The Democratic Republic of Congo (DRC) is one of Africa’s top mineral-rich nations, owning 70% of the world’s cobalt. The country, which has a population of 101 million people, is also a top producer of gold and diamond.

But lack of infrastructure and continued instability in the country has ensured the DRC misses the benefits of these resources. In fact, these minerals have fueled conflict in the nation. Consequently, the DRC does not have a stock exchange.

Now, more people are exploring ryptocurrency as the economic pains of the country grow. The East African estimated in last September that Africa’s third most populous nation had over 2 million cryptocurrency owners. The country also hosts Jambo, a Web3 company that raised $30 million in 2022.

Its economy is still experiencing stings from global effects such as foreign currency exchange rates, US interest rates, inflation, the war in Ukraine and a local conflict in the eastern part of the nation whose truce only came in March.

Here are some of the economic pointers to where DRC is this year so far:

January – Bitcoin Saves Nature as Economy Remains Resilient

According to African Development Bank (AfDB), projected GDP growth will reach 6.4% in 2023. This is due to improvements to transport and logistical infrastructure that are set to support the resumption of services, and industries, stimulating export and tax revenue.
A report by MIT Technology Review showcases how Bitcoin mining saved the country’s Virunga National Park, which suffered through rebel kidnappings, ebola and Covid-19. These misfortunes dwindled the park’s revenue, but Bitcoin mining through its hydroelectric infrastructure brought in revenues. Proceeds from the sale of Bitcoin are already helping to pay for park salaries, as well as its infrastructure projects like roads and water pumping stations, the report denoted.

February – Mining Lifts Country’s GDP

The International Monetary Fund (IMF) revised upwards the 2023 growth projections for the Democratic Republic of Congo (DRC) to 8%, following a “stronger-than-expected” growth in mining production.

March – Inflation Rises

The inflation ra t e in March was 22.28% from 18.15% signaling a worsening economic stance in the DRC, according to Trade Economics. The conflict situation in the North Kivu province of the DRC continues to burden the economic situation of the country.
Kenyan banks, Kenya Commercial Bank and Equity Bank have seen massive gains in their inroads into banking in the DRC. The Business Daily reports that the DRC has handed Equity Group and KCB Group their largest and most profitable operations outside the Kenyan market.

April – Depreciating Franc and Massive Fraud

According to news reports, the Congolese franc has depreciated about 15% against the US dollar since the beginning of 2023. Before the depreciation, the exchange rate was $1/2000 Congolese francs. It now trades for $1/2,320 Congolese franc.
An estimated $794 million is lost every year in the DRC due to massive payroll fraud in government institutions. The Inspection Generale des Finances (IGF), the official spending watchdog, said 145,604 matriculation numbers for public servants were either “incorrect, fantastical” or “fabricated”.

May – Brighter Days for Mining

DRC President Felix Tshisekedi and China President Xi Jinping met in Beijing and spoke about strengthening their economic ties. China is the main destination for most of Congo’s minerals. Over the years, the DRC has been disgruntled over the mining share the company keeps in its trade with China.
The IMF agrees to continue to support the DRC with its Extended Credit Facility (ECF) of $200 million even as inflation continues to rise in the country. The medium-term outlook remains favorable, supported by expanding mining production and hinges on proactive reform efforts, the IMF said.

-Edited by Faustine Ngila, Shigeru Sato