CONGO: The African Development Bank Group has approved a loan of €92 million to the Republic of Congo to support economic diversification. The loan will be used to implement the first phase of the Economic Diversification Support Program, which aims to reduce Congo’s dependence on the oil sector and strengthen the resilience of its economy while combating climate change.
The program’s top priority is to strengthen budgetary discipline through more effective and transparent management of public resources, specifically public investments, and improve the governance and viability of public corporations. The program also aims to support the diversification of the Congolese economy and strengthen its competitiveness by improving the business environment, supporting reforms in the electricity sector, and developing productive sectors.
Serge N’Guessan, Director General for the African Development Bank in Central Africa, stated that implementing the program will focus on the effectiveness of public investments and modernizing the governance of public corporations. It will help to diversify the Congolese economy and promote productive sectors by strengthening competitiveness factors and generating value from natural resources that have been relatively neglected until now.
The loan is expected to have a significant impact on Congo’s economy, which has been heavily reliant on the oil sector. The program’s implementation will reduce Congo’s vulnerability to fluctuations in oil prices and help to create a more sustainable and diversified economy.
In June 2023, the African Development Bank Group’s active portfolio in Congo comprised 10 projects, with a total commitment of €344.9 million. The loan is part of the bank’s ongoing efforts to support economic development and social progress in Africa.
The African Development Bank Group is the premier multilateral financing institution dedicated to Africa’s development. It comprises three distinct entities: the African Development Bank, the African Development Fund, and the Nigeria Trust Fund. The AfDB has a field presence in 41 African countries, with an external office in Japan, and contributes to the economic development and social progress of its 54 regional member states.
The African Development Bank Group’s loan of €92 million to Congo for economic diversification is a significant step towards reducing the country’s dependence on the oil sector and creating a more sustainable and diversified economy. The loan will help to strengthen budgetary discipline, improve the governance of public corporations, and support the development of productive sectors. The program’s implementation is expected to have a positive impact on Congo’s economy and contribute to the bank’s ongoing efforts to support economic development and social progress in Africa.
