The DRC and the World Bank sign a financing project called “ENCORE”

Kinshasa, February 13^th, 2022 (CPA).– The government of the Democratic Republic of Congo (DRC) and the World Bank signed a financing project on Friday, the CPA learned on Saturday from the said ministry. The Democratic Republic of the Congo was presented for the signature of this project by the Minister in charge of Finance Nicolas Kazadi and the World Bank by Jean-Christophe Carret, its Director of Operations for the DRC, Angola, Burundi, and Sao Tome & Principle. This financing project, which focuses on improving revenue collection and expenditure management in the DRC, is called “ENCORE”. It is valued at 250 million USD, of which 125 million is in the form of a grant, and the other half in terms of credit, thus constituting a new opportunity within the framework of the ongoing efforts focused on the mobilization of resources for productive investments in benefit of the people. The source indicates that « ENCORE » targets certain reforms, among others, the strengthening of credibility and budgetary discipline, the rationalization of tax expenditures and the consolidation of the VAT reform, the rationalization of non-tax revenues, the improvement cash management through the commissioning of the single Treasury account, the strengthening of the public procurement system by favoring calls for tenders as the main mode of public procurement, the list is not exhaustive. For the national treasurer, the government intends to rely both on internal resources and on the financial support of partners of the inter-donor group of public finances, in order to boost economic growth in the DRC. The very recent signing of the memorandum of understanding for the permanent framework for consultation and monitoring of public finance reforms, as well as the financing agreement for the « ENCORE » project, are part of this aim. « The Congolese government is assured of support for the key reforms of public finance management aimed in particular at operationalizing the national network of public accountants, setting up the service of the Directorate General of the Treasury for public accounting, completing the process of the deconcentration of authorisation, digitize the public finance management system, promote transparency in the management of public enterprises” declared the Minister of Finance. According to Nicolas KAZADI, increasing public revenue remains the government’s priority in order to help it focus its action on the fight against poverty. To this end, the World Bank should consider the modalities of also directing the interventions of the « ENCORE » project towards reform actions contributing to the improvement of tax policy and the strengthening of the management capacities of tax administrations.