The Democratic Republic of Congo (DRC) received a positive review from the International Monetary Fund (IMF) on Wednesday in a crucial step toward completing its first-ever IMF loan program.

Following the completion of the sixth and final review in the Congolese capital, Kinshasa, IMF staff are set to recommend to the executive board the approval of the last disbursement of Congo’s three-year $1.5 billion extended credit facility.

This development positions Congo on the brink of achieving a milestone in its financial history.

Despite facing fiscal pressures exacerbated by ongoing conflict in the eastern regions and the recent elections in December 2023, the IMF lauded Congo’s overall performance as “generally positive”.

The country’s economy heavily relies on mineral exports, particularly copper and cobalt, essential components in electric vehicle batteries.

According to the IMF, Congo’s economy exhibited robust growth, expanding by 8.3% last year, fueled largely by its ascent to become the world’s second-largest copper producer.

However, persistent insecurity in eastern Congo, attributed to the activities of over 100 armed groups vying for control over resources and political representation, has hindered the nation’s economic progress.

The positive assessment by the IMF underscores Congo’s achievements in enhancing its economic fundamentals, including an increase in reserves, which reached $5.5 billion by the end of 2023, equivalent to approximately two months of imports.

Despite these gains, challenges remain, with high inflation rates hovering around 24% at the close of last year.

The IMF emphasized the necessity of enacting a new budget law following the renegotiation of a minerals-for-infrastructure contract with China. Under the revised terms, Congo is slated to receive $324 million annually in development financing backed by revenue from a copper and cobalt joint venture.

Looking ahead, the IMF’s executive board is anticipated to deliberate on the staff recommendation in July. If approved, the disbursement of approximately $200 million will fortify Congo’s international reserves, providing a crucial buffer against economic volatility.

Also, Congo’s government intends to seek a new Extended Credit Facility (ECF) from the IMF, signaling its commitment to ongoing economic reforms and sustainable growth.

The IMF’s endorsement represents a significant validation of Congo’s economic trajectory and underscores the nation’s efforts to navigate complex challenges while advancing towards financial stability and prosperity.

Ghana’s Supreme Court is set to commence hearings on a case that threatens the country’s $20 billion debt restructuring deal while simultaneously testing the World Bank’s commitment to LGBTQ rights support.

At the heart of the legal battle is a challenge to legislation that seeks to criminalize LGBTQ identities in Ghana.

The contentious law not only proposes severe penalties for individuals identifying as LGBTQ but also threatens punishment for those who fail to report individuals to the authorities, including family members, co-workers, and teachers.

If the Supreme Court upholds the legislation, Ghana risks not only perpetuating discrimination but also jeopardizing crucial financial support from international institutions, including the World Bank.

The implications extend beyond Ghana’s borders, potentially setting a precedent for how the World Bank engages with issues of LGBTQ rights and human rights more broadly across the globe.

The stakes are high for Ghana’s economy, which has been grappling with a heavy debt burden. The leaked memo from the finance ministry in April warned that endorsing the legislation could endanger approximately $3.8 billion of World Bank funding over the next five to six years.

Furthermore, it could derail a $3 billion bailout program from the International Monetary Fund (IMF) and hamper efforts to restructure the country’s $20 billion of external liabilities.

The legal challenge comes amidst a broader debate about the balance between national sovereignty, international lending standards, and human rights. The World Bank, a significant source of development finance for Ghana, finds itself caught in a delicate position.

While it has historically emphasized non-discrimination and social standards in its lending practices, it also faces pressure to respect the sovereignty of the countries it engages with.

Ghana’s debt restructuring and economic recovery efforts hinge on continued support from international financial institutions like the World Bank and the IMF.

However, the outcome of the Supreme Court case could complicate these efforts, potentially leading to a withdrawal of financial assistance and further economic instability.

The situation underscores the complexities of navigating the intersection of economic development, human rights, and national sovereignty.

As Ghana’s Supreme Court prepares to hear arguments on the LGBTQ legislation, the outcome of the case remains uncertain, leaving both advocates for LGBTQ rights and supporters of Ghana’s debt restructuring deal anxiously awaiting a decision that could shape the country’s future trajectory.

Amidst the backdrop of mounting concerns over Africa’s ballooning external debt, Akinwumi Adesina, the President of the African Development Bank (AfDB), has emphatically called for greater debt transparency to protect the continent’s economic growth trajectory.

In his address at the Semafor Africa Summit, held alongside the International Monetary Fund and World Bank 2024 Spring Meetings, Adesina highlighted the detrimental impact of non-transparent resource-backed loans on African economies.

He stressed that such loans not only complicate debt resolution but also jeopardize countries’ future growth prospects.

Adesina explained the urgent need for accountability and transparency in debt management, citing the continent’s debt burden of $824 billion as of 2021.

With countries dedicating a significant portion of their GDP to servicing these obligations, Adesina warned that the current trajectory could hinder Africa’s development efforts.

One of the key concerns raised by Adesina was the shift from concessional financing to more expensive and short-term commercial debt, particularly Eurobonds, which now constitute a substantial portion of Africa’s total debt.

He criticized the prevailing ‘Africa premium’ that raises borrowing costs for African countries despite their lower default rates compared to other regions.

Adesina called for a paradigm shift in the perception of risk associated with African investments, advocating for a more nuanced approach that reflects the continent’s economic potential.

He stated the importance of an orderly and predictable debt resolution framework, called for the expedited implementation of the G20 Common Framework.

The AfDB President also outlined various initiatives and instruments employed by the bank to mitigate risks and attract institutional investors, including partial credit guarantees and synthetic securitization.

He expressed optimism about Africa’s renewable energy sector and highlighted the Africa Investment Forum as a catalyst for large-scale investments in critical sectors.