Economy of The Democratic Republic of The Congo

Economy Of The Democratic Republic Of The Congo

Sparsely populated in relation to its area, the Democratic Republic of the Congo (DRC) is home to a vast potential of natural resources and mineral wealth, its untapped deposits of raw minerals are estimated to be worth in excess of US$ 24 trillion, yet the economy of the DRC has declined drastically since the mid-1980s. At the time of its independence in 1960, DRC was the second most industrialized country in Africa after South Africa; it boasted a thriving mining sector and its agriculture sector was relatively productive. The two recent conflicts (the First and Second Congo Wars), which began in 1996, have dramatically reduced national output and government revenue, have increased external debt, and have resulted in deaths of more than five million people from war, and associated famine and disease. Malnutrition affects approximately two thirds of the country's population.

Agriculture is the mainstay of the economy, accounting for 57.9% of GDP in 1997. In 1996, agriculture employed 66% of the work force.

Rich in minerals, the DRC has a difficult history of predatory mineral extraction, which has been at the heart of many struggles within the country for many decades, but particularly in the 1990s. The economy of the second largest country in Africa relies heavily on mining. However, much economic activity occurs in the informal sector and is not reflected in GDP data.

In 2006 Transparency International ranked the Democratic Republic of the Congo 156 out of 163 countries in the Corruption Perception Index, tying Bangladesh, Chad, and Sudan with a 2.0 rating. President Joseph Kabila established the Commission of Repression of Economic Crimes upon his ascension to power in 2001.