The World Bank in the Republic of Congo

The Republic of Congo (Congo-Brazzaville), located in Central Africa, covers 342,000 km². Its population of 6.1 million people is largely young, with 47% being under age 18. More than half of the population lives in its two main cities — Brazzaville and Pointe-Noire. The country is one of the least densely populated in Africa, with 14.8 inhabitants per square kilometer. 

Covered mainly by tropical forests, the Republic of Congo is home to one of the largest areas of tropical peatlands, a fragile ecosystem that plays a crucial role in climate regulation. The oil sector accounts for about half of the country’s gross domestic product (GDP) and 80% of its exports, making it the third largest producer in Sub Saharan Africa. The country also has a wealth of mineral resources that remain largely untapped. 

Political Context

President Denis Sassou Nguesso was reelected in March 2021. He led the country for the first time from 1979 to 1992, returned to power in 1997, and has won all elections since 2002. The current Prime Minister, Anatole Collinet Makosso, who was appointed in May 2021, is leading a government whose priorities include institutional, economic, financial, social, and inclusive governance. 

Social Context

With a human capital index (HCI) of 0.42, the Republic of Congo is behind the average of 0.48 for its peer Lower Middle-Income Countries (LMICs). The country has made modest improvements in access to health and education but continues to face structural challenges. Infant mortality remains high at a rate of 32 deaths per 1,000 live births. By the end of primary education, only 37% of children achieve the required proficiency levels in math and 48% in French. Access to electricity stands at 67% of the population in urban areas compared to just 12.4% in rural areas. Access to clean water is another area where improvements are needed; 74% of the population has access to a clean water source, but this is significantly lower in rural areas at 46%, despite the country’s considerable hydrological resources.

The dynamics of social exclusion and drivers of fragility in the Republic of Congo are multidimensional and further exacerbated by poverty and inequality. These issues go beyond the spatial disparities between urban and rural areas, and are exemplified in the divide between population groups, with women, youth, persons with disabilities, and indigenous peoples (IPs) being the most vulnerable. In the 2021 international gender inequality index, the Republic of Congo was ranked 147 out of 170 countries, highlighting the extent of gender-based inequalities. Youth unemployment has also increased over the years and has reached around 42%, which puts additional strain on the country’s fragility and social challenges.

Economic Context

After growing by an estimated 1.9% in 2023, the Congolese economy continues to experience modest growth in 2024, driven by the non-oil sector. However, per capita GDP growth remained negative in 2023 and the poverty rate rose to an estimated 46.8%. The ongoing fuel subsidy reform is helping to maintain fiscal surpluses, but also contributed to a temporary increase in inflation in 2023, which reached 4.3%. Inflationary pressures persisted at the beginning of 2024, driven by last year’s fuel price increase, hikes in cement and beer prices.

Higher oil prices, improved debt management, and debt restructuring agreements helped restore debt sustainability in the second half of 2021. However, the Republic of Congo remains in debt distress due to the ongoing restructuring and audit of domestic arrears as well as the recurrent accumulation of temporary external arrears.

GDP is expected to experience modest growth of 2.1% in 2024 and 3.4% on average in 2025-2026. Although debt vulnerabilities remain elevated, the debt-to-GDP ratio is projected to decline to 83.8% by 2026 (from 96% in 2023). The economic recovery remains fragile and subject to downside risks, including oil price volatility, weaker global demand, postponed oil investments, tighter financing conditions, adverse weather conditions, and weak reform implementation. However, the expected expansion of the gas industry presents an upside risk for growth, public finances, and the balance of payments.  

Last Updated: Oct 03, 2024

In January 2022, the government approved a new National Development Plan (NDP) for the 2022-2026 period, which focuses on economic diversification to reduce fragilities and put the country on the path to high, resilient, and inclusive growth. The government will place significant emphasis on youth employment in the last two years of NDP implementation.

The World Bank’s 2020-2024 Country Partnership Framework (CPF) with the Republic of Congo was extended by a year until 2025 following a Performance and Learning Review (PLR) conducted in the fall of 2021 and approved by the Board of Directors on April 7, 2022.

The CPF, which is aligned with the government’s objectives, aims to help the country improve economic management, create a business environment conducive to economic diversification, strengthen its human capital, and improve the delivery of basic public services, particularly in health, education, and social protection services.

As of September 30, 2024, the World Bank’s active portfolio in the Republic of Congo comprises 13 projects, of which 2 are trust fund financed and 2 are regional projects, for a total commitment of $956.87 million.

Last Updated: Oct 03, 2024

The Fiscal Management and Inclusive Growth Development Policy Financing (DPF) is a programmatic series of three operations (2022-2024). It supports reforms to strengthen domestic revenue mobilization and address persistent inefficiencies in Public Financial Management. It also supports reforms to the business environment and market dynamics essential for the diversification of the economy, addresses critical shortcomings in the delivery of basic public services, and strengthen the social safety net to protect vulnerable populations, especially women. The first operation, worth $50 million, was completed in December 2022. The second World Bank budget support of $80 million was mobilized one year later, in December 2023, bringing the total mobilized to $130 million. With the support of World Bank experts, the government is working to ensure the successful negotiation of the third and final tranche of this budget support package, also estimated at $80 million.

The Social Protection and Productive Inclusion of Youth Project (formerly the Lisungi Emergency COVID-19 Response Project [PLRUC]) of $133 million aims to provide emergency income support to households affected by the COVID-19 health and economic crisis and to increase access to productive safety nets for poor and vulnerable households and youth in participating areas. Implemented since October 2020, it enabled 216,605 households to benefit from emergency cash transfers (ECT) during the Covid-19 pandemic. 29,987 households benefited from conditional cash transfers (CCT) to cover food, education, and health expenses. 23,660 beneficiary households had their micro-projects financed through Cash Transfers for Income-Generating Activities (TMAGR). Lisungi allocations (ECT, CCT and TMAGR) have reached 1,210,723 people living in beneficiary households. 318 Village Savings and Credit Associations (VSCAs) have been set up in the various project areas. The 122 VSCAs in Sibiti and Madingou are already up and running.

The Climate-Resilient and Inclusive Livelihoods Project (ProClimat Congo) of $132 million is to strengthen landscape management, increase the use of improved livelihood activities, and reduce food insecurity in targeted communities. The Contingent Emergency Response Component (CERC) was activated in March 2024 for an amount of $5,683,000, to respond to the urgent needs of the population affected by flooding in several departments.

Health Strengthening and Surveillance Systems:

• Closed on June 30, 2024, the Republic of Congo COVID-19 Emergency Response Project (P173851; $32 million) aimed to prevent, detect, and respond to COVID-19 while strengthening the national public health system. The project successfully enhanced public health preparedness and made progress in its annual work plan. Key activities included training, purchasing laboratory equipment and incinerators, rehabilitating laboratories, and acquiring Pressure Swing Absorption (PSA) oxygen units for four regions. Efforts continue to finalize remaining tasks such as equipment installation, additional training, and further rehabilitations.
• The Health System Strengthening Project Kobikisa, a $50 million initiative, aims to enhance the utilization and quality of reproductive, maternal, and child services in targeted areas, particularly among the poorest households. Since its launch in November 2021, the project has facilitated the distribution of essential and generic medicine kits (MEGs) across the 12 departments of the Republic of Congo, acquired routine vaccines, evaluated 1,041 health facilities nationwide, produced therapeutic protocols, acquired 42,000 blood collection bags, updated tools for the performance-based financing (PBF) approach, trained and contracted 319 health structures and facilities, disbursed investment funds to health facilities, established the PBF web portal, and trained users on the portal. The project's closing date has been extended by one year to further strengthen the PBF scheme's implementation in the country.
• Closed on July 31, 2024, Republic of Congo’s Regional Disease Surveillance Systems Enhancement Project (REDISSE) Phase IV (P167817; $15million) made progress towards most of the project development objectives. It has achieved laboratory testing capacity for detection of priority diseases, event verification and investigation, and risk-based approach to international travel measures. The project demonstrated high performance of Congo’s M&E plans.

The Congo Digital Acceleration Project (PATN) of $100 million aims to increase broadband internet access to underserved populations and improve the government’s capacity to deliver digitally enabled public services. Implemented since January 2023, it has helped to develop the "Vision Congo digital 2030" strategy, notably by putting in place the legal framework for the digital economy, the national framework for the development of digital skills, as well as the legal and regulatory framework for civil status, civil acts and identification. Connectivity activities for (i) two public universities and the Office of the Ministry of Higher Education, (ii) selected MDAs, and (iii) rural areas are progressing well. Various technical assistance (TA) efforts support the operationalization of the national digital agency (ADEN), the Cybersecurity Agency (ANSSI), and the Data Protection Commission (CPD).

Last Updated: Oct 03, 2024

The World Bank, China, the European Union, Agence française de développement (AFD), and the African Development Bank (AfDB) are the main financial partners of the Republic of Congo. Their main areas of intervention include promoting economic diversification, improving the business environment, developing the health and education sectors, and strengthening social protection. The various United Nations agencies and the Regional Development Bank of Central African States (BDEAC) are also active in the country. The Country has been on a three-year Extended Credit Facility (ECF) program since January 21, 2022.

Last Updated: Oct 03, 2024