The escalating conflict in eastern Democratic Republic of Congo (DRC) has put significant pressure on the country’s public finances, the International Monetary Fund (IMF) reported on Tuesday.
The M23 rebel group, reportedly backed by Rwanda, has made unprecedented advances this year, intensifying a long-standing conflict in the mineral-rich eastern region. The group seized Goma, the largest city in eastern Congo, in late January, and Bukavu, the region’s second-largest city, a few weeks later.
According to the IMF, the closure of revenue collection offices in areas controlled by the M23, along with measures aimed at reducing living costs – such as exempting basic food products from customs duties and value-added tax – have contributed to a significant revenue shortfall. These fiscal challenges have been compounded by increased military spending, which has placed further strain on the national budget. In response to growing tensions, Congo’s finance ministry announced in March that it would double the salaries of soldiers and police in an effort to boost morale.
During a visit to Congo’s capital, Kinshasa, the IMF said it had reached a staff-level agreement to review Congo’s three-year economic and financial program under the IMF’s extended credit facility (ECF). The agreement has been adjusted to reflect the ongoing security situation, with the IMF emphasizing that the updated program would help maintain fiscal sustainability while addressing urgent security and humanitarian needs.
Despite these financial pressures, the IMF noted that the Congolese government remains committed to achieving the objectives of the ECF-supported program.
The United Nations and Western governments have accused Rwanda of providing support to the M23 rebels, including arms and troops, a claim that Rwanda denies. Rwanda insists its military actions are in self-defense, aimed at protecting against the Congo army and militia groups linked to those responsible for the 1994 Rwandan genocide.