Jan 23 – Global credit ratings agency S&P on Friday revised the Democratic Republic of Congo’s outlook to “positive” from “stable,” citing expected progress on tax administration and fiscal performance, as well as favourable terms of trade, rising exports and reforms backed by the International Monetary Fund.<\/p>\n
The ratings agency said real GDP growth is set to average about 5% through 2028, outpacing most peers as demand for copper and cobalt remains firm. Robust mining output is expected to drive the economy and boost foreign currency reserves.<\/p>\n
Sign up here.<\/a><\/p>\n The S&P’s decision comes after a cautiously optimistic assessment of Congo’s economy by the IMF in its review of programs with Kinshasa.<\/p>\n The Fund, however, warned of risks, including commodity price fluctuations and the persistence of a conflict with Rwanda-backed rebels in the east of the country, which exerts significant pressure on public finances.<\/p>\n The copper- and cobalt-rich nation this week announced plans to issue a debut Eurobond for $750 million in April, aiming to leverage its fairly low debt levels and the IMF’s positive appraisal.<\/p>\n Finance Minister Doudou Fwamba Likunde welcomed S&P’s revision, saying it will boost investor confidence ahead of the country’s international debt market debut.<\/p>\n The government viewed the decision “as an important recognition of the DRC’s economic resilience and the Government’s ongoing efforts to strengthen macroeconomic stability,” he said in a statement.<\/p>\n The country retained its “B-” long-term and “B” short-term local- and foreign-currency sovereign credit ratings.<\/p>\n Reporting by Colleen Goko and Aatrayee Chatterjee; Editing by Sahal Muhammed<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n