Congo-Brazzaville returns to global stock markets after almost 20 years

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The Republic of the Congo this week entered the international bond market for the first time since 2007, signalling a new confidence in its economic reforms and fiscal management.

After 20 years on the sidelines, Congo-Brazzaville has returned to the international financial stage.

On Wednesday, the country issued its first Eurobond (a debt security issued in a currency different from the issuer’s home currency and sold in a foreign market) since 2007 – a $670-million placement on the main market of the London Stock Exchange.

In plain terms, Brazzaville raised the funds to cover maturing debt and ease pressure on public finances.

But the move also acts as a signal that the country’s economic policy is regaining credibility, and years of financial reform may finally be paying off.

Christian Yoka, the Republic of Congo’s finance minister, hailed the return as proof that Brazzaville’s financial house is once again in order.

“We’ve restored budgetary stability, our accounts are solid,” he said. “Our goal is to turn the economic recovery we’re seeing into financial recognition. This reform effort will continue – it’s absolutely central to our strategy for the future.”

The fact that investors beyond the Central African region were willing to buy Congolese debt again is being read as a vote of confidence.

After years of oil-price shocks, recession and restructuring supervised by the International Monetary Fund (IMF), it appears Congo’s fiscal reputation is being slowly repaired. The economy has returned to growth, and there is cautious optimism that better days lie ahead.

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From promises to progress

Brice Mackosso, secretary-general of the Justice and Peace Commission in Pointe-Noire, acknowledged the progress made but warned that transparency must keep pace with it.

“There are still bottlenecks,” he explained. “We need clarity on the real owners of companies operating in the extractive sector. Credibility doesn’t just mean pleasing international markets – it also means being accountable to Congolese citizens who want to understand how the country is being managed.”

The government has pledged to publish a quarterly bulletin of public debt statistics – a move intended to keep both investors and the public informed.

This renewed emphasis on transparency marks a notable shift from just a few years ago. Back in 2021, Congo-Brazzaville was under close scrutiny from the IMF, which demanded stronger public finance controls as a condition for its support.

In response, Brazzaville created the National Commission for Transparency and Accountability in Public Finance (CNTR), tasked with ensuring that the country’s finances complied with the IMF’s Fiscal Transparency Code.

However, the CNTR lacked enforcement powers. Its reports went to the justice minister, who alone could decide whether to sanction any wrongdoing.

Critics, including Mackosso, feared the commission was toothless.

“We don’t understand why the government placed it under the Justice Ministry,” he complained at the time. “It’s not the ministry that manages public money – that should fall under the Finance Ministry if it’s to work effectively.”

There were other concerns too – the commission had no female members, and its work was hampered at the start by a lack of funding.

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Challenges remain

Four years on, Congo-Brazzaville’s financial landscape looks rather different. The country’s accounts have stabilised, and reforms once confined to paper are gradually being implemented.

Issuing a bond on the London Stock Exchange would have been unthinkable in 2021. Now, it is being presented as proof of the government’s fiscal discipline.

However, the underlying challenges for the country have not vanished. Transparency in the extractive industries – which remain the backbone of Congo’s economy – and the management of public debt continue to draw scrutiny.

For international investors, the question is whether the current reforms are deep and lasting. For Congolese citizens, it is whether they will finally see tangible benefits from the promised accountability.

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This article has been adapted from the original version in French.