The Democratic Republic of Congo is endowed with vast natural resources and potential funding, but its main challenge is transforming these resources into production, employment, and sustainable improvement in living standards. This is the core of the economic reflection developed by former Finance Minister Nicolas Kazadi in several interventions in early September. Kazadi emphasized that the country must shift from a logic of resource mobilization to one of wealth creation. This requires strengthening the administrative state, improving tax mobilization, developing national production, and better orienting public and private investments.
According to Kazadi, national identification is a crucial first step. A reliable biometric system would enable better knowledge of the population, taxpayers, and beneficiaries of public policies. This reform must be accompanied by improved traceability of incomes and assets to gradually broaden the tax base. Although the deficit in physical addressing should no longer be considered an insurmountable obstacle, Kazadi noted that digital technologies can associate biometric identity with digital data and build a system capable of identifying and tracking the population. The challenge goes beyond simply issuing an identity card.
A unique biometric file could also serve as the basis for a permanent electoral register, avoiding the need to repeat enrollment operations periodically. According to Kazadi's estimates, this evolution could generate considerable savings for the state, with nearly $500 million in potential savings per electoral cycle. However, the ultimate goal remains production. The DRC must reduce its dependence on imports and raw material exports by developing its own value chains. Agriculture offers significant potential, with coffee, cocoa, cotton, and palm oil becoming genuine economic channels if infrastructure, financing, and producer organization improve.
The mining sector must also adopt the same logic. The situation of the Industrial and Mining Company of Beni (MIBA) illustrates the need to rethink public enterprises based on market transformations. Kazadi believes that diversification into new resources, particularly critical metals, must be accompanied by more effective governance and transparent partnerships. Saving MIBA does not mean artificially reconstituting the company of yesterday; instead, its asset portfolio, economic model, partnerships, and activities must be rethought.
Infrastructure and energy are also crucial for economic transformation. The DRC's rail and road network deficiencies increase production costs and hinder competitiveness. Kazadi stressed that investing in these areas is essential to enable the country to produce at a lower cost and become more competitive. The development of hydroelectric potential, in particular, could provide a sustainable and renewable energy source.
Kazadi's vision for the DRC's economic development emphasizes the need for a comprehensive approach that addresses the country's infrastructure, governance, and production challenges. He believes that with the right policies and investments, the DRC can transform its resources into wealth and improve the living standards of its citizens. The former minister's proposals have sparked a national debate on the country's economic future and the role of the state in driving growth.
As the DRC looks to the future, Kazadi's ideas on transforming the country's resources into wealth will likely continue to shape the national conversation on economic development. With the right strategies and investments, the DRC may be able to unlock its vast potential and create a brighter future for its citizens. The country's leaders will need to work together to address the challenges identified by Kazadi and implement policies that promote sustainable and inclusive growth.
Key points
- The DRC must shift focus from resource mobilization to wealth creation.
- A reliable biometric system is crucial for improving tax mobilization and governance.
- Investing in infrastructure and energy is essential for reducing production costs and increasing competitiveness.
