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Democratic Republic of the Congo: Selected Issues and Statistical Appendix

Author(s):
International Monetary Fund
Published Date:
June 2003
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III. Reunification of the Democratic Republic of the Congo: Some Issues and Challenges29

88. This section provides a brief overview of some of the main issues of the reunification of the DRC, the situation in the rebel-controlled areas, and the need for external assistance and the challenges of reunification.

A. Introduction

89. After years of conflict, during which the DRC was divided along battle lines, the reunification of all provinces under a common and inclusive authority, is a sine qua non for peace to hold, both within the country and within the subregion, for the economy to recover and grow again, and for the current social crisis to be addressed. It is widely recognized that failure could result in reigniting the war: chaos and poverty in the border regions would make it possible for foreign rebel groups to operate again from the DRC, which, in turn, could trigger a new round of foreign interventions and generalized conflict. Success in the economic arena—which will require the successful economic and social stabilization of key areas, the rapid generation of “peace dividends” even if initially only on a relatively small scale, the return of economic growth, the reconnection of the different parts of the country, and the restoration of basic public and social services—will be critical to prevent such a scenario from happening.

90. With the recent progress toward peace, the withdrawal of foreign troops, and the ongoing negotiations for putting in place a new and inclusive political dispensation, a window of opportunity for a peaceful and successful reunification has opened. But the process will be a delicate one, and its different components—political, military, and economic—need to be well integrated and carefully managed. Although the process will have to be carried through to a successful conclusion by the Congolese themselves—government, leaders of the rebel movements, prominent figures in the nonarmed opposition, civil society activists, and the people—external support, particularly financial support, will be critical for success.

91. For the DRC’s development partners, the challenge will, hence, be to think through and coordinate their assistance, including targeting and implementation, in such a way that it best contributes to successful reunification. Planning such an intervention is, however, made difficult by the “fog of war” that still surrounds a number of areas that are not under government control. Detailed and systematic data are often missing on the status of critical infrastructure or on the conditions in which social services are delivered in provinces. And the current fluidity of the political and security situation makes it difficult to identify solid Congolese counterparts in the development process, as well as short- to medium-term needs.

92. In this context, and given the urgency, it is particularly important to engage in a rapid, but in-depth, consultation process among donors and with the other international actors involved in supporting the reunification process, to ensure that donor-supported activities are a consistent and integral part of a broader effort to consolidate peace and support the ongoing stabilization and reconstruction efforts of the authorities.

B. The Situation in Rebel-Controlled Areas

93. Rebel-held areas are characterized by a high degree of diversity (see the annex to this section for a description of the situation and tentative priorities in each area). They stretch over about 1 million square kilometers and a number of ethnic groups. These areas have gone through different types of ordeals over the last years and are ruled by a variety of leaders and warlords. As a result, needs, institutional structures, and security conditions vary greatly from one area to the next, sometimes even from one locality to the next.

94. Still, as a whole, the rebel-controlled parts of the DRC are facing a very severe social and humanitarian crisis. The conflict has taken a heavy toll on these areas. Out of a prewar population estimated at about 20 million,30 about 3 million are believed to have died as a result of the conflict.31 More than 2.4 million people are internally displaced and live in extreme poverty, even by Congolese standards. Human rights abuses have been widespread, particularly sexual abuses, and human suffering has reached horrendous levels. While social indicators for the DRC as a whole are among the lowest in Africa, social indicators in most rebel-held areas are even worse as a result of population displacements, economic disruptions, and continued insecurity.

95. The state of the economy mirrors this crisis. Widespread insecurity, disruptions of trade, and resulting shortages have forced many communities to return to autarky, while prices have skyrocketed in urban centers and food-deficit areas. The widespread looting of public and individual assets and the absence of effective economic management have discouraged economic production, while preparing the soil for a mushrooming of criminal and semicriminal networks. Natural resources are reportedly exploited to the sole benefit of a variety of private interests.32 Access to health care and education has been substantially reduced, creating the conditions for long-term impoverishment, the spread of disease, and even the perpetuation of conflict for a younger, unschooled generation. Overall, the economy has been transformed into a combination of subsistence activities (for the many) and predation (by the elites).33 The challenge is, therefore, to restart an idle engine and restore economic growth, and to turn around the systems and incentives that have emerged over the last years and to put in place the conditions for a healthy recovery.

96. This challenge is compounded by a deep institutional crisis. Rebel-held areas are characterized by a high degree of fragmentation, resulting from political feuds as well as communications constraints. In some areas, de facto authorities seem to enjoy only a limited amount of popular support and recognition, while in other places criminal networks and armed bands dominate. Many local institutions are no more than former branch offices of national entities that have lost part of their staff, facilities, and equipment. Technical capacity is scarce, salaries rarely paid, and corruption widespread. Restoring public authority and an effective capacity to deliver minimal social services is critical for tackling the humanitarian crisis and spurring economic recovery. In the short term, the lack of institutional capacity will be an obstacle to the implementation of economic rehabilitation activities.

C. External Assistance and the Challenges of Reunification

97. In view of the magnitude of the needs and of the DRC’s limited fiscal capacity, external assistance will be critical to break the cycle of poverty and insecurity. But it is important to underline two critical aspects of the reunification process:

  • The challenges associated with reunification are not limited to the northern and eastern parts of the country. The objective is to establish a unified, inclusive, and effective governance system, with a proper balance between the different levels (central, provincial, and local) of government. This is expected to require in-depth institutional reforms over the medium term that will affect both government- and rebel-held areas. The economic reunification of the country will also be conditional on the reconstruction and rehabilitation of countrywide infrastructure networks. Finally, only a balanced development of the various parts of the country will allow a sustainable return to political stability and economic growth. For donors, the challenge will, therefore, be to balance assistance throughout the country and to adjust the type and level of interventions in response to specific needs and opportunities.

  • The success of reunification requires a coordinated effort to tackle political, military, economic, and social issues. Hence, the articulation of economic support with the other aspects of the reunification process is critical. In particular, the pace of assistance delivery has to be well-defined and flexible: intervening too early or with inadequate instruments may well raise expectations and complicate the political process, while intervening too late could result in missing windows of opportunity. Similarly, the selection of Congolese counterparts for the design and implementation of assistance projects is likely to lead to entrusting some individuals and institutions with a degree of legitimacy, and this process needs to be carefully handled.

98. Continued assistance to the DRC as a whole is critical for the success of the reunification process. Still, the reintegration of northern and eastern areas will also call for additional programs, particularly to achieve the following objectives in four areas:

  • To restore sound economic governance. While there has been very significant progress in government-controlled areas in creating the conditions for good economic governance, there has been little, if any, comparable action in rebel-held areas. Key institutions have to be reestablished. Reforms already undertaken on the government side now have to be implemented throughout the country, particularly with respect to issues of transparency, public expenditure management, private sector activities, and the exploitation of natural resources. The external provision of capacity building and technical assistance will be critical in this effort.

  • To mitigate the fiscal cost of reunification (Box III.1). The cost of reunification, particularly in the short term, is expected to be relatively high. Transfers to the rebel-held areas will be needed, particularly to restart payment of civil service wages, and to contribute to alleviating the humanitarian crisis. However, the restoration of a fair and effective revenue collection system will take time. There is, therefore, likely going to be a fiscal gap during the transition period that will have to be filled by the government through a combination of revenues collected in the areas currently under its control and external assistance.

  • To rehabilitate essential infrastructure and restore social services. The challenge will be to produce rapid results in a difficult environment, while laying the groundwork for sustainable recovery in infrastructure and social sectors. Building on existing experience in government-controlled areas, donors will need to rapidly put in place effective mechanisms to (a) overcome the lack of implementation capacity, and (b) ensure adequate coordination in order to minimize gaps, avoid overburdening a limited administrative capacity, and create synergies and leverage. A particular focus could be placed on labor-intensive schemes as a way to rapidly provide resources to many impoverished families.

  • To demobilize and reintegrate former combatants. Within the context of the Multi-Country Demobilization and Reintegration Program, special efforts will be needed to successfully demobilize, disarm, and socially reintegrate foreign combatants currently present in the DRC. In parallel, action will be needed to provide young Congolese currently involved in armed groups with options for their social reintegration. To mitigate moral hazard issues, however, this should be part of a broader effort for community recovery without a special targeting of former combatants. It should, hence, be addressed as part of the rehabilitation activities discussed above, rather than through specific programs.

Box III.1.Fiscal Issues

Financial relations between central and local governments

The Democratic Republic of the Congo is divided in eleven provinces. The government currently has control over six of them, covering around 60 percent of the population of the country, and partial control over another one, Equateur.

Financial relations between central and local governments are determined by the 1983 organic budget law and the 1998 decree on the territorial and administrative organization of the DRC. There are four levels of local governments, called Entités Administratives Décentralisées (EAD): Provinces, Villes, Territoires, and Communes (for Kinshasa). In the meantime, the central government provides local services in the provinces and territories. Heads of EADs, such as province governors, also oversee the central government services localized in their jurisdictions.

The resources of the EADs consist of local taxes and transfers from the central government. These transfers, called rétrocessions, are calculated on the basis of the amount of central government taxes and duties collected in the provinces, and are paid in the provinces’ accounts at the central bank. Rétrocessions have been officially set at 20 percent of revenues collected in the provinces, but only 10 percent are automatically transferred by the central bank to the provinces, the other part having been rarely paid in recent years. Transfers to provinces under government control amounted to CGF 5 billion in 2002. These funds are intended for all the EADs of the province, but there is no information on their effective distribution among them.

The central government directly pays the wages of the civil servants in its branches located in provinces under government control; it also covers their current expenditure. In recent years, payments for their current expenditure were very low, and it is most likely that these services have been financed through rétrocession funds, without a clear distinction made between the provinces’ accounts and the central government branches’ accounts.

Impact of reunification on the budget

Before the beginning of the war in 1998, revenues collected from the provinces currently occupied by rebel movements accounted for 10 to 20 percent of revenue of the various collecting agencies. Considering the lack of information on revenues actually collected in these areas, and likely consequences of the war on the economic situation and on the administrative capacity of the collecting units, as well as the probable disturbances arising from the transition process, the impact of reunification on revenues collected by the main collecting agencies has been estimated at 5 percent in the 2003 budget (0.37 percent of GDP). Government revenue from rebel-controlled areas is not expected to reach levels close to those observed until four to five years after reunification.

The number of civil servants in occupied territories is estimated on the basis of historical data to amount to 144,000, of which 81,000 are teachers. Considering the lower level of salaries in the provinces, where civil servants do not benefit from the transportation allowance granted in Kinshasa, the direct impact on the wage bill of reunification would be about CGF 5 to 6 billion (0.25 percent of GDP). However, the government has not yet been able to conduct surveys in these territories and the war is likely to have had a noticeable impact on the actual numbers and location of civil servants in the territories.

The government is committed to undertaking surveys to estimate revenues, actual expenditures, and needs in the occupied territories, with the help of the international community, before submitting to parliament a supplementary budget law that will take into account, inter alia, the full impact of the reunification of the country.

ANNEX: Situation and Tentative Priorities in Specific Rebel-Held Areas

99. Areas controlled by the Mouvement de Libération du Congo (MLC). The Uganda-backed MLC is in control of most of the northern part of the country (about half of Equateur Province, and a smaller part of the Province Orientale), a largely forested region with several middle-sized cities and market towns, and home to about 4 to 6 million people.34 This control is effective throughout this area:

  • Political situation. The MLC is a relatively unified and well-organized movement composed of a coalition of political opponents to Laurent-Désiré Kabila (who were initially part of the RCD), people linked to Mobutu-era business circles, and regional leaders from Equateur Province. It is efficiently led by a wealthy and reportedly popular businessman, Jean-Pierre Bemba.35

  • Security situation. The MLC has a relatively well-structured military (with about 6,500 to 9,000 troops), which was until recently backed up by a Ugandan contingent.36 At this time, there seems to be no major security issue in the areas under MLC control.37 Although there may be localized pockets of violence in some areas (particularly those difficult to access), security conditions do not seem to be a major obstacle to economic recovery.

  • Economic situation. Prior to the conflict, those in the MLC-held areas (which include the home province of former President Mobutu Sese Seko) lived on small-scale agriculture, as well as wood and coffee exports. The disruption of communications, in particular along the Congo River, has taken a heavy toll on these activities, and the population has returned to subsistence agriculture. Still, the MLC has been administering the areas under its control and has maintained a taxation system, but institutional capacity seems very limited and corruption is allegedly pervasive.38

  • Humanitarian and social situation. As in many other parts of the country, living standards have significantly deteriorated over the last decade, and many live in acute poverty.

  • Key risks and challenges. The main risks for successful economic recovery in the northern DRC are linked to issues of transparency and governance. The short-term challenges will include relinking the provinces to the rest of the country and restoring the effective delivery of public and social services.

  • Tentative priorities. Tentative priorities could, hence, include (a) restoring a proper environment for private sector activity, (b) restoring a minimal (and paid) public service, (c) establishing mechanisms for the effective implementation of community-level recovery projects for both physical rehabilitation and social services delivery, (d) restoring transport on the Congo River and its tributaries, and (e) preparing for further, large-scale assistance programs.

100. Areas controlled by the Rassemblement Congolais pour la Démocratie-Goma (RCD-Goma). The Rwanda-backed RCD-Goma is in control of most of the eastern part of the country (North and South Kivus, northern Katanga, part of Maniema, and part of Province Orientale, including Kisangani), a largely agricultural and mining region that is home to about 10 to 14 million people. This control seems most effective in urban settlements, while the situation in many rural areas is more chaotic.

  • Political situation. Over the last years, the RCD-Goma has been described as a relatively loose coalition plagued with internal divisions and successive splits.39 Its leadership has been subject to frequent changes (the movement is currently led by Adolphe Onusumba). Observers have raised questions about the extent of popular support the RCD-Goma is enjoying in some of the areas under its control.40

  • Security situation. Security in the eastern DRC has suffered from the effects of years of war, and a predatory system of violence has gradually taken root, in parallel with the resurgence of ethnic politics.41 In recent years, about a dozen groups of Mayi-Mayi insurgents (a revival of traditional rural militias) have emerged, allegedly to ensure the self-defense of communities or engage in banditry. Other ethnic-based armed groups have appeared, notably among the Banyamulenge. And foreign rebels, in particular Rwandan groups associated with the génocidaires, have been operating from and within this region. As a result, the about 20,000 RCD-Goma troops have reportedly largely lost control of many rural areas.42 Prior to the withdrawal of Rwandan troops, the situation was compounded by clashes with breakaway RCD factions (e.g., for the control of Kisangani last May). Insecurity and conflict have resulted in gross human rights violations.43

    Following the withdrawal of Rwandan troops in October 2002, attacks by the Mayi-Mayi have intensified with the apparent objective of capturing key cities. The current situation is characterized by a high degree of volatility, which could partly diminish after the completion of the ongoing political negotiations. Still, while the situation is relatively stable in key cities, rural eastern Congo is likely to remain a patchwork of stable and unstable areas for some time, where security conditions have to be assessed on a local basis, with some areas sufficiently safe for economic recovery programs to be implemented, and others still subject to violence and insecurity.

  • Economic situation. Prior to the conflict, people in the RCD-Goma-held areas were making a living from agriculture, including export agriculture, and selected mining activities. After years of conflict, most of the population relies on subsistence agriculture, informal activities, and limited humanitarian assistance for survival. In parallel, a sophisticated and relatively well-structured system of exploitation of natural resources has been put in place, reportedly with the involvement of criminal groups and foreign elites.44 This exploitation has been complemented by the organized stripping of large parts of the assets of public enterprises and financial institutions.45 Revenues from the still-functioning taxation system are allegedly not used to provide public services and may have been diverted to finance foreign military forces.46 Damage to both large and local infrastructure could be important in some areas. Disruption of the transport system may be one of the most critical obstacles to economic activity. Many communities are largely excluded from the cash economy and have turned to barter.

  • Humanitarian and social situation.47 These areas have been very severely affected by the war, which has taken a disproportionate death toll. A large part of the 3 million people who died as a result of the conflict were living in eastern Congo. The UN Office for Coordination of Humanitarian Affairs (OCHA) estimates that about 15 percent of the population was displaced in 2001 in these areas. More than three-fourths of families living in rural areas have been forced to move at least once in the last five years, with the predictable consequences of food insecurity, malnutrition, and high mortality rates for both the displaced and host populations. The HIV/AIDS epidemic is spreading, partly as a result of the presence of troops from countries with high HIV/AIDS prevalence and of the large-scale sexual abuses that have been taking place for the last five years.48 In short, the humanitarian crisis is acute.

  • Key risks and challenges. Overall, key risks that may impede economic recovery include security issues and the apparent lack of technical Congolese counterparts with the authority and capacity to make commitments in some sectors. Short-term challenges will include restoring an effective economic governance framework and putting an end to the looting of public assets, reconnecting remote areas that have been forced into autarky (and in particular reintegrating them into the cash economy), and addressing the urgent social and humanitarian crisis.

    In some areas, the provision of assistance is likely to remain constrained by issues of access and security. In this context, one option would be to direct economic assistance primarily to those areas that are already stable, with a focus on quick-impact activities, so as to consolidate the situation and create positive dynamics. In the short term, these areas could include key urban centers (such as Kisangani and Goma) and their immediate vicinity. They could then be gradually enlarged as stability is gradually restored.

  • Tentative priorities. Tentative priorities could, hence, include (a) restoring the rule of law, (b) establishing a proper framework for the exploitation of natural resources, (c) opening key sectors for transparent involvement of a reputable private sector, (d) restoring a minimal public service (payment of employees’ salaries will be critical to restore a cash economy), (e) establishing mechanisms for the effective implementation of community-level recovery projects, in particular to reestablish communications, (f) fighting the spread of the HIV/AIDS epidemic, and (g) preparing for further, large-scale assistance programs.

101. Other rebel-held areas. These areas include most of Province Orientale (not including Kisangani) and some parts of North Kivu. Together, they constitute a largely forested region (with some mining resources) that is home to about 3 to 4 million people; however, this area is fragmented into relatively small territorial units, each controlled by a specific armed faction. Overall, chaos seems to prevail in most of these areas.

  • Political situation. These areas are controlled by several breakaway factions, resulting from the continued fragmentation of the RCD-Goma, including the RCD-Mouvement de Libération (RCD-ML)-Kisangani, the RCD-ML-Bunia, the RCD-ML-Beni-Butembo, the RCD-National, and the RCD-Congo.49 Recently, these groups have benefited from the support of Uganda, and have engaged with one another through shifting alliances and sporadic confrontations. Still, their control over many areas remains limited, and the role of both traditional authorities and criminal networks seems important.

  • Security situation. The deterioration of the security situation in the northeastern DRC and the accompanying human rights abuses have been a source of concern for the UN Security Council for several months.50 The fragmentation of the region, absence of clear leadership, internecine fighting between rebel groups, emergence of Mayi-Mayi militias, and recurrent ethnic clashes (in particular between the Hema and Lendu clans) have resulted in explosions of extreme violence. The withdrawal of Ugandan troops has aggravated the situation—and the UN has requested the Ugandan government to maintain some minimal forces in specific areas for an interim period to prevent the emergence of a power vacuum and a further deterioration of security conditions. To date, the situation is characterized by a high degree of political confusion and volatility. Addressing the current security crisis is a critical prerequirement for the effective implementation of the economic recovery programs.

  • Economic situation. Prior to the conflict, the population of northeastern DRC was making a living on forestry and agriculture activities, with additional revenues from gold mining. The disruption of communications and the widespread insecurity have resulted in a quasi-interruption of economic activities, the return to autarky, and the development of smuggling under semicriminal networks.51 A taxation system has been maintained but seems to function mostly as a predatory mechanism to the benefit of local elites and the networks to which they are affiliated.52 Technical institutions are in shambles. Infrastructure damage may be relatively limited, due to the prewar underequipment of the region. Many communities are largely excluded from the cash economy and have turned to barter.

  • Humanitarian and social situation. The northeastern DRC has been disproportionately affected by the war. Many have died. About 20 percent of the population is believed to be internally displaced. Displacements and insecurity have had a direct impact on agricultural production, food security, and levels of malnutrition. HIV/AIDS is spreading as a consequence of population movements and sexual abuses. Overall, the humanitarian crisis is acute.

  • Key risks and tentative priorities. The key risk, which could impede economic recovery, is the continued deterioration of the security situation. The short-term challenges will center on restoring security in the region, generating employment for former members of armed groups, restoring a cash economy, and addressing the urgent social and humanitarian crisis.

  • Tentative priorities. Tentative priorities could, hence, include (a) restoring the rule of law and key institutions; (b) establishing mechanisms for the effective implementation of local-level employment-generation, agricultural support, and social reintegration activities; (c) fighting the HIV/AIDS epidemic; and (d) preparing for further, large-scale assistance programs.

STATISTICAL APPENDIX: Democratic Republic of the Congo: Basic Data, 1997–2001
Area2,345,000 square kilometers
Population (2001 estimates)
Total54 million
Annual growth rate2.7 percent
GDP per capita (2001 estimate)US$111.3
19971998199920002001

Est.
(Annual percentage changes, unless otherwise indicated)
Output and prices
Real GDP−5−2−4−7−2
Nominal GDP (in billions of Congo francs)810522971,464
GDP deflator18530442516403
Consumer prices, annual average19929285550357
Consumer prices, end of period14135484511135
(In millions of Congo francs, unless otherwise indicated)
Central government finances
Revenue (excluding grants)4045912,32915,09191,276
Grants (excluding humanitarian aid)00000
Expenditure8691,2334,93432,988115,147
Primary balance (commitment basis)−261−240−1,490−11,723−4,339
Overall balance (commitment basis)−465−642−2,606−17,897−23,871
Overall balance (cash basis)−273−267−1,786−12,1817,916
Overall balance (commitment basis, percent of GDP)−5.8−6.4−5.0−6.0−1.6
Money and credit
Net domestic credit3527123,96416,67823,426
Net credit to the government3056143,63113,73012,242
Credit to the private sector40802842,53910,789
Credit to parastatals71850409395
Broad money2967703,71022,00469,686
Central bank interest rate (level in percent)1322120120140
(Changes in percent of beginning-of-period broad money,

unless otherwise indicated)
Net domestic credit15712142334331
Net credit to the government154104392272−7
Credit to the private sector313266137
Credit to the parastatals044100
Broad money71160382493217
(In millions of U.S. dollars, unless otherwise indicated)
External sector
Current account, including grants−200−426−113−198−250
Merchandise trade50240551621274
Exports, f.o.b.1,1961,181974892880
Imports, f.o.b.−694−775−458−680−807
Capital account−605−681−611−388−315
Overall balance−610−1,007−694−829−709
Gross official reserves4760665122
Gross official reserves
(In weeks of nonaid-related imports)2.62.75.43.81.4
(Annual percentage changes)
Exchange rate
Congo francs per U.S. dollar (end of period)1.32.44.550312
Nominal effective exchange rate 1/−83−84
Real effective exchange rate 1/−18−6
(In millions of U.S. dollars, unless otherwise indicated)
External public debt
Total, including IMF12,63413,50613,23812,60913,880
Of which: multilateral institutions2,4962,6192,5693,2383,363
official bilateral creditors9,71110,44910,2398,94210,215
Scheduled debt service, including interest on arrears
(In percent of exports of goods and services)64.266.777.575.275.7
Social indicators(In percent, unless otherwise indicated)
Life expectancy at birth (years)46.745.845.7
Infant mortality rate (per 1,000 live births)128
Education (percent of people age 15 and above)
Gross school enrollment rate
Male49.7
Female44.0
Literacy rate
Male83.0
Female54.0
Immunization rate (percent under 12 months)
Measles15.0
Diphtheria25.0
Child malnutrition (percent under 5 years)34.0
Sources: Congolese authorities; World Bank; and staff estimates.

Annual averages. Minus sign indicates depreciation.

Sources: Congolese authorities; World Bank; and staff estimates.

Annual averages. Minus sign indicates depreciation.

Table 1.Democratic Republic of the Congo: Gross Domestic Product by Sector at Market Prices, 1997–2001(In billions of Congo francs)
19971998199920002001

Est.
Primary sector4.35.331.7177.2966.3
Agriculture, forestry, livestock, hunting, and fishing3.84.627.1146.7824.3
Mining 1/0.50.74.630.5142.0
Secondary sector1.21.35.129.1133.2
Manufacturing0.50.62.614.257.1
Construction and public works0.30.31.412.564.4
Electricity and water0.40.41.12.411.7
Tertiary sector2.43.314.887.5344.3
Transportation and telecommunications0.20.31.49.439.5
Trade and commerce1.41.88.754.3218.2
Public administration0.20.42.17.126.4
Other services0.60.82.616.760.2
GDP at factor cost7.99.951.6293.81,443.8
Import duties and taxes0.10.10.43.220.2
GDP at market prices810522971,464
(Annual percentage change)16928419473393
Sources: Congolese authorities; and staff estimates.

Including processing of minerals.

Sources: Congolese authorities; and staff estimates.

Including processing of minerals.

Table 2.Democratic Republic of the Congo: Gross Domestic Product by Sector at 1987 Prices, 1997–2001(In billions of Congo francs)
19971998199920002001

Est.
Primary sector0.990.990.930.920.90
Agriculture, forestry, livestock, hunting, and fishing0.890.880.810.800.77
Mining 1/0.100.110.120.120.13
Secondary sector0.170.160.180.180.16
Manufacturing0.090.080.080.080.07
Construction and public works0.050.050.060.060.05
Electricity and water0.030.030.040.040.04
Tertiary sector0.530.500.480.380.38
Transportation and telecommunications0.050.050.040.040.04
Trade and commerce0.320.300.270.270.26
Public administration0.040.050.070.030.03
Other services0.120.100.100.040.05
GDP at factor cost1.691.651.591.481.44
Import duties and taxes0.020.030.010.010.02
GDP at market prices1.711.681.611.491.46
Sources: Congolese authorities; and staff estimates.

Including processing of minerals.

Sources: Congolese authorities; and staff estimates.

Including processing of minerals.

Table 3.Democratic Republic of the Congo: Gross Domestic Product by Sector at 1987 Prices, 1997–2001(Annual percentage change)
19971998199920002001

Est.
Primary sector−4.1−0.3−6.2−1.5−1.6
Agriculture, forestry, livestock, hunting, and fishing−2.8−1.5−8.1−1.7−3.0
Mining 1/−14.210.08.20.87.5
Secondary sector−23.4−2.410.4−2.8−8.0
Manufacturing−21.8−14.43.90.0−12.5
Construction and public works−30.65.913.0−1.6−13.3
Electricity and water−10.6−3.09.40.011.4
Tertiary sector−0.9−5.5−3.2−20.80.0
Transportation and telecommunications−4.2−11.3−21.30.0−5.4
Trade and commerce−2.1−6.2−11.60.0−4.5
Public administration15.422.532.7−53.86.7
Other services−1.3−19.23.1−60.025.0
GDP at factor cost−5.5−2.1−3.5−6.8−2.8
Import duties and taxes−1.527.3−50.0−28.6110.0
GDP at market prices−5−2−4−7−2
Sources: Congolese authorities; and staff estimates.

Including processing of minerals.

Sources: Congolese authorities; and staff estimates.

Including processing of minerals.

Table 4.Democratic Republic of the Congo: Gross Domestic Product by Sector at 1987 Prices, 1997–2001(In percent of GDP)
19971998199920002001

Est.
Primary sector58.259.157.961.461.6
Agriculture, forestry, livestock, hunting, and fishing52.352.550.453.352.8
Mining 1/5.96.67.48.08.8
Secondary sector9.89.711.211.711.0
Manufacturing5.34.65.05.44.8
Construction and public works3.03.23.84.03.6
Electricity and water1.91.92.22.32.7
Tertiary sector30.729.629.925.526.0
Transportation and telecommunications3.12.82.32.52.4
Trade and commerce18.918.116.718.017.5
Public administration2.32.94.02.02.2
Other services7.05.86.22.73.4
GDP at factor cost98.798.399.199.398.6
Import duties and taxes1.31.70.90.71.4
GDP at market prices100.0100.0100.0100.0100.0
Sources: Congolese authorities; and staff estimates.

Including processing of minerals.

Sources: Congolese authorities; and staff estimates.

Including processing of minerals.

Table 5.Democratic Republic of the Congo: Components of Aggregate Demand and Savings, 1997–2001
19971998199920002001

Est.
(In millions of Congo francs, unless otherwise indicated)
Consumption7.69.947.3283.81,416.5
Government0.60.83.122.384.6
Nongovernment7.09.144.2261.51,331.9
Gross investment0.20.21.610.376.2
Government0.00.00.61.31.5
Nongovernment0.20.21.08.974.7
Net exports of goods and services0.3−0.13.23.0−28.7
Exports1.52.712.266.5262.5
Imports1.22.89.163.5291.2
GDP at market prices8.010.052.0297.01,464.0
Net income from abroad−0.5−0.8−4.7−26.8−112.5
Net current transfers0.00.10.210.173.0
Gross national disposable income7.39.247.3280.41,424.5
Gross national savings0.0−0.70.2−3.48.0
Government−0.4−0.6−2.1−16.5−22.4
Nongovernment0.4−0.12.313.130.4
Current account, including grants−0.2−0.9−1.4−13.7−68.2
(In percent of GDP)
Consumption94.199.190.895.696.8
Government7.57.65.97.55.8
Nongovernment86.791.584.988.091.0
Gross investment2.52.13.13.55.2
Government0.50.11.10.50.1
Nongovernment2.02.02.03.05.1
Net exports of goods and nonfactors services3.4−1.26.11.0−2.0
Exports19.127.023.622.417.9
Imports15.828.217.521.419.9
GDP at market prices100.0100.0100.0100.0100.0
Net income from abroad−6.4−8.5−9.1−9.0−7.7
Net current transfers0.00.70.43.45.0
Gross national disposable income93.592.291.394.497.3
Gross national savings−0.6−6.90.5−1.20.5
Government−5.5−6.3−4.0−5.6−1.5
Nongovernment4.9−0.54.44.42.1
Current account, including grants−3.1−9.0−2.6−4.6−4.7
Sources: Congolese authorities; and staff estimates.
Sources: Congolese authorities; and staff estimates.
Table 6.Democratic Republic of the Congo: Selected Indicators of Production, 1997–2001
19971998199920002001

Est.
(In thousands of tons, unless otherwise indicated)
Mineral production
Copper37.738.231.230.837.8
GECAMINES36.437.229.627.521.2
SODIMICO1.21.01.63.30.6
Cobalt3.03.92.33.711.6
Cement124.9134.3159.1160.7192.1
Diamonds (millions of carats)22.026.120.116.018.2
Crude oil (millions of barrels)10.19.48.78.59.4
Gold (kilograms)394.0151.0207.069.318.9
Agricultural production
Palm oil16.816.96.14.54.2
Palm kernel oil0.40.60.50.20.1
Robusta coffee18.930.422.311.32.3
Arabica coffee4.18.62.1
Cocoa1.7
Rubber3.33.21.81.91.0
(In thousands of cubic meters)
Forestry
Logs97.8105.240.116.514.4
Sawn timber30.938.220.38.218.0
Transportation
Port activities1,0811,0909061,1541,115
Sources: Congolese authorities; and staff estimates.
Sources: Congolese authorities; and staff estimates.
Table 7.Democratic Republic of the Congo: Production and Capacity Utilization in Manufacturing, 1997–2001
Capacity of productionProductionUtilization Capacity
19971998199920002001

Est.
19971998199920002001

Est.
(In thousands of tons, unless otherwise indicated)(In percent)
Food processing
Maize flour245111719125785
Wheal flour2,700132113891179054343
Sugar1506457737343384949
Milk32,00035913082801000
Sweets3,1001151286633244211
Butter7,0001,7994,9484,8062,05226716929
Animal food2505348334021191316
Cigarettes7,4703,5553,8483,2003,71248524350
Beer (in millions of liters)6031721611451711552827242826
Soft drinks (in millions of liters)21668787581643136343730
Heavy industrial production
Steel4,300248118871596324
Nonferrous metal30028231959862
Holloware90032432023510036362611
Industrial chemicals
Explosives21,0214355133002462211
Soaps9926292628152930262938
Paints, veneer, and enamel900000222250
Acetylene150352414177231691113
Tires (in thousands of units)2804956380018201400
Nonmetallic minerals
Cement1,0351301451731692011314171619
Crushed stones1,80023924926019113131410
Bottles (in thousands of units)3723211823176157496247
Oil refinery75075380010500
(In thousands of square meters, unless otherwise indicated)
Textile and shoes
Cotton fabrics61,53010,5681,5633,0282,3612,353173544
Printed fabrics64,00011,22312,22016,85314,3343,600181926226
Shoes (in thousands of pairs)9,6001,7421,6098489623218179100
Blankets (in thousands of units)3006347363021161210
(in thousands of units)
Light industrial production
Metallic furniture200
Matchetes and wheels2,50030424520712108
Shovels and spades690506429227943
Sheet metal23110186756544373228
(In units)
Transport equipment
Cars6,4001569484211
Shipbuilding251324128
Ship repairs804335334954444161
(In thousands of square meters)
Tiles4506280107141824
Sources: Congolese authorities; and staff estimates.
Sources: Congolese authorities; and staff estimates.
Table 8.Democratic Republic of the Congo: Activities of Selected Transport Companies, 1997–2001 1/(In millions of units)
19971998199920002001

Est.
ONATRA 2/
Goods202.4164.9128.8184.3
Passengers109.759.957.362.864.8
SNCC 2/
Goods321.1403.5386.5429.3459.1
Passengers161.1143.0145.2187.9222.1
TMK
Goods6.22.4
Passengers0.90.2
LAC 2/
Goods2.01.3
Passengers24.019.1
Scibe Airlift 3/
Goods1.7
Passengers24.4
C.A.A.
Goods1.10.31.3
Total
Goods533.4573.2515.3613.6459.1
Passengers320.1222.2202.5250.7286.9
Sources: Congolese authorities; and staff estimates.

Tons per kilometer for goods, and passengers per kilometer for passengers.

ONATRA = Office National de Transports; SNCC = Société Nationale des Chemins de Fer Congolaise; LAC = Lignes Aériennes Congolaises.

Ceased operations.

Sources: Congolese authorities; and staff estimates.

Tons per kilometer for goods, and passengers per kilometer for passengers.

ONATRA = Office National de Transports; SNCC = Société Nationale des Chemins de Fer Congolaise; LAC = Lignes Aériennes Congolaises.

Ceased operations.

Table 9.Democratic Republic of the Congo: Retail Prices of Petroleum Products, 1997–2002 1/(In Congo francs per liter)
Premium GasolineKeroseneDiesel oil
West regionEast regionWest regionEast regionWest regionEast region
19970.11.30.81.00.91.3
19980.81.00.70.90.81.0
19993.12.62.82.33.12.5
2000707365686871
2001
January707365686871
February707365686871
March707365686871
April707365686871
May280320240280280310
June280320240280280310
July270310230270260300
August270310230270260300
September270310230270260300
October270310230270260300
November265300230265260295
December255290220255250285
2002
January255290220255250285
February255290220255250285
March255290220255250285
April255290220255250285
May255290220255250285
June255290220255250285
July255275220245250270
August255275220245250270
September255275220245250270
October255275220245250270
November280285245255275280
Source: Congolese authorities.

End-of-period prices.

Source: Congolese authorities.

End-of-period prices.

Table 10.Democratic Republic of the Congo: Production and Consumption of Electricity and Water, 1997–2001
19971998199920002001

Est.
(In millions of kilowatt-hours)
Electricity 1/
Total production4,8354,5195,1005,8135,798
Hydroelectric plants4,8274,5005,0745,797
Power stations8192616
Net domestic consumption3,8333,0653,7634,3964,360
Exports7732997491,274
Imports4355186
Losses1,0441,5061,3561,423
Water 2/(In millions of cubic meters, unless otherwise indicated)
Total production214208203188214
Domestic consumption128116103113126
Memorandum items:
Electricity subscribers264,803260,371253,351272,687263,019
Average monthly consumption
(in kilowatt-hours)1,2069811,2381,343
Water subscribers403,852418,428420,976
Average monthly consumption
(in cubic meters)262320
Sources: Congolese authorities; and staff estimates.

Société Nationale d’Electricité (SNEL).

Régie de Distribution d’Eau (REGIDESO).

Sources: Congolese authorities; and staff estimates.

Société Nationale d’Electricité (SNEL).

Régie de Distribution d’Eau (REGIDESO).

Table 11.Democratic Republic of the Congo: Consumer Price Index for Kinshasa, 1997–2002(Index, August 1995 = 100)
FoodRentClothingOtherGeneral IndexInflation Year to dateInflation Annualized rate
19972,1391414
19985,027135135
199929,357484484
2000171,392146,696255,363211,047179,368511511
2001
January228,316185,052368,733249,783232,572301,390
February231,025191,707374,064274,699240,36634570
March247,623235,694405,511288,974260,94645348
April291,028273,342446,339325,702302,01368392
May366,032369,227566,534550,957411,763130613
June372,177379,954640,547553,292420,894135451
July325,061303,753551,249433,962353,51997224
August362,308361,187664,101478,596398,436122236
September375,944400,176695,631499,953417,919133209
October390,488412,306733,623506,159431,515141189
November375,313417,738735,319546,248430,814140158
December363,385413,753718,795542,836421,685135135
2002
January377,459446,938766,068547,487437,635447
February378,806461,278752,753550,781440,901529
March370,288449,844748,109545,104432,740311
April369,199446,567749,542544,888431,64027
May372,224447,074753,373550,776434,91738
June381,399457,921759,786568,251445,830612
July383,526464,519768,754573,184449,446712
August386,957463,590768,766573,472451,482711
September391,089471,607770,623579,065456,330811
October404,522483,659782,167586,093468,1801113
November418,996501,288789,205636,058489,7891617
Source: Congolese authorities.
Source: Congolese authorities.
Table 12.Democratic Republic of the Congo: Central Government Operations, 1997–2001
1997 1/1998 1/1999 1/20002001

Est.
(In millions of Congo francs)
Revenue4045912,32915,09191,276
Income and profit taxes1011774084,72225,396
Taxes on goods and services901575203,68328,170
Taxes on international trade941483953,58521,463
Import duties881393723,20720,214
Export duties and others69233781,249
Other revenue1191091,0063,10116,246
Grants00000
Expenditure8691,2334,93432,988115,147
Wages and salaries3095282,0797,31223,540
Goods and services (including off-budget)27423298514,97761,090
Transfers and other subsidies43622003,1769,281
Interest payments 2/2044031,1166,17319,532
Other current expenditure0000203
Capital expenditure 3/3995541,3491,500
Overall balance (commitment)−465−642−2,606−17,897−23,871
Primary balance (commitment)−261−240−1,490−11,723−4,339
Change in arrears 4/1923758205,71531,787
Overall balance (cash)−273−267−1,786−12,1817,916
Financing2663093,01711,774−5,376
Domestic financing (net)2663093,01711,7741,577
External financing0000−6,953
Discrepancy 5/−7421,231−4072,540
Memorandum items:(In percent)
Revenue/total expenditure46.547.947.245.779.3
Wage bill/revenue76.789.389.348.525.8
Sources: Congolese authorities; and staff estimates.

For 1997 to 1999, the reliability of existing detailed data on expenditure is particularly weak.

Scheduled interest excluding interest on arrears.

Including net lending.

Until 2000, external arrears only.

For 1998 and 1999, the discrepancy is likely to stem from unrecorded off-budget expenditure.

Sources: Congolese authorities; and staff estimates.

For 1997 to 1999, the reliability of existing detailed data on expenditure is particularly weak.

Scheduled interest excluding interest on arrears.

Including net lending.

Until 2000, external arrears only.

For 1998 and 1999, the discrepancy is likely to stem from unrecorded off-budget expenditure.

Table 13.Democratic Republic of the Congo: Central Government Revenue, 1997–2001
19971998199920002001

Est.
(In millions of Congo francs)
Total budget revenue4045912,32915,09191,276
Tax revenue3245341,79212,57175,888
Taxes on income and profits1011774084,72225,396
Corporations and enterprises621211353,59219,319
Individuals33482451,0155,460
Dividends and interest44864346
Rental income231950271
Other00000
Taxes on property00000
Taxes on goods and services901575203,68328,170
Turnover taxes33772961,3799,425
Domestic turnover tax17251555884,199
Turnover tax on imports16531417925,227
Selective excises57802242,30418,434
Others311
Taxes on international trade941483953,58521,463
Import duties and taxes881393723,20720,214
Import duties861343603,11019,604
Statistical tax, penalties251197610
Export duties and taxes69233781,245
Export duties5818294967
Turnover tax11235116
Statistical tax, penalties01349162
Others00004
Other taxes4052469581858
Nontax revenue (including

administrative receipts)
79575372,52015,388
Memorandum items:(In percent of total)
Tax revenue80.390.376.983.383.1
Taxes on income and profits25.029.917.531.327.8
Taxes on goods and services22.326.622.324.430.9
Taxes on international trade23.225.016.923.823.5
Other taxes9.88.820.13.90.9
Nontax revenue19.79.723.116.716.9
Sources: Congolese authorities; and staff estimates.
Sources: Congolese authorities; and staff estimates.
Table 14.Democratic Republic of the Congo: Central Government Expenditure, 1997–2001
1997 1/1998 1/1999 1/20002001

Est.
(In millions of Congo francs)
Total budget expenditure8691,2334,93432,988115,147
Wages and salaries3095282,0797,31223,540
Other goods and services (including off-budget)27423298514,97761,090
Transfers and other subsidies43622003,1769,281
Interest on domestic debt0280458545
Interest on external debt 2/2043751,1165,71518,987
Other current expenditure0000203
Investment3995541,0621,694
Net lending000287−194
Memorandum items:(In percent of total)
Wages and salaries35.642.842.122.220.4
Other goods and services31.518.820.045.453.1
Transfers and other subsidies4.95.04.19.68.1
Interests on domestic debt0.02.30.01.40.5
Interests on external debt23.530.422.617.316.5
Other current expenditure0.00.00.00.00.2
Investment4.40.711.23.21.5
Net lending0.00.00.00.9−0.2
Sources: Congolese authorities; and staff estimates.

For 1997 to 1999, the reliability of existing detailed data on expenditure is particularly weak.

Scheduled interest excluding interest on arrears.

Sources: Congolese authorities; and staff estimates.

For 1997 to 1999, the reliability of existing detailed data on expenditure is particularly weak.

Scheduled interest excluding interest on arrears.

Table 15.Democratic Republic of the Congo: Sectoral Distribution of State-Owned Public Enterprises
EnterpriseAcronymActivity
Mining
1. Entreprise Minière de Kisengc “Manganèse”EMK “Mn”Mining
2. GECAMINES ExploitationGCM/E.Mining
3. Office des Mines d’Or de Kilo-MotoOKIMOGold mining
4. Société de développement industriel et minier du CongoSODIMICOMining
Energy
5. La Congolaise des HydrocarburesCOHYDROOil
6. Régie de Distribution d’auREGIDESOWater company
7. Société Nationale d’ElectricitéSNELElectricity company
Manufacturing
8. Entreprise Zaïroise d’ExplosifsEZADEXExplosives
Agriculture, forestry, and livestock
9. Cacaoyer du CongoCACAO-CONGOCocoa
10. Caisse de Stabilisation CotonnièreCSCOCotton board
11. Cotonnière du CongoCOTON-CONGOCotton company
12. Complexe Sucrier de LotokilaCSLSugar company
13. Office National du CaféONCCoffee board
14. Office National d’ElevageONDEHusbandry
15. Palmeraie du CongoPALMECOPalm oil
Transport
16. City-TrainCITYTRAINTransport
17. Compagnie Maritime CongolaiseCMCShipping company
18. Office de Gestion de Frêt MaritimeOGEFREMShipping agency
19. Office National de TransportsONATRATransport
20. Régie des Voies AériennesRVAAirport security
21. Régies des Voies FluvialesRVFWaterways management
22. Régies des Voies MaritimesRVMMaritime transport
23. Lignes Aériennes CongolaisesLACNational airline
24. Société Nationale des Chemins de Fer CongolaiseSNCCRailways
Post and telecommunications
25. Agence Congolaise de PresseACPPress agency
26. Radio Télévision Nationale CongolaiseRTNCBroadcasting
27. Office Congolais de Postes et TélécommunicationsOCPTTelecommunications
Financial and social security
28. Banque de Crédit AgricoleBCABanking
29. Caisse Générale d’Epargne du CongoCADECOSavings institution
30. Institut National de Sécurité SocialeINSSSocial security
31. Société Nationale d’AssuranceSONASInsurance
32. Dépôt Centre Médecine PharmaceutiqueDCMPPharmaceutical
33. Foire Internationale de KinshasaFIKINTrade promotion
34. Fonds de Promotion de l’IndustrieFPIPromotion of industrial activity
35. Hôtel KaraviaKARAVIAHotel
36. Hôpital Général de KinshasaHGKHospital
37. Institut de Jardin Zoologique et Botanique CongolaisIJZBCZoo and botanical institute
38. Institut des Musées Nationaux du CongoIMNCMuseum institute
39. Institut National de StatistiquesINSStatistics institute
40. Institut National d’Etudes et de Recherche AgronomeINERAResearch institute
41. Institut National de Préparation ProfessionnelleINPPTraining institute
42. Institut Congolais pour la Conservation de la NatureICCNConservation of environment
43. Office de Gestion de la Dette PubliqueOGEDEPDebt management agency
44. Office de Voiries et DrainageOVDSewage
45. Office des Douanes et AccisesOFIDACustoms administration
46. Office des Petites et Moyennes EntreprisesOPEZSmall enterprises agency
47. Office des RoutesORRoad maintenance
48. Office National du TourismeONTTourism agency
49. Office Congolais de ConträleOCCStandard control agency
50. Régie Nationale des Approvisionnements et de l’ImprimerieRENAPIOffice supply
Source: Congolese authorities.
Source: Congolese authorities.
Table 16.Democratic Republic of the Congo: Monetary Survey, 1997–2001
19971998199920002001
(In millions of Congo francs)
Net foreign assets−580−1,417−2,176−28,522−181,368
Net domestic credit3527123,96416,67823,426
Net credit to government3056143,63113,73012,242
Credit to the private sector40802842,53910,789
Credit to parastatals71850409395
Broad money (M2)2967703,71022,00469,686
Narrow money (Ml)2236383,46218,55742,627
Currency in circulation1525152,94415,96331,873
Demand deposits711245182,59410,754
Quasi-money731322483,44727,059
Time deposits in domestic currency152025
Foreign currency deposits721272463,44627,034
Import deposits32752051,5546,347
Other items, net−555−1,550−2,127−35,402−233,974
Of which: valuation change−768−1,691−2,823−27,9280
(Annual change in percent of beginning-of-period

broad money, unless otherwise indicated)
Net foreign assets60−283−99−710−695
Net domestic credit15712142334331
Net credit to government154104392272−7
Credit to the private sector313266137
Credit to parastatals044100
Broad money (M2)71160382493217
Narrow money (M1)66140367407109
Currency in circulation4012231635172
Demand deposits2518515637
Quasi-money5201586107
Time deposits in domestic currency01000
Foreign currency deposits6191586107
Import deposits−615173622
Other items, net152−336−75−897−902
Memorandum items:
Velocity (GDP/ broad money)1513141421
Net foreign assets (in millions of U.S. dollars)−442−590−484−570−582
Of which: central bank−451−580−518−606−623
Source: Congolese authorities.
Source: Congolese authorities.
Table 17.Democratic Republic of the Congo: Central Bank Accounts, 1997–2001(In millions of Congo francs)
19971998199920002001
Net foreign assets−586−1,392−2,331−30,325−195,368
Foreign assets621432952,5716,819
Foreign liabilities6481,5352,62632,896202,187
Net domestic credit3026343,71015,03514,640
Net credit to government2735873,58514,02013,080
Gross credit to government3326373,69516,41519,839
Government deposits59501102,3956,759
Credit to commercial banks41048128414
Credit to parastatals615273010
Credit to the private sector1922515871,146
Assets = Liabilities−284−7581,379−15,290−180,728
Monetary base2286353,30618,09238,348
Currency in circulation1685442,99316,51132,678
In bank vaults153049548805
Outside banks1525152,94415,96331,873
Banks’ deposits37301991,1472,896
Parastatals’ deposits1142091
Private sector deposits22601094132,683
Foreign currency deposits920441,2877,637
Import deposits29701531,2245,369
Other items, net−550−1,483−2,123−35,892−232,081
Other liabilities, net−230−26890−12,110−1,777
Capital accounts4494766104,146−230,304
Valuation change−768−1,691−2,823−27,9280
Source: Congolese authorities.
Source: Congolese authorities.
Table 18.Democratic Republic of the Congo: Balance Sheet of the Deposit Money Banks, 1997–2001(In millions of Congo francs)
19971998199920002001
Net foreign assets6−251551,80314,001
Foreign assets75943403,77229,295
Foreign liabilities691191851,96915,295
Reserves49532561,7024,359
Cash in vault153049548805
Deposits with central bank34232071,1533,554
Net domestic credit54883021,7709,201
Net credit to government322646−290−838
Gross credit to government434594731,253
Government deposits1219483632,092
Credit to parastatals1323108395
Credit to the private sector22582331,9529,644
Assets = Liabilities1091167135,27527,560
Deposits1121756094,32127,402
Demand deposits48634052,1617,980
Time deposits152025
Foreign currency deposits631072022,15919,397
Credit from central bank81240167622
Import deposits2553330978
Other items, net−13−7611457−1,442
Capital accounts1321633191,5789,860
Other liabilities, net−145−239−308−1,120−11,303
Source: Congolese authorities.
Source: Congolese authorities.
Table 19.Democratic Republic of the Congo: List of Commercial Banks
1African Trade Bank (ATB) *
2Banque Commerciale du Congo (BCDC)
3Banque Congolaise du Commerce Extérieur (BCCE)
4Banque Congolaise
5Banque de Crédit Agricole (BCA) *
6Banque Internationale pour l’Afrique au Congo (BIAC)
7Banque du Commerce et de Développement (BCD)
8Banque Internationale de Crédit (BIC)
9Citibank
10First Banking Corporation (FBC)
11Nouvelle Banque de Kinshasa (NBK) *
12Rawbank
13Stanbic Bank
14Union des Banques Congolaises (UBC)
Source: Congolese authorities.

Not in operation.

Source: Congolese authorities.

Not in operation.

Table 20.Democratic Republic of the Congo: Distribution of Commercial Banks’ Credits by Sector, 1997–2001(In millions of Congo francs)
19971998199920002001

Est.
Agriculture1321615363,126
Mining03101557
Manufacturing14334001,657
Construction111144138
Energy1243542
Transportation0316143437
Distribution110604322,326
Trade1711233
Imports161100
Exports011233
Other411494532,223
Total23622562,06010,039
Sources: Congolese authorities; and staff estimates.
Sources: Congolese authorities; and staff estimates.
Table 21.Democratic Republic of the Congo: Structure of Interest Rates, 1997–2001(In percent per annum)
19971998199920002001
Lending rate
Central Bank of the Congo
Money market1827125125145
Rediscount1322120120140
Advances2837145145165
Commercial banks
Short-term credit
Agriculture4445165165170
Industry4445165165170
Medium-term credit
Agriculture4445165165170
Industry4445165165170
Deposit rates 1/
Sight deposits0
Time deposits
1–3 months60
3–6 months62
9–12 months70
24 months70
Source: Congolese authorities.

Starting in 1998, deposit it rates are no longer published.

Source: Congolese authorities.

Starting in 1998, deposit it rates are no longer published.

Table 22.Democratic Republic of the Congo: Balance of Payments Summary, 1997–2001
19971998199920002001

Est.
(In millions of U.S. dollars)
Current account−200−426−113−198−250
Excluding official grants−269−608−244−409−545
Balance on goods and services220−5526343−105
Exports of goods and services1,2451,2851,021963961
Imports of goods and services−1,025−1,340−758−920−1,067
Of which: aid-related imports 1/−69−182−128−208−282
Merchandise trade50240551621274
Exports, f.o.b.1,1961,181974892880
Imports, f.o.b.−694−775−458−680−807
Of which: aid-related imports 1/−48−124−85−140−194
Services−283−460−253−169−179
Receipts4810446.77181
Of which: MONUC 2/0.228.1
Expenditure−331−565−300−240−260
Of which: aid-related imports 1/−21−58−43−69−88
Income−419−403−394−388−412
Receipts3311720
Of which: MONUC 2/0.113
Expenditure−422−406−395−405−432
Of which: interest payments 3/−394−383−375−385−410
Of which: IMF charges−16−15−16−17−16
interest on arrears−193−223−253−283−319
Current unrequited transfers−13218146268
Public105186138210295
Private−106−154−120−64−28
Capital account−605−681−611−388−315
Official capital−373−450−403−339−308
Gross disbursements000010
Of which: net new financing000010
Amortization 4/−373−450−403−339−318
Private capital (net)−232−231−208−50−7
Of which: foreign direct investment022237482
Balance before errors and omissions−805−1,107−724−587−565
Errors and omissions19510030−242−144
Overall balance−610−1,007−694−829−709
(In millions of U.S. dollars)
Financing6101,007694829709
Net change in non-Fund arrears789859800742698
Net banking sector reserves (increase, −)−180149−1078711
Of which: net Fund credit 5/1614131716
Memorandum items:(In percent of GDP, unless otherwise indicated)
Debt service due (percentage of goods and nonfactor services exports)64.266.777.575.275.7
Current account balance, including grants−3.1−9.0−2.6−4.6−4.7
Current account balance, excluding grants−4.1−12.8−5.7−9.5−10.2
Gross official reserves (in millions of U.S. dollars)4760665122
In weeks of nonaid-related imports2.62.75.43.81.4
Sources: Congolese authorities; and staff estimates.

An average of about 80 percent of official grant and loan assistance is assumed to be spent on imports of goods and services, including freight and insurance. Direct imports by the UN peacekeeping forces, MONUC, are not included because they do not pass through normal customs channels.

Expenditures of MONUC are included on a net basis and include estimates for local purchases of goods and services, salaries of local employees, and expenditures by expatriate MONUC staff in the Democratic Republic of the Congo.

Includes interest on current maturities plus interest on arrears.

Includes amortization on current maturities.

Includes the accumulation of arrears to the IMF.

Sources: Congolese authorities; and staff estimates.

An average of about 80 percent of official grant and loan assistance is assumed to be spent on imports of goods and services, including freight and insurance. Direct imports by the UN peacekeeping forces, MONUC, are not included because they do not pass through normal customs channels.

Expenditures of MONUC are included on a net basis and include estimates for local purchases of goods and services, salaries of local employees, and expenditures by expatriate MONUC staff in the Democratic Republic of the Congo.

Includes interest on current maturities plus interest on arrears.

Includes amortization on current maturities.

Includes the accumulation of arrears to the IMF.

Table 23.Democratic Republic of the Congo: Composition of Commodity Exports, 1997–2001(Values in millions of U.S. dollars; volumes and unit values as indicated)
19971998199920002001

Est.
Total exports, f.o.b.1,1961,181974892880
GECAMINES20219912514084
Other 1/994982849752797
Of which; parallel exports284303258264262
Non-oil exports1,0201,069858685679
Volume (1989 = 100)3941343231
Unit value (1989 = 100)128118120114119
Copper8353484742
GECAMINES8052464332
SODIMICO31252
Volume (thousands of tons)3838313126
GECAMINES3637302820
SODIMICO11231
Unit value (U.S. dollars per ton)2,2051,3981,5411,4551,578
Cobalt119145809770
Volume (thousands of tons)34243
Unit value (U.S. dollars per ton)39,68337,47934,61327,24920,437
Zinc21001
Volume (thousands of tons)21001
Unit value (U.S. dollars per ton)1,3151,0241,0761,235886
Silver11000
Volume (tons)44000
Unit value (U.S. dollars per ton)00000
Gold 1/823121
Volume (tons)10002
Unit value (millions of U.S. dollars per ton)109998
Diamonds 1/618716579444462
Volume (millions of carats)3541312929
Unit value (U.S. dollars per carat)1817191516
Crude oil177111116207201
Volume (millions of barrels)109989
Unit value (U.S. dollars per barrel)1712132523
Coffee 1/95678672
Volume (thousands of tons)433460284
Unit value (U.S. dollars per ton)2,2081,9391,444265447
Rubber42211
Volume (thousands of tons)43322
Unit value (U.S. dollars per ton)1,018722636691601
Other exports 1/9082608682
Sources: Congolese authorities; and staff estimates.

Includes parallel-market exports.

Sources: Congolese authorities; and staff estimates.

Includes parallel-market exports.

Table 24.Democratic Republic of the Congo: Composition of Imports, 1997–2001
19971998199920002001

Est.
(Values in millions of U.S. dollars; unit values in U.S. dollar terms)
Imports, total
Value, f.o.b.694775458680807
Volume index (1989 = 100)3543253746
Unit value index (1989 = 100)10494979591
Oil
Value, f.o.b.106126574942
Volume index (1989 = 100)59104341818
Unit value index (1989 = 100)10873101158136
Non-oil
Value, f.o.b.588649401632765
GECAMINES83117322925
Non-GECAMINES505533369603740
Volume index (1989 = 100)3237243949
GECAMINES1928887
Non-GECAMINES3640284961
Unit value index (1989 = 100)104100969290
Aid-related imports 1/4812485140194
Nonaid-related imports646651372541613
Import tax base472489221350391
(In percent of total)
Imports
Oil15161275
Non-oil8584889395
GECAMINES1215743
Non-GECAMINES7369818992
Aid-related imports716192124
Nonaid-related imports9384817976
(Percentage change)
Imports (value)−3112−414919
Oil3419−55−14−14
Non-oil−31−3−405616
GECAMINES−941−73−10−12
Non-GECAMINES−33−10−316318
Aid-related imports−69157−316339
Nonaid-related imports−25−434513
Total import (volume)−2624−435124
Oil4275−67−460
Non-oil−3215−366425
GECAMINES−247−72−6−9
Non-GECAMINES−3510−287026
Aid-related imports−66168−297143
Nonaid-related imports−195−415217
Sources: Congolese authorities; and staff estimates.

An average of about 80 percent of official grant and loan assistance is assumed to be spent on imports of goods and services, including freight and insurance. Direct imports by the UN peacekeeping forces, MONUC, are not included because they do not pass through normal customs channels.

Sources: Congolese authorities; and staff estimates.

An average of about 80 percent of official grant and loan assistance is assumed to be spent on imports of goods and services, including freight and insurance. Direct imports by the UN peacekeeping forces, MONUC, are not included because they do not pass through normal customs channels.

Table 25.Democratic Republic of the Congo: Foreign Trade Indicators, 1997–2001(Index, 1989 = 100, unless otherwise indicated)
19971998199920002001

Est.
Merchandise exports
Value, U.S. dollars5049403736
(in percent change)−27−1−18−8−1
Volume index3941343231
(in percent change)−167−19−4−5
Unit values, U.S. dollars128118120114119
(in percent change)−14−82−54
Merchandise imports
Value, U.S. dollars3640243542
(in percent change)−3112−414919
Volume3543253746
(in percent change)−2624−435124
Unit values, U.S. dollars10494979591
(in percent change)−7−103−2−4
Terms of trade123125124120131
(in percent change)−82−1−39
Sources: Congolese authorities; and staff estimates.
Sources: Congolese authorities; and staff estimates.
Table 26.Democratic Republic of the Congo: External Public and Publicly Guaranteed Debt Outstanding, 1997–2001 1/
19971998199920002001
Est. 2/Prel. 3/
(In millions of U.S. dollars)
External public debt12,63413,50613,23812,60913,880
Multilateral institutions2,4962,6192,5693,2383,363
IMF 4/506541544506503
Other 5/1,9902,0772,0252,7322,860
Official bilateral creditors9,71110,44910,2398,94210,215
Paris Club9,0439,7029,3858,5619,780
Other668748854381435
Commercial creditors (Kinshasa Club)390400393391265
Commercial creditors (London Club)3737373737
(In percent of total)
External public debt100.0100.0100.0100.0100.0
Multilateral institutions19.819.419.425.724.2
IMF 4/4.04.04.14.03.6
Other 5/15.815.415.321.720.6
Official bilateral creditors76.977.477.370.973.6
Paris Club71.671.870.967.970.5
Other5.35.56.43.03.1
Commercial creditors (Kinshasa Club)3.13.03.03.11.9
Commercial creditors (London Club)0.30.30.30.30.3
Sources: Congolese authorities; and staff estimates.

Including arrears on principal and interest, as well as staff estimates of accumulated unpaid late interest where data are available.

Data for 2000 were reviewed and revised by the authorities and the staff; hence, they represent a break from earlier data.

Reflects the results of the preliminary debt sustainability analysis (DSA) completed for the preliminary HIPC document and estimated revisions stemming from the September 2002 Paris Club agreement. These data will be further revised upon completion of the DSA for the enhanced HIPC Initiative decision point.

Includes Trust Fund.

Includes debt of the GECAMINES Trust, which is predominately multilateral debt.

Sources: Congolese authorities; and staff estimates.

Including arrears on principal and interest, as well as staff estimates of accumulated unpaid late interest where data are available.

Data for 2000 were reviewed and revised by the authorities and the staff; hence, they represent a break from earlier data.

Reflects the results of the preliminary debt sustainability analysis (DSA) completed for the preliminary HIPC document and estimated revisions stemming from the September 2002 Paris Club agreement. These data will be further revised upon completion of the DSA for the enhanced HIPC Initiative decision point.

Includes Trust Fund.

Includes debt of the GECAMINES Trust, which is predominately multilateral debt.

Table 27.Democratic Republic of the Congo: Debt Service Due and Paid, 1997–2001 1/(In millions of U.S. dollars)
19971998199920002001
Est. 2/Prel. 3/
Total debt service due800857791724728
Principal405474416339318
Multilateral institutions15615414210961
IMF 3/32241300
Other 4/12413012910961
Official bilateral creditors (Paris Club)232305264223251
Paris Club232305264223236
Other000015
Commercial creditors (Kinshasa Club)17151176
Commercial creditors (London Club)00000
Interest394383375385410
Multilateral institutions6865575174
IMF 3/1615161716
Other 4/5350413458
Official bilateral creditors (Paris Club)322316317334336
Paris Club322316317334333
Other00002
Commercial creditors (Kinshasa Club)42211
Commercial creditors (London Club)00000
Total debt service paid01300
Principal01100
Multilateral institutions01100
IMF 3/01100
Other 4/00000
Official bilateral creditors (Paris Club)00000
Paris Club00000
Other00000
Commercial creditors (Kinshasa Club)00000
Commercial creditors (London Club)00000
Interest00200
Multilateral institutions00200
IMF 3/00200
Other 4/00000
Official bilateral creditors (Paris Club)00000
Paris Club00000
Other00000
Commercial creditors (Kinshasa Club)00000
Commercial creditors (London Club)00000
Sources: Congolese authorities; and staff estimates.

Includes interest on arrears.

Data for 2000 were reviewed and revised by the authorities and the staff; hence, they represent a break from earlier data.

Including Trust Fund.

Incudes the GECAMINES Trust, which is predominately multilateral debt.

Sources: Congolese authorities; and staff estimates.

Includes interest on arrears.

Data for 2000 were reviewed and revised by the authorities and the staff; hence, they represent a break from earlier data.

Including Trust Fund.

Incudes the GECAMINES Trust, which is predominately multilateral debt.

Table 28.Democratic Republic of the Congo: Arrears on Public and Publicly Guaranteed Debt, 1997–2001 1/
19971998199920002001
Est. 2/Prel. 3/
(In millions of U.S. dollars)
External public debt6,8789,09211,38810,60410,925
Multilateral institutions1,1071,5291,9991,7081,806
IMF 4/447505520506503
Other 5/6601,0241,4781,2021,303
Official bilateral creditors5,4427,2129,0368,5748,833
Paris Club5,2086,8398,4818,2778,486
Other234374555297347
Commercial creditors (Kinshasa Club)292314316286249
Commercial creditors (London Club)3737373737
(In percent of total)
External public debt100.0100.0100.0100.0100.0
Multilateral institutions16.116.817.616.116.5
IMF 4/6.55.54.64.84.6
Other 5/9.611.313.011.311.9
Official bilateral creditors79.179.379.380.980.9
Paris Club75.775.274.578.177.7
Other3.44.14.92.83.2
Commercial creditors (Kinshasa Club)4.23.52.82.72.3
Commercial creditors (London Club)0.50.40.30.40.3
Sources: Congolese authorities; and staff estimates.

Including arrears on principal and interest, as well as staff estimates of accumulated unpaid late interest where data are available.

Data for 2000 were reviewed and revised by the authorities and the staff; hence, they represent a break from earlier data.

Reflects the results of the preliminary debt sustainability analysis (DSA) completed for the preliminary HIPC document and estimated revisions stemming from the September 2002 Paris Club agreement. These data will be further revised upon completion of the DSA for the enhanced HIPC Initiative decision point.

Includes Trust Fund.

Includes debt of the GECAMINES Trust, which is predominately multilateral debt.

Sources: Congolese authorities; and staff estimates.

Including arrears on principal and interest, as well as staff estimates of accumulated unpaid late interest where data are available.

Data for 2000 were reviewed and revised by the authorities and the staff; hence, they represent a break from earlier data.

Reflects the results of the preliminary debt sustainability analysis (DSA) completed for the preliminary HIPC document and estimated revisions stemming from the September 2002 Paris Club agreement. These data will be further revised upon completion of the DSA for the enhanced HIPC Initiative decision point.

Includes Trust Fund.

Includes debt of the GECAMINES Trust, which is predominately multilateral debt.

Democratic Republic of the Congo: Summary of the Tax System, 2002

(Amounts are expressed in Congo francs, unless otherwise indicated)

TaxNature and Scope of TaxExemptions and DeductionsRates
I.Income Taxes
1.Professional income tax (contribution sur les revenus professionels (CRP))
a.Profit taxLevied on profits of industrial, commercial, artisanal, farming, or real estate enterprises and associations. Also levied on profits from the sale, transfer, or assignment of patents, trademarks, manufacturing processes or methods; on profits from the realization of assets and on the transfer of firms, practices, or offices.



Enterprises having less than 200 employees and assets of less than CGF 11,200,000 are considered small enterprises (SMEs).



A withholding tax applies to imports (1 percent for registered enterprises and 5 percent for others) and wholesale purchases (at a rate of 2 percent). The withholding tax is deductible from the CRP upon payment of the tax installments and balance.
The following entities are exempt from the profit tax: the central government, provinces, towns, and religious, scientific, or philanthropic institutions.- 40 percent of net profits for taxpayers under ordinary law and category 1 SMEs (annual turnover in excess of CGF 300,000);



- progressive schedule for category 2 SMEs (turnover of CGF 150,000–300,000);



- flat rate for category 3 SMEs (turnover of CGF 75,000–150,000); and



- quarterly quotas for category 4 SMEs (turnover below CGF 75,000).



- minimum contribution 1/1000 of turnover.
b.Individual income tax (contribution professionelle sur les remunérations (CPR))Levied on the remuneration of individuals paid by third parties (wages, various remunerations, pensions, etc.).



The tax is withheld at the source by the employer and paid to the tax collecting agency before the tenth day of the month following payment of remunerations.
Family allowances, social security, retirement pension, and unemployment insurance contributions are deducted from the tax base.



Retirement, disability, and military pensions are CPR-exempt, as is the remuneration of employees of international organizations and diplomatic missions.



20 percent reduction for each dependent for incomes below the 8th bracket.
percent
0–72,0003
72,001–126,0005
126,001–208,80010
208,801–330,00015
330,001–498,00020
498,001–788,40025
798,701–1,200,00030
1,200,001–1,686,00035
1686,001–2,091,60040
2,091,601–2,331,60045
>2,331,60050
without exceeding 35 percent of taxable income.
2.Extraordinary tax on remuneration of expatriatesLevied on the gross amount of remuneration paid by employers to their expatriate staff.The State, nonprofit organizations, international organizations, and embassies are exempted.25 percent.
3.Rental income tax (contribution sur les revenues locatifs (CRL))Levied on gross annual income from the leasing and subleasing of buildings and land.



The owner shall submit an annual return before March 31 of the year following that in which the income was realized.



Those who rent a house are required to withhold 20 percent of the rental amount by way of installment on the CRL. The withholding shall be paid to the tax-collecting agency before the tenth day of the month following payment of the rent.
Income from investment property abroad.20 percent, withheld at source by the company disbursing the investment income.
4.Investment income taxLevied on dividends, interest, income from shares, etc., paid by companies to their partners and board directors, for companies governed by domestic law. For foreign companies, levied on the basis of 50 percent of income liable for the CRP and the CRL.Income from investment property abroad.20 percent, withheld at source by the company disbursing the investment income.
II.Turnover Tax (contribution sur le chiffre d’affaires (CCA))
1.Domestic CCAGeneral tax on sales by producers on local markets, services provided or used in the DRC, and construction work.



Levied on gross invoice amounts, except for construction work (base set at¾ of the value of the work).



Payment is made in two stages:



- payment of an installment before the 20th of the month in which the transactions were effected, and



- payment of the balance, before the 15th of the following month.
CCA-exempt:



- retail sales;



- sales subject to excise taxes;



- sales of handcrafted artwork;



- works of national interest;



- medical and paramedical activities;



- goods transport;



-funeral services;



-hotel charges for national and international civil servants.
3 percent: local products similar to those imported with a 5–15 percent customs duty;



13 percent: other products



18 percent: provision of services and construction work;



6 percent domestic: flights;



15 percent: international flights; and



30 percent: provision of assistance when the provider is not established in the DRC.
2.CCA on importsLevied on the c.i.f. value of imports plus import duties. Tax levied by the customs and excise office (OFIDA).Imports expressly exempted.3 percent for goods liable to customs duty of 5 percent or 15 percent; and



13 percent for other imports.
3.CCA on exportsLevied on the net value of sales abroad of logs, coffee crude oil, and mining products.



The CCA is withheld at the source by the banks handling payments.
3 percent except for gold and artisanal diamonds (0.25 percent).
III.Nonpersonal Property TaxesTax on property ownership.
1.Land taxLump-sum tax calculated on the type of real estate, its location, and the standing of the owner.The central government, towns, provinces, public utility companies, religious, philanthropic and scientific institutions, and diplomatic missions; permanent exemption for small farms.



Exemption of owners whose income is below the 8th bracket of the CPR.
Built properties: from US$1.5–75/floor according to location; Nonbuilt properties: from US$1.5–30, according to location.



Residential: from US$0.3–1.5/m2 according to a classification of four ranks.
2.Tax on mining and petroleum concessionsTax owed by holders of concessions granted by the government for mining and petroleum research and/or exploration.US$0.02/ha for research concessions (increase of 50 percent in the 2nd year, 75 percent in the 3rd year and 100 percent in the 4th year); US$0.04/ha for exploitation concessions.
3.Vehicle tax and special tax on highway use (toll fee—TSCR)The vehicle tax is based on the weight and horsepower of motor vehicles. The TSCR is a tax on road use.Exempt are vehicles owned by the central government, international organizations, the diplomatic corps, utility companies, mopeds, and ambulances.Vehicle tax: tax sticker price ranges between US$5-44 according to horsepower; TSCR: annual sticker price between US$6–45 per vehicle.
IV.Excise Duties
1.Selected productsExcise duties are levied on a large number of locally manufactured or imported consumer goods. Base: for imports: c.i.f. value + import duty. For locally manufactured products: ex-factory price. Examples: 3 percent on flavored beverages and other nonalcoholic drinks; 5 percent on sugar, cement, and matches; 10 percent on mineral and sparkling waters, ethyl alcohol, and eau de vie; perfumes and eaux de toilette; 15 percent on beer under 6° proof and sparkling wines; and wines under 15° proof; 20 percent on vermouths; 25 percent on wines more than 15° proof; 30 percent on other alcoholic drinks (whiskies, rum, gin, vodka, etc.); and 40 percent on cigars, cigarettes, and cigarillos.CCA not applicable.Eight rates: 3 percent,

5 percent, 10 percent,

15 percent, 20 percent,

25 percent, 30 percent, and

40 percent.
2.Petroleum productsPetroleum products (including gasoline, kerosene, diesel oil and fuel oil, and liquefied petroleum gas) are taxed on the basis of the average frontier price (prix moyen frontière (PMF) fiscal) plus customs duties. The (PMF fiscal) expressed in U.S. dollars has not been modified since 1990.



Various other parafiscal duties are levied on petroleum products:

- retrocession hydrocarbure;

- Cohydro fournisseur levy;

- transportation surtax;

- stock de stabilisation levy.
CCA not applicable.Rate: 15 percent.



Specific amounts integrated in the official price structure.
V.Customs Duties
1.Import dutiesLevied on the c.i.f. value of imports, except for petroleum products, for which customs duties are applied to the “PMF fiscal” (see excise duties, section IV)Various exemptions or reduced rates (e.g., 5 percent instead of 10 percent or 20 percent for inputs designated as “indisputably” not available in the DRC) under the customs code, the investment and mining codes, and international agreements. Uniform 5 percent rate for goods to be assembled under the complete knock-down (CKD) scheme. Uniform 15 percent rate for goods to be assembled under the medium knock-down (MKD) scheme.5 rates (0 percent, 5 percent, 15 percent, 20 percent, and 30 percent).



Examples: 0 percent on farm inputs, banknotes, and stamps; 5 percent on “heavy” equipment and industrial flours; 15 percent on widely consumed food products, pharmaceutical products, flours for direct consumption, spare parts and petroleum products (except fuel oil, 5 percent); 20 percent on finished products or inputs where local production exists; and 30 percent on luxury goods and products for which there is adequate local production.
2.Import surtaxLevied on the c.i.f. value of certain products (in addition to excise duty, see Section IV above).Three rates: 15 percent on tires and flours; 20 percent on sugar; and 30 percent on textiles, biscuits, and batteries.
3.Customs fee on importsLevied on goods exempted from other duties and taxes.Not applied to all exempted goods (e.g., imports by diplomatic missions).Rate: 5 percent.
4.Other levies on importsDirection Générale des Recettes Administratives, Judiciaires, Domaniales et de participations (DGRAD) various, at fixed rates or ad valorem; Office congolais de contrôle (OCC) 3 percent on the f.o.b./c.i.f. value of which 0.7 percent for Société Générale de Surveillance (SGS) on the f.o.b. value at the market rate and 2.3 percent for OCC on the c.i.f. value at the official rate; Fonds pour la Promotion de l’Industrie (FPI) 2 percent value c.i.f. + customs duties, and Office de Gestion du Frêt Maritime (OGEFREM) 0.5 percent of the c.i.f. value.Various ad valorem rates: (DGC, OCC, OGEFREM) and fixed (DGRAD).
5.Export dutiesLevied on certain basic exports (see opposite).None.0.75 percent on external gold and diamonds; 1 percent on coffee; 6 percent on logs; 5–10 percent on mining products; (7 percent for GECAMINES); 3 percent on industrial gold and diamonds; 10 percent on crude oils.
VI.Administrative Charges and Licenses
1.EnvironmentLicenses (fishing, hunting, and logging).None.Specific rates.
2.Real estateRecording fees, transaction fees, stamp duties.None.Specific rates.
3.MinesProspecting fees; mining operations permit (individuals and companies); purchasing office licenses (gold, diamonds, etc.).None.Specific rates.
Source: Congolese authorities.
Source: Congolese authorities.

This section has been prepared by Xavier Devictor, with Box III.1 prepared by Nicolas Calcoen.

Demographic estimates are based on prewar figures, as reported in European Union, “Rapport des Conseillers Economiques de I’Union Européenne en République Démocratique du Congo,” 1999.

UN “Final Report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of DR Congo,” October 16, 2002 (henceforth referred to as “Final Report”), para. 96.

See “Final Report.”

Ibid.

There is no consensus on demographic estimates for rebel-held areas—this reflects both the absence of reliable statistics and the fact that the size of each group’s territory has fluctuated significantly over the last years.

See International Crisis Group, “Scramble for the Congo: Anatomy of an Ugly War,” December 20, 2000.

Ibid.

UN, “Eleventh Report of the Secretary-General on the United Nations Organization Mission in the Democratic Republic of Congo,” June 5, 2002 (henceforth referred to as “Eleventh Report”).

See “Final Report.”

See “Scramble for the Congo: Anatomy of an Ugly War.”

Ibid.

Ibid.

See Ninth, Tenth, and “Eleventh Report.”

Ibid.

See “Final Report,” paras. 86 to 89.

Ibid.

Ibid.

See “Final Report,” paras. 94 to 96.

See “Final Report,” para. 94.

The RCD-Congo is a breakaway faction of the MLC.

See “Eleventh Report,” paras. 57 to 63, and “Twelfth Report,” paras. 15 to 17.

See “Final Report.”

Ibid.

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