Kinshasa, August 3rd, 2025 (CPA). – The tax incentives have led to a revenue shortfall of around 5% of gross domestic product (GDP) in the Democratic Republic of the Congo (DRC), according to the latest World Bank report on the economic situation in DRC, consulted on Sunday by CPA. « The special section of the report examines tax incentives, focusing on their evolution and impact. Tax revenues in DRC represent 12.5% of GDP, compared to an average of 16% in sub-Saharan Africa. The tax incentives result in a revenue shortfall of around 5% of GDP, or one-third of total tax revenues or three times the health sector budget, while providing minimal benefits to vulnerable households, » it is read. The report, entitled ‘Reassessing tax incentives: the missed opportunity for growth and equity,’ highlights the high GDP growth rate of 6.5% achieved in 2024, supported by dynamic mining activities, particularly in copper and cobalt mining. Despite one of the highest growth rates in Africa, this figure remains slightly below the average of 7.9% recorded between 2021 and 2023.
Even with this strong growth, the report points out that significant poverty reduction and job creation remain limited. According to the source, the macroeconomic stability has been maintained through fiscal discipline and the absence of monetary financing of the deficit. Inflation, although still high, fell to 8.6% in June 2025. DRC’s development potential remains significant, with positive economic prospects. Furthermore, to address these challenges and mobilise more resources for growth, the report recommends simplifying fiscal policy, harmonising tax rates, replacing profit-based tax incentives with cost-based incentives, and improving the transparency and evaluation of these incentives, but also the rationalisation of tax incentives, which could improve the effectiveness of fiscal policies and pave the way for future tax rate cuts, while ensuring adequate resources for development and social spending. It should be noted that at the presentation of this report, Mr Albert Zeufack, World Bank Director of Operations for Angola, Burundi, the Democratic Republic of Congo (DRC) and Sao Tome and Principe, had explained that DRC has enormous economic potential. To achieve inclusive and sustainable growth, the country must increase its domestic revenues, rationalise tax incentives and invest in social services and infrastructure. CPA/Bakonga