War in east is eroding Congo’s budget surplus, finance minister says

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Windfall revenue from mining has compensated for some of the unexpected expenses of fighting a rebellion.

Higher-than-expected mining revenue has limited the fiscal impact of fighting a rebellion, Finance Minister Nicolas Kazadi said.

Congo’s budget for “exceptional security expenses” has increased more than 10-fold because of the conflict with the M23 rebel group, which has displaced almost 200,000 people, Kazadi said in an interview Tuesday on the sidelines of the Africa Financial Industry Summit in Lome, Togo. The government has also spent more than $400 million subsidizing high fuel costs caused by the war in Ukraine after budgeting only $80 million, he said.

The unrest comes as Congo prepares to hold elections on Dec. 20, 2023, with President Felix Tshisekedi seeking to renew his mandate. A ratings upgrade by Moody’s Investors Service this month and a recent positive review by the IMF show the economy is headed in the right direction, Kazadi said.

 

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