Makosso’s Budget Letter Sets Ten 2026 Targets
The prime minister of Congo-Brazzaville, Anatole Collinet Makosso, has circulated a 25-page budget-framing letter that delineates ten headline objectives for fiscal year 2026, signalling continuity with President Denis Sassou Nguesso’s pledge to reconcile macroeconomic stability with inclusive growth.
Released to cabinet secretaries in mid-May, the memo also sketches a timetable for drafting, inter-ministerial arbitration and parliamentary submission, ensuring that the finance bill reaches the National Assembly before the constitutional deadline, an element welcomed by observers of fiscal governance in Central Africa.
Fiscal Space and Revenue Mobilisation Strategies
The letter’s first pillar seeks to expand budgetary space by trimming tax exemptions and compressing non-priority spending, echoing IMF recommendations that average waivers, currently estimated at 3.2 percent of GDP, be cut in half (IMF 2023).
Simultaneously, the government intends to lift non-oil revenues by digitalising customs, VAT and service-fee collection. According to the Ministry of Finance, the e-tax platform piloted in Brazzaville last year increased filings by 18 percent, offering a proof of concept for nationwide roll-out.
Natural Resource Governance and Capital Spending
Makosso’s third objective tightens oversight of mining, petroleum and forestry contracts. With global oil prices stabilising around 80 dollars a barrel, Congo hopes to capture additional royalties while advancing the Extractive Industries Transparency Initiative benchmarks embraced in 2022 (EITI progress report).
The framing note also mandates a 12 percent rise in capital expenditure focused on roads, power and digital connectivity—sectors flagged by the African Development Bank as growth multipliers in the CEMAC region (AfDB 2024). Sourcing credible contractors and supervising works will test administrative bandwidth.
Public Expenditure Efficiency Tools
A sixth target centres on programme-based budgeting, already trialled in the health ministry. By aligning appropriations with measurable outputs, officials aim to curb cost overruns that historically averaged 15 percent of voted credits, according to Supreme Audit Court findings tabled in March.
To reinforce transparency, the treasury will publish quarterly dashboards on investment project execution, a practice analysts say could reassure lenders after pandemic-related data gaps complicated 2021 eurobond negotiations with international investors.
Debt, Diversification and Risk Surveillance
The letter devotes an entire section to debt sustainability. Total public debt fell from 106 percent of GDP in 2020 to 84 percent last year, helped by oil receipts and bilateral rescheduling with Beijing-linked creditors (World Bank 2024). Authorities now target a 70 percent threshold by 2026.
Parallel diversification efforts prioritise agribusiness, tourism and special economic zones. The Pointe-Noire Digital Park, co-financed with Equatorial Guinea’s GITGE, is scheduled to open in 2025 and could, officials argue, anchor the non-oil sector’s contribution to GDP at 25 percent within three years.
Tax Policy Innovations and Digitalisation Drive
Tax policy innovations under consideration include a minimum income tax, tighter rules on gambling proceeds and a comprehensive land registry to boost property levies. Digital interfaces will automatically transfer taxpayer identifiers from civil registries, reducing loopholes exploited by informal operators.
The planned abolition of ad-hoc customs exemptions, often granted to importers of strategic equipment, may face lobbying resistance. Yet Finance Minister Rigobert Roger Andely recently told business leaders that uniformity will create a level playing field while safeguarding 150 billion CFA francs in foregone duties.
Stakeholder Reactions and Regional Context
Domestic think tank CERAPE applauds the revenue measures but warns that administrative capacity must keep pace. “Digital tools are transformative only if back-end servers are stable and staff trained,” notes senior economist Jean-Luc Ovaga, pointing to previous outages that slowed customs reform.
Regionally, Congo’s push aligns with CEMAC’s 3 percent-of-GDP deficit ceiling due in 2026, a rule designed to protect the BEAC currency peg. Compliance would also strengthen Brazzaville’s hand in future programme talks with multilateral lenders.
Balancing Prudence with Growth Ambitions
Balancing prudence and ambition remains delicate. The oil price outlook, weather patterns affecting agriculture and global monetary tightening could yet complicate revenue projections. Budget planners therefore include a risk matrix assessing each shock’s potential impact and pre-agreed corrective measures.
If the ten-point roadmap is executed, authorities project real growth could average 5.4 percent between 2024 and 2026, nearly double the preceding triennium. While hurdles persist, the framing letter underscores a determination to embed fiscal credibility and diversify opportunity for Congolese households and investors alike.
Social Spending Safeguards and Human Capital
The Prime Minister insists that fiscal consolidation will not erode social allocations. The health budget is slated to climb by 9 percent, with vaccine procurement ring-fenced after last year’s measles flare-up. Education spending will emphasise rural teacher incentives to combat a 27 percent dropout rate.
Labour unions cautiously welcome the commitments but request clearer timelines on salary arrears stemming from the 2016 oil downturn. Officials respond that broadening the tax base and improving cash management should secure regular payroll flows, a stance the IMF classified as ‘credible but yet untested’.
Civil-society monitors propose publishing beneficiary lists for school-feeding and cash transfer programmes, arguing that transparency counteracts leakages historically estimated at 15 percent of social outlays. The government says the forthcoming Integrated Financial Management Information System will allow such granular disclosure in real time.
