A noble priority for Congolese economy : Gilbert Ondongo pleads for inclusive growth

Latest developments in Congo's economic situation have forced the country to reorient its efforts towards the mobilization of non-oil revenues. As an exporter of raw materials whose prices are falling today, Congo has a growth rate of around 3%. How do we get out of this suicidal dependence on oil? The Minister in charge of the economy, Gilbert Ondongo thinks of a wide range of solutions, notably improvement of the business climate, perfection of justice, industrialization of the country through agriculture, profound diversification of the economy etc. To do this, he intends to give the private sector all the place it deserves. Gilbert Ondongo supports his argument in this exclusive interview, during which he explores solutions proposed by the Head of State in his successive society projects. (9/11/2016)

Le Patriote: Mr. Minister of State, after more than three months already at the head of the ministerial department you are in charge of, if you were asked to do a mid-term review, what would you say?

Gilbert Ondongo: Thank you for giving me the opportunity to speak about the department I'm in charge of. You talk to me about a balance sheet but it seems a bit premature. If three or four months is mid-term, it does not allow to make a balance sheet that can be taken seriously. Simply because the economy, the industry, just like the promotion of the private sector, all need the time to yield expected fruits. It is not just a matter of a day or a few months.

That said, what could we do during these first months? We have worked to translate into a precise program the main orientations of the President of the Republic contained in his society project ''The March to Development''. We have made a detailed program in our department and since then we have been implementing it. We hope that in the coming months, the first results will be within the reach of the people.

L.P: You are Minister of the economy, how is Congolese economy facing the oil crisis that is raging so far?

G.O: The fact is that all economies of commodity exporting countries are in a difficult situation. Why? Because from the second half of 2014, commodity prices fell dramatically and this decline, which was thought to be momentary, has rather remained constant. We even had the feeling that with the passing of time, the situation was getting worse. Today the level of commodity prices remains very low. Our economies that rely primarily on the export of raw materials suffer a lot. As far as Congolese economy is concerned, we recorded, in comparison with the past years, a weak growth. It is around 3%. I would like to tell you, for example, that in 2010 we went close to 10%. Poor growth like what we have today has a negative impact on employment and on business in general. It's a hollow for the economy and we are on the decline.

L.P: You manage the private sector, what is the place of the private sector in Congolese economy?

G.O: Congolese economy places a lot of emphasis on the private sector and, from my point of view, the private sector has not yet occupied its full place. It can be understood by exploring the history of our country. In the past, with the political options we had, we focused on the State as the main player in the economy. You have realized that we changed that option long ago? From now on, we put forward the market economy with the private sector at the center. When we privilege the private sector, it is not overnight that it is structured to occupy the place reserved for it. The private sector is emerging as a central player in the production of goods and services, as well as in the creation of employment.

At the ministry responsible for, among others, promoting the private sector, we are working to ensure that the private sector really takes its place at the heart of Congolese economy.

L.P: And how is the business climate in Congo? Can any Congolese easily start a business?

G.O: I will be honest with you that according to the ranking of the international finance company (component of the World Bank), Congo is today poorly ranked in terms of business climate. The government is making efforts to improve Congo's ranking. With regard to the creation of companies, we have set up a one-stop shop for this purpose. It turns out that in practice the administration does not always apply the regulations that are defined by the government well enough. We will ensure that our administration properly applies the regulations issued by the government, so that it is easy to do business in Congo.

L.P: Do you think that will be easy, especially with the current policy of the Head of State based on the Break? How do you intend to make this break a reality in your department?

G.O: It should not be that the Break is a hackneyed concept, a slogan that resonates in the void. Today we notice that anyone who wants to do anything, speaks of Break. It is thus possible to trivialize a requirement that makes sense. The President called for a change of mentality, which is why he spoke of a Break. He noted that the mentalities of some of our compatriots were not favorable to development. When we talk of development we talk of mentalities prepared for that, that is to say, rigor at work, discipline, probity, the will to succeed and you name the rest. The President had noticed that a good part of our compatriots were not in these moods. He therefore called for Break in order to put an end to bad habits; that we stop with what he called anti-values and work seriously and efficiently, to succeed so that Congo emerges.

In our department, executives must set an example so that everyone adheres to changing attitudes and that it facilitates the development of our country.

L.P: It must be said that in most African countries, investors are usually faced with a situation where when they come to invest, they face serious problems like gender parity and, in this sense, and how will this concept of break be implemented?

G. O: In a country like ours or in other countries, that there are some officials who do not behave in an exemplary way, it's a fact. The responsibility of the government is to act, so that those who do not behave in an exemplary manner are punished and those who behave in an exemplary manner are encouraged. Today, some investors encounter behaviors that are not best suited to good business practice. It is the responsibility of the government to do everything to ensure that these bad behaviors are forever banned in our country. Will we get there in one day? No! As I told you about the economy, that needs time just like the industry needs time. We probably need a little time to eradicate the evil and share with all State agents a behavior that is conducive for development.

LP: In your speech at the entrepreneurship forum in Pointe-Noire, you talked about the United States, where there are millions of private companies, which justifies the fact that they are the largest economic power in the world, and Congolese can also have this desire to create businesses, it's true you have set up a one-stop shop for business creation. However, they are faced with the difficulty of receiving credit from banks. How do you intend to facilitate this state of affairs?

G.O: Admittedly, credit is necessary for the life of a business, but it is not the only thing indispensable. We prefer to talk about improving the business climate; we need to improve the business environment in general. We must ensure both access to credit, moderate the tax burden, perfect justice and better support companies. There is a whole environment that is necessary for the development of businesses. It must be improved constantly.

L. P: Speaking of the industrialization of Congo, Mr. Minister of State, when do we expect to see Congo's industrial policy?

G.O: It already exists. One of my predecessors had prepared and the Head of State had validated Congo's industrialization policy for the period 2012-2016. Today, we must update this policy and put in place actions adapted to the reality of the present times. In order not to be left to general considerations, the policy itself was essentially defined in the previous project of the President of the Republic ("The Way to the Future"). In this vision, it is a question of industrializing the country through agriculture, that is to say, the processing of agricultural production. It is also a question of industrializing the country by relying on the natural resources to be exploited or starting from the demand for everyday consumer goods to create industries that satisfy this demand. In short, we can usefully reread "The Way of Future", to be built on the strategic directions of industrialization of Congo. The Head of State had thus opened a series of avenues, among which there is the creation of Special Economic Zones (SEZs), a set of growth poles, around which would develop structuring industries. The outline of Congo's industrialization strategy is thus clearly defined and it is up to us to implement it taking into account the reality of the present times, including the financial constraints that we face today.

L.P: With regard to the financial constraints of the country today, do you think Congo will be emerging by 2030?

G.O: We will leave the possibility to the experts agree on the timeline. We are not commentators; we are actors, we have to act and leave you to comment. We are working to ensure that Congo emerges. Whether it emerges in 2025, 2030 or 2035, we do our part and give the best of ourselves so that as soon as possible Congo attains emergence and development.

L.P: Mr. Minister of State, Minister of Economy, Industrial Development and Private Sector Promotion, what are your priorities?

G.O: The title of the ministerial department is itself a set of priorities. In other words, we need to organize the economy by relying on, among other things, its industrialization and the promotion of the private sector. The ideal for a country like ours is to achieve an economic growth rate equal to or greater than 7%. Because experts around the world have estimated that to fight poverty effectively, a country must regularly, year after year, achieve a growth rate of at least 7%. Don’t think I will say numbers do not mean anything. I think there are numbers on one side, and on the other there is the reality. What is important for us is not so much to have a double-digit growth, but especially to organize inclusive growth, that is growth that benefits all Congolese. Growth that gives the economy the opportunity to create jobs. Growth that allows the State to organize social security that benefits all Congolese, regardless of the activity or category in which we operate. Growth that improves the living conditions of the population. What a noble priority!

L.P: On what do you intend to base your policy to make this a reality?

G.O: It cannot be over-emphasized that our economy needs deep diversification to prosper. Activities that contribute to the diversification of an economy are known. We still have to promote them, to encourage private companies to invest in them. The State will continue to invest in basic infrastructure, education, health, and peacekeeping. The State will ensure macroeconomic stability. If need be, it will stimulate production activities necessary for the diversification of the economy.

L.P: Can we say that entrepreneurship is one of your priorities?

G.O: I told you that if we have chosen the market economy, we must put the private sector at the heart of the economy. Entrepreneurship is the private sector. Putting the private sector at the heart of the economy is naturally our priority.

L. P.: Mr. Minister of State, to summarize, what can Congolese retain from your passage at the head of this great ministry?

G.O: I think you mean what can they expect from my presence in the ministry and not my passage, I'm still there. They must remember that the President of the Republic, Head of State, has given us a heavy mission and we have to assume the best. We have to work so that the economy prospers; we have to work for the industry to gain a foothold in this country; we have to work to ensure that the private sector really finds its place in this country and that the private sector, in agreement with us, works for the development of this country. We must work to ensure that the economy is well structured and viable; we must work to ensure that the industry develops in this country. When we would have done all of that we shall be certain we are moving towards development.

(Interviewed by Jules Débel)