Democratic Republic of the Congo

Economy:
The UN Humanitarian Coordinator in the Democratic Republic of Congo (DRC) recently declared it is suffering "the world's deadliest humanitarian catastrophe." The DRC has vast potential agricultural and mineral wealth but its per capita GDP is just $800. The economy imploded with the Congo Wars (1998-2002) that resulted in the deaths of 3.8 million people, half of them children, and have led to an estimated one million more deaths since in periodic upheavals of fighting, disease, starvation and malnutrition, and more. Some 1.1 million people live with HIV/AIDS, which has killed over 100,000. The infant mortality rate is 14 times that of the U.S.

The New York Times (March 28, 2007) said, "Congo is spread across more than 900,000 square miles, but it has only 300 miles of paved roads. The lack of infrastructure keeps the people poor. Kindu's farmers used to export bananas, wood, rice and peanuts. Now much of their land, among the most fertile in Africa, lies fallow because they cannot get crops to market. 'There's only so much you can carry on your head,' said the acting governor, Katharina Aziza Sadiki."

The IMF and World Bank have helped the transitional government develop a coherent economic plan to restore monetary stability and establish the financial system. Stability and security are increasing, inflation is down, and there is positive economic growth. The great challenge will be to manage the transition to a democratic government.

Climate for microfinance:
• With one of Africa's largest microenterprise populations, there is huge demand in the DRC for microcredit.
• Microfinance is an integral part of the very limited financial system
• The Banque Centrale du Congo supports an expanding microfinance sector; the legal and regulatory framework is positive.

FINCA DRC meets only a fraction of the demand for microfinance services in the country. It is in the process of transforming into a regulated microfinance company, legally authorized to accept deposits, in order to better support the economic and human development of Congolese families trapped in poverty.

FINCA DRC's primary focus of operations is in the Kinshasa area, with branches in Gombe and Massina. Plans call for expansion into Matadi and Lubumbashi and, long term, into Mbuji Mayi and Kananga.