Democratic Republic of the Congo Country Economic Memorandum (CEM) - Pathways to Economic Diversification and Regional Trade Integration: Fostering Economic Diversification and Regional Integration for Faster Growth, Job Creation and Poverty Reduction

Economic Diversification in the DRC is hindered by a business environment and key regulatory and fiscal constraints that are not conducive to private sector-led growth. Policies aimed to address the main bottlenecks hindering sustainable and inclusive growth include: i) improving business regulation; ii) promoting access to digital, electricity, and financing; iii) addressing inefficient taxation and fiscal policy challenges; iv) encouraging fiscal decentralization; and v) attracting value chain development. The two case studies discussed in complementary reports are intended to better illustrate the opportunities and challenges described in the Country Economic Memorandum and considered important for economic diversification and job creation through structural transformation and stronger trade and regional integration. The focus is on two key potential growth-driving sectors (mining and agribusiness) that offer substantial opportunities for expansion in the context of global energy transition, food insecurity, and further regional integration. While opportunities and constraints specific to the EV battery-related mining and cassava value chain are presented (and include a climate dimension), most of the challenges and recommendations could also apply to several other products or sectors of the economy (e.g., maize or any manufactured or processed product). The purpose of the illustrative case studies is to highlight how the business environment in general is not attractive to private investment, SME expansion, or product competitiveness.