Economic Growth

OVERVIEW

The macroeconomic environment in the Democratic Republic of the Congo (DRC) has improved markedly in recent years, yet the lives of most Congolese have not. According to the IMF, from 2010-2015 real GDP growth averaged 7.3 percent, well above the Sub-Saharan African average of 4.6 percent. Nonetheless, according to the 2015 Human Development Index, the DRC ranks among the poorest countries in the world (176 out of 187 countries ranked), with one of the highest rates of extreme poverty rate in the world. Child malnutrition is widespread, and most of the population lives in conditions of moderate to serious food insecurity. 

USAID invests in key aspects of the Congolese economy—agriculture, minerals and energy—to promote inclusive economic growth that reduces poverty and enhances food security. According to the International Fund for Agriculture Development, about 70 percent of the employed population is engaged in agriculture, mostly for subsistence; however, only about 10 million of the country's 80 million hectares of arable land are under cultivation. Increasing the amount of land under cultivation has enormous potential to increase food security and sustainable, equitable economic development. Illegal mining is used by armed groups to finance their activities and such production also reduces legitimate tax revenue for the government. Although the country’s hydropower resources are sufficient to meet the electricity needs of the entire African continent, the DRC lacks the governance and institutional capacity to utilize this potential to meet even its own energy needs. According to the World Bank, only 18 percent of the Congolese population has access to electricity.

PROGRAMS

The DRC is a Feed the Future (FTF) aligned country. USAID’s agriculture assistance focuses on livelihoods development and improving household income so that poor communities are more stable and resilient, and are better able to participate in the market. USAID’s agriculture activities also support women’s empowerment, as women make up a significant proportion of Congolese farmers, have the greatest control over family nutrition, and tend to be among the poorest.

USAID’s Food for Peace (FFP) development activities reduce the food insecurity of vulnerable households. They improve natural resource management and agricultural production techniques, increase agricultural production and incomes, and promote farmers’ integration with the market. FFP activities also improve water and sanitation, promote good health and nutrition practices, and reduce the stunting of children.

In eastern DRC, where economic growth can contribute to establishing and sustaining a foundation for durable peace, USAID is maximizing the impact of developing agriculture and economic opportunities by coordinating implementation of agriculture development, food security, and improved nutritional uptake activities.  

Under USAID’s Country Development Cooperation Strategy (CDCS), FTF value chain development activities, FFP agricultural development activities, and health nutrition activities are co-located and work together to promote increased participation of small-holder farmers in agricultural market opportunities and improved nutrition.

Through its Responsible Minerals Trade (RMT) portfolio, USAID is developing and piloting traceability systems to promote the legal exploitation and sale of tin, tungsten, tantalum, and gold in international markets. RMT programs increase the proportion of minerals mined and exported legally from the DRC compared to those exported illegally and informally, while establishing sustainable legal incomes for thousands of artisanal miners. (See the Responsible Minerals Trade fact sheet for more information).

USAID’s energy activities promote and implement high-level institutional reforms to improve governance and capacity throughout the power sector. USAID supports the implementation of the new national Law on Electricity and the Congolese government’s efforts to establish a new Regulatory Authority and a Rural Electrification Agency. By improving the enabling environment of the power sector, USAID-funded activities promote both domestic and foreign investment in electricity.

SELECT 2015 ACCOMPLISHMENTS

  • More than 137,000 individuals trained on improved agricultural techniques, such as soil and water conservation, production and application of compost, and pest and disease management.
  • 191 tons of coffee produced and sold at a gross value of $700,000, quadrupling 2014 production and benefiting 4,300 households.
  • 67,581 women and men trained in maternal and child health and nutritional practices.
  • 648 Village Savings and Loan Associations created and/or supported.
  • 167 kilometers of feeder roads rehabilitated to connect farmers to markets.
  • 140 mine sites validated as conflict-free.

SELECT ACTIVITIES

Democratic Republic of Congo (DRC) Power Sector Reform (PSR) Project,

ECODIT

Responsible Minerals Trade: Infrastructure and Regulatory Reform

International Organization for Migration (IOM)

Capacity Building for Responsible Minerals Trade

Tetra Tech ARD, Inc.

Tuendelee Pamoja II Food Security Project

Food for the Hungry

Sustainable Enterprise in South Kivu, Eastern DRC (ASILI)

American Refugee Committee (ARC)

Kingabwa Rice Intensification Project (PIRK II)

Winrock International

USAID South Kivu Food Security Project

Mercy Corps

Africa Lead DRC Agriculture Policy Support Project

Development Alternatives, Inc. (DAI)