Evolution of Trade in Financial and Insurance Services between the DRC and Belgium: Implications for the Congolese Banking and Insurance Sectors

André Nyembwe

SUMMARY

Over the 2017-2021 period, the Congolese-Belgian balance of financial and insurance services recorded a turbulent evolution of flows. From a rise in Congolese financial exports, the trend shifted to a decline, while imports dried up. This development reflects a decrease in banking activity between the two countries. As for insurance services, a deepening of the Congolese balance deficit in favour of Belgium can be observed with the onset of the Covid-19 crisis, along with a drop in the level of exports over the last two years of the period. We infer that the effect of the crisis redirected the confidence of economic agents towards Belgian insurance companies to the detriment of Congolese insurers, which makes these data likely to provide an indication of insurance premium leakage.

Keywords: Services balance, Insurance, Financial services, DRC, Belgium.
JEL codes: F36, G21, G22

ABSTRACT

Over the period 2017-2021, the Congolese-Belgian balance of financial and insurance services recorded a chaotic evolution of flows. From an increase in the first part of the period, Congolese financial exports declined during the second part while imports have dried up. This development reflects a decline in banking activities between the two countries. As for insurance services, the Congolese balance of payments deficit in favor of Belgium deepened with over the covid-19 crisis and the level of exports declined over the last two years of the period. This suggests that the impact of the crisis has redirected the confidence of economic agents toward Belgian insurance companies to the detriment of Congolese insurers, making these data likely to provide an indication of insurance premium evasion.

Keywords : Service balance, Insurance, Financial services, DRC, Belgium
JEL Codes : F36, G21, G22