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 5.7 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 also has one of the largest areas of tropical peatlands, a fragile ecosystem that removes carbon from the atmosphere and stores it, thus helping to slow global warming. 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.  A new Prime Minister Anatole Collinet Makosso was appointed in May 2021 and is leading a government whose priorities include institutional, economic, financial, social, and inclusive governance. 

Social Context

With a human capital index of 0.42, the Republic of Congo has made little progress in the areas of health and education. Infant mortality remains high at a rate of 33 deaths per 1,000 live births. Only 30% of primary school children have attained the required proficiency levels in math and 40% in French. Access to electricity stands at 66% of the population in urban areas compared to just 15% in rural areas. Access to clean water is below the country’s hydrological potential as 74% of the population has access to a clean water source, while access in rural areas is lower at 46%. 

Economic Context

The Congolese economy contracted by 2.2% in 2021, leading to an increase in extreme poverty from 50.2% in 2020 to 52% of the population in 2021. The economic recovery was affected by the fall in oil production in 2021 (-11% on a year-on-year basis).

Headline inflation remained contained at 2.0% in 2021, despite pressures on food prices that rose by about 3.4%, affecting particularly the poor. With the war in Ukraine, food prices have risen further in the first half of 2022, exacerbating food insecurity. Although Congo remains in debt distress, recent debt restructuring agreements, higher oil prices, and improved debt management have restored the sustainability of public debt, which fell from 113% of GDP at end-2020 to 102% at end-2021.

GDP is forecast to grow at a rate of 1.9% in 2022 and 4.1% on average over the period 2023-2024. This outlook is subject to downside and upside risks. Downside risks include uncertainties related to oil production and prices as well as the COVID-19 pandemic. While a protracted war in Ukraine could increase inflationary pressures in the country, high oil prices could potentially boost the economic recovery.

Last Updated: Oct 07, 2022

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 World Bank Group’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 at helping 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, in particular health, education, and social protection services.

As of September 2, 2022, the World Bank has a portfolio of 14 national projects and two regional projects for a total commitment amount of $788.96 million, financed through IDA, IBRD and Trust Funds. 

Last Updated: Oct 07, 2022

The Support to Enterprise Development and Competitiveness Project (PADEC) of $25.00 million aims to promote entrepreneurship by supporting the creation and development of micro, small, and medium enterprises and strengthening their competitiveness. As of June 30, 2022, 627 firms have benefitted from PADEC’s training and direct technical and financial support through its dedicated business plan competition (CPA) and MSME grant facility. (FADPME). Beneficiaries include existing SMEs, providers of business development services (BDS), new private sector clusters/cooperatives of firms (GIE), and start-ups successfully launched and financed. Amongst its achievements, it is worth noting that PADEC:

• facilitated the adoption of select investment climate reforms (reducing the procedures and costs of compliance in areas related to enterprise creation, access to credit, cross-border trade and payment of taxes);
• strengthened the institutional and regulatory environment for the development of industrial infrastructure and the capacity of institutions supporting SME development and investment.

The Urban Development and Poor Neighborhood Upgrading Project (DURQUAP) of $120.00 million aims to improve access to infrastructure and basic services for residents in four poor neighborhoods in Brazzaville and Pointe-Noire. It also provides assistance in urban management to the authorities. Key project achievements include:  

• 21.280 km of paved urban roads;
• 17.950 kilometers of culverts installed;
• One market totally rehabilitated;
• Two local urban development plans produced.

The Forest and Economic Diversification Project (PFDE) of $32.60 million worked to strengthen the capacity of the forest administration and help local communities improve their management of forest resources. After 10 years of implementation, the project has been able to:

• Help 1,417 households develop agroforestry crops in on a surface of 1,481 hectares of ecologically degraded areas (about 2,116 football fields).
• Facilitate the implementation of activities with shorter cycles, such as beekeeping, which increase the incomes of the population while restoring the environment. Provide microfinance support to producer groups through their savings and loans associations

The Northern Congo Agroforestry Project (PANC) of $15.57 million is to build on the successes of PFDE with more involvement   in the environmental sector. It aims to use the lessons learned and successes of the PFDE in the field of agroforestry and climate-smart agriculture. Currently in its first year of implementation, it will notably support the establishment of mixed subsistence agroforestry systems and mixed agroforestry crops with cocoa in degraded areas.

The Emission Reductions Program (ERP) in Sangha and Likouala of $41.8 million Project aims to reduce emissions from deforestation and forest degradation by rewarding the conservation efforts of key stakeholders with matching payments of their efforts. The project, which is among the first large-scale REDD+ experiments in Africa, will be implemented in the departments of Sangha and Likouala, which cover more than 12 million hectares and account for nearly 60% of the country's forests. The objective is to reduce CO2 emissions by the equivalent of 8,359,000 tons (i.e. around 100,000 Paris - Brazzaville plane flights).

The Skills Development for Employability (PDCE) of $25.00 million aims to train 10,000 vulnerable young men and women living in the urban and peri-urban areas of Brazzaville and Pointe-Noire in 29 promising trades for the Congolese economy. To date, 5,163 young people have benefited from this free training. One survey shows that 63.4% of men and 54.1% of women secured paid employment or were self-employed five to eight months after their training.

The Commercial Agriculture Development Project (PDAC) of $100 million aimed at improving the productivity of farmers and their access to markets. The project’s achievements since January 2021 include:

• 893 producer groups and micro, small, and medium agribusiness enterprises received matching grants;
• 1,556 kilometers of agricultural roads rehabilitated.
• Bridges constructed;
• Rural areas electrified;
• Waterways - along the Libenga, Motaba (Likouala), and Ndeko rivers opened or cleared.

The COVID-19 Emergency Response Project (PRUC) of US$64.98 million aims to prevent, detect, and respond to the threat posed by COVID-19. Among other things, it has enabled the purchase of 933,000 doses of COVID-19 vaccines.

The Health System Strengthening Project – KOBIKISA of $50 million – aims to improve the provision and quality of maternal and child health services for the most disadvantaged households. Its objectives are as follows:

• the assessment and upgrading of more than 1,158 health facilities;
• the implementation of a certification system before the project closes;
• the purchase of medicines;

the availability of stocks of blood and other blood products.

Last Updated: Oct 07, 2022

The World Bank Group, 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. They are all working to promote economic diversification, improve the business environment, develop the health and education sectors, and strengthen social protection. The various United Nations agencies and the Regional Development Bank of Central African States (BDEAC) are also active in the country.

Last Updated: Oct 07, 2022