Brazzaville, Republic of Congo: An International Monetary Fund (IMF) mission led by Roland Kpodar visited Brazzaville from October 19 to November 02 to hold discussions under the fourth review of the authorities' program supported by the IMF Extended Credit Facility (ECF)approved by the IMF Executive Board on January 21, 2022. At the end of the mission, Mr. Kpodar issued the following statement:
"The IMF team welcome the authorities' renewed commitment to implement policies needed to maintain macroeconomic stability, promote inclusive and sustainable growth, and to safeguard fiscal and debt sustainability.
"Economic growth is on track to reach 4 percent in 2023. Production in the oil sector recovered in the first semester after three years of contraction, thanks to a new oil field, an uptick in investments, and the resolution of technical issues that were impeding production. Private investment and consumption are gaining momentum, driven by a robust performance in agriculture, food manufacturing, utilities, construction, and services. Economic growth is expected to strengthen and reach an average 4 percent in the medium-term, with the non-oil sector being the main driver of growth.
"Significant progress was made during the mission on discussions on policy measures to address fiscal consolidation and advance key structural reforms. Priorities include creating fiscal space through: (i) boosting domestic revenue mobilization by streamlining tax exemptions; (ii) prioritizing critical social spending and investment in key infrastructure; and (iii) rationalizing energy subsidies, while strengthening mitigating social measures to help the most vulnerable. Continued efforts are also needed to support implementation of structural reforms to strengthen public investment management, improve governance, and support fiscal consolidation. The aim is to maintain public debt at sustainable levels, redirect spending towards social spending and essential infrastructures, and ultimately provide a sound basis for a stronger and more diversified economy.
"The team is grateful to the authorities for the open and constructive discussions. Virtual discussions will continue over the coming days to finalize the implementation details of these policies for reaching a staff-level agreement. The completion of the review would be subject to approval of the IMF Executive Board."
