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Democratic Republic of the Congo vs. Uganda

Economy

Democratic Republic of the CongoUganda
Economy - overview

The economy of the Democratic Republic of the Congo - a nation endowed with vast natural resource wealth - continues to perform poorly. Systemic corruption since independence in 1960, combined with countrywide instability and intermittent conflict that began in the early-90s, has reduced national output and government revenue, and increased external debt. With the installation of a transitional government in 2003 after peace accords, economic conditions slowly began to improve as the government reopened relations with international financial institutions and international donors, and President KABILA began implementing reforms. Progress on implementing substantive economic reforms remains slow because of political instability, bureaucratic inefficiency, corruption, and patronage, which also dampen international investment prospects.

Renewed activity in the mining sector, the source of most export income, boosted Kinshasa's fiscal position and GDP growth until 2015, but low commodity prices have led to slower growth, volatile inflation, currency depreciation, and a growing fiscal deficit. An uncertain legal framework, corruption, and a lack of transparency in government policy are long-term problems for the large mining sector and for the economy as a whole. Much economic activity still occurs in the informal sector and is not reflected in GDP data.

Poverty remains widespread in DRC, and the country failed to meet any Millennium Development Goals by 2015. DRC also concluded its program with the IMF in 2015. The price of copper - the DRC's primary export - plummeted in 2015 and remained at record lows during 2016-17, reducing government revenues, expenditures, and foreign exchange reserves, while inflation reached nearly 50% in mid-2017 - its highest level since the early 2000s.

Uganda has substantial natural resources, including fertile soils, regular rainfall, substantial reserves of recoverable oil, and small deposits of copper, gold, and other minerals. Agriculture is one of the most important sectors of the economy, employing 72% of the work force. The country's export market suffered a major slump following the outbreak of conflict in South Sudan, but has recovered lately, largely due to record coffee harvests, which account for 16% of exports, and increasing gold exports, which account for 10% of exports. Uganda has a small industrial sector that is dependent on imported inputs such as refined oil and heavy equipment. Overall, productivity is hampered by a number of supply-side constraints, including insufficient infrastructure, lack of modern technology in agriculture, and corruption.

Uganda's economic growth has slowed since 2016 as government spending and public debt has grown. Uganda's budget is dominated by energy and road infrastructure spending, while Uganda relies on donor support for long-term drivers of growth, including agriculture, health, and education. The largest infrastructure projects are externally financed through concessional loans, but at inflated costs. As a result, debt servicing for these loans is expected to rise.

Oil revenues and taxes are expected to become a larger source of government funding as oil production starts in the next three to 10 years. Over the next three to five years, foreign investors are planning to invest $9 billion in production facilities projects, $4 billion in an export pipeline, as well as in a $2-3 billion refinery to produce petroleum products for the domestic and East African Community markets. Furthermore, the government is looking to build several hundred million dollars' worth of highway projects to the oil region.

Uganda faces many economic challenges. Instability in South Sudan has led to a sharp increase in Sudanese refugees and is disrupting Uganda's main export market. Additional economic risks include: poor economic management, endemic corruption, and the government's failure to invest adequately in the health, education, and economic opportunities for a burgeoning young population. Uganda has one of the lowest electrification rates in Africa - only 22% of Ugandans have access to electricity, dropping to 10% in rural areas.

GDP (purchasing power parity)$95.291 billion (2019 est.)

$91.289 billion (2018 est.)

$86.267 billion (2017 est.)

note: data are in 2010 dollars
$96.838 billion (2019 est.)

$90.669 billion (2018 est.)

$85.406 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate3.4% (2017 est.)

2.4% (2016 est.)

6.9% (2015 est.)
4.8% (2017 est.)

2.3% (2016 est.)

5.7% (2015 est.)
GDP - per capita (PPP)$1,098 (2019 est.)

$1,086 (2018 est.)

$1,060 (2017 est.)

note: data are in 2010 dollars
$2,187 (2019 est.)

$2,122 (2018 est.)

$2,075 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 19.7% (2017 est.)

industry: 43.6% (2017 est.)

services: 36.7% (2017 est.)
agriculture: 28.2% (2017 est.)

industry: 21.1% (2017 est.)

services: 50.7% (2017 est.)
Population below poverty line63% (2014 est.)21.4% (2016 est.)
Household income or consumption by percentage sharelowest 10%: 2.3%

highest 10%: 34.7% (2006)
lowest 10%: 2.4%

highest 10%: 36.1% (2009 est.)
Inflation rate (consumer prices)41.5% (2017 est.)

18.2% (2016 est.)
2.8% (2019 est.)

2.6% (2018 est.)

5.6% (2017 est.)
Labor force20.692 million (2012 est.)15.84 million (2015 est.)
Labor force - by occupationagriculture: NA

industry: NA

services: NA
agriculture: 71%

industry: 7%

services: 22% (2013 est.)
Unemployment rate

NA

9.4% (2014 est.)
Distribution of family income - Gini index42.1 (2012 est.)42.8 (2016 est.)

45.7 (2002)
Budgetrevenues: 4.634 billion (2017 est.)

expenditures: 5.009 billion (2017 est.)
revenues: 3.848 billion (2017 est.)

expenditures: 4.928 billion (2017 est.)
Industriesmining (copper, cobalt, gold, diamonds, coltan, zinc, tin, tungsten), mineral processing, consumer products (textiles, plastics, footwear, cigarettes), metal products, processed foods and beverages, timber, cement, commercial ship repairsugar processing, brewing, tobacco, cotton textiles; cement, steel production
Industrial production growth rate1.6% (2017 est.)4.4% (2017 est.)
Agriculture - productscassava, plantains, sugar cane, maize, oil palm fruit, rice, roots/tubers nes, bananas, sweet potatoes, groundnutssugar cane, plantains, cassava, maize, sweet potatoes, milk, vegetables, beans, bananas, sorghum
Exports$21.16 billion (2019 est.)

$20.859 billion (2018 est.)

$18.258 billion (2017 est.)
$7.686 billion (2019 est.)

$6.511 billion (2018 est.)

$5.958 billion (2017 est.)
Exports - commoditiescopper, cobalt, crude petroleum, diamonds (2019)gold, coffee, milk, fish and fish products, tobacco (2019)
Exports - partnersChina 53%, United Arab Emirates 11%, Saudi Arabia 6%, South Korea 5% (2019)United Arab Emirates 58%, Kenya 9% (2019)
Imports$19.5 billion (2019 est.)

$21.302 billion (2018 est.)

$20.338 billion (2017 est.)
$9.991 billion (2019 est.)

$8.006 billion (2018 est.)

$7.44 billion (2017 est.)
Imports - commoditiespackaged medicines, refined petroleum, sulfuric acid, stone processing machines, delivery trucks (2019)packaged medicines, aircraft, delivery trucks, cars, wheat (2019)
Imports - partnersChina 29%, South Africa 15%, Zambia 12%, Rwanda 5%, Belgium 5%, India 5% (2019)China 19%, India 17%, Kenya 16%, United Arab Emirates 7%, Japan 5% (2019)
Debt - external$4.963 billion (31 December 2017 est.)

$5.35 billion (31 December 2016 est.)
$13.85 billion (2019 est.)

$12.187 billion (2018 est.)

$6.241 billion (31 December 2016 est.)
Exchange ratesCongolese francs (CDF) per US dollar -

1,546.8 (2017 est.)

1,010.3 (2016 est.)

1,010.3 (2015 est.)

925.99 (2014 est.)

925.23 (2013 est.)
Ugandan shillings (UGX) per US dollar -

3,680 (2020 est.)

3,685 (2019 est.)

3,735 (2018 est.)

3,234.1 (2014 est.)

2,599.8 (2013 est.)
Fiscal yearcalendar year1 July - 30 June
Public debt18.1% of GDP (2017 est.)

19.3% of GDP (2016 est.)
40% of GDP (2017 est.)

37.4% of GDP (2016 est.)
Reserves of foreign exchange and gold$457.5 million (31 December 2017 est.)

$708.2 million (31 December 2016 est.)
$3.654 billion (31 December 2017 est.)

$3.034 billion (31 December 2016 est.)

note: excludes gold
Current Account Balance-$200 million (2017 est.)

-$1.215 billion (2016 est.)
-$1.212 billion (2017 est.)

-$707 million (2016 est.)
GDP (official exchange rate)$47.16 billion (2019 est.)$34.683 billion (2019 est.)
Credit ratingsMoody's rating: Caa1 (2019)

Standard & Poors rating: CCC+ (2017)
Fitch rating: B+ (2015)

Moody's rating: B2 (2016)

Standard & Poors rating: B (2014)
Ease of Doing Business Index scoresOverall score: 36.2 (2020)

Starting a Business score: 91.6 (2020)

Trading score: 3.5 (2020)

Enforcement score: 33.3 (2020)
Overall score: 60 (2020)

Starting a Business score: 71.4 (2020)

Trading score: 66.7 (2020)

Enforcement score: 60.6 (2020)
Taxes and other revenues11.2% (of GDP) (2017 est.)14.5% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-0.9% (of GDP) (2017 est.)-4.1% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 8.7%

male: 11.3%

female: 6.8% (2012 est.)
total: 14.8%

male: 12.7%

female: 17.3% (2017 est.)
GDP - composition, by end usehousehold consumption: 78.5% (2017 est.)

government consumption: 12.7% (2017 est.)

investment in fixed capital: 15.9% (2017 est.)

investment in inventories: 0% (2017 est.)

exports of goods and services: 25.7% (2017 est.)

imports of goods and services: -32.8% (2017 est.)
household consumption: 74.3% (2017 est.)

government consumption: 8% (2017 est.)

investment in fixed capital: 23.9% (2017 est.)

investment in inventories: 0.3% (2017 est.)

exports of goods and services: 18.8% (2017 est.)

imports of goods and services: -25.1% (2017 est.)
Gross national saving21.3% of GDP (2019 est.)

18.3% of GDP (2018 est.)

21.6% of GDP (2017 est.)
22.2% of GDP (2019 est.)

21.3% of GDP (2018 est.)

23.6% of GDP (2017 est.)

Source: CIA Factbook