The Democratic Republic of Congo (DRC) faces what is probably the most daunting infrastructure challenge on the African continent. As a result of the conflict, networks have been seriously damaged or left to deteriorate, with about half of existing infrastructure assets in need of rehabilitation. Even before the conflict, the lack of basic infrastructure made it difficult to knit together the country’s disparate economic and population centers. The country’s vast geography, low population density, extensive forestlands, and crisscrossing rivers further complicate the development of infrastructure networks.
Since the return of peace, there have been promising signs. Notably, a privately funded global system for mobile communications (GSM) telephone network now provides a signal to two-thirds of the population at a reasonable cost. Significant external funding has been captured to rebuild the country’s tattered road network. And there has been an increase in domestic air routes served as well as a renewal of the aircraft fleet. The country is endowed with the largest hydropower resources in Africa, giving it the potential to not only meet its own energy demands very cost-effectively but to become the continent’s largest power exporter. Meanwhile, the country’s inland waterways can provide low-cost surface transport, with only relatively modest investments needed to improve navigability. But much still remains to be done.
One of the DRC’s most urgent infrastructure challenges is to increase the generation of power and deliver it in a more cost-effective manner. Close to half the existing plants require refurbishment, and capacity must increase by 35 percent over the next decade just to meet domestic demand. Providing reliable public supplies could reduce the (weighted average) price of power to the urban private sector from 23 cents to 4 cents per kilowatt-hour (kWh) and would bring social returns in excess of 100 percent. Another important part of the solution is to undertake operational and institutional reforms in the national power utility—Société National d’Electrcité (SNEL)—whose inefficiencies presently absorb as much as 4.7 percent of the gross domestic product (GDP).
Both road and rail infrastructure are in dilapidated condition, while the latter has also fallen into disuse. As the DRC embarks on a massive road investment program, an adequate financial and institutional basis will be essential to maintain the network going forward. Personnel issues loom large in transport and should not be overlooked, especially those involving the institutional and regulatory obstacles to efficient service.
To rebuild the country and catch up with the rest of the developing world, the DRC needs to spend $5.3 billion a year over the next decade, or 75 percent of the 2006 GDP. Of this total, as much as $1.1 billion a year needs to be devoted to maintenance alone. The DRC’s recent infrastructure spending of $700 million a year—even though it represents 10 percent of GDP—falls far below the level needed to make an impact over the next decade. Significant inefficiencies are wasting resources worth at least $430 million each year, but even if these problems were corrected, an infrastructure funding gap of the order of $4 billion a year would remain.
Judicious choice of infrastructure technologies and creative use of cross-border finance could, however, reduce the funding gap to $2 billion a year. In addition, the country has recently secured more than $4 billion in external finance commitments for infrastructure, and plans are underway to increase both central and provincial budget allocations for public investment. By combining new resources with an improved policy and institutional environment, it should be possible to make substantial progress in funding the deficit. One thing is for sure: business as usual is not a viable option. Without increasing spending or improving efficiency, the DRC would take more than a century to redress the country’s infrastructure deficit. This is clearly an unacceptable outcome, and underscores the urgency of action in this area.