DRC:Financial Infrastructure and Markets

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The development objective of the Financial Infrastructure and Markets Project for Democratic Republic of Congo is to modernize payments infrastructure and increase availability of term financing to micro, small, and medium enterprises (MSMEs) in the recipient's territory. The project has three components. The first component, modernization of payments infrastructure for inclusive finance will focus on the operationalization of a new national payments system (NPS) providing real-time, fault-free electronic processing of financial transactions across the economy. It has following two sub-components: (i) physical infrastructure (automatic transfer service (ATS) and central securities depository (CSD), telecommunications network infrastructure, and national payments card retail switch); and (ii) technical assistance and capacity building. The second component, technical support to financial market development provides technical assistance to support: (a) the rapid growth of the microfinance industry with greater focus on inclusion; (b) MSME development, including along value chains in key growth sectors; (c) institutional capacity building for sustainable provision of medium-to-long term finance; and (d) public-private dialogue to support evidence-based reform advocacy, including research and analytic works, workshops, etc. in support of financial industry associations. It comprises of following three sub-components: (i) strengthening microfinance regulation and supervision by Central Bank of Congo (BCC); (ii) technical support to microfinance expansion and inclusion; and (iii) capacity building for sustainable medium and long term finance. The third component, line of credit for medium to long term finance will finalize its line of credit arrangements with the eligible intermediary financial institution after the first year of project implementation, by which time the requisite due diligence and other studies, such as described in component two, will have been completed, along with any other formal institutional pre-requisites.