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African Economies

DRC Projects Investing $65.3 Million in Digital Industry in 2024-2026

DRC Projects Investing $65.3 Million in Digital Industry in 2024-2026

The Democratic Republic of Congo (DRC) plans to allocate $65.3 million (186.8 billion Congolese francs) to the digital sector in line with its 2024-2026 Public Investment Program (PIP). According to Congolese authorities, the funds will focus on boosting connectivity and digital inclusion.

The country’s telecom watchdog, ARPTC, explained that the government wants to extend its fiber optic network from 8,160 km now to 50,000 km. This would enable the Congolese people to have greater access to high-speed internet, and consequently bolster the digital economy and trade.

The government, the ARPTC also noted, will boost digital inclusion by focusing on services, content, and regulations. 

According to the United Nations E-Government Index 2024 (EGDI), the DRC ranks 179th out of 193 countries and 44th in Africa, dropping four places since 2022. With a score of 0.2715 out of 1, it is far behind Denmark (0.9847) and South Africa (0.8616). In Central Africa, it ranks above Chad and the Central African Republic but below Gabon, which leads the region with a score of 0.5741.

The digital industry is slowly developing in the DRC, primarily driven by the private sector in areas like services, training, and startup support. While human capital in this sector is limited, there have been improvements since 2018 with the rise of internationally recognized digital leaders.

The governance and regulatory framework also needs enhancement to support a strong digital economy. In 2022, the DRC adopted a law supporting startups and is working with the International Monetary Fund to create a more attractive business environment for investors, both local and foreign. 

The digital industry is one of the focus of the 2024-2026 public investment program (PIP), in line with the DRC’s ambition for economic diversification. This initiative marks a return to development efforts that were interrupted in 1991 due to a breakdown in international cooperation and economic decline.

Successful investments in the DRC’s digital industry could yield major benefits across various sectors, including e-commerce, tax collection, logistics, and transport. The Global System Operators Association (GSMA) notes that countries adopting digitized public services typically see an increase in direct tax revenues by 1.2% to 1.3% of GDP. These improvements could enhance long-term economic growth prospects for the DRC while fostering inclusive development.

Muriel Edjo

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