Page 27 - Nile Explorer Issue 12

IMF to lend to low-income countries. DRC:
reserves and increase capacity of the

The proposal which is expected to be
discussed during the spring meetings Political crisis, as Tshisekedi
of the IMF/ World Bank in 2021
requires votes – at least 85 per cent –
by IMF member states. Africa’s current and Kabila fall out
shareholding of the IMF is about seven
percent.
Of particular importance is a decision by
the United States, the largest shareholder
of the IMF with 16.51 percent of the
votes. Under the Trump administration,
the US made reservations delaying the
decision.
Now, with the exit of President Donald
Trump, there is optimism that the Biden
administration may give a new lease on
life to countries currently choking on
debt that is complicating efforts to deal
with the pandemic.
Despite ongoing efforts under the G-20’s
Debt Service Suspension Initiative
(DSSI), which is targeting to raise $26
billion in 2020/2021, progress has been
slow with approximately $4 billion President, Félix Antoine Tshisekedi Tshilombo of DRC
raised, according to the AU special resident of the Democratic Republic Kabila’s political platform, the Front
envoy. Pof Congo (DRC) December 6, Commun pour le Congo (FCC) has
With Zambia’s recent default on debt announced the dissolution of the 350 MPs, whereas the Cap pour le
repayment and global concern over National Assembly, so far held by the Changement (CACH) coalition - which
pandemic-related economic impacts, the camp of former President Joseph Kabila. is made up of Tshisekedi’s Union pour
“I have decided to appoint an informer to
G20 meeting in Riyadh wrapped up in identify a new parliamentary majority as la Démocratie et le Progrès Social and
December, with a commitment through the current one has collapsed,” President Vital Kamerhe’s Union National pour le
Congo - has just 46 seats.
June for the Debt Service Suspension Felix Tshisekedi said in a message to the The fight now seems to target the control
Initiative (DSSI) to allow developing nation, after more than two weeks of of the possible outcome of elections,
nations to defer debt payments. political consultations at the presidential the main battlegrounds being the
Some 46 of the world’s poorest countries palace. constitutional court and the independent
have taken advantage of debt suspension, He said the coalition with the Kabila electoral commission.
camp “did not allow me to set up what I
says the International Monetary Fund, was elected for.” It is not a great surprise then that
with the G20 declaration confirming a Tshisekedi came to power in January Tshisekedi’s decision to appoint three
total US$5.7 billion of 2020 debt service 2019 and signed a secret coalition new judges to the constitutional court
deferral so far. The IMF has warned of agreement with his predecessor Kabila, has been the tipping point in the
relationship, which now appears on the
a finance gap for African nations alone who kept the majority in parliament. brink of a very acrimonious divorce.
that’s estimated at $345 billion through The pro-Kabila Common Front for the The constitutional court has been an
2023. Congo (FCC) had earlier said it would important ally of Kabila’s for many years.
hang on to its secret deal with the
The agreement marks a major step for president. The FCC is pushing back hard. In the last
China; a top creditor to poor countries Tshisekedi said: “It is necessary to put few weeks, Kabila has written to the heads
that officials say has resisted attempts to an end to the coalition agreement ... and of the African Union and the United
write off debts. dissolve the National Assembly.” Nations, and has dispatched his loyalists
Over the past two decades, China has The political crisis in the DRC to South Africa, Egypt and Kenya,
among other countries, in an attempt to
between the two allies worsened when
financed projects in developing nations, Tshisekedi appointed new judges to the convince foreign governments that what
including as part of its Belt and Road Constitutional Court last July and made Tshisekedi is doing is a violation of their
Initiative to build infrastructure to new appointments in the army and the political agreement and goes beyond the
further expand trade. judiciary. bounds of his presidential powers.

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