“This eurobond is a strategic gain in terms of financial management”
Appointed in January 2025, Christian Yoka, Minister of Finance, Budget, and Public Portfolio of the Republic of Congo, has just successfully led the country’s first international market outing in twenty years. Congo has raised $670 million in a context where many African states still struggle to access it. Driven by restored macroeconomic trajectory and affirmed budget discipline, he details for Financial Afrik the logic behind this strategic operation and the prospects for cleaning up Congolese debt.
Minister, it has been twenty years since Congo last entered the international financial market. What explains this timing and the amount sought in this operation?
Christian Yoka — Indeed, it has been twenty years. The last international operation dates back to a period when Congo, like other countries, benefited from debt relief initiatives — particularly under the HIPC initiative. At that time, a portion of the debt was converted under the London Club, allowing the country to enter the market.
Since then, the situation has evolved. For several years, the level of oil revenues and the economic situation did not justify accessing the market. Then, in 2014-2015, there was a sharp downturn in commodity prices, followed by a series of shocks: first the collapse of oil prices, then the Covid pandemic, and the geopolitical consequences of the conflict in Europe. These elements have limited the ability of many African countries to access international markets.
Today, the context is different. Since 2021, we have returned to positive growth, successfully completed a program with the IMF, and restored major macroeconomic balances. Exchange rate stability, budget discipline, and primary surpluses attest to the strength of our management.
In this context, the opportunity arose to carry out this operation, mainly aimed at refinancing domestic debt, as the structure of Congolese debt is predominantly domestic. External debt accounts for about 39% of the total.
The amount sought was calibrated based on the maturity schedule of our domestic debt, especially those maturing at the end of 2025 and beginning of 2026. It is about refinancing a portion of this debt under favorable maturity conditions.
The coupon rate is close to 10%. Isn’t this rate too high?
It must be viewed with clarity, but also in its context. Here, we are converting very short-term debt — three months — into a seven-year debt, with two years deferred. This completely changes the financial structure and allows for an extension of the portfolio maturity. It is a strategic gain in terms of financial management.
Furthermore, it should be compared with our domestic market: currently, internal rates for five years are around 12 to 13%. Therefore, a rate of around 10% remains competitive. Ultimately, this operation is rational: it secures the short and medium term, sends a positive signal to the market, and supports our cleanup trajectory.
The operation is not concessional debt; there are other avenues for that. In this case, we are entering the market, in a logic of transparency and trust, and we are receiving positive feedback from investors. This is an important signal.
Where does the level of Congolese debt stand today, external, regional, and domestic?
External debt accounts for about 39% of the portfolio. Regional and domestic debt make up the majority.
In 2020, the debt-to-GDP ratio was over 107%. Today, we have reduced it to 91%. We project 86% in 2026, and 70% in 2030. The trajectory is clearly downward.
Since January, we have reduced our emissions in the domestic market by over 20%. Our 2026 budget proposes significant control over our expenses, thus better managing our debt, which will further improve our debt-to-GDP ratio.
Additionally, we are recalibrating the GDP, in collaboration with our development partners, as some sectors — such as gas and telecoms — were inadequately integrated. This will mechanically improve the economic picture, but more importantly, it will better reflect the country’s productive reality.
And what about the oil debt? Glencore and Trafigura have been mentioned as traders claiming debts from Congo?
This debt has been largely settled. The oil sector remains significant: it generates primary surpluses which, along with the structural reforms we are implementing, allow us to continue our budget consolidation and reduce debt.
A final word for our readers?
We act with method, discipline, and transparency. This operation is not just financial; it symbolizes the normalization and regained credibility of the Congolese economy.
It improves our access to financing, cleans up our debt portfolio, strengthens liquidity in the domestic and regional markets. Congo is thus taking responsibility. I would like to remind you that President Sassou-Nguesso is the current president of CEMAC. The set course for regional macroeconomic stability is therefore unambiguous.
The market operation we have just completed is a sign of market confidence and an act of responsibility that we undertake with rigor and transparency. We are committed to regularly explaining what we do, as information is a vector of trust.
