Christian Yoka, the newly appointed Finance Minister of the Republic of Congo, has committed to reducing the country’s debt levels and easing the burden of debt servicing. In his first interview since taking office earlier this month, Yoka emphasized the need to address the challenges faced by the oil-dependent nation, which has been hit hard by geopolitical crises such as the COVID-19 pandemic and the war in Ukraine.
Yoka’s primary goal is to reduce the country’s debt-to-GDP ratio, which currently stands at a high 96%. He aims to lower this ratio to 70% or below within the next five years. While external debt is a concern, local currency debt presents a more immediate challenge, and Yoka is exploring options to renegotiate terms or refinance in an effort to reduce financial pressure.
The minister also highlighted the importance of diversifying the economy away from oil, focusing on sectors like agriculture and tourism to break the cycle of boom and bust driven by fluctuating oil prices. Additionally, Yoka plans to more than double the nation’s foreign exchange reserves, which have been strained by recent crises.
Despite the challenges, Yoka remains focused on stabilizing the economy, noting that excessive borrowing to cover current expenditures could lead to even greater financial strain. He also mentioned the possibility of another regional debt exchange but indicated it was too early to consider this option.