This is according to a new International Monetary Fund (IMF) assessment that urges decisive reforms to stabilise the economy and protect social spending.
In its latest country analysis published on Tuesday, the IMF notes that while higher global oil prices have strengthened export earnings and government revenue, structural weaknesses continue to undermine economic resilience. Oil still accounts for the bulk of fiscal income and exports, leaving the economy highly exposed to external shocks.
The IMF warns that public debt remains elevated, with debt service absorbing a significant share of government resources. Although debt indicators have improved since earlier restructuring efforts, the Fund cautions that limited fiscal buffers leave little room to respond to future shocks, particularly if oil prices decline or financing conditions tighten.
Economic growth is projected to remain modest, constrained by weak non-oil sector performance, limited private investment and governance challenges. The IMF highlights persistent bottlenecks in infrastructure, electricity supply and the business environment, which continue to discourage diversification and job creation.
Inflationary pressures have eased, but the report stresses that high living costs and unemployment are weighing on households. Social indicators remain fragile, with poverty levels still high despite periods of strong oil-driven growth. The IMF emphasises that better targeting of social spending is essential to ensure that economic gains translate into improved living standards.
To address these challenges, the Fund calls on the authorities to strengthen public financial management, enhance transparency in the oil sector and improve domestic revenue mobilisation. It also urges reforms to state-owned enterprises, particularly in the energy sector, to reduce fiscal risks and improve efficiency.
The IMF argues that accelerating structural reforms to support agriculture, transport and services could help reduce reliance on oil and promote more inclusive growth. Improving governance and tackling corruption are identified as critical to restoring investor confidence.
For the DRC, the IMF concludes that the current recovery offers a narrow window of opportunity. Without sustained reform, the country risks renewed fiscal stress and slower growth at a time when many African economies are seeking to build resilience amid global uncertainty.
–IMF/ChannelAfrica–
