An elusive plan – Congolese independence team

[ad_1]

Contents

A very ambitious plan Unrealistic Projects Still, there is hope

We hope that the new chef – new chef? – government and its team will be able to “implement national policy” to achieve the ambitious plans. Widespread corruption and misappropriation of public funds will be obstacles. The new government promises to create 6.4 million jobs. These are private companies that create jobs. Can we have industry without electricity? Currently the energy supply is in short supply. No large hydroelectric dams will be built in the next 5 years. What if the business environment is not good?

Gaston Mutamba Lukusa

On the night of June 11-12, Prime Minister Judith Suminwa Tuluka presented the government’s five-year plan in a lengthy 67-page speech in the National Assembly. This inauguration has stirred real enthusiasm among the socially completely deprived population who hope that the Prime Minister will succeed in curbing the multifaceted crisis that the Democratic Republic of the Congo is suffering from. She has given a good diagnosis of the ills that plague Congolese society. This is ultimately what everyone has been doing since the country’s independence in 1960. But there has never been any real political will to reverse this situation. Some believe that we should give Mrs. Judith Suminwa Tuluka the benefit of the doubt and wait to be judged on the actions of the government. However, we must hope that it will enjoy the effectiveness of the powers to implement its plans. Widespread corruption and misappropriation of public funds will be obstacles. The same is true of the security situation, which will most likely remain a concern for the next few years. Remember, it is the private sector that creates jobs.

A very ambitious plan

The cost of the Government Action Plan for 2024-2028 is 277,066.2 billion CAR francs, or $92.9 billion over a five-year period, or an average annual cost of 55,413.2 billion CAR francs. It will be covered entirely by state and non-state resources from the central government and the provinces and decentralized regional entities. This cost is huge compared to the resources that the Congolese economy can generate. The Government’s Action Plan is divided into six pillars that have the potential to accelerate the country’s economic and social development, divided into 56 strategic axes and 326 actions, projects and reforms to be implemented by the various departments. The six pillars are: I. Building a diversified and competitive economy, creating more jobs and protecting household purchasing power; II. Protecting the national territory and the security of the people and their property; III. Developing the national territory for maximum connectivity; IV. Guaranteeing access to basic social services; V. Strengthening the capacity of the Congolese people to participate in nation-building; VI. Managing the DRC’s ecosystems in a sustainable and responsible manner in the face of climate change.

In some ways, the policies appear to be a copy and paste of the 2021-2023 action plan of the government led by Prime Minister Jean-Michel Samar Lukonde. His plan envisaged a strong, prosperous and unified country, with progressive development. It included 343 actions, which were chosen for their impact and visibility, with some considered priorities and symbolic. But in the end, less than 5% of the planned actions were implemented.

People’s Palace Semicircular

Unrealistic Projects

According to the plan, the government will create a total of 6.4 million jobs by 2028 through six strategic axes, taking advantage of existing job opportunities. However, even if the informal sector is included in the official sector, it is impossible to create so many jobs in five years. Through this policy, the government plans to create 2.6 million jobs. Note that according to the National Investment Promotion Agency (ANAPI), more than 300 projects have been approved for the period from 2019 to 2023 (i.e. five years) to benefit from the Investment Code. The overall investment cost is US$13 billion, and the number of jobs created is only 37,738. Therefore, it will be difficult to create more jobs in the next five years. Remember, it is the private sector that creates jobs. Moreover, there can be no industry without electricity. But there is a shortage of energy supply at the moment. No large hydropower dams will be built in the next 5 years. The plan only envisages the launch of five solar park projects in each region.

In terms of electricity, the government only intends to: 1. Take emergency measures for the electricity supply in Kinshasa, Lubumbashi and Kisangani; 2. Increase the capacity of Inga I and II to 1,300 MW due to the modernization of INGA 2 groups (G23, G24, G25, G26); 3. Complete and commission new hydroelectric power stations (KATENDE, KAKOBOLA, etc.); 4. Renovate and expand the 72kV high-voltage distribution network in Chikapa-Kamonya, Inga-Kolwezi, etc. It will also become difficult to import electricity from neighboring countries that themselves face power shortages.

Finally, the current engine of the national economy is the extractive industry. In addition to creating few jobs, it is also facing electricity shortages. What can we say about the bad business environment that has a negative impact on business creation? There is no evidence that legal and judicial insecurities will disappear in the medium term and public administration will become more efficient. The government is interested in creating a middle class that can contribute to wealth creation and national development. But the bourgeoisie cannot dictate by itself. It is constructed by the force of the wrist when conditions allow.

Despite its importance for people’s lives, the supply of drinking water is still being neglected. To address the shortage of drinking water, the government intends to set up a Public Water Services Regulatory Authority. This is DIY! He announced that he would continue the efforts made during his last five-year term, especially in the area of regulation and management of the water sector. However, the Samarukonde government has been indifferent. The two water plants inaugurated in Kinshasa were financed by the World Bank on the basis of negotiations carried out during the presidency of Joseph Kabila. Therefore, people will continue to die of thirst.

Agriculture is the foundation of all economic development and the government intends to modernize and develop agriculture, fisheries and animal husbandry. But one important point has been overlooked, which is to protect the country’s agricultural sector by imposing tariffs on imports of subsidized products.

Still, there is hope

The Government advocates stability in the macroeconomic framework. This will contribute to exchange rate stability and safeguard the purchasing power of the population. The coordination of economic policies, in accordance with the Stability Pact, will continue to be a focus of the Government. A budgetary policy based on non-dependence on advances from the Central Bank of the Congo will reduce the level of the budget deficit. It will then be necessary to increase state revenues, respond to security spending pressures, and mobilize budgetary support from the World Bank and the International Monetary Fund. Monetary instruments will continue to be used to curb inflation and exchange rate pressures.

It is still necessary to combat the dollarization of the economy through appropriate policies. According to the action plan, the government will continue to work on continuing to improve the social well-being of the people. Free basic education will be accompanied by efforts to improve the learning conditions of students and the working conditions of teachers. In addition, it will continue to modernize university infrastructure. The policy of “universal health coverage” aimed at guaranteeing access to health services for all will continue.

For all the wars we are going through, the Government has expressed its desire to find a lasting solution and to lead efforts within the framework of the Peace Consolidation Fund. According to the Government’s action plan, the M23 attacks have recurred since 2021, killing countless people and causing the displacement of millions of Congolese to the city of Goma. The aggression of the Rwandan army and the “March 23” rebels has led to the destruction of important infrastructure, including medical facilities, schools, religious institutions and Virunga National Park. In addition, the activities of other terrorist groups in the Greater North Kivu Province and the southern Ituri region have increased. The presence of foreign and local armed groups in Ituri, South Kivu, Maniema and Tanganyika further exacerbates the insecurity and undermines the peaceful coexistence of the Congolese people. Inter-community conflicts also persist in other parts of the country, especially in Mai Ndombe, Tchopo, Maniema, the Greater Kasai region and the Greater Katanga region. Now is the time to talk, consult, negotiate. Only through these negotiations can a lasting peace be achieved.