Euromoney Country Risk

EUROMONEY COUNTRY RISK

Read the latest analysis on sovereign, geo-political and structural risk

 
Get up to date country risk ratings in 186 countries

Member login



Lost your password?

Euromoney Country Risk

Euromoney Country Risk
List of countries.

Dem. Rep. Of the Congo Dem. Rep. Of the Congo

Overview Change score Analyses Experts
 
Sponsored section
Dem. Rep. Of the Congo

Table of Content


EconomicPoliticalStructural

Dem. Rep. Of the Congo – Quick View
ECR score22.51 (Mar 2011)
ECR rank152 (Mar 2011)
Economic
GDP 2010USD 12.96 billion
GNI per capita PPP 2010USD 291
FDI inflow 2009USD 951 million
Inflation 201023.5%
Central bank assets 2009USD 2,764.98 million
Unemployment rate 201054%
Government deficit 2009USD 170.23 million
Tax revenue 2009USD 1,755.05 million
Political
Government typeRepublic
Recent political crisisNA
Economic freedom score 2011172nd
Freedom of information score 2010148th
Corruption perception index 2010164th
Structural
Birth rate 2005-201045.1 (per '000)
Population balance 2010Up to 14 years - 46.38%
Population balance 2010Above 60 years - 2.65%
Life expectancy years 2005-2010Males - 45.9 years
Life expectancy years 2005-2010Females - 49.0 years
Mortality rate 2005-201017.2 (per '000)
Literacy rate 200867%
Internet access 20105.9%

[Top] Economic Overview

DRC is a developing economy with a growth of 2.5% in 2009. The economy is strongly supported by its agricultural sector, which contributes 45% to the overall GDP of the country.

 

The trading, hospitality and mining industries have seen great development and allowed for the strengthening of the economy following the war in 1998.

(Source: AEO, un.org, afdb.org (pg 156))

Gross Domestic Product (GDP)

 

The GDP in 2010 was estimated at CDF 11,950.10 billion at current prices, demonstrating a growth of 32.4% from 2009.

 

Democratic Republic of Congo GDP and growth rate

e = estimated

(Source: Central Bank (pg 8))

Gross National Income (GNI)

 

In 2010, GNI per capita at Purchasing Power Parity (PPP) was USD 291.

 

Democratic Republic of Congo GNI per capita at PPP (USD)

(Source:UNDP (pg4))

Income tax rate

 

The income tax rate for individuals varies from 3% to 50% depending on the income slab.

 

Income tax for individual

Income slabs (CDF)

Tax levied (%)

0-72,000

3

72,001-126,000

5

126,001-208,800

10

208,801-330,000

15

330,001-498,00

20

498,001-788,400

25

788,401-1,200,000

30

1,200,001-1,686,000

35

1,686,001-2,091,600

40

2,091,601-2,331,600

45

2,331,600 and above

50

(Source: taxrates.cc)

Corporate tax rate

 

The corporate tax rate is 40% and the Value Added Tax (VAT) is 13% on all profit-earning corporations.

(Source: taxrates.cc)

Inflation rate

 

Inflation rate (annual average) was estimated at 23.5% for the year 2010 as compared to 46.1% in 2009.

 

Democratic Republic of Congo Inflation rate (%)

e = estimated

(Source: Central Bank (pg 8))

Foreign direct investment (FDI)

 

In 2009, FDI inflow amounted to USD 951 million, as compared to USD 1,727 million in 2008.

 

Democratic Republic of Congo FDI inflow (USD million)

(Source: UNCTAD (pg 205))

Central bank assets

 

 

As of 31st December 2009, the total assets of Banque Centrale du Congo (the central bank) amounted to CDF 2,174,871 million.

(Source: UNCTAD (pg 205))

[Top] Financial Indicators & Government Financial

Consumer price index (CPI)

 

The annual CPI for  2010 was estimated at 2,348.02, as compared to 1,860.24 in 2009.

 

Annual CPI during 2004 to 2010

Year

CPI

2010e

2,348.02

2009

1,860.24

2008

1,272.21

2007

1,078.46

2006

924.03

2005

816.20

2004

672.36

e = estimated

(Source: IMF)

Retail price index (RPI)

 

In January 2011, monthly general RPI was 110.82, compared to 103.22 in the corresponding period in 2010.

 

General RPI during 2010 to 2011

Month

RPI

2011

January

110.82

2010

December

109.84

November

108.85

October

106.68

September

105.67

August

104.84

July

104.62

June

104.54

May

104.62

April

104.38

March

104.22

February

104.24

January

103.22

 

Base month = December 2009 = 100

(Source: Central Bank (pg 17))

Interest rates


In 2009, banks charged an interest rate of 65.4% with regards to loans to prime customers.

(Source: World Bank)

Money supply

 

In November 2010, total money outside banks amounted to CDF 413,984 million. Deposit money, at the same time, amounted to CDF 1,467,611 million.

(Source: Central Bank (pg 55))


Money Supply (CDF million)

Month

Money outside banks

Deposit money

2010

December*

489,268

1,518,382

November

413,984

1,467,611

October

413,271

1,375,695

September

408,307

1,396,220

August

384,040

1,345,138

July

383,635

1,257,892

June

389,237

1,249,938

May

359,077

1,231,232

April

353,807

1,229,290

March

353,829

1,243,224

February

340,065

1,218,594

January

338,464

1,208,688

2009

December

381,486

1,162,050

 

*preliminary

(Source: Central Bank (pg 55))

Government expenditure

 

In 2009, total government expenditure and lending amounted to CDF 2,477,392 million.

 

Democratic Republic of Congo Government expenditure (CDF million)

 

(Source: afdb.org (pg 158))

Public debt level

 

In 2009, the external public debt of the country was USD 13,822 million.

 

Democratic Republic of Congo Public debt level (USD million)

 

(Source: afdb.org (pg 158))

Official exchange rate

 

In January 2011, interbank exchange rate of CDF against the United States Dollar was CDF 920.98, and the rate against the Euro (EUR) was CDF 1,264.53.

 

Interbank exchange rates during 2006-2011

Year

USD

EUR

28 January 2011

920.98

1,264.53

31 December 2010

915.13

1,202.05

2009

904.53

1,322.47

2008

561.12

824.37

2007

516.68

706.99

2006

468.05

588.90

(Source: Central Bank (pg 35))

Government finances

 

Fiscal balance

 

In 2009, the Government reported a fiscal deficit of CDF 133,902 million.

(Source: afdb.org (pg 158))

Government revenue

 

In 2009, total Government revenue and grants amounted to CDF 2,343,490 million. Tax revenue contributed about 59% to the total revenue. In the same year, Government grants were reported to be CDF 809,400 million.

 

Democratic Republic of Congo Government revenue and grants (CDF million)

(Source: afdb.org (pg 158))

Tax revenue

 

Revenue from taxes amounted to CDF 1,380,487 million in 2009, marking an increase of 27% from the previous year.

 

(Source: afdb.org (pg 158))

Current account balance

 

In 2009, the current account balance of DRC was USD -1,403 million.

Democratic Republic of Congo Current account balance (USD million)

 

(Source: IMF)

Balance of payments (BoP)

 

BoP statement (USD million)

Particulars

2009

2008

2007

Current Account (Net)

-1,403

-1,036

-79

Trade balance

-1,170

-71

457

Balance of services

-932

-915

-632

Net income

-570

-744

-328

Net current transfers

1,270

694

424

(Source: afdb.org (pg 158))

[Top] Labour Force and Employment Overview

Labour force


In 2009, the total labour force was 24,927,234.6 people, compared to 24,030,006.1 in 2008.


In 2008, the labour force participation rate was 89.4% for males and 54.1% for females.

(Source: World Bank, UNDATA)

 

Democratic Republic of Congo Labour force

(Source: World Bank)

Unemployment rate

 

Unemployment rate was estimated at 54.0% of the population for the year 2010.

 

Democratic Republic of Congo Unemployment Rate (%)

e=estimated

(Source: Central Bank (pg 8))

Minimum wage

 

In DRC, minimum wage for all workers is CDF 500 per day. The minimum wage for a 19-year old worker or an apprentice is about USD 65 per month.

(Source: state.gov, doingbusiness.org)

Level of unionisation

 

Major trade unions in the country include:

 

·         Confédération Syndicale du Congo (CSC)

·         Confédération Démocratique du Travail (CDT)

·         Union Nationale des Travailleurs du Congo (UNTC)

(Source: icftu.org)

[Top] Political Stability

DRC has a republic Government with its own written constitution describing the executive, legislative and judicial powers of the country.


The President is the head of state and Prime Minister is the head of government. The executive powers are vested with the President along with the Government, consisting of a Prime Minister, Ministers and Deputy Ministers. The President is elected for a term of five years.


The Parliament exercises the legislative powers of the country. There are two chambers of the Parliament – the National Assembly and the Senate. The members of both these chambers, known as National Deputies and Senators respectively, are elected foe a term of five years.

(Source: constitutionnet.org (pg 18, 23, 25, 26 and 27))

People's Party for Reconstruction and Democracy (PPRD), Movement for the Liberation of Congo (MLC), Unified Lumumbist Party (PALU), Social Movement for Renewal (MSR) and Congolese Rally for Democracy (RCD) are few of the political parties in DRC.

(Source: ipu.org)

Regulatory Environment

 

DRC is ranked 172nd in the 2011 Index of Economic Freedom. Its economic freedom score is 40.7 (out of 100), a decrease of 0.7 points from the previous year. It is ranked 44th out of 46 countries in the Sub-Saharan Africa region.

 

Democratic Republic of Congo Economic Freedom Index

(Source: heritage.org)

Corruption Perception

 

The country is ranked 164th in the Corruption Perceptions Index 2010. Its index score is 2.0 (out of 10), reflecting high levels of corruption.

(Source: transperancy.org)

Freedom of Information

 

DRC is ranked 148th on the Press Freedom Index 2010. It indicates that media is highly restricted.

(Source: rsf.org)

Major newspapers in the country include:

 

 

 

  • Le Potentie
  • La Reference Plus
  • L'Avenir
  • Le Soft
  • Le Palmares
  • L'Observateur
  • Elima
  • Boyoma
  • Mjumbe

 

(Source: news.bbc.co.uk)

Judicial System


The country has an independent judicial system and consists of the following courts:

 

·         Constitutional Court

·         Court of Cassation

·         Council of State

·         Supreme Court

·         Courts of Appeal

·         Military High Court

·         Other courts and tribunals

 

The judicial power is managed by the High Council of the Judiciary, comprising of Presidents and Attorney Generals from all types of courts and councils of the judicial system.

(Source: constitutionnet.org (pg 41, 42 and 65))

[Top] Demographic Overview

Population of DRC is estimated at 67,827,000 in 2010, with a density of 29 people residing per square kilometre.


According to the estimates, females constitute to 50.43% of the total population.


About 51% of the population fall between the age group of 15-64 years.

 

Democratic Republic of Congo Population by Gender, 2010 (%)

(Source: UNDATA, UNDATA, UNDATA, UNDATA, UNDATA)

Population by age-group, 2010

Age group (years)

Population (numbers)

0 – 14

31,460,000

15 - 64

34,571,000

65 and above

1,797,00

(Source: UNDATA, UNDATA, UNDATA)

Birth and Death Rate


During 2005-2010, crude birth rate is estimated at 45.1 births per 1,000 persons and crude death rate is 17.2 deaths per 1,000 persons.

(Source: UNDATA, UNDATA)

Infant Mortality Rate

 

The country has an infant mortality rate of 114 deaths per 1,000 persons.

(Source: msh.org)

Life Expectancy

 

During 2005-2010, life expectancy at the time of birth is estimated at 45.9 years for males and 49.0 years for females.

 

Life expectancy (age in years)*

Period

Males

Females

2005-2010

45.9

49.0

2000-2005

46.0

49.3

1995-2000

43.6

47.1

1990-1995

45.7

49.5

*estimated

(Source: UNDATA, UNDATA)

Migration and Urbanisation

 

At mid-2010, there were around 444,700 immigrants in the country, representing 0.7% of the total population. 

 

In 2007, about 33.3% of the population resided in the urban areas.

(Source: UNDATA)

Ethnic Environment


The country has a wide diversity of ethnicities with about 250 African ethnic groups. Major ethnic groups include Luba, Kongo, and Anamongo.


According to religion, majority of the people are Christians. Religions like Kimbanguism and Islam are also followed by a considerable part of the population.

(Source: state.gov)

Human Development Index (HDI) 

 

DRC is ranked 168th on the HDI 2010. The HDI provides a composite measure of three dimensions of human development which are measured by life expectancy, adult literacy & enrolment in education and per capita GNP at Purchasing Power Parity (PPP). 

(Source: HDR UNDPPDF file)

[Top] Soft Infrastructure

Literacy Rate


In 2009, adult literacy rate (people above 15 years of age) in DRC was about 67% and youth literacy rate (people of age between 15-24 years) was about 68%.

(Source: World Bank, World Bank)

Education

 

DRC follows a multi-level system of education. The education system comprises pre-primary, primary, secondary and higher education.

 

Pre-primary education includes three years of pre-school training for children between 3-5 years of age. Primary education comprise of elementary, middle and terminal levels, each level for a two-year period. Secondary education ranges from 3 to 6 years depending on the type of professional/technical course. Higher education consists of three years of under-graduate courses and 2-3 years of graduation related courses.

(Source: UNESCO)

In 2008, there were 255,594 teachers in primary and 188,808 teachers in the secondary education.

(Source: World Bank, World Bank)

Healthcare

 

In 2006, the country had 8 hospital beds per 10,000 persons.

 

Healthcare statistics (per 10,000 persons)

Facilities

Number

Hospital beds (2006)

8

Physicians (2004)

102

Nurses (2004)

506

(Source: UNDATA, AEO)

The per capita expenditure on healthcare was USD 9 in the year 2007.

(Source: World Bank)

[Top] Hard Infrastructure

Mass Public Transit

 

In DRC, people mainly travel by road. Taxis and mini-buses are used for public transport. Railways are also preferred for travel but on a small-scale.

(Source: travel.state.gov)

Roadways

 

The country has a road network of 153,497 kms, of which only 1.8% is paved.

(Source: estandardsforum.org (pg 5))

Railways


DRC has 4,007 kms of rail network, of which 858 kms are electrified.

(Source: estandardsforum.org (pg 6))

Ports


There are three main ports in the country – Port of Banana, Port of Boma and Port of Matadi. Port of Boma and Matadi are located alongside the Congo River and Port of Banana is located near the Atlantic Ocean.

(Source: worldportsource.com, worldportsource.com)

 

Airports

 

DRC has around 194 airports. N'djili International Airport (Kinshasa), Lubumbashi International Airport, Goma International Airport and Bangoka International Airport are the well-known international airports in the country. Kananga Airport is also popular in the country for domestic travels.

(Source: estandardsforum.org (pg 5), mapsofworld.com)

Telecommunications

 

In 2009, the country had 42,320 fixed landline subscribers and 9,458,557 mobile phone subscribers, with a penetration rate of 0.06% and 14.33%, respectively.

(Source: itu.int, itu.int)

In June 2010, there were 365,000 internet users in DRC and the internet penetration was registered at 5.9%.

(Source: internetworldstats.com)

Key subscription statistics (number of subscribers)

Service

2009

2008

2007

Fixed telephone

42,320

37,320

3,500

Penetration rate (%)

0.06

0.06

0.01

Mobile

9,458,557

9,937,622

6,592,000

Penetration rate (%)

14.33

15.47

10.54

(Source: itu.int, itu.int)

Euromoney country risk banner
 
All material subject to strictly enforced copyright laws.
© 2017 Euromoney Institutional Investor PLC.