Congo gets AfDB $602,000 grant to rebase GDP, curb debt ratio

The Republic of Congo has secured a $602,000 grant from the African Development Bank (AfDB) to overhaul its national accounts, a move expected to significantly revise its gross domestic product (GDP) and reduce its closely watched debt-to-GDP ratio.

The financing will enable the central African oil producer to update the base year for its economic data to a more current one in 2008, replacing the outdated 2005. The overhaul aims to better capture the contribution of fast-growing sectors like digital services and telecommunications, as well as the country’s large informal economy.

A significant upward revision of nominal GDP is widely expected, which would mechanically reduce the country’s debt and deficit ratios. The accord was signed on Aug. 4 in the capital, Brazzaville. Its West African counterpart, Nigeria, recently rebased its GDP nearly a month ago, joining a continental trend of countries seeking debt improvement and economic upheaval.

“This project aims to ensure that Congo’s GDP reflects its true value,” Economy Minister Ludovic Ngatse said in a statement. “The debt ratio may fall significantly, and some macroeconomic indicators will improve, enhancing our country’s transparency and credibility.”

More accurate economic indicators could improve Congo’s risk profile on international financial markets, potentially giving it access to financing on more favourable terms. The rebasing exercise is part of an 18-month project funded by the AfDB’s Middle-Income Countries Technical Assistance Fund.

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“Credible economic data is essential for steering and implementing effective public policies,” said Leandre Bassole, the AfDB’s Director General for Central Africa. The new data will “strengthen economic governance, improve the country’s visibility on markets, and enable better integration of sustainability and environmental criteria into wealth measurement.”

The project will align the country with the 2008 System of National Accounts (SNA), the international standard for economic statistics. It also serves as a preparatory step for the eventual transition to the new SNA 2025 framework, which incorporates measures for environmental goods and services—a critical factor for the resource-rich nation.