Republic of the Congo

• Due to low commodity prices and a diversification of the limited economy, growth
contracted further in 2017 to -3.4% against -2.8% in 2016 but should rebound to
2.2% in 2018 and 2.4% in 2019.
• Despite significant progress in reducing the poverty and the significant
improvement of population, most indicators of development the human
development of Congo remain weak and necessary urgent public actions.
• The impact of infrastructure improvements on the development of Congo's
economic development has been limited by funding constraints and recurring
issues Management.
OVERVIEW
Congolese real output contracted again in 2017, from -2.8% in 2016 to -3.4% in 2017
strongly dependent on oil revenues, including export earnings account for nearly 75% of
GDP, the Congo suffered from whip the global oil shock. The decline in oil revenues has
plunged the country into a deep socio-economic crisis and resulted in a double deficit in
the tax balance (5.1% of GDP in 2017) and the current account (42.8% of GDP). The inflation
rate is estimated at -0.6% for 2017, compared to 3.6% in 2016. These results are well below
the Central African average estimated at 0.9% in 2017.
Economic growth should be positive in 2018 and 2019 and reach respectively 2.2% and
2.4%, thanks to the increase oil production, the expected recovery of the price global oil
sector and notable progress in sectors such as manufacturing, transportation and
communications. The launch of the Moho Nord oil field in 2017 should increase the national
oil production by 90 million barrels in 2017 to 117 million in 2018.
Congo occupies the 135th place worldwide with an average human development of 0.592
in 2016 against 0.591 in 2015. Despite a steady decline in the poverty rate since the years
2000 (50.2% in 2005 and 36% in 2015), the inequalities in Congo remain among the largest
on the continent, with a coefficient of GINI estimated at 48.9 in 2011. Unemployment is a
major challenge, especially among young people and women (around 30% among young
people aged 15-29 in 2016). Mortality rates infant (33 deaths per 1,000 live births) and
maternal (442 deaths per 100,000 births) remain high relative to countries with a
comparable level of income.
In recent years, the Government has undertaken important public infrastructure works in
areas of high added value. In 2017, he spent about 9% of his GDP (compared to 28.1% in
2016). This decline is due to the severe crisis of liquidity as a result of the decline in oil
revenues has seriously slowed down the pace of funding for infrastructure projects in 2017
and the execution of some projects initially approved. Finally, the use of the loan to finance

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certain infrastructure projects increased the level of over-indebtedness country and the risk
of default.

TABLE 1. Macroeconomic indicators

2016 2017 (e) 2018 (w) 2019 (p)

Real GDP growth rate -2.8 -3.4 2.2 2.4

Real GDP per capita growth rate -5.4 -6.0 -0.4 -0.3

Inflation 3.6 -0.6 -0.8 1.3

Budget balance (% of GDP) -12.9 -5.1 2.4 -7.7
Current account (% GDP) -70.1 -42.8 -27.2 4.6
Source: National government data; estimates (e) and forecasts (p) based on authors'
calculations.

RECENT DEVELOPMENTS AND OUTLOOK

The strong economic turbulence in 2017 has seriously started Congo's progress in
development. The recession of 2016 has intensified in 2017 with a growth of -3.4% mainly
due to the inadequacy of oil revenues and low economic diversification. The lower oil
revenues had a devastating effect in most sectors and disrupted the realization of many
development projects and investment programming, public payments.
Between 2011 and 2016, the structure of Congolese GDP has changed because of the
recurrent volatility of the extractive industry, the economic dynamism of the private sector
and the constant effort of the Congolese Government to diversify the economy. The share
of extractive activities in GDP is thus increased from 71.5% in 2011 to 44.7% in 2016 for the
benefit of agricultural sector and manufacturing, trading, and transport and
communication.
The launch of the Moho Nord oil field in 2017 and the dynamism expected from other
economic sectors such as construction, transport and communication, improve outlook for
2018 and 2019, with growth rates respective GDP of 2.2 and 2.4%.
Inflation should stabilize in 2018 and 2019 with respectively -0.6% and -0.8%, although
below the regional convergence criterion of 3%. The main the risk remains the volatility of
oil prices, the main voyeur of foreign currency, accentuated by the very low rate of
economic diversification, security uncertainty, especially in the Pool region, and the slow
implementation of structural and institutional reforms. The sharp decline in public revenue
has had an impact on national budget and the current account, resulting in a double deficit
2017. The deficit in the tax balance is estimated at 5.1% of the GDP in 2017, down from 2016
(12.9% of GDP) thanks to mainly to the contraction of public spending and the freezing

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certain investment projects. The deficit of the current balance continued in 2017 and
reached 42.8% of GDP due to the deterioration of the country's terms of trade. The balance
budget is expected to become a surplus in 2018 (2.4% of GDP) while the current account
deficit will continue in 2018 (27.2% of GDP) to become a surplus in 2019 (4.6% of GDP).
The Government has taken various measures to improve the stability the macroeconomic
framework, in particular by reducing the Government and other non-governmental priority.
After a reduction of the 2017 budget by 44%, the Draft Budget Law 2018 provides for a
decrease in expenditure 7.6%. The Government is committed to maintaining a level
reasonable amount of public investment and not to salaries and wages of civil servants.
However, he continues to support its reforms on the rebound of the oil sector then that it
should reduce its excessive dependence on the sector and put in place policies that
promote economic diversification and support for private entrepreneurial initiatives.
Congolese public debt has been one of the hot topics of 2017 because of the difficult
negotiations begun with its donors, mainly the International Monetary Fund. (IMF) for the
restructuring of the debt and the establishment of structural reforms. Public debt
contracted or guaranteed by the State amounted to 5,329 billion CFA francs (approximately
9.14 billion dollars) in 2017, or 110% of GDP. Imbalances macroeconomic conditions have
forced the Government to accumulate huge external and internal arrears and led to a
partial payment default in July 2017. This problematic has been accentuated by the
attempt to conceal of a part of the debt by the Government which tainted the credibility of
the Congo and resulted in as of July 2017 of the country's rating by the main agencies
international rating systems. Standard and and Moody's jus- this deterioration by
the high risk of default on its Eurobonds and the liquidity problems of more and more acute
of the country. This situation results from the fall in oil companies and reduced funding
opportunities Government, particularly within the Bank of Central African States (BEAC).
The Government has taken a series of measures to improve the business climate. In 2014, it
created an electronic counter single business registration grouping together information
and formalities relating to the creation of a business. Seminars and extension groups have
been organized in the country. However, the rank of Congo in the ranking of the Doing
Business index did not change between 2016 and 2017 and the Congo ranked 179th rank
remains one of the ten African countries most poorly rated for the business climate.
Additional efforts must be made to reduce: the number of procedures (ten), the time
required to start a business (49 days), and the cost of starting a business (77.7% of per capita
income). As in the case of economic indicators, development indicators the social
development of the Congo have made insufficient progress last years. The country's Human
Development Index slightly improved from 0.564 in 2013 to 0.592 in 2016. Although the
incidence of poverty has decreased by 50.2% in 2005 to 36% in 2015, it remains higher than
that of African countries comparable crops. Moreover, despite the enormous resources the
country's high levels of income inequality are maintained with a GINI index rising from 47.3

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in 2005 to 48.9 in 2011. Significant progress has been made in the health field. Life
expectancy at birth has
increased from 60.5 years in 2010 to 64.1 years in 2015 and is above the African average (60
in 2015). However, despite a firm commitment by the state to improve the health of
population, some indicators are at alarming levels because of structural and institutional
problems. It is infant and maternal mortality rates, prevalence HIV / AIDS, the level of
malnutrition and the problem of delay of growth of children under 5 years. Finally, progress
of Congo to improve the efficiency of its education system and develop its human capital
are encouraging. the access to education has improved at all levels of schooling offer
educational services has expanded in areas as well urban than rural. These efforts must be
continued for improve the learning rate, especially for mayor, the drop-out rate and the
gross enrolment rate in high school.
TABLE 2. GDP by sector (as a percentage of GDP)
2011 2016
Agriculture, forestry, fishing 3.6 9.3
and hunting
of which fishing - -
Extractive activities 71.5 44.7
of which crude oil - -
extraction
Manufacturing activities 3.5 6.1
Production and distribution 0.6 1.0
of electricity, gas and water
Construction 3.0 2.9
Wholesale and retail trade, 5.6 12.2
motor vehicle repair,
household goods,
and hotels and restaurants
of which hotels and - -
restaurants
Transportation, 4.1 8.9
Warehousing and
Communications
Financial intermediation, 4.6 8.9
real estate, rentals, and
business service activities
Public administration and 3.4 6.0
Défense, compulsory social
security

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 Other services - -
Gross domestic product at 100.0 100.0
basic prices / factor cost
Source: National government data.

TABLE 3. Public finance (percentage of GDP at current prices)

2009 2014 2015 2016 2017 2018 2019
(e) (w) (p)
Total receipts and donations 30.3 40.7 30.4 32.3 31.7 33.0 43.7
Tax revenues 8.1 12.2 17.7 17.3 16.8 18.6 24.1
Oil revenue 0.3 0.1 0.1 0.4 0.4 0.4 2.7
Total expenditures and net loans 25.3 52.0 72.1 45.2 36.8 30.6 51.4
(a) 14.2 15.9 21.7 25.5 23.4 20.8 14.0
Current expenditure 12.6 15.7 20.9 22.4 20.3 20.3 13.7
Without interest 4.0 4.6 7.0 8.2 7.2 7.4 10.7
Salaries and wages 1.7 0.2 0.8 3.1 3.0 0.5 1.0
Interest 11.1 36.1 50.5 19.7 13.5 9.8 14.6
Investment expenditure
Primary balance 6.6 -11.1 -40.9 -9.8 -2.1 2.8 -8.7
Overall balance 4.9 -11.3 -41.7 -12.9 -5.1 2.4 -7.7
(a) Only the main items of revenue and expenditure are detailed.
Source: National government data; estimates (e) and forecasts (p) based on authors'
calculations.

MACROECONOMIC POLICY
Political budget
Contrary to forecasts, the public revenues of the three first quarters of 2017 were 52% lower.
Forecasts indicate a fiscal deficit of 5.1% of GDP in 2017 vs. 12.9% in 2016. The Amending
Finance Law 2017, adopted in December 2017, reduced the budget by 44% 2017 due to
significant gap between the predictions of the law of initial finances and its execution. Cash
flow difficulties forced the Government to take measures to its expenditure to ensure a
budgetary rebalancing from 45% of GDP in 2016 to 36.8% in 2017. This decrease mainly
concerned investment expenditure the public sector, which fell by more than 45% between
2017. The Government has also financed its budget deficit through the use of BEAC filings
and drawings on foreign state deposits, mainly in China.
The year 2018 should see a return to the budget surplus (2.4% GDP) due to an anticipated
rise in oil production an additional 50,000 barrels a day through the implementation of
Moho Nord oilfield service and the expected stability of oil prices. However, the 2018
Finance Act, anti-

5|Page
filled on the one hand by domestic financing or a contribution to the budget surplus, and
on the other hand by external financing or a contribution of international donors. The year
2018 is a year of contra- to clean up the public sector and provide consistent income and
public expenditure. This is to tackle corruption, strengthen the mechanisms control
structures of public structures, particularly public oil companies and major investment
projects and the responsibility of public fund managers. The Government has initiated
discussions with the IMF on this topic.
Monetary Policy
Congo's monetary policy is formulated and implemented by the BEAC to guarantee
monetary stability in the CFA Franc zone and ensure parity between the CFA franc and the
euro. In recent years the evolution of the monetary aggregates Congo has been influenced
by the economic recession that has resulted in a worsening of public cash
a deterioration of the external accounts following the fall commodity prices. The monetary
situation of Congo was characterized by a decline in the money supply 15.4% between 2015
and 2016. In addition, the situation of the State vis-à-vis the monetary system has
deteriorated from a net credit position to a debit position between 2015 and 2016. However,
outstanding domestic credit has increased by 74.8% between 2015 and 2016, reaching CHF
1,744 billion CFA and bank loans to the economy increased by 98 billion CFA francs between
2015 and 2016 to reach 1 238 billion. In 2016, most of the credits granted to the economy
Congolese in the short and medium term, respectively represented 44.8 and 53.5% of the
credit.
TABLE 4. Current account (percentage of GDP)
2009 2014 2015 2016 2017 2018 2019 (p)
(e) (w)
Trade balance 26.9 23.9 -5.1 -18.2 -17.8 -8.4 24.2
Exports of goods (fob) 65.8 62.3 55.2 48.7 48.3 47.1 106.5
Imports of goods (fob) 39.0 38.4 60.4 66.9 66.0 55.4 82.2
Services -28.3 -21.9 -28.1 -39.7 -15.7 -10.6 -11.5
Factor income -9.6 -14.1 -10.7 -13.3 -10.5 -9.4 -11.0
Current transfers -3.1 0.5 1.0 1.0 1.2 1.2 2.9
Balance of current -14.2 -11.6 -42.9 -70.1 -42.8 -27.2 4.6
accounts
Source: National government data; estimates (e) and forecasts (p) based on authors'
calculations.

2016 inflationary pressures have faded in 2017 and Congolese annual inflation rose by 3.6%
in 2016 to -0.6% in 2017 against 10.1% at the subregional level. To stabilize prices and boost
production in the area CEMAC, the BEAC has decided to revalue its key interest rate
2.45 to 2.95% in 2017. The Community Bank seeks thus to curb the exit of the capital of the
CEMAC zone which makes faced with huge cash flow difficulties as a result of the decline

6|Page
world crude oil prices. The drop in the level of inflation observed in 2017 should continue in
2018 to -0.8%, a level well above the convergence criterion. 3% of the CEMAC zone set in
2017-2018. Economic cooperation, regional integration and trade The Congolese economy
is essentially outward-looking laughing. As the manufacturing industry is not very
developed, the Congo imports almost all the goods he needs. The exports Congolese relies
heavily on oil production (59% of GDP and 90% of export earnings in 2017) because of very
low economic diversification. Exchanges commercial goods and services accounted for
more than 135% of GDP in 2017 while exports and imports of goods would have reached
48.3% and 66% of GDP, respectively. Although structurally surplus thanks to strong exports
raw materials, the Congolese trade balance has been in a deficit since 2015 due to the
continuing decline in the value of oil exports. Indeed, with a deficit estimated at 42.8% of
GDP in 2017, despite the economic recovery expected, Congo's current account is expected
to remain in deficit in 2018 and settle around 27.2% before progressing strongly in 2019,
with a surplus of 4.6% of GDP.
Economic cooperation with other African countries remains marginal and regional
integration is struggling to materialize. The Congo's main trading partners in 2017 are non-
African countries (China, France, Australia, Italy, United Arab Emirates and United States).
Trade flows with the countries of the zone CEMAC remain very low and represent on average
less 5% in recent years. The realization of free circulation of goods and people in CEMAC
space in 2017 is expected to boost trade in this area. Improving the business climate,
creating the agency investment promotion and implementation of the zones special
economic benefits, such as the Pointe-Noire 2018 are strong signals to increase investment
in foreign direct investment (FDI) in the country whose net accounted for 25.6% of GDP in
2017. However, almost all the flow of FDI to Congo is concentrated in the oil tanker.
Diversification of the economy beyond the sector should be one of the Government's
priorities. Debt policy The worrying proportions of the Congolese public debt in 2017 have
led donors to question the solvency country and the sustainability of its debt, which
reached 110% of GDP ($ 9.4 billion) in 2017, a much higher level the CEMAC convergence
criterion of 60%. The stock of external debt remains very high (47.3% of GDP in 2017) despite
a drop of 4.7 percentage points compared to 2016. Recurring liquidity problems have
resulted in significant arrears in the last two years, fear a significant risk of default. The
service of debt has risen, sharply reducing allocated spending key sectors of education,
health or infrastructure. Public debt service rose from 8% of GDP in 2016 to 9.7% in 2017
and could reach 10.1% of GDP in 2018. The ratio of debt service to exports has reached 9.7%
in 2017 and could reach 10.1% in 2018.
Several IMF missions have succeeded in 2017 to try to restructure public debt and revive the
Congolese economy weakened by the decline in oil revenues. The agencies Standard and
Poors ratings, Moody's and Fitch have degraded Congo's note in July and August 2017 and
the Congo was placed in default of partial payment due to late repayment maturities of
certain securities as of June 30, 2017. concealment of the public debt by the Congo

7|Page
undermined its credibility with international financial institutions and the legal battle
between the Congolese State and the construction company Commissions Import Export
SA dealing with a debt of nearly $ 1 billion for the work carried out killed in Congo from 1992
aggravates this context. The IMF has demanded strong and immediate reforms by the
Government in governance, as a precondition for restructuring of its debt. The Government
has undertaken reforms to improve the management of its public debt and fight against
corruption for reassure its investors and lenders. If several senior officials suspected of
financial malfeasance were stopped, this will not solve the structural problems of the
country's public debt. Other measures must be taken as the creation of independent bodies
to fight against corruption, the declaration of assets for senior officials or increased controls
over the management of public enterprises.

ECONOMIC GOVERNANCE AND POLITICS

Private sector
The private sector plays a leading role. Between 1996 and 2006, approximately 22,500
companies in the Congo and more than 25000 enterprises were created between 2006 and
2017. On some 50,000 private companies operating in the country, more than 98% are very
small and medium-sized enterprises, 2% small and medium-sized enterprises, and less
than 0.5% of large companies. More than 95% of business start-ups would be concentrated
in Pointe-Noire and Brazzaville. Despite their active participation in the country's economic
activity, Congolese private sector actors and foreign investors faced with enormous
difficulties that could slow down the creation of expansion or expansion. The Doing
Business Report 2018 ranks the country 179 in the world for ease of entrepreneurship and
th

insists on the cumbersome procedures which places the country in 40th place in sub-
Saharan Africa, and 42nd largest number of waiting days (49) and the 41th of ranking for
costs which account for nearly 77.7% of renew for the habitant. Aware of the importance of
a strong and vibrant private sector to accelerate the country's economic diversification,
increase tax revenues, support economic growth and reduce vulnerability to external
shocks, the Congolese authorities laises have undertaken various reforms to improve the
climate business and the attractiveness of the country to investors private. It has reduced
the pre-registration formalities businesses (publication, notarization and inspection of
documents), the minimum capital requirement level and endorsed the replacement the
criminal record of entrepreneurs by a declaration under oath at the time of registration of
the company. Financial sector The Congolese financial sector has grown in recent years but
remains very small. In 2017, it had eleven joint banks five insurance companies and 67
microfinance institutions, finance (8.2% of the total CEMAC area). The level of intermediate
the financial ratio remains low, the rate of bankarization being around 5%. Access to
financial services remains one of the major issues of the sector. Only 17% of adults (19%
men and 14% women) have a bank account, 4.4% obtained a loan, and 9.8% saved in these

8|Page
institutions. Microcredit activities mainly concern short-term loans with maturities of less
than six months on average. This strongly discourages usually requiring a longer period for
to be profitable. Most commercial banks seem banks, and the banking sector is generally
over-liquid, with a risk coverage ratio above the minimum 8% and weighted risk limits of
more than 15% of equity maintained. The very strong liquidity of banks Congolese trade is
mainly due to very low rate of granting bank credit due to conditions very restrictive loans
(interest rate of 13.5% on average, prohibitive guarantees, short duration of credit),
insufficient financial knowledge of the population, and mistrust between financial
institutions and their potential clients. The insurance sector remains embryonic and
operates essentially in terms of oil risk coverage. The authorities have recently adopted a
number of measures to revitalize the financial sector, especially with the elimination
interest rate ceilings, the reduction of minimum credit rates and the adoption of a larger
trans- loan procedures. Other reforms the elimination of service charges and the adoption
of the direct transfer. However, the concrete effects of these reforms are not yet felt and
despite an increase in the recent past, bank lending to the private sector remains weak and
represents less than 5% of GDP. It remains highly concentrated in short-term loans, long-
term loans representing often less than 10% of loans. Public Sector Management,
Institutions and reforms Public administration reform and the improvement of the
governance of public institutions are among the conditions by the donors and creditors of
the Congo to support the economic recovery. Indeed, the administration Congolese public
remains handicapped by corruption and financial malpractices. The latest report from the
Commission fight against corruption, fraud and corruption pointed out the serious
dysfunctions of the management public funds and the worrying level of corruption of the
public sector. According to the Commission, the most Broken remains customs, taxes and
the public treasury. By elsewhere, Transparency International's 2017 report on perception
of corruption in the public-sector Congo to 161st out of 180 world and 26th in Africa out of
32. Congo, however, already has mechanisms for monitoring and control of the public
sector and other state institutions. Outraged the National Anti-Corruption Commission, the
country has a Public Procurement Regulatory Authority. In addition, the by Parliament in
March 2018 of the draft law on Five-year public-sector reform will enable the Government
to effectively combat corruption and poor governance and, to put in place mechanisms
rigorous control and transparency in the awarding of public. The major problem is
essentially at the level of the implementation of the reforms adopted by the Government is
lying. The operational weakness of public control bodies against corruption and the lack of
follow-up of the reforms in place explain in part the meagre results in anti-corruption and
institutional reform public. The Government should strengthen the powers creators of the
bodies responsible for reforming the administration and make available to them
mechanisms of sanction. Independent audits should also be conducted in all public
institutions and their conclusions followed by concrete implementing measures.
Natural Resource Management and the environment

9|Page
Congo is committed to ensuring sustainable and killer of the environment of its natural
resources. The country has a legislative framework on the protection of the environment
and regulations on social impact assessment and environmental aspects of mining, forestry
or agroindustry projects. He also set up a forest policy (2014-25) to sustainably manage
forests and contribute to the emergence of a green economy and the fight against climate
change. In January 2017, the Congo adopted a new National Environmental Action Plan
(NEAP) to integrate new environmental concerns arising from the cord de Paris,
recommendations of the COP22 in Marrakech and Sustainable Development Goals (SDGs).
The implementation of these measures and their scope remain problematic, and the
infringements of the because accountability remains very low. The report 2017 on the
Natural Resources Governance Index class Congo to 58 the world (over 86). The overlap
th in

the responsibilities of several ministries more closely less direct with the management of
natural resources and environment creates confusion about the role of each department.
Thus, out of the 35 members of the Government appointed by decree presidential elections
in August 2017, nearly ten ministers are directly or indirectly to the management of natural
resources.
Corruption in the granting of forest concessions, erosion coastal fisheries, overexploitation
of fisheries resources and pollution as well as uncontrolled deforestation are as much
problems with the management of natural resources and environmental aspects of Congo
and, requiring urgent requests from the national authorities.
Political context
2017 was marked by several political events major. The Congolese Labour Party (PCT) thus
won the elections held in July 2017 and won the seats in the Assembly (90 seats out of 151).
In more than arrogate 450 of the 1,400 seats in the local elections of July 2017, the formation
in power also ensured the direction from most of the country's major cities and
departments as well than the Senate. The opposition has also accused the agents of the
force to have voted fraudulently on behalf of the party in power and reports electoral fraud
in a number of electoral districts. A cabinet reshuffle the light came in August 2017 with a
new Govern- which has 35 members. The Pool region has plunged into violence since the
re-election controversial issue of Denis Sassou Nguesso in 2016. Fighting sporadic and often
very deadly rebels Ninjas of Frederic Bintsamu (pastor Ntumi) in the army steady and
displaced nearly 100,000 people. More than half are in a human situation is critical. Arrests
of senior army officers have taken place in 2017 including two generals suspected of a coup
against the President. Amnesty International revealed in 2017, dozens of political
opponents, some of whom prisoners of conscience, were still in detention. The Congolese
Government has considerably restricted public gatherings. Several event requests peaceful
expression by human rights organizations the man were refused by the local authorities.
The situation political opponents and respect for freedom of expression and manifestation
may be matters of concern.

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 SOCIAL CONTEXT AND HUMAN DEVELOPMENT
Human resources
Congo's progress in the education sector is remarkable. Its education sector strategy 2015-
25 aims to reform the national education system to make it more effective and better
adapted to the demands of the labour market. The Congo is one of the most educated
countries in Central Africa with a primary access rate higher than 97%. The efforts since
2000 have contributed to improving access to education at all levels. A Congolese aged
between 20 and 24 years complete about 8.5 years of schooling (8.9 years for men and 8.2
years for women) against an average of 5-6 years in the 90s. Nevertheless, further reforms
are needed to improve the quality of education in the country. The completion rate of the
mayor remains at 74%, secondary school gross enrolment rate at 55% and the repetition
rate, especially in the primary, remains high and continues to increase (from 18% in 2010 to
almost 25% in 2017). Public expenditure on education represents feel less than 5% of GDP.
The poor performance of the system Congolese education is partly explained by
mismanagement human resources leading to a pedagogical management inadequate
training programs and methods. The Government is committed to strengthening its system
of health and increase the protection of vulnerable people. So, infant mortality rates and
that of children under the age of 5 have been halved since 1990 (33 and 45 deaths per 1,000
live births). The death rate maternal education has also declined in recent years, from 509
deaths per 100,000 live births in 2010 to 442 deaths in 2015. The vaccination coverage rate
was also improved with 90% of children aged 12 to 23 months vaccinated against
diphtheria, tetanus and poliomyelitis. However, efforts must be continued. For example,
the delay rate of growth of children under 5 remains high (more 25%). Tuberculosis
incidence rate (4 per 1,000) has not changed significantly in the last twenty years. Finally,
Government should become more involved in the fight against HIV / AIDS since the
prevalence rate that had increased from 3.1% to 2.8% between 2011 and 2014, according
to a survey of the National Council against AIDS in Congo (CNLS), rose to 5% in 2016, or
250,000 people. Poverty reduction, social protection and work Despite the economic
progress made by Congo, these in recent years, the question of reducing poverty topical. If
the strong economic growth observed between 2000 and 2015 contributed to the
improvement of infrastructure and level of education the poverty rate has only fallen 1
percentage point between 2011 and 2015, from 37 to 36%. While the poverty rate has
decreased from 20% to 13% between 2005 and 2015 in the two main cities of the country
(Brazzaville and Pointe-Noire), it grew by 4.6% in rural areas where people have low access
to electricity. city, water and quality health services. Moreover, the country remains marked
by strong inequalities between households richer and poorer, as evidenced by the
coefficient from GINI (48,9).
Decades of civil wars and socio-political crises have strongly accentuated the social
vulnerability in Congo, reason for which the Government has sought in recent years to

11 | P a g e
force its social protection policy. Adopted in June 2014, the Universal Health Insurance Plan
(UHIP) targets the entire of the population and will ensure, as soon as it is put in place,
access to health services in the public and private sectors. The adoption of the National
Policy on Social Action in 2015 illustrates the commitment Congolese authorities to
improve social protection Population. However, the coverage remains low due lack of
funding (less than 1% of the budget), and the multiplicity of actors. Vulnerable groups such
as children, the young, the elderly, the disabled and indigenous peoples do not benefit
sufficiently from essential solidarities guaranteeing their right to survival, to development,
protection and a decent life. Thus, less 20% of the Congolese population (mostly employees
in the public and private sectors) is covered by the social security. In recent years,
Congolese economic dynamism has allowed the creation of many jobs and allowed to
stabilize the unemployment rate at 10% between 2012 and 2015. The recent crisis the
country's economy led to a slight increase in unemployment rate reached 10.7% in 2016
and 11.4% in 2017. The unemployment is higher in urban areas (17.6% in Brazzaville and
13.4% in Pointe-Noire in 2016) than in rural areas where it is less than 2%. It essentially
affects vulnerable groups like women and young people where it is around 25%. The
Government has put in place numerous support for youth employment with mixed results.
Finally, most jobs are created in the informal sector and not guarantee a stable work and
income. Gender equality Women are one of the socio-economic groups the most vulnerable
and marginalized in Congolese society comfortable. Discrimination against women is
reflected mainly in the labour market, in the political sphere and in the decision-making
bodies, at the level of the creation of taken and executive positions. The Development
Report 2016 ranks Congo in 141st place in the world gender inequality index terms. A
regression of 4 places compared to the previous ranking. The unemployment rate is higher
in women than men. The majority of women work in the informal sector. Women remain
very little represented in the spheres of political decision-making and represent only 21.7%
of the of the salaried staff of the central public administration 18.9% of the members of the
courts and 13.8% local government administration. In addition, out of 35 members of the
Government, only eight are women, and in the National Assembly and the Senate, they
represent only 11.3% and 19.7% of the elected respectively. The government has made the
promotion of gender a priority and, in 2017, the country has a new national gender policy
aimed at inter alia to combat all forms of sexual and to strengthen the institutional
mechanism for implementing the national gender policy.

THEMATIC ANALYSIS: FINANCING INFRASTRUCTURE

Infrastructure development remains essential for ensuring economic growth and support
the industrialization of a country. Modernization of infrastructure is essential to
diversification of the economy and the reduction of poverty. Congo has implemented a
National Transport Plan II (2012- 16) to improve its road infrastructure. Congo is laying of

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nearly 21,000 km of main roads of which only 1,900 km are asphalted and only 38% of this
asphalted network and 21% of the non-tarmac network is in a satisfactory state. Several
sections of some 800 km of railroads urgent rehabilitation, including platforms, ballasts and
other structures. Rail traffic has been heavy penalized by recurrent conflicts in the country
and despite the return to calm in recent years, it remains inadequate. In addition, the main
railway line of the country linking Brazzaville and Pointe-Noire (510 km) remains slow,
unreliable, and expensive to cause of the lack of rehabilitation and maintenance of the
tracks, the obsolescence and insufficiency of the rolling stock and the deficit of Human
Resource Management. China Railways Company Construction Corporation International
(CRCCI) and the Ministry Congolese Ministry of Transport signed an agreement in December
2013 partnership to rehabilitate the Congo-Océan Railway. The three international airports:
Brazzaville (Maya-Maya), Pointe-Noire (Agostino Neto) and Ollombo are equipped with
conform to international standards. Five other aircraft national ports were constructed or
rehabilitated years (Ouesso, Impfondo, Dolisie, Owando and Ewo). Air transport is playing
an increasingly important role in ensure connectivity and liaison between different regions
of the country due to the decay of road and rail transport. The port infrastructure of the
country is dominated by the port Autonomous Pointe-Noire (PAPN), the only deep-water
port of the sub region able to receive most vessels (e.g. tankers or container ships). Because
of its importance strategy, the Government undertook huge investments to improve the
PAPN and make it more forming and competitive. In particular, he rehabilitated and
extended the wharf over 800 linear meters to the coast and extended the outer like and
builds a riprap protection rider and the land full at the dock D. The arrival of Bolloré Africa
Logistics at the controls of the container terminal in 2009 allowed to revitalize the activity
of the PAPN. The port has treated more of 650,000 twenty-foot equivalent containers in
2016, compared to only 50,000 in the early 2000s. ICT infrastructures have rapidly
developed since the 2000s with the political calm and the revival of economic dynamism.
The arrival of telephone operators Mobile as Airtel, MTN and Azur has caused new
investments in ICT, to satisfy a more numerous and demanding. The penetration rate of the
telephone the number of mobile subscribers rose sharply (35.4 subscribers per 100 higher
than the average rate for similar countries (23.7 subscribers per 100 people). So, as part of
the WACS (West Africa Cable System), the Congo has been connected to the submarine
communication planned to link South Africa to United Kingdom, along the West African
coast. Congo has put established the Post and Telecommunication Regulation Agency.
Electronic Communications (ARPCE), established by Law 11-2009 25 November 2009 to
better regulate the ICT sector in full growth. He also designed and adopted a cybercast
plans to transform the country into a regional hub for ICT.
Finally, the electricity, water and sanitation infrastructure are improved as a result of
Government investments and its foreign partners. Thus, power plant projects hydroelectric
power plants, driven by foreign companies mainly Chinese, should generate an additional
1,500 MW. These include: Chollet dam between Cameroon and Congo, the central Liouesso

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hydropower plant inaugurated on May 29, 2017 (the Sangha River, with a capacity of 19.9
MW), and the Sounda under design (Kouilou department, capacity estimated city of 700
MW). Rehabilitation projects are in course: Moukoukoulou dam (Bouenza department, 74
MW capacity), and Djoué Dam (Brazzaville capacity range from 15 to 24 MW). We can also
note the extension future of the gas-fired power station in Congo whose capacity should
increase from 300 to 450 MW at Pointe-Noire. In the water and sanitation sector, production
and distribution are mainly provided by the National Society of Water Supply (SNDE) and
the National Agency for Rural Hydraulics (ANHYR). UNICEF and WHO estimated that in
1

2015, 76% of population had access to an improved water point. This rate would be 96% in
urban areas (38% of households connected by network close to home) against 13% in rural
areas. Infrastructure development and modernization public requires significant financial
resources. The state remains the main source of funding for infrastructure and contributes
to more than 80% of investment while the external partners, mainly China, whose role has
grown in recent years (50% of external financing in infrastructure since 2010) nearly 16% of
the financing in the form of loans or of donations. The rest of the funding is covered by
public aid development (ODA) and the private sector (mainly in ICT infrastructure). The
country's expenditure on infrastructure on average accounted for 8% of GDP between 2005
and 2015, a level higher than that of many countries rich in resources and average in sub-
Saharan Africa (2% of 1. On 2 February 2018, the Congolese Government approved two bills
on the dissolution of the National Electricity Company (SNE) and the National Society of
water supply (SNDE) due to low levels of profitability and financial viability. These two
companies will be replaced by three new companies of OHADA law: one, heritage, for the
electricity sector, the second for the water sector, and the last for the transmission of
electricity. GDP between 2009 and 2015). The importance of oil revenues allowed the
Government to increase the level of its investment public infrastructure (18.8% of GDP
between 2010 and 2014 compared with 13.8% for current expenditure in Government). In
2017, the poor economic climate resulted in a decrease of almost half public investments
compared to 2016 to reach 437.5 billion CFA francs. The World Bank estimated that Congo
needed 946 million of dollars a year to meet its infrastructure needs. between 2005-15, of
which 84 million for ICT, 482 million for electricity, 163 million for transport, and 216 million
for water and sanitation. During the same period, actual infrastructure spending amounted
to $ 463 million dollars per year creating an annual funding deficit for infrastructure of 483
million. Financing of infrastructure public authorities was 82% (381 million dollars) by the
State, nearly 10% ($ 44 million) by the China, India and the Gulf countries, the rest (8%)
being allocated equitably between ODA and the private sector. Infrastructure
transportation, water and electricity accounted for almost 80% of annual financing. Despite
the progress made in investment management infrastructure in Congo, the challenges
remain enormous. Class among the countries with very low efficiency in terms of
implementation of public investment spending, the Congo should improve the quality of its
public expenditure on infrastructure to prioritize hidden costs and significant efficiency

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losses. The inefficiency arises from poor selection practices. evaluation and monitoring of
investment projects as well as than a weakly public procurement system regulated.
According to the World Bank, a better exploitation investment budget and better recovery
costs would allow Congo to recover 209 million dollars a year. In addition, each year, some
112 million dollars could be saved by reallocating effectively public resources and the
reduction of operational inefficiencies could bring down the hidden costs of 79 million of
dollars. The Government has adopted certain measures to reform the management of its
public finances, but many are subject to difficulties in implementation and to coordination
between the different ministries concerned. The question is particularly alarming in the
water and electricity where distribution losses reach over $ 50 million a year and where
under-billing and the under-collection of revenues from water services and electricity
losses resulted in losses of $ 78 million and lions of dollars a year, respectively. Several
policy areas can be exploited by the Government to improve planning efficiency, financing,
implementation, monitoring and evaluation of infrastructure. For example, it would be
appropriate to adopt a coherent plan for public investment now linking between planning
and budgeting services and establishing the objectives to be achieved, the financial
resources, human and physical resources to mobilize, and the mechanisms, control and
sanction. The Government should also diversify its sources of funding by also using public-
private partnerships, fundraising international financial markets than own resources.
In addition, recourse to a single financial partner (China over the past ten years) makes the
country highly dependent and vulnerable to the foreign policy changes of this and reduces
its scope for the execution of planned infrastructure projects. It would be necessary to
strengthen officials in charge of public finances (in the framework of continuous training for
example), reorganize and reform the public administration by retaining with proven
expertise in investment management public. Independent services should also be used
internal auditors and external auditors who guarantee the objectivity of and make
appropriate recommendations.

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