DRC central bank chief André Wameso: ‘Confidence has

The Democratic Republic of Congo's monetary authority has entered a cautiously optimistic phase. Central Bank Governor André Wameso's recent declaration that "confidence has returned" marks a potential inflection point for the DRC franc and investor sentiment in Africa's largest cobalt producer. The statement, while brief, carries weight in a country where currency volatility and inflation have repeatedly tested foreign and domestic investor patience.

## Why has DRC currency confidence been shattered?

The DRC franc collapsed 45% against the US dollar in 2023–2024, driven by persistent fiscal deficits, external debt servicing pressures, and political uncertainty surrounding the disputed 2023 elections. The central bank's foreign exchange reserves fell to critical lows, limiting intervention capacity. This currency free-fall eroded purchasing power, spiked inflation above 50% at its peak, and made dollar-denominated debt repayment unsustainable. Mining companies operating in the DRC—which account for 95% of export revenue—faced severe margin compression despite elevated commodity prices.

Wameso's appointment in late 2024 signaled a shift toward orthodox monetary policy. Unlike his predecessor, he has emphasized transparent reserve management and coordination with the International Monetary Fund (IMF), which approved a $1.3 billion Extended Credit Facility in September 2024. This IMF anchor is critical: it signals to global investors that the DRC will pursue disciplined fiscal and monetary frameworks.

## What concrete steps back confidence into the franc?

Three mechanisms are at work. First, the central bank has tightened monetary policy aggressively, raising the policy rate to 22% to combat inflation and defend the currency. This makes dollar-denominated deposits less attractive relative to franc instruments, reducing capital flight. Second, mining revenue—particularly from Glencore, Ivanhoe, and state-owned enterprises—has improved due to higher copper and cobalt spot prices, bolstering forex inflows. Third, the IMF programme requires quarterly reviews; meeting these milestones signals fiscal discipline and attracts portfolio flows from emerging-market funds.

The franc has stabilized around 2,750–2,800 to the dollar in early 2025, a 12% appreciation from its 2024 low. While still weak by historical standards (it traded at 1,600 per dollar in 2020), this stability is a necessary foundation for business planning and foreign investment commitments.

## What risks could derail the recovery narrative?

Political fragmentation ahead of 2026 elections, supply-chain disruptions in mining, or a sharp copper price collapse would quickly reverse sentiment. Regional instability in eastern DRC—where militia activity disrupts mining operations—remains a structural wild card. Additionally, fiscal discipline is fragile; the government must resist pressure to monetize spending outside the IMF framework.

For investors, Wameso's signal is a green light to re-engage, but with hedged positions and shorter time horizons until 2026 clarity emerges. The DRC franc's recovery is real but conditional on sustained policy discipline and commodity price resilience.

---

#