KINSHASA - Democratic Republic of Congo is aiming for at least six percent growth in 2012, down from estimated seven percent growth in 2011, Finance Minister Matata Ponyo Mapon said on Thursday.
Volatility in global markets represent the biggest risk for growth for the country, Ponyo said at a press conference.
"The risk of a drop in economic activity following a degradation of the global perspective could be amplified by an internal risk of a political nature," he added.
President Joseph Kabila was declared winner of November 28 elections rivals said were rigged. Election observers said the polls were marred by fraud and poor organisation. Full results of parliamentary elections on the same day have been delayed.
"Our dream remains the realisation of double-digit economic growth," Ponyo said. "Everything is possible in the medium-term, which is why the government is already investing in improving the business climate."
Congo has some of the most coveted resources in the world, ranging from copper in its southern Katanga province to tin and coltan used in mobile phones and other hi-tech gadgets. Investors include China, with whom it signed a $6 billion deal to finance the construction of mines and public infrastructure.
Ponyo said the government aimed to bring annual inflation down to nine percent in 2012 from 15.4 percent last year, and to increase foreign reserves from $1.2 billion to $2.1 billion during 2012.
He also said the government was hopeful of unblocking the latest $90 million tranche of a $560 million loan facility from the IMF, delayed over a failure to publish mining contracts as part of an internationally backed transparency drive.
"We've discussed this question with (state mining company) Gecamines, and lately we've discussed it with the prime minister. I believe a solution is on the way," he said.
Gecamines last year refused to hand over contracts relating to joint ventures with international partners, despite ministers promising to publish the deals.
IMF country representative Samir Jahjah said the latest IMF loan, intended to boost the country's foreign reserves, could be delayed until May even if mining contracts are published.
"At this stage we need to have a new government to engage a discussion... We would still need to wait for a new prime minister that is coming from these elections... " Jahjah said.
The electoral commission delayed the results of legislative polls engulfed in allegations of fraud across the country. That has led to fears that the Supreme Court validation of the process - expected in March - could in turn be delayed.
Source: Reuters
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