Kinshasa - The Democratic Republic of Congo’s (DRC’s) economy may grow 8.7 percent next year as the government increases support for the mining and agricultural industries and small and medium-sized businesses.
Gross domestic product may rise to 21.8 trillion Congolese francs (R233 billion) in 2014, according to a statement following a Council of Ministers’ meeting on Monday. It did not provide comparative economic growth figures for 2013.
The government plans to increase spending by 4.9 percent to 7.6 trillion francs, based on an average exchange rate at 928 francs per dollar, according to the statement. Inflation may reach 3.7 percent next year, up from 1 percent projected by the central bank for this year, they said. “The government will devote itself to certifying our mineral and oil reserves” next year. The country would also invest in projects to develop rural communities as well as support farming and small and medium-sized companies, the statement said.
The DRC’s oil and mining industries represented about 17 percent of economic output last year, according to the International Monetary Fund. While it was the top producer of cobalt and eighth-largest copper supplier last year, the country is trying to diversify its economy beyond natural resources to spur growth and create employment.
Prime Minister Matata Ponyo said this month his “fundamental priority” was to secure financing from private investors for the state’s $5.7bn (R57bn) plan to reinvigorate agriculture.
The central bank expects 8.1 percent expansion this year. – Bloomberg