Forbes

Finance Minister nicolas Kazadi KadiMa-nzuji Brings new impetus to the drc Ministry of Finance.

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Formerly ambassador-at-large in President Tshisekedi’s administra­tion, he has paved the way for the resumption of structural cooperatio­n with the Internatio­nal Monetary Fund (IMF). That work has borne fruit, to the great benefit of the DRC.

When Finance, renew he the Kazadi arrived dialogue set at himself with the the ministry a internatio­nal goal: to of (IMF) and monetary sig n a Fund n ew three-year agreement under the extended Cre d it Facility (E CF). since the suspension in november 2012 of the second three-year program with the IMF, the Drc had not received budgetary support from the fund for balance of payments support. This nine-year hiatus has left its mark on the Congolese economy, closing the door on some external partner financing.

kazadi led the negotiatio­ns that resulted in the signing of a new threeyear agreement with the IMF on July 15, 2021. A press release issued by the IMF Executive board on July 15, 2021 stated “the ecF arrangemen­t will support the authoritie­s’ medium-term reform program aimed at maintainin­g macroecono­mic stability, increasing fiscal space, and promoting sustainabl­e, private sector-led economic growth.”

The board further noted that the ecF arrangemen­t will focus on three key areas: enhancing domestic revenue mobilizati­on to increase fiscal space for infrastruc­ture and social spending; strengthen­ing governance, including natural resource management and transparen­cy; and strengthen­ing the monetary policy framework and central bank independen­ce. the agreement is expected to catalyze support for the budget and projects of external partners.In December 2021, the DRC passed its first test in this regard when the IMF Executive Board approved the disburseme­nt of US$212.3 million for the country. The board recognized achievemen­ts under Kazadi’s leadership, noting that “despite the covid-19 pandemic, the rebound in economic activity is stronger than initially expected, supported by higher than expected mining production and the recovery of nonextract­ive growth.”

Beyond on the imF capitalizi­ng agreement, Kazadi seeks to revitalize the Drc’s internal mobilizati­on machine. this work is gaining considerab­le traction. For the first time in the history of public finance in the Democratic Republic of Congo, the three traditiona­l financial authoritie­s: the Directorat­e General of Taxes (DGI), the Directorat­e general of customs and Excise (DGDA), and the Directorat­e General of Administra­tive, Judicial, Domain and Participat­ion Revenues (DGRAD), have responded unanimousl­y the minister of Finance’s call to action, breaking records in revenue mobilizati­on.

In November, the DRC Council of ministers applauded kazadi for these financial accomplish­ments. “In terms of current revenues mobilized from January 1 to October 28, 2021, a cumulative total of 9,439 billion Congolese francs was recorded,” the council noted. “This indicates that the annual budgetary assignment­s have, at this stage, been achieved at 100%.”

drc Finance Minister nicolas Kazadi is a champion for public finance reform.

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