DEMOCRATIC REPUBLIC OF CONGO - Financial Sector Development and Financial Inclusion Support Project in DRC (PADSFI)


Project Summary

Approval Date 01 Dec 2022
Planned Completion Date 31 Dec 2026
Last Disbursement Planned Date 31 Dec 2026
Sovereign / Non-Sovereign Sovereign
Sector Finance
DAC Sector Code 24030
Commitment U.A 9,410,000
Status Approved

Project General Description

PADSFI is an institutional support of UA 9.41 million (USD 12.04 million) to the Democratic Republic of Congo from ADF 15 resources. It aims to support financial sector development and financial inclusion. It is aligned with the Economic Recovery Support Project (PAREC) and the Domestic Resource Mobilisation and Public Finance Modernisation Support Project (PAMRIM-FP), whose intervention areas are intrinsically linked to the objectives of this project, particularly as regards support for resource mobilisation and improved access to financial services for vulnerable people. The Bank's intervention will achieve the following five (5) project outcomes: (i) mobilisation of long-term resources (including green finance) by broadening the investor base and revising the regulatory frameworks; (ii) improved access of more than 25 million vulnerable populations (women, young people, rural populations, and MSMEs) to basic and adapted financial services, through increased interoperability of digital financial services, due to the effective participation of at least twenty financial service providers in the national switch by 2026 compared to 7 only today; (iii) stability of the financial sector through operationalisation of the central payment incidents centre and the Financial Services Quality Observatory (OQSF); (iv) availability of disaggregated data on financial inclusion (gender, sector, rural/urban area etc); and (v) capacity building for DRC's financial services ecosystem stakeholders (i.e. 80 microfinance institutions, 60 cooperatives, 4 e-money issuers, 14 commercial banks, 2 non-bank financial institutions and the BCC).

Project Objectives

The Bank's intervention, through PADSFI, is justified by the need to support DRC in modernising its financial system and creating structural conditions for strong, sustainable, and inclusive economic growth. At the national level, achieving this objective requires deepening the financial sector and broadening the investor base, as well as strengthening financial inclusion, especially for women, young people, MSMEs, and rural populations. Specifically, and under a concerted and holistic approach, achieving the targeted objective requires the involvement of all stakeholders in the financial services ecosystem.

Beneficiaries

PADSFI is a nationwide project, hence, its activities are expected to cover all DRC regions. The project beneficiaries include both public and private sector actors. The direct beneficiaries are the DRC Government, through the Central Bank of Congo (BCC) whose technical and operational capacities will be strengthened by the implementation of project activities, and the Ministry of Finance through the Public Securities Market Committee (CTPDI) comprising the Departments of the Budget, Treasury, and Public Debt, as well as local actors in charge of supervising the financial sector who will benefit from capacity building programmes. The target groups are banks, MFIs, non-bank financial institutions, insurance companies, and asset managers who will benefit from the project through the activities that will be carried out at the level of the BCC and the Ministry of Finance. Ultimately, the project will benefit the entire DRC population, particularly women, MSMEs, young people, and local populations through improved access to financial services and enhanced protection of their rights and personal data.

Participating Organization

Funding
African Development Fund

Information

IATI identifier 46002-P-CD-H00-002
Last Update 28 Jan 2023

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Contact Details

Name RAJHI Hachem
Email h.rajhi@afdb.org

Geographic Location

Country Congo, the Democratic Republic of the