AfDB Approves US$16.58 Million to Consolidate Public Finances in DRC
The African Development Bank Group approved on 24 October 2013 a US$ 16.58 million (UA 10.96 million) African Development Fund (ADF) grant resources to finance the Statistics and Public Finance Institutional Support Project in the Democratic Republic of Congo.
The Statistics and Public Finance Institutional Support Project (PAI-STATFIN) will help build the State’s institutional capacity to manage and consolidate the economy particularly its public finances.
The specific objectives of the Project are to: (i) develop a national statistical system that will provide reliable and updated data on development objectives; (ii) measure the outcomes and impacts of projects and programmes supporting the Government’s actions; (iii) monitor and evaluate the implementation of economic policies and reforms and (iv) enhance the efficacy of institutional systems and mechanisms for the collection of mining taxes as well as those required to improve transparency and accountability in public financial management in general.
The project is consistent with the DRC’s Growth and Poverty Reduction Strategy Paper (2011-2015 GPRSP) which focuses on the following four thrusts: (i) strengthening of governance and consolidation of peace; (ii) economic diversification, acceleration of growth and employment promotion; (iii) improved access to basic social services and building human capital; and (iv) environmental protection and climate change control.
It is consistent with Thrust 1 of the Government’s 2011-2015 GPRSP namely: the strengthening of governance and consolidation of peace. The project will also have an impact on Thrust III of the 2011-2015 GPRSP as a result of increased mobilization of revenue which will be used to improve access to basic social services, but also through the provision of reliable socio-economic indicators for more efficient management of the economy.
From a sector perspective, the project is part of continuing implementation of the Strategic Public Finance Reform Plan (PSRFP) adopted by the Government in 2010 and provides support to the Government’s tax administration modernization programme aimed at strengthening domestic resource mobilization. It is also consistent with the implementation of the National Statistics Development Strategy (NSDS) with a view to strengthening the production of credible socio-economic statistics and, accordingly, improving management of the economy.
The Bank’s intervention in the area of public finance is also part of its continuing support to the country initiated in 2008 as well as support to the government’s efforts geared towards improving the collection of mining revenue which is still too low given the country’s mining potential.