Overview
The Democratic Republic of Congo (DRC) declared its first case of COVID-19 on March 10, 2020, and the virus continues to spread across the country with tens of thousands of confirmed cases and hundreds of deaths. During the first COVID-19 wave in March 2020, the government declared a state of emergency and imposed the confinement of the capital, Kinshasa, which included restrictions to travel between Kinshasa and the rest of the country and the prohibition of all gatherings of people in public spaces. Passenger flights from abroad were not allowed and border posts were closed to non-cargo shipments. Additional restrictions included the closure of all education centers, suspension of all religious and sporting events, and closure of bars and restaurants. In late June 2020, the government announced the deconfinement of the Gombe business district in Kinshasa and the gradual deconfinement of workers in mining sites. Entry restrictions in airports, ports and borders were also lifted. As a result of a second COVID-19 wave, the government announced new restrictions, effective December 18, 2020, such as the establishment of a curfew between 9 pm and 5 am, the obligation of wearing a mask, or compulsory COVID testing for domestic and external travelers. In 2020, the effects of the COVID-19 pandemic reduced real GDP growth, increased consumer prices (particularly of imported products), reduced fiscal revenues, and increased fiscal spending through the implementation of a COVID-19 response plan which included the opening of new COVID-19 test centers in Lubumbashi and other cities. A 9-month multi sectoral response plan against the pandemics (PMUAIC-19) was launched in June 2020, which included actions to strengthen the health system, stabilize the economy, and reinforce security and social protection.
Vaccination. In early March 2021, a first shipment of 1.7 million doses of the COVID-19 vaccine arrived at Kinshasa. This was part of the first wave of supplies sent to the country by COVAX, an alliance comprising the Coalition for Epidemic Preparedness Innovations (CEPI), Gavi (the Vaccine Alliance), UNICEF and the World Health Organization, that aims at equitable access to the COVID-19 vaccine. Medical authorities decided to use the Astra Zeneca vaccine because its convenient storage conditions, but fear of side effects and mistrust of the population have delayed the launch of the vaccination campaign. 1.3 million doses were sent to other countries to ensure usage before the expiry date. The goal of the first stage of the vaccination plan is to cover 20% of the population, including health workers, people aged over 55, and people suffering from serious health conditions. Financing of the deployment of the vaccine would be on grant or highly concessional terms.
COVID-19 Restrictions
Movement Restrictions:
- Is a curfew in place? Yes
- The curfew is from 10:00 pm to 4:00 am.
- Are there restrictions on intercity or interstate travel? No
- Domestic travelers age 11 and older are required to present a negative COVID-19 test for travel between the provinces when departing from Kinshasa, Lubumbashi, Bukavu, Goma, and Kisangani. Where possible, the test must be taken within 7 days of travel.
- Check with your airline about COVID-19 safety measures, testing requirements, and health requirements at your destination.
Transportation Options:
- Are commercial flights operating? Yes
- Is public transportation operating? Yes
- Masks are required in public, including on public transportation and at all airports.
Economic Measures
Key Policy Responses as of June 3, 2021
FISCAL
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A preparedness and response national plan to deal with the pandemic was designed with support from development partners and was coordinated by Dr. Jean-Jacques Muyembe. The plan mainly focused on actions to (i) strengthen early detection and surveillance and foster technical and operational coordination within the government; (ii) improve the quality of medical care to infected patients; and (iii) develop effective preventive communication strategies and enhance medical logistic platforms. The plan's budget was estimated at US$135 million (0.3 percent of GDP).
The following measures were approved the week of April 12, 2020, by the Prime Minister: i) a three-month VAT exemption on pharmaceutical products and basic goods, ii) suspension of tax audits for companies, iii) a grace period for businesses on tax arrears, iv) full tax deductibility of any donations made to the COVID relief fund. The week of April 19, 2020, an additional set of measures were adopted, namely: i) provision of water and electricity for a period of two months, free of charge, ii) prohibition to evict renters in case of no payment of financial obligations from March to June 2020, iii) suspension of VAT collection on the production and on the sales of basic goods.
In the context of sustained increases in inflation and exchange rate depreciation, on August 18, 2020, the central bank (BCC), the Ministry of Finance, and the Ministry of Budget formally signed a Stability Pact, which sets a number of policy and operational commitments by those institutions that would contribute to maintaining “macroeconomic stability, as a prerequisite for strong and sustained growth”.
In May 2021, the Ministry of Health created a website with detailed information on COVID-19 related spending, including detailed reports by spending category, individual procurement contracts with the names of the health suppliers, and other supporting documentation. During the last year, DRC has received financial support from the IMF and other donors that has been used to fight the pandemic.
MONETARY AND MACRO-FINANCIAL
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On March 24, 2020, the BCC announced several measures to ease liquidity conditions by: (i) reducing the policy rate by 150 bps to 7.5 percent; (ii) eliminating mandatory reserve requirements on demand deposits in local currency; and (iii) creating a new collateralized long-term funding facility for commercial banks of up to 24 months to support the provision of new credit for the import and production of food and other basic goods. The BCC also postponed the adoption of new minimum capital requirements and encouraged the restructuring of non-performing loans. In addition, the BCC announced measures to reduce contamination risks in bank notes and promote the use of e-payments.
In order to re-anchor inflation expectations and maintain a positive in real terms policy rate, on August 10, 2020, the BCC increased its policy rate to 18.5 percent, but it has been recently reverted to a level close to the rate before the pandemic, in line with subdued inflation expectations.
EXCHANGE RATE AND BALANCE OF PAYMENTS
Civic Freedom Tracker
STATE OF HEALTH EMERGENCY
The presidential decree institutes a one-month "state of health emergency," and a 30-day lockdown and curfew from 8 p.m. to 5 a.m. local time. (See primary source or citation here)
Type: order
Date Introduced: 31 Mar 2020
Issue(s): Emergency, Movement
