MACHINE NAME = WEB 1

Building productive capacities in the Democratic Republic of the Congo

The development of the Democratic Republic of the Congo (DRC)’s productive capacities, as measured by the Productive Capacities Index (PCI), reflects unsatisfactory socio-economic development of the country. With an aggregate PCI score of 23, the DR CONGO ranks 189th globally out of 194 countries and 49th regionally in Africa out of 54. The country remains well below the median score of African Least Developed Countries, which stands at 28.

Overall, the DRC’s performance on the PCI has been limited to marginal improvements from a very low base, a pattern that is concerning. Indeed, progress across individual PCI components has been uneven and modest in scale: the enabling sectors of Transport (9), Energy (15), Institutions (20), ICT (23), and Human Capital (21) all record weak scores. Meanwhile, the two comparatively stronger components, Natural Capital (44) and Structural Change (44), were subject to specific circumstances that mask underlying structural fragilities.

As a result, the PCI analysis exposes large room for improvements of productive capacities throughout multiple sectors of the Congolese economy, which are compounded by high vulnerability to the impacts of climate change. Over the past quarter century, an extractive resource-based growth model, significant imbalances in the external sector, and limited progress with regards to the country's structural transformation were among the most concerning features. Enclave-based mining expansion generated high investment rates but failed to translate into broad-based employment, productivity gains, or linkages to the wider economy.

At the heart of DRC’s economic fragility have been the observed deficits in key infrastructures and human capital, persistent insecurity and armed conflict in the eastern provinces, which continue to displace populations, destroy productive assets, and fragment the national economic space, as well as suffocating monetary conditions that have rendered productive investment prohibitively costly. These structural characteristics reproduce a vicious cycle of commodity dependence, fiscal vulnerability, and persistent poverty.

Therefore, the overarching objective of policymaking must be the shift away from the dependence on extractive industries through a diversification of the economy and productivity gains that are shared widely across the population and regions.

To achieve these objectives and to harness the ample economic potential that resides in the Congolese economy and its people, it is necessary to develop a holistic approach that encompasses the various interactions between the given sectors as well as the interdependencies between macro-, meso-, and micro-level institutions.

The key lies in building economy-wide national productive capacities, understood as the productive resources, entrepreneurial capabilities and production linkages that together determine a country's ability to produce goods and services that enable it to grow and develop.

Objective of the Project 

To create conditions for building national, economy-wide productive capacities in the DRC.

Activities

  • The national policy-level workshop on fostering productive capacities in the Democratic Republic of the Congo for economic diversification, resilience and inclusive growth
  • The national capacity building Training on Statistical, Methodological and Computational aspects of the Productive Capacities Index (PCI) in the Democratic Republic of the Congo
  • Consultations with Government experts, academia and private sector from the Democratic Republic of the Congo on building national productive capacities and advancing structural transformation and economic diversification.
  • Preparation of the National Productive Capacities Gap Assessment
  • Preparation of the Holistic Productive Capacities Development Programme
  • Validation workshop of the National Productive Capacities Gap Assessment
  • Validation workshop of the Holistic Productive Capacities Development Programme
  • Donor roundtable and consultations on the implementation of the Holistic Programme.

Intended Outcomes

  • A completed and Government approved National Productive Capacities Gap Assessment
  • A completed and Government approved Holistic Productive Capacities Development Programme (Holistic Programme)
  • Policymakers and other stakeholders of the development process capacitated in the mainstreaming of productive capacities and the utilization of the PCI
  • An understanding of the donor community of the financial resources required for the implementation of the Holistic Programme.

Link to the SDGs

  • Goal 8: Decent work and economic growth
  • Goal 9: Industry, innovation, infrastructure