021