DRC to Overtake Ethiopia as Africa’s 5th Largest Economy

The Democratic Republic of Congo is on track to become sub-Saharan Africa’s fifth-largest economy in 2026, overtaking Ethiopia, according to a Bloomberg report. This marks a significant turning point in the continent’s economic landscape.

According to projections from the International Monetary Fund (IMF), the DRC’s economy is expected to reach $123 billion this year, slightly ahead of Ethiopia’s estimated $122 billion. This would place Congo behind only South Africa, Nigeria, Angola, and Kenya, firmly positioning Kinshasa among Africa’s top economic powers.

At the center of this momentum is Congo’s mining sector, a cornerstone of the global energy transition. As the world’s leading producer of cobalt and a major supplier of copper, the DRC is increasingly becoming indispensable to global supply chains, particularly in the battery and clean energy industries.

Rather than remaining a passive exporter, the country is now leveraging its mineral advantage to attract strategic partnerships. Investments from both Western and Asian players, including major US-backed initiatives and large-scale lithium projects led by international firms, are accelerating exploration and long-term value creation.

The country’s recent $1.25 billion Eurobond issuance, its first-ever entry into international capital markets, further reinforces this shift.

This move that reflects a renewed level of trust from global investors, positioning the DRC as a credible actor in international finance.

At the same time, the Congolese franc has shown notable resilience, appreciating by over 25% against the US dollar over the past year, a rare trend in a region often marked by currency volatility.

While the DRC benefits from strong commodity demand and currency stability, Ethiopia is navigating a more complex adjustment phase. The liberalization of its currency in 2024 led to significant depreciation, and ongoing external pressures, including energy supply disruptions, continue to weigh on its economic environment.

Despite Ethiopia’s strong growth projections, structural pressures have impacted its short-term positioning.

The IMF forecasts the DRC’s economy will grow by 5.9% in 2026, slightly below Ethiopia’s higher growth rate, but the broader picture tells a different story.